Kawasaki Motors Manufacturing Corp. v. National Labor Relations Board

850 F.2d 524
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 22, 1988
DocketNos. 87-7122, 87-7177
StatusPublished
Cited by1 cases

This text of 850 F.2d 524 (Kawasaki Motors Manufacturing Corp. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kawasaki Motors Manufacturing Corp. v. National Labor Relations Board, 850 F.2d 524 (9th Cir. 1988).

Opinion

PREGERSON, Circuit Judge:

The National Labor Relations Board (NLRB) ordered Kawasaki Motors Manufacturing Corporation, U.S.A. (Kawasaki) to compensate Daniel Bennett (Bennett) for earnings lost because Kawasaki unlawfully fired Bennett. The NLRB’s order of November 17, 1986, as corrected by its order of February 3, 1987, specifies the amount of backpay Kawasaki owes Bennett. Kawasaki petitions this court to review and set aside the NLRB’s order of November 17, 1986, alleging that the backpay award is not supported by substantial evidence and that the NLRB violated its own rules and regulations in determining the amount of the award. The NLRB asks this court to enforce the NLRB’s order. We affirm the NLRB’s findings and enforce its November 17, 1986 order, as that order is corrected by the February 3, 1987 order.

I

BACKGROUND

On April 10, 1979, Kawasaki unlawfully fired Daniel Bennett in violation of section 8(a)(1), (3) of the National Labor Relations Act, 29 U.S.C. § 158(a)(1), (3) (1982). Before his termination, Daniel Bennett’s record of service to Kawasaki was described as “outstanding,” “commendable,” and “superior.” Kawasaki acknowledged the quality of Bennett’s work by giving him three raises during the year or so before it fired him.

Daniel Bennett was also a union supporter. When Bennett was fired, Kawasaki’s Lincoln, Nebraska facility was in the middle of an increasingly heated union campaign. An election was imminent. Bennett actively promoted the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW). He wore union T-shirts and buttons, talked to other employees about union representation, and served on the union’s organizing committee.

One day close to the election — after working eight hours from 5:00 p.m. to approximately 1:00 a.m. — Bennett sat down to take a break. He found a Reader’s [526]*526Digest and opened it to the section entitled “Laughter — The Best Medicine.” Bennett’s supervisor “caught” Bennett reading, and reprimanded him for resting on the job. Kawasaki fired Bennett the next afternoon on the ground that Bennett’s supervisor “could no longer trust him.”

The NLRB determined that Kawasaki’s reason for firing Bennett was pretextual. While the AU found that perusing Reader’s Digest on the job arguably could justify a “mild rebuke,” he did not see how it could shake Kawasaki’s confidence in Bennett. Termination seemed out of proportion to the transgression. The AU concluded that “Bennett was subjected to summary, harsh discipline because of a desire by [Kawasaki] to rid itself of [Bennett’s] union activism shortly before the election.” Kawasaki Motors Corporation, U.S.A., 257 N.L.R.B. 502, 516 (1981), enforced, 691 F.2d 507 (9th Cir.1982), cert. denied, 459 U.S. 1202, 103 S.Ct. 1186, 75 L.Ed.2d 433 (1983).

On August 3, 1981, the NLRB ordered Kawasaki to “make [Bennett] whole for lost earnings” resulting from his unlawful discharge. Id. at 520. We denied Kawasaki’s petition for review and enforced the NLRB’s order. Kawasaki Motors Corporation, U.S.A. v. NLRB, 691 F.2d 507 (9th Cir.1982), cert. denied, 459 U.S. 1202, 103 S.Ct. 1186, 75 L.Ed.2d 433 (1983).

The parties could not agree on the amount of backpay Kawasaki owed Bennett. Accordingly, the NLRB’s Regional Director issued a backpay specification1 and a notice of hearing for a backpay proceeding pursuant to 29 C.F.R. § 102.52 (1987). Kawasaki denied all pertinent allegations of the backpay specification and proposed its own backpay formula.

The initial backpay hearing was held on November 8-10, 1983. After the hearing, the General Counsel filed an amended backpay specification. The administrative law judge (AU) issued a supplemental decision on January 30, 1985. Kawasaki filed exceptions.

In January 1986, the NLRB remanded the case for the AU to take additional evidence on two issues: (1) the appropriate formula for computing overtime, and (2) whether Bennett would have received a promotion during the backpay period had he not been discriminatorily discharged for union activities, and, if so, the date of the promotion and the rate of pay he would have received.

Additional AU hearings were held in February and March 1986. The General Counsel moved to amend the backpay specification again to reflect its view that Bennett would have been promoted on August 1, 1979. The AU issued a second supplemental decision recommending that Bennett be awarded backpay from the date of his discharge to the date of Kawasaki’s reinstatement offer. The AU found Bennett would have been promoted on August 1, 1979. He also made findings regarding the proper method of calculating overtime backpay.

On November 17, 1986, the NLRB issued a Supplemental Decision and Order substantially affirming the rulings, findings, and conclusions of the AU and adopting the AU’s recommended order with minor modifications. On February 3, 1987, the NLRB clarified its order, indicating that interest would be added to net backpay and that Bennett remains entitled to a promotion. The NLRB stated that the amount of backpay will remain open until Bennett [527]*527is actually offered the promotion to which he is entitled.

II

DISCUSSION

Kawasaki makes five specific complaints, which we will address in turn. It contends that the NLRB’s backpay award should be reduced because: (1) Bennett’s search for work was not adequately diligent during a twenty-one week period of unemployment; (2)Bennett incurred a willful loss of earnings by voluntarily terminating interim employment; (3) Bennett concealed interim earnings from the NLRB; (4) the NLRB violated its own rules and regulations by belatedly considering the issue of whether Bennett would have been promoted had Kawasaki not unlawfully terminated him; and (5) Bennett would not have been promoted on August 1, 1979, as the NLRB concluded.

Before addressing Kawasaki’s contentions, we note that the NLRB’s backpay orders are subject to only limited judicial review. The NLRB has broad discretionary authority to award backpay to remedy unfair labor practices. NLRB v. J. H. Rutter-Rex Mfg. Co., 396 U.S. 258, 262-63, 90 S.Ct. 417, 419-20, 24 L.Ed.2d 405 (1969). We give considerable deference to the NLRB’s exercise of its discretion. Sure-Tan, Inc. v. NLRB, 467 U.S. 883, 898-99, 104 S.Ct. 2803, 2812, 81 L.Ed.2d 732 (1984); Alfred M. Lewis, Inc. v. NLRB, 681 F.2d 1154, 1156 (9th Cir.1982). Findings of fact in a backpay proceeding will be upheld as long as they are supported by substantial evidence, considering the record as a whole.

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