L'Eggs Products, Incorporated v. National Labor Relations Board

619 F.2d 1337, 104 L.R.R.M. (BNA) 2674, 1980 U.S. App. LEXIS 17103
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 30, 1980
Docket78-2387
StatusPublished
Cited by54 cases

This text of 619 F.2d 1337 (L'Eggs Products, Incorporated 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
L'Eggs Products, Incorporated v. National Labor Relations Board, 619 F.2d 1337, 104 L.R.R.M. (BNA) 2674, 1980 U.S. App. LEXIS 17103 (9th Cir. 1980).

Opinion

DUNIWAY, Circuit Judge:

L’Eggs Products, Incorporated petitions for review of an order of the National Labor Relations Board, and the Board cross-petitions for enforcement of its order. The Board adopted the findings, conclusions and proposed order of its Administrative Law Judge. The decision is reported at 236 N.L. R.B. 354 (1978). We set aside the order in part, affirm it in part, and remand to the Board for further proceedings. We also deny, but refer to the Board on remand, L’Eggs’ motion for leave to adduce additional evidence before this court.

I. Background Facts.

L’Eggs is a manufacturer and distributor of women’s hosiery. Its products are distinctively packaged and are displayed in such stores as supermarkets and superdrug-stores in unique racks which it calls “boutiques.” The packaging, the racks, and advertising sell the product. The business of monitoring and replacing stock in the racks and keeping them neat and clean, so that they will attract customers, is conducted by route sales representatives (RSRs) employed by L’Eggs. They are provided with vans and uniforms, and work under the supervision of Area Managers.

The case concerns L’Eggs’ sales district covering southern California and part of Nevada, with headquarters in Buena Park, California. At the time in question, there were 40 RSRs in the district, and on January 19, 1976, Retail Clerks Union Local 770 sent to L’Eggs’ Western regional manager, Schwaegler, by certified mail, a letter signed by 13 of these RSRs stating that they were “actively engaged in an organizing program to obtain a union contract.” The letter concluded “We would caution you to refrain from any interference or restraint of your employees’ right to self-organization.” It was received by Schwae-gler on January 21.

The reaction of' L’Eggs was immediate and effective, and resulted in charges filed with the Board that gave rise to this proceeding. The Company’s position was stated by its Senior Vice President, Sales and Distribution, Engle, the self-described creator of the business, at a dinner meeting of all the RSRs in the district on February 5, 1976: “It is . our intention to oppose this Union and by every lawful and proper means to prevent it from coming into this operation.” One question presented is whether the Company went beyond this expressed intention and committed unfair labór practices.

We will state additional facts as we consider each of L’Eggs’ principal arguments.

II. The Discharges.

Five employees were discharged, one, RSR LuAnn Morgan, on November 20, *1341 1975, one, RSR Jackie Wade Smith, on January 26, 1976, and three others, not RSRs, on January 27, 1976. As to one of the three, the general counsel dropped the charge; as to the other two, the AL Judge found the discharges lawful. The Board has accepted the AL Judge’s decision as to these three employees. It also accepted the decision that L’Eggs discharged Morgan and Smith because of their union activities.

A. The Standard for Decision.

We cannot overturn the Board’s decision if it is supported by substantial evidence on the record considered as a whole. 29 U.S.C. § 160(e); Universal Camera Corp. v. NLRB, 1951, 340 U.S. 474, 487-488, 71 S.Ct. 456, 463 — 464, 95 L.Ed. 456. Nor can we reject the Board’s choice between fairly conflicting views even though we would have made a different choice had the matter been before us originally. Id. See, also, NLRB v. Walton Mfg. Co., 1962, 369 U.S. 404, 405, 82 S.Ct. 853, 854, 7 L.Ed.2d 829.

Section 8(a)(3) of the National Labor Relations Act, 29 U.S.C. § 158(a)(3), makes it an unfair labor practice for an employer “by discrimination in regard to . tenure of employment to discourage membership in any labor organization.” Firing an employee for supporting a union violates this provision.

An employer may discharge an employee for good cause, bad cause, or no cause at all, without violating § 8(a)(3), as long as his motivation is not antiunion discrimination and the discharge does not punish activities protected by the Act, NLRB v. Ayer Lar Sanitarium, 9 Cir., 1970, 436 F.2d 45, 49. It follows that the Board has the burden of proving that a discharge was motivated by antiunion animus. NLRB v. Klaue, 9 Cir., 1975, 523 F.2d 410, 413. A business reason for a discharge cannot be used as a pretext. Ayer Lar Sanitarium, supra, 436 F.2d at 50. A discharge for which the employer has a justifiable ground violates § 8(a)(3) if it is in fact motivated by antiunion sentiment. NLRB v. Western Clinical Laboratory, Inc., 9 Cir., 1978, 571 F.2d 457, 459. Proof that the employer knew about the employee’s union activities is a prerequisite to a finding that a discharge violates § 8(a)(3). Brooks v. NLRB, 9 Cir., 1976, 538 F.2d 260, 261; NLRB v. Klaue, supra, 523 F.2d at 413.

In this circuit, the test for determining whether a discharge violates § 8(a)(3) has changed over the last several years. In NLRB v. Ayer Lar Sanitarium, supra, 436 F.2d at 50, we said that the “test is whether the business reason or the . . . union activity is the moving cause behind the discharge. ... In other words, would this employee have been discharged but for his or her union activity?” (emphasis in original). In NLRB v. Central Press of California, 9 Cir., 1975, 527 F.2d 1156, 1158, we upheld the Board’s finding of a violation because it found that a discharge was at least partially motivated by the union sympathy of the employee, (citing sitnilar language in NLRB v. Ayer Lar Sanitarium, supra.) In Western Exterminator Co. v. NLRB, 9 Cir., 1977, 565 F.2d 1114, 1118, however, we said that where a discharge is motivated by both a legitimate business consideration and protected union activity, the test is which “is the moving cause behind the discharge” (emphasis added). We also said, “[w]here a party has two motives, one permissible and the other impermissible, the better rule is . that the improper motive must be shown to have been the dominant one.” (emphasis added) Accord: Hambre Hombre Enterprises, Inc. v. NLRB, 9 Cir., 1978, 581 F.2d 204, 207 n.4; Stephenson v. NLRB, 9 Cir., 1980, 614 F.2d 1210, 1213; NLRB v. BigHorn Beverage, 9 Cir., 1980, 614 F.2d 1238, 1242; NLRB v. Best Products, Inc., 9 Cir., 1980, 618 F.2d 70, (1980); Stephens Institute v. NLRB, 620 F.2d 720 (9 Cir. 1980).

There is one recent decision that appears to adopt a less stringent test in discharge cases, NLRB v. Lantz,

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Bluebook (online)
619 F.2d 1337, 104 L.R.R.M. (BNA) 2674, 1980 U.S. App. LEXIS 17103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leggs-products-incorporated-v-national-labor-relations-board-ca9-1980.