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Kawasaki Motors Manufacturing Corporation, U.S.A., Cross v. National Labor Relations Board, International Union, United Automobile, Aerospace and Agriculture Implement Workers of America (Uaw), Respondent-Intervenor

Citations: 850 F.2d 524; 128 L.R.R.M. (BNA) 2913; 1988 U.S. App. LEXIS 8546Docket: 87-7122

Court: Court of Appeals for the Ninth Circuit; June 22, 1988; Federal Appellate Court

Narrative Opinion Summary

This case involves a legal dispute between Kawasaki Motors Manufacturing Corporation and an employee who was unlawfully terminated for union activities, violating Section 8(a)(1) of the National Labor Relations Act. The National Labor Relations Board (NLRB) found the termination to be a pretext for anti-union sentiment and ordered Kawasaki to compensate the employee for lost earnings. Kawasaki's petition for review of the NLRB's backpay award was denied, with the court affirming the NLRB's findings. The proceedings involved complex backpay calculations, including disputes over the employee's job search diligence, voluntary termination of interim employment, and potential promotion. The NLRB's decision included a determination that the employee was entitled to a promotion he likely would have received absent the unlawful termination. Throughout the proceedings, the NLRB's factual findings were upheld based on substantial evidence, and procedural objections raised by Kawasaki were dismissed. Ultimately, the court enforced the NLRB's order, denying Kawasaki's petition for review and granting enforcement of the backpay award with interest. This case highlights the deference courts give to the NLRB's discretion in labor disputes and the standards for evaluating employee diligence and employer liability in backpay proceedings.

Legal Issues Addressed

Burden of Proof in Backpay Proceedings

Application: After demonstrating the gross amount of backpay owed, the burden shifts to the employer to justify any reductions.

Reasoning: In backpay proceedings, the General Counsel must initially demonstrate the gross amount of backpay owed to a claimant, after which the employer bears the burden of proof to justify any reduction of that amount.

Concealment of Interim Earnings and Backpay Denial

Application: Backpay can be denied for willfully concealing earnings, but inadvertent failures to report are permissible.

Reasoning: The NLRB precedent indicates backpay can be denied for willfully concealing earnings but allows for inadvertent failures to report.

Diligence in Job Search After Wrongful Termination

Application: Bennett's job search was deemed diligent even though he applied to a limited number of employers.

Reasoning: The overall record showed Bennett applied to at least fifty employers, attended all interviews set up by employment agencies, and was employed for most of the backpay period.

NLRB's Authority in Backpay Awards

Application: The NLRB's backpay awards are subject to limited judicial review, and courts generally defer to the NLRB's discretion, upholding factual findings supported by substantial evidence.

Reasoning: The NLRB's backpay awards are subject to limited judicial review, and courts generally defer to the NLRB's discretion, upholding factual findings supported by substantial evidence.

Procedural Timeliness in Backpay Proceedings

Application: The NLRB can permit amendments to backpay specifications, even if introduced later in the proceedings.

Reasoning: Despite acknowledging that the promotion issue should have been introduced sooner, the NLRB found no prejudice against Kawasaki from the delay.

Promotion Consideration in Backpay Calculations

Application: The NLRB included potential promotion in backpay calculations, concluding Bennett would likely have been promoted.

Reasoning: The NLRB concluded that a promotion was likely and determined that Bennett's backpay should reflect the higher rate associated with that promotion.

Reasonable Effort Standard in Job Search

Application: An employee is required to make a reasonable effort to find employment, not the highest standard of diligence.

Reasoning: The law requires only a reasonable effort, not the highest standard of diligence, and success or failure in securing interim employment is not indicative of the sufficiency of the search.

Unlawful Termination Under the National Labor Relations Act

Application: Kawasaki Motors Manufacturing Corporation unlawfully terminated an employee due to his union support, violating Section 8(a)(1) of the Act.

Reasoning: Kawasaki Motors Manufacturing Corporation unlawfully terminated Daniel Bennett on April 10, 1979, violating Section 8(a)(1) of the National Labor Relations Act due to his union support during a critical election period.

Voluntary Termination and Backpay Reduction

Application: An employee's voluntary departure due to onerous working conditions does not necessarily reduce backpay.

Reasoning: The ALJ concluded that Bennett left due to onerous working conditions, which were beyond his control.