Court denies plea to rehire 36 hotel workers

U.S. District Court Judge Alex R. Munson has denied the National Labor Relations Board’s request for an injunction to force Dai-Ichi Hotel to rehire 36 former nonresident workers who are supporting the creation of a union.

NLRB sued Dai-Ichi seeking the reinstatement of the employees whom NLRB claimed were terminated because of their support for Local 5 of the Hotel Employees and Restaurant Employees Union.

In his decision, Judge Munson ruled that the NLRB failed to demonstrate a “fair chance for success on the merits of its claim that (the hotel) discriminatorily failed to renew the contracts of alleged union participants,” because it had not shown “anti-union animus as a motivating or substantial factor in (the hotel’s conduct).”

Judge Munson’s ruling comes on the heels of the decision by an NLRB Administrative Law Judge that the nonrenewals were the result of economic conditions or local residents applying for the positions.

Even if the NLRB has proven that, Judge Munson found Dai-Ichi’s evidence that the nonrenewals were required by local law or the downturn in the economy “sufficiently rebuts (the NLRB’s) claims by showing that the nonrenewals would have occurred even in the absence of union activity.”

Judge Munson also rejected the NLRB’s arguments that irreparable injury would result unless the nonresidents were returned to work, noting that NLRB’s “substantial delay in bringing its request for injunctive relief.” However, he ordered the reinstatement of a local resident who had been discharged.

“We are extremely pleased with the court’s ruling,” said Douglas W. Hall, one of the hotel’s attorneys. “We have been saying all along that the Dai-Ichi did not target union supporters for discriminatory treatment, and that the only reason that nonresidents did not have their contracts renewed was either because of the economy or the requirements of CNMI law. It is gratifying that both Judge Munson and the Administrative Law Judge agree with us.”

Mr. Hall added that the court’s decision supports the contention that the NLRB’s suit was a desperate effort to save its weak case against the Dai-Ichi.

This is the second time that Judge Munson has rejected the NLRB injunction requests against Saipan hotels. Three years ago, Judge Munson denied an NLRB petition against the Hyatt Saipan.

The Dai-Ichi hotel is also optimistic that it will prevail on its challenge to the NLRB’s decision to overturn the results of the first election among its employees, in which the union lost by a substantial margin. Oral argument on the Dai-Ichi’s appeal is scheduled for mid-February 2000 in Washington D.C.