The U.S. Ninth Circuit Court of Appeals unanimously affirmed Thursday the National Labor Relations Board's ruling that Pacific Beach Hotel repeatedly violated employees' legal rights beginning in 2005, and that the hotel deliberately and illegally sabotaged negotiations to avoid settling a contract with the workers' union, according to ILWU Local 142.
Click here for the full ruling.
Three federal judges agreed that Pacific Beach Hotel and parent company HTH Corp. have engaged in bad-faith bargaining and other unlawful behavior which caused years of delay in settling a contract with the workers' union.
The Ninth Circuit Court’s latest ruling finds that "...HTH's continued defiance of the labor laws is the reason the parties, after years of delay, still have not struck a collective-bargaining agreement…" and that "HTH adopted a calculated bargaining posture that ensured all bargaining would be futile."
The court described Pacific Beach's behavior, which occurred under HTH owner Corine Watanabe’s leadership, as "…unusually aggravated misconduct.
The ruling also affirmed U.S. District Court Judge J. Michael Seabright's second injunction against the hotel.
"While Pacific Beach workers have tried in good faith since 2005 to gain a contract settlement, the Hotel has just been breaking the law," said ILWU spokesperson Dave Mori, "But despite the Hotel’s bad behavior, we're still ready and willing to settle a contract that’s fair to both sides."
This latest legal setback for Pacific Beach Hotel arrives on the heels of a potentially devastating market setback. Just months ago, Japan’s main association of travel agencies, JATA, warned the hotel that the association and its member agencies "find it undesirable to maintain business relations" with known law-breakers.
Japanese visitors serviced by JATA-member travel agencies comprise the bulk of Pacific Beach's business.