Daniel International Corp.Download PDFNational Labor Relations Board - Board DecisionsSep 30, 1985276 N.L.R.B. 1093 (N.L.R.B. 1985) Copy Citation DANIEL CONSTRUCTION CO. 1093 - Daniel Construction Company , a Division of Daniel - International Corporation and North Carolina State Building & Construction Trades Council, AFL-CIO. Cases 11-CA-9019, 11-CA-9105, -1l-'CA-9246, 11-CA-9288, 11-CA-9343, 11- CA-9364, and 11-CA-9365 30 September 1985 SUPPLEMENTAL DECISION AND ORDER By CHAIRMAN DOTSON AND MEMBERS DENNIS AND JOHANSEN On 29 March 1985 Administrative Law Judge J. Pargen Robertson issued the attached supplemental decision setting forth the backpay he found due pursuant to a 1982 Decision and Order in this pro- ceeding.' The General Counsel filed exceptions and a supporting brief. The Respondent filed an an- swering brief, cross-exceptions, and a brief in sup- port of its cross-exceptions. The National Labor Relations Board has delegat- ed its authority in this proceeding to a three- member panel. The Board has considered the decision and the record in light of the exceptions and briefs and has decided to affirm the' judge's rulings , findings,2 and conclusions3 as 'modified, but not to adopt the rec- ommended Order. 1 264 NLRB 569 (1982), enfd 731 F 2d 191 (4:h Cir 1984) 2 The General Counsel and the Respondent have excepted to some of the judge's credibility findings The Board's established policy is not to overrule an administrative law judge's credibility resolutions unless the clear preponderance of all the relevant evidence convinces us that they are incorrect Standard Dy'Wall Products, 91 NLRB 544 (1950), enfd 188 F 2d 362 (3d Cir 1951) We have carefully examined the record and find no basis for reversing the findings In sec . I, par . 3, of his decision ,' the judge erroneously referred to 17 or 18 April 1984, rather than - 1980 In sec II,B, par 6, the judge erroneous- ly referred to 5 April 1981, rather than 1982 In sec II,C,4,(b), (par 2, the judge incorrectly stated employee Wood's job-search notes show 10 contacts to 6 employers during 1981 They in fact show 11 contacts We correct these inadvertent errors Neither the General Counsel nor the Respondent excepted to the judge's findings that employee McDowell did not suffer a willful loss of earnings, that employee Wood was not entitled to be reimbursed for.cer- tain expenses , nor to the judge's table of applicable interest rates 3 We agree with the judge's conclusion that the Respondent's responsi- bility to offer to reinstate the employees it unlawfully discharged, and to make them whole for their losses, does not terminate in the event the em- ployees obtain substantially equivalent employment elsewhere See Phelps Dodge Corp Y NLRB, 313 U S 177, 193-194 (1941) We also agree that neither Perma Vinyl Corp, 164 NLRB 968 (1967), enfd sub nom U.S Pipe & Foundry Co. v NLRB, 398 F 2d 544 (5th Cir. 1968), nor American Auto-Felt Corp, 158 NLRB 1628 (1966), requires a different result . In each of those cases , the respondent employer sold its operation , and the Board stated that its backpay liability should terminate in the event the discrimmatees obtained substantially equivalent employ- ment elsewhere . In Perma Vinyl, the respondent was no longer an em- ployer and therefore could not terminate its backpay liability by offenng reinstatement While the employer in American Auto-Felt continued to maintain an additional plant, the Board stressed that its employees had no employment expectancy at the remaining plant , nor was there any evi- dence that the employer ever transferred employees from plant to plant. 158 NLRB at 1641 The Respondent provides maintenance and con- struction services to manufacturers including sever- al in the Wilmington, North Carolina area. In 1980 the Respondent discharged a number of employees from its Du Pont Company and Hercofina Compa- ny sites. In its 1982 Decision and Order, the Board found, inter alia , that certain of the discharges vio- - lated Section 8(a)(3) and (1) of the Act, and it or- dered the Respondent to offer to reinstate the dis- charged employees and to make them whole for their lost backpay and benefits.4 On 6 March 1981 the Respondent's contract with the Hercofina -Company terminated and Mundy In- dustrial Maintenance, Incorporated. took over as Hercofina' s maintenance and construction contrac- tor. After interviewing 400 to 500 applicants, Mundy hired 121 of the Respondent's 133 employ- ees assigned to the Hercofina plant. The Respond- ent employed all but one of its remaining Herco- fina-site employees at other- sites. The judge found the "probabilities . . . over- whelming"- that either Mundy or the, Respondent would have employed the Respondent's unlawfully discharged Hercofina-site employees after 6 March 1981. The judge thus concluded the Respondent was liable for their backpay after 6 March, not- withstanding that it lost its Hercofina contract.5 He - determined - their backpay based on what they would have earned had they -been employed by Mundy at the Hercofina site . We agree. '1. We disagree, however, with the judge's con- clusion that - discriminatee Jerry Carter's gross backpay should not include projected overtime cal- culated by determining the average overtime worked by Mundy employees in Carter's classifica- tion. After he was discharged, Carter began working for the Wood Tee Company and remained em- ployed there through the time , of the hearing. Carter's total interim earnings exceeded the gross backpay the General Counsel projected he would Although the Respondent here terminated its operation at Hercofina Company when it lost its maintenance and construction contract , it main- tained other operations in the area Also, the Respondent demonstrated it could transfer its employees to other operations when it hired at other sites all but one of its Hercofina-site employees not hired by Hercofina's replacement contractor We thus find that the Respondent is able to rein- state the employees it unlawfully discharged and that it would effectuate the policies of the Act for it to do so Its backpay liability therefore , con- tinues without regard to whether the employees have found, or do find, substantially equivalent employment elsewhere In light of our. conclusion, we find it unnecessary to pass on the judge's discussion of whether the employees ' interim employment was substan- tially equivalent to that from which they were discharged 4 264 NLRB at 571 , 616-617 5 See American Auto-Felt Corp, 158 NLRB at 1632, Hoke Janitorial Service, 213 NLRB 783, 786 (1974), Haberman Construction Co, 236 NLRB 79 (1978), enf denied in part on other grounds 641 F 2d 351 (5th Cir 1981) (en banc) - 276 NLRB No. 115 1094 - DECISIONS OF -NATIONAL LABOR RELATIONS BOARD have earned with Mundy. Carter earned more only because he worked far more overtime than the av- erage Mundy employee;s. his hourly pay at Wood Tee was less than that paid-at-Mundy. - The judge found the General Counsel's overtime projection uncertain, stating: "It appears. no more logical to apply to Carter what the most ambitious Mundy employee worked as overtime than to apply to him what the average Mundy- employee worked as overtime."--He thus excluded Carter's projected overtime earnings from his projected gross backpay., He also excluded his actual over- time from his interim earnings. By then subtracting Carter's interim earnings , adjusted to- 40-hour weeks, from his projected gross backpay, also ad- justed to 40-hour weeks, the judge determined his net backpay. He thus reduced the General. Coun- sel's claim for Carter from $15,181 to $9,775. Mundy's' payroll records for the backpay period show, however;' that -virtually -every Mundy em- ployee in Carter's classification -worked- overtime during the backpay period. Denying Carter the dif- ference between his hourly pay at Wood Tee 'and Mundy's hourly pay, for the overtime hours he would have worked at Mundy, thus fails to restore Carter to "the situation, as nearly as possible, to that which would have obtained but for the illegal discrimination. 117 Southeastern Envelope Co.,8 relied. on by the judge, does not provide support for re- lieving the judge of the duty to approximate what Carter would have earned. While in that case the Board excluded overtime from a discriminatee's actual interim earnings, it did so because the Gen- eral. Counsel did not seek backpay for any project- ed overtime hours.9 Where, as here, the General Counsel seeks- backpay for projected overtime hours, and proves that the discriminatee would have worked overtime but - for the unlawful dis- crimination, the judge must approximate the hours the discriminatee would have worked. Unlike the judge,- we find- that averaging the Mundy employees' hours, while not exact, is a fair and reasonable 'method for approximating what 6'The following chart shows the weekly overtime worked by the aver- age Mundy'employee and that worked by Carter at Wood Tee - Average Overtime per Week* Mundy Employees - Carter 1981•• 2 23 15 88 1982 2 33 10 62 1983 28 16 15 ° Based on a 40-hour week °f Commencing 7 March 7 Phelps Dodge Corp v NLRB, 313 U S at -194 8 246 NLRB 423 (1979) 9 Id at 424 Carter would have earned. t 0 We shall therefore issue a new Order in which the Respondent will be required to pay Carter an amount reflecting what he would have earned had he been employed by Mundy and worked the same number of overtime hours as the average Mundy employee in his classi- fication. - 2. We agree with the judge that-Sammy Wood incurred a willful loss of earnings after the first quarter of 1982. We emphasize, however, that, al- though Wood was employed during this period,-he was not so fully employed that he was precluded from seeking a more suitable job. Wood lowered his sights. in February, 1981 by accepting work with his family' s business at an hourly rate less than the $10.35 per.hour paid to comparable Mundy employees in March. When- Wood began working for his family he worked only 8 to 16 hours each week. Although precise figures are not available, we - estimate that Wood worked less than .30 hours per week during the fourth- quarter of 1982 and the first quarter of 1983.11 Under these circumstances, we agree. Wood had a duty to continue seeking more suitable work.12 Because he failed to do so after the first- quarter of 1982, the Respondent's liability for backpay termi- nated. - ORDER The National Labor Relations Board orders that - the Respondent; Daniel Construction Company, a Division of Daniel International Corporation, Wil- mington, North Carolina, its officers , agents, suc- cessors, and assigns , shall pay to the. employees' - listed below the net backpay amounts set forth next to their names. The Respondent shall also ,pay in- terest on the employees' net backpay as set forth in 10 See Rice Lake Creamery Co, 151 NLRB 1113, 1118-19 (1965), enfd in pertinent part 365 F 2d 888 (D C Cir 1966), see also NLRB v Brown & Root, 311 F 2d 447, 452-453 (8th Cir 1963). 11 Wood was ill and unavailable for work dunng the second and third quarters of 1982 and the General Counsel did not seek reimbursement for this period During the fourth quarter of 1982 and the first quarter of 1983, however , Wood earned $1298 and $1114 , respectively Based on the Federal minimum wage of $3 35, 29 U S C § 206(a)(1) (1982); Wood could have averaged , at most, 29 8 hours and 25 5 hours per week, re- spectively 12 See NLRB Y Madison Courier, 505 F.2d 391, 405 (D C Cir. 1974); cf. Laredo Packing Co, 264 NLRB 245, 250 (1982) (unreasonable for em- ployee Rodriguez to quit lower paying 30-hour-per -week job,'he had suf- ficient time to seek more suitable work during off-duty hours), enfd 730 F 2d 405 (5th Cir 1984); contrast Big Three Industrial Gas Co, 263 NLRB 1189, 1211 (1982) (judge assumed discriminatee employed "virtu- ally" full time "was engaged in a good -faith effort to mitigate Respond- ent's liability, but was unable to find better paying work "), overruled,on other grounds American Navigation Co.,_268 NLRB 426 (1983) In agreeing with his colleagues that Wood had a duty to continue to seek more suitable work , Chairman Dotson does not rely on the cases referred to above DANIEL CONSTRUCTION CO footnote 17 of the judge's decision, 13 and shall deduct-any tax withholdings required by law. Jerry Carter " $15,181 Donald Rouse . 1,473 Larry McDowell 24,406 Sammy Wood -17,547 13 See generally Isis Plumbing Co, 138 NLRB 716 (1962), enf denied .on other grounds 322 F 2d 913 (9th Cir 1963) Paris Favors, Jr., Esq., counsel for the General ' Counsel. Melvin Hutson and Leon Harmon, Esq., for the Respond- ent. - SUPPLEMENTAL DECISION J. PARGEN ROBERTSON , Administrative Law Judge. This matter involves issues of backpay and reinstatement which were joined by the General Counsel 's August 31, 1984-backpay specifications and the answer filed by Re- spondent .I Those pleadings resulted from a controversy regarding the implementation of the remedy directed in the Board's Order reported at 264 NLRB 569 (1982), enfd . 731 F 2d 191 (4th Cir. 1984). i Following the hearing, the General Counsel filed a motion to further amend backpay specifications on December 31, 1984 On January 11, 1985, Respondent filed a response to the General Counsel's motion On January 24, 1985, the General Counsel responded to Respondent's re- sponse and, on February 4, 1985, Respondent protested receipt of the General Counsel's response Due to Respondent's objections to the Gen- eral Counsel's motion to further amend that (1) the General Counsel failed to include in her attachments to that motion "the summary work- sheets showing weekly regular and overtime hours for each representa- tive Mundy employee," (2) Jerry Carter "was not produced as a witness at the backpay heanng," and (3) the General Counsel was attempting to include backpay figures for 1984 even though Respondent has not had an "opportunity for cross-examination" regarding those figures, I issued a March 4, 1985 Order to Show Cause, wherein I granted the General Counsel's motion to further amend and directed the parties to show cause why I should not reopen the hearing and direct production of the "sum- mary worksheets" and afford "certain cross-examination privileges " In the parties' responses to the aforementioned Order to Show Cause the General Counsel stated she had no objection to a limited purpose re- opening of the record but Respondent opposed reopening the record In her response the General Counsel alleged that Respondent had the "sum- mary worksheets" in its possession "since on or about January 25, 1985 " I. agree with Respondent's position that the hearing should nbt be re- opened I now order that the hearing be closed I also agree with Re- spondent that the backpay figures for 1984. should be disregarded due, in part, to the fact that Respondent has hot had cross-examination privi- leges - - " However, concerning the "summary worksheets," I will not direct their receipt into evidence in view of the entire record At the hearing I ordered the parties to review Mundy records in an effort to more pre- cisely compute gross backpay figures for 1981 and to submit to the record a summary of these records with the proviso that the source records could be submitted in the event of disagreement over the submit- ted summary Respondent has not elected to introduce those source doc- uments despite its asserted disagreement Moreover, Respondent has not disputed the General Counsel's claim that it has had the "summary work- sheets" in its possession since about January 25, 1985. Under these circumstances I will not delay these proceedings further in view of the record which shows that all parties have had a full opportu-' nity to develop this particular issue Additionally, I will draw no adverse inference from the failure of the General Counsel to call'discnminatee Jerry Carter during the heanng As shown below Respondent did not demonstrate a desire to examine Carter. - 1095 As shown in the underlying decision, Respondent is a construction company. During material times Respond- ent was party to several maintenance and construction contracts with various companies in North and South Carolina, as well as in other States. The issues raised in- volve two such contracts near Wilmington, North Caro- lina, at the Du Pont and Herconfina sites. At the hearing I approved a partial settlement which was subsequently consummated by Respondent paying backpay to five discriminatees formerly employed at the Herconfina site and six discriminatees formerly employed at the Du Pont site.2 I have been advised by Respondent that those payments, including net backpay and interest, totaled $271,390. Two issues remained and were litigated in Wilming- ton, North Carolina, on October 23 and 24, 1984: (1) Respondent contends that discriminatee Heber Norris accepted its offer, of reinstatement and agreed to return to work on April 21, 1980. Although Norris, on his own accord, did not report to work on April 21, 1980, Respondent contends that its post-April 21 backpay and reinstatement obligations were fully satisfied by its offer to reinstate Norris.3 (2) On March 6, 1981, Respondent's contract at the Herconfina site terminated. Beginning on March 7, 1981, another construction and maintenance contractor, Mundy Industrial Maintenance, Incorporated, replaced Respondent as the Herconfina contractor. Respondent contends that its backpay and reinstate- ment obligations ' to those discriminatees formerly em- ployed by it at the Herconfina site ceased when it lost the Herconfina contract on March 6, 1981.4 Therefore, -the issues remaining here include the ques- tions of whether Respondent's backpay/reinstatement duty ended 'as to its former Du Pont site (hereafter Du Pont) employee Heber Norris on April 21, 1980, and its former Herconfina site employees Larry McDowell, Donald Rouse, Jerry Carter,, and Sammy Wood on March 6, 1981. If either of the above results is a negative answer, then this inquiry must additionally consider the measure of Respondent's obligations absent a determina- tion that. Respondent's alternate arguments against liabil- ity are meritorious. On the entire record, my observation of the witnesses, and in consideration of posthearing briefs and motions, I make the following 2 The General Counsel's backpay specifications show seven discrimina- tees from the Du Pont site and four discrimtnatees from Herconfina James Stokes is shown as "Herconfina" by Respondent's brief and as Du Pont in the backpay specifications That confusion is immaterial since Stokes' backpay claim has been fully settled - 3 Respondent paid Norris his backpay claim for the period before April 21, 1980, in the aforementioned partial settlement 4 The General Counsel's backpay claims for the period before March 7, 1981, for the discriminatees formerly employed at Respondent's job at Herconfina were fully satisfied through the aforementioned partial settle- ment 1096 DECISIONS OF NATIONAL LABOR RELATIONS BOARD FINDINGS. I. HEBER NORRIS The seminal question here is whether Respondent made a valid offer of reinstatement to Norris before April 21, 1980. Norris admitted that he was phoned before April 21, 1980, by his supervisor, Sheet Metal Foreman James Whitehead, regarding Norns returning to work. Norris contends that Whitehead did not offer him a job. Whitehead, on the other hand, testified that he did offer reinstatement to Norris and that,Norris accept- ed the offer but never reported to work. An examination of the record cast serious doubt about the total accuracy of the testimony from both Heber and James Whitehead. For example, James Whitehead testified that he called and offered reinstatement to Norris on April 17 or 18, 1984. Whitehead's testimony was supported by White- head's immediate supervisor, J. C. Wiggins, and the project manager of the Du Pont site, Charlie Garrett. However, the record developed that Heber Norris gave an affidavit to an NLRB agent on April 8, 1980, wherein he discussed the contested phone- conversation with James Whitehead. In the affidavit Norris recalled the phone call occurred on March 27. Obviously, if the phone conversation had.occurred on April 17 or 18, as recalled by Whitehead, Wiggins, and Garrett, it would have been impossible for Norris to have told a Board agent about the call some 9 or 10 days before-April 17 or 18. Concerning the accuracy of Heber Norris' testimony, the record illustrates several possible conflicts. During the hearing, Norris again -recalled that the phone conver- sation occurred on March 27. Norris testified that he re- called that day because he had read his affidavit and March 27 was the date specified in the affidavit. Norris' testimony tracked closely his April '8, 1980 affidavit wherein he testified: Jim Whitehead called me around 3-27-80 at my home. He told me that he knew nothing of the layoff before it happened. He also said that Daniel would be hiring more employees around 4-21-80. He told me to come out and see if I could get a job. I asked Whitehead if they've accomplished anything by laying me off. At the hearing herein, Norris testified: - [Whitehead] told me 'that he heard they may be hiring more employees around the 21st of April; for me to come down and see if I could get my job back He did not say they would hire me back,_he did not say they wouldn't. However, on May 8, 1984, Norris gave a second affi- davit to an NLRB agent. On that occasion. he testified: I, Heber Norris, was phoned by someone from Daniel Construction Co. (I do not recall who called me) asking if I wanted to return to work. This was shortly after I was laid off-but I do not recall ex- actly when. The person who called was inquiring if I was inter- ested in going back to work for Daniel. No offer of reinstatement was made; no offer of backpay was made; no date to return to work was given me. I did not receive a letter asking me to return"_to work, along with the phone call. Now that I think on it, it was Jim Whitehead, my foreman at Daniel, who called me. James Whitehead testified as follows regarding his phone call to Norris: I told [Norris] I had talked to the superintendent, and he told me it was all right for [Norris] to come back to work, and if he would report, back Monday he could go to work. Whitehead agreed with Norris that April 21 was the date when Norris should have gone onto the job. Ac- cording to Whitehead, Norris told him that he would report for work on April 21, 1980. 'Norris admittedly did not-show up on April 21, 1980. According 'to his testimony he was working for his father that day.5 Discussion It is noteworthy that Heber Norris' most recent affida-' vit testimony. is more supportive of James Whitehead's version of their pre-April 21, 1980 phone conversation than'it is of Norris' testimony at the hearing. In his May 8, 1984 affidavit, Norris admitted that Whitehead in- quired if he was interested in returning to work. That testimony does not fully square with Norris' testimony in his earlier affidavit, and at the hearing, that Whitehead said Norris should come out and see if he could get a job. Moreover, Norris' other testimony raises 'a serious question about his credibility: For example, when asked if he reported to Daniel's Du Pont site on April 21, Norris testified, "No, sir, I was working with my father that day." Perhaps Norris was working with his father on April 21. However, Norris' job. search records show that he- was actively searching for work immediately before and after April 21. According to Norris"notes, he sought work at Dallas Metal Works on April 10 and April 18,, 1980; at "Mintz Plumbing" on April 16, 1980; at "Wil- mington Elect." on April 17, 1980; and at "North Caroli- na Equip ." on April 22, 1980. It is'inconsistent for someone to refuse what he re- garded as an invitation to seek work from an employer that was admittedly hiring on April 21 while,.during the same period, engaging in extensive travels to seek work from other employers that were not known to be hiring. Norris' notes also show that he -sought work at Mundy6 on June 17 and July 10, 1980. Norris admitted 5 Noms began working for his father on a shrimp boat shortly after he was terminated by Respondent. ' 6 Spelled "Monday's" in Norris' notes DANIEL CONSTRUCTION CO. on cross-examination that this notes referred to Mundy at the Herconfina site and that the dates he noted were in- correct. Indeed, those dates are incorrect. As shown below in his decision, Mundy's contract at Herconfina did not begin until March 7, 1981. Nevertheless, Norris' job search notes for calendar year 1980 list two job search visits to Mundy in the summer of 1980. Norris' approach to documentation of his search for jobs exceeds the realm of carelessness. He allegedly tried to reconstruct notes which were lost. However, the ap- parent discrepancy between his testimony as to why he did not seek work with Respondent on April 21 and the notes showing extensive job search activity during that immediate period casts grave doubt on the accuracy of Norris' testimony and his notes. The inclusion of-an em- ployer that did not appear until after 1980 on those 1980 notes convinces me that Norris fabricated that portion of his job search documentation. When the above credibility difficulties are considered alongside Norris' differing accounts of the James White- head phone conversation, I find that I must discredit Norris' testimony which is in conflict with other evi- dence. Therefore, I do not credit Norris' testimony that James Whitehead did not offer him reinstatement. Moreover, I am convinced that portions of Norris' af-, fidavit testimony support Whitehead. For example, in his April 8, 1980 affidavit Norris, after Whitehead asked him to come to the job on April 21, "asked Whitehead if, they've accomplished anything by laying me off." That statement carries the implication that Norris believed the "layoff" had ended. Subsequently, of course, in his May 8, 1984 affidavit, Norris recalled that Whitehead asked him if he "wanted to return to work"-"if I was interest- ed in going back to work for Daniels." - The above testimony illustrates that Norris, in March and April 1980, felt he was being given the choice of re- turning to work. That impression is inconsistent with his other testimony that Whitehead simply suggested that Norris come out and apply. If Norris' testimony had been limited to that at the hearing and in his initial affidavit , I would be more in- clined to accept his version of the phone. conversation with Whitehead. Norris' subsequent affidavit -and the other difficulties mentioned above make it apparent that at least some of Norris ' testimony is inaccurate. Respondent has the burden of proving that it extended a valid reinstatement offer to Norris . In considering whether that burden was satisfied , I must consider the entire record. The record shows, without question, that James Whitehead phoned Heber ' Norris in March . or April 1980. According to Norris' admission , Whitehead inquired into Norris ' interest in returning to work and told Norris that Respondent would be hiring on April 21, 1980. As shown above, Norris' testimony reveals that he felt Whitehead was offering him reinstatement. Against that background, I am convinced that White- head extended an offer to Norris to return to work on April 21, 1980. Respondent's offer was a valid offer which had the effect of terminating its backpay and rein- statement obligation to Heber Norris on April 21, 1980. Whitehead 's credited testimony shows a specific and un- 1097 equivocal , offer of reinstatement was extended to Heber Norris. No conditions were attached to that offer. I find that the offer to Heber Norris constitutes a valid offer of reinstatement . Cf. Diversified Case Co., 272 NLRB 1099 (1984); Standard Aggregate Corp., 213 NLRB 154 (1974). II. THE HERCONFINA QUESTION On March 6, 1981, Respondent lost its maintenance and construction contract at Herconfina. The above- mentioned partial settlement resulted in full satisfaction of Respondent's backpay obligations through that date. On March 7, 1981, another contractor, Mundy Industrial Maintenance, Incorporated (Mundy) took over the Her- confina contract. The record evidence proved that Respondent is not as- sociated with Mundy and that Mundy is a competitor of Respondent. Mundy's vice president W. G. Nixon testified that preference in hiring at the Herconfina site was given to Respondent's employees employed at Herconfina on March 6, 1981. According to Nixon, Mundy interviewed between 400 and 500 applicants for the 150 to 160 super- visory and employee positions at Herconfina. On March 6, 1981, Respondent employed 133 employ- ees at Herconfina. Of the 133 former employees of Re- spondent at Herconfina, 121 were employed in Mundy's original work force. Within 1 month - of March 6, 1981, Respondent em- ployed 8 of its 133 former Herconfina site employees at other sites: Thereafter Respondent employed three addi- tional former Herconfina site employees at other sites. Respondent argues that its backpay and reinstatement obligations to discriminatees McDowell, Rouse, Carter, and Wood terminated when it lost the Herconfina con- tract on March 6, 1981. Those four discriminatees were former employees at the Herconfina site. Respondent did not continue to dispute that the four discriminatees would have been employed by Respondent at Hercon- fina on March 6 , 1981, but for Respondent 's illegal dis- crimination as found in the underlying decision. As shown above , the partial settlement resolved all matters on and before March 6, 1981. A. The Question of Law The instant question involves what, if any,. effect does Respondent's March 6, 1981 loss of the Herconfina con- tract have on the rights of discriminatees McDowell, Rouse, Carter, and Wood to reinstatement and backpay for-periods after March 6. The law requires that the General Counsel must prove damages in the form of gross backpay but it is the Re- spondent's burden to shown diminution (Mastro Plastics, 136 NLRB 1342, 1346 (1962); Montauk Iron & Steel, 135 NLRB 181 (1962); Ozark Hardwood Co., 119 NLRB 1130 (1957)). • The burden is on the Respondent to show that, follow- ing a discriminatory layoff or discharge, the discrimina- tees would have been laid off nondiscriminatorily. Buncher v. NLRB, 405 F.2d 787 (3d Cir. 1968); Nabors v. NLRB, 323 F.2d 686 (5th Cir. 1963), cert. denied 376 U.S. 911 (1964). 1098 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Simply stated, the instant question revolves into a de- termination of whether Respondent proved that its backpay/reinstatement obligation to the four above-men- tioned discriminatees ceased when it lost its Herconfina contract on March 6, 1981. The facts show that only '11 of 133 employees were employed by Respondent at other sites after March 6. However, 121 of those 133 continued to be employed at Herconfina by another em- ployer.7 Therefore, it was proved, and I find, that the probabilities are overwhelming that, but for Respond- ent's illegal discrimination, the four discriminatees would have continued to work at Herconfina (for Mundy) after March 6, 1981. The probabilities are even more over- whelming that the four discriminatees would have either continued working at Herconfina or have worked for Respondent at other sites after March 6 but for Respond- ent's discriminatory action. In similar situations the Board has held that an em- ployer's backpay/reinstatement obligations are not tolled when the job on which the discnminatees were formerly employed is terminated (Haberman Construction Co., 236 NLRB 79 (1978); American Auto-Felt Corp., 158 NLRB 1628 (1966); Hoke Janitorial Service, 213 NLRB 783 (1974)). B. Substantially Equivalent Employment Respondent argues that its loss of the Herconfina con- tract and the subsequent acquisition of "substantially equivalent positions" by discnminatees McDowell, Rouse, and Carter should result in the termination of its obligations to those employees. The General Counsel agrees that Donald Rouse ac- quired substantially equivalent employment when he was hired by Mundy Industrial Maintenance at Rouse's former position at Herconfina in April 1982 However, in all other respects, the General Counsel disputes Re- spondent's defense of substantially equivalent employ- ment. The basic rule in backpay/reinstatement remedial orders by the Board is rooted in Phelps Dodge Corp. v. NLRB, 313 U.S. 177 at 189 (1941), where the Supreme Court found that a reinstatement remedy by the Board was proper regardless of whether the particular discri- minatee had obtained equivalent employment elsewhere. The general rule enunciated in Phelps Dodge is found implicit in the Board's underlying Decision and Order. By that Decision and Order, Respondent is obligated to reimburse each discriminatee for wages lost due to Re- spondent 's discriminatory conduct until such time as Re- spondent offers that respective discriminatee reinstate- ment to-his former position or, if that position no longer exists , to a substantially equivalent position. Respondent argues that the instant case falls under the rule announced in American Auto-Felt Corp., supra and .Perma Vinyl Corp., 164 NLRB 968 (1967), which, ac- cording to Respondent, abridges the Phelps Dodge rule-to ? Mundy terminated 69 employees within 10 months of March 7,1981 Over o: a-half of those 69 terminations were based on the employees' fail- ure to fulfill expectations during their probationary . period However, there was no evidence demonstrating that the discnminatees would have been terminated if they had been employed by Mundy and the law does not permit me to make such an inference the extent of holding that where the respective discri- minatee's former position no longer exists because Re- spondent has sold its business , backpay may be perma- nently tolled on the discriminatee finding substantially equivalent employment elsewhere. The General Counsel concedes that backpay should be tolled herein where the respective discriminatee was hired at his old job by the replacement contractor at Herconfina. That was the situtation in the case of Donald Rouse and the General, Counsel specified, that Rouse's backpay stopped when he started work at Mundy (Herconfina site) on April 5, 1981. However, in other respects it does not appear that Re- spondent should be released from liability under the rule of American Auto-Felt and Perma Vinyl. Unlike those cases where the employers ceased to be employers upon sale of their businesses, Respondent continued,to operate several jobs in the Wilmington, North Carolina area after Mundy took over the Herconfina job. Respondent could, and in some instances did, continue to employ its former Herconfina site employees. Therefore, Respondent failed to establish that it should be released from continuing li- ability because Respondent did - not prove that it was unable, after March 6, 1981, to comply with the Board's reinstatement -order. After that date, Respondent's con- tinued operations in the Wilmington area may have in- cluded substantially equivalent positions to the positions formerly held by discriminatees Carter, McDowell, Rouse, and Wood. In that regard, Industrial Relations Manager Emerson Johnson testified that during 1981 Re-. spondent had jobs in the Wilmington area at "a Diamond Shamrock project in Castlehane, GE in Castlehane, the Du Pont job in Leland and we had a Pfisher Chemical job at South Point."8 As shown herein, Respondent has the burden of prov- ing diminution. It has failed to satisfy that burden above its contention regarding "substantially equivalent em- ployment." C. The Findings as to each Herconfina'Discriminatee According to the amended specifications, Respondent's backpay/reinstatement obligations are continuing con- cerning former Herconfina site employees Carter, McDowell, and Wood. None of those three has been of- fered reinstatement. Although the final discriminatee, Donald H. Rouse, has not been offered reinstatement, the backpay specifications and the General Counsel in her brief concede that Rouse secured "substantial equivalent employment" in April 1982. As shown above, the issues before me involve alleged obligations after March 6, 1981. Respondent's liability to Carter, Rouse, McDowell, and Wood for all periods on and before March 6, 1981, was satisfied through the above-mentioned partial settlement. 8 Johnson admitted that Respondent had 47 jobs in North Carolina and 52 jobs in South Carolina in the March-April 1980 period DANIEL CONSTRUCTION CO 1099 1. Jerry Carter9 The amended specifications show the alleged backpay obligation to Carter extends past 1983.10 The General Counsel reserves the right to have a determination of further backpay obligation. Respondent contends that Carter acquired substantially equivalent employment at Wood Tee Company. Carter was employed at Wood Tee from August 12, 1980. His employment continued at the time of the hearing herein. Additionally Respondent contends that the - General Counsel improperly deducted from Carter's gross interim earnings amounts earned while working what was' termed excess overtime at Wood Tee. - As to the issue of substantially equivalent employment: As noted above, Respondent has the burden of proving diminution of gross backpay. Therefore, it is Respond- ent's burden to prove its ' assertion that backpay/- reinstatement should be terminated at some point because Carter secured substantially equivalent employment. As noted above, I have found that the law does not support Respondent's general argument that the Board must terminate an employee's backpay/reinstatement en- titlement when the employee finds substantially equiva'- lent, employment elsewhere (Phelps Dodge Corp. v. NLRB, 313 U.S. 177 (1977)). - Moreover, as to Jerry Carter, there is no showing on the record that Carter's interim employment with Wood Tee Company was substantially equivalent to his former job with Respondent or to the job he may have had with Mundy absent Respondent's discrimination. For example, the record- does not reflect Carter's working c onditions at Wood Tee. Therefore, I find that assuming arguendo that a question exists regarding substantially- equivalent interim employment, Respondent has failed-to satisfy its burden of proving that point (cf. Western Wirebound Box, ' 188 NLRB 164 (1971);'Mooresville Cotton Mills v. NLRB, 110 F.2d 179 (4th Cir. 1940); Winn Dixie Stores, 170 NLRB 1734 (1968); Trinity Valley Iron & Steel Co., 158 NLRB 890 (1966)). As to the issue of excessive overtime, the record shows that Carter's interim earnings exceeded gross backpay. However, according to the General Counsel,-it was necessary for Carter to work overtime in excess of that worked by the average Herconfina site comparable employees in order to earn his total interim earnings. The General Counsel contends that- Carter's pay for those overtime hours in excess what the average Hercon- fina site employee worked should be deducted from his interim earnings. The General Counsel's practice exercised herein of de- ducting excess :overtime earnings from total interim earn- 9 In its "Response" dated January 10, 1985, at par 5, p 4, Respondent- stated that Carter was not produced at the backpay hearing That is true However, there was no showing by Respondent either that Carter was unavailable , • that Respondent made reasonable efforts to have Carter appear , that Carter 's testimony was necessary, or that the General Coun- sel refused to cooperate and produce Carter Under the circumstances, I am unable to make a determination that Respondent was unjustly harmed in any manner by the fact that Carter did not appear 10 As shown above I shall not now consider the specifications past 1983 ings is rooted in United Aircraft Corp, 204 NLRB 1068, 1073 (1973). . The payments for "excess overtime'.' are,, of course, earnings and not collateral benefits . .. - . It - would, therefore, be anomolous, in all the circum- stances of this case, to hold that the Respondent's backpay obligation to D'Andrea would not be di- minished to the extent that he worked on a "moon- lighting" job, but would be to the extent that he performed, in addition to a regular full-time job, overtime work in excess of the hours he would have worked if employed by the Respondent. Ac- cordingly, I find that the Respondent has shown no adequate basis, in all the relevant circumstances, for reducing the amount of backpay that the Specifica- tion, as amended, claims to be due to D'Andrea. Respondent, in its brief, concedes that it is the Board's established - policy to deduct excess, overtime earnings from total interim earnings , but quarrels with the Gener- al Counsel's computation of excess overtime. Respondent argues that Carter's excess overtime should be reduced by the number of overtime hours'that are standard in the industry without regard to whether the exact same number of hours have been worked by Daniel or Mundy at-the Herconfina site. Respondent argues that the Gen- eral Counsel has understated the number- of overtime hours worked by the average Mundy employee and that some Mundy employees work significantly more, over- time hours than others. Therefore, Respondent 'argues that Carter's interim earnings should include his overtime earnings or alternatively: should include-his overtime, to the extent representative Mundy employees worked overtime. - • ' Respondent's arguments have a basis in reason. How- ever, that reasoning, when applied against the --record evidence, results in confusion (i.e., the record does not show how many overtime hours Jerry Carter .would have worked for Respondent or Mundy at Herconfina after March 6, 1981, but for his illegal termination): It appears • no more logical to apply to Carter, what the most ambitious Mundy employee worked as overtime than to apply to -him what the average Mundy employee worked as overtime. The record supports' neither equa- tion. - However, it is proper, as shown in Southeastern' Enve- lope Co., 246-NLRB 423,-424 (1979),^to exclude overtime from interim earnings in instances where projected over- time is not included in gross backpay. Due to the uncer- tainty of the General Counsel's overtime projection in Carter's gross backpay figures, it' would be appropriate to exclude those figures -provided Carter's actual interim overtime earnings are not included as interim ' earnings (Southeastern Envelope Co., supra). In view of -Respond- ent's contentions,' I find that the most appropriate meas- ure of Carter's net backpay should be computed by ex- cluding projected overtime, from gross backpay and actual overtime from interim earnings. Therefore, I -have'determined to disallow the General Counsel's claimed overtime earnings as an addition to gross back wages . Additionally, in view of the holding in 1100 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Southeastern Envelope Co., supra , I shall reduce Carter's total interim earnings by that portion of his earnings rep- resenting overtime. ' Year/Qtr. 3 Gross Backpay 5592 Interim Earnings 5733 Net Backpay - 0Carter s net backpay entitlement through 1983 is as 4. 6276 6644 0follows: - 1982/1 6752 5996 ,756 Year/Qtr.- Gross Backpay Interim Earnings Net Backpay 1981/1 $1366 $1188 $ 178 2 5085 4421 664 3 5182 4573 609 4 5151 4603 548 1982/1 5769 4725 1044 2 5661 4597 1064 3 5730 4723 1007 4 5593 4665 928 1983/1 5430 4529 901 2 5708 4761 947 3 5705 4758 947 - 4 5653 4715 938 3. Larry McDowell The amended specifications allege that Respondent's backpay obligation to McDowell continued beyond 1983. As in the case of Jerry Carter , the General Counsel con- tends that Respondent 's obligation is 'continuing as to McDowell. In addition to arguments of Respondent considered - above , Respondent argues that McDowell's claimed ex- penses of $ 197 for the fourth quarter of 1981 is not sup- ported by record evidence; that McDowell , obtained.sub- stantially equivalent employment at Babcock & Wilcox; that McDowell had .a willful loss of earnings after a second layoff from Babcock & Wilcox ; and that earnings from a secondary employer should be included as.interim earnings. Concerning Respondent's substantially equivalent em- ployment argument , as shown above , I have found that, from a general issue standpoint , the General Counsel must prevail . Moreover , concerning McDowell, the record shows . that he did not acquire substantially equiv- alent employment . Unfortunately , from _ Respondent's standpoint , the record has the advantage of viewing McDowell 's Babcock & Wilcox employment , which Re- spondent claims constitutes substantial equivalent em- ployment , from hindsight which illustrates that that job resulted first in a temporary layoff then a permanent layoff of McDowell . McDowell was permanently laid off when Babcock & Wilcox closed its plant on August 5, 1983 . Conversely , Respondent has continued to main- tain jobs in. the Wilmington area and the Mundy job at Herconfina has also continued . Therefore, it is clear and I find that the record -shows that McDowell never ac- quired substantially equivalent employment. Concerning McDowell's claimed expenses, it is true that McDowell testified that the $197 claim for the fourth quarter of 1981 was within "a dollar or two" of his record expenses . In view of that testimony, I shall reduce the figure by $2. Respondent also asserts that McDowell "could produce no records to substantiate the claimed expenses of $197 .00." The record does not sup- port Respondent's assertion . In fact , McDowell testified that he had "the phone bill, and an estimated mileage" at his home. The record shows that McDowell was never . asked to produce those records . In view of McDowell's testimony , which was not rebutted , I shall - award ex- penses of $195. - Concerning the argument that McDowell engaged in willful loss of earnings after his permanent layoff from Babcock & Wilcox on August 5, 1983: Again , Respond- ent's position finds no support in the record : The record shows that McDowell continued to work part -time with' Brunswick Technical College and, after the Babcock & Wilcox plant closed , he went to work for "West Bruns- 2. Donald Rouse The General Counsel admitted , as shown above, that Rouse voluntarily resigned his interim employment on April 2 , 1982, to accept substantially equivalent employ- ment with Mundy at Herconfina on April 5, 1982. While Respondent does not contest the above , it con- tends - further that Rouse accepted substantially equiva- lent employment with "B.E. & K." from March 7, 1981, until April 2, 1982 . As shown above I have found that the law does not . support Respondent in that regard. Moreover , as in the case of Jerry Carter, the record does not show that Rouse was substantially equivalently em- ployed from March 7 , 1981. For example, the record shows that Rouse was required to drive a greator dis- tance to work for B . E. & K (15 miles) and Rouse re- signed that position to return to his former job with Mundy at Herconfina. Additionally , Respondent argues that Rouse 's supple- mentary employment at Southeastern Community Col- lege of $1237 during May, June , and July 1981 , while he was primarily employed at BE. &.K., should be added to his interim earnings. The record failed to prove that Rouse would not have been able to work at Southeastern Community College before his illegal termination by Respondent . Rouse testi- fied that he was never "on call" during off-duty hours and there was no showing that he would have been re- quired to , forgo supplementary employment because of compulsory overtime or otherwise . Therefore, under standard Board jurisprudence , I will not add supplemen- tary employment earnings to Rouse 's interim earnings. See United Aircraft Corp ., 204 NLRB 1068, 1073 (1973); Miami Coca-Cola Co ., 151 NLRB 1701 (1965 ), enfd. 360 F.2d 569 (5th Cir. 1966). Year/Qtr. Gross Interim Net Backpay Earnings Backpay 1981/1 $1550 $833 $717 2 5872 • 6340 0 DANIEL CONSTRUCTION CO. wick this past school year full-time." The record does not show that McDowell failed to testify or produce records" regarding his employment or job search after August 5, 1983. McDowell's testimony shows that he was never examined regarding the specifics of his post- August 5, -1983 job search. As shown above, Respondent has the burden of proving diminution of gross backpay. Respondent has failed to prove that McDowell engaged in willful loss of earnings during any relevant period. Regarding secondary employment, McDowell is gov- erned by the rule as discussed above. He was employed by Brunswick Technical School and, solely concerning those periods when McDowell was permanently em- ployed by Babcock & Wilcox, the General Counsel has not included his Brunswick Technical earnings as interim earnings . The evidence proved that, while working with Respondent, McDowell occasionally worked overtime, usually on a voluntary basis, and once a month he was on call for emergencies. However, McDowell testified that it was permitted to arrange to have other employees substitute for the emergency on-calls . i 2 Respondent con- tends that McDowell could not have held secondary em- ployment during his employment with-Daniel and,, for that reason, his interim secondary -earnings should be in- cluded as interim earnings . Again, the record does not support Respondent's contention. A careful review of the material testimony fails to prove that either the on-call or overtime program practiced by Respondent at Her- confina would have -interfered with McDowell's second- ary employment. Regarding McDowell's secondary em- ployment.at Brunswick Tech there was no showing of how overtime or on-call requirements could have inter- fered with that job Therefore, I find that the General Counsel is correct in his assertion that McDowell's sec- ondary employment should not be included as interim earnings. - The record also reflects that McDowell, while at Bab- cock & Wilcox, received vacation and holiday time -and insurance benefits. Those matters are collateral and do not constitute - interim earnings or otherwise offsets against gross backpay. Medline Industries, 261 NLRB 1328, 1337 (1982). McDowell's net backpay entitlement through 1983 is as follows: Year/Qtr. Gross Backpay Interim Earnings Net Backpay 1981/1 $1550 - $1151 $399 2 5872 5487 385 3 - 5592 4590 1002'- - 4 6276 13937 5339 1982/1 6752 3294 3548 11 R Exh 6 was the only record introduced by Respondent regarding McDowell 's job search and that record was limited to the period of time before McDowell was rehired after his temporary layoff by Babcock & Wilcox 12 Although Respondent 's industrial relations manager Emerson John- son testified that Daniel at one time changed its on-call policy at Hercon- fina to a policy that did not permit substitution , Johnson admitted that he had no knowledge of Respondent 's actual on-the-job practice regarding the on -call program - - 13 Interim earnings of $1132 minus expenses of $195 . 1101 Year/Qtr. Gross , Backpay Interim Earnings Net Backpay 2- 6205 4640 •1565 3 -5010 4930 80 4 5957 5386 571 1983/1 5750 4679 1071 '2 - 6892 4896 1996 3 6156 2586 3570 4 6786 1906 4880 4. Sammy Wood The amended specifications 'show that Respondent's backpay obligation to Wood totals $39,250 through the end of 1983 and is continuing. As in the above cases, the partial settlement herein resolved Respondent's backpay obligations on and before March 6, 1981. -Concerning Sammy Wood, -Respondent presents two defenses: (1) Respondent claims that the General Coun- sel's claim of $42 in expenses for the first quarter of 1981 are unsupported by record evidence; and (2) Respondent argues that Wood incurred willful loss of earnings by failing to pursue a search for suitable work after Wood properly "lowered his sights" and accepted a lower paying job in February 1981. a.. Expenses for first quarter 1981 As shown above, the only period of the first quarter 1981 which remained material after the partial settlement was the few days in March after Respondent lost the Herconfina contract on March 6, 1981. - During the hearing Wood was questioned about ex- penses incurred after March 6. Wood testified that some of those expenses were incurred in February-1981 and that he did not recall how much of the claim occurred after March 6. - In view of Wood's testimony, I agree with Respond- ent. The record does not support the General Counsel's claim that Wood incurred interim expenses after March 6 in the first quarter of 1981. Wood began work at Wood Painting Contractors on February 26, 1981. There was no showing of specific expenses through job search or otherwise after February 26 and before the end of March 1981. b. Willful loss of earnings Sammy Wood worked for Respondent at Herconfina as a multicrane operator until his termination in April 1980. Subsequently, Wood was unable to find compara- ble 'work. Respondent admitted in its brief that Wood properly lowered his sights in February 1981 when he accepted lower paying work in his family's business, Wood Painting Contractors. However, Respondent argues' that by lowering his sights Wood was not absolved from a continuing obliga- tion to seek suitable interim employment. The record shows that Respondent is correct in certain aspects. Ac- cording to Wood's testimony, he continued to seek work to the extent he was financially able after February 26, 1981. In that regard, Wood offered his notes which were 1102 DECISIONS OF NATIONAL LABOR RELATIONS BOARD received in evidence as Respondent's Exhibit 7. The back page of that exhibit shows that Wood made some 10 contacts to 6 of those employers and that he accepted employment with the seventh. Additionally, Wood testi- fied about other employers he contacted after March 1981 . No contrary evidence was offered to Wood's testi- mony in that regard and I find that Wood continued to seek suitable work throughout 1981 and into the first quarter of 1982.14 However, no documentation was offered to show that Wood continued to seek suitable work after March 1982. Moreover, Wood's testimony regarding subsequent job searches came under serious attack. Wood testified as to only one specific employer he contacted after mid-1982. He testified that he applied for work with Respondent on their Diamond Shamrock job in August 1983. However, Respondent's industrial rela- tions manager Emerson Johnson testified that Respond- ent's contract at Diamond Shamrock expired in Decem- ber 1981 and that Respondent was not on that job in 1983. No evidence was offered to dispute Johnson's testi- mony. I was impressed with Emerson Johnson 's demean- or and I credit his testimony regarding the Diamond Shamrock job. I find that Wood was mistaken in his tes- timony that he sought work with Respondent at Dia- mond Shamrock after 1981. In view of the above, I find that the record illustrates that Wood did not continue to seek suitable interim em- ployment after the first quarter of 1982. Therefore, I shall limit Respondent's backpay obligation to the end of March 1982. NLRB v. Madison Courier, 505 F.2d 391 (D.C. Cir. 1974). Wood's backpay settlement is as follows: 14 Wood testified about interim employment he acquired with Steve Wood Painting Contractors during July and August 1982 However, the amended specifications show that Wood was unavailable for work due to illness from April I to October 20, 1982 In view of his unavailability, I find that Wood was mistaken about the dates of his work with Steve Wood Painting Contractors. As shown below there was no credible evi- dence that Wood continued to seek suitable work after his April 1 to Oc- tober 20, 1982 illness 15 Claimed expenses of $42 not permitted. Year/Qtr. Gross Backpay Interim Earnings Net Backpay 1981/1 $ 1550 15$1089 $461 2 5872 132 5740 3 5164 1760 3404 4 6276 2921 3355 1982/1 6752 02165 4587 Conclusions To the extent shown above, I have concluded that the formulas used in the amended backpay specifications were reasonable and appropriate and that the mathemati- cal calculations based on those formulas were accurate. I have concluded that Respondent's proposed alternate fig- ures were unreasonable and would not provide a just measure of the backpay owed to the discriminatees under the underlying Board Order and enforcement decree of the Fourth Circuit Court of Appeals. As shown above, I have determined that Respondent sustained the burden of proving that the backpay entitlement of Heber Norris was tolled when he was offered reemployment on April 21, 1980, and that the backpay entitlement of Sammy Wood was tolled when he failed to seek suitable interim employment after March 1982. As shown in the amended specifications, Donald Rouse's backpay entitlement was tolled when he accepted his former job at the Hercon- fina site with Mundy. Concerning discriminatees Larry McDowell and Jerry Carter, Respondent's backpay/reinstatement obligations were shown to be continuing and, to the extent backpay entitlement for McDowell and Carter may be specified for periods after 1983, I recommend that I shall retain ju- risdiction of this matter to properly consider appropriate specifications which the General Counsel may submit in the future. [Recommended Order omitted from publication.] Copy with citationCopy as parenthetical citation