Frontline Security ServicesDownload PDFNational Labor Relations Board - Board DecisionsMay 16, 2019367 NLRB No. 131 (N.L.R.B. 2019) Copy Citation 367 NLRB No. 131 NOTICE: This opinion is subject to formal revision before publication in the bound volumes of NLRB decisions. Readers are requested to notify the Ex- ecutive Secretary, National Labor Relations Board, Washington, D.C. 20570, of any typographical or other formal errors so that corrections can be included in the bound volumes. Frontline Security Services and Governed United Se- curity Professionals. Case 05–CA–176516 May 16, 2019 DECISION AND ORDER BY CHAIRMAN RING AND MEMBERS MCFERRAN AND KAPLAN The General Counsel seeks a default judgment in this case on the ground that the Respondent failed to file an answer to the complaint. Upon a charge filed by Gov- erned United Security Professionals (the Union), on May 18, 2016, the General Counsel issued a complaint and notice of hearing on September 30, 2016, against Front- line Security Services (the Respondent), alleging that it has violated Section 8(a)(5) and (1) of the Act. The Re- spondent failed to file an answer. On March 24, 2017, the General Counsel filed with the National Labor Relations Board Motions to Transfer Proceedings to the Board and for Default Judgment. Thereafter, on March 28, 2017, the Board issued an order transferring the proceeding to the Board and a Notice to Show Cause why the motion should not be granted. The Respondent filed no response. The allegations in the motion are therefore undisputed. On the entire record, the National Labor Relations Board makes the following Ruling on Motion for Default Judgment Section 102.20 of the Board’s Rules and Regulations provides that the allegations in a complaint shall be deemed admitted if an answer is not filed within 14 days from service of the complaint, unless good cause is shown. In addition, the complaint affirmatively stated that unless an answer was received by October 14, 2017, the Board may find, pursuant to a motion for default judgment, that the allegations in the complaint are true. Further, the undisputed allegations in the General Coun- sel’s motion disclose that the Region, by letter dated Oc- tober 18, 2016, advised the Respondent that unless an answer was received by October 25, 2016, a motion for default judgment would be filed. Nevertheless, the Re- spondent failed to file an answer. In the absence of good cause being shown for the fail- ure to file an answer, we deem the allegations of the con- solidated complaint to be admitted as true, and we grant the General Counsel’s Motion for Default Judgment.1 1 Although some documents served on the Respondent were re- turned as unclaimed, the exhibits to the General Counsel’s motion show On the entire record, the Board makes the following FINDINGS OF FACT I. JURISDICTION At all material times, the Respondent has been a lim- ited liability company with an office and place of busi- ness at the Social Security Administration National Sup- port Center in Urbana, Maryland, and has been engaged in the business of providing security services to state and federal agencies. In conducting its operations during the 12-month peri- od ending August 30, 2016, the Respondent performed services valued in excess of $50,000 in states other than the State of Maryland. We find that the Respondent is an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act and that the Union is a labor organization within the meaning of Section 2(5) of the Act. II. ALLEGED UNFAIR LABOR PRACTICES At all material times, the following individuals have held the positions set forth opposite their respective names and have been supervisors of the Respondent within the meaning of Section 2(11) of the Act and agents of the Respondent within the meaning of Section 2(13) of the Act: Frank Duran Director of Operations Devonne Edwards President Judith Welch Director of Human Resources Jamal Young Project Manager The following employees of the Respondent (the unit) constitute a unit appropriate for the purposes of collec- tive bargaining within the meaning of Section 9(b) of the Act: All full-time and regular part-time security officers and sergeants employed by the Employer at the Social Se- curity Administration National Support Center current- ly located in Urbana, Maryland; but excluding all lieu- that the Respondent’s attorney received, by certified mail, the reminder letter from the Regional Attorney stating that no answer to the com- plaint had been filed and enclosing a courtesy copy of the complaint. Further, the exhibits contain an email from the Respondent providing contact information for its attorney, in response to an inquiry from the Region’s attorney concerning the investigation of the charge. In any event, it is well settled that a respondent’s failure or refusal to accept certified mail or to provide for appropriate service cannot serve to defeat the purposes of the Act. See, e.g., Cray Construction Group, LLC, 341 NLRB 944, 944 fn. 5 (2004); I.C.E. Electric, Inc., 339 NLRB 247, 247 fn. 2 (2003). DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD2 tenants, captains, office clerical employees, profession- al employees, managerial employees, and supervisors as defined by the Act. On October 14, 2014, the Board certified the Union as the exclusive collective-bargaining representative of the unit. At all times since October 14, 2014, based on Sec- tion 9(a) of the Act, the Union has been the exclusive collective-bargaining representative of the unit. The following events occurred, giving rise to these proceedings: 1. (a) Since about late January 2016, the Union has requested, orally, that the Respondent furnish the Union with proof of health insurance coverage for unit employ- ees. (b) Since about February 2016, the Union has request- ed, orally, that the Respondent furnish the Union with certified payrolls. (c) The information requested by the Union, as de- scribed above in paragraph 1(a) and (b), is necessary for, and relevant to, the Union’s performance of its duties as the exclusive collective-bargaining representative of the unit. (d) Since about late January 2016, the Respondent has failed and refused to furnish the Union with the infor- mation requested by it as described above in paragraph 1(a). (e) Since about February 2016, the Respondent has failed and refused to furnish the Union with the infor- mation requested by it as described above in paragraph 1(b). 2. (a) About July 1, 2015, the Union entered into a collective-bargaining agreement with the Respondent, effective from July 2015 through June 2018 (the 2015- 2018 collective-bargaining agreement). (b) The 2015–2018 collective-bargaining agreement contains an article, Article 11, pertaining to the health and welfare benefits for employees in the unit. (c) Since about January 1, 2016, the Respondent has failed to continue in effect all the terms and conditions of the 2015–2018 collective-bargaining agreement by fail- ing to provide health benefits to employees in the unit under the terms of Article 11. (d) The terms and conditions of employment described above in paragraph 2(c) are mandatory subjects for the purposes of collective bargaining. (e) The Respondent engaged in the conduct described above in paragraph 2(c) without the Union’s consent. CONCLUSIONS OF LAW 1. By the conduct described above in paragraph 1(d) and (e), the Respondent has failed and refused to bargain collectively with the exclusive collective-bargaining rep- resentative of its employees in violation of Section 8(a)(5) and (1) of the Act. 2. By the conduct described above in paragraph 2(c) and (e), the Respondent has failed and refused to bargain collectively with the exclusive collective-bargaining rep- resentative of its employees within the meaning of Sec- tion 8(d) of the Act in violation of Section 8(a)(5) and (1) of the Act. 3. The Respondent’s unfair labor practices described above affect commerce within the meaning of Section 2(6) and (7) of the Act. REMEDY Having found that the Respondent has engaged in cer- tain unfair labor practices, we shall order it to cease and desist and to take certain affirmative action designed to effectuate the policies of the Act. Specifically, having found that the Respondent violated Section 8(a)(5) and (1) of the Act by failing and refusing to provide to the Union with requested information that is necessary and relevant to the Union’s performance of its duties as the exclusive collective-bargaining representative of the unit employees, we shall order the Respondent to furnish the Union with the information it requested in late January and February 2016. Having further found that the Respondent violated Section 8(a)(5) and (1) of the Act by failing to continue in effect all the terms and conditions of the 2015–2018 collective-bargaining agreement by failing to provide health benefits to employees in the unit under the terms of Article 11, we shall order the Respondent to restore and maintain those contractual health benefits, and to make the unit employees whole for any loss of benefits suffered as a result of the Respondent’s unlawful con- duct. The Respondent shall make all required health benefit payments or contributions, if any, that have not been made since January 1, 2016, including any addi- tional amounts applicable to such payments or contribu- tions as set forth in Merryweather Optical Co., 240 NLRB 1213, 1216 (1979).2 In addition, the Respondent shall reimburse unit employees for any expenses result- ing from its failure to continue in effect the terms of Ar- ticle 11, as set forth in Kraft Plumbing & Heating, 252 NLRB 891 fn. 2 (1980), enfd. mem. 661 F.2d 940 (9th Cir. 1981). Such amounts shall be computed in the man- ner set forth in Ogle Protection Service, 183 NLRB 682 (1970), enfd. 444 F.2d 502 (6th Cir. 1971), with interest 2 To the extent that an employee has made personal contributions to a fund that are accepted by the fund in lieu of the Respondent's owed contributions, the Respondent will reimburse the employee, but the amount of such reimbursement will constitute a setoff to the amount that the Respondent otherwise owes the fund. FRONTLINE SECURITY SERVICES 3 as prescribed in New Horizons, 283 NLRB 1173 (1987), compounded daily as prescribed in Kentucky River Med- ical Center, 356 NLRB 6 (2010). The Respondent shall compensate affected employees for the adverse tax con- sequences, if any, of receiving lump-sum benefit awards, and file with the Regional Director a report allocating the benefit awards to the appropriate calendar years for each employee. AdvoServ of New Jersey, Inc., 363 NLRB No. 143 (2016). ORDER The National Labor Relations Board orders that the Respondent, Frontline Security Services, Urbana, Mary- land, its officers, agents, successors, and assigns shall: 1. Cease and desist from (a) Failing and refusing to bargain collectively and in good faith with Governed United Security Professionals (the Union) as the exclusive collective bargaining repre- sentative of employees in the following appropriate unit by refusing to furnish the Union with requested infor- mation that is relevant and necessary to the Union’s per- formance of its functions as the collective-bargaining representative of the Respondent’s unit employees: All full-time and regular part-time security officers and sergeants employed by the Employer at the Social Se- curity Administration National Support Center current- ly located in Urbana, Maryland; but excluding all lieu- tenants, captains, office clerical employees, profession- al employees, managerial employees, and supervisors as defined by the Act. (b) Failing to continue in effect the terms and condi- tions of the 2015–2018 collective-bargaining agreement by failing to provide health benefits to employees in the unit under the terms of Article 11, without the Union’s consent. (c) In any like or related manner interfering with, re- straining, or coercing employees in the exercise of the rights guaranteed them by Section 7 of the Act. 2. Take the following affirmative action necessary to effectuate the policies of the Act. (a) Furnish to the Union in a timely manner the infor- mation requested by the Union in late January and Feb- ruary 2016. (b) Restore to unit employees the contractual health benefits they enjoyed before the Respondent unlawfully failed to continue in effect the contractual benefits set forth in Article 11 of the 2015–2018 collective- bargaining agreement. (c) Make unit employees whole for any losses suf- fered as a result of the Respondent’s unlawful conduct in the manner set forth in the remedy section of this deci- sion. (d) Compensate unit employees for the adverse tax consequences, if any, of receiving a lump-sum benefit award, and file with the Regional Director for Region 5, within 21 days of the date the amount of benefit pay is fixed, either by agreement or Board order, a report allo- cating the award to the appropriate calendar years. (e) Preserve and, within 14 days of a request, or such additional time as the Regional Director may allow for good cause shown, provide at a reasonable place desig- nated by the Board or its agents, all payroll records, so- cial security payment records, timecards, personnel rec- ords and reports, and all other records including an elec- tronic copy of such records if stored in electronic form, necessary to analyze the amount of benefit payments due under the terms of this Order. (f) Within 14 days after service by the Region, post at its facility in Urbana, Maryland, copies of the attached notice marked “Appendix.â€3 Copies of the notice, on forms provided by the Regional Director for Region 5, after being signed by the Respondent's authorized repre- sentative, shall be posted by the Respondent and main- tained for 60 consecutive days in conspicuous places including all places where notices to employees are cus- tomarily posted. In addition to physical posting of paper notices, notices shall be distributed electronically, such as by email, posting on an intranet or an internet site, and/or other electronic means, if the Respondent custom- arily communicates with its employees by such means. Reasonable steps shall be taken by the Respondent to ensure that the notices are not altered, defaced, or cov- ered by any other material. If the Respondent has gone out of business or closed the facility involved in these proceedings, the Respondent shall duplicate and mail, at its own expense, a copy of the notice to all current em- ployees and former employees employed by the Re- spondent at any time since January 1, 2016. (g) Within 21 days after service by the Region, file with the Regional Director for Region 5 a sworn certifi- cation of a responsible official on a form provided by the Region attesting to the steps that the Respondent has taken to comply. Dated, Washington, D.C. May 16, 2019 ______________________________________ John F. Ring, Chairman 3 If this Order is enforced by a judgment of a United States court of appeals, the words in the notice reading “Posted by Order of the Na- tional Labor Relations Board†shall read “Posted Pursuant to a Judg- ment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board.†DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD4 ______________________________________ Lauren McFerran, Member ______________________________________ Marvin E. Kaplan, Member (SEAL) NATIONAL LABOR RELATIONS BOARD APPENDIX NOTICE TO EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government The National Labor Relations Board has found that we violated Federal labor law and has ordered us to post and obey this notice. FEDERAL LAW GIVES YOU THE RIGHT TO Form, join, or assist a union Choose representatives to bargain with us on your behalf Act together with other employees for your bene- fit and protection Choose not to engage in any of these protected activities. WE WILL NOT fail and refuse to bargain collectively and in good faith with Governed United Security Profes- sionals (the Union) as the exclusive collective-bargaining representative of our employees in the following appro- priate unit by refusing to furnish the Union with request- ed information that is relevant and necessary to the Un- ion’s performance of its functions as the collective- bargaining representative of our unit employees: All full-time and regular part-time security officers and sergeants employed by the Employer at the Social Se- curity Administration National Support Center current- ly located in Urbana, Maryland; but excluding all lieu- tenants, captains, office clerical employees, profession- al employees, managerial employees, and supervisors as defined by the Act. WE WILL NOT fail to continue in effect all the terms and conditions of the 2015–2018 collective-bargaining agreement by failing to provide health benefits to em- ployees in the unit under the terms of Article 11, without the Union’s consent. WE WILL NOT in any like or related manner interfere with, restrain, or coerce you in the exercise of the rights listed above. WE WILL furnish the Union in a timely manner with the information requested by the Union in late January and February 2016. WE WILL restore to you the contractual health benefits set forth in Article 11 of the 2015–2018 collective- bargaining agreement that you enjoyed before we unlaw- fully failed to continue in effect those benefits on Janu- ary 1, 2016. WE WILL make whole, with interest, all of our unit em- ployees for any losses they may have suffered as a result of our unlawful failure to provide health benefits to em- ployees in the unit under the terms of Article 11, without the Union’s consent. WE WILL compensate you for the adverse tax conse- quences, if any, of receiving a lump-sum benefits award, and WE WILL file with the Regional Director for Region 5, within 21 days of the date the amount of the benefit is fixed, either by agreement or Board order, a report allo- cating the benefit award to the appropriate calendar years. FRONTLINE SECURITY SERVICES The Board’s decision can be found at www.nlrb.gov/case/05-CA-176516 or by using the QR code below. Alternatively, you can obtain a copy of the decision from the Executive Secretary, National Labor Relations Board, 1015 Half Street, S.E., Washington, D.C. 20570, or by calling (202) 273-1940. Copy with citationCopy as parenthetical citation