Image Arts, Inc.

National Labor Relations Board - Board Decisions

Jun 29, 1978

236 N.L.R.B. 1229 (N.L.R.B. 1978)

Image Arts, Inc., a wholly owned subsidiary of Maxco,
Inc. and Sandra Kay Willis. Case 7-CA 14516
June 29, 1978
DECISION AND ORDER
BY CHAIRMAN FANNING AND MEMBERS PiNt .I.()
AND TRUESDALE
Upon a charge filed on October 20, 1977, by San-
dra Kay Willis, an individual, herein called the
Charging Party, and duly served on Image Arts, Inc..
a wholly owned subsidiary of Maxco. Inc., herein
called Respondent, the General Counsel of the Na-
tional Labor Relations Board, by the Regional Di-
rector for Region 7, issued a complaint on December
19, 1977, against Respondent, alleging that Respon-
dent had engaged in unfair labor practices affecting
commerce within the meaning of Section 8(a)(1) and
Section 2(6) and (7) of the National Labor Relations
Act, as amended. Copies of the charge, complaint,
and notice of hearing before an Administrative Law
Judge were duly served on the parties to this pro-
ceeding. Subsequently, Respondent filed an answer.
admitting in part and denying in part the allegations
of the complaint, requesting that the complaint be
dismissed and that Respondent be awarded its costs
and expenses incurred in defending this matter. By
letter dated April 17, 1978, Respondent requested
withdrawal of its answer, specifically reserving, how-
ever, the right to raise issues in the backpay proceed-
ing. On April 25, 1978, the Regional Director for Re-
gion 7 issued an order approving the withdrawal of
the answer to the complaint.
On May 5, 1978, counsel for General Counsel filed
directly with the Board a motion to transfer the case
to and continue the proceedings before the Board
and for a summary judgment, with attachments. The
General Counsel moved: That the Board find that all
factual allegations of the complaint, including those
in paragraphs I through 11 inclusive, be deemed to
be admitted to be true, as Respondent withdrew its
answer to the complaint, thereby leaving no dispute
with respect to any relevant or material facts which
necessitate a hearing or an Administrative L.au
Judge's Decision; that the matter be transferred to
the Board for decision and ruling as Respondent's
withdrawal of its answer is sufficient to establish a
violation; and that the Board issue a Decision and
Order finding Respondent violated Section 8(a)( I) of
the National Labor Relations Act, as amended.
Thereafter, on May 16, 1978, the Board issued an
order transferring the proceeding to the Board and
Notice To Show Cause why the General Counsel's
IMAGE ARTS, INC.
Motion for Summary Judgment should not be grant-
ed.
Pursuant to the provisions of Section 3(h) of the
National Labor Relations Act, as amended, the Na-
tional labor Relations Board has delegated its au-
thoritv in this proceeding to a three-member panel.
Upon the entire record in this proceeding, the
Board makes the following:
Ruling on the Motion for Summary Judgment
Section 102.20 of the Board's Rules and Regula-
tions, Series 8, as amended, provides as follows:
The respondent shall, within 10 days from the
service of the complaint, file an answer thereto.
The respondent shall specifically admit, deny, or
explain each of the facts alleged in the com-
plaint, unless the respondent is without knowl-
edge, in which case the respondent shall so state.
such statement operating as a denial. All allega-
tions in the complaint, if no answer is filed, or
an,, allegation in the complaint not specifically
denied or explained in an answer filed, unless
the respondent shall state in the answer that he
is without knowledge, shall be deemed to be ad-
mitted to be true and shall be so found by the
Board, unless Sood cause to the contrary is
shovwsn.
The complaint and notice of hearing served on Re-
spondent specifically stated that unless an answer
was filed to the complaint within 10 days from the
service thereof "all of the allegations in the Com-
plaint shall be deemed to be admitted true and ma!
be so found by the Board." Although Respondent
filed a timely answer, it subsequently filed a motion
requesting withdrawal of its answer and the with-
dra\wal was granted by the Regional Director in his
order of April 25, 1978.1 The withdrawal of an an-
swer necessarily has the same effect as a respondent's
failure to file an answer. 2
Since Respondent has withdrawn its answver, the
allegations of the compalint are deemed to be admit-
ted to be true and are so found to be true in accor-
dance with the Board's Rules and Regulations. Ac-
cordingly. we grant the General Counsel's Motion
for SIuim1iar .ludmnlent. 3
I*.I.t.Jlcd to e t I i,.1,tiot for SLtlIrtt rF .ttudinzent Ihe .,IIc5 tiTl
x.t of
,hich sta nd utli lll tll\ terlt. i hb Ihct filuc ito resp,,nd to the Notice 1J,
Show ( ;lUc. rc, '1re dC Ithc lettter . thdrall[g Resp.nidcntf . .Ins.cl and
Ihe order .r.tntil t ll h rti:.,.ll of the lnt,cr
' t ',4/, P'lp ./m ( ,q/' unlt. 202 Ni RB1 234 'q(117: . HA, c rt;
5,0' In, , I 199 NI R B 411 i ''2N
Ixlal., 1, / , itm m
1
[rrl r n,,, /)Rntbt r i eon '.[ I & I /. ,m'' . In, 211
Ni RB S(t- i t1'4)
236 NLRB No. 160
1229
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
On the basis of the entire record, the Board makes
the following:
FIN GSIN( OF FA(CT
I, IHE BUSINE SS OF RESPONDENT
At all times material herein, Respondent, a Michi-
gan corporation, has maintained its principal office
and place of business at 919 Filley Street, Lansing,
Michigan, and has at all times material herein en-
gaged in providing advertising, photocomposition,
color separation, and related services to its custom-
ers. Respondent's business, located at Lansing,
Michigan, is the only facility involved in this pro-
ceeding.
During the fiscal year ending March 31, 1977,
which period is representative of its operations dur-
ing all times material herein, Respondent, in the
course and conduct of its business operations, per-
formed services in and out of its Lansing, Michigan,
place of business valued collectively in excess of
$50,000 for Tri-Kraft, Inc., and Malley Lithogra-
phers, Inc., both of which are located in the State of
Michigan and annually purchased goods and ser-
vices valued in excess of $50,000 directly from out-
side the State of Michigan and caused them to be
shipped to its Michigan facility.
We find, on the basis of the foregoing. that Re-
spondent is, and has been at all times material
herein, an employer engaged in commerce within the
meaning of Section 2(6) and (7) of the Act, and that
it will effectuate the policies of the Act to assert juris-
diction herein.
II. lHE UNFAIR IABOR PRA( II( ES
At all times material herein, the following named
persons occupied the positions indicated, and have
been and are now supervisors and agents of Respon-
dent within the meaning of Section 2(11) of the Act:
Peter Taylor, president, and Susan Hammond, super-
visor of the composition department.
On or about June 14, 1977, Respondent, through
its agent, Susan Hammond, at its Lansing, Michigan,
facility, discharged Sandra Kay Willis because she
engaged in protected concerted activities for her own
and other employees' mutual aid and protection, in-
cluding arranging an employee meeting for the pur-
pose of discussing wages, hours, and working condi-
tions.
Accordingly, we find that, by the aforesaid acts
and conduct, Respondent did interfere with, restrain,
and coerce and is interfering with, restraining. and
coercing its employees in the exercise of the rights
guaranteed them in Section 7 of the Act, and thereby
did engage in, and is engaging in, unfair labor prac-
tices affecting commerce within the meaning of Sec-
tion 8(a)(1) and Section 2(6) and (7) of the Act.
111 I lE EIlFECTI OF THE UNFAIR LABOR PRACTICES UPON
COMMERCE
The activities of Respondent, set forth in section
11, above, occurring in connection with the opera-
tions described in section I, above, have a close, inti-
mate, and substantial relationship to trade, traffic,
and commerce among the several States and tend to
lead to labor disputes burdening and obstructing
commerce and the free flow of commerce.
IV. THE REMEDY
1laving found that Respondent has engaged in and
is engaging in unfair labor practices within the mean-
ing of Section 8(a)(l) of the Act, we shall order that it
cease and desist therefrom and take certain affirma-
tive action designed to effectuate the policies of the
Act.
Specifically, having found that Respondent dis-
criminatorily discharged employee Sandra Kay Wil-
lis, we shall order Respondent to offer her immediate
and full reinstatement to her former job, or, if that
job no longer exists, to a substantially equivalent po-
sition, without prejudice to her seniority and other
rights and privileges, and make her whole for any
loss of earnings she may have suffered by payment to
her of a sum of money equal to the amount she nor-
mally would have earned as wages from the date of
her discharge to the date of Respondent's offer of
reinstatement, less net interim earnings. Backpay is
to be computed in the manner prescribed in F. W.
Woolworth Company. 90 NLRB 289 (1950), with in-
terest thereon to be computed in the manner pre-
scribed in Florida Steel Corporation, 231 NLRB 651
(1977). 4
The Board, upon the basis of the foregoing facts
and the entire record, makes the following:
CONiCLUSIONS OF LAW
1. Image Arts, Inc., a wholly owned subsidiary of
Maxco, Inc., is an employer engaged in commerce
within the meaning of Section 2(6) and (7) of the Act.
2. Peter Taylor and Susan Hammond are agents
of Respondent within the meaning of Section 2(11)
of the Act.
3. By the acts and conduct described in section II,
above, Respondent has interfered with, restrained,
4 See. generallI). /ws PlumbinX & Heating (o. 138 NLRB 716 (1962).
1230
IMAGE ARTS, INC.
and coerced its employees in the exercise of the rights
guaranteed in Section 7 of the Act. and thereby has
engaged in, and is engaging in, unfair labor practices
within the meaning of Section 8(a)(l) of the Act.
4. The aforesaid unfair labor practices are unfair
labor practices affecting commerce within the mean-
ing of Section 2(6) and (7) of the Act.
ORDER
Pursuant to Section 10(c) of the National Labor
Relations Act, as amended, the National Labor Re-
lations Board hereby orders that the Respondent,
Image Arts, Inc., a wholly owned subsidiary of Max-
co, Inc., Lansing, Michigan, its officers, agents, suc-
cessors, and assigns, shall:
1. Cease and desist from:
(a) Discharging or otherwise discriminating in re-
gard to hire or tenure of employment of any of its
employees because they engage in concerted protect-
ed activities for their own or other employees' mutual
aid and protection including arranging an employee
meeting for the purpose of discussing wages, hours,
and working conditions.
(b) In any other manner interfering with, restrain-
ing, or coercing employees in the exercise of rights
guaranteed them in Section 7 of the Act.
2. Take the following affirmative action which the
Board finds will effectuate the policies of the Act:
(a) Offer Sandra Kay Willis immediate and full
reinstatement to her former job, or, if that job no
longer exists, to a substantially equivalent position,
without prejudice to her seniority or other rights and
privileges, and make her whole for any loss of pay
she may have suffered by reason of the discrimina-
tion against her in the manner set forth in the section
herein entitled "The Remedy."
(b) Preserve and, upon request, make available to
the Board or its agents. for examination and copying,
all payroll records, social security payment records,
timecards, personnel records and reports, and all
other records necessary to analyze and compute the
amount of backpay due under the terms of this Or-
der.
(c) Post at its Lansing, Michigan. plant copies of
the attached notice marked "Appendix." 5 Copies of
said notice, on forms provided by the Regional Di-
rector for Region 7, after being duly signed by Re-
spondent's representative, shall be posted by Re-
spondent immediately upon receipt thereof. and be
maintained by it for 60 consecutive days thereafter,
in conspicuous places, including all places where no-
tices to employees are customarily posted. Reason-
able steps shall be taken by Respondent to insure
that said notices are not altered, defaced, or covered
by any other material.
(d) Notify the Regional Director for Region 7, in
writing, within 20 days from the date of this Order.
what steps Respondent has taken to comply here-
with.
IIn the esent that this Order is enforced h, a Judgment of a Lnitred
States ( ourl of Appeals. the words in the notice reading "Posted by Order
of the Nattional I.ahor Relations Board" shall read "Posted Pursuant to a
Judgment of the United States Court of Appeals Enforcing an Order of the
National L ahor Relations Board."
APPENDIX
NOTICE To EMPI OYEFS
POSTED BY ORDER OF THE
NATIONAL LABOR RFI ATIONS BOARD
An Agency of the United States Government
WE WILL. NOT discharge or otherwise discrimi-
nate in regard to hire or tenure of employment
of any of our employees because they engage in
protected concerted activities for their own or
other employees' mutual aid and protection in-
cluding arranging an employee meeting for the
purpose of discussing wages, hours, and working
conditions.
WE WILL NOT in any other manner interfere
with, restrain, or coerce our employees in the
exercise of their rights guaranteed them in Sec-
tion 7 of the Act.
WE WILL offer Sandra Kay Willis immediate
and full reinstatement to her former job, or, if
that job no longer exists, to a substantially
equivalent position, without prejudice to her se-
niority or other rights and privileges, and make
her whole for any loss of pay she may have suf-
fered by reason of the discrimination against
her, with interest.
IMAGE ARTS INC., A WHOLLY OWN EI) SU BSI-
DIARY OF MAXCO. INC.
1231