Intl. Assn. of Iron Workers, Local 377Download PDFNational Labor Relations Board - Board DecisionsJan 31, 1974208 N.L.R.B. 848 (N.L.R.B. 1974) Copy Citation 848 DECISIONS OF NATIONAL LABOR RELATIONS BOARD International Association of Bridge , Structural and Ornamental Reinforced Iron Workers , Riggers & Machinery Movers, Local Union 377, AFL-CIO (Judson Steel Corporation ) and Richard J. Bet- tencourt . Case 20-CB-2211 January 31, 1974 SUPPLEMENTAL DECISION AND ORDER BY CHAIRMAN MILLER AND MEMBERS FANNING AND JENKINS On October 4, 1973, Administrative Law Judge James T. Rasbury issued the attached Supplemental Decision in this proceeding. Thereafter, Respondent filed exceptions and a supporting brief, and counsel for the General Counsel filed a brief in support of the Administrative Law Judge's Supplemental Decision. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its authority in this proceeding to a three-member panel. The Board has considered the record and the attached Decision in light of the exceptions and briefs and has decided to affirm the rulings, findings, and conclusions of the Administrative Law Judge and to adopt his recommended Order. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended , the National Labor Relations Board adopts as its Order the recommend- ed Order of the Administrative Law Judge and hereby orders that Respondent , International Associ- ation of Bridge , Structural and Ornamental Rein- forced Iron Workers , Riggers & Machinery Movers, Local Union 377, AFL-CIO, Emeryville , California, its officers, agents, and representatives , shall take the action set forth in the said recommended Order. SUPPLEMENTAL DECISION BACKPAY PROCEEDINGS STATEMENT OF THE CASE JAMES T. RASBURY, Administrative Law Judge: This matter was heard in San Francisco, California, on August 15, 1973. The backpay specification and notice of hearing was dated July 2, 1973, issued pursuant to a Decision and Order of the Board dated March 18, 1971,1 enforced by a judgment of the United States Court of Appeals for the Ninth Circuit dated February 17, 1972.2 The Board's Decision and Order as enforced by the circuit court i 189 NLRB 68. 2 454 F 2d 1175 directed the Respondent to make Richard J. Bettencourt whole for any loss of pay which he may have suffered as a result of Respondent's discrimination against him, "by payment to him of a sum of money equal to that which he would have earned as wages from the date of the discrimination against him to the date of his reinstatement or the date Respondent notifies Judson Steel Corporation that it has no objection to his reinstatement to any existing or future jobs or projects of said Employer, whichever is the earlier date," said backpay to be computed in a manner consistent with the Board's policies as set out in F. W. Woolworth Company, 90 NLRB 289, and Isis Plumbing & Heating Co., 138 NLRB 716. Respondent's answer admitted the backpay period commenced April 23, 1970 (which is an error; the backpay period is to commence April 28, 1970), but contended that the backpay period should end on September 22, 1970, instead of August 1, 1971, as contended by General Counsel; questioned the formula proposed by General Counsel and contended the only, " legitimate , reasonable and appropriate method of determining Bettencourt's backpay is to determine who was his replacement and the amount of wages paid to his replacement"; denied that Bettencourt would have worked the hours set forth by General Counsel; contended that Bettencourt failed to mitigate damages by applying for work and seeking employment elsewhere; and after a general denial of General Counsel's conclusionary allegations, alleged "that no interest should be due Bettencourt because the National Labor Relations Board is responsible for not processing the backpay proceedings and did not produce a specifica- tion until July 2, 1973." All parties were afforded full opportunity to examine and cross-examine witnesses, to introduce evidence, to present arguments and thereafter to file briefs. A helpful brief was filed by the General Counsel.* Upon my observations of the witnesses, and careful consideration of all the proceedings, testimony, exhibits, and the entire record in the case, I make the following: FINDINGS AND CONCLUSIONS A. Background and Pleadings The General Counsel contends that the total amount of backpay due Bettencourt from Respondent is $14,154 plus interest and that Respondent should be required to pay to the pension trust fund on behalf of Bettencourt the amount of $794 which is the sum that would have been paid by the Employer covering the same period of time and for the hours of work claimed. This sum of money was determined by examining the pay records of field ironworkers employed by Judson Steel Corporation in every quarter of the alleged backpay penod (April 28, 1970, to August 1, 1971), after deleting foremen, superintendents, and appren- On the same date this Supplemental Decision was completed and ready for release. it came to my attention that Respondent's brief in this matter had been timely, but incorrectly, tiled with Region 20 of the Board A copy of the brief was promptly obtained and carefully read and considered While the brief would have been helpful and time-saving in the preparation of this Decision, nevertheless, I find nothing contained therein which has not been carefully considered and evaluated through my own search of the record and the relevant case law 208 NLRB No. 135 INTL. ASSN. OF IRON WORKERS , LOCAL 377 tices, and after further deleting from the remaining list the highest five wage earners and the lowest five wage earners during this period of time. The remaining representative list of ironworkers numbered 26. At the time of the wrongful discharge Bettencourt was a field ironworker. The average number of hours worked in each calendar quarter by the representative list of employees was then multiplied by the applicable hourly rate as set forth in the 849 Union's labor agreement with the Judson Steel Corpora- tion. The resulting figure provided the gross backpay due Bettencourt. Net interim earnings by Bettencourt, less expenses incurred in seeking employment, was then subtracted from the gross backpay on a quarterly basis, resulting in a net backpay for each quarter during the alleged backpay period. The chart shown below reflects the net backpay due Bettencourt, as claimed by General Counsel, for each quarter during the backpay period: HOURLY GROSS INTERIM NET DATES HOURS RATE RACKPAY EARNINGS EXPENSES BACKPAY 4/28/70-- 6/20/70 291 $ 6.37 $1,854 None None 81,854 7/1/70-- 9/30/70 248 6.37 263 7.30 3,499 None None 3,499 10/1/70-- 12/31/70 322 7.30 2,351 None None 2,351 539 .25 Vacation pay as provided 263 .50 266 in contract covering 266 4/28--9/30/70 11/1/71-- 3/31/71 53 7.30 347 7.98 4-1/2 15.96 3,228 $ 452 $63 2,839 4/1/71-- 6/30/71 452 7.98 1-1/2 15.96 3,631 1,210 None 2,421 7/1/71-- 7/31/71 89 7.98 710 430 10 290 1,269 .50 634 Vacation pay as provided in contract covering 634 10/1/70-9/31/71 Total Net Backpay 514,154 850 DECISIONS OF NATIONAL LABOR RELATIONS BOARD In addition to the sum shown above, the General Counsel also requested that Respondent pay into the pension trust fund on behalf of Bettencourt the sum of $794. This sum was calculated as follows: PERIOD HOURS RATE TOTAL 4/28/70-- 8/15/70 539 32-1/3C per hour $175 8/16/70-- 11/5/71 638 37-1/20, per hour 239 11/6/71-- 7/31/71 894 42-1/3c per hour 380 Total Due Trust Fund $794 B. ` Testimony and Evidence Alfred Whitacre, Jr., the paymaster for Judson Steel Corporation at Emeryville, California, credibly testified that he was familiar with General Counsel's Exhibit 5 and identified it as a portion of a quarterly report submitted by Judson Steel to the United States Treasury reflecting the taxable wages under the Federal Insurance Contribution Act for each employee shown. That portion shown pertains to the division of the company that employs field ironworkers. General Counsel's Exhibit 4 was prepared from the company records and data reflected in General Counsel's Exhibit 5 and reveals the names and earnings of field iron workers who worked during the alleged backpay period. General Counsel's Exhibits 6 and 7 were prepared under the direction of Whitacre and indicate the number of hours worked each month by each of the field ironworkers that worked each quarter during the alleged backpay period. (The 26 employees on the representative list referred to above.) General Counsel's Exhibit 3, represented by counsel to have been prepared by the compliance officer for the Regional Office from the company records provided to him, indicates the hours worked by each of the 26 employees by month; and the average hours worked each quarter by the representative group of employees. The average quarterly hour figure is then multiplied by the applicable rate to produce an average quarterly earning figure for the representative group. The pension trust fund calculations as well as the accrued vacation pay were also shown on General Counsel's Exhibit 3. I have carefully studied and checked the information contained in General Counsel's Exhibits 3 through 7 and considered same in light of Whitacre's testimony and herewith find the support data for the specification to be reasonable and accurate. Bettencourt credibly testified to the receipt of his copy of the Union's letter to Judson Steel advising that the Union had no objection to the employment of Bettencourt by Judson Steel. (G.C. Exh. 8) The letter was dated July 29, 1971, and Bettencourt was rehired by Judson Steel on August 1 , 1971. Bettencourt testified that he sought work of any type during the period between April 28, 1970, and August 1, 1971, but only managed to work as follows. From February 4 to March 12, 1971 as a custodian for Olsten of Santa Clara County, during which time he earned $352. The job was a temporary vacation relief job and he was released when the regular employee returned. Betten- court testified that he worked for Performance , Speed and Auto Center from March 22 to July 17, 1971, earning a total of $1,310 ($ 100 of which was credited to the first quarter of 1971). This job Bettencourt quit because the company's paycheck was not honored. (The uncontrovert- ed testimony revealed that 2 weeks after Bettencourt quit, the company went out of business .) Thereafter , Betten- court worked for Davis Steel Company earning $100 a week , but only worked I week because he received the letter from the Union (G.C. Exh. 8) and then he returned to work for Judson Steel. The net interim earnings for each quarter of the alleged backpay period is shown in the appendix attached to the backpay specification and notice of hearing served on Respondent (G.C. Exh 2(c)). The net interim earnings column shown in the appendix makes provision for $63 "seeking work expense" during the first quarter of 1971 and $10 "seeking work expense " for the third quarter of 1971. No claim was made for "seeking work expense" during the second, third, or fourth quarters of 1970 or the second quarter of 1971. While the total money claimed as "seeking work expense" is a modest one, it will not be allowed. The testimony by Bettencourt was that this money was paid to go back and forth to work . Had Bettencourt continued to work for Judsc Ti Steel, he would have had daily commuting expenses that would have been equal to or greater than those expenses claimed Interim expenses to be deductible from interim earnings must be expenses incurred in seeking and/or finding employment and such additional expenses associated with the interim job as would not ordinarily have been incurred had the individual continued working at his regular job. While it might be reasonable to assume that Bettencourt had incurred substantial expense in seeking interim employment, the record is barren of proof. The amounts claimed are, by Bettencourt 's own testimony , nothing more than expenses incurred in going to and from work which are not in excess of normal commuting expenses that he would otherwise have been required to bear. Interim expenses are to be considered , but they must be proven by something more than appears in this record. C. Respondent's Defenses Mr. Fenton , the business representative for Respon- dent, testified that during the initial trial of this matter (September 22, 1970) he advised Mr. James Harris, superintendent for Judson Steel , and the attorney for the INTL. ASSN. OF IRON WORKERS, LOCAL 377 National Labor Relations Board, that he had no objection to clearing Bettencourt for work . He testified he did this at his attorney's suggestion . There was no proof offered to indicate that either Harris or the Board attorney either heard or responded in any manner to the offer. Mr. Michael Roger, an associate of Respondent's counsel, testified that he was present during the initial trial and recalled that at one point Respondent's counsel, Mr. Van Bourg , advised the National Labor Relations Board attorney that if Bettencourt "wants to go to work, all he has to do then is to go down and clear out . Nobody is going to stop him." On the basis of this testimony Respondent contends that the backpay period should only run from April 28 to September 22, 1970. While such oral statements may very well have been made during the heat of the trial, they hardly rise to the level of a bona fide offer to the necessary parties that would permit Bettencourt to return to work. Moreover, the current backpay hearing is a direct result of the Board's decision, as enforced by the circuit court, which ordered notification by Respondent to Judson Steel in writing. The same decisions ordered that the backpay be tolled on the date Bettencourt "is reinstated by Judson Steel Corporation or the date Respondent notifies Judson Steel Corporation that it has no objection to his reinstate-. ment." (And, as indicated earlier herein, notification was required to be in writing .) Respondent's argument that an earlier offer of "no objections to reinstatement" is rejected. The Board requires clear unequivocal action by the Union and will not permit it to escape liability by virtue of a token act ;3 Respondent questioned the General Counsel's formula and argued that the only reasonable and appropriate method of determining Bettencourt's backpay was to determine Bettencourt's replacement and ascertain the wages and period of time worked by the replacement. The Board considered this argument in Carpenters Union Local 180,4 and rejected it. In that case the Board stated: The Union argues that, in place of the "representative employee" backpay formula used by the General Counsel, a "counterpart" formula should be used. Under the Union's formula, backpay should be based on the hours worked by the employee who obtained the specific job which would have gone to the millwright had the Union not discriminated against him. The employee who obtained the job which otherwise would have gone to the millwright worked from August 30, 1965 to October 4, and the Union argues that since there is no evidence that he was discharged or quit, it must be assumed that he was laid off for lack of work. ... The General Counsel has established that during the backpay period millwright work was being performed on the project, and this is prima facie evidence that the millwright in question would have worked had he not been discriminated against. Once discrimination has been found the Union has the burden of proof with regard to its contention that the employee 3 Reinforcing Iron Workers, Local Union No. 426 (Tryco Steel Corpora- tion), 192 NLRB 97., 4 Carpenters Union Local 180, United Brotherhood of Carpenters and 851 discriminated against would have been separatedfrom his employment at some later date. [Emphasis supplied.] Administrative Law Judge Corenman's decision, which was approved without change by the Board, contained the following language : "General Superintendent Harris who authorized the hiring of Bettencourt testified credibly and without contradiction that Bettencourt was one of approxi- mately 100 iron workers comprising his permanent work force, and that he retained Bettencourt in his employ from the date of his hire on September 12, 1969 , to the date of his discharge , at the Union's demand, on April 28, 1970. Harris further testified credibly and without contradiction that Bettencourt was one of his best workers, testifying additionally 'I would say he would be in the top of what I've seen, and I 've seen a lot of men in my time .' " In light of this language in the original decision it cannot be said that the formula selected by the General Counsel is either unreasonable or unfair to the Respondent . The specifica- tion . has been prepared on the basis of average hours worked by a reasonable and representative group of the permanent field iron workers employed by Judson Steel during the backpay period. In an opening statement Respondent . indicated that it felt the completion date of the particular construction job being worked on at the time of the wrongful discharge should be its terminal date of the backpay period. This is not an unsound argument and, had it been supported by some evidence that Judson Steel always terminated all of its employees upon the completion of a particular construction job, might very well have raised a strong doubt as to the reasonableness of the specification. However, in light of the above-quoted language from Judge Corenman 's decision relating to Bettencourt being a part of the permanent work force and in the absence of any proof to the contrary, I find the specification to be reasonable and accurate. Respondent's arguments that Bettencourt did not ade- quately seek other work to mitigate damages during the backpay period and in particular that Bettencourt was at fault in not making application for the apprenticeship program is rejected . There was no proof offered that Bettencourt would have been employed by anyone even if he had enrolled in the apprenticeship program . Nor is he required to accept work as an apprentice after having worked as a journeyman. I find that Bettencourt made a reasonable and diligent search for work during the backpay period and all interim monies earned have been reported and considered in the specification. Conclusions After a careful analysis of all the evidence and a consideration of Respondent's arguments as culled from the record , I find and conclude that Richard J. Bettencourt made reasonable efforts to find employment during the backpay period, which I find to run from April 28, 1970, to Joiners of America, AFL-CIO (Golden State Runway and Engineering Company), 175 NLRB 927. 852 DECISIONS OF NATIONAL LABOR RELATIONS BOARD August 1, 1971, and did not wilfully incur the losses for which . reimbursement is sought .5 Making a worker whole for losses suffered because - of an unfair labor practice is part of the vindication of the public policy which the Board eaforces.6 The record is void of any evidence that would provide a basis for ,disputing the computations of the specification prepared by the General Counsel , except for the interim work-related expenses which I have heretofore indicated will rat be . allowed . I therefore find that the sum due and owing to Richard J . Bettencourt by Respondent is $14,081 with interest at 6 percent per annum less the required Federal and/or state tax withholdings . Respondent is also directed to pay the sum of $794 to the applicable pension trust fund with directions to the trustees of said fund to credit said $794 to the account of Richard J.'Bettencourt, together with any interest or applicable penalties for late payment claimed and not waived by the trust fund. Upon the foregoing findings of fact, conclusions of law, and the entire record , and pursuant to Section 10(c) of the Act, there is hereby issued the following recommended: ORDER7 Respondent, International Association of Bridge , Struc- tural and Ornamental Reinforced Iron Workers, Riggers and Machinery Movers, Local 377, its officers, agents, assigns, and successors , shall pay to Richard J. Bettencourt or to his pension fund trust account the following sums of net backpay: (1) To Bettencourt directly , the sum of $14,081 with interest at 6 percent per annum calculated as provided in F. W. Woolworth Company, 90 NLRB 289, and Isis Plumbing & Heating Co., 138 NLRB 716. (2) To the pension fund trust account to be credited to Richard J. Bettencourt the sum of $794 plus any interest or applicable penalties for' late payment claimed and not waived by the trustees of said fund, Said sums of money to be less any required Federal, state, or local taxes required to be deducted and paid to the appropriate authorities. S Cf. N.LR.B. v. Miami Coca-Cola Bottling Company, 360 F.2d 569 (C.A. ad supplemental Order herein shall, as provided in Sec . 102.48 of the said 5, 1966). Rules and Regulations, be adopted by the Board and become its findings, B Phelps-Dodge Corporation v. N.LR.B., 313 U.S. 177. conclusions, and order, and all objections thereto shah be deemed waived r In the event no exceptions are filed as provided by Sec. 102.46 of the for all purposes. Board's Rules and Regulations , the findings, conclusions, and recommend- Copy with citationCopy as parenthetical citation