Jeffs Electric, LLCDownload PDFNational Labor Relations Board - Administrative Judge OpinionsSep 17, 200734-CA-011371 (N.L.R.B. Sep. 17, 2007) Copy Citation JD(NY)-41-07 Brooklyn, CT UNITED STATES OF AMERICA BEFORE THE NATIONAL LABOR RELATIONS BOARD DIVISION OF JUDGES NEW YORK BRANCH OFFICE JEFFS ELECTRIC, LLC and Case Nos. 34-CA-11371 34-CA-11398 INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL 35, AFL-CIO Terri A. Craig, Esq., Hartford, CT, for the General Counsel. Robert L. Skelley, Esq., Danielson, CT, for the Respondent. Thomas W. Meiklejohn, Esq. (Livingston, Adler, Pulda, Meiklejohn & Kelly, P.C.), Hartford, CT, for the Charging Party. SUPPLEMENTAL DECISION STEVEN DAVIS, Administrative Law Judge: On May 12, 2006, Administrative Law Judge Joel P. Biblowitz issued a decision in which he recommended, in material part, that Jeffs Electric, LLC (Respondent) offer full reinstatement to James Bramanti, Benjamin Holden, Christopher Lacy, Harry Richardson, Joshua Solomonson and Stephen Zajac to their former jobs, or if those jobs no longer exist, to substantially equivalent positions. It was also ordered that the Respondent make them whole for any loss of earnings and other benefits suffered as a result of their discharges, less any interim earnings. JD(NY)-21-06. The Order also required the Respondent to preserve and, within 14 days of a request, provide all payroll records, social security payment records, timecards, personnel records and reports, and all other records necessary to analyze the amount of backpay due under the terms of the Order. No exceptions were filed to Judge Biblowitz’s recommended Order, and on July 10, 2006, the Board issued its Order adopting his findings and conclusions and requiring the Respondent and its officers, agents, successors and assigns to take the actions set forth in his recommended Order. On November 30, 2006, the Second Circuit Court of Appeals enforced the Board’s Order. The Court also issued a broad protective restraining order against the Respondent enjoining it essentially from disbursing any funds unless security of $113,063.98 is deposited with the Court. It was also directed that until the Respondent provides such security, any company owing money to the Respondent must deposit such funds with the Court. The Court’s Order states that it was “issued as mandate January 23, 2007.” On March 30, 2007, the Regional Director issued a Compliance Specification which stated that the backpay period for the six discriminatees begins on December 27, 2005, the date of their termination, and ends when the Respondent offers them reinstatement. The total backpay claimed was $237,963 which was calculated through January 31, 2007, but with further backpay accruing until the Respondent offered reinstatement to the six men. Thereafter, on June 13, 2007, the Regional Director issued a Notice of Intent to Amend the Specification, and subsequently issued an Amended Compliance Specification. The Amended Specification stated that the backpay period for each discriminatee ran from JD(NY)-41-07 5 10 15 20 25 30 35 40 45 50 2 December 27, 2005 to May 26, 2006, the date that electrical work on the Dick’s Sporting Goods project ended. The reduced total backpay claimed was $104,266. At the hearing, the Respondent stated that it believed that the backpay period ended prior to May 26, 2006 but had no other objection to the Amended Specification. On April 23, 2007, the Respondent submitted a Response to the Specification, which will be discussed below. On June 25, 2007, a hearing was held before me in Hartford, CT.1 On the entire record, including my observation of the demeanor of the witnesses, and after considering the brief filed by the General Counsel, I make the following: Findings of Fact I. The Backpay Period A. The General Counsel’s Evidence The Amended Specification2 sets forth that the backpay period begins on December 27, 2005, the date the six employees were unlawfully terminated, and ends on May 26, 2006, the date that the job on which they were working, the Dick’s Sporting Goods project, ended. Nestor Diaz, the compliance officer for the Regional Office, based the May 26, 2006 date on a letter he received from Bowdoin Construction Corp., the general contractor on the Dick’s project. The letter stated that after Bowdoin terminated the Respondent’s contract as of December 30, 2005, a replacement contractor, Professional Electric, performed work on the project until the week ending June 3, 2006. Diaz stated that in an effort to be fair to the Respondent, he chose the week prior to June 3 as the date that the Respondent would have finished its work at the jobsite. Thus, May 26 was selected. Indeed, Henry Jeffs, Jr., (Jeffs) the Respondent’s owner testified that the Respondent’s projected finish date was in late May with two to three weeks thereafter of setup work, and further testified that he believed that Professional Electric ended its work in late May. John Lurate, a Union official who is its main organizer, testified that he became aware that the Respondent was beginning a large electrical installation job at Dick’s Sporting Goods in Manchester, Connecticut. He believed that because of the size of the project and the few workers then employed by the Respondent, it would need a larger workforce. Lurate therefore saw a good opportunity to have Union members apply and be hired by the Respondent with the goal of organizing the shop from within as covert organizers, commonly called “salts.” He expected the campaign to last at least six months. Lurate asked Union member Benjamin Holden to apply for work with the Respondent. Holden applied and was hired on July 25, 2005. He first worked at other projects and in October, he was transferred to work at the Dick’s job. Holden reported to Lurate that he believed that the Respondent would have to hire more workers to complete the job. Lurate asked six 1 Following the close of the hearing I officially received G.C. Exhibit 19 in evidence. The court reporting service notified the parties and I that G.C. Exhibit 19 had not been officially received in evidence. After a review of the record I advised all parties that inasmuch as the exhibit had been offered in evidence to which there was no objection, I had inadvertently failed to state that it was received in evidence and accordingly received it in evidence. 2 All references hereafter to the Specification shall refer to the Amended Specification. JD(NY)-41-07 5 10 15 20 25 30 35 40 45 50 3 other Union members to apply for work and they were also hired.3 Their dates of hire are as follows: Lacy - November 7; Bellomo - November 14; Bramanti - December 5; Solomonson – December 12; Richardson and Zajac - December 19.4 Lurate testified that there was severe unemployment among Union members in December, 2005. Of the total Union membership of 570, nearly 405 were out of work – some not having worked for 12 to 18 months. Lurate chose the Union members he referred to work at the Respondent from those in the bottom half of the Union’s out-of-work list who could not expect to be referred to Union contractors for at least six months. Employee Holden was in the bottom half on the out-of-work list, and estimated that he would not be referred to a Union contractor for about one year. Lurate asked each of the seven employees whether they were interested in organizing a non-union contractor, and whether they were willing to stay for the duration of the campaign, whether by recognition or election with the eventual goal of obtaining a signed contract. Lurate stated that if the organizer did not agree to those conditions he would not be asked to apply for work. Each worker agreed to the conditions and in fact they remained employed until they were discharged. Following their discharges, four of the employees obtained jobs with other non-union contractors the Union sought to organize. Lurate testified that the Union has used the same strategy of having organizers obtain work at non-union contractors in other organizing campaigns it has conducted. For example, the Union succeeded in having four covert organizers hired at Scobar Electrical Contractors during the period January through October, 2006. Following his discharge by the Respondent, Holden worked at Scobar from May, 2006 until the campaign was abandoned in October due to lack of interest in organization by the workforce. On December 21, 2005, Lurate held a meeting with the seven organizers at which they signed authorization cards in behalf of the Union. He told them that he expected them to remain employed until the end of the campaign and they agreed. Lurate told them that of Respondent’s 15 employees, he believed that since it would be found that supervisor Chris Lord and the two sons of the owner would be ineligible to vote, more than 50% of the eligible employees would vote for the Union in an election. On December 27, Holden presented a letter to the Respondent which named the six employees as organizers. They were fired that day. On March 24, 2006, the Union filed a petition with the Board, an election was held and on August 21, 2006, the Union was certified as the exclusive collective-bargaining representative of the employees of the Respondent. B. The Respondent’s Arguments The Respondent asserts that it was terminated from the Dick’s project through no fault or action of its own on December 30, 2005 and therefore it would not have continued to work on the project through May 26, 2006. Jeffs testified that on December 27, general contractor Bowdoin Construction Corp. directed the Respondent’s supervisor, Chris Lord, to remove the six employees from the jobsite because he did not want to have any “labor problems” on the jobsite. Lord then fired the workers. Jeffs testified that he had no advance warning of Bowdoin’s order and no further 3 The Union succeeded in having seven organizers hired by the Respondent. Only the six employees named above are the subject of this proceeding since the seventh, Dave Bellomo, remained covert and was not unlawfully discharged. 4 These dates are from the Respondent’s records. JD(NY)-41-07 5 10 15 20 25 30 35 40 45 50 4 details were provided. I cannot credit this testimony since it is contrary to the Respondent’s position at the underlying trial that it fired the six employees for cause, and it is also contrary to Judge Biblowitz’s unappealed finding that the Respondent fired the six workers on December 27 immediately after they presented a letter from the Union to Lord naming them as union organizers. Matters decided in the Board’s decision underlying this compliance proceeding and enforced by a United States court of appeals are settled matters and may not be relitigated here. Transport Service Co, 314 NLRB 458, 459 (1994). In the underlying case, the Respondent did not assert a defense that Bowdoin directed the discharge of the workers. Rather, it argued that they were fired for cause by the Respondent because they failed to provide certain documentation. One day after their discharges, Bowdoin sent a letter to the Respondent terminating its contract effective December 30 because the Respondent violated its contract by failing to “provide sufficient number of qualified workers to complete the project.” The Respondent’s contract provided that if the contractor does not “supply a sufficient number of properly skilled employees….” Its contract may be terminated. Clearly, the Respondent’s contract was terminated because it reduced its employee complement of 15 to 7 and, in Bowdoin’s opinion, could not complete the project with so few workers. It is obvious that but for the Respondent’s unlawful conduct in discharging the six workers it would have continued to perform pursuant to its contract and would have completed its work at the Dick’s project on about May 26, 2006. There was much evidence concerning whether the Respondent performed work at other projects after December 30, 2005. Counsel for the General Counsel claims only that the Respondent would have continued to work at the Dick’s project until May 26, 2006 and that the six discriminatees would have continued to work there until the end of that job. She does not claim that the Respondent would have worked at other projects after May 26, or that the six discriminatees would have been transferred to such jobs following the conclusion of the Dick’s job. Accordingly, such evidence is irrelevant and need not be discussed. To the extent that the Respondent claims that it cannot currently afford to pay its backpay liability because, as set forth in its Answer to the Specification, it has no employees, no new contracts, and no income from work performed since December 27, 2005, that assertion is not a defense to this proceeding. “It is well settled that the issue in a backpay proceeding is the amount due and not a respondent’s ability to pay.” Fayard Moving & Transportation, 300 NLRB 209, 210 (1990). Moreover, in contradicting its Answer, according to Jeffs’ testimony, the Respondent continued work on projects after December 27, 2005 for which it had contracts prior to that date. For example, it began work at the Brooklyn Senior Center and the New London Public Library in January, 2006 and the Ribicoff Office Building in March, 2006, and worked on those jobs through July, 2006. On such jobs, the Respondent’s employees included Jeffs, his two sons, his brother, and John Swinyer. Checks were issued between June and November, 2006 for the work it performed to the Respondent individually or to the Respondent and a supplier of materials pursuant to a joint-check agreement. To the extent that the Respondent claims that it is unable to pay the backpay amount because funds to which it was entitled were directed to be deposited with the court by the Court of Appeals Order, that Order was brought about because of the Respondent’s wrongdoing in order to ensure that its backpay liability would be paid. It cannot now be heard to complain about that Order. JD(NY)-41-07 5 10 15 20 25 30 35 40 45 50 5 II. The Backpay Formula Nestor Diaz, the Regional Office’s compliance officer, sent a letter dated July 19, 2006 to the Respondent requesting “payroll records, social security payment records, timecards and other personnel records” in order to determine the amount of backpay due. The only response to the request for records came in a voicemail message from Jeffs saying that “you sent me orders. I’m telling you right now verbally NO, plain and simple No. You as the government will not stick your nose into my business. You cannot assert your jurisdiction on my company period. The answer is no, never. I will close the fucking company. The answer is no. You can take these notices and hang them on your walls, sir.”5 Needless to say, Diaz was left to his own resources in calculating the proper amount of backpay. He discovered a list of employees and their base pay rates as of December 17, 2005, prepared by the Respondent and received in evidence in a prior case. He used the information on that list for their base rates, and asked the six discriminatees how many regular and overtime hours they worked per week. According to the list, Solomonson earned $21.00 per hour, Bramanti, Lacy, and Zajac earned $22.00, Holden earned $23.00 and Richardson earned $24.00. Diaz was informed by the discriminatees that they worked an average of 40 regular hours per week and 10 hours of overtime per week, and that they expected to work at least to the end of the Dick’s project. In this respect, Holden testified that he worked 10 hours per day, 5 days per week until his discharge. He further stated that supervisor Chris Lord and perhaps Jeffs told him that in order to meet certain deadlines to complete the job the workers would have to continue working overtime. Jeffs conceded that, in general, work was available so that employees could work 10 hours per day 5 days per week if they wished. Indeed, Jeffs testified that the Dick’s job would be completed, according to the schedule “as long as we maintained the extended work hours.” (emphasis supplied) Diaz determined, and Jeffs conceded that the overtime rate was based on 1½ times the base rate. The formula used in determining what each discriminatee would have received during his backpay period was the discriminatee’s weekly wage times the number of weeks in each calendar quarter of the discriminatee’s backpay period. Each discriminatee’s base or regular weekly wage was determined by multiplying the discriminatee’s hourly rate of pay by 40 hours. The overtime wage was determined by multiplying the number of overtime hours worked per week by each discriminate by 1½ times the discriminatee’s regular hourly rate of pay. Diaz computed the backpay due based on a 10 hour workday, 5 days per week for each discriminatee. A timesheet offered by the Respondent and received in evidence which shows that for the week ending December 24, 2005, not all employees worked 10 hours per day that week does not detract from Diaz’s figures. On December 24, Christmas Eve, employees who were employed for more than 60 days, such as Holden, did not work that day but received holiday pay instead. Those who were employed for less than 60 days did not receive such pay and could work 10 hours that day if they chose. In fact, Bellomo worked 10 hours per day, 5 days 5 Jeffs' testimony that he told Diaz to contact the Respondent’s accountant for any information he needed is not credited. Diaz denied being given such an instruction and Jeffs’ response to the Specification said that he was unable to obtain information from his accountant due to unpaid bills. JD(NY)-41-07 5 10 15 20 25 30 35 40 45 50 6 that week. The offer of one weekly timesheet, and that for a holiday week, is not representative of the three months that employees worked on the project. Moreover, the Respondent failed and refused to provide any of the requested records to the Regional Office which could prove its claim that employees did not work 10 hours per day, 5 days per week. Further, inasmuch as the Respondent refused to produce the requested time records, no reliance may be placed on the timesheet presented. Bannon Mills, Inc., 146 NLRB 611, 633-634 (1964).6 Analysis and Conclusions I. The Backpay Formula The backpay formula used in the Specification estimates what the discriminatees would have earned during the backpay period by projecting their base pay prior to their terminations and adding their projected overtime hours. As set forth above, compliance officer Diaz did not have the benefit of precise records since the Respondent refused to produce any records of its employees’ earnings or time. Accordingly, Diaz reasonably used a list of the base pay prepared by the Respondent and introduced in evidence in the underlying case. He then properly asked each of the six discriminatees for the amount of regular and overtime hours worked. Their unanimous response that they worked ten hours per day, five days per week which included two hours of overtime each day, was not credibly contradicted by the Respondent, but rather was consistent with Jeffs' testimony that such work was available and that they indeed worked “extended hours.” Using those figures, Diaz then computed the gross backpay from December 27, 2005 through May 26, 2006 when the Respondent’s replacement contractor completed its work at the Dick’s project. In the absence of payroll records or of written documentation given to the employees, their recollection of their earnings during their employment is the most reliable, and the only reliable method of determining what they earned while employed. The compliance officer reasonably assumed that their earnings during the backpay period would have been the same as their earnings prior to their discharge. Met Food, 337 NLRB 109, 110 (2001); Bridgeway Oldsmobile, 294 NLRB 858, 860 (1989). The standards in determining the appropriateness of a backpay formula are set forth in Performance Friction Corp., 335 NLRB 1117, 1117 (2001). Both the Board and the courts have applied a broad standard of reasonableness in approving numerous methods of calculating gross backpay. Any formula which approximates what the discriminatees would have earned had they not been discriminated against is acceptable if not unreasonable or arbitrary in the circumstances. The Board is required only to adopt a 6 The General Counsel correctly argues that an adverse inference should be drawn that the timesheets not produced by the Respondent would have supported a finding that the employees worked 10 hours per day, 5 days per week. Filene’s Basement Store, 299 NLRB 13, 204 (1990). JD(NY)-41-07 5 10 15 20 25 30 35 40 45 50 7 formula which will give a close approximation of the amount due; it need not find the exact amount due. (citations omitted) Where there are uncertainties, or ambiguities, they are to be resolved in favor of the wronged party, rather than the wrongdoer. Weldun International, 340 NLRB 666, 672 (2003). It has been held that a backpay formula such as the one used here, which projects the discriminatees’ earnings during the backpay period “based on the discriminatees’ prediscrimination earnings is ‘both conventional and noncontroversial.’ The use of this type of formula should not be departed from absent special circumstances.” Weldun, above, at 672. The basis for the backpay period of December 27, 2005 through May 26, 2006, is also reasonably based. The six employees were unlawfully discharged on December 27. The evidence is clear that had they not been discharged the Respondent would have continued its work on the Dick’s project until its conclusion on May 26, 2006. It is quite clear that the Respondent’s action in terminating the six men caused Bowdoin to terminate its contract. Since the Respondent was working pursuant to a schedule which could only be completed on time if its employees worked “extended hours” the summary dismissal of nearly half its workforce necessarily caused Bowdoin to believe that it had an insufficient number of workers to complete its contract. If the workers were not unlawfully dismissed there is no question that the Respondent’s and the employees’ work on the project would have continued uninterrupted as it had in the past. Accordingly, it is clear that the Respondent’s removal from the project was caused by its unlawful actions in firing its workers and not, as testified by Jeffs, because Bowdoin demanded their discharge. Weldun, above, at 673. II. The General Counsel’s Burden Under Oil Capitol Sheet Metal The Board has traditionally applied a rebuttable presumption that the backpay period should continue indefinitely from the date of the discrimination until a valid offer of reinstatement has been made. In Oil Capitol Sheet Metal, 349 NLRB No. 118, (2007), the Board held that the presumption should be changed in cases such as this, involving union organizers or “salts” who obtained jobs for the purpose of organizing their employer. 7 The Board reasoned that in such cases the employee may not seek employment for an indefinite duration, but rather remain with his employer only until the union’s “defined objectives are achieved or abandoned.”8 Accordingly, the Board placed the burden on the General Counsel to prove the appropriateness of the backpay period. The Board required that the General Counsel present affirmative evidence that the employee would have worked for the employer for the backpay period claimed in the Specification. Such evidence may include the employee’s personal circumstances, contemporaneous union policies and practices regarding salting campaigns, specific plans for the targeted employer, instructions or agreements between the discriminatee and union concerning the anticipated duration of the assignment, and historical data regarding the duration of employment of the discriminatee and other salts in similar salting campaigns. Oil Capitol, above, slip op. at 2. 7 Although Oil Capitol involved a refusal to hire employees, the Board stated that its principles should also apply to cases such as the instant case, where employees were discharged. Slip op. at 2. 8 Apparently pursuant to Oil Capitol, the Specification was amended, as set forth above, to limit the duration of the backpay period only until the completion of the Dick’s project. JD(NY)-41-07 5 10 15 20 25 30 35 40 45 50 8 The discriminatees’ personal circumstances are such that they were all unemployed at the time they began work for the Respondent, they were all in the bottom half of the Union’s out- of-work list and because of the severe unemployment then existing, could not be expected to be referred to a Union contractor for at least six months. Accordingly, facing such a bleak outlook for employment with a Union contractor, it is reasonable to assume that the discriminatees would have remained employed, as they did, for as long as possible with the Respondent, continuing through the completion of the Dick’s job. The evidence further demonstrates that Union official Lurate believed that the campaign to organize the Respondent would last at least six months during which time the Respondent would have a need for more workers than it started with. Lurate asked for and received a commitment from the six men that they would remain employed for the duration of the organizing campaign, through an election or contract or until the Union abandoned it. All six men continued to be employed from the date of their hire until their discharge. In this connection, the Union’s intent to maintain a sustained campaign to organize the Respondent is demonstrated by its filing a petition with the Board and participating in an election which it won. Finally, the Union has conducted similar organizing campaigns in the same geographical area including one at Scobar Electric in which organizers worked there for eight months. After his discharge from the Respondent, Holden worked at Scobar for six months when the campaign was abandoned for lack of interest. Three of the other discriminatees also worked as covert organizers in other campaigns. The evidence clearly demonstrates that the counsel for the General Counsel has met her burden of proof. As set forth above, the evidence is clear that absent their unlawful discharges, the six discriminatees would have continued to work for the Respondent at the Dick’s Sporting Goods job for the entire backpay period. Order9 The Respondent, Jeffs Electric, LLC, its officers, agents, successors, shall make whole the discriminatees named below by payment to them of the amounts set forth below, plus interest calculated in a manner prescribed in, as prescribed in New Horizons for the Retarded, 283 NLRB 1173 (1987), minus tax withholdings required by Federal and State laws. The amounts set forth below are taken from the figures set forth in the Amended Compliance Specification. The names of the discriminatees to whom payment shall be made and the amounts to be paid, plus interest, are as follows: 9 If no exceptions are filed as provided by Sec. 102.46 of the Board’s Rules and Regulations, the findings, conclusions, and recommended Order shall, as provided in Sec. 102.48 of the Rules, be adopted by the Board and all objections to them shall be deemed waived for all purposes. JD(NY)-41-07 5 10 15 20 25 30 35 40 45 50 9 NAME BACKPAY James Bramanti $ 12,490 Benjamin Holden 14,967 Christopher Lacy 19,490 Harry Richardson 15,235 Joshua Solomonson 23,179 Steve Zajac 18,817 Total Backpay $104,266 Dated, Washington, D.C. , September 17, 2007 ____________________ Steven Davis Administrative Law Judge Copy with citationCopy as parenthetical citation