Kal Contracting Co , Inc

National Labor Relations Board - Board Decisions

Feb 17, 1989

292 N.L.R.B. 1233 (N.L.R.B. 1989)

KAL CONTRACTING CO
KAL Contracting Co , Inc and Local No 247,
International Brotherhood of Teamsters, Chauf-
feurs, Warehousemen and Helpers of America,
AFL-CIO Cases 7-CA-25417(1) and 7-CA-
25417(2)
February 17, 1989
SUPPLEMENTAL DECISION AND
ORDER
BY MEMBERS JOHANSEN, CRACRAFT, AND
HIGGINS
On June 30, 1987, the National Labor Relations
Board issued a Decision and Order' in which the
Board, inter alia, ordered the Respondent to make
whole certain employees for any loss of pay suf-
fered as a result of their unlawful terminations
A controversy having arisen over the amount of
backpay due from the Respondent under the
Board's Order, the Regional Director for Region 7,
on August 1, 1988, issued a backpay specification
and notice of hearing, alleging the amount of back
pay due from the Respondent and notifying the
Respondent that it should file a timely answer com-
plying with the Board's Rules and Regulations
The Respondent did not file an answer to the
backpay specification On August 25, 1988, the
Acting Regional Director informed counsel for the
Respondent of the need to file an answer By a
letter dated September 12, 1988, the Respondent s
counsel advised the Acting Regional Director that
the bankruptcy court had converted the Respond
ent's bankruptcy case from a Chapter 11 to a Chap
ter 7 case and that an interim trustee had been
named By letter dated October 6, 1988, the bank-
ruptcy trustee wrote to the Regional Director and
informed him that he was in receipt of the backpay
specification By letter dated October 11, 1988 the
trustee informed counsel for the General Counsel
that he did not intend to file an answer to the back
pay specification
On November 1, 1988, the General Counsel filed
a Motion to Transfer Case to the Board and for
Default Judgment On November 9, 1988, 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 did
not file a response The allegations in the motion
are therefore undisputed
The National Labor Relations Board has delegat
ed its authority in this proceeding to a three
member panel
' 284 NLRB 772
1233
Ruling on the Motion for Default Judgment
Section 102 56 of the Board s Rules and Regula
tions2 provides that if an answer is not filed within
21 days from the service of the backpay specifica
tion, the Board may find the specification to be
true and enter an appropriate order
Not only did the backpay specification notify the
Respondent of the requirement of filing an answer,
but also, the Acting Regional Attorney notified the
Respondent of its failure to file an answer and that
the General Counsel intended to seek default judg
ment if no answer were filed
Thus, despite having been advised of the filing
requirements, the Respondent has not filed an
answer nor offered any explanation for its failure to
do so In accordance with the rules set forth above,
the allegations in the backpay specification are
deemed to be admitted as true and the Board so
finds
Accordingly, the Board grants the Motion for
Default Judgment and concludes that the amount
due each of the employees is as stated in the back
pay specification The Board orders that payment
be made by the Respondent as set forth in the
backpay specification
ORDER
The National Labor Relations Board orders that
the Respondent, KAL Contracting Co, Inc, De
troit, Michigan, its officers, agents, successors, and
assigns, shall make whole the employees named
below by payment to them of the amounts follow-
ing their names, plus interest accrued to the date of
payment to be computed as prescribed in New Ho-
rizons for the Retarded,3 less tax withholdings re
quired by Federal and state laws
Robert Johnson $3,292 17
Paul Thompson 3 292 17
Rennie Sims 3,292 17
Merle May 3,628 20
2 Formerly Sec 102 54 The Board amended its rules governing pro
ceedings concerning compliance with Agency orders effective November
13 1988 The substance of former Secs 102 54 and 102 55 has been incor
porated into Sec 102 56 as revised and Sec 102 56 with some modifica
tion has become the new Sec 102 57 while the substance of former Sec
102 57 has become par (c) of the new Sec 102 55 in the revised rules
3 283 NLRB 1173 (1987) Interest on and after January 1 1987 shall be
computed at the short term Federal rate for the underpayment of taxes
as set out in the 1986 amendment to 26 US C § 6621 Interest on
amounts accrued prior to January 1 1987 (the effective date of the 1986
amendment to 26 U S C § 6621) shall be computed in accordance with
Florida Steel Corp 231 NLRB 651 (1977)
292 NLRB No 135