Northern Homes

National Labor Relations Board - Board Decisions

Jul 23, 1993

311 N.L.R.B. 1171 (N.L.R.B. 1993)

1171
311 NLRB No. 147
NORTHERN HOMES
1 Attorney John Carusone, brother of the Respondent’s former
president Joe Carusone, filed a notice of appearance with the Board
on behalf of the Respondent and, in a letter dated April 20, 1993,
advised the Regional Director that the Respondent had filed for
Chapter 7 bankruptcy on April 14, that the Company was closed
some weeks prior to the filing, that he was inexperienced in labor
relations matters and was appearing only because the Respondent
has no assets and no means with which to pay a lawyer, and that
the letter was being submitted to ensure that Joe Carusone ‘‘doesn’t
violate some unique statute of the Federal law.’’
2 By letter dated June 8, 1993, John Carusone responded that the
Respondent was bankrupt, that its president had left the State to find
employment, that there was no money to proceed, and that the Board
should take ‘‘whatever action you feel necessary as there is no one
to object.’’ The institution of bankruptcy proceedings does not de-
prive the Board of jurisdiction or authority to entertain and process
an unfair labor practice case to its final disposition. Phoenix Co.,
274 NLRB 995 (1985). Board proceedings fall within the exception
to the automatic stay provision for proceedings by a governmental
unit to enforce its police or regulatory powers. Id.
Northern Homes, Inc. and United Steel Workers of
America, Local 12770, AFL–CIO, CLC. Case
3–CA–17752
July 23, 1993
DECISION AND ORDER
BY CHAIRMAN STEPHENS AND MEMBERS
DEVANEY AND RAUDABAUGH
Upon a charge filed by the Union on April 1, 1993
(amended May 12, 1993), the General Counsel of the
National Labor Relations Board, on May 14, 1993,
issued a consolidated complaint and compliance speci-
fication against Northern Homes, Inc., the Respondent,
alleging that it has violated Section 8(a)(5) and (1) of
the National Labor Relations Act. Although properly
served copies of the charge and the consolidated com-
plaint and compliance specification, the Respondent
failed to file an answer.1
On June 18, 1993, counsel for the General Counsel
filed a Motion for Summary Judgment with the Board.
On June 22, 1993, the Board issued an order transfer-
ring the proceeding to the Board and a Notice to Show
Cause why the motion should not be granted. The Re-
spondent filed no response. The allegations in the mo-
tion are therefore undisputed.
Ruling on Motion for Summary Judgment
Sections 102.20 and 102.21 of the Board’s Rules
and Regulations provide that the allegations in the
complaint shall be deemed admitted if an answer is not
filed within 14 days from service of the complaint, un-
less good cause is shown. Section 102.56 of the
Board’s Rules and Regulations provides that the alle-
gations in a compliance specification shall be deemed
admitted if an answer is not filed within 21 days from
the service of the specification. In addition, the con-
solidated complaint and compliance specification af-
firmatively notes that unless an answer is filed within
21 days of service, all the allegations in the consoli-
dated complaint will be considered admitted. Further,
the undisputed allegations in the Motion for Summary
Judgment disclose that by letter dated June 7, 1993,
counsel for the General Counsel notified the Respond-
ent that unless an answer was received by the close of
business June 11, 1993, a Motion for Summary Judg-
ment would be filed.2 To date, no answer has been
filed by the Respondent.
In the absence of good cause being shown for the
failure to file a timely answer, we grant the General
Counsel’s Motion for Summary Judgment.
On the entire record, the Board makes the following
FINDINGS OF FACT
I. JURISDICTION
The Respondent is a New York corporation with its
principal office and place of business located at 337
Main Street, in Hudson Falls, New York, where it has
been engaged in the manufacture of panelized homes
and, at various locations within the State of New York,
in the operation of retail building supply stores. During
the 12 months preceding the issuance of the complaint,
a representative period, the Respondent, in the conduct
of its operations, derived gross revenues in excess of
$1 million and purchased and received goods and ma-
terials valued in excess of $50,000 that were shipped
to its facilities located within the State of New York
directly from points and places located outside the
State of New York. 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
Since on or about the early 1980’s, the exact date
being unknown, and at all material times, the Union,
pursuant to Section 9(a) of the Act, has been the des-
ignated exclusive collective-bargaining representative
of the Respondent’s employees in an appropriate unit,
and has, since then, been recognized as such by the
Respondent in successive collective-bargaining agree-
ments, the most recent of which is effective from July
1, 1991, to June 30, 1993. The appropriate bargaining
unit consists of:
All those employees at the Respondent’s Manu-
facturing Division and Retail Division who are
now or may hereafter become production, mainte-
nance or service employees, but excluding all ex-
ecutives, foremen, office and clerical employees,
designers, salespeople, and watchmen.
1172 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
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
Since about March 6, 1993, the Respondent, without
the Union’s consent, has failed to continue in effect all
the terms and conditions of its current agreement with
the Union by failing to abide by article IV (wage rates)
and article XVII (vacations) of that agreement, which
are mandatory subjects of bargaining. By engaging in
such conduct, we find that the Respondent has failed
and refused, and is failing and refusing, to bargain col-
lectively with the Union as the exclusive bargaining
representative of the unit employees within the mean-
ing of Section 8(d), and has violated Section 8(a)(5)
and (1) of the Act, as alleged. We also find that as a
result of the Respondent’s unfair labor practices, the
following individuals sustained the losses set forth next
to their names, as alleged in the compliance specifica-
tion:
WAGES VACATIONS TOTAL
Darius
Goodemote
$723.60 (weeks
of 3/6 &
3/13/93)
$402 (5
days)
$1,125.60
James Parker 386.80 (week of
3/6/93)
386.80
Michael Ruby 416.80 (week of
3/6/93)
500.16 (6
days)
916.96
Richard Wilson 820.43 (weeks of
3/6 & 3/13/93)
502.84
(6-1/2
days)
1,323.27
Tim Wood 259.20 (week of
3/6/93)
432 (5 days) 691.20
CONCLUSION OF LAW
By failing, without the Union’s consent, to abide by
article IV (wage rates) and article XVII (vacations) of
its collective-bargaining agreement with the Union, the
Respondent has failed and refused to bargain collec-
tively with Union as the unit employees’ exclusive bar-
gaining representative within the meaning of Section
8(d), and has thereby engaged in unfair labor practices
affecting commerce within the meaning of Section
8(a)(5) and (1) and Section 2(6) and (7) of the Act.
REMEDY
Having found that the Respondent has engaged in
certain unfair labor practices, we shall order it to cease
and desist and to take certain affirmative action de-
signed to effectuate the policies of the Act. The Re-
spondent shall be ordered to abide by article IV (wage
rates) and article XVII (vacations) of its collective-bar-
gaining agreement with the Union, and to make whole
employees Darius Goodemote, James Parker, Michael
Ruby, Richard Wilson, and Tim Wood for losses sus-
tained by them as a result of the Respondent’s unlaw-
ful conduct as set forth in the compliance specification,
with interest on such amounts to be computed in the
manner described in New Horizons for the Retarded,
283 NLRB 1173 (1987).
ORDER
The National Labor Relations Board orders that the
Respondent, Northern Homes, Inc., Hudson Falls, New
York, its officers, agents, successors, and assigns, shall
1. Cease and desist from
(a) Failing and refusing to continue in effect all the
terms and conditions of its collective bargaining agree-
ment with United Steel Workers of America, Local
12770, AFL–CIO, CLC, which is the exclusive collec-
tive-bargaining representative of the Respondent’s em-
ployees in an appropriate unit, by failing to abide by
article IV (wage rates) and article XVII (vacations).
The appropriate unit consists of:
All those employees at the Respondent’s Manu-
facturing Division and Retail Division who are
now or may hereafter become production, mainte-
nance or service employees, but excluding all ex-
ecutives, foremen, office and clerical employees,
designers, salespeople, and watchmen.
(b) In any like or related manner interfering with,
restraining, 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) Abide by article IV (wage rates) and article XVII
(vacations) of its collective-bargaining agreement with
the Union, which it has not done since about March
6, 1993, and make whole the following employees by
paying them the amounts set forth next to their names,
with interest in the manner described in the remedy
section of this decision:
WAGES VACATIONS TOTAL
Darius
Goodemote
$723.60 (weeks
of 3/6 &
3/13/93)
$402 (5
days)
$1,125.60
James Parker 386.80 (week of
3/6/93)
386.80
Michael Ruby 416.80 (week of
3/6/93)
500.16 (6
days)
916.96
Richard Wilson 820.43 (weeks of
3/6 & 3/13/93)
502.84
(6-1/2
days)
1,323.27
Tim Wood 259.20 (week of
3/6/93)
432 (5 days) 691.20
(b) Mail to its employees at their homes copies of
the attached notice marked ‘‘Appendix.’’3 Copies of
1173NORTHERN HOMES
National Labor Relations Board’’ shall read ‘‘Posted Pursuant to a
Judgment of the United States Court of Appeals Enforcing an Order
of the National Labor Relations Board.’’
the notice, on forms provided by the Regional Director
for Region 3, after being signed by the Respondent’s
authorized representative, shall also be posted, if ap-
propriate, by the Respondent immediately upon receipt
and maintained for 60 consecutive days in conspicuous
places including all places where notices to employees
are customarily posted. Reasonable steps shall be taken
by the Respondent to ensure that the notices are not
altered, defaced, or covered by any other material.
(c) Notify the Regional Director in writing within 20
days from the date of this Order what steps the Re-
spondent has taken to comply.
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 the National Labor Relations Act and has or-
dered us to post and abide by this notice.
WE WILL NOT fail and refuse to continue in effect
all the terms and conditions of our collective-bar-
gaining agreement with United Steel Workers of
America, Local 12770, AFL–CIO, CLC, which is the
exclusive collective-bargaining representative of our
employees in an appropriate bargaining unit, by refus-
ing to abide by article IV (wage rates) and article XVII
(vacations) of that agreement. The appropriate bar-
gaining unit consists of:
All of our employees at the Manufacturing Divi-
sion and Retail Division who are now or may
hereafter become production, maintenance or serv-
ice employees, but excluding all executives, fore-
men, office and clerical employees, designers,
salespeople, and watchmen.
WE WILL NOT in any like or related manner interfere
with, restrain, or coerce you in the exercise of the
rights guaranteed you by Section 7 of the Act.
WE WILL abide by article IV (wage rates) and article
XVII (vacations) of our collective-bargaining agree-
ment with the Union, which we have not done since
about March 6, 1993, and WE WILL make whole the
following employees by paying them the amounts set
forth next to their names, with interest:
WAGES VACATIONS TOTAL
Darius
Goodemote
$723.60 (weeks
of 3/6 &
3/13/93)
$402 (5
days)
$1,125.60
James Parker 386.80 (week of
3/6/93)
386.80
Michael Ruby 416.80 (week of
3/6/93)
500.16 (6
days)
916.96
Richard Wilson 820.43 (weeks of
3/6 & 3/13/93)
502.84
(6-1/2
days)
1,323.27
Tim Wood 259.20 (week of
3/6/93)
432 (5 days) 691.20
NORTHERN HOMES, INC.