Prime Envelope & Graphics, Inc.

National Labor Relations Board - Board Decisions

Apr 30, 2004

341 N.L.R.B. 110 (N.L.R.B. 2004)

NOTICE: This opinion is subject to formal revision swdwww before publication
in the bound volumes of NLRB decisions. Readers are requested to notify
the Executive Secretary, National Labor Relations Board, Washington,
D.C. 20570, of any typographical or other formal errors so that correc-
tions can be included in the bound volumes.
Prime Envelope & Graphics, Inc. and Printing Spe-
cialties and Paper Products Union, Local 447,
GCIU, AFL–CIO. Case 22–CA–26086
April 30, 2004
DECISION AND ORDER
BY CHAIRMAN BATTISTA AND MEMBERS WALSH
AND MEISBURG
The General Counsel seeks a default judgment in this
case on the ground that the Respondent has failed to file
an answer to the complaint. Upon a charge filed by the
Union on October 31, 2003, the General Counsel issued
the complaint on January 30, 2004, against Prime Enve-
lope & Graphics, Inc., the Respondent, alleging that it
has violated Section 8(a)(1) and (5) of the Act. The Re-
spondent failed to file an answer.
On April 1, 2004, the General Counsel filed a Motion
for Default Judgment with the Board. On April 7, 2004,
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 filed no re-
sponse. The allegations in the motion are therefore un-
disputed.
The National Labor Relations Board has delegated its
authority in this proceeding to a three-member panel.
Ruling on Motion for Default Judgment
Section 102.20 of the Board’s Rules and Regulations
provides that the allegations in the complaint shall be
deemed admitted if an answer is not filed within 14 days
from service of the complaint, unless good cause is
shown. In addition, the complaint affirmatively stated
that unless an answer was filed within 14 days of service
of the complaint, all the allegations in the complaint
would be considered admitted. Further, the undisputed
allegations in the General Counsel’s motion disclose that
the Region, by letter dated February 19, 2004, notified
the Respondent that unless an answer was received by
February 26, 2004, a motion for default judgment would
be filed.
In the absence of good cause being shown for the fail-
ure to file a timely answer, we grant the General Coun-
sel’s Motion for Default Judgment.
On the entire record, the Board makes the following
FINDINGS OF FACT
I. JURISDICTION
At all material times, the Respondent, a corporation
with an office and place of business in Carlstadt, New
Jersey, has been engaged in the manufacture, printing,
and production of stationary, office supplies, and enve-
lopes.
During the 12-month period preceding issuance of the
complaint, the Respondent, in conducting its business
operation described above, sold and shipped from its
Carlstadt facility goods valued in excess of $50,000 di-
rectly to customers located outside the State of New Jer-
sey, and purchased and received goods and services val-
ued in excess of $50,000 directly from suppliers located
outside the State of New Jersey.
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 Printing Specialties and Paper
Products Union, Local 447, GCIU, AFL–CIO is a labor
organization within the meaning of Section 2(5) of the
Act.
II. ALLEGED UNFAIR LABOR PRACTICES
The following employees of the Respondent (the unit)
constitute an appropriate unit for the purposes of collec-
tive bargaining within the meaning of Section 9(b) of the
Act:

All employees of the Employer including handlers of
cases, rolls, bundles, cartons, etcetera; packers; order
fillers; order pickers; stockmen; shipping and receiving
clerks; cutters; rotary cutters; slitters; sheeters and re-
winders; sealers and wrappers of cut stock; operators;
pressmen and platemaker/strippers but excluding all of-
fice clerical employees, guards and supervisors as de-
fined in the Act.

Since about December 1961, and at all material times,
the Union has been the designated exclusive collective-
bargaining representative of the unit and since then has
been recognized as the representative by the Respondent.
This recognition has been embodied in successive collec-
tive-bargaining agreements, the most recent of which
was effective from April 1, 2000, to April 30, 2003.
At all material times since December 1961, based on
Section 9(a) of the Act, the Union has been the exclusive
collective-bargaining representative of the unit.
Beginning on about May 15, 2003, the Respondent has
failed to make contributions to the Union’s Pension and
Annuity Fund for the month of March 2003, and continu-
ing for each month thereafter until the present time.
341 NLRB No. 110
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 2
The subject set forth above relates to the wages, hours,
and other terms and conditions of employment of the unit
and is a mandatory subject for the purposes of collective
bargaining.
The Respondent engaged in the conduct described
above without affording the Union an opportunity to bar-
gain with the Respondent with respect to this conduct.
CONCLUSION OF LAW
By the conduct described above, the Respondent has
failed and refused to bargain collectively with the exclu-
sive collective-bargaining representative of its employees
within the meaning of Section 8(d) of the Act in violation
of Section 8(a)(5) and (1) of the Act, and has thereby
engaged in unfair labor practices affecting commerce
within the meaning of Section 2(6) and (7) of the Act.
REMEDY
Having found that the Respondent has engaged in cer-
tain unfair labor practices, we shall order it to cease and
desist and to take certain affirmative action designed to
effectuate the policies of the Act. Specifically, having
found that the Respondent violated Section 8(a)(5) and
(1) by unilaterally failing to make contributions to the
Union’s Pension and Annuity Fund for the month of
March 2003, and continuing for each month thereafter
until the present time, we shall order the Respondent to
make all such delinquent benefit fund payments, includ-
ing any additional amounts applicable to such payments
as set forth in Merryweather Optical Co., 240 NLRB
1213, 1216 (1979).1 We shall also order the Respondent
to reimburse the unit employees for any expenses ensu-
ing from its failure to make contributions to the Pension
and Annuity Fund, as set forth in Kraft Plumbing &
Heating, 252 NLRB 891 fn. 2 (1980), enfd. 661 F.2d 940
(9th Cir. 1981), such amounts to be computed in accor-
dance with Ogle Protection Service, 183 NLRB 682
(1970), enfd. 444 F.2d 502 (6th Cir. 1971), with interest
as prescribed in New Horizons for the Retarded, 283
NLRB 1173 (1987).
ORDER
The National Labor Relations Board orders that the
Respondent, Prime Envelope & Graphics, Inc., Carlstadt,
New Jersey, its officers, agents, successors, and assigns,
shall
1. Cease and desist from

1 To the extent that an employee has made personal contributions to
a benefit or other fund that have been accepted by the fund in lieu of
the Respondent’s delinquent contributions during the period of the
delinquency, the Respondent will reimburse the employee, but the
amount of such reimbursement will constitute a setoff to the amount
that the Respondent otherwise owes the fund.
(a) Failing and refusing to bargain collectively and in
good faith with Printing Specialties and Paper Products
Union, Local 447, GCIU, AFL–CIO, by unilaterally fail-
ing to make contributions to the Union’s Pension and
Annuity Funds on behalf of unit employees. The appro-
priate unit consists of:

All employees of the Employer including handlers of
cases, rolls, bundles, cartons, etcetera; packers; order
fillers; order pickers; stockmen; shipping and receiving
clerks; cutters; rotary cutters; slitters; sheeters and re-
winders; sealers and wrappers of cut stock; operators;
pressmen and platemaker/strippers but excluding all of-
fice clerical employees, guards and supervisors as de-
fined in the Act.

(b) In any like or related manner interfering with, re-
straining, 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) Make all required Pension and Annuity Fund pay-
ments that have not been made for the month of March
2003, and each month thereafter, and reimburse unit em-
ployees for any expenses resulting from its unlawful fail-
ure to make these payments, with interest, as set forth in
the remedy section of this Decision.
(b) Preserve and, within 14 days of a request, or such
additional time as the Regional Director may allow for
good cause shown, provide at a reasonable place desig-
nated by the Board or its agents, all payroll records, so-
cial security payment records, timecards, personnel re-
cords and reports, and all other records including an elec-
tronic copy of such records if stored in electronic form,
necessary to analyze the amount of backpay due under
the terms of this Order.
(c) Within 14 days after service by the Region, post at
its facility in Carlstadt, New Jersey, copies of the at-
tached notice marked “Appendix.”2 Copies of the notice,
on forms provided by the Regional Director for Region
22, after being signed by the Respondent’s authorized
representative, shall be posted by the Respondent 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 al-
tered, defaced, or covered by any other material. In the
2 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 Na-
tional Labor Relations Board” shall read “Posted Pursuant to a Judg-
ment of the United States Court of Appeals Enforcing an Order of the
National Labor Relations Board.”

PRIME ENVELOPE & GRAPHICS 3
event that, during the pendency of these proceedings, the
Respondent has gone out of business or closed the facil-
ity involved in these proceedings, the Respondent shall
duplicate and mail, at its own expense, a copy of the no-
tice to all current employees and former employees em-
ployed by the Respondent at any time since May 15,
2003.
(d) Within 21 days after service by the Region, file
with the Regional Director a sworn certification of a re-
sponsible official on a form provided by the Region at-
testing to the steps that the Respondent has taken to
comply.
Dated, Washington, D.C. April 30, 2004

Robert J. Battista, Chairman

Dennis P. Walsh, Member

Ronald Meisburg, Member

(SEAL) NATIONAL LABOR RELATIONS BOARD

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 vio-
lated Federal labor law and has ordered us to post and obey
this notice.

FEDERAL LAW GIVES YOU THE RIGHT TO

Form, join, or assist a union
Choose representatives to bargain with us on
your behalf
Act together with other employees for your bene-
fit or protection
Choose not to engage in any of these protected
activities.

WE WILL NOT fail and refuse to bargain collectively and
in good faith with Printing Specialties and Paper Prod-
ucts Union, Local 447, GCIU, AFL–CIO, by unilaterally
failing to make contributions to the Union’s Pension and
Annuity Fund on behalf of unit employees. The appro-
priate unit consists of:

All of our employees including handlers of cases, rolls,
bundles, cartons, etcetera; packers; order fillers; order
pickers; stockmen; shipping and receiving clerks; cut-
ters; rotary cutters; slitters; sheeters and rewinders;
sealers and wrappers of cut stock; operators; pressmen
and platemaker/strippers but excluding all office cleri-
cal employees, guards and supervisors as defined in the
Act.

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 make all required Pension and Annuity Fund
payments that have not been made for the month of
March 2003 and each month thereafter, and reimburse
unit employees for any expenses resulting from our
unlawful failure to make these payments, with interest.

PRIME ENVELOPE & GRAPHICS, INC.