Sparta Corp.

National Labor Relations Board - Board Decisions

May 24, 1999

328 N.L.R.B. 64 (N.L.R.B. 1999)

328 NLRB No. 64
NOTICE: This opinion is subject to formal revision before publication in the
bound volumes of NLRB decisions. Readers are requested to notify the Ex-
ecutive Secretary, National Labor Relations Board, Washington, D.C.
20570, of any typographical or other formal errors so that corrections can
be included in the bound volumes.
Sparta Corporation and United Mine Workers of
America, District 17, Sub-District II, AFL–CIO.
Case 9-CA-36280
May 24, 1999
DECISION AND ORDER
BY CHAIRMAN TRUESDALE AND MEMBERS FOX AND
BRAME
Upon a charge filed by the Union on September 21,
1998, the General Counsel of the National Labor Rela-
tions Board issued a complaint on January 29, 1999,
against Sparta Corporation, the Respondent, alleging that
it has violated Section 8(a)(1) and (5) of the National
Labor Relations Act. Although properly served copies of
the charge and complaint, the Respondent failed to file
an answer.
On April 9, 1999, the General Counsel filed a Motion
for Summary Judgment with the Board. On April 14,
1999, the Board issued an order transferring the pro-
ceeding to the Board and a Notice to Show Cause why
the motion should not be granted. The Respondent filed
no response. The allegations in the motion are therefore
undisputed.
The National Labor Relations Board has delegated its
authority in this proceeding to a three-member panel.
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, unless good cause
is shown. In addition, the complaint affirmatively notes
that unless an answer is filed within 14 days of service,
all the allegations in the complaint will be considered
admitted. Further, the undisputed allegations in the Mo-
tion for Summary Judgment disclose that the Region, by
letter dated March 23, 1999, notified the Respondent that
unless an answer were received by March 31, 1999, a
Motion for Summary Judgment would be filed. On
March 25, 1999, the Respondent's counsel advised the
General Counsel in a telephone conversation that the
Respondent would not file an answer to the complaint.
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 Summary 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 Switzer, West
Virginia, has been engaged in the business of mining
coal. During the 12 months preceding issuance of the
complaint, the Respondent, in conducting its business
operations described above, purchased and received at its
Switzer, West Virginia facility goods valued in excess of
$50,000 from Mine Exchange, Inc., located within the
State of West Virginia, which, in turn, purchased and
received those goods from points outside the State of
West Virginia. We find that the Respondent is an em-
ployer engaged in commerce within the meaning of Sec-
tion 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
The employees of the Respondent described in article
1A of the National Bituminous Coal Wage Agreement of
1998 constitute a unit appropriate for the purposes of
collective bargaining within the meaning of Section 9(b)
of the Act.
Since about September 1996, the Union has been the
designated exclusive collective-bargaining representative
of the unit, and since then the Respondent has recognized
the Union as the representative. This recognition has
been embodied in successive collective-bargaining
agreements between the Respondent and the United
Mine Workers of America on behalf of its locals and
districts, including the Union, the most recent of which is
effective from January 1, 1998 to December 31, 2002.
At all times since about September 1996, based on Sec-
tion 9(a) of the Act, the Union has been the exclusive
collective-bargaining representative of the unit.
On about July 31, 1998, the Respondent ceased pro-
viding its employees with health benefits pursuant to
article XX of the collective-bargaining agreement de-
scribed above and, at all times thereafter, has failed to
pay medical claims for which it is responsible under that
agreement.
Since on about July 31, 1998, by the conduct described
above, the Respondent has failed to continue in effect all
the terms and conditions of the collective-bargaining
agreement. These health benefits relate to wages, hours,
and other terms and conditions of employment of the unit
employees, and are mandatory subjects for the purposes
of collective bargaining.
The Respondent engaged in the above-described con-
duct without prior notice to the Union and without af-
fording the Union an opportunity to bargain with the
Respondent with respect to this conduct and the effects
of this conduct, and without the Union's consent.
CONCLUSION OF LAW
By the acts and conduct described above, the Respon-
dent has been failing and refusing to bargain collectively
with the exclusive collective-bargaining representative of
its employees, and has thereby engaged in unfair labor
practices affecting commerce within the meaning of Sec-
tion 8(a)(1) and (5) and Section 2(6) and (7) of the Act.
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD2
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 has violated Section 8(a)(5)
and (1) of the Act by failing, since July 31, 1998, to pro-
vide health benefits to unit employees pursuant to article
XX of the 1998–2002 collective-bargaining agreement
and failing to pay their medical expenses, we shall order
the Respondent to honor the terms of the agreement, and
to make whole its unit employees by making all con-
tractually required health insurance payments or contri-
butions, including any additional amounts applicable to
such delinquent payments as determined pursuant to
Merryweather Optical Co., 240 NLRB 1213, 1216
(1979). In addition, the Respondent shall reimburse unit
employees for any expenses ensuing from the Respon-
dent's failure to make such required payments or contri-
butions, 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 the manner set
forth in Ogle Protection Service, 183 NLRB 682 (1970),
enfd. 444 F.2d 502 (6th Cir. 1971), with interest as pre-
scribed in New Horizons for the Retarded, 283 NLRB
1173 (1987).
ORDER
The National Labor Relations Board orders that the
Respondent, Sparta Corporation, Switzer, West Virginia,
its officers, agents, successors, and assigns, shall
1. Cease and desist from
(a) Failing and refusing to bargain with United Mine
Workers of America, District 17, Sub-District II, AFL–
CIO, the exclusive representative of the employees of the
Respondent described in article 1A of the National Bitu-
minous Coal Wage Agreement of 1998, by failing to
provide health benefits to unit employees pursuant to
article XX of the 1998–2002 collective-bargaining
agreement.
(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) Comply with the terms of the 1998–2002 collec-
tive-bargaining agreement by making all contractually
required health insurance benefits payments or contribu-
tions retroactive to July 31, 1998, and make whole the
unit employees for any loss of benefits or expenses en-
suing from its failure, since about July 31, 1998, to pro-
vide health benefits to unit employees pursuant to article
XX of the agreement, as set forth in the remedy section
of this Decision.
(b) Preserve and, within 14 days of a request, make
available to the Board or its agents for examination and
copying, all payroll records, social security payment rec-
ords, timecards, personnel records and reports, and all
other records necessary to analyze the amount of back-
pay due under the terms of this Order.
(c) Within 14 days after service by the Region, post at
its facility in Switzer, West Virginia, copies of the at-
tached notice marked “Appendix.”1 Copies of the notice,
on forms provided by the Regional Director for Region
9, after being signed by the Respondent's authorized rep-
resentative, 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
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 July 31,
1998.
(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. May 24, 1999
John C. Truesdale Chairman
Sarah M. Fox, Member
J. Robert Brame III, Member
(SEAL) NATIONAL LABOR RELATIONS BOARD

1 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.”
SPARTA CORPORATION 3
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 the National Labor Relations Act and has ordered us to
post and abide by this notice.
WE WILL NOT fail and refuse to bargain with United
Mine Workers of America, District 17, Sub-District II,
AFL–CIO, the exclusive representative of our employees
described in Article 1A of the National Bituminous Coal
Wage Agreement of 1998, by failing to provide health
insurance benefits to unit employees pursuant to article
XX of the 1998–2002 collective-bargaining agreement.
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 comply with the terms of the 1998–2002
collective-bargaining agreement by making all contractu-
ally required health insurance benefits payments or con-
tributions retroactive to July 31, 1998, and WE WILL make
whole the unit employees for any loss of benefits or ex-
penses ensuing from our failure, since about July 31,
1998, to provide health benefits to unit employees pursu-
ant to article XX of the agreement, with interest.
SPARTA CORPORATION