Victory Specialty Packaging

National Labor Relations Board - Board Decisions

Aug 18, 2000

331 N.L.R.B. 139 (N.L.R.B. 2000)

331 NLRB No. 139
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.
Victory Specialty Packaging, Inc. and Paper, Allied
Industrial, Chemical & Energy Workers Inter-
national Union and Local 1707, and Paper, Al-
lied Industrial, Chemical & Energy Workers In-
ternational Union, AFL–CIO. Case 3–CA–22425
August 18, 2000
DECISION AND ORDER
BY CHAIRMAN TRUESDALE AND MEMBERS FOX
AND LIEBMAN
Upon a charge filed by the Union on March 23, 2000,
and an amended charge filed by the Unions on May 31,
2000, the General Counsel of the National Labor Rela-
tions Board issued a complaint on June 13, 2000, against
Victory Specialty Packaging, Inc., the Respondent, alleg-
ing that it has violated Section 8(a)(1) and (5) of the Na-
tional Labor Relations Act. Although properly served
copies of the charge, amended charge and complaint, the
Respondent failed to file an answer.
On July 21, 2000, the General Counsel filed a Motion for
Summary Judgment with the Board. On July 25, 2000, 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 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 July 5, 2000, notified the Respondent that
unless an answer were received by July 14, 2000, a Mo-
tion for Summary 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 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 Victory Mills,
New York, has been engaged in the manufacture of paper
packaging products. During the calendar year ending
December 31, 1999, the Respondent, in the course and
conduct of its business operations, sold and shipped from
its Victory Mills facility goods valued in excess of
$50,000, directly to points outside the State of New
York. We find that the Respondent is an employer en-
gaged in commerce within the meaning of Section 2(2),
(6), and (7) of the Act and that Paper, Allied Industrial,
Chemical & Energy Workers International Union, its
Local 1707 and Paper, Allied Industrial, Chemical &
Energy Workers International Union, AFL–CIO are la-
bor organizations within the meaning of Section 2(5) of
the Act.
II. ALLEGED UNFAIR LABOR PRACTICES
The following employees of Respondent, herein called
the unit, constitute a unit appropriate for purposes of col-
lective bargaining within the meaning of Section 9(b) of
the Act:

All production and maintenance employees employed
by Respondent at its Victory Mills, New York, plant
exclusive of those engaged in administration, execu-
tive, actual supervision, sales, research, clerical, stenog-
raphy, and other office work.

Since in or about the 1940’s, and all material times,
Paper, Allied Industrial, Chemical & Energy Workers
International Union and Local 1707, and Paper, Allied
Industrial, Chemical & Energy Workers International
Union, AFL–CIO, have jointly been the designated ex-
clusive collective-bargaining representative of the unit
and since then have been recognized as the representative
by the Respondent. This recognition has been embodied
in successive collective-bargaining agreements, the most
recent of which is effective from June 14, 1999, to April
21, 2002. At all times since the 1940’s, by virtue of Sec-
tion 9(a) of the Act, the above-named Unions have been
the exclusive collective-bargaining representative of the
unit.
Since on or about February 2, 2000, the Respondent
has repudiated the current collective-bargaining agree-
ment, by failing and refusing to make contractually re-
quired payments for severance pay, vacation pay, and
health insurance premiums.
Since on or about December 1, 1999, the Respondent
has repudiated the current collective-bargaining agree-
ment, by failing and refusing to remit to the Unions the
amounts it deducted from its unit employees’ earnings
for Union dues.
The subjects of severance pay, vacation pay, health in-
surance premiums, and deducted union dues relate to
wages, hours, and other terms and conditions of em-
ployment of the unit and are mandatory subjects for the
purposes of collective bargaining.
The Respondent engaged in the above conduct without
prior notice to the Unions, without affording the Unions
an opportunity to bargain with the Respondent with re-
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 2
spect to this conduct, and without the consent of the Un-
ions.
CONCLUSION OF LAW
By the acts and conduct described above, the Respon-
dent has failed and refused to bargain collectively with
the exclusive collective-bargaining representative of its
employees within the meaning of Section 8(d) of the Act,
and has thereby engaged in unfair labor practices affect-
ing commerce within the meaning of Section 8(a)(1) and
(5) and 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 has violated Section 8(a)(1)
and (5) by failing, since February 2, 2000, to pay con-
tractually required severance pay, vacation pay, and
health insurance premiums, and by failing, since Decem-
ber 1, 1999, to remit to the Unions, the dues deducted
from employees’ wages, we shall order the Respondent
to pay the contractually required severance pay, vacation
pay, and health insurance premiums, and to remit to the
Unions the dues deducted from employees’ wages, with
interest as prescribed in New Horizons for the Retarded,
283 NLRB 1173 (1987).
Having found that the Respondent has violated Section
8(a)(1) and (5) by failing to maintain contractually re-
quired health insurance for its unit employees, we shall
order the Respondent to restore the employees’ health
coverage and make the employees whole by reimbursing
them for any expenses ensuing from the Respondent’s
unlawful conduct, as set forth in Kraft Plumbing & Heat-
ing, 252 NLRB 891 at fn. 2 (1980), enfd. mem. 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 in-
terest as prescribed in New Horizons for the Retarded,
supra.
ORDER
The National Labor Relations Board orders that the
Respondent, Victory Specialty Packaging, Inc., Victory
Mills, New York, its officers, agents, successors, and
assigns, shall
1. Cease and desist from
(a) Repudiating the June 14, 1999, to April 21, 2002,
collective-bargaining agreement by failing to pay con-
tractually required severance pay, vacation pay, and
health insurance premiums , and failing to remit to the
Unions the dues deducted from employees’ wages.
(b) In any like or related manner interfering with, re-
straining, or coercing employees in the exe rcise 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 the contractually required payments for sev-
erance pay, vacation pay, and health insurance premiums
with interest as prescribed in the remedy section of this
decision.
(b) Make all unit employees and the Unions whole,
with interest as set forth in the remedy section of this
decision, for any losses suffered as a result of the failure
and refusal to pay contractually required severance pay,
vacation pay, and health insurance premiums, and to re-
mit to the Unions the dues deducted from bargaining unit
employees’ wages.
(c) 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 re-
cords, timecards, personnel records and reports, and all
other records necessary to analyze the amount of back-
pay due under the terms of this Order.
(d) Within 14 days after service by the Region, post at
its facility in Victory Mills, New York, copies of the at-
tached notice marked “Appendix.”1 Copies of the notice,
on forms provided by the Regional Director for Region
3, 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
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 December 1,
1999.
(e) 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.

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.”
VICTORY SPECIALTY PACKAGING 3
Dated, Washington, D.C. August 18, 2000

John C. Truesdale, Chairman

Sarah M. Fox, Member

Wilma B. Liebman, 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 the National Labor Relations Act and has ordered us to
post and abide by this notice.

Section 7 of the Act gives employees these rights.
To organize
To form, join, or assist any union
To bargain collectively through representatives
of their own choice
To act together for other mutual aid or protection
To choose not to engage in any of these protected
concerted activities.

WE WILL NOT refuse to bargain with the Unions by re-
pudiating the June 14, 1999, to April 21, 2002, collec-
tive-bargaining agreement by failing to pay contractually
required severance pay, vacation pay, and health insur-
ance premiums, and failing to remit to the Unions the
dues deducted from employees’ wages.
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 the contractually required payments for
severance pay, vacation pay, and health insurance premi-
ums on behalf of the unit employees.
WE WILL make all unit employees and the Unions
whole, with interest, for any losses suffered as a result of
our failure and refusal to pay contractually required sev-
erance pay, vacation pay, and health insurance premi-
ums, and to remit to the Unions dues deducted from bar-
gaining unit employees’ wages.

VICTORY SPECIALTY PACKAGING, INC.