Express Gourmet

342 NLRB No. 54 Consolidated Food Services, Inc. d/b/a Express Gourmet and Local 24, Hotel and Restaurant Employees International Union, AFL–CIO. Case 7–CA–44786 July 27, 2004 BY CHAIRMAN BATTISTA AND MEMBERS LIEBMAN AND WALSH SUPPLEMENTAL DECISION AND ORDER The General Counsel seeks a default judgment in this case on the ground that the Respondent has failed to file an answer to the compliance specification. On March 14, 2003,1 the National Labor Relations Board issued a Decision and Order directing the Respon- dent to, among other things, make whole former unit employees for any loss of earnings and other benefits resulting from the Respondent’s failure to bargain with the Union concerning the effects of the closure of its De- troit Metropolitan Airport facility, in violation of Section 8(a)(5) and (1) of the Act. On November 3, 2003, the United States Court of Appeals for the Sixth Circuit en- tered its judgment enforcing in full the Board’s Order.2 A controversy having arisen over the amount of back- pay due the former unit employees, on April 15, 2004, the Regional Director issued a compliance specification and notice of hearing alleging the amounts due under the Board’s Order. The compliance specification notified the Respondent that it should file a timely answer com- plying with the Board’s Rules and Regulations. The Re- spondent failed to file an answer. By letter dated May 12, 2004, the Regional Attorney advised the Respondent that no answer to the compliance specification had been received and that unless an answer was filed by May 20, 2004, a motion for default judg- ment would be filed.3 The Respondent did not file an answer. On June 14, 2004, the General Counsel filed with the Board a Motion for Default Judgment, with exhibits at- tached. On June 18, 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 response. The allegations in the 1 338 NLRB No. 114. 2 81 Fed. Appx. 13. 3 Copies of the May 12, 2004 letter were sent to the Respondent by certified and regular mail. The copy sent by certified mail was returned to the Regional Office marked “unclaimed.” It is well settled that a respondent’s failure or refusal to accept certified mail or to provide for appropriate service cannot serve to defeat the purposes of the Act. See, e.g., I.C.E. Electric, Inc., 339 NLRB No. 36 fn. 2 (2003), and cases cited therein. motion and in the compliance specification are therefore undisputed. The National Labor Relations Board has delegated its authority in this proceeding to a three-member panel. Ruling on Motion for Default Judgment Section 102.56(a) of the Board’s Rules and Regula- tions provides that a respondent shall file an answer within 21 days from service of a compliance specifica- tion. Section 102.56(c) provides that if the respondent fails to file an answer to the specification within the time prescribed by this section, the Board may, either with or without taking evidence in support of the allegations of the specification and without further notice to the re- spondent, find the specification to be true and enter such order as may be appropriate. According to the uncontroverted allegations of the mo- tion for default judgment, the Respondent, despite having been advised of the filing requirements, has failed to file an answer to the compliance specification. In the ab- sence of good cause for the Respondent’s failure to file an answer, we deem the allegations in the compliance specification to be admitted as true, and grant the Gen- eral Counsel's motion for default judgment. Accord- ingly, we conclude that the net backpay due the unit em- ployees is as stated in the compliance specification and we will order the Respondent to pay those amounts to the employees, plus interest accrued to the date of payment. ORDER The National Labor Relations Board orders that the Respondent, Consolidated Food Services, Inc. d/b/a Ex- press Gourmet, Southfield, Michigan, its officers, agents, successors, and assigns, shall make whole the individuals named below by paying them the amounts following their names, plus interest as set forth in New Horizons for the Retarded, 283 NLRB 1173 (1987), and minus tax withholdings required by Federal and State laws: DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 2 Madeana Brown $ 555.00 Degeane Cleveland 555.00 Valerie Carter 1,482.00 Laizara Dillard 555.00 Barbara Frazier 1,218.75 Stephanie L. Hamby 840.00 Antonio Henry 555.00 Alford Hickson 555.00 Terri A. Jefferson 555.00 Laurie Ledford 592.00 Gary Lewis 555.00 Johnnie Myles 555.00 Kamani Patterson 600.00 Steve Putman 20.00 Derrick Reed 50.00 Elmuhammad Rhodes 555.00 Antonie Ruffin 555.00 William D. Smith 555.00 Rencee Street 555.00 Rochelle Street 555.00 Toroitez Talyor 1,536.00 Clara Urquhart 555.00 TOTAL $14,108.75