259 NLRB 469
Better Building Supply Corp.
BETTER BUILDING SUPPLY CORP.
469
Better Building Supply Corp., and Evergreen Roof-
Seattle, Washington, their officers, agents, succes-
ing, Inc., its alter ego and Local 54 of the
sors, and assigns, shall take the action set forth in
United Slate, Tile & Composition Roofers,
the said recommended Order,4 except that the at-
Damp and Waterproof Workers Association,
tached notice is substituted for that of the Adminis-
AFLCIO. Cases 19-CA-11908 and 19-CA-
trative Law Judge.
12035
19iwm8hr
3,
981
Q*
In accordance with his dissent in Olympic Medical Corporation, 250
December 3, 1981
NLRB 146 (1980), Member Jenkins would award interest on the backpay
~~~DECISION
AND ORDER
~~
~due
based on the formula set forth therein.
DECISION AND ORDER
BY MEMBERS FANNING, JENKINS, AND
APPENDIX
ZIMMERMAN
NOTICE TO EMPLOYEES
On February
27,
1981, Administrative Law
POSTED BY ORDER OF THE
Judge William J. Pannier III issued the attached
NATIONAL LABOR RELATIONS BOARD
Decision in this proceeding. Thereafter, Respond-
An Agency of the United States Government
ents filed exceptions and a supporting brief, and the
General Counsel filed a brief in support of the Ad-
After a hearing at which all sides had an opportu-
ministrative Law Judge's Decision.
nity to present evidence and state their positions,
Pursuant to the provisions of Section 3(b) of the
the National Labor Relations Board found that we
National Labor Relations Act, as amended, the Na-
have violated the National Labor Relations Act, as
tional Labor Relations Board has delegated its au-
amended, and has ordered us to post this notice.
thority in this proceeding to a three-member panel.
The Board has considered the record and the at-The
Act gives employees the following rights:
tached Decision in light of the exceptions and
To engage in self-organization
briefs and has decided to affirm the rulings, find-
To form, join, or assist any union
ings, 1 and conclusions2 of the Administrative Law
To bargain collectively through repre-
Judge and to adopt his recommended Order. 3
sentatives of their own choice
ORDER
To engage in activities together for the
purpose of collective bargaining or other
Pursuant to Section 10(c) of the National Labor
mutual aid or protection
Relations Act, as amended, the National Labor Re-
To refrain from the exercise of any or all
lations Board adopts as its Order the recommended
such activities.
Order of the Administrative
Law Judge and
WE WILL NOT refuse to bargain collectively
hereby orders that the Respondents, Better Build-
with Local 54 of the United Slate, Tile &
ing Supply Corp., and Evergreen Roofing, Inc.,
Composition Roofers, Damp and Waterproof
Respondents have excepted to certain credibility findings made by
Workers Association, AFL-CIO, as the exclu-
the Administrative Law Judge. It is the Board's established policy not to
sive collective-bargaining representative of all
overrule an administrative law judge's resolutions with respect to credi-
employees in the following appropriate unit:
bility unless the clear preponderance of all of the relevant evidence con-
vinces us that the resolutions are incorrect. Standard Dry Wall Product
All roofers and waterproofers employed by
Inc., 91 NLRB 544 (1950), enfd. 188 F.2d 362 (3d Cir. 1951). We have
carefully examined the record and find no basis for reversing his findings.
Better Building Supply Corp., Evergreen
We fully agree with the Administrative Law Judge's conclusion that
Roofing, Inc., and their subcontractors in
Respondent Evergreen Roofing, Inc., violated Sec. 8(a(5) by failing and
the Washington Counties of Clallam, Jeffer-
refusing to apply to its employees the collective-bargaining agreement ex-
ecuted between Respondent Better Building Supply Corp. and the Charg-
son, King, Kitsap, Mason and Snohomish;
ing Party Union. We note that, under the Supreme Court's decision inexcluding
professional
employees, guards
South Prairie Construction Co. v. Local No 627, International Union of Op-
e mly ,
erating Engineers AFL-CIO, 425 U.S. 800 (1976), the fact that two or
and supervisors as defined in the Act.
more entities constitute a single employer is not dispositive of the issue of
WE WILL NOT fail and refuse to apply the
whether each is bound to the collective-bargaining agreements of the
others. Rather, the test is whether, given the single-employer finding, the
terms and conditions of our collective-bargain-
employees of the separate companies constitute the appropriate unit or
ing agreement with Local 54 of the United
whether the employees of each individual company constitute distinct
and separate units. The criteria for finding a single employer are different
Slate, Tile & Composition Roofers, Damp and
from those for determining the appropriateness of the unit. Peter Kiewit
Waterproof Workers Association, AFL-CIO,
Sons' Co. and South Prairie Construction Co. 231 NLRB 76 (1977). In the
to all employees in the above-described bar-
present case, the operations of both Respondents and the work of their
employees have been so intertwined as to render appropriate only a unit
gaining unit, without the written consent of
of employees of both Respondents and to preclude a finding of separate
that Union.
appropriate units.
3We
adopt the Administrative Law Judge's recommended Order as
WE WILL NOT refuse to bargain collectively
modified by his errata of March 16, 1981.
with Local 54 of the United Slate, Tile and
259 NLRB No. 63
BETTER BUILDING SUPPLY CORP.
469
Better Building Supply Corp., and Evergreen Roof-
Seattle, Washington, their officers, agents, succes-
ing, Inc., its alter ego and Local 54 of the
sors, and assigns, shall take the action set forth in
United Slate, Tile f
Composition Roofers,
the said recommended Order,' except that the at-
Damp and Wa t er p r o o f
W orkers A ssocia t io n,
t ac h e d n o tic e i s substituted for that of the Adminis-
AFL
I00 Cases 19-CA-11908
and 19-CA-
trative Law Judge.
12035
riwemnhr
3,
1Q°14
I
n accordance with his dissent in Olympic Medical Corporation, 250
DeC~cember 3,1981NLRB
I46 (1980), Member Jenkins would award interest on the backpay
DECISION AND ORDER
d ue based on the formula set forth t herein.
BY MEMBERS FANNING, JENKINS, AND
APPENDIX
Z I M M E R M A N
NOTICE TO EMPLOYEES
On February
27,
1981,
Administrative Law
POSTED BY ORDER OF THE
Judge William J. Pannier III issued the attached
NATIONAL LABOR RELATIONS BOARD
Decision in this proceeding. Thereafter, Respond-
An Agency of the United States Government
ents filed exceptions and a supporting brief, and the
General Counsel filed a brief in support of the Ad-
After a hearing at which all sides had an opportu-
ministrative Law Judge's Decision.
nity to present evidence and state their positions,
Pursuant to the provisions of Section 3(b) of the
the National Labor Relations Board found that we
National Labor Relations Act, as amended, the Na-
have violated the National Labor Relations Act, as
tional Labor Relations Board has delegated its au-
amended, and has ordered us to post this notice.
thority in this proceeding to a three-member panel.
T
A
g
ees
fl
g
h
The Board has considered the record and the at-
T h e A c t Kl v e s employees the following rights:
tached Decision in light of the exceptions and
To engage in self-organization
briefs and has decided to affirm the rulings, find-
To form, join, or assist any union
ings,' and conclusions 2 of the Administrative Law
To bargain collectively through repre-
Judge and to adopt his recommended Order.3
sentatives of their own choice
ORDER
To e ngage in activities together for the
purpose of collective bargaining or other
Pursuant to Section 10(c) of the National Labor
mutual aid or protection
Relations Act, as amended, the National Labor Re-
To refrain from the exercise of any or all
lations Board adopts as its Order the recommended
such activities.
Order of the Administrative
Law Judge and
WE WILL NOT refuse to bargain collectively
hereby orders that the Respondents, Better Build-
with Local 54 of the United Slate, Tile &
ing Supply Co rp., a n d
Evergreen Roofing,
In c.,
Composition Roofers, Damp and Waterproof
' Respondents have excepted to certain credibility findings made by
Workers Association, AFL-CIO, as the exclu-
the Administrative Law Judge. It is the Board's established policy not to
sive Collective-bargaining representative of all
overrule an administrative law judge's resolutions with respect to credi-plnvpfs
in the fnllnwint annrnnriate unit:
bility unless the clear preponderance of all of the relevant evidence con-employees
in te
following appropriate Unit:
vinces us that the resolutions are incorrect. Standard Dry Wall Products
All roofers and waterproofers employed by
Inc, 91 NLRB 544 (1950), enfd. 188 F,2d 362 (3d Cir. 1951). We have
carefully examined the record and find no basis for reversing his findings.
Better Building Supply Corp., Evergreen
2We
fully agree with the Administrative Law Judge's conclusion that
Roofing, Inc., and their Subcontractors in
Respondent Evergreen Roofing, Inc., violated Sec. 8(aX5) by failing and
ti/
«L:_~*»_ C~'..-;- of Clall--
T.-CT'-
refusing to apply to its employees the collective-bargaminig agreement ex-
t h e Washington Counties Of Clallar,
Jeffer-
ecuted between Respondent Better Building Supply Corp. and the Charg-
son, King, Kitsap, Mason and Snohomish;
ing Party Union. We note that, under the Supreme Court's decision in
excluding
professional
employees, guards
South Prairie Construction Co. v. Local No 627. International Union of Op-
° .
, <*
, .
,.
,
erating Engineere
AFL-CIO, 425 U.S. 800 (1976). the fact that two or
a n d Supervisors as defined in the Act.
more entities constitute a single employer is not dispositive of the issue of117
W,..
NT r-i -_j
r
„
.„
1*1
whether each is bound to the collective-bargaining agreements of the
W
E
W I L L
N OT
fa i
a n d
re fu s e
t o appl
t h e
others. Rather, the test is whether, given the single-employer finding, the
terms and Conditions of Our collective-bargain-
employees of the separate companies constitute the appropriate unit or
ing agreement with Local 54 of the United
whether the employees of each individual company constitute distinct
and separate units. The criteria for finding a single employer are different
Slate, Tile & Composition Roofers, Damp and
from those for determining the appropriateness of the unit. Peter Kiewit
Waterproof Workers Association, AFL-CIO,
Sons' Co. and South Prairie Construction C., 231 NLRB 76 (1977). In the
to all employees
in the above-described bar-
presem case, the operations of both Respondents and the work of their
employees have been so intertwined as to render appropriate only a unit
gaining Unit, Without the Written Consent of
of employees of both Respondents and to preclude a finding of separate
that Union.
appropriate
^
^^
WE WILL NOT refuse to bargain collectively
3We
adopt the Administrative Law Judge's recommended Order as
W
ILNTrfs
obrancletvl
modified by his errata of March 16, 1981.
with Local 54 of the United Slate, Tile and
259 NLRB No. 63
BETTER BUILDING SUPPLY CORP.
469
Better Building Supply Corp., and Evergreen Roof-
Seattle, Washington, their officers, agents, succes-
ing, Inc., its alter ego and Local 54 of the
sors, and assigns, shall take the action set forth in
United Slate, Tile f
Composition Roofers,
the said recommended Order,' except that the at-
Damp and Wa t er pr oof
W orkers A ssocia t io n,
t ac h e d n o tic e i s substituted for that of the Adminis-
AFI,-00 Cases 19-CA-11908 and 19-CA-
trative Law Judge.
12035
riwemnhr
3,
1Q°14
I
n accordance with his dissent in Olympic Medical Corporation, 250
DeC~cember 3,1981NLRB
I46 (1980), Member Jenkins would award interest on the backpay
DECISION AND ORDER
d ue based on the formula set forth t herein.
BY MEMBERS FANNING, JENKINS, AND
APPENDIX
Z I M M E R M A N
NOTICE TO EMPLOYEES
On February
27,
1981,
Administrative Law
POSTED BY ORDER OF THE
Judge William J. Pannier III issued the attached
NATIONAL LABOR RELATIONS BOARD
Decision in this proceeding. Thereafter, Respond-
An Agency of the United States Government
ents filed exceptions and a supporting brief, and the
General Counsel filed a brief in support of the Ad-
After a hearing at which all sides had an opportu-
ministrative Law Judge's Decision.
nity to present evidence and state their positions,
Pursuant to the provisions of Section 3(b) of the
the National Labor Relations Board found that we
National Labor Relations Act, as amended, the Na-
have violated the National Labor Relations Act, as
tional Labor Relations Board has delegated its au-
amended, and has ordered us to post this notice.
thority in this proceeding to a three-member panel.
T
A
g
ees
fl
g
h
The Board has considered the record and the at-
T h e A c t Kl v e s employees the following rights:
tached Decision in light of the exceptions and
To engage in self-organization
briefs and has decided to affirm the rulings, find-
To form, join, or assist any union
ings,' and conclusions 2 of the Administrative Law
To bargain collectively through repre-
Judge and to adopt his recommended Order.3
sentatives of their own choice
ORDER
To e ngage in activities together for the
purpose of collective bargaining or other
Pursuant to Section 10(c) of the National Labor
mutual aid or protection
Relations Act, as amended, the National Labor Re-
To refrain from the exercise of any or all
lations Board adopts as its Order the recommended
such activities.
Order of the Administrative
Law Judge and
WE WILL NOT refuse to bargain collectively
hereby orders that the Respondents, Better Build-
with Local 54 of the United Slate, Tile &
ing Supply Co rp., a n d
Evergreen Roofing,
In c.,
Composition Roofers, Damp and Waterproof
' Respondents have excepted to certain credibility findings made by
Workers Association, AFL-CIO, as the exclu-
the Administrative Law Judge. It is the Board's established policy not to
sive Collective-bargaining representative of all
overrule an administrative law judge's resolutions with respect to credi-plnvpcs
in the fnllnwint annrnnriate unit:
bility unless the clear preponderance of all of the relevant evidence con-employees
in te
following appropriate Unit:
vinces us that the resolutions are incorrect. Standard Dry Wall Products
All roofers and waterproofers employed by
Inc, 91 NLRB 544 (1950), enfd. 188 F,2d 362 (3d Cir. 1951). We have
carefully examined the record and find no basis for reversing his findings.
Better Building Supply Corp., Evergreen
2We
fully agree with the Administrative Law Judge's conclusion that
Roofing, Inc., and their Subcontractors in
Respondent Evergreen Roofing, Inc., violated Sec. 8(aX5) by failing and
ti/
«L:_~*»_ C~'..-;- of Clall--
T.-CT"-
refusing to apply to its employees the collective-bargaminig agreement ex-
t h e Washington Counties Of Clallar,
Jeffer-
ecuted between Respondent Better Building Supply Corp. and the Charg-
son, King, Kitsap, Mason and Snohomish;
ing Party Union. We note that, under the Supreme Court's decision in
excluding
professional
employees, guards
South Prairie Construction Co. v. Local No 627. International Union of Op-
° .
, <*
, .
,.
,
erating Engineere
AFL-CIO, 425 U.S. 800 (1976). the fact that two or
a n d Supervisors as defined in the Act.
more entities constitute a single employer is not dispositive of the issue of117
W,..
NT r-i -_j
r
„
.„
1*1
whether each is bound to the collective-bargaining agreements of the
W
E
W I L L
N OT
fa i
a n d
re fu s e
t o appl
t h e
others. Rather, the test is whether, given the single-employer finding, the
terms and Conditions of Our collective-bargain-
employees of the separate companies constitute the appropriate unit or
ing agreement with Local 54 of the United
whether the employees of each individual company constitute distinct
and separate units. The criteria for finding a single employer are different
Slate, Tile & Composition Roofers, Damp and
from those for determining the appropriateness of the unit. Peter Kiewit
Waterproof Workers Association, AFL-CIO,
Sons' Co. and South Prairie Construction C., 231 NLRB 76 (1977). In the
to all employees
in the above-described bar-
presem case, the operations of both Respondents and the work of their
employees have been so intertwined as to render appropriate only a unit
gaining Unit, Without the Written Consent of
of employees of both Respondents and to preclude a finding of separate
that Union.
appropriate
^
^^
WE WILL NOT refuse to bargain collectively
3We
adopt the Administrative Law Judge's recommended Order as
W
ILNTrfs
obrancletvl
modified by his errata of March 16, 1981.
with Local 54 of the United Slate, Tile and
259 NLRB No. 63
BETTER BUILDING SUPPLY CORP.
469
Better Building Supply Corp., and Evergreen Roof-
Seattle, Washington, their officers, agents, succes-
ing, Inc., its alter ego and Local 54 of the
sors, and assigns, shall take the action set forth in
United Slate, Tile f
Composition Roofers,
the said recommended Order,' except that the at-
Damp and Wa t er pr oof
W orkers A ssocia t io n,
t ac h e d n o tic e i s substituted for that of the Adminis-
AFI,-00 Cases 19-CA-11908 and 19-CA-
trative Law Judge.
12035
riwemnhr
3,
1Q°14
I
n accordance with his dissent in Olympic Medical Corporation, 250
DeC~cember 3,1981NLRB
I46 (1980), Member Jenkins would award interest on the backpay
DECISION AND ORDER
d ue based on the formula set forth t herein.
BY MEMBERS FANNING, JENKINS, AND
APPENDIX
Z I M M E R M A N
NOTICE TO EMPLOYEES
On February
27,
1981,
Administrative Law
POSTED BY ORDER OF THE
Judge William J. Pannier III issued the attached
NATIONAL LABOR RELATIONS BOARD
Decision in this proceeding. Thereafter, Respond-
An Agency of the United States Government
ents filed exceptions and a supporting brief, and the
General Counsel filed a brief in support of the Ad-
After a hearing at which all sides had an opportu-
ministrative Law Judge's Decision.
nity to present evidence and state their positions,
Pursuant to the provisions of Section 3(b) of the
the National Labor Relations Board found that we
National Labor Relations Act, as amended, the Na-
have violated the National Labor Relations Act, as
tional Labor Relations Board has delegated its au-
amended, and has ordered us to post this notice.
thority in this proceeding to a three-member panel.
T
A
g
ees
fl
g
h
The Board has considered the record and the at-
T h e A c t S'^ employees the following rights:
tached Decision in light of the exceptions and
To engage in self-organization
briefs and has decided to affirm the rulings, find-
To form, join, or assist any union
ings,' and conclusions 2 of the Administrative Law
To bargain collectively through repre-
Judge and to adopt his recommended Order.3
sentatives of their own choice
ORDER
To e ngage in activities together for the
purpose of collective bargaining or other
Pursuant to Section 10(c) of the National Labor
mutual aid or protection
Relations Act, as amended, the National Labor Re-
To refrain from the exercise of any or all
lations Board adopts as its Order the recommended
such activities.
Order of the Administrative
Law Judge and
WE WILL NOT refuse to bargain collectively
hereby orders that the Respondents, Better Build-
with Local 54 of the United Slate, Tile &
ing Supply Co rp., a n d
Evergreen Roofing,
In c.,
Composition Roofers, Damp and Waterproof
' Respondents have excepted to certain credibility findings made by
Workers Association, AFL-CIO, as the exclu-
the Administrative Law Judge. It is the Board's established policy not to
sive Collective-bargaining representative of all
overrule an administrative law judge's resolutions with respect to credi-plnvpcs
in the fnllnwint annrnnriate unit:
bility unless the clear preponderance of all of the relevant evidence con-employees
in te
following appropriate Unit:
vinces us that the resolutions are incorrect. Standard Dry Wall Products
All roofers and waterproofers employed by
Inc, 91 NLRB 544 (1950), enfd. 188 F,2d 362 (3d Cir. 1951). We have
carefully examined the record and find no basis for reversing his findings.
Better Building Supply Corp., Evergreen
2We
fully agree with the Administrative Law Judge's conclusion that
Roofing, Inc., and their Subcontractors in
Respondent Evergreen Roofing, Inc., violated Sec. 8(aX5) by failing and
ti/
«L:_~*»_ C~'..-;- of Clall--
T.-CT"-
refusing to apply to its employees the collective-bargaminig agreement ex-
t h e Washington Counties Of Clallar,
Jeffer-
ecuted between Respondent Better Building Supply Corp. and the Charg-
son, King, Kitsap, Mason and Snohomish;
ing Party Union. We note that, under the Supreme Court's decision in
excluding
professional
employees, guards
South Prairie Construction Co. v. Local No 627. International Union of Op-
° .
, <*
, .
,.
,
erating Engineere
AFL-CIO, 425 U.S. 800 (1976). the fact that two or
a n d Supervisors as defined in the Act.
more entities constitute a single employer is not dispositive of the issue of117
W,..
NT r-i -_j
r
„
.„
1*1
whether each is bound to the collective-bargaining agreements of the
W
E
W I L L
N OT
fa i
a n d
re fu s e
t o appl
t h e
others. Rather, the test is whether, given the single-employer finding, the
terms and Conditions of Our collective-bargain-
employees of the separate companies constitute the appropriate unit or
ing agreement with Local 54 of the United
whether the employees of each individual company constitute distinct
and separate units. The criteria for finding a single employer are different
Slate, Tile & Composition Roofers, Damp and
from those for determining the appropriateness of the unit. Peter Kiewit
Waterproof Workers Association, AFL-CIO,
Sons' Co. and South Prairie Construction C., 231 NLRB 76 (1977). In the
to all employees
in the above-described bar-
presem case, the operations of both Respondents and the work of their
employees have been so intertwined as to render appropriate only a unit
gaining Unit, Without the Written Consent of
of employees of both Respondents and to preclude a finding of separate
that Union.
appropriate
^
^^
WE WILL NOT refuse to bargain collectively
3We
adopt the Administrative Law Judge's recommended Order as
W
ILNTrfs
obrancletvl
modified by his errata of March 16, 1981.
with Local 54 of the United Slate, Tile and
259 NLRB No. 63
BETTER BUILDING SUPPLY CORP.
469
Better Building Supply Corp., and Evergreen Roof-
Seattle, Washington, their officers, agents, succes-
ing, Inc., its alter ego and Local 54 of the
sors, and assigns, shall take the action set forth in
United Slate, Tile f
Composition Roofers,
the said recommended Order,' except that the at-
Damp and Wa t er pr oof
W orkers A ssocia t io n,
t ac h e d n o tic e i s substituted for that of the Adminis-
AFI,-00 Cases 19-CA-11908 and 19-CA-
trative Law Judge.
12035
riwemnhr
3,
1Q°14
I
n accordance with his dissent in Olympic Medical Corporation, 250
DeC~cember 3,1981NLRB
I46 (1980), Member Jenkins would award interest on the backpay
DECISION AND ORDER
d ue based on the formula set forth t herein.
BY MEMBERS FANNING, JENKINS, AND
APPENDIX
Z I M M E R M A N
NOTICE TO EMPLOYEES
On February
27,
1981,
Administrative Law
POSTED BY ORDER OF THE
Judge William J. Pannier III issued the attached
NATIONAL LABOR RELATIONS BOARD
Decision in this proceeding. Thereafter, Respond-
An Agency of the United States Government
ents filed exceptions and a supporting brief, and the
General Counsel filed a brief in support of the Ad-
After a hearing at which all sides had an opportu-
ministrative Law Judge's Decision.
nity to present evidence and state their positions,
Pursuant to the provisions of Section 3(b) of the
the National Labor Relations Board found that we
National Labor Relations Act, as amended, the Na-
have violated the National Labor Relations Act, as
tional Labor Relations Board has delegated its au-
amended, and has ordered us to post this notice.
thority in this proceeding to a three-member panel.
T
A
g
ees
fl
g
h
The Board has considered the record and the at-
T h e A c t S'^ employees the following rights:
tached Decision in light of the exceptions and
To engage in self-organization
briefs and has decided to affirm the rulings, find-
To form, join, or assist any union
ings,' and conclusions 2 of the Administrative Law
To bargain collectively through repre-
Judge and to adopt his recommended Order.3
sentatives of their own choice
ORDER
To e ngage in activities together for the
purpose of collective bargaining or other
Pursuant to Section 10(c) of the National Labor
mutual aid or protection
Relations Act, as amended, the National Labor Re-
To refrain from the exercise of any or all
lations Board adopts as its Order the recommended
such activities.
Order of the Administrative
Law Judge and
WE WILL NOT refuse to bargain collectively
hereby orders that the Respondents, Better Build-
with Local 54 of the United Slate, Tile &
ing Supply Co rp., a n d
Evergreen Roofing,
In c.,
Composition Roofers, Damp and Waterproof
' Respondents have excepted to certain credibility findings made by
Workers Association, AFL-CIO, as the exclu-
the Administrative Law Judge. It is the Board's established policy not to
sive Collective-bargaining representative of all
overrule an administrative law judge's resolutions with respect to credi-plnvpcs
in the fnllnwint annrnnriate unit:
bility unless the clear preponderance of all of the relevant evidence con-employees
in te
following appropriate Unit:
vinces us that the resolutions are incorrect. Standard Dry Wall Products
All roofers and waterproofers employed by
Inc, 91 NLRB 544 (1950), enfd. 188 F,2d 362 (3d Cir. 1951). We have
carefully examined the record and find no basis for reversing his findings.
Better Building Supply Corp., Evergreen
2We
fully agree with the Administrative Law Judge's conclusion that
Roofing, Inc., and their Subcontractors in
Respondent Evergreen Roofing, Inc., violated Sec. 8(aX5) by failing and
ti/
«L:_~*»_ C~'..-;- of Clall--
T.-CT"-
refusing to apply to its employees the collective-bargaminig agreement ex-
t h e Washington Counties Of Clallar,
Jeffer-
ecuted between Respondent Better Building Supply Corp. and the Charg-
son, King, Kitsap, Mason and Snohomish;
ing Party Union. We note that, under the Supreme Court's decision in
excluding
professional
employees, guards
South Prairie Construction Co. v. Local No 627. International Union of Op-
° .
, <*
, .
,.
,
erating Engineers AFL-CIO, 425 U.S. 800 (1976). the fact that two or
a n d Supervisors as defined in the Act.
more entities constitute a single employer is not dispositive of the issue of117
W,..
NT r-i -_j
r
„
.„
1*1
whether each is bound to the collective-bargaining agreements of the
W
E
W I L L
N OT
fa i
a n d
re fu s e
t o appl
t h e
others. Rather, the test is whether, given the single-employer finding, the
terms and Conditions of Our collective-bargain-
employees of the separate companies constitute the appropriate unit or
ing agreement with Local 54 of the United
whether the employees of each individual company constitute distinct
and separate units. The criteria for finding a single employer are different
Slate, Tile & Composition Roofers, Damp and
from those for determining the appropriateness of the unit. Peter Kiewit
Waterproof Workers Association, AFL-CIO,
Sons' Co. and South Prairie Construction C., 231 NLRB 76 (1977). In the
to all employees
in the above-described bar-
presem case, the operations of both Respondents and the work of their
employees have been so intertwined as to render appropriate only a unit
gaining Unit, Without the Written Consent of
of employees of both Respondents and to preclude a finding of separate
that Union.
appropriate
^
^^
WE WILL NOT refuse to bargain collectively
3We
adopt the Administrative Law Judge's recommended Order as
W
ILNTrfs
obrancletvl
modified by his errata of March 16, 1981.
with Local 54 of the United Slate, Tile and
259 NLRB No. 63
470
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Composition Roofers, Damp and Waterproof
Labor Relations Act, as amended, 29 U.S.C. §151, et
Workers Association, AFL-CIO, by refusing
seq., herein called the Act. On February 27, 1980, the
upon request to supply relevant information
said Regional Director issued a complaint and notice of
needed by it to represent employees in the
hearing in Case 19-CA-12035, based on an unfair labor
above-described bargaining unit.
practice charge filed on January 18, 1980, alleging addi-
W
tional violations of Section 8(a)(l) and (5) of the Act.
WE WILL NOT refuse to provide Local 54 of
Also on February 27, 1980, the Regional Director issued
the United Slate, Tile & Composition Roofers,
an order consolidating cases and notice of hearing, con-
Damp and Waterproof Workers Association,
solidating the two complaints for hearing and decision.
AFL-CIO, with requested information that is
All parties have been afforded full opportunity to appear,
relevant and necessary to the collective-bar-
to introduce evidence, to examine and cross-examine wit-
gaining process.
nesses, and to file briefs. Based upon the entire record,
WE WILL NOT in any other manner interfere
upon the briefs filed on behalf of the parties, and upon
with, restrain, or coerce you in the exercise of
my observation of the demeanor of the witnesses, I make
your rights under the National Labor Rela-
the following:
tions Act as set forth above.
FINDINGS OF FACT
WE WILL recognize and bargain collectively
with Local 54 of the United Slate, Tile &
I. JURISDICTION
Composition Roofers, Damp and Waterproof
Workers Assoiationofers, AFL-CIOmp
ands the exclu-rproof
Better Building Supply Corp., herein called Respond-
Workers Association, AFL-CIO, as the exclu
ent BBS,
and
Ever
green Roofing, Inc., its alter ego,
sive collective-bargaining representative of all
ent BBS, and Evergreen Roofing, Inc., its alter ego,
sive collective-barga
g representative
of all
herein called Respondent Evergreen, and herein collec-
employees in the above-described bargaining
tively called Respondents, are each Washington State
unit.
corporations, with an office and place of business at the
WE WILL apply the terms and conditions of
same location in Seattle, Washington, where they are en-
our current collective-bargaining
agreement
gaged as roofing contractors. There is no dispute regard-
with Local 54 of the United Slate, Tile &
ing the dollar volume of Respondents' operations. Thus,
Composition Roofers, Damp and Waterproof
it is admitted that, during the 12-month periods preced-
Workers Association, AFL-CIO, to all em-
ing issuance of each of the complaints, each of which is
ployees in the above-described bargaining unit.
conceded to be a representative period, Respondents, in
WE WILL provide Local 54 of the United
the course and conduct of their business operations, sold
Slate, Tile & Composition Roofers, Damp and
and shipped goods or provided services from within the
WaterprosAssociation, AFL-CIO,
State of Washington either directly to customers outside
Waterproof Workers Association, AFL-CIO,
that State, or to customers within the State of Washing-
with any and all requested information that is
ton which, in turn, were themselves engaged in interstate
relevant and necessary to the collective-bar-
commerce on some basis other than indirect inflow or
gaining process.
outflow. During those same 12-month periods, Respond-
WE WILL make whole all employees for any
ents, in the course and conduct of their business oper-
losses sustained on or after May 7, 1979, by
ations, purchased and caused to be transferred and deliv-
our failure to apply the terms and conditions
ered to their facilities within the State of Washington
of our collective-bargaining agreement with
goods and materials valued in excess of $50,000 which
Local 54 of the United Slate, Tile & Composi-
originated from sources outside the State of Washington.
tion Roofers, Damp and Waterproof Workers
Notwithstanding these admissions, Respondents denied
Association, AFL-CIO, to them, with interest.
the allegation that at all times material they have been a
single integrated business enterprise and a single employ-
er within the meaning of the Act, because they have
BETTER
BUILDING
SUPPLY
CORP.,
been affiliated business enterprises with common officers,
AND EVERGREEN ROOFING, INC., ITS
ownership, directors, management, and supervision; have
ALTER EGO
formulated and administered common labor policy affect-
ing employees of said operations; have shared common
DECISION
premises and facilities, common advertising, phone, sales,
STATEMENT
OF THE CA
and purchasing; have provided services for and made
sales, to each other; have interchanged personnel with
WILLIAM J. PANNIER III, Administrative Law Judge:
each other; and have held themselves out to the public as
This matter was heard by me in Seattle, Washington, on
a single integrated business enterprise. The record, how-
July 10, 11, and 22 through 25, 1980. On December 28,
ever, supports the conclusion that at all times material
1979, the Regional Director for Region 19 of the Nation-
Respondents have been a single integrated business enter-
al Labor Relations Board issued a complaint and notice
prise and a single employer within the meaning of Sec-
of hearing in Case 19-CA-11908, based on an unfair
tion 2(2) of the Act.
labor practice charge filed on November 7, 1979, alleg-
ing violations of Section 8(a)(l) and (5) of the National
' As amended at the hearing.
470
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Composition Roofers, Damp and Waterproof
Labor Relations Act, as amended, 29 U.S.C. §151, et
Workers Association, AFL-CIO, by refusing
seq., herein called the Act. On February 27, 1980, the
upon request to supply relevant information
said Regional Director issued a complaint and notice of
needed by it to represent employees in the
hearing in Case 19-CA-12035, based on an unfair labor
above-described bargaining unit.
practice charge filed on January 18, 1980, alleging addi-
WE WILL NOT refuse to provide Local 54 of
tional violations of Section 8(a)(l) and (5) of the Act.
W E W IL L
t
NOT
SltTe
& Composition Roof
Also on February 27, 1980, the Regional Director issued
the United Slate, Tile &t Composition Roofers,
an order consolidating cases and notice of hearing, con-
Damp and Waterproof Workers Association,
solidating the two complaints for hearing and decision.
AFL-CIO, with requested information that is
All parties have been afforded full opportunity to appear,
relevant and necessary to the collective-bar-
to introduce evidence, to examine and cross-examine wit-
gaining process.
nesses, and to file briefs. Based upon the entire record,
WE WILL NOT in any other manner interfere
upon the briefs filed on behalf of the parties, and upon
with, restrain, or coerce you in the exercise of
my observation of the demeanor of the witnesses, I make
your rights under the National Labor Rela-
the following:
tions Act as set forth above.
FA
,,, .
. .
.
„
.
,~~~~~~~FINDINGS
OF FACT
WE WILL recognize and bargain collectively
with Local 54 of the United Slate, Tile &
I. JURISDICTION
Composition Roofers, Damp and Waterproof.
„
Workers Association, AFL-CIO, as the exclu-
Better Building Supply Corp., herein called Respond-
Workers Association, AFL-CIO, as thatie exclul
ent BBS, and Evergreen Roofing, Inc., its alter ego,'
sive collective-bargaining representative of all
herein called Respondent Evergreen, and herein collec-
employees in the above-described bargaining
tively called Respondents, are each Washington State
unit.
corporations, with an office and place of business at the
WE WILL apply the terms and conditions of
same location in Seattle, Washington, where they are en-
our current collective-bargaining
agreement
gaged as roofing contractors. There is no dispute regard-
with Local 54 of the United Slate, Tile &
ing the dollar volume of Respondents' operations. Thus,
Composition Roofers, Damp and Waterproof
it is admitted that, during the 12-month periods preced-
Workers Association, AFL-CIO, to all em-
ing issuance of each of the complaints, each of which is
ployees in the above-described bargaining unit.
conceded to be a representative period, Respondents, in
WE WILL provide Local 54 of the United
the cour se and conduct of thei r business operations, sold
Slate, Tile & Composition Roofers, Damp and
and shipped goods or provided services from within the
Waterproof Workers Association, AFL-CIO,
State of Washington either directly to customers outside
Waterproot workers Association, AM^-CIO,
that State, or to customers within the State of Washing-
with any and all requested information that is
ton which, in turn, were themselves engaged in interstate
relevant and necessary to the collective-bar-
commerce on some basis other than indirect inflow or
gaining process.
outflow. During those same 12-month periods, Respond-
WE WILL make whole all employees for any
ents, in the course and conduct of their business oper-
losses sustained on or after May 7, 1979, by
ations, purchased and caused to be transferred and deliv-
our failure to apply the terms and conditions
ered to their facilities within the State of Washington
of our collective-bargaining agreement with
goods and materials valued in excess of $50,000 which
Local 54 of the United Slate, Tile & Composi-
originated from sources outside the State of Washington.
tion Roofers, Damp and Waterproof Workers
Notwithstanding these admissions, Respondents denied
Association, AFL-CIO, to them, with interest.
the allegation that at all times material they have been a
single integrated business enterprise and a single employ-
er within the meaning of the Act, because they have
BETTER
BUILDING
SUPPLY
CORP.,
been affiliated business enterprises with common officers,
AND EVERGREEN ROOFING, INC., ITS
ownership, directors, management, and supervision; have
ALTER EGO
formulated and administered common labor policy affect-
ing employees of said operations; have shared common
DECISION
premises and facilities, common advertising, phone, sales,
STATEMENT OF THE CASE
a nd Purchasing; have provided services for and made
sales, to each other; have interchanged personnel with
WILLIAM J. PANNIER III, Administrative Law Judge:
each other; and have held themselves out to the public as
This matter was heard by me in Seattle, Washington, on
a single integrated business enterprise. The record, how-
July 10, 11, and 22 through 25, 1980. On December 28,
ever, supports the conclusion that at all times material
1979, the Regional Director for Region 19 of the Nation-
Respondents have been a single integrated business enter-
al Labor Relations Board issued a complaint and notice
prise and a single employer within the meaning of Sec-
of hearing in Case 19-CA-11908, based on an unfair
tion 2(2) of the Act.
labor practice charge filed on November 7, 1979, alleg-
ing violations of Section 8(a)(l) and (5) of the National
As amended at the hearing.
470
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Composition Roofers, Damp and Waterproof
Labor Relations Act, as amended, 29 U.S.C. §151, et
Workers Association, AFL-CIO, by refusing
seq., herein called the Act. On February 27, 1980, the
upon request to supply relevant information
said Regional Director issued a complaint and notice of
needed by it to represent employees in the
hearing in Case 19-CA-12035, based on an unfair labor
above-described bargaining unit.
practice charge filed on January 18, 1980, alleging addi-
WE WILL NOT refuse to provide Local 54 of
tional violations of Section 8(a)(l) and (5) of the Act.
W E W IL L
t
NOT
SltTe
& Composition Roof
Also on February 27, 1980, the Regional Director issued
the United Slate, Tile &t Composition Roofers,
an order consolidating cases and notice of hearing, con-
Damp and Waterproof Workers Association,
solidating the two complaints for hearing and decision.
AFL-CIO, with requested information that is
All parties have been afforded full opportunity to appear,
relevant and necessary to the collective-bar-
to introduce evidence, to examine and cross-examine wit-
gaining process.
nesses, and to file briefs. Based upon the entire record,
WE WILL NOT in any other manner interfere
upon the briefs filed on behalf of the parties, and upon
with, restrain, or coerce you in the exercise of
my observation of the demeanor of the witnesses, I make
your rights under the National Labor Rela-
the following:
tions Act as set forth above.
FA
,,, .
. .
.
„
.
,~~~~~~~FINDINGS
OF FACT
WE WILL recognize and bargain collectively
with Local 54 of the United Slate, Tile &
I. JURISDICTION
Composition Roofers, Damp and Waterproof.
„
Workers Association, AFL-CIO, as the exclu-
Better Building Supply Corp., herein called Respond-
Workers Association, AFL-CIO, as thatie exclul
ent BBS, and Evergreen Roofing, Inc., its alter ego,'
sive collective-bargaining representative of all
herein called Respondent Evergreen, and herein collec-
employees in the above-described bargaining
tively called Respondents, are each Washington State
unit.
corporations, with an office and place of business at the
WE WILL apply the terms and conditions of
same location in Seattle, Washington, where they are en-
our current collective-bargaining
agreement
gaged as roofing contractors. There is no dispute regard-
with Local 54 of the United Slate, Tile &
ing the dollar volume of Respondents' operations. Thus,
Composition Roofers, Damp and Waterproof
it is admitted that, during the 12-month periods preced-
Workers Association, AFL-CIO, to all em-
ing issuance of each of the complaints, each of which is
ployees in the above-described bargaining unit.
conceded to be a representative period, Respondents, in
WE WILL provide Local 54 of the United
the cour se and conduct of thei r business operations, sold
Slate, Tile & Composition Roofers, Damp and
and shipped goods or provided services from within the
Waterproof Workers Association, AFL-CIO,
State of Washington either directly to customers outside
Waterproot workers Association, AM^-CIO,
that State, or to customers within the State of Washing-
with any and all requested information that is
ton which, in turn, were themselves engaged in interstate
relevant and necessary to the collective-bar-
commerce on some basis other than indirect inflow or
gaining process.
outflow. During those same 12-month periods, Respond-
WE WILL make whole all employees for any
ents, in the course and conduct of their business oper-
losses sustained on or after May 7, 1979, by
ations, purchased and caused to be transferred and deliv-
our failure to apply the terms and conditions
ered to their facilities within the State of Washington
of our collective-bargaining agreement with
goods and materials valued in excess of $50,000 which
Local 54 of the United Slate, Tile & Composi-
originated from sources outside the State of Washington.
tion Roofers, Damp and Waterproof Workers
Notwithstanding these admissions, Respondents denied
Association, AFL-CIO, to them, with interest.
the allegation that at all times material they have been a
single integrated business enterprise and a single employ-
er within the meaning of the Act, because they have
BETTER
BUILDING
SUPPLY
CORP.,
been affiliated business enterprises with common officers,
AND EVERGREEN ROOFING, INC., ITS
ownership, directors, management, and supervision; have
ALTER EGO
formulated and administered common labor policy affect-
ing employees of said operations; have shared common
DECISION
premises and facilities, common advertising, phone, sales,
STATEMENT OF THE CASE
a nd Purchasing; have provided services for and made
sales, to each other; have interchanged personnel with
WILLIAM J. PANNIER III, Administrative Law Judge:
each other; and have held themselves out to the public as
This matter was heard by me in Seattle, Washington, on
a single integrated business enterprise. The record, how-
July 10, 11, and 22 through 25, 1980. On December 28,
ever, supports the conclusion that at all times material
1979, the Regional Director for Region 19 of the Nation-
Respondents have been a single integrated business enter-
al Labor Relations Board issued a complaint and notice
prise and a single employer within the meaning of Sec-
of hearing in Case 19-CA-11908, based on an unfair
tion 2(2) of the Act.
labor practice charge filed on November 7, 1979, alleg-
ing violations of Section 8(a)(l) and (5) of the National
As amended at the hearing.
470
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Composition Roofers, Damp and Waterproof
Labor Relations Act, as amended, 29 U.S.C. §151, et
Workers Association, AFL-CIO, by refusing
seq., herein called the Act. On February 27, 1980, the
upon request to supply relevant information
said Regional Director issued a complaint and notice of
needed by it to represent employees in the
hearing in Case 19-CA-12035, based on an unfair labor
above-described bargaining unit.
practice charge filed on January 18, 1980, alleging addi-
WE WILL NOT refuse to provide Local 54 of
tional violations of Section 8(a)(l) and (5) of the Act.
W E W IL L
t
NOT
SltTe
& Composition Roof
Also on February 27, 1980, the Regional Director issued
the United Slate, Tile &t Composition Roofers,
an order consolidating cases and notice of hearing, con-
Damp and Waterproof Workers Association,
solidating the two complaints for hearing and decision.
AFL-CIO, with requested information that is
All parties have been afforded full opportunity to appear,
relevant and necessary to the collective-bar-
to introduce evidence, to examine and cross-examine wit-
gaining process.
nesses, and to file briefs. Based upon the entire record,
WE WILL NOT in any other manner interfere
upon the briefs filed on behalf of the parties, and upon
with, restrain, or coerce you in the exercise of
my observation of the demeanor of the witnesses, I make
your rights under the National Labor Rela-
the following:
tions Act as set forth above.
FA
,,, .
. .
.
„
.
,~~~~~~~FINDINGS
OF FACT
WE WILL recognize and bargain collectively
with Local 54 of the United Slate, Tile &
I. JURISDICTION
Composition Roofers, Damp and Waterproof.
„
Workers Association, AFL-CIO, as the exclu-
Better Building Supply Corp., herein called Respond-
Workers Association, AFL-CIO, as thatie exclul
ent BBS, and Evergreen Roofing, Inc., its alter ego,'
sive collective-bargaining representative of all
herein called Respondent Evergreen, and herein collec-
employees in the above-described bargaining
tively called Respondents, are each Washington State
unit.
corporations, with an office and place of business at the
WE WILL apply the terms and conditions of
same location in Seattle, Washington, where they are en-
our current collective-bargaining
agreement
gaged as roofing contractors. There is no dispute regard-
with Local 54 of the United Slate, Tile &
ing the dollar volume of Respondents' operations. Thus,
Composition Roofers, Damp and Waterproof
it is admitted that, during the 12-month periods preced-
Workers Association, AFL-CIO, to all em-
ing issuance of each of the complaints, each of which is
ployees in the above-described bargaining unit.
conceded to be a representative period, Respondents, in
WE WILL provide Local 54 of the United
th e co u r se an d co n duct of their business operations, sold
Slate, Tile & Composition Roofers, Damp and
and shipped goods or provided services from within the
Waterproof Workers Association, AFL-CIO,
State of Washington either directly to customers outside
Waterproot workers Association, Ar'L-CO,
that State, or to customers within the State of Washing-
with any and all requested information that is
ton which, in turn, were themselves engaged in interstate
relevant and necessary to the collective-bar-
commerce on some basis other than indirect inflow or
gaining process.
outflow. During those same 12-month periods, Respond-
WE WILL make whole all employees for any
ents, in the course and conduct of their business oper-
losses sustained on or after May 7, 1979, by
ations, purchased and caused to be transferred and deliv-
our failure to apply the terms and conditions
ered to their facilities within the State of Washington
of our collective-bargaining agreement with
goods and materials valued in excess of $50,000 which
Local 54 of the United Slate, Tile & Composi-
originated from sources outside the State of Washington.
tion Roofers, Damp and Waterproof Workers
Notwithstanding these admissions, Respondents denied
Association, AFL-CIO, to them, with interest.
th e allegation that at all times material they have been a
single integrated business enterprise and a single employ-
er within the meaning of the Act, because they have
BETTER
BUILDING
SUPPLY
CORP.,
been affiliated business enterprises with common officers,
AND EVERGREEN ROOFING, INC., ITS
ownership, directors, management, and supervision; have
ALTER EGO
formulated and administered common labor policy affect-
ing employees of said operations; have shared common
DECISION
premises and facilities, common advertising, phone, sales,
STATEMENT OF THE CASE
a nd Purchasing; have provided services for and made
sales, to each other; have interchanged personnel with
WILLIAM J. PANNIER III, Administrative Law Judge:
each other; and have held themselves out to the public as
This matter was heard by me in Seattle, Washington, on
a single integrated business enterprise. The record, how-
July 10, 11, and 22 through 25, 1980. On December 28,
ever, supports the conclusion that at all times material
1979, the Regional Director for Region 19 of the Nation-
Respondents have been a single integrated business enter-
al Labor Relations Board issued a complaint and notice
prise and a single employer within the meaning of Sec-
of hearing in Case 19-CA-11908, based on an unfair
tion 2(2) of the Act.
labor practice charge filed on November 7, 1979, alleg-
ing violations of Section 8(a)(l) and (5) of the National
As amended at the hearing.
BETTER BUILDING SUPPLY CORP.
471
Both Respondents were formed during the mid-1950's.
phased in, to replace the hot tar system, by Respondent
So far as the record discloses, the stock of each has
BBS when, in 1977 or 1978, the trust fund department,
always been owned primarily, if not wholly, by Gerald
acting pursuant to Respondent BBS's collective-bargain-
Mylan and his immediate family. From its inception, Re-
ing agreement with the Union, attached Respondent
spondent Evergreen engaged in all facets of the roofing
BBS's bond and bank account in connection with a dis-
business, using what is referred to as the hot tar process
pute concerning payment of fringe benefits. This had the
for applying roofs.2 Respondent BBS, however, remained
effect of effectively terminating Respondent BBS's oper-
dormant after its formation, conducting no operations
ations in the six- county area of west Washington. Nev-
and being only a corporate shell.
ertheless, Mylan testified that Respondent BBS continued
In the late 1960's or very early 1970's, Mylan decided
operations in Oregon until "'78 or early '79," when it en-
to bid for roofing work on certain houses being remod-
gaged in "[c]old application of re-roofs." Moreover, Re-
eled under the sponsorship of the United States Depart-
spondent BBS's Washington business license did not
ment of Housing and Urban Development. Discovering
expire until June 30, 1980, shortly before commencement
that his success in this venture would be enhanced if he
of the hearing in this matter.
bid to do all remodeling work on those homes, he se-
Once Respondent BBS's bond had been attached,
cured a general contractors license for Respondent BBS
Mylan again activated Respondent Evergreen to com-
and commenced bidding under its name. Concomitantly,
plete conversion to the cold processing system and to
Respondent Evergreen ceased conducting operations, be-
contract for performing roofing working utilizing that
coming dormant from 1971 to 1977. During that period,
system. Initially, Respondent Evergreen used employees
Respondent BBS became a party to two successive col-
to perform this work though ultimately it substituted
lective-bargaining agreements with Local 54 of the
what it contends are independent contractors for those
United Slate, Tile & Composition Roofers, Damp and
employees in the west Washington area.4 Respondent
Waterproof Workers Association, AFL-CIO, herein
Evergreen has continued to employ employees outside of
called the Union, the latest of which is still effective.
that area. For example, at the time of the hearing it had
These agreements covered all roofers and waterproofers
three crews working in the Portland, Oregon, area. Ap-
in the six west Washington Counties of Clallam, Jeffer-
parently, these three crews are performing the same type
son, King, Kitsap, Mason, and Snohomish.
of work as had been performed by the crews employed
Respondent BBS's operations, however, were not con-
by Respondent BBS in the Portland, Oregon, area.
fined to the west Washington geographic area. It bid on
With regard to the allegation that Respondents are a
and obtained work on Government projects as far from
single employing entity, the factors to be considered in
that area as Albuquerque, New Mexico, and Denver,
resolving whether two nominally separate and distinct
Colorado. Moreover, commencing in approximately 1974
business entities are a single employer, within the mean-
or 1975, Respondent BBS's operations began to involve
ing of Section 2(2) of the Act, "are (1) interrelation of
principally performing roofing work on Government
operations, (2) common management, (3) centralized con-
facilities, rather than general remodeling. Thus, Mylan
trol of labor relations, and (4) common ownership."
testified:
N.L.R.B. v. Don Burgess Construction Corporation, d/b/a
Burgess Construction, 596 F.2d 378, 384 (9th Cir. 1979),
Q. When you were working as Better Building
cert. denied 444 U.S. 940 (1979); see also N.LR.B. v. Big
Supply and let's address about 1974 or 1975 now,
Bear Supermarkets #3 and its alter ego Richard Holmes,
did you get back into roofing work as such?
640 F.2d 924 (9th Cir. 1980). Here, the stock of Re-
A. Yes. When the HUD started to dissipate or
spondents is held by Mylan and his immediate family.
dry up then we went into government work.
These individuals also serve as the only directors and of-
Q. When you say government work, do you
ficers of Respondents. Further, while Mylan has used
mean various government buildings?
different individuals to assign work to employees of Re-
A. Yes.
spondents, the history of each of them and the descrip-
tions of how they operate demonstrate that he has re-
On its income tax returns for calendar years 1978 and
tained and possessed control over their labor relations
1979, Respondent BBS listed its principal business activi-
policies throughout their history. Indeed, in their brief,
ty as being a contractor and its product or service as
Respondents acknowledge that [lit is undisputed that
being roofing.
Better Building was, and Evergreen is, owned and oper-
The mid-1970's was also a period during which an-
ated by the Mylans and that common ownership and
other development of significance began to emerge.
control are facts in this case."
Mylan testified that he and his son had begun experi-
menting with development of a polyester cold processing
'As will be discussed infra, the nature of the relationship between Re-
system for installing roofs.3 This system was being
spondent Evergreen and these contractors is the crux of the allegations of
refusal to bargain in this matter. For present purposes, however, it suf-
fices to note that Mylan admitted that these contractors perform the same
'Basically,
this process consists of laying tar paper and then pouring
work as had the roofing employees whom they succeeded and, further,
hot tar over it.
while he equivocated at some points regarding the matter, that Mylan
' In essence, this process involves spraying cutback on the roof, then
conceded that, after Respondent Evergreen had resumed operations,
laying a polyester mat across it and then spraying more cutback over
there had been a period of time when it had employed employees, as had
that.
Respondent BBS, to install roofs using the cold process system.
BETTER BUILDING SUPPLY CORP.
471
Both Respondents were formed during the mid-1950's.
phased in, to replace the hot tar system, by Respondent
So far as the record discloses, the stock of each has
BBS when, in 1977 or 1978, the trust fund department,
always been owned primarily, if not wholly, by Gerald
acting pursuant to Respondent BBS's collective-bargain-
Mylan and his immediate family. From its inception, Re-
ing agreement with the Union, attached Respondent
spondent Evergreen engaged in all facets of the roofing
BBS's bond and bank account in connection with a dis-
business, using what is referred to as the hot tar process
pute concerning payment of fringe benefits. This had the
for applying roofs.' Respondent BBS, however, remained
effect of effectively terminating Respondent BBS's oper-
dormant after its formation, conducting no operations
ations in the six- county area of west Washington. Nev-
and being only a corporate shell.
ertheless, Mylan testified that Respondent BBS continued
In the late 1960's or very early 1970's, Mylan decided
operations in Oregon until ."78 or early '79," when it en-
to bid for roofing work on certain houses being remod-
gaged in "[c]old application of re-roofs." Moreover, Re-
eled under the sponsorship of the United States Depart-
spondent BBS's Washington business license did not
ment of Housing and Urban Development. Discovering
expire until June 30, 1980, shortly before commencement
that his success in this venture would be enhanced if he
of the hearing in this matter.
bid to do all remodeling work on those homes, he se-
Once Respondent BBS's bond had been attached,
cured a general contractors license for Respondent BBS
Mylan again activated Respondent Evergreen to com-
and commenced bidding under its name. Concomitantly,
plete conversion to the cold processing system and to
Respondent Evergreen ceased conducting operations, be-
contract for performing roofing working utilizing that
coming dormant from 1971 to 1977. During that period,
system. Initially, Respondent Evergreen used employees
Respondent BBS became a party to two successive col-
to perform this work though ultimately it substituted
lective-bargaining agreements with Local 54 of the
w h at it contends are independent contractors for those
United Slate, Tile & Composition Roofers, Damp and
employees in the west Washington area. 4 Respondent
Waterproof Workers Association, AFL-CIO, herein
Evergreen has continued to employ employees outside of
called the Union, the latest of which is still effective,.
that area. For example, at the time of the hearing it had
These agreements covered all roofers and waterproofers
three crews working in the Portland, Oregon, area. Ap-
in the six west Washington Counties of Clallam, Jeffer-
parently, these three crews are performing the same type
son, King, Kitsap, Mason, and Snohomish.
of work as had been performed by the crews employed
Respondent BBS's operations, however, were not con-
by Respondent BBS in the Portland, Oregon, area.
fined to the west Washington geographic area. It bid on
With regard to the allegation that Respondents are a
and obtained work on Government projects as far from
single employing entity, the factors to be considered in
that area as Albuquerque, New Mexico, and Denver,
resolving whether two nominally separate and distinct
Colorado. Moreover, commencing in approximately 1974
business entities are a single employer, within the mean-
or 1975, Respondent BBS's operations began to involve
ing of Section 2(2) of the Act, "are (1) interrelation of
principally performing roofing work on Government
operations, (2) common management, (3) centralized con-
facilities, rather than general remodeling. Thus, Mylan
trol of labor relations, and (4) common ownership."
testified:
N.L.R.B. v. Don Burgess Construction Corporation, d/b/a
Burgess Construction, 596 F.2d 378, 384 (9th Cir. 1979),
Q. When you were working as Better Building
cert. denied 444 U.S. 940 (1979); see also N.LR.B. v. Big
Supply and let's address about 1974 or 1975 now,
Bear Supermarkets #3 and its alter ego Richard Holmes,
did you get back into roofing work as such?
640 F.2d 924 (9th Cir. 1980). Here, the stock of Re-
A. Yes. When the HUD started to dissipate or
spondents is held by Mylan and his immediate family.
dry up then we went into government work.
These individuals also serve as the only directors and of-
Q. When you say government work, do you
ficers of Respondents. Further, while Mylan has used
mean various government buildings?
different individuals to assign work to employees of Re-
A. Yes.
spondents, the history of each of them and the descrip-
tions of how they operate demonstrate that he has re-
On its income tax returns for calendar years 1978 and
tained and possessed control over their labor relations
1979, Respondent BBS listed its principal business activi-
policies throughout their history. Indeed, in their brief,
ty as being a contractor and its product or service as
Respondents acknowledge that [i]t is undisputed that
being roofing.
Better Building was, and Evergreen is, owned and oper-
The mid-1970's was also a period during which an-
ated by the Mylans and that common ownership and
other development of significance began to emerge.
control are facts in this case."
Mylan testified that he and his son had begun experi-
menting with development of a polyester cold processing
A s wi"l be discussed infra, the nature of the relationship between Re-
system for installing roofs.. This system was being
Lpondent Evergreen and these contractors is the crux of the allegations of
system or instlling
rofs .
This sstem
wa
being
refusal to bargain in this matter. For present purposes, however, it suf-
-fics to note that Mylan admitted that these contractors perform the same
'Basically, this process consists of laying tar paper and then pouring
work as had the roofing employees whom they succeeded and, further,
hot tar over it.
while he equivocated at some points regarding the matter, that Mylan
I In essence, this process involves spraying cutback on the roof, then
conceded that, after Respondent Evergreen had resumed operations,
laying a polyester mat across it and then spraying more cutback over
there had been a period of time when it had employed employees, as had
that.
Respondent BBS, to install roofs using the cold process system.
BETTER BUILDING SUPPLY CORP.
471
Both Respondents were formed during the mid-1950's.
phased in, to replace the hot tar system, by Respondent
So far as the record discloses, the stock of each has
BBS when, in 1977 or 1978, the trust fund department,
always been owned primarily, if not wholly, by Gerald
acting pursuant to Respondent BBS's collective-bargain-
Mylan and his immediate family. From its inception, Re-
ing agreement with the Union, attached Respondent
spondent Evergreen engaged in all facets of the roofing
BBS's bond and bank account in connection with a dis-
business, using what is referred to as the hot tar process
pute concerning payment of fringe benefits. This had the
for applying roofs.' Respondent BBS, however, remained
effect of effectively terminating Respondent BBS's oper-
dormant after its formation, conducting no operations
ations in the six- county area of west Washington. Nev-
and being only a corporate shell.
ertheless, Mylan testified that Respondent BBS continued
In the late 1960's or very early 1970's, Mylan decided
operations in Oregon until ."78 or early '79," when it en-
to bid for roofing work on certain houses being remod-
gaged in "[c]old application of re-roofs." Moreover, Re-
eled under the sponsorship of the United States Depart-
spondent BBS's Washington business license did not
ment of Housing and Urban Development. Discovering
expire until June 30, 1980, shortly before commencement
that his success in this venture would be enhanced if he
of the hearing in this matter.
bid to do all remodeling work on those homes, he se-
Once Respondent BBS's bond had been attached,
cured a general contractors license for Respondent BBS
Mylan again activated Respondent Evergreen to com-
and commenced bidding under its name. Concomitantly,
plete conversion to the cold processing system and to
Respondent Evergreen ceased conducting operations, be-
contract for performing roofing working utilizing that
coming dormant from 1971 to 1977. During that period,
system. Initially, Respondent Evergreen used employees
Respondent BBS became a party to two successive col-
to perform this work though ultimately it substituted
lective-bargaining agreements with Local 54 of the
wh at it contends are independent contractors for those
United Slate, Tile & Composition Roofers, Damp and
employees in the west Washington area. 4 Respondent
Waterproof Workers Association, AFL-CIO, herein
Evergreen has continued to employ employees outside of
called the Union, the latest of which is still effective,.
that area. For example, at the time of the hearing it had
These agreements covered all roofers and waterproofers
three crews working in the Portland, Oregon, area. Ap-
in the six west Washington Counties of Clallam, Jeffer-
parently, these three crews are performing the same type
son, King, Kitsap, Mason, and Snohomish.
of work as had been performed by the crews employed
Respondent BBS's operations, however, were not con-
by Respondent BBS in the Portland, Oregon, area.
fined to the west Washington geographic area. It bid on
With regard to the allegation that Respondents are a
and obtained work on Government projects as far from
single employing entity, the factors to be considered in
that area as Albuquerque, New Mexico, and Denver,
resolving whether two nominally separate and distinct
Colorado. Moreover, commencing in approximately 1974
business entities are a single employer, within the mean-
or 1975, Respondent BBS's operations began to involve
ing of Section 2(2) of the Act, "are (1) interrelation of
principally performing roofing work on Government
operations, (2) common management, (3) centralized con-
facilities, rather than general remodeling. Thus, Mylan
trol of labor relations, and (4) common ownership."
testified:
N.L.R.B. v. Don Burgess Construction Corporation, d/b/a
Burgess Construction, 596 F.2d 378, 384 (9th Cir. 1979),
Q. When you were working as Better Building
cert. denied 444 U.S. 940 (1979); see also N.LR.B. v. Big
Supply and let's address about 1974 or 1975 now,
Bear Supermarkets #3 and its alter ego Richard Holmes,
did you get back into roofing work as such?
640 F.2d 924 (9th Cir. 1980). Here, the stock of Re-
A. Yes. When the HUD started to dissipate or
spondents is held by Mylan and his immediate family.
dry up then we went into government work.
These individuals also serve as the only directors and of-
Q. When you say government work, do you
ficers of Respondents. Further, while Mylan has used
mean various government buildings?
different individuals to assign work to employees of Re-
A. Yes.
spondents, the history of each of them and the descrip-
tions of how they operate demonstrate that he has re-
On its income tax returns for calendar years 1978 and
tained and possessed control over their labor relations
1979, Respondent BBS listed its principal business activi-
policies throughout their history. Indeed, in their brief,
ty as being a contractor and its product or service as
Respondents acknowledge that [i]t is undisputed that
being roofing.
Better Building was, and Evergreen is, owned and oper-
The mid-1970's was also a period during which an-
ated by the Mylans and that common ownership and
other development of significance began to emerge.
control are facts in this case."
Mylan testified that he and his son had begun experi-
menting with development of a polyester cold processing
A s wi"l be discussed infra, the nature of the relationship between Re-
system for installing roofs.. This system was being
Lpondent Evergreen and these contractors is the crux of the allegations of
system or instlling
rofs .
This sstem
wa
being
refusal to bargain in this matter. For present purposes, however, it suf-
-fles to note that Mylan admitted that these contractors perform the same
'Basically, this process consists of laying tar paper and then pouring
work as had the roofing employees whom they succeeded and, further,
hot tar over it.
while he equivocated at some points regarding the matter, that Mylan
I In essence, this process involves spraying cutback on the roof, then
conceded that, after Respondent Evergreen had resumed operations,
laying a polyester mat across it and then spraying more cutback over
there had been a period of time when it had employed employees, as had
that.
Respondent BBS, to install roofs using the cold process system.
BETTER BUILDING SUPPLY CORP.
471
Both Respondents were formed during the mid-1950's.
phased in, to replace the hot tar system, by Respondent
So far as the record discloses, the stock of each has
BBS when, in 1977 or 1978, the trust fund department,
always been owned primarily, if not wholly, by Gerald
acting pursuant to Respondent BBS's collective-bargain-
Mylan and his immediate family. From its inception, Re-
ing agreement with the Union, attached Respondent
spondent Evergreen engaged in all facets of the roofing
BBS's bond and bank account in connection with a dis-
business, using what is referred to as the hot tar process
pute concerning payment of fringe benefits. This had the
for applying roofs.' Respondent BBS, however, remained
effect of effectively terminating Respondent BBS's oper-
dormant after its formation, conducting no operations
ations in the six- county area of west Washington. Nev-
and being only a corporate shell.
ertheless, Mylan testified that Respondent BBS continued
In the late 1960's or very early 1970's, Mylan decided
operations in Oregon until ."78 or early '79," when it en-
to bid for roofing work on certain houses being remod-
gaged in "[c]old application of re-roofs." Moreover, Re-
eled under the sponsorship of the United States Depart-
spondent BBS's Washington business license did not
ment of Housing and Urban Development. Discovering
expire until June 30, 1980, shortly before commencement
that his success in this venture would be enhanced if he
of the hearing in this matter.
bid to do all remodeling work on those homes, he se-
Once Respondent BBS's bond had been attached,
cured a general contractors license for Respondent BBS
Mylan again activated Respondent Evergreen to com-
and commenced bidding under its name. Concomitantly,
plete conversion to the cold processing system and to
Respondent Evergreen ceased conducting operations, be-
contract for performing roofing working utilizing that
coming dormant from 1971 to 1977. During that period,
system. Initially, Respondent Evergreen used employees
Respondent BBS became a party to two successive col-
to perform this work though ultimately it substituted
lective-bargaining agreements with Local 54 of the
wh at it contends are independent contractors for those
United Slate, Tile & Composition Roofers, Damp and
employees in the west Washington area. 4 Respondent
Waterproof Workers Association, AFL-CIO, herein
Evergreen has continued to employ employees outside of
called the Union, the latest of which is still effective,.
that area. For example, at the time of the hearing it had
These agreements covered all roofers and waterproofers
three crews working in the Portland, Oregon, area. Ap-
in the six west Washington Counties of Clallam, Jeffer-
parently, these three crews are performing the same type
son, King, Kitsap, Mason, and Snohomish.
of work as had been performed by the crews employed
Respondent BBS's operations, however, were not con-
by Respondent BBS in the Portland, Oregon, area.
fined to the west Washington geographic area. It bid on
With regard to the allegation that Respondents are a
and obtained work on Government projects as far from
single employing entity, the factors to be considered in
that area as Albuquerque, New Mexico, and Denver,
resolving whether two nominally separate and distinct
Colorado. Moreover, commencing in approximately 1974
business entities are a single employer, within the mean-
or 1975, Respondent BBS's operations began to involve
ing of Section 2(2) of the Act, "are (1) interrelation of
principally performing roofing work on Government
operations, (2) common management, (3) centralized con-
facilities, rather than general remodeling. Thus, Mylan
trol of labor relations, and (4) common ownership."
testified:
N.L.R.B. v. Don Burgess Construction Corporation, d/b/a
Burgess Construction, 596 F.2d 378, 384 (9th Cir. 1979),
Q. When you were working as Better Building
cert. denied 444 U.S. 940 (1979); see also N.LR.B. v. Big
Supply and let's address about 1974 or 1975 now,
Bear Supermarkets #3 and its alter ego Richard Holmes,
did you get back into roofing work as such?
640 F.2d 924 (9th Cir. 1980). Here, the stock of Re-
A. Yes. When the HUD started to dissipate or
spondents is held by Mylan and his immediate family.
dry up then we went into government work.
These individuals also serve as the only directors and of-
Q. When you say government work, do you
ficers of Respondents. Further, while Mylan has used
mean various government buildings?
different individuals to assign work to employees of Re-
A. Yes.
spondents, the history of each of them and the descrip-
tions of how they operate demonstrate that he has re-
On its income tax returns for calendar years 1978 and
tained and possessed control over their labor relations
1979, Respondent BBS listed its principal business activi-
policies throughout their history. Indeed, in their brief,
ty as being a contractor and its product or service as
Respondents acknowledge that [i]t is undisputed that
being roofing.
Better Building was, and Evergreen is, owned and oper-
The mid-1970's was also a period during which an-
ated by the Mylans and that common ownership and
other development of significance began to emerge.
control are facts in this case."
Mylan testified that he and his son had begun experi-
menting with development of a polyester cold processing
A s wi"l be discussed infra, the nature of the relationship between Re-
system for installing roofs.. This system was being
Lpondent Evergreen and these contractors is the crux of the allegations of
system or instlling
rofs .
This sstem
wa
being
refusal to bargain in this matter. For present purposes, however, it suf-
-fles to note that Mylan admitted that these contractors perform the same
'Basically, this process consists of laying tar paper and then pouring
work as had the roofing employees whom they succeeded and, further,
hot tar over it.
while he equivocated at some points regarding the matter, that Mylan
I In essence, this process involves spraying cutback on the roof, then
conceded that, after Respondent Evergreen had resumed operations,
laying a polyester mat across it and then spraying more cutback over
there had been a period of time when it had employed employees, as had
that.
Respondent BBS, to install roofs using the cold process system.
472
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
With respect to the existence of interrelated oper-
spondent BBS became a party. Moreover, Respondents
ations, it is true that Respondent BBS was licensed as a
have ignored the Union's requests that they do so. Aside
general contractor whereas Respondent Evergreen is li-
from the argument that Respondents are separate em-
censed to perform only roofing work and, further, that
ployers, rejected above, Respondents base their refusal to
Respondent Evergreen does its roofing work by means
continue honoring that agreement upon the relationship
of the polyester cold process system. Yet, these hardly
between Respondent Evergreen and the applicators-
are differences of substance. For, as set forth above, Re-
those who install the roofs.
spondent BBS, however licensed, had been performing
As set forth above, when Respondent Evergreen re-
primarily roofing work after the HUD remodeling work
sumed operations, it employed its own employees initial-
had begun to "dissipate or dry up," and, as its income
ly. However, within a short span of time, it changed the
tax returns disclose, had been listing roofing as its pri-
nature of that relationship so that some of the applicators
mary business before it was completely deactivated fol-
were reclassified as subcontractors. They, then, retained
lowing attachment of its bond.
other applicators to install the roofs, and Respondent Ev-
Development of the cold process system, which Re-
ergreen ceased employing its own employees. Inasmuch
spondent Evergreen now uses, was instituted under the
as this occurred more than 6 months prior to the filing of
auspices of Respondent BBS and the commencment of
the charge in Case 19-CA-11908, there is no allegation
phasing it in, to replace the hot tar system, had begun
that in making these changes Respondents violated the
under Respondent BBS. In fact, so far as the record dis-
Act.
closes, the reactivation of Respondent Evergreen had
However, Mylan conceded that the subcontractors and
been occasioned exclusively by the attachment of Re-
the applicators whom they retained to install the roofs
spondent BBS's bond which had the effect of preventing
are performing the same type of work as had formerly
it from continuing operations in the west Washington
been performed by Respondent Evergreen's employees
area. There is no evidence showing that had that not
prior to the relationship conversion. The General Coun-
happened, Respondent Evergreen would have been reac-
sel argues that, notwithstanding this conversion, the ap-
tivated to handle contracts for performing the polyester
plicators doing the roofing work for Respondent Ever-
cold process system of roofing. Rather, with Respondent
green have remained its employees within the meaning
BBS's bond attached, Mylan needed an entity to conduct
of Section 2(3) of the Act, and, accordingly, that Re-
that system of roofing and so reactivated Respondent
spondent Evergreen has remained obligated to apply the
Evergreen to do it. So far as the evidence shows, had
terms of its collective-bargaining agreement with the
Respondent BBS's bond not been attached, Mylan simply
Union to them. Conversely, Respondent argues, in es-
would have continued developing and phasing in the
sence, that the terms of the collective-bargaining agree-
cold processing system under that entity. Indeed, should
ment cannot be applied to these persons by Respondent
Respondent BBS obtain another business license and
Evergreen inasmuch as the conversion resulted in their
straighten out its bond problem, "there is nothing to pre-
becoming independent contractors within the meaning of
vent [Mylan] from retransferring [roofing operations]
Section 2(3) of the Act and separate employers within
back to Respondent [BBS]." Los Angeles Marine Hard-
the meaning of Section 2(2) of the Act, with the result
ware Co., a Division of Mission Marine Associates, Inc.; and
that the applicators employed by them are not employees
California Marine Hardware Co., a Division of Mission
of Respondent Evergreen. Consequently, the principal
Marine Associates, Inc., 235 NLRB 720, 732 (1978), enfd.
issue in this case is whether the applicators retained by
640 F.2d 1017 (9th Cir. 1981).
the subcontractors 5 are employees only of the subcon-
In these circumstances there is sufficient identity of
tractors or remain employees of Respondent Evergreen.
operations, management, control of labor relations, and
In addition, on January 2, 1980, the Union requested
ownership to warrant the conclusion that Respondents
that Respondent provide it with a list of the names and
are a single employer within the meaning of Section 2(2)
addresses of the employees performing the roofing
of the Act. Therefore, I find that at all times material
work, the hours worked by each of them and the wages
Respondents have been a single employer within the
and fringe benefit contributions, if any, made on behalf
meaning of Section 2(2) of the Act, engaged in com-
of each one of them. In its letter the Union recites that
merce within the meaning of Section 2(6) and (7) of the
its purpose in making the request "is to determine wheth-
0 ~~~~~~~~Act. "~er
your employees are complying with our collective-
II. THE LABOR ORGANIZATION INVOLVED
bargaining agreement with respect to their obligation to
join Roofers Local 54 and maintain their membership in
At all times material the Union has been a labor orga-
the Union; and also to determine whether or not your
nization within the meaning of Section 2(5) of the Act.
firm has been complying with the collective-bargaining
agreement by paying contractual wages and fringe bene-
llI. ISSUE
fits consistent with the agreement." It is undisputed that
As set forth above, Respondent Evergreen had been
Respondent has not complied with that request. Thus,
reactivated to continue developing the polyester cold
the General Counsel alleges that Respondent violated
processing system initiated by Mylan through Respond-
ent BBS. The parties stipulated that since June 20, 1977,
t'rs
appears undisputed that those individuals who became subcontrac-
tors would be considered supervisors within the meaning of Sec. 2(11) of
Respondent Evergreen has not considered itself bound
the Act even if Respondent Evergreen remained the employer of the ap-
by the collective-bargaining agreement to which Re-
plicators hired by them.
472
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
With respect to the existence of interrelated oper-
spondent BBS became a party. Moreover, Respondents
ations, it is true that Respondent BBS was licensed as a
have ignored the Union's requests that they do so. Aside
general contractor whereas Respondent Evergreen is li-
from the argument that Respondents are separate em-
censed to perform only roofing work and, further, that
ployers, rejected above, Respondents base their refusal to
Respondent Evergreen does its roofing work by means
continue honoring that agreement upon the relationship
of the polyester cold process system. Yet, these hardly
between Respondent Evergreen and the applicators-
are differences of substance. For, as set forth above, Re-
those who install the roofs.
spondent BBS, however licensed, had been performing
As set forth above, when Respondent Evergreen re-
primarily roofing work after the HUD remodeling work
sumed operations, it employed its own employees initial-
had begun to "dissipate or dry up," and, as its income
ly. However, within a short span of time, it changed the
tax returns disclose, had been listing roofing as its pri-
nature of that relationship so that some of the applicators
mary business before it was completely deactivated fol-
were reclassified as subcontractors. They, then, retained
lowing attachment of its bond.
other applicators to install the roofs, and Respondent Ev-
Development of the cold process system, which Re-
ergreen ceased employing its own employees. Inasmuch
spondent Evergreen now uses, was instituted under the
as this occurred more than 6 months prior to the filing of
auspices of Respondent BBS and the commencment of
the charge in Case 19-CA-11908, there is no allegation
phasing it in, to replace the hot tar system, had begun
that in making these changes Respondents violated the
under Respondent BBS. In fact, so far as the record dis-
Act.
closes, the reactivation of Respondent Evergreen had
However, Mylan conceded that the subcontractors and
been occasioned exclusively by the attachment of Re-
the applicators whom they retained to install the roofs
spondent BBS's bond which had the effect of preventing
are performing the same type of work as had formerly
it from continuing operations in the west Washington
been performed by Respondent Evergreen's employees
area. There is no evidence showing that had that not
prior to the relationship conversion. The General Coun-
happened, Respondent Evergreen would have been reac-
sel argues that, notwithstanding this conversion, the ap-
tivated to handle contracts for performing the polyester
plicators doing the roofing work for Respondent Ever-
cold process system of roofing. Rather, with Respondent
green have remained its employees within the meaning
BBS's bond attached, Mylan needed an entity to conduct
of Section 2(3) of the Act, and, accordingly, that Re-
that system of roofing and so reactivated Respondent
spondent Evergreen has remained obligated to apply the
Evergreen to do it. So far as the evidence shows, had
terms of its collective-bargaining agreement with the
Respondent BBS's bond not been attached, Mylan simply
Union to them. Conversely, Respondent argues, in es-
would have continued developing and phasing in the
sence, that the terms of the collective-bargaining agree-
cold processing system under that entity. Indeed, should
ment cannot be applied to these persons by Respondent
Respondent BBS obtain another business license and
Evergreen inasmuch as the conversion resulted in their
straighten out its bond problem, "there is nothing to pre-
becoming independent contractors within the meaning of
vent [Mylan] from retransferring [roofing operations]
Section 2(3) of the Act and separate employers within
back to Respondent [BBS]." Los Angeles Marine Hard-
the meaning of Section 2(2) of the Act, with the result
wa r e Co., a D ivision of Mi s sio n M a rin e A sso cia t es, I n c.
a n d
that the applicators employed by them are not employees
California Marine Hardware Co., a Division of Mission
of Respondent Evergreen. Consequently, the principal
Marine Associates, In c
2 35 NL R B
720 , 7 32 ( 197 8), en f d .
issue in this case is whether the applicators retained by
640 F.2d 1017 (9th Cir. 1981).
the subcontractors5 are employees only of the subcon-
In these circumstances there is sufficient identity of
tractors or remain employees of Respondent Evergreen.
operations, management, control of labor relations, and
In addition, on January 2, 1980, the Union requested
ownership to warrant the conclusion that Respondents
that Respondent provide it with a list of the names and
are a single employer within the meaning of Section 2(2)
addresses of the employees performing the roofing
of the Act. Therefore, I find that at all times material
w
e hours worked by each of them and the wages
Respondents have been a single employer within the
a
benefit contributions, if any, made on behalf
meaning of Section 2(2) of the Act, engaged in com-
of each one of them. In its letter the Union recites that
merce within the meaning of Section 2(6) and (7) of the
i
puo
i
mi
the request "is to determine wheth-
Act.
er your employees are complying with our collective-
I. THE LABOR ORGANIZATION INVOLVED
bargaining agreement with respect to their obligation to
join Roofers Local 54 and maintain their membership in
At all times material the Union has been a labor orga-
the Union; and also to determine whether or not your
nization within the meaning of Section 2(5) of the Act.
firm has been complying with the collective-bargaining
agreement by paying contractual wages and fringe bene-
III. ISSUE
fits consistent with the agreement." It is undisputed that
As set forth above, Respondent Evergreen had been
Respondent has not complied with that request. Thus,
reactivated to continue developing the polyester cold
t he
General Counsel alleges that Respondent violated
processing system initiated by Mylan through Respond-
ent BBS. The parties stipulated that since June 20, 1977,
It appears undisputed that those individuals who became subcontrac-
tors would be considered supervisors within the meaning of Sec. 2(11) of
Respondent Evergreen has not considered Itself bound
the Act even if Respondent Evergreen remained the employer of the ap-
by the collective-bargaining agreement to which Re-
plicators hired by them.
472
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
With respect to the existence of interrelated oper-
spondent BBS became a party. Moreover, Respondents
ations, it is true that Respondent BBS was licensed as a
have ignored the Union's requests that they do so. Aside
general contractor whereas Respondent Evergreen is li-
from the argument that Respondents are separate em-
censed to perform only roofing work and, further, that
ployers, rejected above, Respondents base their refusal to
Respondent Evergreen does its roofing work by means
continue honoring that agreement upon the relationship
of the polyester cold process system. Yet, these hardly
between Respondent Evergreen and the applicators-
are differences of substance. For, as set forth above, Re-
those who install the roofs.
spondent BBS, however licensed, had been performing
As set forth above, when Respondent Evergreen re-
primarily roofing work after the HUD remodeling work
sumed operations, it employed its own employees initial-
had begun to "dissipate or dry up," and, as its income
ly. However, within a short span of time, it changed the
tax returns disclose, had been listing roofing as its pri-
nature of that relationship so that some of the applicators
mary business before it was completely deactivated fol-
were reclassified as subcontractors. They, then, retained
lowing attachment of its bond.
other applicators to install the roofs, and Respondent Ev-
Development of the cold process system, which Re-
ergreen ceased employing its own employees. Inasmuch
spondent Evergreen now uses, was instituted under the
as this occurred more than 6 months prior to the filing of
auspices of Respondent BBS and the commencment of
the charge in Case 19-CA-11908, there is no allegation
phasing it in, to replace the hot tar system, had begun
that in making these changes Respondents violated the
under Respondent BBS. In fact, so far as the record dis-
Act.
closes, the reactivation of Respondent Evergreen had
However, Mylan conceded that the subcontractors and
been occasioned exclusively by the attachment of Re-
the applicators whom they retained to install the roofs
spondent BBS's bond which had the effect of preventing
are performing the same type of work as had formerly
it from continuing operations in the west Washington
been performed by Respondent Evergreen's employees
area. There is no evidence showing that had that not
prior to the relationship conversion. The General Coun-
happened, Respondent Evergreen would have been reac-
sel argues that, notwithstanding this conversion, the ap-
tivated to handle contracts for performing the polyester
plicators doing the roofing work for Respondent Ever-
cold process system of roofing. Rather, with Respondent
green have remained its employees within the meaning
BBS's bond attached, Mylan needed an entity to conduct
of Section 2(3) of the Act, and, accordingly, that Re-
that system of roofing and so reactivated Respondent
spondent Evergreen has remained obligated to apply the
Evergreen to do it. So far as the evidence shows, had
terms of its collective-bargaining agreement with the
Respondent BBS's bond not been attached, Mylan simply
Union to them. Conversely, Respondent argues, in es-
would have continued developing and phasing in the
sence, that the terms of the collective-bargaining agree-
cold processing system under that entity. Indeed, should
ment cannot be applied to these persons by Respondent
Respondent BBS obtain another business license and
Evergreen inasmuch as the conversion resulted in their
straighten out its bond problem, "there is nothing to pre-
becoming independent contractors within the meaning of
vent [Mylan] from retransferring [roofing operations]
Section 2(3) of the Act and separate employers within
back to Respondent [BBS]." Los Angeles Marine Hard-
the meaning of Section 2(2) of the Act, with the result
wa r e Co., a D ivision of Mi s sio n M a rin e A sso cia t es, I n c.
a n d
that the applicators employed by them are not employees
California Marine Hardware Co., a Division of Mission
of Respondent Evergreen. Consequently, the principal
Marine Associates, In c
2 35 NL R B
720 , 7 32 ( 197 8), en f d .
issue in this case is whether the applicators retained by
640 F.2d 1017 (9th Cir. 1981).
the subcontractors5 are employees only of the subcon-
In these circumstances there is sufficient identity of
tractors or remain employees of Respondent Evergreen.
operations, management, control of labor relations, and
In addition, on January 2, 1980, the Union requested
ownership to warrant the conclusion that Respondents
that Respondent provide it with a list of the names and
are a single employer within the meaning of Section 2(2)
addresses of the employees performing the roofing
of the Act. Therefore, I find that at all times material
w
hours worked by each of them and the wages
Respondents have been a single employer within the
a
benefit contributions, if any, made on behalf
meaning of Section 2(2) of the Act, engaged in com-
of each one of them. In its letter the Union recites that
merce within the meaning of Section 2(6) and (7) of the
i
puo
i
mi
t
ru
"is t determine wheth-
Act.
er your employees are complying with our collective-
I. THE LABOR ORGANIZATION INVOLVED
bargaining agreement with respect to their obligation to
join Roofers Local 54 and maintain their membership in
At all times material the Union has been a labor orga-
the Union; and also to determine whether or not your
nization within the meaning of Section 2(5) of the Act.
firm has been complying with the collective-bargaining
agreement by paying contractual wages and fringe bene-
III. ISSUE
fits consistent with the agreement." It is undisputed that
As set forth above, Respondent Evergreen had been
Respondent has not complied with that request. Thus,
reactivated to continue developing the polyester cold
t he
General Counsel alleges that Respondent violated
processing system initiated by Mylan through Respond-
ent BBS. The parties stipulated that since June 20, 1977,
It appears undisputed that those individuals who became subcontrac-
tors would be considered supervisors within the meaning of Sec. 2(11) of
Respondent Evergreen has not considered Itself bound
the Act even if Respondent Evergreen remained the employer of the ap-
by the collective-bargaining agreement to which Re-
plicators hired by them.
472
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
With respect to the existence of interrelated oper-
spondent BBS became a party. Moreover, Respondents
ations, it is true that Respondent BBS was licensed as a
have ignored the Union's requests that they do so. Aside
general contractor whereas Respondent Evergreen is li-
from the argument that Respondents are separate em-
censed to perform only roofing work and, further, that
ployers, rejected above, Respondents base their refusal to
Respondent Evergreen does its roofing work by means
continue honoring that agreement upon the relationship
of the polyester cold process system. Yet, these hardly
between Respondent Evergreen and the applicators-
are differences of substance. For, as set forth above, Re-
those who install the roofs.
spondent BBS, however licensed, had been performing
As set forth above, when Respondent Evergreen re-
primarily roofing work after the HUD remodeling work
sumed operations, it employed its own employees initial-
had begun to "dissipate or dry up," and, as its income
ly. However, within a short span of time, it changed the
tax returns disclose, had been listing roofing as its pri-
nature of that relationship so that some of the applicators
mary business before it was completely deactivated fol-
were reclassified as subcontractors. They, then, retained
lowing attachment of its bond.
other applicators to install the roofs, and Respondent Ev-
Development of the cold process system, which Re-
ergreen ceased employing its own employees. Inasmuch
spondent Evergreen now uses, was instituted under the
as this occurred more than 6 months prior to the filing of
auspices of Respondent BBS and the commencment of
the charge in Case 19-CA-11908, there is no allegation
phasing it in, to replace the hot tar system, had begun
that in making these changes Respondents violated the
under Respondent BBS. In fact, so far as the record dis-
Act.
closes, the reactivation of Respondent Evergreen had
However, Mylan conceded that the subcontractors and
been occasioned exclusively by the attachment of Re-
the applicators whom they retained to install the roofs
spondent BBS's bond which had the effect of preventing
are performing the same type of work as had formerly
it from continuing operations in the west Washington
been performed by Respondent Evergreen's employees
area. There is no evidence showing that had that not
prior to the relationship conversion. The General Coun-
happened, Respondent Evergreen would have been reac-
sel argues that, notwithstanding this conversion, the ap-
tivated to handle contracts for performing the polyester
plicators doing the roofing work for Respondent Ever-
cold process system of roofing. Rather, with Respondent
green have remained its employees within the meaning
BBS's bond attached, Mylan needed an entity to conduct
of Section 2(3) of the Act, and, accordingly, that Re-
that system of roofing and so reactivated Respondent
spondent Evergreen has remained obligated to apply the
Evergreen to do it. So far as the evidence shows, had
terms of its collective-bargaining agreement with the
Respondent BBS's bond not been attached, Mylan simply
Union to them. Conversely, Respondent argues, in es-
would have continued developing and phasing in the
sence, that the terms of the collective-bargaining agree-
cold processing system under that entity. Indeed, should
ment cannot be applied to these persons by Respondent
Respondent BBS obtain another business license and
Evergreen inasmuch as the conversion resulted in their
straighten out its bond problem, "there is nothing to pre-
becoming independent contractors within the meaning of
vent [Mylan] from retransferring [roofing operations]
Section 2(3) of the Act and separate employers within
back to Respondent [BBS]." Los Angeles Marine Hard-
the meaning of Section 2(2) of the Act, with the result
wa r e Co., a D ivision of Mi s sio n M a rin e A sso cia t es, I n c.
a n d
that the applicators employed by them are not employees
California Marine Hardware Co., a Division of Mission
of Respondent Evergreen. Consequently, the principal
Marine Associates, In c
2 35 NL R B
720 , 7 32 ( 197 8), en f d .
issue in this case is whether the applicators retained by
640 F.2d 1017 (9th Cir. 1981).
the subcontractors5 are employees only of the subcon-
In these circumstances there is sufficient identity of
tractors or remain employees of Respondent Evergreen.
operations, management, control of labor relations, and
In addition, on January 2, 1980, the Union requested
ownership to warrant the conclusion that Respondents
that Respondent provide it with a list of the names and
are a single employer within the meaning of Section 2(2)
addresses of the employees performing the roofing
of the Act. Therefore, I find that at all times material
w
hours worked by each of them and the wages
Respondents have been a single employer within the
a
benefit contributions, if any, made on behalf
meaning of Section 2(2) of the Act, engaged in com-
of each one of them. In its letter the Union recites that
merce within the meaning of Section 2(6) and (7) of the
its p
in m
th rqe
"
determine wheth-
Act.
er your employees are complying with our collective-
I. THE LABOR ORGANIZATION INVOLVED
bargaining agreement with respect to their obligation to
join Roofers Local 54 and maintain their membership in
At all times material the Union has been a labor orga-
the Union; and also to determine whether or not your
nization within the meaning of Section 2(5) of the Act.
firm has been complying with the collective-bargaining
agreement by paying contractual wages and fringe bene-
III. ISSUE
fits consistent with the agreement." It is undisputed that
As set forth above, Respondent Evergreen had been
Respondent has not complied with that request. Thus,
reactivated to continue developing the polyester cold
t he
General Counsel alleges that Respondent violated
processing system initiated by Mylan through Respond-
ent BBS. The parties stipulated that since June 20, 1977,
It appears undisputed that those individuals who became subcontrac-
tors would be considered supervisors within the meaning of Sec. 2(11) of
Respondent Evergreen has not considered Itself bound
the Act even if Respondent Evergreen remained the employer of the ap-
by the collective-bargaining agreement to which Re-
plicators hired by them.
BETTER BUILDING SUPPLY CORP.
473
Section 8(aX5) and (1) of the Act by disregarding the
system is the pumper rig developed by Mylan.? These
Union's request for this information.
rigs are leased to the subcontractors. However, the lease
is not a written one and the subcontractors are charged
IV. THE RELATIONSHIP BETWEEN RESPONDENTS AND
but a dollar per year for the lease of one of these vehi-
THE APPLICATORS
cles. When not in use, the rigs normally are parked at
Mylan, one former subcontractor (Walter L. Camp-
Respondent Evergreen yard. Moreover, Respondent Ev-
bell), and two current subcontractors (M. Christopher
ergreen also provides Gardner and Romei with chase
Gardner, Jr., and Christopher Alessio Romei, who are
trucks that are used to transport roofing materials to job-
jointly doing business as Fresh Air Roofing, a corpora-
sites. So far as the record discloses no rental is charged
tion) testified regarding the relationship between Re-
to them for the chase trucks. While subcontractors are
spondent Evergreen, the subcontractors, and other appli-
obliged to furnish fuel for their own vehicles, Respond-
cators. Each of the subcontractors formed their own or-
ent Evergreen provides the fuel used for the rigs, either
ganizations, in some instances corporations, and obtained
from a pump in its yard or by reimbursing the subcon-
their own business licenses as contractors to perform, at
tractors for fuel purchased elsewhere. Furthermore,
least, roofing work. Respondents make no deductions or
while subcontractors furnish the labor used to maintain
contributions for subcontractors or the applicators whom
the vehicles owned by Mylan or by Respondent Ever-
they retain to assist them in installing roofs. The subcon-
green, the latter furnishes the materials needed and pays
tractors pay the wages of the applicators they hire. In es-
for any major maintenance work that must be performed
sence, therefore, each of the subcontractors has estab-
on the rigs or chase trucks.
lished at least a nominally separate and distinct business
The materials used to perform the roofing work, i.e.,
enterprise.
rolls of polyester, cutback, mastic, and webbing, are sup-
As set forth above, Respondent Evergreen markets a
plied by Respondent Evergreen. It maintains locked
polyester cold processing system of roofing, primarily
areas at its yard for each of the subcontractors in which
for nonresidential structures. Contracts to perform this
these materials are stored and which Respondent Ever-
work are obtained for Respondent Evergreen by inde-
green replenishes periodically. Only in the event that, in
pendent sales representatives, called ISR, individuals
effect,
a subcontractor
causes the loss of material
who have signed an Independent Sales Representative
through negligence or heedlessness is the subcontractor
Agreement with Respondent Evergreen.6
Under the
charged for the material. While the subcontractors pro-
terms of these agreements Respondent "Evergreen will
vide their own tools used to perform roofing work,
pay a commission to the ISR at the rates currently pub-
Campbell testified, without contradiction, that journey-
lished by the Company as amended from time to time,
man roofers are expected to provide their own hand-
on all jobs sold by the ISR."
tools. There is no showing that the tools actually used by
Having obtained these contracts Respondent Ever-
the subcontractors differed in any respect from what
green then selects the subcontractor who will be as-
journeyman roofers normally use.
signed to perform the specific work called for by each
The employees who compose the crews used by Gard-
contract. So far as the record discloses, the subcontrac-
ner, Romei, and other subcontractors are hired by and
tors have no voice in determining the particular jobs to
paid by the subcontractors at rates which they set. How-
which they will be assigned. Nor, for that matter, does
ever, during their first year of operation, Gardner and
the subcontractor have any direct contact with custom-
Romei were the only two crewmembers working for
ers, save in those instances, apparently rare, where the
Fresh Air, with the result that during that period they
subcontractor has also sold a particular roofing job as an
did not have the need to hire any employees. Moreover,
independent sales representative. All subcontractors testi-
the initial three person crew hired by Campbell had been
fled that they could reject jobs that were assigned to
working for Respondent Evergreen immediately before
them. However, the evidence discloses only a single spe-
commencing work for Campbell. While he testified that
cific instance where a subcontractor rejected a roofing
he had had a choice as to whether or not to hire them,
job assigned by Respondent Evergreen-Romei testified
he acknowledged that Respondent Evergreen had told
that he had once turned down a job at the Aurora
him to take them as his first crew. Finally, the record
Drive-In Theatre because "I got dizzy up there . .. and
discloses evidence of a degree of more regular integra-
I just didn't feel comfortable being there."
tion between employees who work for subcontractors
The system followed for performing roofing work is,
and Respondent Evergreen. Thus, Mylan conceded that
of course, the polyester cold processing one which Re-
some or all of the employees hired to do work in Re-
spondent Evergreen has developed and which it markets.
spondent Evergreen's yard alternate back and forth be-
While subcontractors own their own pickup trucks and,
tween employment with it and its subcontractors. He fur-
at least in some instances, their own flatbed trucks, the
ther agreed that in some cases Respondent Evergreen
crucial vehicle for performing the work under this
provides yardwork to tide over employees who normally
do roofing work for Fresh Air in situations where roof-
' Some of the subcontractors have signed such agreements with Re
d r
w
f
F
A
-
spondent Evergreen, thereby enabling them to sell roofing projects,
ing work is not available. In addition, there is evidenoe
addition to applying, roofs sold by others. However, as illustrated by
Campbell's testimony that he had never signed such an agreement with
7 While both Campbell and Gardner agreed that roofs could be applied
Respondent Evergreen, it is not necessary for such an agreement to be
without the use of such a rig, the former testified that he had never done
signed in order for individuals to apply roofs as Respondent Evergreen's
so and the latter testified, credibly, that it would not be commercially
subcontractors.
feasible, in the sense of competitive, to do so.
BETTER BUILDING SUPPLY CORP.
473
Section 8(aX5) and (1) of the Act by disregarding the
system is the pumper rig developed by Mylan. 7 These
Union's request for this information.
rigs are leased to the subcontractors. However, the lease
is not a written one and the subcontractors are charged
IV. THE RELATIONSHIP BETWEEN RESPONDENTS AND
but a dollar per year for the lease of one of these vehi-
THE APPLICATORS
cles. When not in use, the rigs normally are parked at
Mylan, one former subcontractor (Walter L. Camp-
Respondent Evergreen yard. Moreover, Respondent Ev-
bell), and two current subcontractors (M. Christopher
ergreen also provides Gardner and Romei with chase
Gardner, Jr., and Christopher Alessio Romei, who are
t ru c ks that are used to transport roofing materials to job-
jointly doing business as Fresh Air Roofing, a corpora-
s ite s. So far as the record discloses no rental is charged
tion) testified regarding the relationship between Re-
t o
t h em
fo r
t h e chase trucks. While subcontractors are
spondent Evergreen, the subcontractors, and other appli-
obliged to furnish fuel for their own vehicles, Respond-
cators. Each of the subcontractors formed their own or-
ent Evergreen provides the fuel used for the rigs, either
ganizations, in some instances corporations, and obtained
from a pump in its yard or by reimbursing the subcon-
their own business licenses as contractors to perform, at
tractors for fuel purchased elsewhere. Furthermore,
least, roofing work. Respondents make no deductions or
while subcontractors furnish the labor used to maintain
contributions for subcontractors or the applicators whom
the vehicles owned by Mylan or by Respondent Ever-
they retain to assist them in installing roofs. The subcon-
green, the latter furnishes the materials needed and pays
tractors pay the wages of the applicators they hire. In es-
for any major maintenance work that must be performed
sence, therefore, each of the subcontractors has estab-
on the rigs or chase trucks.
lished at least a nominally separate and distinct business
The materials used to perform the roofing work, i.e.,
enterprise.
rolls of polyester, cutback, mastic, and webbing, are sup-
As set forth above, Respondent Evergreen markets a
plied by Respondent Evergreen. It maintains locked
polyester cold processing system of roofing, primarily
areas at its yard for each of the subcontractors in which
for nonresidential structures. Contracts to perform this
these materials are stored and which Respondent Ever-
work are obtained for Respondent Evergreen by inde-
green replenishes periodically. Only in the event that, in
pendent sales representatives, called ISR, individuals
effect,
a subcontractor
causes the loss of material
who have signed an Independent Sales Representative
through negligence or heedlessness is the subcontractor
Agreement with Respondent Evergreen.I Under the
charged for the material. While the subcontractors pro-
terms of these agreements Respondent "Evergreen will
vide their own tools used to perform roofing work,
pay a commission to the ISR at the rates currently pub-
Campbell testified, without contradiction, that journey-
lished by the Company as amended from time to time,
man roofers are expected to provide their own hand-
on all jobs sold by the ISR."
tools. There is no showing that the tools actually used by
Having obtained these contracts Respondent Ever-
the subcontractors differed in any respect from what
green then selects the subcontractor who will be as-
journeyman roofers normally use.
signed to perform the specific work called for by each
The employees who compose the crews used by Gard-
contract. So far as the record discloses, the subcontrac-
ner, Romei, and other subcontractors are hired by and
tors have no voice in determining the particular jobs to
paid by the subcontractors at rates which they set. How-
which they will be assigned. Nor, for that matter, does
ever, during their first year of operation, Gardner and
the subcontractor have any direct contact with custom-
Romei were the only two crewmembers working for
ers, save in those instances, apparently rare, where the
Fresh Air, with the result that during that period they
subcontractor has also sold a particular roofing job as an
did not have the need to hire any employees. Moreover,
independent sales representative. All subcontractors testi-
the initial three person crew hired by Campbell had been
fied that they could reject jobs that were assigned to
working for Respondent Evergreen immediately before
them. However, the evidence discloses only a single spe-
commencing work for Campbell. While he testified that
cific instance where a subcontractor rejected a roofing
he had had a choice as to whether or not to hire them,
job assigned by Respondent Evergreen-Romei testified
he acknowledged that Respondent Evergreen had told
that he had once turned down a job at the Aurora
him to take them as his first crew. Finally, the record
Drive-In Theatre because "I got dizzy up there ...
and
discloses evidence of a degree of more regular integra-
I just didn't feel comfortable being there."
tion between employees who work for subcontractors
The system followed for performing roofing work is,
and Respondent Evergreen. Thus, Mylan conceded that
of course, the polyester cold processing one which Re-
some or all of the employees hired to do work in Re-
spondent Evergreen has developed and which it markets.
spondent Evergreen's yard alternate back and forth be-
While subcontractors own their own pickup trucks and,
tween employment with it and its subcontractors. He fur-
at least in some instances, their own flatbed trucks, the
ther agreed that in some cases Respondent Evergreen
crucial vehicle for performing the work under this
provides yardwork to tide over employees who normally
~---~~
..
.
.~~~~~~~~~do
roofing work for Fresh Air in situations where roof-
' Some of the subcontractors have signed such agreements with Re-
d
r
w
fo Frs A
in sui
w
rof
spondent Evergreen, thereby enabling them to sell roofing projects, in
ing w o r k is
n o t available. In addition, there is evidenoe
addition to applying, roofs sold by others. However, as illustrated by
Campbell's testimony that he had never signed such an agreement with
While both Campbell and Gardner agreed that roofs could be applied
Respondent Evergreen, it is not necessary for such an agreement to be
without the use of such a rig, the former testified that he had never done
signed in order for individuals to apply roofs as Respondent Evergreen's
so and the latter testified, credibly, that it would not be commercially
subcontractors.feasible,
in the sense of competitive, to do so.
BETTER BUILDING SUPPLY CORP.
473
Section 8(aX5) and (1) of the Act by disregarding the
system is the pumper rig developed by Mylan. 7 These
Union's request for this information.
rigs are leased to the subcontractors. However, the lease
is not a written one and the subcontractors are charged
IV. THE RELATIONSHIP BETWEEN RESPONDENTS AND
but a dollar per year for the lease of one of these vehi-
THE APPLICATORS
cles. When not in use, the rigs normally are parked at
Mylan, one former subcontractor (Walter L. Camp-
Respondent Evergreen yard. Moreover, Respondent Ev-
bell), and two current subcontractors (M. Christopher
ergreen also provides Gardner and Romei with chase
Gardner, Jr., and Christopher Alessio Romei, who are
t ru c ks that are used to transport roofing materials to job-
jointly doing business as Fresh Air Roofing, a corpora-
s ite s. So far as the record discloses no rental is charged
tion) testified regarding the relationship between Re-
t o
t h em
fo r
t h e chase trucks. While subcontractors are
spondent Evergreen, the subcontractors, and other appli-
obliged to furnish fuel for their own vehicles, Respond-
cators. Each of the subcontractors formed their own or-
ent Evergreen provides the fuel used for the rigs, either
ganizations, in some instances corporations, and obtained
from a pump in its yard or by reimbursing the subcon-
their own business licenses as contractors to perform, at
tractors for fuel purchased elsewhere. Furthermore,
least, roofing work. Respondents make no deductions or
while subcontractors furnish the labor used to maintain
contributions for subcontractors or the applicators whom
the vehicles owned by Mylan or by Respondent Ever-
they retain to assist them in installing roofs. The subcon-
green, the latter furnishes the materials needed and pays
tractors pay the wages of the applicators they hire. In es-
for any major maintenance work that must be performed
sence, therefore, each of the subcontractors has estab-
on the rigs or chase trucks.
lished at least a nominally separate and distinct business
The materials used to perform the roofing work, i.e.,
enterprise.
rolls of polyester, cutback, mastic, and webbing, are sup-
As set forth above, Respondent Evergreen markets a
plied by Respondent Evergreen. It maintains locked
polyester cold processing system of roofing, primarily
areas at its yard for each of the subcontractors in which
for nonresidential structures. Contracts to perform this
these materials are stored and which Respondent Ever-
work are obtained for Respondent Evergreen by inde-
green replenishes periodically. Only in the event that, in
pendent sales representatives, called ISR, individuals
effect,
a subcontractor
causes the loss of material
who have signed an Independent Sales Representative
through negligence or heedlessness is the subcontractor
Agreement with Respondent Evergreen.I Under the
charged for the material. While the subcontractors pro-
terms of these agreements Respondent "Evergreen will
vide their own tools used to perform roofing work,
pay a commission to the ISR at the rates currently pub-
Campbell testified, without contradiction, that journey-
lished by the Company as amended from time to time,
man roofers are expected to provide their own hand-
on all jobs sold by the ISR."
tools. There is no showing that the tools actually used by
Having obtained these contracts Respondent Ever-
the subcontractors differed in any respect from what
green then selects the subcontractor who will be as-
journeyman roofers normally use.
signed to perform the specific work called for by each
The employees who compose the crews used by Gard-
contract. So far as the record discloses, the subcontrac-
ner, Romei, and other subcontractors are hired by and
tors have no voice in determining the particular jobs to
paid by the subcontractors at rates which they set. How-
which they will be assigned. Nor, for that matter, does
ever, during their first year of operation, Gardner and
the subcontractor have any direct contact with custom-
Romei were the only two crewmembers working for
ers, save in those instances, apparently rare, where the
Fresh Air, with the result that during that period they
subcontractor has also sold a particular roofing job as an
did not have the need to hire any employees. Moreover,
independent sales representative. All subcontractors testi-
the initial three person crew hired by Campbell had been
fied that they could reject jobs that were assigned to
working for Respondent Evergreen immediately before
them. However, the evidence discloses only a single spe-
commencing work for Campbell. While he testified that
cific instance where a subcontractor rejected a roofing
he had had a choice as to whether or not to hire them,
job assigned by Respondent Evergreen-Romei testified
he acknowledged that Respondent Evergreen had told
that he had once turned down a job at the Aurora
him to take them as his first crew. Finally, the record
Drive-In Theatre because "I got dizzy up there ...
and
discloses evidence of a degree of more regular integra-
I just didn't feel comfortable being there."
tion between employees who work for subcontractors
The system followed for performing roofing work is,
and Respondent Evergreen. Thus, Mylan conceded that
of course, the polyester cold processing one which Re-
some or all of the employees hired to do work in Re-
spondent Evergreen has developed and which it markets.
spondent Evergreen's yard alternate back and forth be-
While subcontractors own their own pickup trucks and,
tween employment with it and its subcontractors. He fur-
at least in some instances, their own flatbed trucks, the
ther agreed that in some cases Respondent Evergreen
crucial vehicle for performing the work under this
provides yardwork to tide over employees who normally
~---~~
..
.
.~~~~~~~~~do
roofing work for Fresh Air in situations where roof-
' Some of the subcontractors have signed such agreements with Re-
d
r
w
fo Frs A
in sui
w
rof
spondent Evergreen, thereby enabling them to sell roofing projects, in
ing w o r k is
n o t available. In addition, there is evidenoe
addition to applying, roofs sold by others. However, as illustrated by
Campbell's testimony that he had never signed such an agreement with
While both Campbell and Gardner agreed that roofs could be applied
Respondent Evergreen, it is not necessary for such an agreement to be
without the use of such a rig, the former testified that he had never done
signed in order for individuals to apply roofs as Respondent Evergreen's
so and the latter testified, credibly, that it would not be commercially
subcontractors.feasible,
in the sense of competitive, to do so.
BETTER BUILDING SUPPLY CORP.
473
Section 8(aX5) and (1) of the Act by disregarding the
system is the pumper rig developed by Mylan. 7 These
Union's request for this information.
rigs are leased to the subcontractors. However, the lease
is not a written one and the subcontractors are charged
IV. THE RELATIONSHIP BETWEEN RESPONDENTS AND
but a dollar per year for the lease of one of these vehi-
THE APPLICATORS
cles. When not in use, the rigs normally are parked at
Mylan, one former subcontractor (Walter L. Camp-
Respondent Evergreen yard. Moreover, Respondent Ev-
bell), and two current subcontractors (M. Christopher
ergreen also provides Gardner and Romei with chase
Gardner, Jr., and Christopher Alessio Romei, who are
t ru c ks that are used to transport roofing materials to job-
jointly doing business as Fresh Air Roofing, a corpora-
s ite s. So far as the record discloses no rental is charged
tion) testified regarding the relationship between Re-
t o
t h em
fo r
t h e chase trucks. While subcontractors are
spondent Evergreen, the subcontractors, and other appli-
obliged to furnish fuel for their own vehicles, Respond-
cators. Each of the subcontractors formed their own or-
ent Evergreen provides the fuel used for the rigs, either
ganizations, in some instances corporations, and obtained
from a pump in its yard or by reimbursing the subcon-
their own business licenses as contractors to perform, at
tractors for fuel purchased elsewhere. Furthermore,
least, roofing work. Respondents make no deductions or
while subcontractors furnish the labor used to maintain
contributions for subcontractors or the applicators whom
the vehicles owned by Mylan or by Respondent Ever-
they retain to assist them in installing roofs. The subcon-
green, the latter furnishes the materials needed and pays
tractors pay the wages of the applicators they hire. In es-
for any major maintenance work that must be performed
sence, therefore, each of the subcontractors has estab-
on the rigs or chase trucks.
lished at least a nominally separate and distinct business
The materials used to perform the roofing work, i.e.,
enterprise.
rolls of polyester, cutback, mastic, and webbing, are sup-
As set forth above, Respondent Evergreen markets a
plied by Respondent Evergreen. It maintains locked
polyester cold processing system of roofing, primarily
areas at its yard for each of the subcontractors in which
for nonresidential structures. Contracts to perform this
these materials are stored and which Respondent Ever-
work are obtained for Respondent Evergreen by inde-
green replenishes periodically. Only in the event that, in
pendent sales representatives, called ISR, individuals
effect,
a subcontractor
causes the loss of material
who have signed an Independent Sales Representative
through negligence or heedlessness is the subcontractor
Agreement with Respondent Evergreen.I Under the
charged for the material. While the subcontractors pro-
terms of these agreements Respondent "Evergreen will
vide their own tools used to perform roofing work,
pay a commission to the ISR at the rates currently pub-
Campbell testified, without contradiction, that journey-
lished by the Company as amended from time to time,
man roofers are expected to provide their own hand-
on all jobs sold by the ISR."
tools. There is no showing that the tools actually used by
Having obtained these contracts Respondent Ever-
the subcontractors differed in any respect from what
green then selects the subcontractor who will be as-
journeyman roofers normally use.
signed to perform the specific work called for by each
The employees who compose the crews used by Gard-
contract. So far as the record discloses, the subcontrac-
ner, Romei, and other subcontractors are hired by and
tors have no voice in determining the particular jobs to
paid by the subcontractors at rates which they set. How-
which they will be assigned. Nor, for that matter, does
ever, during their first year of operation, Gardner and
the subcontractor have any direct contact with custom-
Romei were the only two crewmembers working for
ers, save in those instances, apparently rare, where the
Fresh Air, with the result that during that period they
subcontractor has also sold a particular roofing job as an
did not have the need to hire any employees. Moreover,
independent sales representative. All subcontractors testi-
the initial three person crew hired by Campbell had been
fied that they could reject jobs that were assigned to
working for Respondent Evergreen immediately before
them. However, the evidence discloses only a single spe-
commencing work for Campbell. While he testified that
cific instance where a subcontractor rejected a roofing
he had had a choice as to whether or not to hire them,
job assigned by Respondent Evergreen-Romei testified
he acknowledged that Respondent Evergreen had told
that he had once turned down a job at the Aurora
him to take them as his first crew. Finally, the record
Drive-In Theatre because "I got dizzy up there ...
and
discloses evidence of a degree of more regular integra-
I just didn't feel comfortable being there."
tion between employees who work for subcontractors
The system followed for performing roofing work is,
and Respondent Evergreen. Thus, Mylan conceded that
of course, the polyester cold processing one which Re-
some or all of the employees hired to do work in Re-
spondent Evergreen has developed and which it markets.
spondent Evergreen's yard alternate back and forth be-
While subcontractors own their own pickup trucks and,
tween employment with it and its subcontractors. He fur-
at least in some instances, their own flatbed trucks, the
ther agreed that in some cases Respondent Evergreen
crucial vehicle for performing the work under this
provides yardwork to tide over employees who normally
~---~~
..
.
.~~~~~~~~~do
roofing work for Fresh Air in situations where roof-
' Some of the subcontractors have signed such agreements with Re-
d
r
w
fo Frs A
in sui
w
rof
spondent Evergreen, thereby enabling them to sell roofing projects, in
ing w o r k is
n o t available. In addition, there is evidenoe
addition to applying, roofs sold by others. However, as illustrated by
Campbell's testimony that he had never signed such an agreement with
While both Campbell and Gardner agreed that roofs could be applied
Respondent Evergreen, it is not necessary for such an agreement to be
without the use of such a rig, the former testified that he had never done
signed in order for individuals to apply roofs as Respondent Evergreen's
so and the latter testified, credibly, that it would not be commercially
subcontractors.feasible,
in the sense of competitive, to do so.
474
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
of at least one instance where Mylan switched an em-
tractor is no longer doing work for Respondent Ever-
ployee from the crew of one subcontractor to that of an-
green, then either Gordon or some other contractor
other. Thus, Campbell testified that Mylan had asked
makes the repairs. If the subcontractor who performed
him (Campbell) to hire and train an employee who had
the work is still working for Respondent Evergreen and
been working around Respondent Evergreen's shop. Ac-
if someone else performs the repair work, then that sub-
cording to Campbell, Mylan had said "in the beginning
contractor is backcharged for the cost of the repairs.
· .. that I was to take him for a couple of days and that
The method of computing the cost of a roofing job is
Chris Romei was to take him for a couple of days" after
based on the number of squares involved. A square is 10
2 or 3 days of working for Campbell, the employee was
by 10 feet. The rate charged per square is known as the
switched to another crew, with Mylan telling Campbell
par rate. It is Respondent Evergreen which sets the par
that he was pulling the man off Campbell's crew and
rates for the various types of roofs that can be installed
transferring him to that of another subcontractor.
using the polyester cold processing system. The subcon-
Until January 1980 Respondent Evergreen employed
tractor, in turn, is awarded a flat percentage of that rate,
Charles R. Gordon as its superintendent. He distributed
by Respondent Evergreen, for installing the roof. Romei
the roofing work to the subcontractors. From approxi-
claimed that this percentage rate had been negotiated by
mately November 1978 to the end of January 1980, a
Evergreen and by Fresh Air. However, his testimony in
period during which Respondent Evergreen had consid-
this respect was less than credible, being unsupported
ered those performing roofing work as subcontractors,
either by specific examples of such purported negotia-
Gordon testified that he had regularly gone to sites
tions orbycorroboration from other witnesses. Indeed,
where subcontractors were working to check on their
Mylan testified that Respondent Evergreen publishes a
progress. Campbell testified, without contradiction, that
a
on approximately 30 percent of the jobs which he had
sand wch
,
which
is updated fros shod bi tie
perfoed while
working as a subcontractor for Re
and which shows the rate at which ISRs should bid the
performed while working as a subcontractor for Re-
various types of roofs for application by the polyester
spondent Evergreen, both Gordon and Mylan had come
v a n o u s t
o f
r o o f s
f o r a
ation by the polyester
to the sites to check on the progress of the work being
cold prooessing systemAccording to Mylan that same
performed there. Moreover, Campbell also testified that,
standard par sheet is used by the subcontractors to deter-
on approximately 20 to 25 percent of the total numbers
mine, based on a percentage of the cost of the job, the
of jobs which he had been assigned, Mylan or Gordon
rate at which the subcontractors will be remunerated.
had given him instructions with regard to "prepping my
Both Gardner and Romei testified that there had been
jobs, prepping my work before I sprayed it, before I laid
occasions when, on arriving at the job, they had discov-
the roofing material down. Take a fire wall, for instance,
ered that it had been underbid and that the rates set for
up on a roof that has old roofing material on it that has
performing the work were not sufficient. In that event,
to be repaired. ...
The acceptability of the work to
they testified that they would contact Respondent Ever-
Chuck or Jerry sometimes wasn't acceptable, the work
green, normally Gordon, and seek a readjustment. So far
itself and it had to be redone." Indeed, Gordon conceded
as the record discloses, however, final determination as
that he also had checked the quality of the work after
to whether a readjustment will be permitted rests with
each job had been completed.
Respondent Evergreen. While the two subcontractors
In January
1980 Gordon executed an Independent
testified that they had the right to refuse to perform a
Sales Representative Agreement. However, in addition
job if Respondent Evergreen refused to increase the
to continuing to distribute work to subcontractors,
amount that they would be paid for doing so, there is no
Gordon continues to go to jobsites to inspect the work
evidence that they have ever done so. Moreover, there is
of subcontractors and is paid to do so by Respondent
no showing that situations involving underbidding or
Evergreen. Thus, while he does not spend as much time
low bidding of jobs have ever arisen with any significant
doing so now as had formally been the fact, his inspec-
degree of frequency. Finally, it is worth noting, that,
tion visits to sites occupy a maximum of approximately 8
while Gardner and Romei are ostensibly both employed
to 10 hours each week. He visits projects "as long as I
by Fresh Air Roofing, each of them submits separate
have the time" and attempts to visit each job, while it is
bills for the work performed by his crew. So far as the
in progress, on at least one occasion. Moreover, he con-
record discloses Fresh Air, itself, does not submit a
tinues to inspect projects after they have been complet-
single bill for the total of work performed collectively
ed, although only in instances where problems have
by the crews of Romei and Gardner. In short, notwith-
arisen in connection with them.
standing the existence of Fresh Air as an ostensibly inde-
Subcontractors guarantee their work. However, that
pendent entity, Respondents continue to deal separately
guarantee is not written and is given only to Respondent
and individually with Gardner and Romei.
Evergreen, not to customers. Respondent Evergreen,
Mylan and each of the subcontractors testified that the
itself, extends a 4-year warranty to oustomers on roofs
latter were free to seek work other than for Respondent
which it contracts to install. If a defect in the work of a
Evergreen. However, both Campbell and Gardner testi-
subcontractor is discovered, it is Respondent Evergreen,
fied that they had never done so. Romei testified equiv-
not the subcontractor who installed the roof, that is con-
ocally with regard to this point. Initially, he claimed that
tacted by the customer. Gordon testified that if the sub-
he had attempted to get other work for Fresh Airs and
contractor who did the work is still working for Re-
spondent Evergreen, he dispatches that subcontractor to
I A claim not corroborated by Gardner who is, after all, Romei's part-
repair the problem. However, if that particular subcon-
ner.
474
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
of at least one instance where Mylan switched an em-
tractor is no longer doing work for Respondent Ever-
ployee from the crew of one subcontractor to that of an-
green, then either Gordon or some other contractor
other. Thus, Campbell testified that Mylan had asked
makes the repairs. If the subcontractor who performed
him (Campbell) to hire and train an employee who had
the work is still working for Respondent Evergreen and
been working around Respondent Evergreen's shop. Ac-
if someone else performs the repair work, then that sub-
cording to Campbell, Mylan had said "in the beginning
contractor is backcharged for the cost of the repairs.
. . . that I was to take him for a couple of days and that
The method of computing the cost of a roofing job is
Chris Romei was to take him for a couple of days" after
based on the number of squares involved. A square is 10
2 or 3 days of working for Campbell, the employee was
by 10 feet. The rate charged per square is known as the
switched to another crew, with Mylan telling Campbell
par rate. It is Respondent Evergreen which sets the par
that he was pulling the man off Campbell's crew and
rates for the various types of roofs that can be installed
transferring him to that of another subcontractor.
using the polyester cold processing system. The subcon-
Until January 1980 Respondent Evergreen employed
tractor, in turn, is awarded a flat percentage of that rate,
Charles R. Gordon as its superintendent. He distributed
by Respondent Evergreen, for installing the roof. Romei
the roofing work to the subcontractors. From approxi-
claimed that this percentage rate had been negotiated by
mately November 1978 to the end of January 1980, a
Evergreen and by Fresh Air. However, his testimony in
period during which Respondent Evergreen had consid-
this respect was less than credible, being unsupported
ered those performing roofing work as subcontractors,
either by specific examples of such purported negotia-
Gordon testified that he had regularly gone to sites
tions or by corroboration from other witnesses. Indeed,
where subcontractors were working to check on their
t
Respondent Evergreen publishes a
progress. Campbell testified, without contradiction, that
sd
p
s
w
on approximately 30 percent of the jobs which he had
and which shows the rate at which ISRs should bid the
performed while working as a subcontractor for Re-
spondent Evergreen, both Gordon and Mylan had come
v a n o us t
o f
r o o f s
f o r apcation by the polyester
to the sites to check on the progress of the work being
cold processing system. According to Mylan that same
performed there. Moreover, Campbell also testified that,
s t an d ar d par sh ee t is us ed by t h e subcontractors to deter-
on approximately 20 to 25 percent of the total numbers
mine, b a sed
o n
a percentage o f
t h e cost of the job, the
of jobs which he had been assigned, Mylan or Gordon
ra t e at w h i h t h e subcontractors will be remunerated.
had given him instructions with regard to "prepping my
Both Gardner and Romei testified that there had been
jobs, prepping my work before I sprayed it, before I laid
occasions when, on arriving at the job, they had discov-
the roofing material down. Take a fire wall, for instance,
ered that it had been underbid and that the rates set for
up on a roof that has old roofing material on it that has
performing the work were not sufficient. In that event,
to be repaired. . . . The acceptability of the work to
they testified that they would contact Respondent Ever-
Chuck or Jerry sometimes wasn't acceptable, the work
green, normally Gordon, and seek a readjustment. So far
itself and it had to be redone." Indeed, Gordon conceded
as the record discloses, however, final determination as
that he also had checked the quality of the work after
to whether a readjustment will be permitted rests with
each job had been completed.
Respondent Evergreen. While the two subcontractors
In January
1980 Gordon executed an Independent
testified that they had the right to refuse to perform a
Sales Representative Agreement. However, in addition
job if Respondent Evergreen refused to increase the
to continuing to distribute work to subcontractors,
amount that they would be paid for doing so, there is no
Gordon continues to go to jobsites to inspect the work
evidence that they have ever done so. Moreover, there is
of subcontractors and is paid to do so by Respondent
no showing that situations involving underbidding or
Evergreen. Thus, while he does not spend as much time
low bidding of jobs have ever arisen with any significant
doing so now as had formally been the fact, his inspec-
degree of frequency. Finally, it is worth noting, that,
tion visits to sites occupy a maximum of approximately 8
while Gardner and Romei are ostensibly both employed
to 10 hours each week. He visits projects "as long as I
by Fresh Air Roofing, each of them submits separate
have the time" and attempts to visit each job, while it is
bills for the work performed by his crew. So far as the
in progress, on at least one occasion. Moreover, he con-
record discloses Fresh Air, itself, does not submit a
tinues to inspect projects after they have been complet-
single bill for the total of work performed collectively
ed, although only in instances where problems have
by the crews of Romei and Gardner. In short, notwith-
arisen in connection with them.
standing the existence of Fresh Air as an ostensibly inde-
Subcontractors guarantee their work. However, that
pendent entity, Respondents continue to deal separately
guarantee is not written and is given only to Respondent
and individually with Gardner and Romei.
Evergreen, not to customers. Respondent Evergreen,
Mylan and each of the subcontractors testified that the
itself, extends a 4-year warranty to customers on roofs
latter were free to seek work other than for Respondent
which it contracts to install. If a defect in the work of a
Evergreen. However, both Campbell and Gardner testi-
subcontractor is discovered, it is Respondent Evergreen,
fied that they had never done so. Romei testified equiv-
not the subcontractor who installed the roof, that is con-
ocally with regard to this point. Initially, he claimed that
tacted by the customer. Gordon testified that if the sub-
he had attempted to get other work for Fresh Air" and
contractor who did the work is still working for Re-
spondent Evergreen, he dispatches that subcontractor to
I A claim not corroborated by Gardner who is, after all, Romei's part-
repair the problem. However, if that particular subcon-
ner.
474
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
of at least one instance where Mylan switched an em-
tractor is no longer doing work for Respondent Ever-
ployee from the crew of one subcontractor to that of an-
green, then either Gordon or some other contractor
other. Thus, Campbell testified that Mylan had asked
makes the repairs. If the subcontractor who performed
him (Campbell) to hire and train an employee who had
the work is still working for Respondent Evergreen and
been working around Respondent Evergreen's shop. Ac-
if someone else performs the repair work, then that sub-
cording to Campbell, Mylan had said "in the beginning
contractor is backcharged for the cost of the repairs.
. . . that I was to take him for a couple of days and that
The method of computing the cost of a roofing job is
Chris Romei was to take him for a couple of days" after
based on the number of squares involved. A square is 10
2 or 3 days of working for Campbell, the employee was
by 10 feet. The rate charged per square is known as the
switched to another crew, with Mylan telling Campbell
par rate. It is Respondent Evergreen which sets the par
that he was pulling the man off Campbell's crew and
rates for the various types of roofs that can be installed
transferring him to that of another subcontractor.
using the polyester cold processing system. The subcon-
Until January 1980 Respondent Evergreen employed
tractor, in turn, is awarded a flat percentage of that rate,
Charles R. Gordon as its superintendent. He distributed
by Respondent Evergreen, for installing the roof. Romei
the roofing work to the subcontractors. From approxi-
claimed that this percentage rate had been negotiated by
mately November 1978 to the end of January 1980, a
Evergreen and by Fresh Air. However, his testimony in
period during which Respondent Evergreen had consid-
this respect was less than credible, being unsupported
ered those performing roofing work as subcontractors,
either by specific examples of such purported negotia-
Gordon testified that he had regularly gone to sites
tions or by corroboration from other witnesses. Indeed,
where subcontractors were working to check on their
t
Respondent Evergreen publishes a
progress. Campbell testified, without contradiction, that
sd
p
s
w
on approximately 30 percent of the jobs which he had
and which shows the rate at which ISRs should bid the
performed while working as a subcontractor for Re-
spondent Evergreen, both Gordon and Mylan had come
v a n o us t
o f
r o o f s
f o r apcation by the polyester
to the sites to check on the progress of the work being
cold processing system. According to Mylan that same
performed there. Moreover, Campbell also testified that,
s t an d ar d par sh ee t is us ed by t h e subcontractors to deter-
on approximately 20 to 25 percent of the total numbers
mine, b a sed
o n
a percentage of t h e cost of the job, the
of jobs which he had been assigned, Mylan or Gordon
ra t e at w h i h t h e subcontractors will be remunerated.
had given him instructions with regard to "prepping my
Both Gardner and Romei testified that there had been
jobs, prepping my work before I sprayed it, before I laid
occasions when, on arriving at the job, they had discov-
the roofing material down. Take a fire wall, for instance,
ered that it had been underbid and that the rates set for
up on a roof that has old roofing material on it that has
performing the work were not sufficient. In that event,
to be repaired. . . . The acceptability of the work to
they testified that they would contact Respondent Ever-
Chuck or Jerry sometimes wasn't acceptable, the work
green, normally Gordon, and seek a readjustment. So far
itself and it had to be redone." Indeed, Gordon conceded
as the record discloses, however, final determination as
that he also had checked the quality of the work after
to whether a readjustment will be permitted rests with
each job had been completed.
Respondent Evergreen. While the two subcontractors
In January
1980 Gordon executed an Independent
testified that they had the right to refuse to perform a
Sales Representative Agreement. However, in addition
job if Respondent Evergreen refused to increase the
to continuing to distribute work to subcontractors,
amount that they would be paid for doing so, there is no
Gordon continues to go to jobsites to inspect the work
evidence that they have ever done so. Moreover, there is
of subcontractors and is paid to do so by Respondent
no showing that situations involving underbidding or
Evergreen. Thus, while he does not spend as much time
low bidding of jobs have ever arisen with any significant
doing so now as had formally been the fact, his inspec-
degree of frequency. Finally, it is worth noting, that,
tion visits to sites occupy a maximum of approximately 8
while Gardner and Romei are ostensibly both employed
to 10 hours each week. He visits projects "as long as I
by Fresh Air Roofing, each of them submits separate
have the time" and attempts to visit each job, while it is
bills for the work performed by his crew. So far as the
in progress, on at least one occasion. Moreover, he con-
record discloses Fresh Air, itself, does not submit a
tinues to inspect projects after they have been complet-
single bill for the total of work performed collectively
ed, although only in instances where problems have
by the crews of Romei and Gardner. In short, notwith-
arisen in connection with them.
standing the existence of Fresh Air as an ostensibly inde-
Subcontractors guarantee their work. However, that
pendent entity, Respondents continue to deal separately
guarantee is not written and is given only to Respondent
and individually with Gardner and Romei.
Evergreen, not to customers. Respondent Evergreen,
Mylan and each of the subcontractors testified that the
itself, extends a 4-year warranty to customers on roofs
latter were free to seek work other than for Respondent
which it contracts to install. If a defect in the work of a
Evergreen. However, both Campbell and Gardner testi-
subcontractor is discovered, it is Respondent Evergreen,
fied that they had never done so. Romei testified equiv-
not the subcontractor who installed the roof, that is con-
ocally with regard to this point. Initially, he claimed that
tacted by the customer. Gordon testified that if the sub-
he had attempted to get other work for Fresh Air" and
contractor who did the work is still working for Re-
spondent Evergreen, he dispatches that subcontractor to
I A claim not corroborated by Gardner who is, after all, Romei's part-
repair the problem. However, if that particular subcon-
ner.
474
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
of at least one instance where Mylan switched an em-
tractor is no longer doing work for Respondent Ever-
ployee from the crew of one subcontractor to that of an-
green, then either Gordon or some other contractor
other. Thus, Campbell testified that Mylan had asked
makes the repairs. If the subcontractor who performed
him (Campbell) to hire and train an employee who had
the work is still working for Respondent Evergreen and
been working around Respondent Evergreen's shop. Ac-
if someone else performs the repair work, then that sub-
cording to Campbell, Mylan had said "in the beginning
contractor is backcharged for the cost of the repairs.
. . . that I was to take him for a couple of days and that
The method of computing the cost of a roofing job is
Chris Romei was to take him for a couple of days" after
based on the number of squares involved. A square is 10
2 or 3 days of working for Campbell, the employee was
by 10 feet. The rate charged per square is known as the
switched to another crew, with Mylan telling Campbell
par rate. It is Respondent Evergreen which sets the par
that he was pulling the man off Campbell's crew and
rates for the various types of roofs that can be installed
transferring him to that of another subcontractor.
using the polyester cold processing system. The subcon-
Until January 1980 Respondent Evergreen employed
tractor, in turn, is awarded a flat percentage of that rate,
Charles R. Gordon as its superintendent. He distributed
by Respondent Evergreen, for installing the roof. Romei
the roofing work to the subcontractors. From approxi-
claimed that this percentage rate had been negotiated by
mately November 1978 to the end of January 1980, a
Evergreen and by Fresh Air. However, his testimony in
period during which Respondent Evergreen had consid-
this respect was less than credible, being unsupported
ered those performing roofing work as subcontractors,
either by specific examples of such purported negotia-
Gordon testified that he had regularly gone to sites
tions or by corroboration from other witnesses. Indeed,
where subcontractors were working to check on their
t
Respondent Evergreen publishes a
progress. Campbell testified, without contradiction, that
sd
p
s
w
on approximately 30 percent of the jobs which he had
and which shows the rate at which ISRs should bid the
performed while working as a subcontractor for Re-
spondent Evergreen, both Gordon and Mylan had come
v a n o us t
o f
r o o f s
f o r a
cation by the polyester
to the sites to check on the progress of the work being
cold processing system. According to Mylan that same
performed there. Moreover, Campbell also testified that,
s t an d ar d par sh ee t is us ed by t h e subcontractors to deter-
on approximately 20 to 25 percent of the total numbers
mine, b a sed
o n
a percentage of the cost of the job, the
of jobs which he had been assigned, Mylan or Gordon
r at e at w h i h t h e subcontractors will be remunerated.
had given him instructions with regard to "prepping my
Both Gardner and Romei testified that there had been
jobs, prepping my work before I sprayed it, before I laid
occasions when, on arriving at the job, they had discov-
the roofing material down. Take a fire wall, for instance,
ered that it had been underbid and that the rates set for
up on a roof that has old roofing material on it that has
performing the work were not sufficient. In that event,
to be repaired. . . . The acceptability of the work to
they testified that they would contact Respondent Ever-
Chuck or Jerry sometimes wasn't acceptable, the work
green, normally Gordon, and seek a readjustment. So far
itself and it had to be redone." Indeed, Gordon conceded
as the record discloses, however, final determination as
that he also had checked the quality of the work after
to whether a readjustment will be permitted rests with
each job had been completed.
Respondent Evergreen. While the two subcontractors
In January
1980 Gordon executed an Independent
testified that they had the right to refuse to perform a
Sales Representative Agreement. However, in addition
job if Respondent Evergreen refused to increase the
to continuing to distribute work to subcontractors,
amount that they would be paid for doing so, there is no
Gordon continues to go to jobsites to inspect the work
evidence that they have ever done so. Moreover, there is
of subcontractors and is paid to do so by Respondent
no showing that situations involving underbidding or
Evergreen. Thus, while he does not spend as much time
low bidding of jobs have ever arisen with any significant
doing so now as had formally been the fact, his inspec-
degree of frequency. Finally, it is worth noting, that,
tion visits to sites occupy a maximum of approximately 8
while Gardner and Romei are ostensibly both employed
to 10 hours each week. He visits projects "as long as I
by Fresh Air Roofing, each of them submits separate
have the time" and attempts to visit each job, while it is
bills for the work performed by his crew. So far as the
in progress, on at least one occasion. Moreover, he con-
record discloses Fresh Air, itself, does not submit a
tinues to inspect projects after they have been complet-
single bill for the total of work performed collectively
ed, although only in instances where problems have
by the crews of Romei and Gardner. In short, notwith-
arisen in connection with them.
standing the existence of Fresh Air as an ostensibly inde-
Subcontractors guarantee their work. However, that
pendent entity, Respondents continue to deal separately
guarantee is not written and is given only to Respondent
and individually with Gardner and Romei.
Evergreen, not to customers. Respondent Evergreen,
Mylan and each of the subcontractors testified that the
itself, extends a 4-year warranty to customers on roofs
latter were free to seek work other than for Respondent
which it contracts to install. If a defect in the work of a
Evergreen. However, both Campbell and Gardner testi-
subcontractor is discovered, it is Respondent Evergreen,
fied that they had never done so. Romei testified equiv-
not the subcontractor who installed the roof, that is con-
ocally with regard to this point. Initially, he claimed that
tacted by the customer. Gordon testified that if the sub-
he had attempted to get other work for Fresh Air" and
contractor who did the work is still working for Re-
spondent Evergreen, he dispatches that subcontractor to
I A claim not corroborated by Gardner who is, after all, Romei's part-
repair the problem. However, if that particular subcon-
ner.
BETTER BUILDING SUPPLY CORP.
475
that there had been a time when he had done work other
accorded degree of independence, Respondent Ever-
than for Respondent Evergreen. Later, however, he ac-
green controls the significant and crucial means by
knowledged that he had performed such work prior to
which subcontractors perform roofing work, with the
forming Fresh Air and that, since working as a subcon-
result that the subcontractors operations are integrated
tractor for Respondent Evergreen, all of his work had
fully into those of Respondent Evergreen and that the
been performed at the behest of that firm. Indeed, it
subcontractors lack the entrepreneurial ability normally
seems unlikely that subcontractors would be in a position
arising from independent contractor status. Most obvious
to perform polyester cold process roofing installation
in this regard is Respondent Evergreen's control over
work on their own, separate from Respondent Ever-
the process to be followed by subcontractors in installing
green. For, Romei agreed that the rig was the heart of
roofs. Respondent Evergreen does not simply retain sub-
Respondent Evergreen's system of installing roofs. As
contractors to install roofs by whatever means they
noted above, Gardner testified that it would not be com-
deem most appropriate. Rather, Respondent Evergreen
petitive to install roofs by the polyester cold processing
markets a specific system for installing roofs, the polyes-
system without the rigs. Yet, the rigs are stored at Re-
ter cold processing system, and subcontractors are
spondent Evergreen's yard when not in use, and Gordon
obliged to install roofs in accordance with that system.
testified that he would not have authorized removal of
So far as the record discloses, subcontractors have no
the rig by a subcontractor to install a roof for a roofing
discretion in this regard and no ability to use some other
company other than Respondent Evergreen.
method, for example, the hot tar process described in
Respondents argue that the subcontractors are inde-
footnote 2, supra, for applying roofs. Consequently, they
pendent contractors, within the meaning of Section 2(3)
are not free to attempt to improve their profit by substi-
of the Act, and, accordingly, that their crewmembers are
tuting a possibly less costly alternative system for the
their own employees and not those of Respondents, spe-
one specified by Respondent Evergreen.
cifically Respondent Evergreen. Several factors are pres-
It is Respondent Evergreen, specifically Gordon, who
ent which tend to support that contention. Thus, for ex-
selects the particular projects on which subcontractors
ample, the subcontractors have been established as nomi-
are assigned to work in the Seattle area. So far as the
nally separate enterprises, in some cases having been in-
record discloses, subcontractors make no contribution to
corporated, with their own business licenses. They have
these decisions. Accordingly, the right of assignment to
rented or purchased some of the vehicles and equipment
projects rests exclusively with Respondent Evergreen,
which they use. They insure and pay for the fuel and
thereby precluding subcontractors from any possibility of
other costs of these vehicles. They hire their own crew
improving their situation through negotiation of better
members, determine the rates of pay for those crew-
selection of assignments. Moreover, save for those seem-
members, pay the crew, and make all necessary deduc-
ingly rare instances where subcontractors have sold roof
tions and contributions on their behalf. They are free to
installations as independent sales representatives, they
work for firms other than Respondent Evergreen.
have no contact with customers regarding the prices at
Yet the fact that subcontractors have established their
which the roofing work will be performed. Even in situ-
own entities, hire, and pay their own helpers, own or
ations where the subcontractor sells the project as an in-
lease their own vehicles which they insure and are, in
dependent sales representative, the commissions which
theory, free to work for a number of companies does not
subcontractors will receive are set by Respondent Ever-
compel the conclusion that an independent contractor re-
green, pursuant to the above-quoted provision from the
lationship exists. See, e.g., Seven-Up Bottling Company of
Independent Sales Representative Agreement.
Boston, Inc. v. N.LR.B., 506 F.2d 596, 599-600 (Ist Cir.
While subcontractors can and have sought changes in
While subcontractors can and have sought changes in
1974); N.LR.B. v. John Warner, d/b/a D.J.W. Cartage,
587 4F.2d 896, 900901 (8th Cirn. 1978). For the correct
h rate of compensation for performing specific roofing
587 F.2d 896, 900-901 (8th Cir. 1978). For the correct
projects, the evidence shows that such changes have
test for determining whether an employee or independ-
p
the evdence
hows that such changes have
test for determining
whether an employee or ndepen
been confined to situations where the projects have been
ent contractor relationship exists is rooted in whether or
n
ne
to
aon
her th
ts a
be
underbid, for one reason or another, and, thus, cannot be
not a company, such as Respondent Evergreen, has con-
uerd
f
e eson o notea
hs
n
trol over the details and means by which work is to be
erformed
t the cost contemplated when sold Thus,
performed. Thus, as the United States Court of Appeals
these renegotiated changes do not originate from the sub-
for the Seventh Circuit stated in N.LR.B. v. Phoenix
contractors'
desire to increase their profit margins,
Mut Life Ins. Co, 167 F.2d 983, 986 (7th Cir. 1948),
beyond that contemplated by Respondent Evergreen.
cert. denied 335 U.S. 845:
Rather, they occur within the framework of Respondent
Evergreen's unilaterally established price and cost struc-
T]Jhe employer-employee relationship exists when
ture and arise only, so far as the record shows, where in-
the person for whom the work is done has the right
dependent sales representatives have failed to apply that
to control and direct the work, not only as to the
structure properly to specific jobs. Moreover, there is no
result accomplished by the work, but also as to the
showing that these types of situations arise within any
details and means by which that result is accom-
degree of regularity or frequency. In any event, so far as
plished, and . . . it is the right and not the exercise
the record discloses, the ultimate determination as to
of control which is the determining element.
whether to read just the prices of particular jobs rests
solely with Respondent Evergreen. Although subcon-
In this case, a preponderance of the evidence shows
tractors testified that, in theory, they were free to reject
that, while Respondent Evergreen's subcontractors are
projects if underestimated, in practice only single in-
BETTER BUILDING SUPPLY CORP.
475
that there had been a time when he had done work other
accorded degree of independence, Respondent Ever-
than for Respondent Evergreen. Later, however, he ac-
green controls the significant and crucial means by
knowledged that he had performed such work prior to
which subcontractors perform roofing work, with the
forming Fresh Air and that, since working as a subcon-
result that the subcontractors operations are integrated
tractor for Respondent Evergreen, all of his work had
fully into those of Respondent Evergreen and that the
been performed at the behest of that firm. Indeed, it
subcontractors lack the entrepreneurial ability normally
seems unlikely that subcontractors would be in a position
arising from independent contractor status. Most obvious
to perform polyester cold process roofing installation
in this regard is Respondent Evergreen's control over
work on their own, separate from Respondent Ever-
the process to be followed by subcontractors in installing
green. For, Romei agreed that the rig was the heart of
roofs. Respondent Evergreen does not simply retain sub-
Respondent Evergreen's system of installing roofs. As
contractors to install roofs by whatever means they
noted above, Gardner testified that it would not be com-
deem most appropriate. Rather, Respondent Evergreen
petitive to install roofs by the polyester cold processing
markets a specific system for installing roofs, the polyes-
system without the rigs. Yet, the rigs are stored at Re-
ter cold processing system, and subcontractors are
spondent Evergreen's yard when not in use, and Gordon
obliged to install roofs in accordance with that system.
testified that he would not have authorized removal of
So far as the record discloses, subcontractors have no
the rig by a subcontractor to install a roof for a roofing
discretion in this regard and no ability to use some other
company other than Respondent Evergreen.
method, for example, the hot tar process described in
Respondents argue that the subcontractors are inde-
footnote 2, supra, for applying roofs. Consequently, they
pendent contractors, within the meaning of Section 2(3)
are not free to attempt to improve their profit by substi-
of the Act, and, accordingly, that their crewmembers are
tuting a possibly less costly alternative system for the
their own employees and not those of Respondents, spe-
one specified by Respondent Evergreen.
cifically Respondent Evergreen. Several factors are pres-
It is Respondent Evergreen, specifically Gordon, who
ent which tend to support that contention. Thus, for ex-
selects the particular projects on which subcontractors
ample, the subcontractors have been established as nomi-
are assigned to work in the Seattle area. So far as the
nally separate enterprises, in some cases having been in-
record discloses, subcontractors make no contribution to
corporated, with their own business licenses. They have
these decisions. Accordingly, the right of assignment to
rented or purchased some of the vehicles and equipment
projects rests exclusively with Respondent Evergreen,
which they use. They insure and pay for the fuel and
thereby precluding subcontractors from any possibility of
other costs of these vehicles. They hire their own crew
improving their situation through negotiation of better
members, determine the rates of pay for those crew-
selection of assignments. Moreover, save for those seem-
members, pay the crew, and make all necessary deduc-
ingly rare instances where subcontractors have sold roof
tions and contributions on their behalf. They are free to
installations as independent sales representatives, they
work for firms other than Respondent Evergreen.
have no contact with customers regarding the prices at
Yet the fact that subcontractors have established their
which the roofing work will be performed. Even in situ-
own entities, hire, and pay their own helpers, own or
ations where the subcontractor sells the project as an in-
lease their own vehicles which they insure and are, in
dependent sales representative, the commissions which
theory, free to work for a number of companies does not
subcontractors will receive are set by Respondent Ever-
compel the conclusion that an independent contractor re-
green, pursuant to the above-quoted provision from the
lationship exists. See, e.g., Sevn-Up Bottling Company of
Independent Sales Representative Agreement.
Boston, Inc. v. N.L.R.B., 506 F.2d 596, 599-600 (Ist Cir.
Whlsucnrtosanndavsugthnesi
^ '^LR~~v~nhn
^
R
d //?;
5?)^
S^
'
W hi e subcontractors can and have sought changes in
1974);
N
.L.R.B
.
v. John Warner, d~bla D.J. W e
Cartage, the rate of compensation for performing specific roofing
587 F.2d 896, 900-901 (8th Cir. 1978). For the correct
prjcsthevdnehoshasuhhngsae
test for determining whether an employee or independ-
P"
1 '
t
e
v d e
c . ! h
w
h
t
s
c
. c
a
g
s
h
v
testfordeteminng
wethr anempoyeeor ndepnd-
been confined to situations where the projects have been
ent contractor relationship exists is rooted in whether or
b
id, f
o r
o
s
o n o
r
t h e
t
s ca no
b e
not a company, such as Respondent Evergreen, has con-
perbrd
at the cost ontempatd whus,
Thue
trol over the details and means by which work is to be
Performed at the cost contemplated when sold Thus,
performed. Thus, as the United States Court of Appeals
t h es e renegotiated changes do not originate from the sub-
for the Seventh Circuit stated in N.L.R.B. v. Phoenix
contractors'
desire to increase their profit margins,
Mut. Life Ins. Co, 167 F.2d 983, 986 (7th Cir. 1948),
beyond t h a t
contemplated by Respondent Evergreen.
cert. denied 335 U.S. 845:
Rather, they occur within the framework of Respondent
Evergreen's unilaterally established price and cost struc-
[T]he employer-employee relationship exists when
ture and arise only, so far as the record shows, where in-
the person for whom the work is done has the right
dependent sales representatives have failed to apply that
to control and direct the work, not only as to the
structure properly to specific jobs. Moreover, there is no
result accomplished by the work, but also as to the
showing that these types of situations arise within any
details and means by which that result is accom-
degree of regularity or frequency. In any event, so far as
plished, and ...
it is the right and not the exercise
the record discloses, the ultimate determination as to
of control which is the determining element.
whether to read just the prices of particular jobs rests
solely with Respondent Evergreen. Although subcon-
In this case, a preponderance of the evidence shows
tractors testified that, in theory, they were free to reject
that, while Respondent Evergreen's subcontractors are
projects if underestimated, in practice only single in-
BETTER BUILDING SUPPLY CORP.
475
that there had been a time when he had done work other
accorded degree of independence, Respondent Ever-
than for Respondent Evergreen. Later, however, he ac-
green controls the significant and crucial means by
knowledged that he had performed such work prior to
which subcontractors perform roofing work, with the
forming Fresh Air and that, since working as a subcon-
result that the subcontractors operations are integrated
tractor for Respondent Evergreen, all of his work had
fully into those of Respondent Evergreen and that the
been performed at the behest of that firm. Indeed, it
subcontractors lack the entrepreneurial ability normally
seems unlikely that subcontractors would be in a position
arising from independent contractor status. Most obvious
to perform polyester cold process roofing installation
in this regard is Respondent Evergreen's control over
work on their own, separate from Respondent Ever-
the process to be followed by subcontractors in installing
green. For, Romei agreed that the rig was the heart of
roofs. Respondent Evergreen does not simply retain sub-
Respondent Evergreen's system of installing roofs. As
contractors to install roofs by whatever means they
noted above, Gardner testified that it would not be com-
deem most appropriate. Rather, Respondent Evergreen
petitive to install roofs by the polyester cold processing
markets a specific system for installing roofs, the polyes-
system without the rigs. Yet, the rigs are stored at Re-
ter cold processing system, and subcontractors are
spondent Evergreen's yard when not in use, and Gordon
obliged to install roofs in accordance with that system.
testified that he would not have authorized removal of
So far as the record discloses, subcontractors have no
the rig by a subcontractor to install a roof for a roofing
discretion in this regard and no ability to use some other
company other than Respondent Evergreen.
method, for example, the hot tar process described in
Respondents argue that the subcontractors are inde-
footnote 2, supra, for applying roofs. Consequently, they
pendent contractors, within the meaning of Section 2(3)
are not free to attempt to improve their profit by substi-
of the Act, and, accordingly, that their crewmembers are
tuting a possibly less costly alternative system for the
their own employees and not those of Respondents, spe-
one specified by Respondent Evergreen.
cifically Respondent Evergreen. Several factors are pres-
It is Respondent Evergreen, specifically Gordon, who
ent which tend to support that contention. Thus, for ex-
selects the particular projects on which subcontractors
ample, the subcontractors have been established as nomi-
are assigned to work in the Seattle area. So far as the
nally separate enterprises, in some cases having been in-
record discloses, subcontractors make no contribution to
corporated, with their own business licenses. They have
these decisions. Accordingly, the right of assignment to
rented or purchased some of the vehicles and equipment
projects rests exclusively with Respondent Evergreen,
which they use. They insure and pay for the fuel and
thereby precluding subcontractors from any possibility of
other costs of these vehicles. They hire their own crew
improving their situation through negotiation of better
members, determine the rates of pay for those crew-
selection of assignments. Moreover, save for those seem-
members, pay the crew, and make all necessary deduc-
ingly rare instances where subcontractors have sold roof
tions and contributions on their behalf. They are free to
installations as independent sales representatives, they
work for firms other than Respondent Evergreen.
have no contact with customers regarding the prices at
Yet the fact that subcontractors have established their
which the roofing work will be performed. Even in situ-
own entities, hire, and pay their own helpers, own or
ations where the subcontractor sells the project as an in-
lease their own vehicles which they insure and are, in
dependent sales representative, the commissions which
theory, free to work for a number of companies does not
subcontractors will receive are set by Respondent Ever-
compel the conclusion that an independent contractor re-
green, pursuant to the above-quoted provision from the
lationship exists. See, e.g., Sevn-Up Bottling Company of
Independent Sales Representative Agreement.
Boston, Inc. v. N.L.R.B., 506 F.2d 596, 599-600 (Ist Cir.
Whlsucnrtosanndavsugthnesi
^ '^LR~~v~nhn
^
R
d //?;
5?)^
S^
'
W hi e subcontractors can and have sought changes in
1974);
N
.L.R.B
.
v. John Warner, d~bla D.J. W e
Cartage, the rate of compensation for performing specific roofing
587 F.2d 896, 900-901 (8th Cir. 1978). For the correct
prjcsthevdnehoshasuhhngsae
test for determining whether an employee or independ-
P"
1 '
t
e
v d e
c . ! h
w
h
t
s
c
. c
a
g
s
h
v
testfordeteminng
wethr anempoyeeor ndepnd-
been confined to situations where the projects have been
ent contractor relationship exists is rooted in whether or
b
id, f
o r
o
s
o n o
r
t h e
t
s ca no
b e
not a company, such as Respondent Evergreen, has con-
perbrd
at the cost ontempatd whus,
Thue
trol over the details and means by which work is to be
Performed at the cost contemplated when sold Thus,
performed. Thus, as the United States Court of Appeals
t h es e renegotiated changes do not originate from the sub-
for the Seventh Circuit stated in N.L.R.B. v. Phoenix
contractors'
desire to increase their profit margins,
Mut. Life Ins. Co, 167 F.2d 983, 986 (7th Cir. 1948),
beyond t h a t
contemplated by Respondent Evergreen.
cert. denied 335 U.S. 845:
Rather, they occur within the framework of Respondent
Evergreen's unilaterally established price and cost struc-
[T]he employer-employee relationship exists when
ture and arise only, so far as the record shows, where in-
the person for whom the work is done has the right
dependent sales representatives have failed to apply that
to control and direct the work, not only as to the
structure properly to specific jobs. Moreover, there is no
result accomplished by the work, but also as to the
showing that these types of situations arise within any
details and means by which that result is accom-
degree of regularity or frequency. In any event, so far as
plished, and ...
it is the right and not the exercise
the record discloses, the ultimate determination as to
of control which is the determining element.
whether to read just the prices of particular jobs rests
solely with Respondent Evergreen. Although subcon-
In this case, a preponderance of the evidence shows
tractors testified that, in theory, they were free to reject
that, while Respondent Evergreen's subcontractors are
projects if underestimated, in practice only single in-
BETTER BUILDING SUPPLY CORP.
475
that there had been a time when he had done work other
accorded degree of independence, Respondent Ever-
than for Respondent Evergreen. Later, however, he ac-
green controls the significant and crucial means by
knowledged that he had performed such work prior to
which subcontractors perform roofing work, with the
forming Fresh Air and that, since working as a subcon-
result that the subcontractors operations are integrated
tractor for Respondent Evergreen, all of his work had
fully into those of Respondent Evergreen and that the
been performed at the behest of that firm. Indeed, it
subcontractors lack the entrepreneurial ability normally
seems unlikely that subcontractors would be in a position
arising from independent contractor status. Most obvious
to perform polyester cold process roofing installation
in this regard is Respondent Evergreen's control over
work on their own, separate from Respondent Ever-
the process to be followed by subcontractors in installing
green. For, Romei agreed that the rig was the heart of
roofs. Respondent Evergreen does not simply retain sub-
Respondent Evergreen's system of installing roofs. As
contractors to install roofs by whatever means they
noted above, Gardner testified that it would not be com-
deem most appropriate. Rather, Respondent Evergreen
petitive to install roofs by the polyester cold processing
markets a specific system for installing roofs, the polyes-
system without the rigs. Yet, the rigs are stored at Re-
ter cold processing system, and subcontractors are
spondent Evergreen's yard when not in use, and Gordon
obliged to install roofs in accordance with that system.
testified that he would not have authorized removal of
So far as the record discloses, subcontractors have no
the rig by a subcontractor to install a roof for a roofing
discretion in this regard and no ability to use some other
company other than Respondent Evergreen.
method, for example, the hot tar process described in
Respondents argue that the subcontractors are inde-
footnote 2, supra, for applying roofs. Consequently, they
pendent contractors, within the meaning of Section 2(3)
are not free to attempt to improve their profit by substi-
of the Act, and, accordingly, that their crewmembers are
tuting a possibly less costly alternative system for the
their own employees and not those of Respondents, spe-
one specified by Respondent Evergreen.
cifically Respondent Evergreen. Several factors are pres-
It is Respondent Evergreen, specifically Gordon, who
ent which tend to support that contention. Thus, for ex-
selects the particular projects on which subcontractors
ample, the subcontractors have been established as nomi-
are assigned to work in the Seattle area. So far as the
nally separate enterprises, in some cases having been in-
record discloses, subcontractors make no contribution to
corporated, with their own business licenses. They have
these decisions. Accordingly, the right of assignment to
rented or purchased some of the vehicles and equipment
projects rests exclusively with Respondent Evergreen,
which they use. They insure and pay for the fuel and
thereby precluding subcontractors from any possibility of
other costs of these vehicles. They hire their own crew
improving their situation through negotiation of better
members, determine the rates of pay for those crew-
selection of assignments. Moreover, save for those seem-
members, pay the crew, and make all necessary deduc-
ingly rare instances where subcontractors have sold roof
tions and contributions on their behalf. They are free to
installations as independent sales representatives, they
work for firms other than Respondent Evergreen.
have no contact with customers regarding the prices at
Yet the fact that subcontractors have established their
which the roofing work will be performed. Even in situ-
own entities, hire, and pay their own helpers, own or
ations where the subcontractor sells the project as an in-
lease their own vehicles which they insure and are, in
dependent sales representative, the commissions which
theory, free to work for a number of companies does not
subcontractors will receive are set by Respondent Ever-
compel the conclusion that an independent contractor re-
green, pursuant to the above-quoted provision from the
lationship exists. See, e.g., Sevn-Up Bottling Company of
Independent Sales Representative Agreement.
Boston, Inc. v. N.L.R.B., 506 F.2d 596, 599-600 (Ist Cir.
Whlsucnrtosanndavsugthnesi
^ '^LR~~v~nhn
^
R
d //?;
5?)^
S^
'
W hi e subcontractors can and have sought changes in
1974);
N
.L.RV
S.
v. John Warner, d~bla D.J. W e
Cartage, the rate of compensation for performing specific roofing
587 F.2d 896, 900-901 (8th Cir. 1978). For the correct
prjcsthevdnehoshasuhhngsae
test for determining whether an employee or independ-
P^
8
h
e
d e n
!
o w
t
a
s
c
.
h
ng
av
testfordeteminng
wethr anempoyeeor ndepnd-
been confined to situations where the projects have been
ent contractor relationship exists is rooted in whether or
b
id, f
o r
o
s
o n o
r
t h e
t
s ca no
b e
not a company, such as Respondent Evergreen, has con-
perbrd
at the cost ontempatd whus,
Thue
trol over the details and means by which work is to be
Performed at the cost contemplated when sold Thus,
performed. Thus, as the United States Court of Appeals
t h es e renegotiated changes do not originate from the sub-
for the Seventh Circuit stated in N.L.R.B. v. Phoenix
contractors'
desire to increase their profit margins,
Mut. Life Ins. Co, 167 F.2d 983, 986 (7th Cir. 1948),
beyond t h a t
contemplated by Respondent Evergreen.
cert. denied 335 U.S. 845:
Rather, they occur within the framework of Respondent
Evergreen's unilaterally established price and cost struc-
[T]he employer-employee relationship exists when
ture and arise only, so far as the record shows, where in-
the person for whom the work is done has the right
dependent sales representatives have failed to apply that
to control and direct the work, not only as to the
structure properly to specific jobs. Moreover, there is no
result accomplished by the work, but also as to the
showing that these types of situations arise within any
details and means by which that result is accom-
degree of regularity or frequency. In any event, so far as
plished, and ...
it is the right and not the exercise
the record discloses, the ultimate determination as to
of control which is the determining element.
whether to read just the prices of particular jobs rests
solely with Respondent Evergreen. Although subcon-
In this case, a preponderance of the evidence shows
tractors testified that, in theory, they were free to reject
that, while Respondent Evergreen's subcontractors are
projects if underestimated, in practice only single in-
476
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
stance of rejection of a job by a subcontractor was pro-
while subcontractors guarantee their work, that guaran-
vided and that particular rejection was for reason unre-
tee is a nonwritten one given only to Respondent Ever-
lated to the profitability of the particular job declined by
green and not to the customers. The 4-year warranty
Romei. Of course, in this area, "it is the actual practice
that is extended to customers is one given by Respondent
which controls." Queen City Paving Company, 243 NLRB
Evergreen. In the final analysis, it is to Respondent Ev-
71, fn. 6 (1979); see also Seven-Up Bottling Company of
ergreen, not to the subcontractors, that customers look
Boston, supra, 506 F.2d at 600.
for correction of deficiencies and for restitution of dam-
In sum, therefore, Respondent Evergreen has exclusive
ages caused by subcontractors.
control over the income of its subcontractors from work
As noted above, the fact that subcontractors lease or
performed for it, having been the party in control of ne-
purchase vehicles which they use in performing work for
gotiations for roofing contracts with customers, having
Respondent Evergreen is not determinative of the rela-
been the one to select the jobs which the subcontractors
tionship to Respondent Evergreen. See Brotherhood of
will perform, and having unilaterally determined the
Carpenters and Joiners (Carpet Center, Inc.), supra; Sheet
rates to be paid to the subcontractors for performing that
Metal Workers Union Local 283, Sheet Metal Workers In-
work. Subcontractors are left in the position of having
ternational Association, AFL-CIO (Thomas A. DeVol,
no contact with customers and "no opportunity for the
d
a Tad's Service), 72 NLRB 652, 658 (1968) So far
negotiation of different rates" with them for performing
as the evidence discloses even without these vehicles the
roofing installations. Lucky Stores, Inc., 243 NLRB 642,
644 (1979). "Decisions with respect to the line of prod-
subconracors would stll be able to instal roofs using
ucts to be sold, the type of customer to be serviced, and,
he
yester cold prossing system. For, the vehicles
in general, the normal risk-taking ventures which distin-
that are crucial to that system are the pumper rigs
guish
the small
businessman/independent
contractor
Those owned by Mylan and are furnished to the subcon-
from an employee are, in this case, all made by [Re-
tractors at a nominal rental fee, at best, under an oral
spondent Evergreen]." The Standard Oil Co. (of Ohio),
lease. Without these rigs, it is uncontradicted that it
241 NLRB 1248, 1251 (1979).
would not be competitive to install roofs using the poly-
As set forth above, in theory the subcontractors are
ester cold processing system. Moreover, in addition to
free to perform roofing work other than for Respondent
the pumper rigs, Respondent Evergreen furnishes, appar-
Evergreen. However, in practice, so far as the evidence
ently at no cost to the subcontractors, chase trucks
discloses, none of them has ever done so, and, of course,
which are used to transport the materials needed for per-
it is the practice which is controlling in this area. Queen
forming the roofing work at no cost to the subcontrac-
City Paving Co., supra. Moreover, it is unlikely that they
tors. Thus, the essential vehicles used to install the roof-
would be able to install roofs using the polyester cold
ing system, by means of the polyester cold processing
processing system independently of Respondent Ever-
system, and to transport materials to project sites are fur-
green. For the pumper rig is necessary to do so competi-
nished by Respondent Evergreen to the subcontractors,
tively and Gordon testified that he would not authorize
virtually at no cost. And, as Gordon's testimony illus-
the use of these rigs by subcontractors to, in effect, com-
trates, control of those vehicles remains with Respondent
pete with Respondent Evergreen. 9 Nor is there any evi-
Evergreen.
dence that Respondent Evergreen would permit subcon-
Respondent Evergreen also furnishes the material
tractors to forgo accepting its assignments for roofing
needed to install the roofs at no cost to the subcontrac-
work in order to engage in other roofing work, inde-
tors. There is no evidence that subcontractors are free to
pendent of Respondent Evergreen. In any event, the per-
substitute alternative, possibly cheaper, materials from
formance of work for others than Respondent Evergreen
other sources for that provided by Respondent Ever-
would not, of itself, suffice to establish that an independ-
green. Consequently, so far as the record discloses, the
ent contractor relationship exists. See, e.g., Carpet, Lino-
subcontractors are not able to increase profit by search-
leum and Soft Tile Layers Local No. 1238 (Robert A.
ing for and securing alternative sources for supplies. In
Arnold d/b/a Arnold's Carpet), 175 NLRB 332, 334
effect, that is controlled exlusively by Respondent Ever-
(1969).
green. Although subcontractors are obliged to pay for
While subcontractors are expected to repair or pay for
materials damaged, lost, or used negligently, that does
any damage that they might cause to a customer's prop-
not appear to have been a significant occurrence and, in
erty, and to correct or pay for the correction of any defi-
any event, it is not abnormal for employers to charge
ciency in the roofing work they perform, of itself, this
employees for negligent loss, damage, on use of materi-
would not dictate conclusion that an independent con-
als. Accordingly, this factor does not dictate the exist-
tractor relationship exists. Local No. 2265, United Broth-
ence of an independent contractor relationship.
erhood of Carpenters and Joiners of America, AFL-CIO
Great emphasis is placed by Respondents on the fact
(Carpet Center, Inc.), 170 NLRB 633, 634 (1968). Indeed,
that subcontractors select their own employees for hire,
~- -- ,.... ,
~direct their work, and set their rates of compensation,
Although at least one subcontractor testified that he had purchased a
ir
ir
r
a
ir
flatbed truck for the purpose of developing his own rig, there is no evi-
which is paid by the subcontractors. Yet, close examina-
dence that he has made any further efforts, beyond the purchase of the
tion of these features shows that the independent judg-
vehicle, to do so. Moreover, there is no evidence that such a rig would
ment exercised by subcontractors in this area is not much
be developed by that contractor within any forseeable period of time. In
diffenent, if at all, from that which is exercised by many
these circumstances, it is, at best, speculative that this subcontractor
would develop his own rig to, in effect, compete with Respondent in
supervisors. Thus, the nature of the work to be done is
using the polyester cold processing system in the future.
governed by the facts that Respondent Evergreen has
476
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
stance of rejection of a job by a subcontractor was pro-
while subcontractors guarantee their work, that guaran-
vided and that particular rejection was for reason unre-
tee is a nonwritten one given only to Respondent Ever-
lated to the profitability of the particular job declined by
green and not to the customers. The 4-year warranty
Romei. Of course, in this area, "it is the actual practice
that is extended to customers is one given by Respondent
which controls." Queen City Paving Company, 243 NLRB
Evergreen. In the final analysis, it is to Respondent Ev-
71, fn. 6 (1979); see also Seven-Up Bottling Company of
ergreen, not to the subcontractors, that customers look
Boston, supra, 506 F.2d at 600.
for correction of deficiencies and for restitution of dam-
In sum, therefore, Respondent Evergreen has exclusive
ages caused by subcontractors.
control over the income of its subcontractors from work
As noted above, the fact that subcontractors lease or
performed for it, having been the party in control of ne-
purchase vehicles which they use in performing work for
gotiations for roofing contracts with customers, having
Respondent Evergreen is not determinative of the rela-
been the one to select the jobs which the subcontractors
tionship to Respondent Evergreen. See Brotherhood of
will perform, and having unilaterally determined the
Carpenters and Joiners (Carpet Center, Inc.), supra; Sheet
rates to be paid to the subcontractors for performing that
Metal Workers Union Local 283, Sheet Metal Workers In-
work. Subcontractors are left in the position of having
ternational Association, AFL-CIO (Thomas A. DeVol,
no contact with customers and "no opportunity for the
d
Td S
17
N
6
6
negotiation of different rates" with them for performing
as the evidence discloses, even without these vehicles the
roofing installations. Lucky Stores, Inc., 243 NLRB 642,
s
wou sti
be a
t
n
r
u
644 (1979). "Decisions with respect to the line of prod-
ste
c o lyester co
l d
s sing syse
F
o
t
he vehicle
s
ucts to be sold, the type of customer to be serviced, and,
h at are
c
o
Pat
system are
the
vehigs
in general, the normal risk-taking ventures which distin-
t h a t
areowned
1 to
t h at
synt em
ar e
th e
Ptotpesbogs.
guish
the small
businessman/independent contractor
Those owned by Mylan and are furnished to the subcono
from an employee are, in this case, all made by [Re-
rac t o rs
s
atha n o t n sal re n t al. fe e
i
at
bes t
u n d er
an, o ral
spondent Evergreen]." The Standard Oil Co. (of Ohio),
leas e , W l th o u t
t t ese
"B8' *t *s uncontradicted that it
241 NLRB 1248, 1251 (1979).
would not be competitive to install roofs using the poly-
As set forth above, in theory the subcontractors are
est e r
co l d Processing system. Moreover, in addition to
free to perform roofing work other than for Respondent
the pumper rigs, Respondent Evergreen furnishes, appar-
Evergreen. However, in practice, so far as the evidence
ently at no co st to t h e
subcontractors, chase trucks
discloses, none of them has ever done so, and, of course,
w h ic h ar e us ed to transport the materials needed for per-
it is the practice which is controlling in this area. Queen
forming the roofing work at no cost to the subcontrac-
City Paving Co., supra. Moreover, it is unlikely that they
tors. Thus, the essential vehicles used to install the roof-
would be able to install roofs using the polyester cold
ing system, by means of the polyester cold processing
processing system independently of Respondent Ever-
system, and to transport materials to project sites are fur-
green. For the pumper rig is necessary to do so competi-
nished by Respondent Evergreen to the subcontractors,
tively and Gordon testified that he would not authorize
virtually at no cost. And, as Gordon's testimony illus-
the use of these rigs by subcontractors to, in effect, com-
trates, control of those vehicles remains with Respondent
pete with Respondent Evergreen." Nor is there any evi-
Evergreen.
dence that Respondent Evergreen would permit subcon-
Respondent Evergreen also furnishes the material
tractors to forgo accepting its assignments for roofing
needed to install the roofs at no cost to the subcontrac-
work in order to engage in other roofing work, inde-
tors. There is no evidence that subcontractors are free to
pendent of Respondent Evergreen. In any event, the per-
substitute alternative, possibly cheaper, materials from
formance of work for others than Respondent Evergreen
other sources for that provided by Respondent Ever-
would not, of itself, suffice to establish that an independ-
green. Consequently, so far as the record discloses, the
ent contractor relationship exists. See, e.g., Carpet, Lino-
subcontractors are not able to increase profit by search-
leum and Soft Tile Layers Local No. 1238 (Robert A.
ing for and securing alternative sources for supplies. In
Arnold d/b/a Arnold's Carpet), 175 NLRB 332, 334
effect, that is controlled exiusively by Respondent Ever-
(1969).
green. Although subcontractors are obliged to pay for
While subcontractors are expected to repair or pay for
materials damaged, lost, or used negligently, that does
any damage that they might cause to a customer's prop-
not appear to have been a significant occurrence and, in
erty, and to correct or pay for the correction of any defi-
any event, it is not abnormal for employers to charge
ciency in the roofing work they perform, of itself, this
employees for negligent loss, damage, on use of materi-
would not dictate conclusion that an independent con-
als. Accordingly, this factor does not dictate the exist-
tractor relationship exists. Local No. 2265. United Broth-
ence of an independent contractor relationship.
erhood of Carpenters and Joiners of America, AFL-CIO
Great emphasis is placed by Respondents on the fact
(Carpet Center, Inc.), 170 NLRB 633, 634 (1968). Indeed,
that subcontractors select their own employees for hire,
~-- -"-,
., . .
. .
,
~~~~~direct their work, and set their rates of compensation,
I Although at least one subcontractor testified that he had purchased a
re
t
wr
an
set te
rae of c
psi
flatbed truck for the purpose of developing his own rig, there is no evi-
w h ic h is paid by t h e subcontractors. Yet, close examina-
dence that he has made any further efforts, beyond the purchase of the
tion of these features shows that the independent judg-
vehicle, to do so. Moreover, there is no evidence that such a rig would
ment exercised by subcontractors in this area is not much
be developed by that contractor within any forseeable period of time. In
diffenent, if at all, from that which is exercised by many
these circumstances, it is, at best, speculative that this subcontractor
would develop his own rig to, in effect, compete with Respondent in
supervisors. Thus, the nature of the work to be done is
using the polyester cold processing system in the future.
governed by the facts that Respondent Evergreen has
476
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
stance of rejection of a job by a subcontractor was pro-
while subcontractors guarantee their work, that guaran-
vided and that particular rejection was for reason unre-
tee is a nonwritten one given only to Respondent Ever-
lated to the profitability of the particular job declined by
green and not to the customers. The 4-year warranty
Romei. Of course, in this area, "it is the actual practice
that is extended to customers is one given by Respondent
which controls." Queen City Paving Company, 243 NLRB
Evergreen. In the final analysis, it is to Respondent Ev-
71, fn. 6 (1979); see also Seven-Up Bottling Company of
ergreen, not to the subcontractors, that customers look
Boston, supra, 506 F.2d at 600.
for correction of deficiencies and for restitution of dam-
In sum, therefore, Respondent Evergreen has exclusive
ages caused by subcontractors.
control over the income of its subcontractors from work
As noted above, the fact that subcontractors lease or
performed for it, having been the party in control of ne-
purchase vehicles which they use in performing work for
gotiations for roofing contracts with customers, having
Respondent Evergreen is not determinative of the rela-
been the one to select the jobs which the subcontractors
tionship to Respondent Evergreen. See Brotherhood of
will perform, and having unilaterally determined the
Carpenters and Joiners (Carpet Center, Inc.), supra; Sheet
rates to be paid to the subcontractors for performing that
Metal Workers Union Local 283, Sheet Metal Workers In-
work. Subcontractors are left in the position of having
ternational Association, AFL-CIO (Thomas A. DeVol,
no contact with customers and "no opportunity for the
d
Td S
17
N
6
6
negotiation of different rates" with them for performing
as the evidence discloses, even without these vehicles the
roofing installations. Lucky Stores, Inc., 243 NLRB 642,
s
wou sti
be a
t
n
r
u
644 (1979). "Decisions with respect to the line of prod-
ste
c o lyester co
l d
s sing syse
F
o
t
he vehicle
s
ucts to be sold, the type of customer to be serviced, and,
h at are
c
r
l to
essat system are
the
vehigs
in general, the normal risk-taking ventures which distin-
t h a t
areowned
1 to
t h ataynd
ar e
th e
Ptotpesbogs.
guish
the small
businessman/independent contractor
Those owned by Mylan and are furnished to the subcono
from an employee are, in this case, all made by [Re-
rac t o rs
s
atha n o t n sal re n t al. fe e
i
at
bes t
u n d er
an, o ral
spondent Evergreen]." The Standard Oil Co. (of Ohio),
leas e , W l th o u t
t t ese
"B8' *t *s uncontradicted that it
241 NLRB 1248, 1251 (1979).
would not be competitive to install roofs using the poly-
As set forth above, in theory the subcontractors are
est e r
co l d processing system. Moreover, in addition to
free to perform roofing work other than for Respondent
the pumper rigs, Respondent Evergreen furnishes, appar-
Evergreen. However, in practice, so far as the evidence
ently at no co st to t h e
subcontractors, chase trucks
discloses, none of them has ever done so, and, of course,
w h ic h are used to transport the materials needed for per-
it is the practice which is controlling in this area. Queen
forming the roofing work at no cost to the subcontrac-
City Paving Co., supra. Moreover, it is unlikely that they
tors. Thus, the essential vehicles used to install the roof-
would be able to install roofs using the polyester cold
ing system, by means of the polyester cold processing
processing system independently of Respondent Ever-
system, and to transport materials to project sites are fur-
green. For the pumper rig is necessary to do so competi-
nished by Respondent Evergreen to the subcontractors,
tively and Gordon testified that he would not authorize
virtually at no cost. And, as Gordon's testimony illus-
the use of these rigs by subcontractors to, in effect, com-
trates, control of those vehicles remains with Respondent
pete with Respondent Evergreen." Nor is there any evi-
Evergreen.
dence that Respondent Evergreen would permit subcon-
Respondent Evergreen also furnishes the material
tractors to forgo accepting its assignments for roofing
needed to install the roofs at no cost to the subcontrac-
work in order to engage in other roofing work, inde-
tors. There is no evidence that subcontractors are free to
pendent of Respondent Evergreen. In any event, the per-
substitute alternative, possibly cheaper, materials from
formance of work for others than Respondent Evergreen
other sources for that provided by Respondent Ever-
would not, of itself, suffice to establish that an independ-
green. Consequently, so far as the record discloses, the
ent contractor relationship exists. See, e.g., Carpet, Lino-
subcontractors are not able to increase profit by search-
leum and Soft Tile Layers Local No. 1238 (Robert A.
ing for and securing alternative sources for supplies. In
Arnold d/b/a Arnold's Carpet), 175 NLRB 332, 334
effect, that is controlled exiusively by Respondent Ever-
(1969).
green. Although subcontractors are obliged to pay for
While subcontractors are expected to repair or pay for
materials damaged, lost, or used negligently, that does
any damage that they might cause to a customer's prop-
not appear to have been a significant occurrence and, in
erty, and to correct or pay for the correction of any defi-
any event, it is not abnormal for employers to charge
ciency in the roofing work they perform, of itself, this
employees for negligent loss, damage, on use of materi-
would not dictate conclusion that an independent con-
als. Accordingly, this factor does not dictate the exist-
tractor relationship exists. Local No. 2265. United Broth-
ence of an independent contractor relationship.
erhood of Carpenters and Joiners of America, AFL-CIO
Great emphasis is placed by Respondents on the fact
(Carpet Center, Inc.), 170 NLRB 633, 634 (1968). Indeed,
that subcontractors select their own employees for hire,
~-- -"-,
., . .
. .
,
~~~~~direct their work, and set their rates of compensation,
I Although at least one subcontractor testified that he had purchased a
re
t
wr
an
set te
rae of c
psi
flatbed truck for the purpose of developing his own rig, there is no evi-
w h ic h is paid by t h e subcontractors. Yet, close examina-
dence that he has made any further efforts, beyond the purchase of the
tion of these features shows that the independent judg-
vehicle, to do so. Moreover, there is no evidence that such a rig would
ment exercised by subcontractors in this area is not much
be developed by that contractor within any forseeable period of time. In
diffenent, if at all, from that which is exercised by many
these circumstances, it is, at best, speculative that this subcontractor
would develop his own rig to, in effect, compete with Respondent in
supervisors. Thus, the nature of the work to be done is
using the polyester cold processing system in the future.
governed by the facts that Respondent Evergreen has
476
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
stance of rejection of a job by a subcontractor was pro-
while subcontractors guarantee their work, that guaran-
vided and that particular rejection was for reason unre-
tee is a nonwritten one given only to Respondent Ever-
lated to the profitability of the particular job declined by
green and not to the customers. The 4-year warranty
Romei. Of course, in this area, "it is the actual practice
that is extended to customers is one given by Respondent
which controls." Queen City Paving Company, 243 NLRB
Evergreen. In the final analysis, it is to Respondent Ev-
71, fn. 6 (1979); see also Seven-Up Bottling Company of
ergreen, not to the subcontractors, that customers look
Boston, supra, 506 F.2d at 600.
for correction of deficiencies and for restitution of dam-
In sum, therefore, Respondent Evergreen has exclusive
ages caused by subcontractors.
control over the income of its subcontractors from work
As noted above, the fact that subcontractors lease or
performed for it, having been the party in control of ne-
purchase vehicles which they use in performing work for
gotiations for roofing contracts with customers, having
Respondent Evergreen is not determinative of the rela-
been the one to select the jobs which the subcontractors
tionship to Respondent Evergreen. See Brotherhood of
will perform, and having unilaterally determined the
Carpenters and Joiners (Carpet Center, Inc.), supra; Sheet
rates to be paid to the subcontractors for performing that
Metal Workers Union Local 283, Sheet Metal Workers In-
work. Subcontractors are left in the position of having
ternational Association, AFL-CIO (Thomas A. DeVol,
no contact with customers and "no opportunity for the
d
Td S
17
N
6
6
negotiation of different rates" with them for performing
as the evidence discloses, even without these vehicles the
roofing installations. Lucky Stores, Inc., 243 NLRB 642,
s
wou sti
be a
t
n
r
u
644 (1979). "Decisions with respect to the line of prod-
ste
c o lyester co
l d
s sing syse
F
o
t
he vehicle
s
ucts to be sold, the type of customer to be serviced, and,
h at are
c
r
l to
essat system are
the
vehigs
in general, the normal risk-taking ventures which distin-
t h a t
areowned
1 to
t h ataynd
ar e
th e
Ptotpesbogs.
guish
the small
businessman/independent contractor
Those owned by Mylan and are furnished to the subcono
from an employee are, in this case, all made by [Re-
rac t o rs
s
atha n o t n sal re n t al. fe e
i
at
bes t
u n d er
an, o ral
spondent Evergreen]." The Standard Oil Co. (of Ohio),
leas e , W l th o u t
t t ese
"B8' *t *s uncontradicted that it
241 NLRB 1248, 1251 (1979).
would not be competitive to install roofs using the poly-
As set forth above, in theory the subcontractors are
est e r
co l d processing system. Moreover, in addition to
free to perform roofing work other than for Respondent
the pumper rigs, Respondent Evergreen furnishes, appar-
Evergreen. However, in practice, so far as the evidence
ently at no co st to t h e
subcontractors, chase trucks
discloses, none of them has ever done so, and, of course,
w h ic h are used to transport the materials needed for per-
it is the practice which is controlling in this area. Queen
forming the roofing work at no cost to the subcontrac-
City Paving Co., supra. Moreover, it is unlikely that they
tors. Thus, the essential vehicles used to install the roof-
would be able to install roofs using the polyester cold
ing system, by means of the polyester cold processing
processing system independently of Respondent Ever-
system, and to transport materials to project sites are fur-
green. For the pumper rig is necessary to do so competi-
nished by Respondent Evergreen to the subcontractors,
tively and Gordon testified that he would not authorize
virtually at no cost. And, as Gordon's testimony illus-
the use of these rigs by subcontractors to, in effect, com-
trates, control of those vehicles remains with Respondent
pete with Respondent Evergreen." Nor is there any evi-
Evergreen.
dence that Respondent Evergreen would permit subcon-
Respondent Evergreen also furnishes the material
tractors to forgo accepting its assignments for roofing
needed to install the roofs at no cost to the subcontrac-
work in order to engage in other roofing work, inde-
tors. There is no evidence that subcontractors are free to
pendent of Respondent Evergreen. In any event, the per-
substitute alternative, possibly cheaper, materials from
formance of work for others than Respondent Evergreen
other sources for that provided by Respondent Ever-
would not, of itself, suffice to establish that an independ-
green. Consequently, so far as the record discloses, the
ent contractor relationship exists. See, e.g., Carpet, Lino-
subcontractors are not able to increase profit by search-
leum and Soft Tile Layers Local No. 1238 (Robert A.
ing for and securing alternative sources for supplies. In
Arnold d/b/a Arnold's Carpet), 175 NLRB 332, 334
effect, that is controlled exiusively by Respondent Ever-
(1969).
green. Although subcontractors are obliged to pay for
While subcontractors are expected to repair or pay for
materials damaged, lost, or used negligently, that does
any damage that they might cause to a customer's prop-
not appear to have been a significant occurrence and, in
erty, and to correct or pay for the correction of any defi-
any event, it is not abnormal for employers to charge
ciency in the roofing work they perform, of itself, this
employees for negligent loss, damage, on use of materi-
would not dictate conclusion that an independent con-
als. Accordingly, this factor does not dictate the exist-
tractor relationship exists. Local No. 2265. United Broth-
ence of an independent contractor relationship.
erhood of Carpenters and Joiners of America, AFL-CIO
Great emphasis is placed by Respondents on the fact
(Carpet Center, Inc.), 170 NLRB 633, 634 (1968). Indeed,
that subcontractors select their own employees for hire,
~-- -"-,
., . .
. .
,
~~~~~direct their work, and set their rates of compensation,
I Although at least one subcontractor testified that he had purchased a
re
t
wr
an
set te
rae of c
psi
flatbed truck for the purpose of developing his own rig, there is no evi-
w h ic h is paid by t h e subcontractors. Yet, close examina-
dence that he has made any further efforts, beyond the purchase of the
tion of these features shows that the independent judg-
vehicle, to do so. Moreover, there is no evidence that such a rig would
ment exercised by subcontractors in this area is not much
be developed by that contractor within any forseeable period of time. In
diffenent, if at all, from that which is exercised by many
these circumstances, it is, at best, speculative that this subcontractor
would develop his own rig to, in effect, compete with Respondent in
supervisors. Thus, the nature of the work to be done is
using the polyester cold processing system in the future.
governed by the facts that Respondent Evergreen has
BETTER BUILDING SUPPLY CORP.
477
contracted for the work and has determined the system
3. A unit appropriate for collective bargaining is:
to be utilized in performing it. Campbell's uncontradicted
testimony illustrates that, in addition, Mylan and Gordon
All roofers and waterproofers employed by Better
come to sites and give their own directions on a not in-
Building Supply Corp., Evergreen Roofing, Inc.,
significant number of occasions. Further, the wage rates
and their subcontractors employed in Clallam, Jef-
of crewmembers selected by subcontractors are subject
ferson, King, Kitsap, Mason and Snohomish Coun-
to the limitations of the amount that subcontractors will
ties, Washington; excluding professional employees,
receive for performing the work. That amount, as found
guards and supervisors as defined in the Act.
above, is established unilaterally by Respondent Ever-
green. Finally, the ability to select crewmembers who
4. At all times material Local 54 of the United Slate,
will be hired is a supervisory function. Of itself, it does
Tile & Composition Roofers, Damp and Waterproof
not dictate a conclusion that there is independent con-
Workers Association, AFL-CIO, has been the exclusive
tractor status. In any event, the record here shows that
collective-bargaining representative of the employees in
Respondent Evergreen has been involved in this process.
the above-described bargaining unit within the meaning
It has suggested that particular employees be used as
of Section 9(a) of the Act.
crewmembers by subcontractors. On at least one occa-
5. By failing and refusing to continue recognizing
sion, it unilaterally has shifted an employee from one
Local 54 of the United Slate, Tile & Composition Roof-
subcontractor's crew to that of another. When possible,
ers, Damp and Waterproof Workers Association, AFL-
it provides work in its yard for subcontractors' crew-
it provides work in its yard for subcontractors' crew-
CIO, as the collective-bargaining representative of the
members when there is a shortage of roofing work for
C IO, as te
collective-bargaining representative of the
them to perform. In short, the record does not support
employees in the above-described bargaining unit and by
the independence from Respondent Evergreen of sub-
failing and refusing to apply the terms and conditions of
contractors in the area of the employment of crew-
the current collective-bargaining agreement to those em-
members that Respondent Evergreen seeks to portray.
ployees, Better Building Supply Corp., and Evergreen
Moreover, it is significant that, rather than simply paying
Roofing, Inc., have unlawfully terminated and modified
Fresh Air, as an entity, for the work which its crews
the terms and conditions of said collective-bargaining
perform, Respondent Evergreen pays Romei and Gard-
agreement before it could be reopened pursuant to its
ner separately for the work which each of their crews
provisions, thereby violating Section 8(a)(5) and (1) of
performs, thereby effectively disregarding the fact that
the Act.
they are nominally part of a single entity.
6. By failing and refusing to provide Local 54 of the
In these circumstances, I find that the subcontractors
United Slate, Tile & Composition Roofers, Damp and
used by Respondent Evergreen are not independent con-
Waterproof Workers Association, AFL-CIO, with re-
tractors but rather, despite Respondent Evergreen's
quested information that is relevant and necessary to the
change in their nominal relationship, that an employer
collective-bargaining
process,
Better Building Supply
employee relation has continued to exist between the
Corp., and Evergreen Roofing, Inc., thereby violated
roofing crews and Respondent Evergreen. Inasmuch as
Section 8(a)(5) and (1) of the Act.
Respondent Evergreen, as found above, in the same em-
7. The aforesaid unfair labor practices affect commerce
ployer as Respondent BBS, the two constituting a single
within the meaning of Section 2(6) and (7) of the Act.
employer, and in view of the fact that the roofing crews
have continued as its employees, I find that by failing to
THE REMEDY
continue applying the terms of Respondent BBS's collec-
tive-bargaining agreement to these employees during the
Having found that Better Building Supply Corp., and
period on and after May 7, 1979, Respondents have vio-
Evergreen Roofing, Inc., have engaged in certain unfair
lated Section 8(a)(5) and (1) of the Act. Moreover, by
labor practices, I shall recommend that they be ordered
failing and refusing to provide the above-described infor-
to cease and desist therefrom, and that they take certain
mation requested in the Union's January
1980 letter,
affirmative action to effectuate the policies of the Act.
which is information relative to the bargaining process,
Specifically, they shall be ordered to honor the terms of
Respondents have further violated Section 8(a)(5) and (1)
the current collective-bargaining agreement and to make
of the Act.
whole all employees for any losses sustained by the fail-
CONCLUSIONS OF LAW
ure to apply the terms and conditions of the collective-
bargaining agreement to them on and after May 7, 1979,
1. Better Building Supply Corp., and Evergreen Roof-
with interest to be paid on the amounts owing and to be
ing, Inc., are each employers within the meaning of Sec-
computed in the manner prescribed in F. W Woolworth
tion 2(2) of the Act, engaged in commerce and in busi-
Company, 90 NLRB 289 (1950), and Florida Steel Corpo-
nesses affecting commerce within the meaning of Section
ration, 231 NLRB 651 (1977). See, generally, Isis Plumb-
2(6) and (7) of the Act, and, collectively, constitute a
ing & Heating Co., 138 NLRB 716 (1962), enforcement
single employing enterprise and a single employer within
denied on different grounds 322 F.2d 913 (9th Cir. 1963).
the meaning of the Act.
Upon the foregoing findings of fact, conclusions of
2. Local 54 of the United Slate, Tile & Composition
2. Local 54 of the United Slate, Tile & Composition
law, and the entire record, and pursuant to Section 10(c)
Roofers, Damp and Waterproof Workers Association,
of the Act, I hereby issue the following recommended:
AFL-CIO, is labor organization within the meaning of
Section 2(5) of the Act.
BETTER BUILDING SUPPLY CORP.
477
contracted for the work and has determined the system
3. A unit appropriate for collective bargaining is:
to be utilized in performing it. Campbell's uncontradicted
testimony illustrates that, in addition, Mylan and Gordon
All roofers and waterproofers employed by Better
come to sites and give their own directions on a not in-
Building Supply Corp., Evergreen Roofing, Inc.,
significant number of occasions. Further, the wage rates
and their subcontractors employed in Clallam, Jef-
of crewmembers selected by subcontractors are subject
ferson, King, Kitsap, Mason and Snohomish Coun-
to the limitations of the amount that subcontractors will
ties, Washington; excluding professional employees,
receive for performing the work. That amount, as found
guards and supervisors as defined in the Act.
above, is established unilaterally by Respondent Ever-
green. Finally, the ability to select crewmembers who
4. At all times material Local 54 of the United Slate,
will be hired is a supervisory function. Of itself, it does
Tile & Composition Roofers, Damp and Waterproof
not dictate a conclusion that there is independent con-
Workers Association, AFL-CIO, has been the exclusive
tractor status. In any event, the record here shows that
collective-bargaining representative of the employees in
Respondent Evergreen has been involved in this process.
the above-described bargaining unit within the meaning
It has suggested that particular employees be used as
of Section 9(a) of the Act.
crewmembers by subcontractors. On at least one occa-
5. By failing and refusing to continue recognizing
sion, it unilaterally has shifted an employee from one
Local 54 of the United Slate, Tile & Composition Roof-
subcontractor's crew to that of another. When possible,
e
Waterproof Workers Association, AFL-
it provides work in its yard for subcontractors' crew-
C
a
t
c
rereenatveofth
members when there is a shortage of roofing work for
eC I
lo a s
t
h
e collective-bargaining representative of the
them to perform. In short, the record does not supportemployees in the above-described bargaining unit and by
the independence from Respondent Evergreen of sub-
failing a n d refusing t o apply the terms and conditions of
contractors in the area of the employment of crew-
t h e current collective-bargaining agreement to those em-
members that Respondent Evergreen seeks to portray.
ployees, Better Building Supply Corp., and Evergreen
Moreover, it is significant that, rather than simply paying
Roofing, Inc., have unlawfully terminated and modified
Fresh Air, as an entity, for the work which its crews
the terms and conditions of said collective-bargaining
perform, Respondent Evergreen pays Romei and Gard-
agreement before it could be reopened pursuant to its
ner separately for the work which each of their crews
provisions, thereby violating Section 8(a)(5) and (1) of
performs, thereby effectively disregarding the fact that
the Act.
they are nominally part of a single entity.
6. By failing and refusing to provide Local 54 of the
In these circumstances, I find that the subcontractors
United Slate, Tile & Composition Roofers, Damp and
used by Respondent Evergreen are not independent con-
Waterproof Workers Association, AFL-CIO, with re-
tractors
but rather, despite
Respondent
Evergreen's
quested information that is relevant and necessary to the
change in their nominal relationship, that an employer
collective-bargaining
process,
Better Building Supply
employee relation has continued to exist between the
Corp., and Evergreen Roofing, Inc., thereby violated
roofing crews and Respondent Evergreen. Inasmuch as
Section 8(a)(5) and (1) of the Act.
Respondent Evergreen, as found above, in the same em-
7. The aforesaid unfair labor practices affect commerce
ployer as Respondent BBS, the two constituting a singleSection
2(6) and (7) of the Act.
employer, and in view of the fact that the roofing crews
have continued as its employees, I find that by failing to
THE REMEDY
continue applying the terms of Respondent BBS's collec-
tive-bargaining agreement to these employees during the
Having found that Better Building Supply Corp., and
period on and after May 7, 1979, Respondents have vio-
Evergreen Roofing, Inc., have engaged in certain unfair
lated Section 8(a)(5) and (1) of the Act. Moreover, by
labor practices, I shall recommend that they be ordered
failing and refusing to provide the above-described infor-
to cease and desist therefrom, and that they take certain
mation requested in the Union's January
1980 letter,
affirmative action to effectuate the policies of the Act.
which is information relative to the bargaining process,
Specifically, they shall be ordered to honor the terms of
Respondents have further violated Section 8(a)(5) and (1)
the current collective-bargaining agreement and to make
of the Act.
whole all employees for any losses sustained by the fail-
CONCLUSIONS OF LAW
u r e to apply the terms and conditions of the collective-
bargaining agreement to them on and after May 7, 1979,
1. Better Building Supply Corp., and Evergreen Roof-
with interest to be paid on the amounts owing and to be
ing, Inc., are each employers within the meaning of Sec-
computed in the manner prescribed in F. W. Woolworth
tion 2(2) of the Act, engaged in commerce and in busi-
Company, 90 NLRB 289 (1950), and Florida Steel Corpo-
nesses affecting commerce within the meaning of Section
ration, 231 NLRB 651 (1977). See, generally, Isis Plumb-
2(6) and (7) of the Act, and, collectively, constitute a
ing & Heating Co., 138 NLRB 716 (1962), enforcement
single employing enterprise and a single employer within
denied on different grounds 322 F.2d 913 (9th Cir. 1963).
the meaning of the Act.
Upon the foregoing findings of fact, conclusions of
2. Local 54 of the United Slate, Tile &t Composition
^
2. Lcal 4 oftheUnitd
Slte,
ile& Coposiion
law, and the entire record, and pursuant to Section 10(c)
Roofers, D a m p and Wat e rpr o o f
W o r k er s Association,
o
t
A
I h
following recommended:
AFL-CIO, is labor organization within the meaning of
Section 2(5) of the Act.
BETTER BUILDING SUPPLY CORP.
477
contracted for the work and has determined the system
3. A unit appropriate for collective bargaining is:
to be utilized in performing it. Campbell's uncontradicted
testimony illustrates that, in addition, Mylan and Gordon
All roofers and waterproofers employed by Better
come to sites and give their own directions on a not in-
Building Supply Corp., Evergreen Roofing, Inc.,
significant number of occasions. Further, the wage rates
and their subcontractors employed in Clallam, Jef-
of crewmembers selected by subcontractors are subject
ferson, King, Kitsap, Mason and Snohomish Coun-
to the limitations of the amount that subcontractors will
ties, Washington; excluding professional employees,
receive for performing the work. That amount, as found
guards and supervisors as defined in the Act.
above, is established unilaterally by Respondent Ever-
green. Finally, the ability to select crewmembers who
4. At all times material Local 54 of the United Slate,
will be hired is a supervisory function. Of itself, it does
Tile & Composition Roofers, Damp and Waterproof
not dictate a conclusion that there is independent con-
Workers Association, AFL-CIO, has been the exclusive
tractor status. In any event, the record here shows that
collective-bargaining representative of the employees in
Respondent Evergreen has been involved in this process.
the above-described bargaining unit within the meaning
It has suggested that particular employees be used as
of Section 9(a) of the Act.
crewmembers by subcontractors. On at least one occa-
5. By failing and refusing to continue recognizing
sion, it unilaterally has shifted an employee from one
Local 54 of the United Slate, Tile & Composition Roof-
subcontractor's crew to that of another. When possible,
e
Waterproof Workers Association, AFL-
it provides work in its yard for subcontractors' crew-
C
a
t
c
rereenatveofth
members when there is a shortage of roofing work for
eC I
lo a s
t
h
e collective-bargaining representative of the
them to perform. In short, the record does not supportemployees in the above-described bargaining unit and by
the independence from Respondent Evergreen of sub-
failing a n d refusing to apply the terms and conditions of
contractors in the area of the employment of crew-
t h e current collective-bargaining agreement to those em-
members that Respondent Evergreen seeks to portray.
ployees, Better Building Supply Corp., and Evergreen
Moreover, it is significant that, rather than simply paying
Roofing, Inc., have unlawfully terminated and modified
Fresh Air, as an entity, for the work which its crews
the terms and conditions of said collective-bargaining
perform, Respondent Evergreen pays Romei and Gard-
agreement before it could be reopened pursuant to its
ner separately for the work which each of their crews
provisions, thereby violating Section 8(a)(5) and (1) of
performs, thereby effectively disregarding the fact that
the Act.
they are nominally part of a single entity.
6. By failing and refusing to provide Local 54 of the
In these circumstances, I find that the subcontractors
United Slate, Tile & Composition Roofers, Damp and
used by Respondent Evergreen are not independent con-
Waterproof Workers Association, AFL-CIO, with re-
tractors
but rather, despite
Respondent
Evergreen's
quested information that is relevant and necessary to the
change in their nominal relationship, that an employer
collective-bargaining
process,
Better Building Supply
employee relation has continued to exist between the
Corp., and Evergreen Roofing, Inc., thereby violated
roofing crews and Respondent Evergreen. Inasmuch as
Section 8(a)(5) and (1) of the Act.
Respondent Evergreen, as found above, in the same em-
7. The aforesaid unfair labor practices affect commerce
ployer as Respondent BBS, the two constituting a singleSection
2(6) and (7) of the Act.
employer, and in view of the fact that the roofing crews
have continued as its employees, I find that by failing to
THE REMEDY
continue applying the terms of Respondent BBS's collec-
tive-bargaining agreement to these employees during the
Having found that Better Building Supply Corp., and
period on and after May 7, 1979, Respondents have vio-
Evergreen Roofing, Inc., have engaged in certain unfair
lated Section 8(a)(5) and (1) of the Act. Moreover, by
labor practices, I shall recommend that they be ordered
failing and refusing to provide the above-described infor-
to cease and desist therefrom, and that they take certain
mation requested in the Union's January
1980 letter,
affirmative action to effectuate the policies of the Act.
which is information relative to the bargaining process,
Specifically, they shall be ordered to honor the terms of
Respondents have further violated Section 8(a)(5) and (1)
the current collective-bargaining agreement and to make
of the Act.
whole all employees for any losses sustained by the fail-
CONCLUSIONS OF LAW
u r e to apply the terms and conditions of the collective-
bargaining agreement to them on and after May 7, 1979,
1. Better Building Supply Corp., and Evergreen Roof-
with interest to be paid on the amounts owing and to be
ing, Inc., are each employers within the meaning of Sec-
computed in the manner prescribed in F. W. Woolworth
tion 2(2) of the Act, engaged in commerce and in busi-
Company, 90 NLRB 289 (1950), and Florida Steel Corpo-
nesses affecting commerce within the meaning of Section
ration, 231 NLRB 651 (1977). See, generally, Isis Plumb-
2(6) and (7) of the Act, and, collectively, constitute a
ing & Heating Co., 138 NLRB 716 (1962), enforcement
single employing enterprise and a single employer within
denied on different grounds 322 F.2d 913 (9th Cir. 1963).
the meaning of the Act.
Upon the foregoing findings of fact, conclusions of
2. Local 54 of the United Slate, Tile &t Composition
^
2. Lcal 4 oftheUnitd
Slte,
ile& Coposiion
law, and the entire record, and pursuant to Section 10(c)
Roofers, D a m p and Wat e rpr o o f
W o r k er s Association,
o
t
A
I h
following recommended:
AFL-CIO, is labor organization within the meaning of
Section 2(5) of the Act.
BETTER BUILDING SUPPLY CORP.
477
contracted for the work and has determined the system
3. A unit appropriate for collective bargaining is:
to be utilized in performing it. Campbell's uncontradicted
testimony illustrates that, in addition, Mylan and Gordon
All roofers and waterproofers employed by Better
come to sites and give their own directions on a not in-
Building Supply Corp., Evergreen Roofing, Inc.,
significant number of occasions. Further, the wage rates
and their subcontractors employed in Clallam, Jef-
of crewmembers selected by subcontractors are subject
ferson, King, Kitsap, Mason and Snohomish Coun-
to the limitations of the amount that subcontractors will
ties, Washington; excluding professional employees,
receive for performing the work. That amount, as found
guards and supervisors as defined in the Act.
above, is established unilaterally by Respondent Ever-
green. Finally, the ability to select crewmembers who
4. At all times material Local 54 of the United Slate,
will be hired is a supervisory function. Of itself, it does
Tile & Composition Roofers, Damp and Waterproof
not dictate a conclusion that there is independent con-
Workers Association, AFL-CIO, has been the exclusive
tractor status. In any event, the record here shows that
collective-bargaining representative of the employees in
Respondent Evergreen has been involved in this process.
the above-described bargaining unit within the meaning
It has suggested that particular employees be used as
of Section 9(a) of the Act.
crewmembers by subcontractors. On at least one occa-
5. By failing and refusing to continue recognizing
sion, it unilaterally has shifted an employee from one
Local 54 of the United Slate, Tile & Composition Roof-
subcontractor's crew to that of another. When possible,
e
Waterproof Workers Association, AFL-
it provides work in its yard for subcontractors' crew-
C
a
t
c
rereenatveofth
members when there is a shortage of roofing work for
eC I
lo a s
t
h
e collective-bargaining representative of the
them to perform. In short, the record does not supportemployees in the above-described bargaining unit and by
the independence from Respondent Evergreen of sub-
failing a n d refusing to apply the terms and conditions of
contractors in the area of the employment of crew-
t h e current collective-bargaining agreement to those em-
members that Respondent Evergreen seeks to portray.
ployees, Better Building Supply Corp., and Evergreen
Moreover, it is significant that, rather than simply paying
Roofing, Inc., have unlawfully terminated and modified
Fresh Air, as an entity, for the work which its crews
the terms and conditions of said collective-bargaining
perform, Respondent Evergreen pays Romei and Gard-
agreement before it could be reopened pursuant to its
ner separately for the work which each of their crews
provisions, thereby violating Section 8(a)(5) and (1) of
performs, thereby effectively disregarding the fact that
the Act.
they are nominally part of a single entity.
6. By failing and refusing to provide Local 54 of the
In these circumstances, I find that the subcontractors
United Slate, Tile & Composition Roofers, Damp and
used by Respondent Evergreen are not independent con-
Waterproof Workers Association, AFL-CIO, with re-
tractors
but rather, despite
Respondent
Evergreen's
quested information that is relevant and necessary to the
change in their nominal relationship, that an employer
collective-bargaining
process,
Better Building Supply
employee relation has continued to exist between the
Corp., and Evergreen Roofing, Inc., thereby violated
roofing crews and Respondent Evergreen. Inasmuch as
Section 8(a)(5) and (1) of the Act.
Respondent Evergreen, as found above, in the same em-
7. The aforesaid unfair labor practices affect commerce
ployer as Respondent BBS, the two constituting a singleSection
2(6) and (7) of the Act.
employer, and in view of the fact that the roofing crews
have continued as its employees, I find that by failing to
THE REMEDY
continue applying the terms of Respondent BBS's collec-
tive-bargaining agreement to these employees during the
Having found that Better Building Supply Corp., and
period on and after May 7, 1979, Respondents have vio-
Evergreen Roofing, Inc., have engaged in certain unfair
lated Section 8(a)(5) and (1) of the Act. Moreover, by
labor practices, I shall recommend that they be ordered
failing and refusing to provide the above-described infor-
to cease and desist therefrom, and that they take certain
mation requested in the Union's January
1980 letter,
affirmative action to effectuate the policies of the Act.
which is information relative to the bargaining process,
Specifically, they shall be ordered to honor the terms of
Respondents have further violated Section 8(a)(5) and (1)
the current collective-bargaining agreement and to make
of the Act.
whole all employees for any losses sustained by the fail-
CONCLUSIONS OF LAW
u r e to apply the terms and conditions of the collective-
bargaining agreement to them on and after May 7, 1979,
1. Better Building Supply Corp., and Evergreen Roof-
with interest to be paid on the amounts owing and to be
ing, Inc., are each employers within the meaning of Sec-
computed in the manner prescribed in F. W. Woolworth
tion 2(2) of the Act, engaged in commerce and in busi-
Company, 90 NLRB 289 (1950), and Florida Steel Corpo-
nesses affecting commerce within the meaning of Section
ration, 231 NLRB 651 (1977). See, generally, Isis Plumb-
2(6) and (7) of the Act, and, collectively, constitute a
ing & Heating Co., 138 NLRB 716 (1962), enforcement
single employing enterprise and a single employer within
denied on different grounds 322 F.2d 913 (9th Cir. 1963).
the meaning of the Act.
Upon the foregoing findings of fact, conclusions of
2. Local 54 of the United Slate, Tile &t Composition
^
2. Lcal 4 oftheUnitd
Slte,
ile& Coposiion
law, and the entire record, and pursuant to Section 10(c)
Roofers, D a m p and Wat e rpr o o f
W o r k er s Association,
o
t
A
I h
following recommended:
AFL-CIO, is labor organization within the meaning of
Section 2(5) of the Act.
478
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
ORDER'°
ployed in the bargaining unit heretofore found appropri-
ate in Conclusion of Law 3, above.
The Respondents, Better Building Supply Corp., and
ate in Conclusion of Law 3, above.
The Respondents, Better Building Supply Corp., and
(b) Apply the terms and conditions of the current col-
Evergreen Roofing, Inc., Seattle, Washington, their offi-
lective-bargaining agreement to all employees employed
cers, agents, successors, and assigns, shall:
in the aforesaid contractual bargaining unit.
1. Cease and desist from:
(c) Provide Local 54 of the United Slate, Tile & Com-
(a) Refusing to bargain collectively with Local 54 of
position Roofers, Damp and Waterproof Workers Asso-
the United Slate, Tile & Composition Roofers, Damp
ciation, AFL-CIO, with any and all requested informa-
and Waterproof Workers Association, AFL-CIO, as the
tion that is relevant and necessary to the collective-bar-
exclusive bargaining representative of all employees in
gaining process.
the bargaining unit heretofore found appropriate in Con-
(d) Make whole employees for any losses of pay or
clusion of Law 3, above.
benefits which would have accrued to them on and after
(b) Failing and refusing to apply to all employees in
May 7, 1979, under the current collective-bargaining
the aforesaid bargaining unit all terms and conditions of
agreement but for the failure to apply the terms and con-
the current collective-bargaining agreement, absent the
ditions of that agreement to all employees employed in
express written consent of Local 54 of the United Slate,
the aforesaid contractual bargaining unit on and after
Tile & Composition Roofers, Damp and Waterproof
that date.
Workers Association, AFL-CIO.
(e) Preserve and, upon request, make available to the
(c) Refusing to bargain collectively by refusing, upon
Board or its agents, for examination and copying, all
request, to supply relevant information needed by Local
payroll records, social security payment records, time-
54 of the United Slate, Tile & Composition Roofers,
cards, personnel records and reports, and all other re-
Damp and Waterproof Workers Association, AFL-CIO,
cords necessary to analyze the amount of backpay due
to represent the employees in the aforesaid bargaining
under the terms of this Order.
unit.
(f) Post at their Seattle, Washington, facility copies of
(d) Refusing to provide Local 54 of the United Slate,
the attached notice marked "Appendix."" Copies of said
Tile & Composition Roofers, Damp and Waterproof
notice, on forms provided by the Regional Director for
Workers Association, AFL-CIO, to represent the em-
Region 19, after being duly signed by their authorized
ployees in the aforesaid bargaining unit.
representative, shall be posted by Respondents immedi-
(e) In any other manner interfering with, restraining,
ately upon receipt thereof, and be maintained by them
or coercing employees in the exercise of any right guar-
for 60 consecutive days thereafter, in conspicuous places,
anteed them by Section 7 of the Act.
including all places where notices to employees are cus-
2. Take the following affirmative action which is nec-
tomarily posted. Reasonable steps shall be taken by
essary to effectuate the purposes of the Act:
Better Building Supply Co., and Evergreen Roofing,
(a) Upon request bargain collectively with Local 54 of
Inc., to insure that said notices are not altered, defaced,
the United Slate, Tile & Composition Roofers, Damp
or covered by any other material.
and Waterproof Workers Association, AFL-CIO, as the
(g) Notify the Regional Director for Region 19, in
exclusive bargaining representative of all employees em-
writing, within 20 days from the date of this Order, what
steps have been taken to comply herewith.
1o In the event no exceptions are filed as provided by Sec. 102.46 of
the Rules and Regulations of the National Labor Relations Board, the
" In the event that this Order is enforced by a Judgment of a United
findings, conclusions, and recommended Order herein shall, as provided
States Court of Appeals, the words in the notice reading "Posted by
in Sec. 102.48 of the Rules and Regulations, be adopted by the Board and
Order of the National Labor Relations Board" shall read "Posted Pursu-
become its findings, conclusions, and Order, and all objections thereto
ant to a Judgment of the United States Court of Appeals Enforcing an
shall be deemed waived for all purposes.
Order of the National Labor Relations Board."
478
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
ORDER 10
ployed in the bargaining unit heretofore found appropri-
The Respondents, Better Building Supply Corp., and
ate in Conclusion of Law 3, above.
The Respondents, Better Building Supply Corp.. and
(b) Apply the terms and conditions of the current col-
Evergreen Roofing, Inc., Seattle, Washington, their offi-
lective-bargaining agreement to all employees employed
cers, agents, successors, and assigns, shall:
in the aforesaid contractual bargaining unit.
1. Cease and desist from:
(c) provide Local 54 of the United Slate, Tile & Com-
(a) Refusing to bargain collectively with Local 54 of
position Roofers, Damp and Waterproof Workers Asso-
the United Slate, Tile & Composition Roofers, Damp
ciation, AFL-CIO, with any and all requested informa-
and Waterproof Workers Association, AFL-CIO, as the
tion that is relevant and necessary to the collective-bar-
exclusive bargaining representative of all employees in
gaining process.
the bargaining unit heretofore found appropriate in Con-
(d) Make whole employees for any losses of pay or
elusion of Law 3, above.
benefits which would have accrued to them on and after
(b) Failing and refusing to apply to all employees in
May 7, 1979, under the current collective-bargaining
the aforesaid bargaining unit all terms and conditions of
agreement but for the failure to apply the terms and con-
the current collective-bargaining agreement, absent the
ditions of that agreement to all employees employed in
express written consent of Local 54 of the United Slate,
the aforesaid contractual bargaining unit on and after
Tile & Composition Roofers, Damp and Waterproof
that date.
Workers Association, AFL-CIO.
(e) Preserve and, upon request, make available to the
(c) Refusing to bargain collectively by refusing, upon
Board or its agents, for examination and copying, all
request, to supply relevant information needed by Local
payroll records, social security payment records, time-
54 of the United Slate, Tile & Composition Roofers,
cards, personnel records and reports, and all other re-
Damp and Waterproof Workers Association, AFL-CIO,
cords necessary to analyze the amount of backpay due
to represent the employees in the aforesaid bargaining
under the terms of this Order.
unit.
(f) Post at their Seattle, Washington, facility copies of
(d) Refusing to provide Local 54 of the United Slate,
the attached notice marked "Appendix."" Copies of said
Tile & Composition Roofers, Damp and Waterproof
notice, on forms provided by the Regional Director for
Workers Association, AFL-CIO, to represent the em-
Region 19, after being duly signed by their authorized
ployees in the aforesaid bargaining unit.
representative, shall be posted by Respondents immedi-
(e) In any other manner interfering with, restraining,
ately upon receipt thereof, and be maintained by them
or coercing employees in the exercise of any right guar-
for 60 consecutive days thereafter, in conspicuous places,
anteed them by Section 7 of the Act.
including all places where notices to employees are cus-
2. Take the following affirmative action which is nec-
tomarily posted. Reasonable steps shall be taken by
essary to effectuate the purposes of the Act:
B e t t e r
Building Supply Co., and Evergreen Roofing,
(a) Upon request bargain collectively with Local 54 of
I n c ., t o in su r e
t h a t
sa i d
n o t i c e s a r e no t a lt e r e d , defaced,
the United Slate, Tile & Composition Roofers, Damp
o r covered by any other material.
and Waterproof Workers Association, AFL-CIO, as the
(g) N o t ify t h e
Regional Director for Region 19, in
exclusive bargaining representative of all employees em-
writing, w it h i n
2 0 d a ys f r o m
t h e d a t e o f t h i s O r d e r , w h a t
steps have been taken to comply herewith.
10 In the event no exceptions are filed as provided by Sec. 102.46 of
the Rules and Regulations of the National Labor Relations Board, the
In the event that this Order is enforced by a Judgment of a United
findings, conclusions, and recommended Order herein shall, as provided
States Court of Appeals, the words in the notice reading "Posted by
in Sec. 102.48 of the Rules and Regulations, be adopted by the Board and
Order of the National Labor Relations Board" shall read "Posted Pursu-
become its findings, conclusions, and Order, and all objections thereto
ant to a Judgment of the United States Court of Appeals Enforcing an
shall be deemed waived for all purposes.
Order of the National Labor Relations Board."
478
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
ORDER 10
ployed in the bargaining unit heretofore found appropri-
The Respondents, Better Building Supply Corp., and
ate in Conclusion of Law 3, above.
The Respondents, Better Building Supply Corp.. and
(b) Apply the terms and conditions of the current col-
Evergreen Roofing, Inc., Seattle, Washington, their offi-
lective-bargaining agreement to all employees employed
cers, agents, successors, and assigns, shall:
in the aforesaid contractual bargaining unit.
1. Cease and desist from:
(c) provide Local 54 of the United Slate, Tile & Com-
(a) Refusing to bargain collectively with Local 54 of
position Roofers, Damp and Waterproof Workers Asso-
the United Slate, Tile & Composition Roofers, Damp
ciation, AFL-CIO, with any and all requested informa-
and Waterproof Workers Association, AFL-CIO, as the
tion that is relevant and necessary to the collective-bar-
exclusive bargaining representative of all employees in
gaining process.
the bargaining unit heretofore found appropriate in Con-
(d) Make whole employees for any losses of pay or
elusion of Law 3, above.
benefits which would have accrued to them on and after
(b) Failing and refusing to apply to all employees in
May 7, 1979, under the current collective-bargaining
the aforesaid bargaining unit all terms and conditions of
agreement but for the failure to apply the terms and con-
the current collective-bargaining agreement, absent the
ditions of that agreement to all employees employed in
express written consent of Local 54 of the United Slate,
the aforesaid contractual bargaining unit on and after
Tile & Composition Roofers, Damp and Waterproof
that date.
Workers Association, AFL-CIO.
(e) Preserve and, upon request, make available to the
(c) Refusing to bargain collectively by refusing, upon
Board or its agents, for examination and copying, all
request, to supply relevant information needed by Local
payroll records, social security payment records, time-
54 of the United Slate, Tile & Composition Roofers,
cards, personnel records and reports, and all other re-
Damp and Waterproof Workers Association, AFL-CIO,
cords necessary to analyze the amount of backpay due
to represent the employees in the aforesaid bargaining
under the terms of this Order.
unit.
(f) Post at their Seattle, Washington, facility copies of
(d) Refusing to provide Local 54 of the United Slate,
the attached notice marked "Appendix."" Copies of said
Tile & Composition Roofers, Damp and Waterproof
notice, on forms provided by the Regional Director for
Workers Association, AFL-CIO, to represent the em-
Region 19, after being duly signed by their authorized
ployees in the aforesaid bargaining unit.
representative, shall be posted by Respondents immedi-
(e) In any other manner interfering with, restraining,
ately upon receipt thereof, and be maintained by them
or coercing employees in the exercise of any right guar-
for 60 consecutive days thereafter, in conspicuous places,
anteed them by Section 7 of the Act.
including all places where notices to employees are cus-
2. Take the following affirmative action which is nec-
tomarily posted. Reasonable steps shall be taken by
essary to effectuate the purposes of the Act:
B e t t e r
Building Supply Co., and Evergreen Roofing,
(a) Upon request bargain collectively with Local 54 of
I n c ., t o in su r e
t h a t
sa i d
n o t i c e s a r e no t a lt e r e d , defaced,
the United Slate, Tile & Composition Roofers, Damp
o r covered by any other material.
and Waterproof Workers Association, AFL-CIO, as the
(g) N o t ify t h e
Regional Director for Region 19, in
exclusive bargaining representative of all employees em-
writing, w it h i n
2 0 days f r o m the date of this Order, what
steps have been taken to comply herewith.
10 In the event no exceptions are filed as provided by Sec. 102.46 of
the Rules and Regulations of the National Labor Relations Board, the
In the event that this Order is enforced by a Judgment of a United
findings, conclusions, and recommended Order herein shall, as provided
States Court of Appeals, the words in the notice reading "Posted by
in Sec. 102.48 of the Rules and Regulations, be adopted by the Board and
Order of the National Labor Relations Board" shall read "Posted Pursu-
become its findings, conclusions, and Order, and all objections thereto
ant to a Judgment of the United States Court of Appeals Enforcing an
shall be deemed waived for all purposes.
Order of the National Labor Relations Board."
478
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
ORDER 10
ployed in the bargaining unit heretofore found appropri-
The Respondents, Better Building Supply Corp., and
ate in Conclusion of Law 3, above.
The Respondents, Better Building Supply Corp.. and
(b) Apply the terms and conditions of the current col-
Evergreen Roofing, Inc., Seattle, Washington, their offi-
lective-bargaining agreement to all employees employed
cers, agents, successors, and assigns, shall:
in the aforesaid contractual bargaining unit.
1. Cease and desist from:
(c) provide Local 54 of the United Slate, Tile & Com-
(a) Refusing to bargain collectively with Local 54 of
position Roofers, Damp and Waterproof Workers Asso-
the United Slate, Tile & Composition Roofers, Damp
ciation, AFL-CIO, with any and all requested informa-
and Waterproof Workers Association, AFL-CIO, as the
tion that is relevant and necessary to the collective-bar-
exclusive bargaining representative of all employees in
gaining process.
the bargaining unit heretofore found appropriate in Con-
(d) Make whole employees for any losses of pay or
elusion of Law 3, above.
benefits which would have accrued to them on and after
(b) Failing and refusing to apply to all employees in
May 7, 1979, under the current collective-bargaining
the aforesaid bargaining unit all terms and conditions of
agreement but for the failure to apply the terms and con-
the current collective-bargaining agreement, absent the
ditions of that agreement to all employees employed in
express written consent of Local 54 of the United Slate,
the aforesaid contractual bargaining unit on and after
Tile & Composition Roofers, Damp and Waterproof
that date.
Workers Association, AFL-CIO.
(e) Preserve and, upon request, make available to the
(c) Refusing to bargain collectively by refusing, upon
Board or its agents, for examination and copying, all
request, to supply relevant information needed by Local
payroll records, social security payment records, time-
54 of the United Slate, Tile & Composition Roofers,
cards, personnel records and reports, and all other re-
Damp and Waterproof Workers Association, AFL-CIO,
cords necessary to analyze the amount of backpay due
to represent the employees in the aforesaid bargaining
under the terms of this Order.
unit.
(f) Post at their Seattle, Washington, facility copies of
(d) Refusing to provide Local 54 of the United Slate,
the attached notice marked "Appendix."" Copies of said
Tile & Composition Roofers, Damp and Waterproof
notice, on forms provided by the Regional Director for
Workers Association, AFL-CIO, to represent the em-
Region 19, after being duly signed by their authorized
ployees in the aforesaid bargaining unit.
representative, shall be posted by Respondents immedi-
(e) In any other manner interfering with, restraining,
ately upon receipt thereof, and be maintained by them
or coercing employees in the exercise of any right guar-
for 60 consecutive days thereafter, in conspicuous places,
anteed them by Section 7 of the Act.
including all places where notices to employees are cus-
2. Take the following affirmative action which is nec-
tomarily posted. Reasonable steps shall be taken by
essary to effectuate the purposes of the Act:
Better Building Supply Co., and Evergreen Roofing,
(a) Upon request bargain collectively with Local 54 of
I n c ., t o in su r e
t h a t said n o tic e s a r e
n o t altered, defaced,
the United Slate, Tile & Composition Roofers, Damp
o r covered by any other material.
and Waterproof Workers Association, AFL-CIO, as the
(g) N o t ify th e
Regional Director for Region 19, in
exclusive bargaining representative of all employees em-
writing, w it h i n
2 0 days from the date of this Order, what
steps have been taken to comply herewith.
10 In the event no exceptions are filed as provided by Sec. 102.46 of
the Rules and Regulations of the National Labor Relations Board, the
In the event that this Order is enforced by a Judgment of a United
findings, conclusions, and recommended Order herein shall, as provided
States Court of Appeals, the words in the notice reading "Posted by
in Sec. 102.48 of the Rules and Regulations, be adopted by the Board and
Order of the National Labor Relations Board" shall read "Posted Pursu-
become its findings, conclusions, and Order, and all objections thereto
ant to a Judgment of the United States Court of Appeals Enforcing an
shall be deemed waived for all purposes.
Order of the National Labor Relations Board."