Authentic Furniture Products, Inc.

264 NLRB No. 113 VFH 9357 Chula Vista, CA UNITED STATES OF AMERICA BEFORE THE NATIONAL LABOR RELATIONS BOARD AUTHENTIC FURNITURE PRODUCTS, INC. and Cases 21--CA--203 59 and 21--CA--21103 CARPENTERS LOCAL UNION 2020, UNITED BROTHERHOOD OF CARPENTERS AND JOINERS OF AMERICA, AFL--CIO DECISION AND ORDER Upon charges filed on June 15, 1981, and March 16, 1982, by Carpenters Local Union 2020, United Brotherhood of Carpenters and Joiners of America, AFL--CIO, herein called the Union, and duly served on Authentic Furniture Products, Inc., herein called Respondent, the General Counsel of the National Labor Relations Board, by the Regional Director for Region 21, issued a consolidated complaint and notice of hearing on May 12, 1982, against Respondent, alleging that Respondent had engaged in and was engaging in unfair labor practices affecting commerce within the meaning of Section 8 (a) (5) and (1) and Section 2(6) and (7) of the National Labor Relations Act, as amended. Copies of the charges and complaint and notice of hearing before an administrative law judge were duly served on the parties to this proceeding. Respondent failed to file an answer to the complaint. 264 NLRB No. 113 D--9357 On July 29, 1982, counsel for the General Counsel filed directly with the Board a Motion for Summary Judgment with exhibits attached. Subsequently, on August 4, 1982, the Board issued an order transferring the proceeding to the Board and Notice To Show Cause why the General Counsel's Motion for Summary Judgment should not be granted. Respondent failed to file a response to the Notice To Show Cause and therefore the allegations in the Motion for Summary Judgment stand uncontroverted. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its authority in this proceeding to a threemember panel. Upon the entire record in this proceeding, the Board makes the following: Ruling on the Motion for Summary Judgment Section 102.20 of the Board's Rules and Regulations, Series 8, as amended, provides: The respondent shall, within 10 days from the service of the complaint, file an answer thereto. The respondent shall specifically admit, deny, or explain each of the facts alleged in the complaint, unless the respondent is without knowledge, in which case the respondent shall SO state, such statement operating as a denial. All allegations in the complaint, if no answer is filed, or any allegation in the complaint not specifically denied or explained in an answer filed, unless the respondent shall state in the answer that he is without knowledge, shall be deemed to be admitted to be true and shall be SO found by the Board, unless good cause to the contrary is shown. The complaint and notice of hearing served on Respondent herein specifically states that, unless an answer to the 9357 complaint is filed within 10 days of service thereto, 'all of the allegations in said consolidated complaint shall be deemed to be admitted to be true and may be SO found by the Board. Further, according to the uncontroverted allegations of the Motion for Summary Judgment, counsel for the General Counsel advised Respondent, in a telephone conversation on June 21, 1982, that it had failed to file an answer and that Summary Judgment would be sought unless an answer to the complaint was filed forthwith. Thereafter, the General Counsel sent Respondent's counsel a certified letter, dated June 22, 1982, confirming the details of this telephone conversation. By letter dated June 23, 1982, Respondent's counsel informed the General Counsel that a response to the complaint would be prepared. On July 14, 1982, Respondent's counsel was again informed that the General Counsel would seek Summary Judgment. As noted above, Respondent has failed to file an answer to the consolidated complaint and has failed to file a response to the Notice To Show Cause. Accordingly, under the rules set forth above, no good cause having been shown for failure to file a timely answer, the allegations of the complaint are deemed admitted and are found to be true. Accordingly, we grant the General Counsel's Motion for Summary Judgment. On the basis of the entire record, the Board makes the following: D--9357 Findings of Fact I. The Business of Respondent Respondent is, and has been at all times material herein, a California corporation, with a facility located at 1199 Industrial Boulevard, Chula Vista, California, where it is engaged in the manufacture of furniture products. During the 12 months prior to issuance of the complaint, a representative period, Respondent, in the normal course and conduct of its business operation, produced and shipped goods valued in excess of $50,000 directly to customers located outside the State of California. We find, on the basis of the foregoing, that Respondent is, and has been at all times material herein, an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act, and that it will effectuate the policies of the Act to assert jurisdiction herein. II. The Labor Organization Involved Carpenters Local Union 2020, United Brotherhood of Carpenters and Joiners of America, AFL--CIO, is a labor organization within the meaning of Section 2 (5) of the Act. III. The Unfair Labor Practices The following employees of Respondent constitutes a unit appropriate for collective-bargaining purposes within the meaning of Section 9(b) of the Act: All production and maintenance employees, shipping and receiving employees, warehousemen and lead persons employed by Respondent at its facility located at 1199 Industrial Boulevard, Chula Vista, California; excluding all other employees, professional employees, guards and supervisors as defined in the Act. D--9357 The Union was certified as the collective-bargaining representative of the employees in said unit on September 24, 1979, and the Union continues to be such exclusive representative within the meaning of Section 9 (a) of the Act. Since on or about October 1, 1980, and at all times thereafter, the Union and Respondent have been parties to successive collective-bargaining agreements, all of which contained the following provision: Section XVII HEALTH AND WELFARE INSURANCE (A) During the term of this agreement, the Company agrees to continue in effect its existing Group, Health and Welfare Insurance Program or a plan which provides benefits substantially equivalent thereto for its regular full-time employees and their eligible dependents and to pay the full cost thereof. Since at least on or about January 15, 1981, Respondent, unilaterally and without bargaining with the Union, has failed to comply with the above-noted contractual provision. Further, since at least on or about March 9, 1982, Respondent has repudiated its collective-bargaining agreement with the Union as described above. Accordingly, we find that Respondent has, since January 15, 1981, and since March 9, 1982, and at all material times thereafter, refused to bargain collectively with the Union as the exclusive collective-bargaining representative of the employees in the appropriate unit, and that, by such refusals, Respondent has engaged in and is engaging in labor practices within the meaning of Section 8 (a) (5). and (1) of the Act. D--9357 IV. The Effect of the Unfair Labor Practices Upon Commerce The activities of Respondent set forth in section III, above, occurring in connection with the operations described in section I, above, have a close, intimate, and substantial relationship to trade, traffic, and commerce among the several States and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. The Remedy Having found that Respondent has engaged in and is engaging in certain unfair labor practices in violation of Section 8 (a) (5) and (1) of the Act, we shall order that it cease and desist therefrom and that it take certain affirmative action to effectuate the policies of the Act. Accordingly, we shall order Respondent to apply the terms of the parties' collective-bargaining agreement and to make whole its employees in the above-described bargaining unit for any losses they may have suffered by reason of Respondent's refusal to abide by the terms of the contract in the manner set forth in Ogle Protection Service, Inc., and James L. Ogle, an Individual, 183 NLRB 682 (1970). Specifically, we shall order Respondent to make whole its employees by transmitting any contributions owed the group health and welfare program maintained by Respondent pursuant to section XVII of the contract and by reimbursing them for any dental, medical, or other expenses ensuing from Respondent's failure to comply with the above contractual provision, which shall include reimbursing employees for any contributions they themselves may have made for the maintenance D--9357 of the program referred to above, for any medical or dental bills they may have paid directly to health care providers that the contractual program would have covered, as well as any premiums they may have paid directly to third-party insurance companies to continue insurance coverage. Kraft Plumbing and Heating, Inc. 252 NLRB 891 (1980). Interest shall be paid in the manner prescribed in Florida Steel Corporation, 231 NLRB 651 (1977). See, generally, Isis Plumbing & Heating Co., 138 NLRB 716 (1962). The Board, upon the basis of the foregoing facts and the entire record, makes the following: Conclusions of Law 1. Authentic Furniture Products, Inc., is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. Carpenters Local Union 2020, United Brotherhood of Carpenters and Joiners of America, AFL--CIO, is a labor organization within the meaning of Section 2(5) of the Act. 3. All production and maintenance employees, shipping and receiving employees, warehousemen and lead persons employed by Respondent at its facility located at 1199 Industrial Boulevard, Chula Vista, California; excluding all other employees, professional employees, guards and supervisors as defined in the Act, constitute a unit approrpiate for the purposes of collective bargaining within the meaning of Section 9 (b) of the Act. 4. Since September 24, 1979, the above-named labor organization has been and now is the certified and exclusive representative of all employees in the aforesaid appropriate unit 9357 for the purposes of collective bargaining within the meaning of Section 9 (a) of the Act. 5. By failing, since on or about January 15, 1981, and at all material times thereafter, to comply with the terms of section XVII, entitled 'Health and Welfare Insurance, of the collective-bargaining agreement with the above-named organization and by on or about March 9, 1982, repudiating the contract, as described above, Respondent has refused, and is refusing to bargain collectively with the above-named organization as the exclusive bargaining representative of all the employees of Respondent in the appropriate unit and, thereby, has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (a) (5) of the Act. 6. By the aforesaid refusals to bargain, Respondent has interfered with, restrained, and coerced, and is interfering with, restraining, and coercing, employees in the exercise of the rights guaranteed them in Section 7 of the Act, and thereby has engaged in, and is engaging in unfair labor practices within the meaning of Section 8 (a) (1) of the Act. 7. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Section 2 (6) and (7) of the Act. ORDER Pursuant to Section 10 (c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby orders that the Respondent, Authentic Furniture Products, Inc., Chula D--9357 Vista, California, its officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Refusing to bargain collectively concerning rates of pay, wages, hours, and other terms and conditions of employment with Carpenters Union Local 2020, United Brotherhood of Carpenters, and Joiners of America, AFL--CIO, as the exclusive bargaining representative of its employees by failing to comply with the terms of the provision pertaining to group health and welfare insurance as set forth in section XVII of the collectivebargaining agreement between it and the Union, and by repudiating and refusing to abide the terms of the collective-bargaining agreement as described above. The appropriate unit is: All production and maintenance employees, shipping and receiving employees, warehousemen and lead persons employed by Respondent at its facility located at 1199 Industrial Boulevard, Chula Vista, California; excluding all other employees, professional employees, guards and supervisors as defined in the Act. (b) In any like or related manner interfering with, restraining, or coercing employees in the exercise of the rights guaranteed them in Section 7 of the Act. 2. Take the following affirmative action which the Board finds will effectuate the polcies of the Act: (a) Apply the terms and conditions of the above-described collective-bargaining agreement. (b) Make the employees in the appropriate unit whole for any losses they may have suffered by reason of Respondent's refusal to abide by the terms of the contract, including transmitting any contributions owed the group health and welfare insurance program D--9357 previously maintained by Respondent pursuant to section XVII of the contract and reimbursing said employees for any dental, medical, or other expenses they may have incurred by reason of Respondent's failure to comply with the terms of section XVII, which shall include reimbursing employees for any contributions they may have paid to health care providers that the program would have covered, as well as any premiums they may have paid to third-party insurance companies to continue insurance coverage in the manner set forth in the section of this Decision entitled 1 'The Remedy (c) Post at its Chula Vista, California, facility copies of the attached notice marked 'Appendix. 1 Copies of said notice, on forms provided by the Regional Director for Region 21, after being duly signed by Respondent's representative, shall be posted by Respondent immediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by Respondent to insure that said notices are not altered, defaced, or covered by any other material. 1 In the event that this Order is enforced by a Judgment of a United States Court of Appeals, the words in the notice reading ''POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD shall read ''POSTED PURSUANT TO A JUDGMENT OF THE UNITED STATES COURT OF APPEALS ENFORCING AN ORDER OF THE NATIONAL LABOR RELATIONS BOARD 9357 (d) Notify the Regional Director for Region 21, in writing, within 20 days from the date of this Order, what steps have been taken to comply herewith. Dated, Washington, D.C. September 30, 1982 John R. Van de Water, Chairman John H. Fanning, Member Robert P. Hunter, Member NATIONAL LABOR RELATIONS BOARD (SEAL) D--9357 APPENDIX NOTICE TO EMPLOYEES Posted by Order of the National Labor Relations Board An Agency of the United States Government WE WILL NOT refuse to bargain collectively concerning rates of pay, wages, hours, and other terms and conditions of employment with Carpenters Union Local 2020, United Brotherhood of Carpenters and Joiners of America, AFL--CIO, as the exclusive representative of the employees in the bargaining unit described below by failing and refusing to comply with the terms of the provision pertaining to group health and welfare insurance as set forth in section XVII of the collective-bargaining agreement between us and the Union and by repudiating and refusing to abide by the terms of the collective-bargaining agreement as described above. The appropriate unit is: All production and maintenance employees, shipping and receiving employees, warehousemen and lead persons employed by Respondent at its facility located at 1199 Industrial Boulevard, Chula Vista, California; excluding all other employees, professional employees, guards and supervisors as defined in the Act. WE WILL NOT in any like or related manner interfere with, restrain, or coerce our employees in the exercise of the rights guaranteed them by Section 7 of the Act. WE WILL apply the terms and conditions of the above-described collective-bargaining agreement to which we are bound. WE WILL make our employees whole, with interest, for any losses they may have suffered by reason of our failure to apply the terms and conditions of the collective-bargaining agreement referred to above, including transmitting any contributions owed the group health and welfare program previously maintained by us pursuant to section XVII of the contract referred to above, reimbursing these employees for any expenses ensuing from our failure to comply with the terms of section XVII, including reimbursement for any contributions they may have made for the maintenance of such a program, any payments made directly to health care providers that the program would have covered, as 9357 well as any premiums they may have made to third-party insurance companies to continue insurance coverage. AUTHENTIC FURNITURE PRODUCTS, INC. (Employer) Dated By (Representative) (Title) This is an official notice and must not be defaced by anyone. This notice must remain posted for 60 consecutive days from the date of posting and must not be altered, defaced, or covered by any other material. Any questions concerning this notice or compliance with its provisions may be directed to the Board's Office, City National Bank Building, 24th Floor, 606 South Olive Street, Los Angeles, California 90014, Telephone 213--688--5229.