349 NLRB 6
Cadillac Asphalt Paving Co.
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
349 NLRB No. 5
6
Cadillac Asphalt Paving Company and its alter ego or
successor Cadillac Asphalt, L.L.C. and Local
247, International Brotherhood of Teamsters1
and Michigan Laborers’ District Council, La-
borers’ International Union of North America,
Party in Interest and Local 324, International
Union of Operating Engineers, AFL–CIO, Party
in Interest. Case 7–CA–46464
January 17, 2007
DECISION AND ORDER
BY MEMBERS SCHAUMBER, KIRSANOW, AND WALSH
On December 16, 2004, Administrative Law Judge
Lawrence W. Cullen issued the attached decision. The
Respondents filed exceptions and supporting briefs. The
General Counsel filed an answering brief, and the Re-
spondents filed reply briefs.2 The General Counsel filed
cross-exceptions and a supporting brief. The Respon-
dents filed answering briefs, and the General Counsel
filed a reply brief.
The National Labor Relations Board has delegated its
authority in this proceeding to a three-member panel.
The Board has considered the decision and the record
in light of the exceptions and briefs and has decided to
affirm the judge’s rulings, findings,3 and conclusions as
1 We have amended the caption to reflect the disaffiliation of the In-
ternational Brotherhood of Teamsters from the AFL–CIO effective July
25, 2005, and the disaffiliation of the Laborers’ International Union of
North America from the AFL–CIO effective June 1, 2006.
We have also modified the caption by removing reference to Case
7–CA–46565. On August 14, 2006, the Board granted the General
Counsel’s motion to sever that case from this consolidated proceeding
and to remand it to the Regional Director for the purpose of dismissing
the complaint in that case pursuant to a non-Board settlement. The
caption has been modified accordingly.
2 The Respondents filed a motion to strike portions of the General
Counsel’s answering brief on the ground that the General Counsel
improperly made substantive modifications to the brief he originally
submitted after the Office of the Executive Secretary gave the General
Counsel an opportunity to reconform its original submission as two
separate briefs, as required by the Board’s rules.
Although we did not invite any of the supplementation of the Gen-
eral Counsel’s original brief, the February 11, 2005 letter from the
Executive Secretary to the General Counsel did not expressly prohibit
modifications to the resubmission. Moreover, the Respondents have
failed to show any prejudice, and were, in fact, given the full time
permitted by the Board’s rules to respond to the General Counsel’s
resubmitted, separate briefs. In these circumstances, we deny the Re-
spondents’ motion to strike.
3 The Respondents have excepted to some of the judge's credibility
findings. The Board's established policy is not to overrule an adminis-
trative law judge's credibility resolutions unless the clear preponderance
of all the relevant evidence convinces us that they are incorrect. Stan-
dard Dry Wall Products, 91 NLRB 544 (1950), enfd. 188 F.2d 362 (3d
Cir. 1951). We have carefully examined the record and find no basis
for reversing the findings.
The judge mistakenly discredited the testimony of Fred Aiken, who
did not testify. This error does not affect our decision.
modified and to adopt the recommended Order and no-
tice as modified and set forth in full below.4
I. INTRODUCTION
The issues presented in this case arise from the forma-
tion of a joint venture, Respondent Cadillac Asphalt,
L.L.C. (LLC), by Levy Company (Levy) and Michigan
Paving & Materials Company (MPMC).5 As explained
below, the joint venture included the Novi, Michigan
facility and the Teamsters-represented bargaining unit of
drivers employed by Respondent Cadillac Asphalt Pav-
ing Company (Paving), a wholly owned Levy subsidiary.
The judge summarily found that the Respondents were a
single employer and that Respondent LLC was an alter
ego of Respondent Paving. In the alternative, he found
that Respondent LLC was a “perfectly clear” Burns6 suc-
cessor to Respondent Paving, and as such was bound to
recognize and bargain with the Teamsters prior to mak-
ing any changes in the unit employees’ terms and condi-
tions of employment. The judge further found that both
Respondents violated Section 8(a)(5) and (1) of the Act
when they (1) failed to continue in effect the terms and
conditions of the expired 1998–2003 Michigan Road
Builders Association (MRBA)/Teamsters labor agree-
ment by discontinuing health and welfare and pension
fund contributions; (2) dealt directly with the drivers; and
(3) failed and refused to recognize and bargain with the
Teamsters.
For the reasons set forth below, we disagree with the
judge’s alter ego and single employer findings. Conse-
quently, there is no basis for finding that Respondent
Paving violated Section 8(a)(5).7
We affirm, however,
4 We have amended the remedy, modified the recommended Order,
and substituted a new notice to reflect the violations found and the
usual remedial provisions of the Board. References to the Sec. 8(a)(3)
violation found by the judge in severed Case 7–CA–46565 have been
deleted.
5 MPMC is a wholly owned subsidiary of a company identified in
the record as Old Castle.
6 NLRB v. Burns International Security Services, 406 U.S. 272
(1972).
7 We adopt the judge’s finding that the General Counsel failed to es-
tablish that Respondent Paving was bound by the 2003–2008 MRBA
labor agreement. The sole basis asserted by the General Counsel to
show that Paving was bound is a 1986 power of attorney purportedly
binding Paving indefinitely to the results of contracts negotiated by the
MRBA. However, that document was never authenticated. Instead, it
was offered by the General Counsel as an exhibit with the representa-
tion that it had been produced by the MRBA, a nonparty, in response to
the General Counsel’s subpoena. It is undisputed that the General
Counsel never called a witness, or produced any other evidence to
authenticate the power of attorney, despite having subpoenaed the
custodian of records for the MRBA to testify. The burden was on the
General Counsel to authenticate the document and he failed to do so.
Our dissenting colleague argues that the Respondents waived any
authenticity objection by not timely asserting it. We disagree. The
General Counsel initially sought to introduce this document into the
CADILLAC ASPHALT PAVING CO.
7
the judge’s finding that Respondent LLC was a “per-
fectly clear” successor and that it violated Section 8(a)(5)
as described above.
The judge also found that the Respondents violated
Section 8(a)(2) and (1) of the Act when they (1) threat-
ened drivers represented by the Teamsters with layoffs
unless they transferred their union membership to either
the Laborers or Operating Engineers; (2) rendered assis-
tance and support to the Laborers and Operating Engi-
neers; and (3) told driver Patrick Raymo that he must
transfer his union membership from the Teamsters to one
of the other unions in order to keep his job. We affirm
the judge’s findings of unlawful threats and assistance by
Respondent LLC. Inasmuch as we find no alter ego or
single employer relationship between Respondent Paving
and Respondent LLC, and no direct involvement by
agents of Respondent Paving in these unfair labor prac-
tices, we reverse and dismiss the allegations of unlawful
conduct by Respondent Paving. We address these mat-
ters in turn below.
II. THE RESPONDENTS’ RELATIONSHIP
A. Factual Background
On June 30, 2003,8 Levy and MPMC entered into a
joint venture agreement to create, effective July 1, Re-
spondent LLC. Each company contributed various assets
to the joint venture. Specifically, MPMC contributed
three asphalt plants and their employees, and Levy con-
tributed two facilities and their employees, including
Respondent Paving, located in Novi, Michigan.
Paving was wholly owned by Levy. MPMC and Levy
each own 50 percent of LLC. All of Paving’s first- and
second-line supervisors were retained by LLC, but senior
management from MPMC replaced Levy senior man-
agement atop LLC’s managerial hierarchy. Thus, Levy
has no active management role in LLC’s operations.
The hourly employees at Paving were represented by
three unions—Teamsters Local 247 (Teamsters), Labor-
record with the observation that “I don’t think any genuine question as
to [its] authenticity can be raised.” The Respondents’ counsel declined
the judge’s invitation to stipulate on this point—stating that “[w]ithout
the custodian of records, we have no idea where, how, or whether this
is the extent of all the records and where they searched”—and began to
object. After the judge immediately withheld ruling on the objection,
the General Counsel stated that “we’re not representing that this is
accurate or comprehensive compliance with the subpoena, but merely
that these are documents furnished to us from the [MRBA] pursuant to
our subpoena.” (Emphasis supplied.) The judge then received the
documents into evidence for the “limited purpose” of showing that the
MRBA produced the documents in response to the subpoena. In these
circumstances, the Respondents did not waive their right to contest the
authenticity of this document as binding Respondent Paving to MRBA
negotiations in 2003, by failing to raise the matter in a renewed objec-
tion to its admission on the limited basis stated above.
8 All dates are 2003, unless otherwise noted.
ers Local 1191 (Laborers), and Operating Engineers Lo-
cal 324 (Operating Engineers). The Teamsters repre-
sented Paving’s drivers for more than 30 years. At all
material times, the drivers have been covered by collec-
tive-bargaining agreements between Teamsters Joint
Council 43 and the MRBA.
On July 7, Paving held a meeting for all of its employ-
ees. At this meeting, LLC’s President Dennis Rickard
formally announced the joint venture and told the em-
ployees that it became effective July 1. MPMC Safety
Director Marlene Van Patton then gave employment ap-
plications and W-4 forms to all the employees to com-
plete. The employees were told that the forms were to
update LLC’s records and that they could leave blank the
work qualifications and experience level sections of the
employment applications. The employees, including the
drivers represented by the Teamsters, completed the
forms and returned to work the following day without
any change in operations or duties.
LLC recognized the Laborers and Operating Engineers
as representatives of the classifications those unions rep-
resented at Paving and signed single-facility contracts
with these unions. However, on July 15, drivers Steve
Pierce, Patrick Raymo, Tim Taylor, and Dan O’Neill met
with management officials from LLC and were told that
LLC would not employ Teamsters. The officials further
stated that, if those employees wanted to continue to
work at LLC, they would have to join either the Laborers
or Operating Engineers, depending on their duties (which
are explained in detail in the judge’s decision). The fol-
lowing day, Paving stopped deducting Teamsters dues
and making contributions to the Teamsters funds, and
LLC started making fringe benefit contributions on be-
half of the drivers to the Laborers and Operating Engi-
neers.
After learning that LLC would no longer permit the
drivers to belong to the Teamsters, Teamsters President
Thomas Aloisio sent LLC General Manager Alan San-
dell a letter dated July 18. The letter stated in pertinent
part:
Our members were informed on Tuesday that Old Cas-
tle had bought out Cadillac Asphalt and if they wanted
to work for Old Castle, lowboy drivers would have to
join the Operating Engineers and prime truck drivers
would have to join Laborers Local 1191. Please con-
tact me at your earliest convenience to schedule a meet-
ing to straighten out this terrible mistake and injustice
to our members.
On July 22, Aloisio mailed a letter to LLC demanding that
LLC recognize the Teamsters as the drivers’ exclusive rep-
resentative for collective-bargaining purposes.
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
8
In late July, after several attempts, Aloisio finally
reached LLC President Rickard by telephone. During
their conversation, Aloisio complained about discrimina-
tion against the Teamsters and requested that LLC con-
tinue to pay the drivers’ Teamsters benefits. Aloisio also
offered to send Rickard a copy of the new 2003–2008
MRBA labor agreement.
Aloisio followed up this conversation with a letter
dated August 8, which reiterated Aloisio’s request that
LLC honor the MRBA labor contract with the Teamsters.
By letter dated August 21, LLC denied the existence of a
collective-bargaining agreement between the Teamsters
and LLC.
B. Analysis
1. Respondents LLC and Paving are not a single
employer or alter egos
A single-employer analysis is appropriate only where
two ongoing businesses are coordinated by a common
master.9
In this case, LLC commenced operations on
July 1, and Paving ceased operations no later than July
15. Thus, this is not a case where two ongoing busi-
nesses are coordinated by a common master. We there-
fore find that Respondent LLC and Respondent Paving
did not constitute a single employer.
The Board generally will find alter ego status where
two entities have substantially identical management,
business purposes, operations, equipment, customers,
supervision, and ownership.10
Not all of these indicia
need be present, and no one of them is a prerequisite to
an alter ego finding. The Board also considers whether
the second company was created in order to allow the old
employer to evade responsibility under the Act.11 How-
ever, unlawful motivation is not a necessary element of
an alter ego finding.12 If an employer is found to be an
alter ego of another employer that has a contract with a
union, the alter ego is also bound by that union contract.
Although common ownership is not a prerequisite for
an alter ego finding, the Board has found an alter ego
relationship in the absence of substantially identical
ownership only where both companies were either
9 See APF Carting, Inc., 336 NLRB 73 fn. 4 (2001), enfd. mem. 60
Fed.Appx. 832 (D.C. Cir. 2003) (citing NYP Acquisition Corp., 332
NLRB 1041 fn. 1 (2000), affd. sub nom. Newspaper Guild of New York
Local 3 v. NLRB, 261 F.3d 291 (2d Cir. 2001)).
10 Advance Electric, 268 NLRB 1001, 1002 (1984); Crawford Door
Sales Co., 226 NLRB 1144 (1976).
11 Cofab, Inc., 322 NLRB 162, 163 (1996), enfd. sub nom. mem.
NLRB v. DA Clothing Co., 159 F.3d 1352 (3d Cir. 1998); Fugazy Con-
tinental Corp., 265 NLRB 1301, 1302 (1982), enfd. 725 F.2d 1416
(D.C. Cir. 1984).
12 Johnstown Corp., 313 NLRB 170 (1993), enf. denied in part on
other grounds and remanded 41 F.3d 141 (3d Cir. 1994), supplemental
decision 322 NLRB 818 (1997).
wholly owned by members of the same family or nearly
totally owned by the same individual, or where the older
company maintained substantial control over the new
company.13 Neither of those situations is present here.
Paving was wholly owned by Levy, and Levy had com-
plete operational control over Paving. Under the joint
venture agreement, however, LLC is owned 50 percent
by Levy and 50 percent by MPMC; neither Levy nor
Paving has any operational control over LLC. Rather,
MPMC has complete operational control over LLC.
LLC is also not managed by the same company or in-
dividuals as Paving. Paving was managed and controlled
by Levy and specifically by Levy employee Andy
Schmidt. LLC is managed and controlled by MPMC,
and Schmidt was not hired to manage LLC. Alan San-
dell, a former MPMC employee, was hired as the general
manager of LLC and had operational responsibility for
all five operating divisions. In addition, only 6 of 15
management employees at Paving were offered employ-
ment with LLC.
The record does show that supervision and operations
of the Teamsters unit under Paving and LLC are substan-
tially identical. The record also shows that the business
purposes, equipment, premises, and customers of Paving
and LLC are substantially identical. However, this evi-
dence does not outweigh the aforementioned evidence
showing separate ownership and control and the lack of
identical management, as well as the lack of evidence to
suggest that LLC was formed for other than legitimate
business reasons. “Simply put, too many of the critical
factors traditionally relied upon by the Board to support
alter ego findings are absent here.”14
We therefore re-
verse the judge and find that Respondent LLC and Re-
spondent Paving are not alter egos.
2. LLC is a “perfectly clear” successor to Paving
The test for determining successorship under Burns
and its progeny is well established:
An employer, generally, succeeds to the collective-
bargaining obligation of a predecessor if a majority of
its employees, consisting of a “substantial and repre-
sentative complement,” in an appropriate bargaining
unit are former employees of the predecessor and if the
similarities between the two operations manifest a
“‘substantial continuity’ between the enterprises.”
13 See Superior Export Packing Co., 284 NLRB 1169, 1170 (1987),
enfd. sub nom Meadowlands Hy-Pro Industries, Inc. v. NLRB, 845 F.2d
1013 (3d Cir. 1988) (Table).
14 DuPont Dow Elastomers LLC, 332 NLRB 1071, 1084 (2000),
enfd. 296 F.3d 495 (6th Cir. 2002).
CADILLAC ASPHALT PAVING CO.
9
Hydrolines, Inc., 305 NLRB 416, 421 (1991) (quoting Fall
River Dyeing Corp. v. NLRB, 482 U.S. 27, 43, 52 (1987));
see also Ready Mix USA, Inc., 340 NLRB 946, 946–947
(2003).
The Respondents do not dispute that a majority of
LLC’s employees were previously employed by Paving,
that all five of the Paving drivers were represented by the
Teamsters, and that these employees are a representative
complement under LLC. Rather, the Respondents argue
that operational changes render the prior Teamsters bar-
gaining unit inappropriate. We disagree.
The Board’s longstanding policy is that “a mere
change in ownership should not uproot bargaining units
that have enjoyed a history of collective bargaining
unless the units no longer conform reasonably well to
other standards of appropriateness.”15 The Board places
a heavy evidentiary burden on a party attempting to show
that historical units are no longer appropriate.16 Indeed,
“compelling circumstances are required to overcome the
significance of bargaining history.”17
Applying these principles, we find, in agreement with
the judge, that the Teamsters bargaining unit remains an
appropriate unit at LLC’s Novi, Michigan facility. After
assuming control of Paving on July 1, LLC did not erase
or even diminish the amount of work performed by the
drivers. Rather, the drivers continued to drive the same
trucks to the jobsites, report to the same supervisors, and
assist the same composite work crews of Laborers and
Operating Engineers with cleaning, raking, shoveling,
and other assorted utility functions. Their duties and
immediate supervision remained the same through the
end of the 2003 paving season.
The Respondents argue that certain operational
changes implemented in 2004 altered the drivers’ duties
sufficiently to establish that a separate unit for drivers
was no longer appropriate.18 However, it is well estab-
lished that the continued appropriateness of a bargaining
unit for successorship purposes is measured at the time
15 Indianapolis Mack Sales & Service, 288 NLRB 1123 fn. 5 (1988).
16 Banknote Corp. of America, 315 NLRB 1041, 1043 (1994), enfd.
84 F.3d 637 (2d Cir. 1996), cert. denied 519 U.S. 1109 (1997).
17 Mayfield Holiday Inn, 335 NLRB 38, 39 (2001) (internal quota-
tions omitted), enfd. sub nom. 3750 Orange Place Ltd. Partnership v.
NLRB, 333 F.3d 646 (6th Cir. 2003).
18 Specifically, the Respondents assert that they adopted the “Michi-
gan Paving” business model, under which equipment operators, not
lowboy truckdrivers, are responsible for transporting their own equip-
ment to and from a jobsite, and distributor drivers do not solely or
primarily drive a truck but instead spend a good part of their workday
performing other tasks, such as raking and shoveling asphalt, alongside
the laborers.
the bargaining obligation attaches.19 The changes alleg-
edly made by the Respondents in 2004 are thus irrelevant
to our determination of the successorship issue.
We further find, in agreement with the judge, that there
was “substantial continuity” of operations between Pav-
ing and LLC at the time LLC assumed control. To de-
termine whether there is “substantial continuity” between
two enterprises, the Board and courts look to the follow-
ing factors: (1) whether the business of both employers is
essentially the same; (2) whether the employees of the
new company are doing the same jobs in the same work-
ing conditions under the same supervisors; and (3)
whether the new entity has the same production process,
produces the same products, and basically has the same
body of customers.20 These factors are assessed primar-
ily from the perspective of the employees, that is,
“whether ‘those employees who have been retained will
. . . view their job situations as essentially unaltered.’”21
This inquiry is primarily factual, and is based upon the
totality of the circumstances.22
Upon assuming control of Paving on July 1, LLC con-
tinued Paving’s operations and paving business in un-
changed form, without an interruption or hiatus. As
noted above, the drivers continued to drive the same
trucks and perform the same duties, for the same custom-
ers, under the same general working conditions, with the
same immediate supervision. Thus, there can be no
doubt that, from the drivers’ perspective, their job situa-
tions were essentially unaltered. Therefore, we agree
with the judge that Respondent LLC is a successor to
Respondent Paving.
Having found that LLC is a successor to Paving, we
must determine when LLC’s bargaining obligation with
the Teamsters matured. LLC’s bargaining obligation
matured when two conditions were met: (1) LLC had
hired a substantial and representative complement of
employees, a majority of whom had been Teamsters unit
employees; and (2) the Teamsters had made an effective
demand for recognition.23 These two conditions need not
occur in any particular order.24
As noted above, the Respondents do not dispute that
LLC hired a substantial and representative complement
of Paving’s employees, including all five of the Paving
drivers represented by the Teamsters. The issue in dis-
19 See Banknote Corp. of America, supra, 315 NLRB at 1043 (evi-
dence of changes in duties that actually occurred after bargaining obli-
gation attached not sufficient to overturn well-established units).
20 Fall River Dyeing Corp., 482 U.S. at 43.
21 Id. (quoting Golden State Bottling Co. v. NLRB, 414 U.S. 168, 184
(1973)).
22 Id.
23 See id. at 52.
24 MSK Corp., 341 NLRB 43, 44 (2004).
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
10
pute is when the Teamsters first made their bargaining
demand.
The Board has long recognized that “a valid request to
bargain need not be made in any particular form . . . so
long as the request clearly indicates a desire to negotiate
and bargain on behalf of the employees in the appropriate
unit concerning wages, hours, and other terms and condi-
tions of employment.”25
Applying this standard, we
agree with the judge that the Union effectively demanded
recognition during the telephone conversation between
Teamsters President Aloisio and LLC President Rickard
in late July. As noted above, during that conversation
Aloisio complained that LLC was discriminating against
the Teamsters, requested that LLC continue to pay the
Teamsters’ benefits, and offered to send Rickard a copy
of the new 2003–2008 MRBA labor agreement. In the
circumstances of this case, this was sufficient to establish
a demand for recognition and bargaining. Further,
Aloisio reiterated this demand in his August 8 letter to
Rickard, which constituted an effective demand for rec-
ognition as well.26
We also agree with the judge that Respondent LLC is a
“perfectly clear” successor to Respondent Paving. As
discussed above, an employer that substantially contin-
ues its predecessor’s business and hires employees of the
predecessor as a majority of its work force is a successor
with an obligation to bargain with the union that repre-
sented those employees when they were employed by the
predecessor.27 The Supreme Court in Burns held that a
successor employer normally is free to set initial terms
and conditions of employment unilaterally. The Court
also stated, however, that there would be times when it is
“perfectly clear” that the successor intends to hire all of
the predecessor’s employees. In those circumstances, the
successor may not impose initial terms without first bar-
gaining with the union representing the employees.28 In
Spruce Up,29 the Board held that an employer should be
25 Marysville Travelodge, 233 NLRB 527, 532 (1977) (internal quo-
tations omitted), enfd. sub nom. NLRB v. Cofer, 637 F.2d 1309 (9th
Cir. 1981).
26 In finding that the Union made a valid recognition demand, we do
not rely on Aloisio’s testimony that he “thought” he made an offer
during the July telephone conversation to sit down and negotiate an
alternative agreement with Rickard.
The judge found that the Teamsters also demanded recognition and
bargaining by letters dated July 18 and 22. The Respondents except to
this finding, contending that they never received these letters. We find
it unnecessary to pass on these contentions in light of our finding that
the bargaining obligation matured based on Aloisio’s late July tele-
phone call and August 8 letter.
27 Burns, supra, 406 U.S. at 280–281; Fall River Dyeing, supra, 482
U.S. at 43.
28 Burns, 406 U.S. at 294–295.
29 Spruce Up Corp., 209 NLRB 194 (1974), enfd. mem. 529 F.2d
516 (4th Cir. 1975).
found to be a “perfectly clear” successor, with an obliga-
tion to bargain over initial employment terms, only when
it has either actively or tacitly misled employees into
believing that they will all be retained without a change
in terms and conditions of employment, or when it has
invited the predecessor’s employees to accept employ-
ment without announcing its intention to set new condi-
tions.30
The record clearly establishes that Respondent LLC is
a “perfectly clear” successor to Respondent Paving. On
July 1, LLC assumed control of Paving’s operations. On
July 7, LLC President Rickard announced the joint ven-
ture in a meeting with Paving’s entire work force. After
Rickard spoke, MPMC Safety Director Marlene Van
Patton asked all the employees to complete job applica-
tions and W-4 forms to update LLC’s records. The em-
ployees, including the drivers, completed and submitted
their applications that day. After completing his paper-
work, driver Steve Pierce asked LLC General Manager
Sandell, who was also present at the meeting, about
LLC’s 401(k) plan. Sandell responded that LLC did not
have a 401(k) plan for hourly employees. Aside from the
401(k) remark, LLC did not announce any changes to the
employees’ terms and conditions of employment at this
meeting. The following day, July 8, the employees re-
turned to work without any changes in operations or du-
ties.
Although not mentioned by the judge in his decision,
LLC’s hiring process entailed no further measures. Unit
driver Pierce testified that LLC did not conduct job in-
terviews. There is no evidence that LLC sought addi-
tional applicants from any source other than Paving’s
work force.
As noted above, at no time before or during the July 7
meeting did LLC mention changes to the employees’
negotiated wages, benefits, or other terms and conditions
of employment. In fact, prior to this meeting, when em-
ployee and Teamsters steward Pierce asked LLC agent
Fred Aiken about the Respondents’ plans for the Team-
sters, Aiken assured Pierce that everything would remain
the same. As a result, the drivers reasonably assumed
that their terms and conditions of employment would
remain the same when LLC took over Paving’s opera-
tions. Nothing said at the July 7 meeting dispelled their
assumption.31
30 209 NLRB at 195.
31 The Paving unit employees were covered by a contract between a
multiemployer association (MRBA) and the Teamsters. That contract
did not provide for a 401(k) plan. Thus, to that extent, the LLC state-
ment as to the absence of a 401(k) plan for LLC employees was not a
change in unit terms and conditions. Concededly, at least one Team-
sters-represented employee of Paving nonetheless participated indi-
vidually in the 401(k) plan. However, in our view, this fact does not
CADILLAC ASPHALT PAVING CO.
11
Thus, by offering job applications and W-4 forms to
Paving’s employees on July 7, LLC invited the employ-
ees to accept employment without announcing its inten-
tion to set initial terms and conditions of employment. In
these circumstances, we find, in agreement with the
judge, that Respondent LLC is a “perfectly clear” succes-
sor to Respondent Paving and that Respondent LLC vio-
lated Section 8(a)(5) and (1) of the Act by refusing to
recognize and bargain with the Teamsters and by failing
to continue the terms and conditions maintained by Pav-
ing at the time of succession, i.e., the health and welfare
and pension fund contributions in accord with terms of
the expired 1998–2003 MRBA labor agreement.32
AMENDED CONCLUSIONS OF LAW
1. At all material times until about June 30, 2003, Re-
spondent Cadillac Asphalt Paving Company (Paving)
was an employer engaged in commerce within the mean-
ing of Section 2(2), (6), and (7) of the Act.
2. Since about June 30, 2003, Respondent Cadillac
Asphalt, L.L.C. (LLC) has continued to operate the busi-
ness of Paving in basically unchanged form, and has em-
ployed as a majority of its employees, individuals who
were previously employees of Paving. LLC is a “per-
fectly clear” successor to Paving, and has been an em-
ployer within the meaning of Section 2(2), (6), and (7) of
the Act.
3. At all material times herein, Charging Party Local
247, International Brotherhood of Teamsters, and parties
in interest Michigan Laborers’ District Council, Labor-
ers’ International Union of North America, and Local
324, International Union of Operating Engineers, AFL–
preclude application of the “perfectly clear” principle established by
Burns. Indeed, the Respondents do not contend otherwise. They refer
only to changes announced on July 15 that were relevant to imposition
of the terms and conditions in Laborers’ and Operating Engineers’
contracts. As explained above, we find the announcement of these
changes came after LLC had already invited the Paving employees to
accept employment.
32 See Elf Atochem North America, Inc., 339 NLRB 796 (2003);
Helnick Corp., 301 NLRB 128 fn. 1 (1991).
We do not adopt the judge’s finding that LLC violated Sec. 8(d),
which provides, in relevant part, that “where there is in effect a collec-
tive-bargaining contract . . . no party to such contract shall terminate or
modify such contract.” Because LLC, as a successor, has no prior
agreement with the Teamsters, it could not violate Sec. 8(d) by imple-
menting terms and conditions of employment that varied from the
predecessor’s collective-bargaining agreement. See U.S. Generating
Co., 341 NLRB 1127, 1135 (2004).
The complaint does not allege that LLC violated the Act by failing
to deduct and remit union dues to the Teamsters after the collective-
bargaining agreement expired on June 30, 2003. In these circum-
stances, we do not adopt the judge’s apparent finding that LLC violated
Sec. 8(a)(5) and (1) in this respect. The remedy, recommended Order
and notice have been modified accordingly.
CIO, have been labor organizations within the meaning
of Section 2(5) of the Act.
4. All full-time and part-time drivers employed by
Paving and later by LLC at or out of the Novi, Michigan
facility, but excluding all office clerical employees,
guards and supervisors as defined in the Act, and all em-
ployees already represented by other labor organizations,
constitute an appropriate unit for the purposes of collec-
tive bargaining within the meaning of Section 9(b) of the
Act.
5. At all times since 1973, the Teamsters has been the
exclusive collective-bargaining representative of the
above-described unit.
6. About July and August 2003, Respondent LLC, by
its agents, Rod Elliot and Fred Aiken, at the Novi, Michi-
gan facility, violated Section 8(a)(2) and (1) of the Act
by threatening employees with layoffs unless they trans-
ferred their union membership from the Teamsters to
either the Laborers or Operating Engineers.
7. Since about July 2003, Respondent LLC, by its
agents, Rod Elliot and Fred Aiken, at the Novi, Michigan
facility, violated Section 8(a)(2) and (1) of the Act by
rendering assistance and support to the Laborers and Op-
erating Engineers by:
(a) Urging unit employees to sign check-off authoriza-
tions for said labor organizations.
(b) Deducting money from unit employees’ wages and
remitting it to the Laborers and Operating Engineers,
notwithstanding the absence of employee authorizations
for such deductions and remittance and notwithstanding
that neither the Laborers nor the Operating Engineers is
the lawfully recognized exclusive collective-bargaining
representative of the unit.
8. About July 18, 2003, Respondent LLC, by its
agents, Rod Elliot and Fred Aiken, violated Section
8(a)(2) and (1) of the Act by telling unit employee Pat-
rick F. Raymo that he must transfer his union member-
ship from the Teamsters to keep his job.
9. Respondent LLC violated Section 8(a)(5) and (1) of
the Act by failing to continue in effect all of the terms
and conditions of employment of its predecessor, as set
forth in the expired 1998–2003 Michigan Road Builders
Association labor agreement, by discontinuing health and
welfare and pension contributions on behalf of unit em-
ployees.
10. Respondent LLC violated Section 8(a)(5) and (1)
of the Act by bypassing the Teamsters and dealing di-
rectly with their unit employees by offering to provide
alternative health insurance coverage.
11. Respondent LLC violated Section 8(a)(5) and (1)
of the Act since June 30, 2003, by failing and refusing to
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
12
recognize and bargain with the Teamsters as the exclu-
sive collective-bargaining representative of the unit.
12. The aforesaid unfair labor practices affect com-
merce within the meaning of Section 2(6) and (7) of the
Act.
13. The Respondents have not violated the Act in any
other manner except as specifically found herein.33
AMENDED REMEDY
Having found that Respondent LLC has engaged in
certain unfair labor practices, we shall order it to cease
and desist and to take certain affirmative action neces-
sary to effectuate the policies of the Act. Specifically,
we shall order LLC to recognize and, on request, bargain
with Teamsters as the exclusive collective-bargaining
representative of employees in the unit found here to be
appropriate. We shall also order LLC to cease the unau-
thorized deductions of moneys from the unit employees’
wages and remittance of the moneys to either the Labor-
ers or Operating Engineers, and to make unit employees
whole for any losses suffered as a result of these deduc-
tions, with interest as prescribed in New Horizons for the
Retarded, 283 NLRB 1173 (1987). Finally, having
found that LLC violated Section 8(a)(5) and (1) by uni-
laterally failing to remit contributions to the Teamsters
health and welfare and pension funds, in accord with the
provisions of the expired 1998–2003 Michigan Road
Builders Association labor agreement, we shall order
LLC to begin making such payments and to make all
required fund payments that it has failed to make since
July 15, 2003, including any additional amounts applica-
ble to such payments as set forth in Merryweather Opti-
cal Co., 240 NLRB 1213, 1216 fn. 7 (1979).34 We shall
also order LLC to make whole the unit employees for
any losses they may have suffered as a result of the fail-
ure to make these payments, as set forth in Kraft Plumb-
ing & Heating, 252 NLRB 891 fn. 2 (1980), enfd. mem.
661 F.2d 940 (9th Cir. 1981), such amounts to be com-
puted in the manner set forth in Ogle Protection Service,
183 NLRB 682 (1970), enfd. 444 F.2d 502 (6th Cir.
1971), with interest as prescribed in New Horizons for
the Retarded, supra.
33 Conclusion of Law 13 is not intended to, and does not, express
any view as to the merits of the allegations in severed and remanded
Case 7–CA–46565. See fn. 1, supra.
34 To the extent that an employee has made personal contributions to
a fund that were accepted by the fund in lieu of Respondent LLC’s
delinquent contributions during the period of the delinquency, the Re-
spondent LLC will reimburse the employee, but the amount of reim-
bursement will constitute a setoff to the amount that Respondent LLC
otherwise owes the funds.
ORDER
The National Labor Relations Board adopts the rec-
ommended Order of the administrative law judge as
modified and set forth in full below and orders that the
Respondent, Cadillac Asphalt, L.L.C., Novi, Michigan,
its officers, agents, successors, and assigns, shall
1. Cease and desist from
(a) Unlawfully threatening employees with layoff
unless they transfer their union membership from the
Teamsters to either the Laborers or Operating Engineers.
(b) Rendering assistance and support to the Laborers
and Operating Engineers by:
i. Urging unit employees to sign check-off au-
thorizations for said labor organizations; and
ii. Deducting money from unit employees’ wages
and remitting it to the Laborers and Operating Engi-
neers, notwithstanding the absence of employee au-
thorizations for such deductions and remittance and
notwithstanding that neither the Laborers nor the
Operating Engineers is the lawfully recognized ex-
clusive collective-bargaining representative of the
unit.
(c) Telling employees that they must transfer their un-
ion membership from the Teamsters to keep their jobs.
(d) Failing to maintain all of the terms and conditions
of the unit employees’ employment by discontinuing
payments to Teamsters health and welfare and pension
funds required by the terms of the expired 1998–2003
Michigan Road Builders Association labor agreement.
(e) Bypassing the Teamsters and dealing directly with
their unit employees by offering to provide alternative
health insurance coverage.
(f) Failing and refusing to recognize the Teamsters as
the exclusive bargaining representative of unit employees
and refusing to bargain with the Teamsters.
(g) In any like or related manner interfering with, re-
straining, or coercing employees in the exercise of the
rights guaranteed them by Section 7 of the Act.
2. Take the following affirmative action necessary to
effectuate the policies of the Act.
(a) Recognize and, on request, bargain with the Team-
sters as the exclusive representative of the employees in
the following appropriate unit concerning terms and con-
ditions of employment and, if an understanding is
reached, embody such understanding in a signed agree-
ment. The appropriate unit is:
All full-time and regular part-time drivers employed by
Respondent LLC at or out of its Novi, Michigan facil-
ity, but excluding all office clerical employees, guards
and supervisors as defined in the Act, and employees
already represented by other labor organizations.
CADILLAC ASPHALT PAVING CO.
13
(b) Make whole the unit employees, in the manner set
forth in the amended remedy section of this decision, for
any losses they may have suffered as a result of the Re-
spondent’s unauthorized deductions of moneys from the
unit employees’ wages and remittance of said moneys to
either the Laborers or Operating Engineers.
(c) Make all required health and welfare and pension
payments to Teamsters Funds that have not been made
since July 15, 2003, in accord with the terms of the ex-
pired 1998–2003 MRBA labor agreement, and reimburse
unit employees for any expenses ensuing from the failure
to make these payments, with interest, as set forth in the
amended remedy section of this decision.
(d) Preserve and, within 14 days of a request, or such
additional time as the Regional Director may allow for
good cause shown, provide at a reasonable place desig-
nated by the Board or its agents, all payroll records, so-
cial security payment records, timecards, personnel re-
cords and reports, and all other records, including an
electronic copy of such records if stored in electronic
form, necessary to analyze the amounts due under the
terms of this Order.
(e) Within 14 days after service by the Region, post at
its facility in Novi, Michigan, copies of the attached no-
tice marked “Appendix.”35
Copies of the notice, on
forms provided by the Regional Director for Region 7,
after being signed by the Respondent’s authorized repre-
sentative, shall be posted by the Respondent and main-
tained for 60 consecutive days in conspicuous places
including all places where notices to employees are cus-
tomarily posted. Reasonable steps shall be taken by the
Respondent to ensure that the notices are not altered,
defaced, or covered by any other material. In the event
that, during the pendency of these proceedings, the Re-
spondent has gone out of business or closed the facility
involved in these proceedings, the Respondent shall du-
plicate and mail, at its own expense, a copy of the notice
to all current employees and former employees employed
by the Respondent at any time since June 2003.
(f) Within 21 days after service by the Region, file
with the Regional Director a sworn certification of a re-
sponsible official on a form provided by the Region at-
testing to the steps that the Respondent has taken to
comply.
(g) IT IS FURTHER ORDERED that the complaint is dis-
missed insofar as it alleges violations of the Act not spe-
cifically found.
35 If this Order is enforced by a judgment of a United States court of
appeals, the words in the notice reading “Posted by Order of the Na-
tional Labor Relations Board” shall read “Posted Pursuant to a Judg-
ment of the United States Court of Appeals Enforcing an Order of the
National Labor Relations Board.”
MEMBER WALSH, dissenting in part.
I agree with the majority’s findings that Respondent
Cadillac Asphalt, L.L.C. (LLC) was a “perfectly clear”
successor to Respondent Cadillac Asphalt Paving Com-
pany (Paving), and therefore that LLC violated Section
8(a)(5) of the National Labor Relations Act (the Act) by
failing to continue in effect the terms and conditions of
the expired 1998–2003 Michigan Road Builders Associa-
tion (MRBA)/Teamsters labor agreement. As explained
below, however, I would also find that LLC, as a per-
fectly clear successor, violated Section 8(a)(5) by failing
to continue in effect the terms and conditions of em-
ployment—the terms of the 2003–2008 MRBA labor
agreement—that existed when it took over Paving’s op-
erations.1
The judge and the majority have fully set out the rele-
vant facts. In brief, the issues here arise from the forma-
tion of LLC, a joint venture of Levy Company (Levy)
and Michigan Paving & Materials Company (MPMC).
The joint venture comprised three asphalt plants owned
by MPMC and their employees, and two facilities owned
by Levy, including Paving, and their employees. Pav-
ing’s employees were represented by three unions:
Teamsters Local 247 (Teamsters), Laborers Local 1191
(Laborers), and Operating Engineers Local 324 (Operat-
ing Engineers). The Teamsters have represented Pav-
ing’s drivers for more than 30 years, and at all material
times, the drivers have been covered by collective-
bargaining agreements between Teamsters Joint Council
43 and the MRBA.
My colleagues and I agree that, because LLC was a
“perfectly clear” successor to Paving, it violated Section
8(a)(5) of the Act when it failed to continue in effect the
terms of the 1998–2003 MRBA/Teamsters labor agree-
ment. My colleagues, however, adopt the judge’s find-
ing that Respondent Paving was not bound by the subse-
quent 2003–2008 MRBA. The judge based this finding
on his determination that the General Counsel did not
authenticate a power of attorney that assertedly bound
the Respondents to the 2003–2008 labor agreement. The
Respondents, however, waived any objection to the au-
thenticity of the power of attorney. Therefore, it must be
deemed authenticated, and LLC, as the perfectly clear
successor to Paving, is required to offer the terms and
conditions of employment that existed when it took over
operations from Paving.
The record shows that the MRBA produced the power
of attorney pursuant to the General Counsel’s pretrial
subpoena seeking all “powers of attorney” executed and
submitted by or on behalf of Paving by which Paving
1 All dates hereafter are 2003, unless otherwise indicated.
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
14
designated the Labor Relations Division of the MRBA to
bargain on its behalf with Teamsters Joint Council 43.
At the hearing, the General Counsel introduced the
power of attorney in question, signed by a representative
of Paving on February 6, 1986, along with an April 2003
list of contractors belonging to the Labor Relations Divi-
sion of the MRBA, and a memorandum reflecting the
substantive changes negotiated by the Teamsters and the
MRBA for the period 2003–2008 (GC Exh. 21).
LLC’s attorney objected to the receipt of the exhibit,
not on authenticity grounds, but solely because the
MRBA might not have fully complied with the sub-
poena. The General Counsel replied that GC Exhibit 21
did not necessarily include all documents conceivably
encompassed by the subpoena, but rather just those
documents the MRBA had furnished in response.2 The
judge received the exhibit for “that limited purpose,” and
neither LLC nor Paving objected. The power of attorney
bears Paving’s name and a signature on its behalf; if any
party (including Paving or LLC) had concerns about the
authenticity of the power of attorney, it could and should
have raised them at that time.
Neither Paving nor LLC offered any document that re-
scinded, modified, or limited the power of attorney, nor
did either one adduce any evidence casting doubt on its
authenticity. Although LLC’s assertion at the hearing—
that the documents in GC Exhibit 21 might not be fully
responsive to the subpoena—perhaps raises a question as
to the weight to be given to the power of attorney, it does
not constitute a challenge to its authenticity or admissi-
bility.3 Accordingly, the Respondents waived any objec-
tion they had to the authentication of the document.
In any event, the record establishes that the disputed
power of attorney is bona fide. It was produced by the
MRBA, the natural custodian of documents of this na-
ture. It reads as powers of attorneys usually do, and no
question has been asserted by any party concerning the
authority of the signatory to sign the document on Pav-
ing’s behalf. In addition, the document is an open-ended
2 It was in that context that the General Counsel informed the judge
that the documents might not be “accurate or comprehensive compli-
ance,” as the majority recounts. In view of the General Counsel’s
statement a moment earlier that he did not think that there was “any
genuine question as to authenticity,” as the majority also recounts, I
think it only reasonable to conclude that the General Counsel intended
“accurate” to modify “compliance”; in other words, the General Coun-
sel was simply stating that the MRBA had not necessarily fully com-
plied with the subpoena.
3 The MRBA’s records custodian was subpoenaed but did not appear
at the hearing. However, given that neither Respondent questioned the
authenticity of the power of attorney and given that the judge admitted
the power of attorney into evidence, the General Counsel had no reason
to initiate a subpoena enforcement action to compel the attendance of
the records custodian.
power of attorney, with no expiration date, and the re-
cord shows that Paving was bound by successive con-
tracts between the MRBA and Teamsters, which is con-
sistent with Paving’s having executed the power of attor-
ney to the MRBA. On June 13, 2003, the MRBA and
Teamsters Joint Council 43 reached agreement on a new
5-year contract, with an effective date of June 1, 2003, 1
month before Paving’s operations were taken over by
LLC. There is no evidence as of that date, or any other,
that Paving had revoked the power of attorney to the
MRBA or advised Teamsters Joint Council 43 that it
wished to withdraw from multiemployer bargaining.
Accordingly, all of the evidence strongly supports the
conclusion that the power of attorney was bona fide and
that it bound Respondent Paving to the 2003–2008
MRBA labor agreement.
Under all of these circumstances, I would find that the
Respondents waived any objection to the power of attor-
ney’s authenticity, that the power of attorney bound Re-
spondent Paving to the 2003–2008 labor agreement, and
that Respondent LLC, as Paving’s perfectly clear succes-
sor, is required to offer initial terms and conditions of
employment in accord with the 2003–2008 MRBA labor
agreement.
APPENDIX
NOTICE TO EMPLOYEES
POSTED BY ORDER OF THE
NATIONAL LABOR RELATIONS BOARD
An Agency of the United States Government
The National Labor Relations Board has found that we vio-
lated Federal labor law and has ordered us to post and obey
this notice.
FEDERAL LAW GIVES YOU THE RIGHT TO
Form, join, or assist a union
Choose representatives to bargain with us on
your behalf
Act together with other employees for your bene-
fit and protection
Choose not to engage in any of these protected
activities.
WE WILL NOT threaten employees with layoff unless
they transfer their union membership from Local 247,
International Brotherhood of Teamsters, to either Labor-
ers Local 1191, Laborers’ International Union of North
America, or Local 324, International Union of Operating
Engineers, AFL–CIO.
WE WILL NOT render assistance and support to the La-
borers or Operating Engineers by:
CADILLAC ASPHALT PAVING CO.
15
(1) urging unit employees to sign check-off au-
thorizations for these labor organizations; and
(2) deducting money from unit employees’
wages and remitting it to the Laborers and Operating
Engineers, notwithstanding the absence of employ-
ees’ authorizations for such deductions and remit-
tance and notwithstanding that neither the Laborers
nor the Operating Engineers is the lawfully recog-
nized exclusive bargaining representative of the unit.
WE WILL NOT tell employees that they must transfer
their union membership from the Teamsters to keep their
jobs.
WE WILL NOT unilaterally change the terms and condi-
tions of unit employees’ employment by discontinuing
health and welfare and pension contributions to Team-
sters funds on their behalf.
WE WILL NOT bypass the Teamsters and deal directly
with their unit employees by offering to provide alterna-
tive health insurance coverage.
WE WILL NOT fail and refuse to recognize the Team-
sters as the exclusive collective-bargaining representative
of the unit employees and refuse to bargain with the
Teamsters.
WE WILL NOT in any like or related manner interfere
with, restrain, or coerce you in the exercise of the rights
guaranteed you by Section 7 of the Act.
WE WILL recognize and, on request, bargain with the
Teamsters as the exclusive representative of the employ-
ees in the following appropriate unit concerning terms
and conditions of employment and, if an understanding is
reached, embody such understanding in a signed agree-
ment. The appropriate unit is:
All full-time and regular part-time drivers employed by
Respondent LLC at or out of its Novi, Michigan facil-
ity, but excluding all office clerical employees, guards
and supervisors as defined in the Act, and employees
already represented by other labor organizations.
WE WILL make whole the unit employees for any losses
they may have suffered as a result of our unauthorized
deductions of moneys from the unit employees’ wages
and remittance of said moneys to either the Laborers or
Operating Engineers.
WE WILL make all required health and welfare and pen-
sion payments that have not been made since July 15,
2003, and reimburse unit employees for any expenses
resulting from our failure to make the required payments,
with interest.
CADILLAC ASPHALT, L.L.C.
Linda Rabin Hammell, Esq. and Michael Silverstein, Esq., for
the General Counsel.
John Patrick White, Esq. and Kurt M. Graham, Esq., for the
Respondent, Cadillac Asphalt, L.L.C.
Russell S. Linden, Esq., for the Respondent, Cadillac Asphalt
Paving Company.
Thomas “Tommy” Aloisio, President, for the Charging Party,
Teamsters Local Union No. 247.
Eric I. Frankie, Esq., on behalf of Party in Interest, Michigan
Laborers District Council.
J. Douglas Korney, Esq., on behalf of Party in Interest, Local
324 Operating Engineers.
Bruce Rvedisveli, on behalf of Laborers Local 1191.
DECISION
STATEMENT OF THE CASE
LAWRENCE W. CULLEN, Administrative Law Judge.
This
case was heard before me on June 28 and 29, 2004, in Detroit,
Michigan, pursuant to an amended consolidated complaint
issued by the Regional Director for Region 7 of the National
Labor Relations Board (the Board) on January 7, 2004. The
complaint is based on an amended charge in Case 7–CA–
46464, filed by the Charging Party Local 247, International
Brotherhood of Teamsters, AFL–CIO (the Charging Party Un-
ion or the Teamsters) on August 27, 2003, and on a charge in
Case 7–CA–46565 filed by the Charging Party, Patrick F.
Raymo (Charging Party Raymo or Raymo) on September 2,
2003. The Michigan Laborers District Council (Laborers) and
Local 324 Operating Engineers (Operators) have each inter-
vened in this case as Parties in Interest. The complaint as
amended at the hearing alleges that Respondent Cadillac As-
phalt Paving Company (Paving) and its alter ego or successor
Respondent Cadillac Asphalt, L.L.C. (L.L.C.) violated Section
8(a)(1), (2), (3), and (5) of the National Labor Relations Act
(the Act). Paving and L.L.C. have filed an answer denying that
they are a single employer or an alter ego of each other and
have denied the commission of any violations of the Act.
Upon consideration of the testimony of the witnesses, the
exhibits admitted at the hearing and the admissions and stipula-
tions entered in this case and the positions of the parties as
argued at the hearing and as set out in their briefs, I make the
following
FINDINGS OF FACT AND CONCLUSIONS OF LAW1
A. The Business of the Respondents
The complaint alleges and Respondents admit, and I find,
that at all times material until about June 30, 2003, Respondent
Cadillac Asphalt Paving Company (Paving), a corporation with
an office and place of business at 27575 Wixom Road, Novi,
Michigan, has been engaged in the asphalt paving of roads and
parking lots, that at all material times since about June 30,
2003, Respondent Cadillac Asphalt, L.L.C. (L.L.C.), a limited
liability company, with an office and place of business at 27575
Wixom Road, Novi, Michigan, has been engaged in the asphalt
paving of roads and parking lots.
1 The following includes a composite of the credited testimony and
the exhibits received at the hearing.
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
16
B. The Labor Organization
The complaint alleges, Respondent admits, and I find that at
all times material Local 247 International Brotherhood of
Teamsters has been and is a labor organization within the
meaning of Section 2(5) of the Act.
I. BACKGROUND
The facts of this case are largely undisputed. Cadillac As-
phalt, L.L.C. (L.L.C.) was formed as a joint venture between
Levy Company (Levy) and Michigan Paving & Materials
Company (Michigan Paving or MPMC), with each company
contributing various assets to the enterprise including Cadillac
Asphalt Company (Paving) located in Wixom, Michigan, as
one of five operating units within the new joint venture. The
parties have stipulated that Paving is an assumed name of a
division of Levy.
Counsel for the General Counsel alleges that L.L.C. is a sin-
gle employer and/or successor to Paving. Respondents Paving
and L.L.C. contend that L.L.C. is a separate and distinct legal
entity with different management and a different structure of its
operations. Respondents contend that as a result of these opera-
tional changes, L.L.C. no longer uses a truckdriver classifica-
tion, which was represented by the Teamsters and that since the
drivers’ official job duties for L.L.C. have changed, the Team-
sters do not represent an appropriate unit of L.L.C.’s construc-
tion employees. Respondents contend that L.L.C., no longer
has a legal obligation to recognize the Teamsters as collective-
bargaining representative for the truckdrivers, as those employ-
ees are now part of an appropriate bargaining unit consistent
with their official job duties and are represented by either the
Laborers or Operators Unions.
Counsel for the General Counsel also alleges that L.L.C. vio-
lated Section 8(a)(1), (2), and (5) of the Act by rendering assis-
tance and support to the Laborers and Operators Unions and
deducting money from employees’ wages and remitting these
moneys to the Laborers and Operators Unions. Respondents
contend that L.L.C. never required employees to sign union
authorization cards, and never pressured or coerced any em-
ployees into signing up for the Laborers or Operators. L.L.C.
acknowledges that it did recognize the Laborers and Operators
as the bargaining representative for the two classifications of
employees that it hired at its five facilities (laborers and equip-
ment operators) as L.L.C. contends that employees in those
classifications shared a community of interest and performed
work within the jurisdiction of the Laborers and Operators and
the majority of those hired were previously represented by the
Laborers and the Operators. L.L.C. acknowledges that pursu-
ant to its bargaining agreements with those organizations it did
withhold and remit dues.
L.L.C. also notes that it is charged with having construc-
tively discharged employee Patrick Raymo which it denies.
Counsels for the General Counsel in their brief set out their
central legal theories in this case. Initially they contend that
L.L.C. is a Burns2 successor and/or disguised continuance alter
ego of Paving, citing the following evidence:
2 NLRB v. Burns Security Services, 406 U.S. 272 (1972).
(a) The decades-old and long recognized unit of driv-
ers was, and remains, an appropriate unit for the purposes
of collective bargaining.
(b) When Teamsters 247 made its bargaining demand
about July 18, 2003, L.L.C. had hired all of Paving’s un-
ionized drivers.
(c) L.L.C. continued Paving’s business in basically un-
changed form.
(d) Paving and L.L.C. have common ownership, man-
agement, business purpose, operations, equipment, cus-
tomers, and supervision.
(e) One of L.L.C.’s business purposes is to evade con-
tractual obligations to Teamsters Local 247.
The General Counsels contend that “Paving never withdrew
from multiemployer bargaining and was therefore bound by the
2003–2008 labor agreement that its bargaining agent, Michigan
Road Builders Association (MRBA), negotiated with Teamsters
Local 247,” as:
(1) L.L.C. shares Paving’s contractual obligation as its
alter ego.
(2) L.L.C. had a duty to honor the provisions of the
2003–2008 contract even as a Burns successor, because
L.L.C. has forfeited the privilege sometimes granted to
Burns successors to set their own initial terms and condi-
tions; by: (a) making it ‘perfectly clear’ that it would hire
all of the drivers, before apprising them that L.L.C. would
not honor their Teamsters terms and conditions of em-
ployment. This is known as the ‘perfectly clear’ exception
to Burns; (b) committing unfair labor practices such as an-
nouncing that the Teamsters union had no place in the new
organization, and by requiring the drivers to join other un-
ions and to relinquish their Teamsters membership and
benefits.
II. SEQUENCE OF EVENTS
Levy was the sole owner of Paving until June 30, 2003. This
ownership interest included facilities on Wixom Road in Novi,
Michigan, and on Dix Road in Detroit, Michigan. Paving had
offices, a maintenance garage, and storage space for trucks,
pavers, rollers, graders, and other equipment at the Wixom
Road facility. Paving performed asphalt paving services in-
cluding milling3 and conditioning4 surfaces, on public high-
ways and roads, private parking lots, and residential subdivi-
sions.
Three unions represented Paving’s hourly employees for col-
lective bargaining. They are Teamsters Local 247, Operating
Engineers Local 324, and Laborers Local 1191. At the end of
June 2003, the Teamsters represented five unit employees at
Paving. They were prime driver and union steward, Steve
Pierce, prime drivers Patrick Raymo and Markeit Robinson and
lowboy drivers Tim Taylor and Dan O’Neill. The Teamsters
drove prime trucks and lowboy trucks to and from various job-
3 “Milling” is the use of a machine with big teeth to mill down to a
certain depth around the old asphalt to provide room for the new as-
phalt.
4 “Conditioning” involves repair or preparation work on a hard sur-
face before the crew begins to pave.
CADILLAC ASPHALT PAVING CO.
17
sites. A prime truck is a single-axel truck, with a cab and chas-
sis, along with various pumps and levels to apply the prime
bonding agent. Prime is the coating that goes on roads to bond
the new asphalt to the old. The truck also contains a hose to
allow the driver to hand spray the prime. The employee either
sprays by hand, standing on the ground, or with a bar from
inside the truck. A lowboy truck is a tractor with a long, low,
gooseneck trailer that moves equipment, and sometimes mate-
rial from location-to-location. L.L.C. General Manager Alan
Sandell testified that Respondent continued to use these low-
boys through the end of the 2003 season. The paving season
usually extends from April to November. L.L.C. ordered new
hydraulic, beavertail trailers, similar to lowboys for the 2004
season. The differences between the two types of trailers are
mechanical ones that do not affect the function of the vehicle or
the required skills of the drivers. The lowboy drivers continued
to transport equipment for L.L.C. in the same manner and using
the same equipment as they had for Paving.
Paving drivers picked up and dropped off their trucks at the
Wixom Road lot. The drivers picked up their trucks in the
morning and proceeded to the jobsites. The work crews usually
consisted of 6 to 8 employees, a paver operator, two screw
men, one raker, two rollers, a prime truckdriver and a foreman.
The foreman was the only supervisor on the jobsite except for
an occasional visit from a supervisor or inspector. Upon arrival
at the jobsite, the prime drivers heated the prime and as neces-
sary cleaned the area with brooms and shovels which was
preparation work also performed by laborers. After applying
the prime, the drivers shoveled and raked asphalt, operated the
rollers and performed any other task required to assist the work
crews. Some times foremen instructed the drivers to perform
these tasks and at other times the drivers performed them on
their own initiative. Prime drivers thus regularly performed
these tasks just as laborers did, and also ran screws, rollers, and
loaders just as operators did.
As of June 2003, Paving employed three paving foremen:
Harry Hatfield, Mickey Smith, and Rick Ling. The condition-
ing foremen were Walter Beard and Dave Farrell and Don
Mester was a grade checker. These foremen reported to Area
Operations Managers Fred Aiken, Clyde Hatfield, and Bruce
Nacey. The area operations managers scheduled the Teamsters
drivers to work on a daily basis. The operations managers re-
ported to Vice President Rod Elliot who reported to Levy’s
Corporate Vice President Andy Schmidt.
Teamsters Local 247 has represented Paving’s drivers for
collective bargaining over 30 years. Local 247 is a member of
Teamsters Joint Council 43, which represents all Teamsters
locals in the State of Michigan. At all material times Paving’s
Teamsters unit has been covered by collective-bargaining
agreements between Teamsters Joint Council 43 and the
Michigan Road Builders Association (MRBA) an association of
employers in the building trades since 1986, through May 2003.
Local 247 President Thomas Aloisio testified that on April 28,
2003, Joint Council 43 and the MRBA commenced negotia-
tions for a new contract. His testimony was unrebutted and I
credit it. As of this date Paving had neither withdrawn a power
of attorney from the MRBA, nor notified Teamsters Local 247
that it no longer wished to engage in multiemployer bargaining.
Paving was listed on the MRBA. The existence of a power of
attorney purportedly signed by Paving is in dispute and was not
authenticated by the General Counsel at the hearing. Paving
was listed on the MRBA’s roster for multiemployer bargaining
with Michigan Teamsters Joint Council 43. On June 13, 2003,
the MRBA and Joint Council 43 reached a tentative agreement
on a new 5-year contract. As of that date Paving had not re-
voked a power of attorney to the MRBA nor advised Teamsters
Joint Council 43 that it wished to withdraw from multiemployer
bargaining. The parties final galley-proof printed version was
completed in March 2004. The new contract is retroactive to
June 1, 2003, and runs through May 31, 2008.
On June 30, 2003, Levy and MPMC entered into a joint ven-
ture and partnership to create L.L.C. which became effective on
July 1, 2003. MPMC was formerly known as Thompson-
McCully which is an entity wholly owned by Old Castle. Levy
and MPMC each own 50 percent of L.L.C. MPMC contributed
three asphalt plants with their associated equipment in the joint
venture (Clarkston, Whitmore Lake, and Belleville), with three
paving crews from each facility. Levy contributed its Wixom
(Paving) and Dix facilities with their associated equipment as
well as some additional moneys.
L.L.C.’s board of directors consists of two MPMC represen-
tatives and two Levy representatives. The current chairman of
the Board is Levy representative Evan Weiner. The board of
directors does not control day-to-day operations of L.L.C., nor
does it set labor relations policies for L.L.C. When MPMC
assumed control of L.L.C.’s operations on July 1, 2003, MPMC
knew that Levy had collective-bargaining agreements at Pav-
ing’s Wixom Road facility with Teamsters Local 247, Opera-
tors Local 324, and Laborers Local 1191. With this knowledge,
L.L.C.’s Wixom Division Manager Rod Elliot executed new
contracts with the Laborers and Operating Engineers for the
period 2003–2008. These contracts incorporated with only
slight variations, the MRBA master agreements that served as
Paving’s contract with Laborers Local 1191 and Operating
Engineers Local 324. Elliot crossed out “July,” and inserted
“June” on the face of the Operators’ Agreement and dated the
document June 1, 2003, and signed it on behalf of L.L.C..
L.L.C. also signed similar agreements with the Operators and
Laborers at all of the other facilities in the joint venture. The
only bargaining unit whose bargaining representative was not
recognized by L.L.C. was Teamsters Local 247.
There was no hiatus in operations for the transfer from Pav-
ing to L.L.C.. The Paving employees worked on June 30, 2003,
and on the next day, July 1, 2003. L.L.C. performs the same
work as Paving including paving, milling and conditioning of
public highways, private parking lots, and subdivisions. Paving
and L.L.C. serve many of the same customers. Almost all
hourly Paving employees were retained by L.L.C. including the
five Teamsters employees, who continued to park their vehicles
at the Wixom Road lot, drive the same prime and lowboy
trucks, assisted in Operators and Laborers work as necessary
and reported to the same foremen through the remainder of the
2003 paving season. These foremen continued to report to
Area Operations Managers Fred Aiken, Clyde Hatfield, and
Bruce Nacey for the remainder of the 2003 paving season
which ended Thanksgiving week. Former Paving Vice Presi-
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
18
dent Elliot remained at the Wixom facility as the Wixom Divi-
sion Manager. Only top-level management changed after the
formation of L.L.C. and they and clerical personnel worked at
off-site facilities resulting in little if any direct communications
with the drivers, who used the same equipment, performed the
same job functions and reported to the same supervisors for the
remainder of the 2003 season.
Prime truckdriver and Teamsters Union Steward Steve
Pierce testified that there had been rumors among Paving em-
ployees in 2003, that Paving would be purchased by Old Cas-
tle/Thompson-McCully/MPMC. Pierce testified he was aware
that Thompson-McCully had an unfavorable opinion of the
Teamsters and he inquired of Area Operations Manager Fred
Aiken, before and after the Old Castle purchase collapsed and
after L.L.C. announced the joint venture, whether this would
impact the Teamsters. On each occasion Aiken assured him
that Paving /L.L.C. would employ Teamsters at least through
the end of the 2003 season. Aiken said, “[E]verything was
going to stay the same.” I credit Pierce’s testimony which was
unrebutted as Aiken was not called to testify.
On July 7, Respondent Paving held a meeting in Novi for its
Wixom and Dix employees including the five Teamsters driv-
ers and approximately 50 other Paving employees. L.L.C.
President Dennis Rickard announced the L.L.C. joint venture
and said that the change was effective July 1. Following this
announcement MPMC’s safety director, Marlene Van Patton,
took over the meeting and asked all employees to fill out em-
ployment applications and W-4 forms which she said was
merely to update L.L.C.’s records and told the employees to
leave many of the applications’ sections blank such as the work
qualifications and experience levels. Teamsters members Steve
Pierce, Patrick Raymo, Markeith Robinson, Tim Taylor, and
Dan O’Neill filled out the employment applications and W-4
forms at the meeting as did the other employees. Van Patton
told the employees that L.L.C.’s new payroll checks had not
arrived yet. Pierce testified that 3 days later on July 10, that he
picked up his paycheck and noted that his and the other Team-
sters members checks were Cadillac Asphalt Paving checks
whereas other employees’ checks were Thompson-McCully
checks. Pierce also testified that he asked about L.L.C.’s
401(k) plan. The Teamsters-MRBA contract did not provide
for this benefit. Levy Paving had permitted its unionized em-
ployees to participate in the Company’s 401(k) plan. Pierce
was told by L.L.C.’s new General Manager Alan Sandell that
L.L.C. did not have a 401(k) plan for hourly employees. Both
Pierce and Raymo testified that L.L.C. did not mention any
other changes in wages, benefits, or job responsibilities at the
July 7 meeting. I credit their testimony which was unrebutted.
On July 8, the Teamsters drivers reported to work as usual,
performed the same jobs, drove the same trucks and received
their schedules as usual and reported to the same foremen as
before. No one from L.L.C. interviewed them for their jobs or
told them when they had been hired as L.L.C. employees.
On July 15, employees Pierce, Raymo, and Taylor were
waiting to begin their shift because of a rain delay and Elliot
told them he wanted to meet with them. L.L.C. also contacted
lowboy driver Dan O’Neill who was not scheduled to work
until later that day. Markeith Robinson could not be reached as
a result of illness in his family. L.L.C. met with four of the five
Teamsters that morning. Alan Sandell, Rod Elliot, and Fred
Aiken represented management. No notice of this meeting had
been given to Teamsters Local 247 President Aloisio. Elliot
commenced the meeting by telling the four Teamsters employ-
ees that L.L.C. would not employ Teamsters and that if they
wanted to continue working at L.L.C., the prime truckdrivers
would have to be represented by the Laborers union and the
lowboy drivers would have to be represented by the Operators
union. Teamsters Steward Pierce expressed concerns about the
legality of Elliot’s order and asked to talk to Aloisio. Pierce
also expressed concerns about pensions and insurance. Pierce
told the management representatives that O’Neill had 21-1/2
years invested in the Teamsters pension fund which fully vests
at 20 years of service. Pierce had about 16 years, Taylor had 10
years and Raymo had almost 5 years which is the minimum
vesting point under the Teamsters plan. Robinson had less than
2 years of Teamsters service. He told management that he,
O’Neill, and Taylor would lose substantial sums at retirement if
they left the Teamsters plan. Elliot responded, “We all have to
make sacrifices.” In addition Raymo told management that his
wife was to undergo major surgery in the near future and that
he had been assured by the Teamsters health insurance plan
agents that she would be fully covered. Sandell told them that
when they changed unions, they could immediately participate
in Thompson-McCully’s management insurance program until
they met the threshold requirements for coverage under the
Laborers and Operators insurance programs. Sandell also told
them that L.L.C. would guarantee their wages, that those be-
coming covered by the laborer’s union would continue to re-
ceive the higher Teamsters wage rate and that any future wages
negotiated by the Laborers and Operators unions would be
added to their existing salaries.
Sandell then left the meeting and Human Resources Repre-
sentative Mike Piecuch joined it shortly afterwards. He told the
drivers that he had heard of their concerns, conferred with his
supervisors and would ease their switch to the other unions by
laying the drivers off as of this date, July 15. Pierce inquired
whether the drivers should come to work the next day. Elliot
replied, “[I]f Fred Aiken has no problems scheduling you to-
morrow, we have no problems scheduling you.” The meeting
concluded by Sandell and Elliot allowing the drivers some lim-
ited time to contact their bargaining representatives. I credit the
foregoing testimony of Pierce and Raymo which was unrebut-
ted as Sandell and Elliot who were called as witnesses by Re-
spondent did not challenge their testimony. Piecuch was pre-
sent at the hearing but he was not called to testify.
Teamsters Steward Pierce further testified that on July 17,
Taylor called him and told him that L.L.C. management had
told Robinson to switch unions that day or the next day. Pierce
confirmed this with Robinson who signed a dues authorization
checkoff card for the Laborers Local 1199 on July 18. On the
same day Pierce called Aiken and asked, “If we refuse to
switch unions are we laid off as of tomorrow.” Aiken replied
yes, that is the situation. Pierce told Aiken he was not switch-
ing unions and would park his truck. However later that day
Aloisio persuaded Pierce to stay on the job to fight for the
Teamsters recognition which he did. On the evening of July
CADILLAC ASPHALT PAVING CO.
19
18, Elliot met with Raymo and told him, “There is no sense of
just hee-hawing, just switch. There is no sense to keep drag-
ging it out because they (L.L.C.) gave us (the drivers) a week
extra in the beginning to think about it.”
Elliot then gave
Raymo a folder containing Laborers benefits brochures and a
Laborers business representative’s business card. Raymo asked
for more time and Elliot gave him the weekend to decide. Later
that day Elliot met with Pierce and Pierce told him in the pres-
ence of Aiken, that he would not switch unions. He also told
Elliot the Labor Board was involved and asked if he should
come to work on Monday. Elliot said if it was okay with
Aiken, it was okay with him for Pierce to work on Monday. I
credit the testimony of Pierce over that of Elliot and Aiken who
denied having threatened to lay off the drivers if they did not
accept either the Laborers or Operators Unions as their collec-
tive-bargaining representative.
On that weekend Raymo discussed the ultimatum with his
wife. He testified that they decided they could not risk the loss
of the Teamsters health insurance coverage because of his
wife’s medical condition and did not want to risk the loss of his
Teamsters pension. Raymo testified he “took the layoff” and
on that Monday he called Elliot and Aiken to tell them he was
taking the layoff. He also told Elliot that he wanted to spend
more time with his son who had returned from military service
in Iraq and that he wished to work with his wife in photogra-
phy. He testified at the hearing that he was not motivated in
taking the layoff because of either reason. I credit Raymo’s
testimony.
Teamsters Local 247 President Aloisio testified that after he
was informed of the ultimatum to the Teamsters employees that
he called Levy headquarters and obtained Alan Sandell’s busi-
ness address and then mailed a certified letter dated July 18, to
Sandell at L.L.C.’s address which states in part, “Our members
were informed on Tuesday that Old Castle lowboy drivers
would have to join the Operating Engineers and prime truck-
drivers would have to join Laborers Local 1191. Please contact
me at your earliest convenience to schedule a meeting to
straighten out this terrible mistake and injustice to our mem-
bers.” On July 22, Aloisio mailed a letter to L.L.C.’s Wixom
Road facility and demanded that Respondent recognize Local
247 as the drivers’ exclusive bargaining representative. He also
stated that a majority of the drivers had designated Local 247 as
their exclusive collective-bargaining representative. Aloisio
also had Pierce obtain signed Teamsters membership cards
which were voluntarily signed by all five drivers and were
submitted on July 22, to the Board’s Regional Office with a
petition seeking a representation election. The petition was
withdrawn on July 30, after he learned that the Board’s Re-
gional Officer had informed Pierce that L.L.C. was already
obligated to bargain with the Teamsters and there was no need
to file a petition.
Aliosio also testified that in late July after several attempts
he spoke with L.L.C. President and Board Member Dennis
Rickard and requested that L.L.C. pay the Teamsters’ benefits.
He offered to send Rickard a copy of the 2003–2008 labor
agreement and offered to sit down and negotiate an alternative
agreement if Rickard did not like the terms of the MRBA con-
tract. Rickard did not meet with Aloisio and Aloisio then
mailed a certified letter to Rickard dated August 8, which states
in part, “Mr. Rickard, just as you have done with the Operators
and Laborers, I expect you to honor the Michigan Road Build-
ers agreement as it pertains to the Teamsters. In that regard it is
imperative that you immediately submit health, welfare and
pension contributions on behalf of our members to the Michi-
gan Conference of Teamsters Health & Welfare Fund and the
Central States Pension Fund.” General Counsel contends that
Aloisio’s version of the conversation with Rickard is the more
credible and was consistent with his affidavit and was fact spe-
cific whereas Rickard’s account was deficient of details and
was uncorroborated. I credit Aliosio’s testimony as set out
above.
It is undisputed that since July 2003, neither Paving nor
L.L.C. has paid any pension or health and welfare benefits to
the Teamsters’ funds, nor have they remitted any dues to Local
247, for the Teamsters drivers. It is also undisputed that these
unilateral actions were taken by Respondents without Local
247’s permission and without bargaining. Respondent has,
since July, made deductions from the Drivers’ paychecks and
remitted these moneys to the Laborers and Operators vacation
funds.
Teamsters Steward Pierce telephoned L.L.C.’s payroll de-
partment shortly after the payroll deduction changes were made
by Respondents and requested that L.L.C. cease making these
unauthorized deductions. Pierce drafted and delivered a letter
which stated in part on behalf of all five drivers, “We did not
sign authorization slips for any of these deductions. We want
you to cease immediately taking these deductions. We want to
be reimbursed 100 percent of the deductions immediately.”
Pierce testified that in early August, Aiken called him at a job-
site and told him that the Laborer’s business agent was coming
to the jobsite to sign him up in the Laborers union. Pierce re-
fused to do so when he was contacted by the business represen-
tative. Aiken denied this. I credit Pierce’s testimony.
At the hearing, before the close of the General Counsel’s
case, the General Counsel and the Respondents entered into the
following stipulations which are designated as Joint Exhibit 3:
1. The joint venture among Levy Co., Michigan Pav-
ing and Materials Co., and Cadillac Asphalt L.L.C. took
effect on July 1, 2003.
2. Until about July 15, 2003, Paving made contribu-
tions to the Michigan Teamsters Health & Welfare and
Teamsters Central States Pension Plans on behalf of the
five drivers at issue in this matter (Steven Pierce, Pat
Raymo, Markeith Robinson, Timothy Taylor, and Dan
O’Neill).
3. Until about July 15, 2003, Paving deducted union
dues from the pay of the five drivers named above, and
remitted the same to Teamsters Local 247.
4. Since about July 16, 2003, neither Paving nor L.L.C.
has deducted union dues from the pay of the five drivers
named above, or remitted the same to Teamsters Local
247.
5. At no time did L.L.C. receive a revocation of dues
checkoff authority relative to Teamsters Local 247 from
the five drivers named above.
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
20
6. At no time did L.L.C. receive dues checkoff au-
thorizations relative to Teamsters Local 247 from any of
the five drivers named above.
7. Since about July 16, 2003, neither Paving nor
L.L.C. has made any contributions to the Michigan Team-
sters Health & Welfare or Teamsters Central S[t]ates Pen-
sion Plans on behalf of the five drivers at issue in this case.
8. Since about July 16, 2003, LCC has made fringe
benefit contributions on behalf of the five drivers named
above, during the periods that they worked at L.L.C., to
health & welfare and/or pension plans negotiated by
Michigan Laborers District Council and/or Operating En-
gineers Local 324, pursuant to the applicable provisions of
those unions’
collective bargaining agreements with
L.L.C. for the period 2003–2008.
These parties also stipulated that the following individuals
still work for L.L.C. as of the date of the hearing: Fred Aiken,
Markeith Robinson, Dan O’Neill, and Timothy Taylor. The
parties also stipulated that it was more likely that July 7, 2003
is the date of the meeting in which applications were distrib-
uted. I accept these stipulations and find the date of this meet-
ing was July 7, 2003.
III. CONTENTIONS OF THE PARTIES
A. Counsels for the General Counsel’s Position
The General Counsels make several points and arguments in
their brief. They contend that the Teamsters drivers unit was
historically, and still is an appropriate unit for collective bar-
gaining with L.L.C., citing Overnite Transportation Co., 322
NLRB 723 (1996), for the proposition that it is not necessary
for a unit for bargaining to be an optimum unit but only an
appropriate unit. The General Counsels cite Lincoln Park Zoo-
logical Society, 322 NLRB 263, 264 fn. 1 (1996), for the propo-
sition that in historical units, a successor has a heavy burden to
show that changes it made in operations rendered the long-
standing unit inappropriate. The General Counsels note that in
the instant case, Teamsters Local 247 has represented Paving’s
drivers for over 30 years. Even under the new alignment of
their union affiliations, only the former Teamsters drivers oper-
ate the lowboys and spray the prime. There has been no show-
ing that the Teamsters’ unit lacks a sufficient community of
interest to warrant appropriate unit status.
The General Counsels further contend that on July 18 and
continuing thereafter, Local 247 President Aloisio communi-
cated legitimate bargaining demands and requests for recogni-
tion to L.L.C.’s agents. They cite Stanford Realty Associates,
306 NLRB 1061, 1066 (1992), quoting from Marysville
Travelodge, 233 NLRB 527, 532 (1977), for the proposition
that “a valid request to bargain need not be in any particular
form . . . so long as the request clearly indicates a desire to
negotiate and bargain on behalf of the employees in the appro-
priate unit concerning wages, hours and other conditions of
employment.” The General Counsels also assert that a union
official makes a legitimate bargaining demand when he informs
the successor’s agent that the union represents the predecessor
employees and supplies the Employer’s agent with a copy of
the parties collective-bargaining agreement, citing MSK Corp.,
341 NLRB 43, 45 (2004). They also assert that the filing of an
8(a)(5) refusal to bargain charge is tantamount to a valid re-
quest for recognition and bargaining, citing Spring Arbor Dis-
tribution Co., 312 NLRB 710, 712 (1993).
The General Counsels assert that Local 247 made its bar-
gaining demand after L.L.C. had hired a substantial and repre-
sentative complement of its work force. By July 18, when Lo-
cal 247 made its initial bargaining demand, L.L.C. had already
announced the joint venture and invited Paving’s hourly em-
ployees to fill out applications for the new company and con-
tinued to employ nearly all of Pavings hourly workers including
all five drivers who worked for L.L.C. on July 18. Thus L.L.C.
employed a substantial and representative complement of Pav-
ing’s Wixom drivers at the time of Local 247’s recognition and
bargaining demand. This supports a finding of successorship.
Fall River Dyeing Corp. v. NLRB, 482 U.S. 27, 52 (1987).
Thus L.L.C. has a duty to recognize and bargain with the in-
cumbent union Local 247 as “the continuity of the workforce
and continuity of the enterprise” are present. NLRB v. Burns
Security Services, supra.
The “continuity of the workforce”
factor is satisfied because L.L.C. hired all five of Paving’s
Wixom drivers, the entire complement of the appropriate col-
lective-bargaining unit. The “continuity of the enterprise” test
is satisfied because from the drivers’ perspective, they use the
same facilities and equipment, report to the same supervisors,
and perform the same job functions under L.L.C. as they did for
Paving. Fall River Dyeing, supra at 33; Sierra Realty Corp.,
317 NLRB 832, 835 (1995); Nephi Rubber Products Corp., 303
NLRB 151, 152 (1991), enfd. 976 F.2d 1361 (10 Cir. 1992);
Premium Foods, Inc., 260 NLRB 708, 714 (1982), enfd. 709
F.2d 623 (9th Cir. 1983); Van Lear Equipment, Inc., 336 NLRB
1059, 1063–1064 (2001); Golden State Bottling Co. v. NLRB,
414 U.S. 168, 184 (1973); M.S. Management Associates, Inc.,
325 NLRB 1154, 1155 (1998), enfd. 241 F.3d 207 (2d Cir.
2001).
Levy and Old Castle entered into a transaction agreement
creating L.L.C. on June 20, 2003. On July 2, MPMC nominally
took charge of L.L.C. operations. However the Wixom Drivers
continued to drive the same lowboy and prime trucks, to park
them in the same locations, to be scheduled to work by the
same area managers, and to report to the same foremen at job-
sites. After L.L.C. representative Dennis Rickard formally
announced the joint venture on July 7, nothing changed from
the drivers’ perspective. The Teamsters drivers performed the
same kinds of Paving jobs under the same working conditions
and continued to serve the same public sector and private com-
mercial customers. The transition from Paving to L.L.C. was
invisible in July and seamless through the end of the 2003,
paving season.
The General Counsels further contend in brief that L.L.C. is
a “perfectly clear” successor to Paving, and therefore bound by
the terms and conditions set forth in Paving’s contract with
Teamsters Local 247, because it offered job applications to all
of Paving’s drivers and made it “perfectly clear” that it would
hire all of them before informing them that L.L.C. would not
honor the Teamsters’ terms and conditions of employment.
L.L.C. offered job applications to all of Paving’s drivers at the
July 7 meeting and on that day, the drivers completed and sub-
CADILLAC ASPHALT PAVING CO.
21
mitted the applications. At no time during this meeting did
L.L.C. agents mention changes in the Teamsters employees’
negotiated wages, benefits and other terms and conditions of
employment. Consequently the drivers reasonably assumed
their terms and conditions of employment, including their
Teamsters status would remain the same. It was not until July
15, at which time the drivers had been working for L.L.C. for at
least 8 days that L.L.C. advised that it would not recognize the
Teamsters. By misleading the drivers into believing that there
would be no change in their employment conditions prior to
inviting them to apply and hiring them, L.L.C. forfeited its
privilege as a Burns successor to set its own initial terms and
conditions of employment. Instead L.L.C. was obligated to
honor the terms and conditions set forth in Paving’s contract
with Teamsters Local 247 until it bargained with Local 247 to
change those terms and conditions or reached good-faith im-
passe. The General Counsel also contends that under Advanced
Stretchforming International, Inc., 323 NLRB 529, 530 (1997),
enfd. in relevant part 233 F.3d 1176 (9th Cir. 2000), cert. de-
nied 534 U.S. 948 (2001), L.L.C. also forfeited its rights to set
initial terms and conditions of employment.
The General Counsel contends alternatively that L.L.C. is the
alter ego of Paving with a contractual duty to abide by Paving’s
MRBA agreement. Paving and L.L.C. employed substantially
identical management and supervision at the Wixom facility.
Although L.L.C.’s upper-level managers came from MPMC,
Levy’s coequal partnership status assured Levy the right to
appoint one-half of L.L.C.’s board of directors. Commonality
of ownership also obtains, by virtue of Levy’s 50 percent own-
ership interest in L.L.C.. The business purpose, customers and
operations of Paving and L.L.C. are also mutual. Paving’s
Wixom facility, home to the Teamsters drivers, continued to be
a fully functioning facility for L.L.C. employees during the
2003 season. The alter ego finding is justified by Paving’s and
L.L.C.’s substantially identical operations and supervision,
shared business purpose and premises, similar customers and
equipment and overlapping ownership. By operation of law,
L.L.C. is therefore bound as a party to Paving’s MRBA con-
tract with Local 247. Southport Petroleum Co. v. NLRB, 315
U.S. 100, 106 (1942); Howard Johnson Co. v. Detroit Local
Joint Exec. Board, 417 U.S. 249, 259 fn. 5 (1974). The terms
and conditions that L.L.C. was required to offer under the “per-
fectly clear” Burns or Advanced Stretchforming rationales, and
the contract to which L.L.C. is bound under the alter ego the-
ory, is the 2003–2008 MRBA agreement. A participant in mul-
tiemployer bargaining may only withdraw from the group if it
gives timely, unequivocal, and written notice to the affected
union. Retail Associates, Inc., 120 NLRB 388 (1958). The
timelines requirement is met if the employer gives notice prior
to the date on which negotiations are set to commence or actu-
ally commence. NLRB v. Charles D. Bonanno Linen Service,
Inc., 454 U.S. 404 (1982). In 1986, Paving signed an open-
ended power of attorney designating the MRBA as its bargain-
ing agent to negotiate and sign collective-bargaining agree-
ments with Teamsters Joint Council 43, Local 247’s bargaining
agent in dealings with the MRBA. The document has no expi-
ration date. On April 28, 2003, Joint Counsel 43, led by
Aloisio and the MRBA led by attorney Frank Mamat, opened
negotiations on a new 5-year contract. A successor agreement
for the term 2003–2008 was reached on June 13. Paving has
never served any notice, let alone timely unequivocal, and writ-
ten notice, that it wished to withdraw from multiemployer bar-
gaining. Therefore Paving was bound by the 2003–2008
agreement that its bargaining agent, the MRBA, negotiated
with Teamsters Joint Council 43.
B. Respondents’ Position
The Respondent L.L.C.’s counsels in their brief, which has
been adopted by Paving, contend that counsels for the General
Counsel have failed to meet their burden of establishing viola-
tions of the Act. They contend that L.L.C. is not a single em-
ployer, or an alter ego, as it is not managed by the same com-
pany or individual as Paving. L.L.C.’s management structure
has changed above the level of Wixom Division Manager El-
liot. Until July 1, 2003, Paving’s operations were managed by
Andy Schmidt, a Levy employee who supervised Elliot.
Schmidt was not hired to manage L.L.C. L.L.C. hired only 6
out of 15 Levy management employees that had previously
worked for Paving in Wixom.
On July 1, 2003, Alan Sandell, a former Michigan Paving
employee, was hired and began working as general manager for
L.L.C. Sandell has operational responsibility over all five op-
erating divisions of the L.L.C. Dan Stover, a regional manager,
who also formerly worked at Michigan Paving, assists Sandell
in operating the Wixom, Rawsonville, and Dix divisions.
Richard Brillhart, another regional manager for L.L.C. assists
Sandell with running the Clarkston and Whitmore Lake divi-
sions. The division managers for all five operating divisions at
L.L.C. report directly to Sandell, Stover, or Brillhart, not
Schmidt. Elliot reports directly to Stover. Sandell reports to
Dennis Rickard, the president of Michigan Paving, not a Paving
or Levy employee. Rickard has ultimate authority over labor
relations at L.L.C., although the vast majority of day-to-day
decisions are made by Sandell. Although Michigan Paving and
Levy each have two members on the L.L.C. board of directors,
the board of directors has no control over L.L.C.’s labor rela-
tions. Labor relations matters were previously handled by
Schmidt or Levy’s human resources department. However
L.L.C. does not have a human resources staff. Instead the divi-
sion managers perform the human resources functions. L.L.C.
has different employment policies than Paving. Corporate
ownership is different. Paving was 100 percent owned by Levy
and Levy had full operating control over Paving. Under the
joint venture agreement Levy shares equity ownership of
L.L.C. equally with Michigan Paving. Levy has no operating
control over L.L.C. Instead, Michigan Paving has 100 percent
control over all operating decisions with respect to its daily
operations. Respondent cites First Class Maintenance Service,
289 NLRB 484 (1988) (finding no alter ego status where there
was no substantially identical ownership, management, or su-
pervision). Whereas Levy originally had 100 percent owner-
ship and complete operational control over Paving, under the
joint venture agreement it now has only 50 percent equity own-
ership over L.L.C. and no operational contact. There is no
common management or centralized control of labor relations
in this case. Dennis Rickard and former Michigan Paving em-
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
22
ployee Sandell now manage operations of L.L.C., not any em-
ployees from Paving or Levy. Although there is some dimin-
ished common ownership, the total lack of labor relations or
operational contact effectively neutralizes this factor. Although
Division Manager Elliot and Area Managers Fred Aiken and
Clyde Hatfield had worked for Paving in the same capacity and
were hired by L.L.C., they are merely front-line supervisors and
do not report to any Levy or Paving employees. Under
L.L.C.’s management structure neither Levy or Paving exercise
any operational control over L.L.C. or control its labor rela-
tions. Respondent argues further that L.L.C.’s operations are
now different. It argues that Michigan Paving owns several
other paving operations in Michigan and that at these facilities,
the spraying of the asphalt sealant coat is done by the laborers.
The equipment operators both deliver equipment to, and oper-
ate it on the worksite. L.L.C. does not have lowboy drivers
transport equipment to and from the jobsite. The former low-
boy drivers now perform responsibilities as operators. They
drive equipment to the jobsite, operate the equipment, and drive
the equipment from the jobsites. Since it was already in the
middle of the paving season when L.L.C. took over, it was
unable to adopt the Michigan Paving business model during the
remainder of the 2003, paving season. However in the off-
season L.L.C. acquired new equipment, such as lowboy trailers
which allowed it to adopt the Michigan Paving business model
for the 2004 paving season. Respondent also contends that
there have been numerous changes in operational philosophy
and corresponding changes in job duties at L.L.C. Respondent
contends further that there is no evidence that L.L.C.’s forma-
tion was motivated by union animus. L.L.C. has a relationship
with the Laborers and Operators Unions and all construction
employees are represented by these two unions and in July
2003, L.L.C. negotiated collective-bargaining agreements with
the Laborers and Operators which run through 2008.
Respondents cite their effort to retain the Teamsters as em-
ployees and to ensure that they were accorded health insurance
and did not suffer a loss in wages because of the switch from
the Teamsters union to the Laborers or Operators unions. They
also cite as significant that Teamsters employees Pierce and
Taylor were permitted to continue to work at L.L.C. even
though they refused to sign with the Laborers or Operators.
Respondents contend that since L.L.C. is not a single em-
ployer it is not an alter ego. Respondents argue further that
L.L.C. is not a successor employer. They do not dispute that
L.L.C. hired a majority of Paving’s construction employees but
deny that L.L.C. is a Burns successor to Paving due to the op-
erational changes that have taken place. Respondent cites Bor-
der Steel Rolling Mills, Inc., 204 NLRB 814, 821 (1973), in
which the Board held that the “critical question is not whether
[L.L.C.] succeeded to [Paving’s] corporate identity or physical
assets, but whether [L.L.C.] continued essentially the same
operation, with substantially the same employee unit whose
duly certified bargaining representative was entitled to statutory
recognition at the time (L.L.C.) took over.” Respondent notes
that in answering this question, the Board will examine: (1)
whether there has been a substantial continuity of the same
operations; (2) whether the new employer uses the same plant;
(3) whether it has the same or substantially the same work
force; (4) whether the same jobs exist under the same working
conditions; (5) whether it employs the same supervisors; (6)
whether it uses the same machinery, equipment, and methods of
production; and (7) whether it manufactures the same product
or offers the same services, citing Deferiet Paper Co. v. NLRB,
235 F.3d 581, 584 (D.C. Cir. 2000), stating that an alleged suc-
cessor employer may demonstrate that a preexisting unit is no
longer appropriate by showing significant revisions in plant
operations and employee duties. Respondent argues that given
the significant operational changes that took place, the Team-
sters bargaining unit consisting solely of truckdriver employees
is no longer appropriate. Respondent also contends that the
General Counsel did not introduce a Board certification, or
other evidence describing the Teamsters unit and that the only
evidence produced on this issue was Aloisio’s testimony that
the Teamsters represented “employees” at Paving for “proba-
bly” 25 or 30 years. Respondent contends that it is thus unclear
whether Paving ever recognized the Teamsters and, if so how
and when the Teamsters unit was recognized, and what em-
ployees should belong to the bargaining unit. Respondent con-
tends that as of July 16, 2003, the truckdriver classification
represented by the Teamsters was eliminated and ceased to
exist. Since L.L.C. adopted the Michigan Paving business
model, equipment operators, not lowboy truckdrivers, were
responsible for transporting their own equipment to and from a
jobsite. Instead, former lowboy drivers were reclassified as
equipment operators and could spend a significant portion of
their workday at the jobsite operating equipment such as grad-
ers, pavers, and rollers, with the operators. This change in du-
ties created an exact community of interest between the former
lowboy drivers and operators since the employees worked side-
by-side on a daily basis performing the same work. Similarly
the distributor drivers did not solely or primarily drive a truck.
Both Pierce and Raymo testified that driving a distributor truck
did not take up an entire workday and they spent the rest of the
workday performing other tasks alongside the laborers such as
shoveling and raking asphalt. They were thus working out of
their classification and were working within the laborers bar-
gaining unit. Thus the former Teamsters represented employ-
ees no longer constituted an appropriate bargaining unit. The
former bargaining unit is no longer appropriate because of
“changed circumstances” arising from a shift in ownership or
change in business operations, citing Border Steel Rolling
Mills, Inc., supra at 820–822. L.L.C. is not a Burns successor.
Respondent argues further that even if L.L.C. is found to be a
Burns successor, it still has the right to establish initial terms
and conditions of employment for the Teamsters employees,
citing Fall River Dyeing Corp. v. NLRB, supra.
Respondent argues further that L.L.C. did not forfeit its right
to establish initial terms and conditions of employment as it has
not committed any unfair labor practices. Neither the Spruce
Up nor the “perfectly clear” exceptions to Burns apply. The
Teamsters employees began working for L.L.C. on July 16,
2003. Employees were issued paychecks by Paving until July
15, 2003. Thereafter they received checks from L.L.C. On
July 11, 2003, Sandell informed all Teamsters members, that
upon working for L.L.C., they would be subject to new terms
and conditions of employment. Pierce contends that he is “rela-
CADILLAC ASPHALT PAVING CO.
23
tively sure” that Sandell did not meet with the Teamsters mem-
bers to discuss their further terms and conditions of employ-
ment until July 15, 2003. Sandell testified he is “quite positive”
the meeting took place on July 11, 2003. Elliot corroborated
Sandell’s testimony, while Raymo could not recall the specific
date of the meeting. Regardless of whether the meeting oc-
curred on July 11 or 15, 2003, Pierce and Raymo both under-
stood, prior to starting work on July 16, 2003, that the Team-
sters employees would be subject to terms and conditions of
employment including wages and benefits based on the Opera-
tors or Laborers agreements with L.L.C. Elliot testified he
never told any truckdrivers, they would have their Teamsters
benefits once they became employed by L.L.C. Since L.L.C.
advised Teamsters employees, prior to taking over on July 16,
2003, that it was going to establish new terms and conditions of
employment, it did not forfeit its right under Burns to set initial
terms and conditions of employment in the event it is found to
be a successor of Paving, citing Planned Building Services,
Inc., 318 NLRB 1049 (1995) (employer properly established
initial terms and conditions of employment because it made
lawful Spruce Up announcement). Pierce testified that prior to
July 11, 2003, Aiken assured him that he and the other employ-
ees would remain Teamsters for at least the 2003 paving sea-
son. The Board has refused to bind an employer to erroneous
comments made to employees about their future working con-
ditions where it subsequently advised them prior to their hire of
their actual terms and conditions of employment citing Bekins
Moving & Storage Co., L.L.C., 330 NLRB 761, 763 (2000).
Since L.L.C. advised Teamsters employees, prior to taking over
on July 16, 2003, that it was going to establish new terms and
conditions of employment, it did not forfeit its right under
Burns to set initial terms and conditions of employment in the
event it is found to be a successor to Paving. Bekins Moving &
Storage, supra; Planned Building Services, supra.
Respondent contends that there is no collective-bargaining
agreement for L.L.C. to assume. L.L.C. is not bound by the
Roadbuilders agreement signed by the Teamsters since it never
signed the agreement, authorized anyone to sign it on its behalf,
or assumed the contractual obligations, citing Howard Johnson
Co. v. Detroit Local Joint Exec. Board, supra.
L.L.C. never
assumed the Roadbuilders agreement. The current Roadbuild-
ers agreement does not contain a successor clause binding
L.L.C. to the contract terms. Respondent is not bound to the
Roadbuilders agreement by a “power of attorney” that Paving
purportedly submitted to the Roadbuilders in 1986. Counsel
for the General Counsel failed to call any witness at the hearing
(even though the Roadbuilders keeper of records was subpoe-
naed to appear) to authenticate the power of attorney, or ensure
that other documentation did not exist, which modified, or
withdrew the power of attorney. Aloisio and Pierce both testi-
fied they had never previously seen the power of attorney.
There is no competent evidence to bind L.L.C. to the current
Roadbuilders contract with the Teamsters. Alternatively even
if L.L.C. is bound by the Teamsters/Roadbuilders contract the
earliest it was bound to start following the contract was spring
2004, when the Teamsters finally ratified the agreement.
IV. ANALYSIS
I find that L.L.C. is a single employer under the Act. In the
event that the Board does not agree with this finding, I find in
the alternative that L.L.C. is an alter ego under the Act. In the
event the Board does not agree with this alternative finding, I
find in the alternative that L.L.C. is a Burns’ successor of Pav-
ing. I find that the cases cited by the General Counsel in brief
are supportive of these findings. In the instant case the Team-
sters Local 247 has represented the unit of drivers at Paving for
over 25 years and has negotiated contracts through the repre-
sentation of Council 43 of the Teamsters with the Michigan
Road Builders Association (MRBA) which organization has
represented the Respondent Paving. I find the evidence sup-
ports a finding that L.L.C. hired the five drivers in the Team-
sters unit on July 7, 2003, at the meeting of all 50 plus Paving
employees when L.L.C.’s President Rickard informed all of its
employees in the three bargaining units (Teamsters, Operators,
and Laborers) of the joint venture and that it was effective on
July 16, 2003. At that meeting MPMC’s safety director,
Marlene Van Patton gave out applications to all the employees
and told them to disregard filling out the work history and ex-
perience sections of the applications, indicating that the appli-
cations were being solicited for payroll purposes. At this time
there was no mention of any withdrawal of recognition from
the Teamsters for the truckdrivers. The truckdrivers continued
to perform their normal work duties day-after-day thereafter
making it “perfectly clear” that the five truckdrivers had been
hired at the original meeting of July 7, 2003, by Rickard who
addressed them. Thus, once hired without any reservations the
bargaining unit was intact and Teamsters Local 247 remained
as the collective-bargaining representative of the truckdrivers
unit. It was not until July 15, 2003, that Respondent’s Manager
Sandell announced to the drivers that it was withdrawing rec-
ognition from the Teamsters Local 247. However by this time
L.L.C. had already employed the five drivers and L.L.C. had an
obligation to recognize and bargain with Local 247. Its with-
drawal of recognition and subsequent refusals to bargain were
violative of Section 8(a)(5) and (1) of the Act. It is also clear
that the July 15, 2003 statement by Rod Elliot to the Teamsters
employees that they could not continue to work as Teamsters
but would be required to join either the Laborers or Operators
Unions was coercive and violative of Section 8(a)(1) of the Act.
I credit the testimony of Pierce and Raymo that the employ-
ees were told they would have to join either the Laborers or
Operators Unions if they wanted to continue working. These
statements had a coercive effect as two of the lowboy drivers
joined the operators union and driver Raymo left his employ-
ment “took the layoff” under these coercive conditions. Thus
Raymo was constructively discharged by Respondent as he
feared he would lose the benefits of the Teamsters health insur-
ance for his wife who was facing major surgery. This ultima-
tum by Respondent left Raymo with a Hobson’s choice of ei-
ther joining the Laborer’s union or taking a layoff, which cul-
minated in Raymo’s constructive discharge. I find no merit to
Respondent’s defense of this allegation that it did not use the
exact verbiage of telling the employees to join the Operators or
Laborers Unions or they would be fired. I find Respondent
delivered the message in sufficiently specific terms that they
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
24
must join one of these unions if they wished to continue work-
ing as Respondent’s employees. I find no merit to Respon-
dent’s defense that it did not present the drivers with the
Hobson’s choice. Nor do I find any merit to its contention, that
since it did not discharge the other two prime drivers Pierce and
Taylor that this obviates the threat issued to these employees.
By its constructive discharge of Raymo, Respondent violated
Section 8(a)(1) and (3) of the Act.
I find the Respondents Paving and L.L.C. violated Section
8(a)(1) and (2) of the Act by rendering assistance and support
to the Laborers and Operators Unions by ceasing to deduct
Teamsters union dues and health and welfare and pension con-
tributions from the drivers’ wages and remitting them to the
Teamsters funds and by withholding moneys from the drivers’
wages and remitting them to the Laborers and Operators Un-
ions. These actions were carried out in spite of the fact that the
drivers had authorized dues deductions and health and welfare
and pension deductions to be remitted to the Teamsters Union
and in spite of the fact that the drivers had not authorized the
deduction of any moneys from their wages to be remitted to the
Laborers and Operators Unions. Furthermore the threats issued
to the drivers that they either join the Laborers or Operators
Unions or face layoff violated not only Section 8(a)(1) as
unlawful threats to the exercise of their Section 7 rights under
the Act but also violated Section 8(a)(2) of the Act as they con-
stituted unlawful assistance to the Operators and Laborers.
The actual cessation of deductions on behalf of the Team-
sters and the implementation of the deductions from the drivers
wages and remittance to the Laborers and Operators violated
Section 8(a)(1), (2), (3), and (5) of the Act.
The direct dealing of Sandlin with the employees in offering
to obtain insurance coverage of the L.L.C. policies for them
violated Section 8(a)(1) and (5) of the Act.
CONCLUSIONS OF LAW
1. At all material times until about June 20, 2003, Respon-
dent Cadillac Asphalt Paving Company (Paving) was an em-
ployer engaged in commerce within the meaning of Section
2(2), (6), and (7) of the Act.
2. About June 20, 2003, Respondent Paving created Respon-
dent Cadillac Asphalt, L.L.C. (L.L.C.), a limited liability com-
pany as a disguised continuance of Paving. Respondents are,
and have been at all material times, alter egos and a single em-
ployer within the meaning of the Act. Since about June 30,
2003, Respondent L.L.C. has continued to operate the business
of Respondent Paving in basically unchanged form, and has
employed as a majority of its employees, individuals who were
previously employees of Paving. Respondent L.L.C. has con-
tinued the employing entity and is a successor to Respondent
Paving, and has been an employer within the meaning of Sec-
tion 2(2), (6), and (7) of the Act.
3. At all material times herein, Charging Party Local 247, In-
ternational Brotherhood of Teamsters, AFL–CIO, Michigan
Laborers District Council, Laborers International Union of
North America, AFL–CIO, and Local 324, International Union
of Operating Engineers, AFL–CIO have each been labor or-
ganizations within the meaning of Section 2(5) of the Act.
4. All full-time and part-time drivers employed by Respon-
dent Paving and later by L.L.C. at or out of their Novi, Michi-
gan facility, but excluding all office clerical employees, guards
and supervisors as defined in the Act, and employees already
represented by other labor organizations, constitute a unit ap-
propriate for the purposes of collective bargaining within the
meaning of Section 9(b) of the Act.
5. At all times since 1973, the Charging Party Local 247 of
the Teamsters Union was the exclusive collective-bargaining
representative of the unit employed by Respondent Paving.
6. About July and August 2003, Respondents by their agents
Rod Elliot and Fred Aiken, at the Novi facility violated Section
8(a)(1) and (2) of the Act by threatening employees with layoff
unless they transferred their union membership from the Charg-
ing Party Teamsters Union to either the Laborers or Operating
Engineers.
7. Since about July 2003, Respondents, by their agents Rod
Elliot and Fred Aiken, at the Novi facility violated Section
8(a)(1) and (2) of the Act by rendering assistance and support
to the Laborers and Operating Engineers by:
(a) Urging unit employees to sign checkoff authorizations for
said labor organizations.
(b) Deducting money from unit employees’ wages and remit-
ting it to the Laborers and Operating Engineers, notwithstand-
ing the absence of employee authorizations for such deductions
and remittance and notwithstanding that neither the Laborers or
the Operating Engineers is the lawfully recognized exclusive
collective-bargaining representative of the unit.
8. About July 18, 2003, Respondents, by their agents, Rod
Elliot and Fred Aiken, violated Section 8(a)(1) and (2) of the
Act by telling unit employee Patrick F. Raymo that he must
transfer his union membership from the Teamsters Union to
keep his job.
9. On July 21, 2003, Respondents constructively discharged
their unit employee Patrick F. Raymo, in violation of Section
8(a)(1) and (3) of the Act.
10. Respondents violated Section 8(a)(1), (5), and 8(d) of
the Act by failing to continue in effect all of the terms and con-
ditions of the labor agreement by discontinuing dues deduc-
tions, health and welfare and pension contributions on behalf of
unit employees.
11. Respondents violated Section 8(a)(1) and (5) of the Act
by bypassing Local 247 of the Teamsters Union and dealing
directly with their unit employees by offering to provide alter-
native health insurance coverage.
12. Respondents violated Section 8(a)(1) and (5) of the Act
by since about June 30, 2003, failing and refusing to recognize
the Local 247 as the exclusive collective-bargaining representa-
tive of the unit and by refusing to bargain with the Teamsters
Union.
13. The above unfair labor practices affect commerce within
the meaning of Section 2(6) and (7) of the Act.
THE REMEDY
Having found that Respondents violated the Act, they shall
be ordered to cease and desist therefrom and to take certain
affirmative actions designed to effectuate the policies of the
Act.
CADILLAC ASPHALT PAVING CO.
25
Respondents shall be ordered to recognize and bargain with
Teamsters Local 247, and cease the unauthorized deductions of
moneys from the drivers wages and remittance of said moneys
to either the Laborers or the Operators Unions and to immedi-
ately reinstate the deductions from the drivers wages, and remit
to Local 247 the dues and pension and health insurance contri-
butions authorized to be made to Local 247. Respondents shall
make the drivers whole for the moneys unlawfully deducted
from their wages and shall make Local 247 and the Teamsters
funds and the drivers whole for Respondent’s failure to make
the authorized deductions for dues and the pension and health
insurance funds and to remit them to the Teamsters funds.
I find that the General Counsel has not authenticated the
power of attorney which the General Counsel contends bound
the Respondents to the 2003–2008 labor agreement. I accord-
ingly shall issue the bargaining order for the period commenc-
ing as of June 30, 2003, forward.
Respondent having discriminated by discharging Patrick F.
Raymo, shall be ordered to offer him reinstatement to his for-
mer position, or if his former position no longer exists, to a
substantially equivalent position and make him whole for any
loss of earnings and benefits he sustained as a result of the
unlawful discrimination against him less any net interim earn-
ings as prescribed in F. W. Woolworth Co., 90 NLRB 289
(1950). All amounts for unlawful deductions made from the
drivers’ wages and amounts unlawfully withheld by Respon-
dents and all amounts for Raymo’s backpay and benefits, shall
be with interest as computed in New Horizons for the Retarded,
283 NLRB 1173 (1987).
[Recommended Order omitted from publication.]