288 NLRB 710
Dependable Tile Company
710
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
Jack E. Hartman, a Sole Proprietorship, d/b/a De-
pendable Tile Company and Tile Layers Local
Union No. 19, Bricklayers and Allied Craftsmen
of America, AFL-CIO. Case 20-CA-16909
April 28, 1988
SUPPLEMENTAL DECISION AND
ORDER
BY CHAIRMAN STEPHENS AND MEMBERS
JOHANSEN AND CRACRAFT
On April 21, 1987, Administrative Law Judge
William L. Schmidt issued the attached supplemen-
tal decision. The Charging Party and the Respond-
ent filed exceptions and supporting briefs. The
General Counsel filed as its answering brief the
brief and supplemental letter it submitted to the
judge.
The National Labor Relations Board has delegat-
ed 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, fmdings, 1 and
conclusions as modified.
In this backpay proceeding, a dispute arose as to
the amount of reimbursement due certain trust
funds and the amount of backpay due employees.
The General Counsel's specification alleges that the
Respondent owes employees the difference be-
tween hourly rates specified in the 1981-1983
agreement and the rate paid for all hours worked
from the period April 1, 1983, to August 14, 1986,
and owes the trust funds the full amounts of the
contributions specified in the contract in the 1981-
1983 agreement for the same period. The Respond-
ent concedes the accuracy of the rates but claims
no backpay or trust fund reimbursement is due
after the 1981-1983 contract expired because it
timely withdrew from the Association on July 11,
1983, before formal negotiations began for a new
contract.
A major source of contention between the par-
ties is the legal significance of a meeting held July
8, 1983, between three members of the Associa-
tion's negotiation committee and union negotiators
to discuss forthcoming negotiations for a successor
agreement. Under Retail Associates, 120 NLRB 388,
395 (1958), we "refuse to permit the withdrawal of
an employer or a union from a duly established
multiemployer bargaining unit, except upon ade-
We correct the judge's inadvertent reference to April 1, 1980, as the
date the strike commenced. The correct date is April 1, 1981 In the first
paragraph in sec. C of his decision, he also inadvertently refers to the
period from April 1, 1983, through September 30, 1983, as the period the
Respondent was bound to the agreement The correct date is April 1,
1981.
quate written notice given prior to the date set by
the contract for modification, or to the agreed-
upon date to begin the multiemployer negotia-
tions."
We agree with the judge that the July 11, 1983
withdrawal letter was timely. 2 We find that formal
negotiations for contract modification did not begin
until August 3, 1983. The parties specifically
agreed between themselves to designate the July 8
meeting as an informal one. Moveover, the parties
had a history of engaging in exploratory talks
before the formal opening of negotiations. Formal
negotiations , which began in January 1981 were
preceded with meetings held in April, July, No-
vember, and December 1980 in which "both gener-
al and specific items relating to contract negotia-
tions were discussed." Dependable Tile Co., 268
NLRB 1147, 1150 (1984). Accordingly, negotia-
tions did not commence on July 8, and the Re-
spondent's withdrawal from multiemployer bar-
gaining on July 11 was timely.
Although the Respondent timely withdrew from
the contract, there remained a rebuttable presump-
tion of union majority status requiring the Re-
spondent, in general, to maintain the terms and
conditions of employment in effect until either a
new agreement was bargained, the Union waived
its right to bargain, or a bargaining impasse was
reached. Crest Floors & Plastics, 274 NLRB 1230
(1985). We adopt the judge's findings that the
Union's majority standing was not rebutted nor has
the Union waived its right to bargain. The Re-
spondent and the Union stipulated at the hearing
that they have not engaged in collective bargaining
since April 1, 1981. Based on the preceding, we
agree with the judge that the Respondent is also
liable for the period following the termination of
the 1981-1983 agreement until August 14, 1986, as
alleged by the General Counsel.
Accordingly, we adopt the judge's findings that
the Respondent is required to make specified pay-
ments to two employees and to the trust funds. In
so doing, however, we note that the General
Counsel in the amended backpay specification al-
leged that the backpay period ran from April 1,
1981, to August 14, 1986. We find the Respond-
ent's liability during this period has been decided
by the Ninth Circuit in this case, 3 which enforced
the Board's finding that the Union's relationship to
the Respondent and its employees was that of a
2 We find it unnecessary, therefore, to rely on the judge's alternative
rationale, which found that even assuming that the July 8 meeting repre-
sents the start of the bargaining process, the Respondent acted "to extri-
cate itself from group bargaining so soon thereafter as to cause no known
disruption."
3 774 F.2d 1376 (9th Cir. 1985).
288 NLRB No. 82
DEPENDABLE TILE CO.
711
Section 9(a) representative and that the Respondent
had unlawfully refused to honor its contract with
the Union. We do not pass on the issue of the Re-
spondent's liability for, or the effect of the Board's
decision in John Deklewa Sons' on, periods sub-
sequent to the specified backpay period.5
ORDER
The National Labor Relations Board orders that
the Respondent, Jack E. Hartman, a sole propri-
etorship, d/b/a Dependable Tile Company, Sacra-
mento, California, its officers, agents, successors,
and assigns, shall pay to Richard Bertilson $678.02
and to David 'Hill $1117.84 with interest to be
computed in the manner prescribed in New Hori-
zons for the Retarded6 less withholdings for state
and Federal income taxes. The Board further
orders that the Respondent shall pay to the North-
ern California Tile Industry Welfare and Security
Fund the sum of $33,939.77 plus interest and penal-
ty payments assessed in accord with Merryweather
Optical Co., 240 NLRB 1213 (1979), on all unpaid
contributions.
4 282 NLRB 1375 (1987)
5 [See order granting motion to modify backpay period in 292 NLRB
No. 116]
6 In accordance with our decision in New Horizons for the Retarded,
283 NLRB 1173 (1987), Interest on and after January 1, 1987, shall be
computed at the "short-term Federal rate" for the underpayment of taxes
as set out in the 1986 amendment to 26 U.S.C. § 6621. Interest on
amounts accrued prior to January 1, 1987 (the effective date of the 1986
amendment to 26 U.S C. § 6621), shall be computed in accordance with
Florida Steel Corp., 231 NLRB 651 (1977).
Andrew H. Baker, Esq., for the General Counsel.
Ronald W. Brown, Esq. (Thierman, Simpson, & Cook), of
Sacramento, California, for Respondent.
Diane Sidd-Champion, Esq. (McCarthy, Johnson & Miller),
of San Francisco, California, for the Charging Party.
SUPPLEMENTAL DECISION
STATEMENT OF THE CASE
WILLIAM L. SCHMIDT, Administrative Law Judge. A
dispute exists in compliance stage of this proceeding con-
cerning the amount of backpay due employees and the
amount of reimbursement due certain trust funds. 1 To re-
solve that dispute, the Acting Regional Director of
NLRB Region 20 issued a bacicpay specification and
notice of hearing on 30 May 1986. Respondent filed a
timely answer disputing certain aspects of the specifica-
tion.
Subsequently, on 5 September 1986, the Regional Di-
rector for NLRB Region 20 issued an amended backpay
specification which, in essence, altered the premises on
which backpay and trust fund reimbursements were cal-
culated for the period following 30 September 1983. Re-
1 The underlying case on the merits is reported at 268 NLRB 1147
(1984) enfd. as modified 774 F.2d 1376 (9th Cir. 1985).
spondent filed a timely amended answer renewing its
original position and denying its liability on the revised
premise alleged by the Regional Director.
I heard this matter on 1 and 10 October 1986 at Sacra-
mento, California. At the outset of the hearing, the Gen-
eral Counsel filed a written motion to amend the amend-
ed specification. In essence, the General Counsel's
motion was designed to restore the theory of the original
specification and to continue the specification's allega-
tions through 14 August 1986. Respondent supported the
motion' but the Union vigorously opposed the General
Counsel's amendment. After extensive argument, I grant-
ed the General Connsel's motion with leave to the Union
to adduce evidence supporting its theory. See Plasterers
Local 5 (John Phillips), unofficially reported at 62 LRRM
1641 (1966). The Respondent promptly answered orally,
admitting certain aspects of the twice amended specifica-
tion and denying others.
On the basis of the entire record, my observation of
the witnesses as they testified, and the posthearing briefs
filed on behalf of each party, 2 I make the following
FINDINGS OF FACT
I. THE MAKE-WHOLE REMEDY
A. Pleadings
The Board's order in the underlying case requires Re-
spondent to give effect to the 1981-1983 collective-bar-
gaining agreement between the Union and the Associat-
ed Tile Contractors of Northern California (Association)
and to make its employees and trust funds established for
their benefit whole for losses suffered by Respondent's
failure to give effect to that agreement. The specification
claims Respondent owes employees the difference be-
tween the hourly rates specified in the 1981-1983 agree-
ment and the rate paid for all hours worked from 1 April
1981 to present. The specification also alleges Respond-
ent owes the trust funds the full amounts of the contribu-
tions specified in the contract in the 1981-1983 agree-
ment for the period 1 April 1981 to present. The basis
for the specification's theory at the hearing is that Re-
spondent and the Union have not negotiated a successor
agreement to the one in effect from 1 April 1981 through
30 September 1983 nor reached an impasse attempting to
do so.
Respondent concedes the accuracy of the rates and
computations the General Counsel has utilized in deter-
2 On 20 February 1987 the Board issued a decision in John Deklewa &
Sons, 282 NLRB 1375. The Board held there that an 8(1) agreement could
not be repudiated during its term but, in fiiture and all pending cases,
unions signatory to 8(1) agreements would enjoy no presumption of ma-
jority status at their conclusion. Accordingly, the Board noted that either
party was free to repudiate an 8(1) relationship on the termination of any
extant 8(1) agreement. In fashionmg the make-whole remedy in Deklewa
the Board limited the reimbursement remedy to only amounts due
through the term of the agreement in effect at the time the employer had
repudiated the 8(f) relationship with its employees' representative. In
view of the potential impact of Deklewa on the outcome here, I notified
the parties on 10 March 1987 that any supplement to their posthearing
briefs dealing with the impact of Deklewa would be considered if re-
ceived by the close of business on 23 March. All parties filed supplemen-
tal briefs.
712
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
mining the backpay and trust fund reimbursements due
under the specification's assumptions. However, Re-
spondent claims no backpay or trust fund reimbursement
is due after the 1981-1983 contract expired on 30 Sep-
tember 1983 because it timely withdrew from the Asso-
ciation and was thereafter under no statutory duty to
bargain or maintain the status quo under the expired
1981-1983 agreement because: (1) the Union lacked ma-
jority support in the single-employer unit; (2) the sepa-
rate unit was an inappropriate single-employee unit as of
30 September 1983; (3) the Union refused to bargain with
the Respondent for a single-employer unit after 30 Sep-
tember 1983; and (4) the Union abandoned the unit after
the expiration of the 1981-1983 agreement. Alternatively,
Respondent contends the Union waived its right to bar-
gain over the trust funds and, as the Union failed to give
Respondent notice that it ended the 1981 strike, all em-
ployees employed after that strike commenced were re-
placement workers for whom Respondent was free to set
wages and benefits unilaterally. Respondent also alleges
that the amounts due the trust funds were the subject of
a separate lawsuit resulting in a judgment in favor of the
trust funds.
The Union argues that Respondent still has not effec-
tively withdrawn from the Association and, hence, the
specification as amended at the hearing erroneously cal-
culates the wages and trust fund reimbursements after 30
September 1983 on the basis of the 1981-1983 agreement
rather than each successor agreement.
B. Evidence
Respondent joined the Association in 1979 and became
bound by the then existing agreement which, by its
terms, was effective through 31 March 1981. Soon after
it joined the Association, Jack Hartman, Respondent's
owner, became a member of the Association's negotiat-
ing committee and actively participated in early negotiat-
ing sessions held in April, July, November, and mid-De-
cember 1980. Negotiations substantially in advance of the
termination of these parties' agreements is common.
In late December 1980, Hartman notified the Union in
writing that he was withdrawing from the Association
effective 31 March 1981 and would only be bound in the
future by an individually signed contract. Others did
likewise apparently at the Association's suggestion but
some subsequently reactivated their Association member-
ship. Hartman paid no Association dues after 31 March
1981 and there is no evidence Hartman participated in
Association affairs of any sort after that date. On the
contrary, Respondent defended this action and instituted
an RM petition in an unsuccessful effort to extricate itself
from the multiemployer unit as of 31 March 1981. A
three-member Board panel with Chairman Dotson dis-
senting found in this proceeding that Hartman acted in-
consistent with the late-December 1980 withdrawal
notice principally by his participation in negotiating ses-
sions with the Union as a member of the Association's
negotiating committee between 20 January and 31 March
1981. Accordingly, the panel majority concluded that
Respondent "nullified its withdrawal from multi-employ-
er bargaining." The Ninth Circuit agreed and enforced
the Board's order with only a minor modification.
Because no new agreement had been reached on 31
March 1981, the Union called on employees in the Asso-
ciation-wide unit to commence striking their employers
on 1 April 1980. As of that date, Respondent employed
three unit employees. Hartman testified that one employ-
ee "quit" the morning the strike commenced and the
other two left without working that day. On approxi-
mately 7 April 1981 the latter two employees returned to
work. Later, in informal discussions with these two em-
ployees, Hartman learned that they no longer supported
the Union.
In the meantime, the Association executed an interim
agreement with the Union on 7 April 1981. At that time
the Union was informed Hartman was no longer an As-
sociation member. On the execution of the interim agree-
ment the Union ceased striking Association employers.
Hartman, however, refused the Union's request to exe-
cute the interim agreement, altered Respondent's wage
scale, and ceased making trust fund payments as of 1
April 1981. The Union continued its strike against Re-
spondent for an undisclosed period. Indeed, no specific
notice was ever provided to Hartman that the strike had
been concluded.
In May 1981 the Association furnished the Union with
a written list of contractors who had resigned. Respond-
ent was listed. The Union was also told by Association
representatives, however, that many contractors would
rejoin the Association when a final agreement was
reached.
The Association and the Union executed a final agree-
ment known as the "yellow book" in November 1981
which by its terms was effective from 1 April 1981 to 30
September 1983. Respondent never executed nor abided
by the terms of the yellow book agreement. Respond-
ent's refusal to execute the yellow book agreement led
the Union to tile the charges in this case.
About 26 July 1983 the Association notified the Union
of its desire to modify the yellow book agreement. Obvi-
ously that came as no surprise to the Union as two mem-
bers of the Association's negotiating committee had met
on 8 July 1983 with union representatives to discuss the
forthcoming negotiations for a successor agreement.3
Specific areas of the existing agreement in need of modi-
fication were raised by both sides. There is no evidence
that Respondent knew of the arrangements for the 8 July
meeting or that the Association gave any notice to its
members concerning the meeting. The Union believes
that the 8 July meeting signaled the start of negotiations
for the purposes of preventing any employer withdraw-
als from the Association in 1983. Its principal representa-
tive, however, acknowledged that the Association repre-
sentatives insisted on labeling the 8 July session an "in-
formal" meeting.
By letter dated 11 July 1983 Respondent sent a letter
to the Union calling attention to the then pending litiga-
tion in this case and stating: -
Nonetheless, if the National Labor Relations
Board or a court of competent jurisdiction should
3 The two Association representatives were officers of the two largest
contractors in the Association.
DEPENDABLE TILE CO.
713
determine that our client was bound to [the 1981-
1983] agreement, this should serve as notice of ter-
mination pursuant to its terms.
This shall also serve to reiterate our client's with-
drawal of any bargaining authority it may have
ever delegated to any multi-employer association. If
any negotiations take place with your labor organi-
zation, it will only be on a single employer basis.
The Union's counsel responded by a letter dated 22
July that the "purported notice of termination and with-
drawal contained therein are without effect and will not
be accepted by the Union." Apart from the litigation,
nothing further happened between the parties until July
1986 when the Employer offered to negotiate with the
Union for a new agreement on a single-employer basis.
In the meantime, the Union negotiated a series of succes-
sor agreements with the Association effective for the pe-
riods 1 October 1983 to 30 September 1984; 1 October
1984 to 30 September 1985; and 1 October 1985 to 31
March 1988.
On 30 June 1983 an action was commenced against
Respondent by the trust funds. The complaint in that
case alleged Respondent owed the funds $894.41 for Jan-
uary 1981 (pursuant to the 1979-1981 agreement) and an
unspecified sum under the 1981-1983 agreement. That
case resulted in a consent judgment entered in favor of
the trust funds. Subsequently, the trust funds executed
against Respondent collecting $1,699.84 less marshal's
costs of $168.60, or a net amount of $1,531.24.
C. Argument
To achieve full reimbursement here, the General
Counsel's specification and subsequent arguments ad-
vance the following theory: 1) the backpay period began
1 April 1981 and continues to the present; 2) for the
period from 1 April 1983 through 30 September 1983
Respondent was bound specifically to the 1981-1983
agreement so it is required to reimburse on the basis of
the agreement itself; and 3) for the period following 30
September 1983 Respondent is obliged to reimburse on
the basis of the wage rates and trust fund contributions
contained in the 1981-1983 agreement as Respondent and
the Union never bargained a successor agreement, nor
reached an impasse attempting to do so, and Respondent
is required by operation of law to continue the 1981-
1983 agreement's wage rates and trust contributions in
effect.4 In the General Counsel's view the Respondent's
11 July 1983 letter "constituted a timely and effective
withdrawal from multi-employer bargaining and the
multi-employer agreement under the terms of the Agree-
ment and under Retail Associates, Inc., 120 NLRB 388
(1958)."
The General Counsel believes that Deklewa has no
impact whatsoever on this case. In this connection, the
General Counsel notes that the Ninth Circuit has already
entered a final order under Section 10(e) enforcing the
4 As the specification's approach is divided into two separate penods
in this manner, the discussion below will refer to the "first" penod-1
April 1981 through 30 September 1983—and the "second" penod—all
time since 30 September 1983
Board's Order, as modified. Accordingly, the General
Counsel urges that I "give full force and effect to the
Court of Appeals Order in this case."
The Union differs with the General Counsel's assess-
ment only about the effect of the 11 July letter and the
rationale concerning Deklewa's inapplicability. It contests
the General Counsel's conclusion that the 11 July 1983
letter was a timely and effective withdrawal from multi-
employer bargaining because bargaining had commenced
with the 8 July 1983 meeting between Association and
Union negotiators. For this reason the Union argues that
Respondent's 11 July letter was untimely. And as Re-
spondent did not subsequently attempt to withdraw from
multiemployer bargaining, the Union claims that reim-
bursement in the second period should be based on each
successive Association-Union agreement rather than the
1981-1983 wage levels and trust contributions. Consistent
with its belief that Respondent never timely withdrew
from multiemployer bargaining, the Union argues that
Deklewa does not apply here because Respondent was
bound to the successive agreements in the second period
on the basis of its inclusion in the multiemployer bargain-
ing unit rather than on any previous 8(f) relationship.5
Respondent's dispute with the General Counsel con-
cerns the length of the backpay period. First, Respond-
ent argues that it has no liability at all because the
Union's April 1981 strike against it has never ceased. Ac-
cordingly, Respondent urges that I find that all of its
workers since 1 April 1981 are actually striker replace-
ments and that it is entitled to unilaterally establish their
wages and benefits. Absent such findings, Respondent
next proposes that its backpay liability be terminated
either on 22 July 1983 or 30 September 1983. Respond-
ent believes that the Union's 22 July 1983 letter is tanta-
mount to a waiver of its right to bargain concerning
wages and trust fund contributions so its liability should
cease at that point. Alternatively Respondent claims the
Union's failure to bargain after 11 July 1983 suggests that
it abandoned the unit. In any event, Respondent is con-
vinced its liability should 'terminate as of 30 September
1983 as it had no duty to recognize the Union or main-
tain the status quo thereafter because: (1) it rebutted the
Union's presumed postagreement majority status; and (2)
the unit ceased to be appropriate between June 1983 and
January 1986 as only one employee was employed. Re-
gardless of the foregoing, Respondent seeks an offset for
the amount collected pursuant to the trust funds lawsuit.
As for Deklewa, Respondent argues that at the very
least its liability should cease with the termination of the
1981-1983 agreement because no mandatory bargaining
obligation would exist after that period under the
Deklewa decision. However, Respondent further asserts
that this case should be reconsidered ab initio in light of
the Deklewa decision and the complaint should be dis-
5 The Union concedes only for argument purposes that its relationship
with Respondent was pursuant to Sec. 8(f); it does not concede in fact
that its agreements with the Respondent were ever prehire agreements
By contrast, Respondent asserts that neither an election nor a card check
has ever occurred to establish the Union's majonty status under Sec 9
In light of my conclusion below, I deem It unnecessary to reopen the
heanng to resolve this factual dispute
714
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
missed. As I lack such authority, this latter argument is
not considered.
D. Conclusions
In a backpay proceeding the burden is on the General
Counsel to establish the gross backpay due by means of a
reasonable formula designed to approximate what em-
ployees would have earned absent the unfair labor prac-
tice. NLRB v. Pilot Freight Carriers, 604 F.2d 375 (5th
Cir. 1979); NLRB v. Brown & Root, Inc., 311 F.2d 447
(8th Cir. 1963). Uncertainties in fixing the backpay due
are resolved against the wrongdoer. NLRB v. Miami
Coca-Cola Bottling Co., 360 F.2d 569 (5th Ctr. 1966).
Here the order requires Respondent to "make whole
its employees and union trust funds for losses, if any,
they have suffered as a result of [Respondent's] refusal to
abide by the [Association's] agreement, with interest.
. . ." The formula in this case is for all intents and pur-
poses dictated by the order; Respondent is required to
reimburse the employees and the trust funds for the dif-
ferences between what they actually received and what
they would have received under the applicable agree-
ment from 1 April 1981 forward to the point when Re-
spondent was no longer obliged to give effect to the
1981-1983 agreement or its successors. Accordingly, I
find the reimbursement theory employed by the General
Counsel here is a justifiable formula.
.
The General Counsel's theory for the first period as-
sumes that there was an agreement in effect between Re-
spondent and the Union for the period 1 April 1981
through 30 September 1983. The specification theory for
the second period is premised on the z existence of a re-
buttable presumption of union majority status requiring
Respondent, in general, to maintain the terms and condi-
tions of employment in effect until either a new agree-
ment was bargained, the Union waived its right to bar-
gain, or a bargaining impasse was reached. Crest Floors &
Plastics, 274 NLRB 1230 (1985).
If it is assumed that the Respondent-Union relation-
ship existed pursuant to Section 8(f), Deklewa seemingly
alters the foundation of the General Counsel's theory for
the second portion of the backpay period because that
case holds that a union enjoys no majority presumption
at the end of an 8(1) agreement. Rather than requiring a
construction industry employer to maintain the status
quo, Deklewa permits the total repudiation of the bar-
gaining relationship at the conclusion of an 8(1) agree-
ment if the Union has not been certified or voluntarily
recognized. But for the consideration described below, I
agree with Respondent that Deklewa would preclude re-
imbursement for the second period.
Although the Board chose to announce that Deklewa
would apply to all pending cases at whatever stage, I
find it impossible to reconcile that instruction with the
specific order here. In addition to requiring Respondent
to make its employees and the trust funds whole, the
order also requires Respondent to bargain, on request,
with the Union. Obviously, as the order in this case pre-
dated Deklewa, there was an underlying assumption that
Respondent's bargaining obligation was not terminable
with the 1981-1983 agreement. The impact of applying
Deklewa with full force here would, in effect, void that
portion of the order requiring Respondent to bargain
with the Union. Presumably too, Deklewa would not re-
quire the restoration of the status quo ante, but the spe-
cific order seemingly requires such for meaningful bar-
gaining. Allied Products, 218 NLRB 1146 (1975). There-
fore, it would be incongruous to hold that Respondent
has no postagreement liability because it had no duty to
bargain with the Union on the basis of Deklewa although,
at the same time, there is an outstanding order enforced
by the Ninth Circuit requiring Respondent to bargain.
Accordingly, as the order here imposes a postagreement
bargaining obligation as a part of an overall scheme to
effectuate the purposes of the Act, I find that the court-
imposed obligation justifies the General Counsel's reim-
bursement theory for the second portion of the backpay
period.
The Union's claim that the reimbursement for the
second portion of the backpay period should be based on
each successive agreement lacks merit. Even if it is as-
sumed that Respondent had not previously withdrawn
from the Association, I am satisfied that Respondent's 11
July 1983 withdrawal was timely. Although it is true
that the 8 July 1983 meeting between representatives of
the Association and the Union is, as the Union claims,
vested with certain characteristics of collective bargain-
ing, this meeting occurred before the agreement was re-
opened formally for modification. The findings in the un-
derlying case suggest that the practice of engaging in
early talks leading to contract modifications was not un-
usual between the Association and the Union. In addi-
tion, Respondent and the Association seemingly agreed
long ago that Respondent had severed their connection.
Hence, it is unlikely that the Association or its represent-
atives would haNw felt compelled to keep Respondent
abreast of developments concerning forthcoming bar-
gaining arrangements in order to permit a timely with-
drawal. The Union on the other hand was aware of Re-
spondent's claim that it was not a part of the multiem-
ployer unit and was contesting that claim. Obviously,
Respondent was in a perilous position to determine when
the Association and the Union—who had a history of en-
gaging in exploratory talks long in advance of contract
termination—were actually preparing to begin bargain-
ing. Moreover, there is plainly no agreement between the
Association and the Union that formal bargaining had
begun as of 8 July. Equally as plain is the fact that the
vast bulk of bargaining commenced in August after the
Association had reopened the agreement.6
Based on the above circumstances, I conclude that it
would be most inequitable to find that Respondent's 11
July letter constitutes an untimely withdrawal under the
unusual circumstances present here. The rules in Retail
Associates and its progeny were designed to stabilize the
bargaining process by preventing employers bound to
group bargaining from—as it is often put—having "two
bites at the apple." This is not one of those cases. Al-
though Respondent was not successful in extricating
itself from the legal consequences of the 1981 bargaining,
6 The Union also claims to have sent a reopening letter but its repre-
sentative was unable to say when the Union had done so
DEPENDABLE TILE CO.
715
its efforts to do so produced a situation that left it in the
position of an outsider to the affairs of the Association
and the Union by mid-1983. Consequently, even if it is
assumed that the 8 July meeting represents the start of
the bargaining process, Respondent acted again to extri-
cate itself from group bargaining so soon thereafter as to
cause no known disruption. Accordingly, I find that Re-
spondent was not bound to Association-Union agree-
ments following the expiration of the 1981-1983 agree-
ment.
With respect to the Respondent's arguments, it is
plainly entitled to an offset for the net amount that the
trust funds have collected by executing on the consent
judgment. To hold otherwise would result in an imper-
missible double reimbursement. See Story Oldsmobile, 145
NLRB 1647, 1652 (1964) (the vacation pay issue). How-
ever, as it appears that one basis for that lawsuit was to
collect $894.41 due under the 1979-1981 agreement that
is not involved here I have credited Respondent here
with $636.83, the difference between the net amount col-
lected by execution ($1531.24) and the amount apparent-
ly applicable to the earlier agreement ($894.41). For pur-
poses of computing interest and penalties this sum shall
be allocated to the earliest period.
Respondent's remaining arguments lack merit. As to
Respondent's claim that the Union's majority standing
was rebutted on the basis of informal remarks made to
Hartman by employees at some unspecified time follow-
ing the l981 strike, I find in view of the unremedied
unfair labor practices that Respondent is not entitled to
interpose that defense to' its liability here. It is well estab-
lished that a reasonable doubt as to a union's continued
majority standing must be asserted in good faith and in a
context free of unlawful employer activity causing disaf-
fection from the union. NLRB v. Sky Wolf Sales, 470
F.2d 827 (9th Cir. 1972). In circumstances such as exist
here Respondent has the added burden of showing that
its unlawful conduct did not contribute to the disaffec-
tion. Warehouse Markets, 216 NLRB 216 (1975). By
showing only that some disaffection may have occurred,
Respondent has not met that burden. This is especially
true where, as here, the findings establish that Respond-
ent unilaterally altered its terms of employment follow-
ing the expiration of its agreement with the Union on 31
March 1981 and refused to give effect to the bargain the
Union struck with the Association on or about 7 April
1981. Clearly, it is reasonable to presume that such con-
duct wonld demonstrate to employees the Union's inabil-
ity to serve them in the same manner as other unit em-
ployees employed at other shops and that this circum-
stance could lead to employee dissatisfaction with their
representation on which Respondent now relies. Without
an affirmative showing that the employee disaffection oc-
curred for some reason unrelated to its own unlawful
conduct accords the wrongdoer with a potential benefit
flowing directly from its unlawful conduct. For this
reason, I reject Respondent's claim that it has sufficiently
rebutted the Union's majority standing so as to terminate
its liability on the conclusion of the 1981-1983 agree-
ment.
Respondent's claim that it has no liability here because
those employees it employed following the commence-
ment of the April 1981 strike were all strike replace-
ments for whom it was legally entitled to unilaterally es-
tablish employment conditions is also rejected. Those
employees for whom backpay is claimed immediately
following the strike were employees who struck the Re-
spondent from the outset of the strike and subsequently
returned to work. Respondent's claim that they were re-
placements for themselves is indeed novel. But the argu-
ment fails because it ignores the fundamental conclusion
reached in this case that Respondent was bound to the
1981-1983 agreement at the same time and in the same
manner as all other Association employers. That agree-
ment would be applicable to even replacements so long
as they continued as unit employees. Accordingly, I
reject Respondent's claim that it was entitled to unilater-
ally establish employment conditions for returning strik-
ers or any other unit employees.
The Union has neither abandoned this unit nor waived
its right to bargain as Respondent claims. The Union's
lengthy pursuit of this case fully refutes the abandonment
claim. And clearly the Respondent's 11 July 1983 letter
provides no basis for obliging the Union to act at the risk
of waiving its right to bargain as it simply is not a
straightforward request to bargain. Although the Re-
spondenes July 1986 letter does provide the Union with
Written demands for changes Respondent would incorpo-
rate in an agreement, the fact that Respondent has yet to
restore the status quo ante precludes a basis on which
meaningful bargaining can occur. Allied Products, supra.
Accordingly, I fmd that the Union has not abandoned
nor waived its right to bargain in a manner or context
which would terminate Respondent's liability here.
Finally, Respondent's claim that its liability should be
extinguished following the 1981-1983 agreement because
the unit was an inappropriate single employee unit be-
tween June 1983 and January 1986 is rejected. Respond-
ent's claim is misleading to a certain extent. Of course,
until the 1981-1983 agreement expired, the unit was a
multiemployer unit encompassing the employees of all
Association members including Respondent. From April
1981 to October 1983, three individuals were employed
by Respondent albeit not all at the same time but on a
sufficiently regular basis to establish a continuing interest
in unit conditions. From October 1983 to February 1985
only one employee was employed by Respondent but
that fact standing alone does not establish that this unit
had been permanently reduced to a single employee.
Indeed, the fact that Respondent employed five separate
individuals from February 1985 through 14 August 1986
suggests just the opposite.
The Board has long recognized that employment pat-
terns in the construction industry often involves periods
of diminished employment opportunity and consequently
special consideration must be given to that fact of life if
any employee interest in unit conditions is to be accord-
ed legal significance See, e.g., Daniel Construction Co,
133 NLRB 264 (1961). More recently the Board in its
Deklewa decision reiterated the special considerations ap-
plicable in this industry to insure full protection of con-
struction employees right to collective bargaining. John
Deklewa & Sons, 282 NLRB 1375 (1987). As Respond-
716
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
ent's employment pattern discloses periods when it em-
ployed two or more individuals interspered with periods
when it employed a single—but not always the same—
employee, I find the evidence insufficient to establish
that Respondent's unit has at any time been permanently
reduced to a single employee. Finger Lakes Plumbing &
Heating Co., 253 NLRB 406 (1980). At the very least,
Respondent's employment pattern raises sufficient doubt
concerning this issue to warrant resolving the doubt
against Respondent. Accordingly, I cannot conclude that
it would be appropriate to terminate Respondent's liabil-
ity at any time during the backpay period here on the
ground that Respondent had no duty to bargain due to
an inappropriate single employee unit.
CONCLUSION OF LAW
On the basis of the foregoing and the entire record, I
conclude that Respondent's obligation under the Board's
Order as enforced by the Ninth Circuit will be dis-
charged by the payment of $678.02 to Richard Bertilson
and $1117.84 to David Hill plus accrued interest required
by law less withholdings for state and Federal income
taxes, and by the payment of $33,939.77 to the Northern
California Tile Industry Welfare and Security Fund plus
interest and penalty payments assessed in accord with
Mertyweather Optical Co., 240 NLRB 1213 (1979), on all
unpaid contributions and that Respondent's liability con-
tinues to accrue in the manner specified in the amended
backpay specification.
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