Kal Contracting Co , Inc

KAL CONTRACTING CO KAL Contracting Co , Inc and Local No 247, International Brotherhood of Teamsters, Chauf- feurs, Warehousemen and Helpers of America, AFL-CIO Cases 7-CA-25417(1) and 7-CA- 25417(2) February 17, 1989 SUPPLEMENTAL DECISION AND ORDER BY MEMBERS JOHANSEN, CRACRAFT, AND HIGGINS On June 30, 1987, the National Labor Relations Board issued a Decision and Order' in which the Board, inter alia, ordered the Respondent to make whole certain employees for any loss of pay suf- fered as a result of their unlawful terminations A controversy having arisen over the amount of backpay due from the Respondent under the Board's Order, the Regional Director for Region 7, on August 1, 1988, issued a backpay specification and notice of hearing, alleging the amount of back pay due from the Respondent and notifying the Respondent that it should file a timely answer com- plying with the Board's Rules and Regulations The Respondent did not file an answer to the backpay specification On August 25, 1988, the Acting Regional Director informed counsel for the Respondent of the need to file an answer By a letter dated September 12, 1988, the Respondent s counsel advised the Acting Regional Director that the bankruptcy court had converted the Respond ent's bankruptcy case from a Chapter 11 to a Chap ter 7 case and that an interim trustee had been named By letter dated October 6, 1988, the bank- ruptcy trustee wrote to the Regional Director and informed him that he was in receipt of the backpay specification By letter dated October 11, 1988 the trustee informed counsel for the General Counsel that he did not intend to file an answer to the back pay specification On November 1, 1988, the General Counsel filed a Motion to Transfer Case to the Board and for Default Judgment On November 9, 1988, the Board issued an order transferring the proceeding to the Board and a Notice to Show Cause why the motion should not be granted The Respondent did not file a response The allegations in the motion are therefore undisputed The National Labor Relations Board has delegat ed its authority in this proceeding to a three member panel ' 284 NLRB 772 1233 Ruling on the Motion for Default Judgment Section 102 56 of the Board s Rules and Regula tions2 provides that if an answer is not filed within 21 days from the service of the backpay specifica tion, the Board may find the specification to be true and enter an appropriate order Not only did the backpay specification notify the Respondent of the requirement of filing an answer, but also, the Acting Regional Attorney notified the Respondent of its failure to file an answer and that the General Counsel intended to seek default judg ment if no answer were filed Thus, despite having been advised of the filing requirements, the Respondent has not filed an answer nor offered any explanation for its failure to do so In accordance with the rules set forth above, the allegations in the backpay specification are deemed to be admitted as true and the Board so finds Accordingly, the Board grants the Motion for Default Judgment and concludes that the amount due each of the employees is as stated in the back pay specification The Board orders that payment be made by the Respondent as set forth in the backpay specification ORDER The National Labor Relations Board orders that the Respondent, KAL Contracting Co, Inc, De troit, Michigan, its officers, agents, successors, and assigns, shall make whole the employees named below by payment to them of the amounts follow- ing their names, plus interest accrued to the date of payment to be computed as prescribed in New Ho- rizons for the Retarded,3 less tax withholdings re quired by Federal and state laws Robert Johnson $3,292 17 Paul Thompson 3 292 17 Rennie Sims 3,292 17 Merle May 3,628 20 2 Formerly Sec 102 54 The Board amended its rules governing pro ceedings concerning compliance with Agency orders effective November 13 1988 The substance of former Secs 102 54 and 102 55 has been incor porated into Sec 102 56 as revised and Sec 102 56 with some modifica tion has become the new Sec 102 57 while the substance of former Sec 102 57 has become par (c) of the new Sec 102 55 in the revised rules 3 283 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 US 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) 292 NLRB No 135