SK USA SHIRTS, INC.

361 NLRB No. 70 NOTICE: This opinion is subject to formal revision before publication in the bound volumes of NLRB decisions. Readers are requested to notify the Ex- ecutive Secretary, National Labor Relations Board, Washington, D.C. 20570, of any typographical or other formal errors so that corrections can be included in the bound volumes. SK USA Shirts, Inc. and Local 947, United Service Workers Union, International Union of Jour- neymen and Allied Trades. Case 22–CA–122319 October 21, 2014 DECISION AND ORDER BY MEMBERS HIROZAWA, JOHNSON, AND SCHIFFER The General Counsel seeks a default judgment in this case on the ground that the Respondent has failed to file an answer to the complaint. Upon a charge filed by Lo- cal 947, United Service Workers Union, International Union of Journeymen and Allied Trades (the Union) on February 10, 2014, the General Counsel issued the com- plaint on April 17, 2014, against SK USA Shirts, Inc., the Respondent, alleging that it has violated Section 8(a)(5) and (1) of the Act. The Respondent failed to file an answer. On August 13, 2014, the General Counsel filed a Mo- tion for Default Judgment with the Board. On August 14, 2014, the Board issued an order transferring the pro- ceeding to the Board and a Notice to Show Cause why the motion should not be granted. The Respondent filed no response. The allegations in the motion are therefore undisputed. Ruling on Motion for Default Judgment Section 102.20 of the Board’s Rules and Regulations provides that the allegations in a complaint shall be deemed admitted if an answer is not filed within 14 days from service of the complaint, unless good cause is shown. In addition, the complaint affirmatively stated that unless an answer was received by May 1, 2014, the Board may find, pursuant to a motion for default judg- ment, that the allegations in the complaint are true. Fur- ther, the undisputed allegations in the General Counsel’s motion disclose that the Region, by letter dated May 27, 2014, notified the Respondent that unless an answer was received by June 6, 2014, a motion for default judgment would be filed. Nevertheless, the Respondent failed to file an answer. In the absence of good cause being shown for the fail- ure to file an answer, we deem the allegations in the complaint to be admitted as true, and we grant the Gen- eral Counsel’s Motion for Default Judgment. On the entire record, the Board makes the following FINDINGS OF FACT I. JURISDICTION At all material times, the Respondent has been a cor- poration with an office and a place of business in Gar- field, New Jersey, and has been engaged in the operation of a commercial laundry. During the 12 months preced- ing issuance of the complaint, the Respondent, in con- ducting its business operations described above, pur- chased and received at its Garfield, New Jersey facility, goods valued in excess of $50,000 directly from points outside the State of New Jersey. We find that the Respondent is an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act and that the Union is a labor organization within the meaning of Section 2(5) of the Act. II. ALLEGED UNFAIR LABOR PRACTICES The following employees (the unit) constitute a unit appropriate for the purpose of collective bargaining with- in the meaning of Section 9(b) of the Act: All production and maintenance employees employed by the Respondent at its Garfield, New Jersey facility, except watchmen, guards, and supervisors as defined in the National Labor Relations Act. Since about 2005, and at all material times, the Re- spondent has recognized the Union as the exclusive col- lective-bargaining representative of the unit. This recog- nition has been embodied in a collective-bargaining agreement effective from June 1, 2013, to May 31, 2016 (the 2013–2016 agreement). At all times since about 2005, based on Section 9(a) of the Act, the Union has been the exclusive collective-bargaining representative of the unit. Since about November 1, 2013, the Respondent has failed to implement a wage increase of 25 cents per hour for all unit employees as required by Article XVIII of the 2013–2016 agreement. The subject set forth in the paragraph above relates to wages, hours, and other terms and conditions of em- ployment of the unit and is a mandatory subject for the purposes of collective bargaining. The Respondent en- gaged in the conduct described above without the Un- ion’s consent. CONCLUSION OF LAW By the conduct described above, the Respondent has been failing and refusing to bargain collectively and in good faith with the exclusive collective-bargaining repre- sentative of its employees within the meaning of Section 8(d) of the Act, in violation of Section 8(a)(5) and (1) of DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 2 the Act. The Respondent’s unfair labor practices affect commerce within the meaning of Section 2(6) and (7) of the Act. REMEDY Having found that the Respondent has engaged in cer- tain unfair labor practices, we shall order it to cease and desist and to take certain affirmative action designed to effectuate the policies of the Act. Specifically, having found that the Respondent has violated Section 8(a)(5) and (1) by failing, since about November 1, 2013, to im- plement a wage increase of 25 cents per hour for all unit employees, as required by Article XVIII of the 2013– 2016 agreement, we shall order the Respondent to com- ply with the 2013–2016 agreement and to make the unit employees whole for any losses suffered as a result of the Respondent’s unlawful conduct by implementing the contractual wage increase and by paying them the wage increase retroactive to November 1, 2013. Backpay shall be computed in accordance with Ogle Protection Service, 183 NLRB 682, 683 (1970), enfd. 444 F.2d 502 (6th Cir. 1971), with interest as prescribed in New Horizons for the Retarded, 283 NLRB 1173 (1987), compounded dai- ly as prescribed in Kentucky River Medical Center, 356 NLRB No. 8 (2010). Additionally, we shall order the Respondent to com- pensate the unit employees for the adverse tax conse- quences, if any, of receiving lump-sum backpay awards and to file a report with the Social Security Administra- tion allocating the backpay awards to the appropriate calendar quarters for each employee. Don Chavas, LLC d/b/a Tortillas Don Chavas, 361 NLRB No. 10 (2014). ORDER The National Labor Relations Board orders that the Respondent, SK USA Shirts, Inc., Garfield, New Jersey, its officers, agents, successors, and assigns, shall 1. Cease and desist from (a) Failing and refusing to bargain collectively and in good faith with Local 947, United Service Workers Un- ion, International Union of Journeymen and Allied Trades as the exclusive collective-bargaining representa- tive of the unit employees by failing, since about No- vember 1, 2013, to implement a wage increase of 25 cents per hour for all unit employees as required by Arti- cle XVIII of the parties’ 2013–2016 collective- bargaining agreement. The bargaining unit is: All production and maintenance employees employed by the Respondent at its Garfield, New Jersey facility, except watchmen, guards, and supervisors as defined in the National Labor Relations Act. (b) 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) Comply with the 2013–2016 agreement by imple- menting the wage increase of 25 cents per hour for all unit employees as required by Article XVIII of the 2013– 2016 agreement. (b) Make whole the unit employees by paying them retroactively the contractually-required wage increase that has not been paid to them since about November 1, 2013, with interest, as set forth in the remedy section of this decision. (c) Compensate the unit employees for the adverse tax consequences, if any, of receiving lump-sum backpay awards, in the manner set forth in the remedy section of this decision, and file a report with the Social Security Administration allocating the backpay awards to the ap- propriate calendar quarters for each employee. (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 rec- ords and reports, and all other records including an elec- tronic copy of such records if stored in electronic form, necessary to analyze the amount of backpay due under the terms of this Order. (e) Within 14 days after service by the Region, post at its facility in Garfield, New Jersey, copies of the attached notice marked “Appendix.”1 Copies of the notice, on forms provided by the Regional Director for Region 22, 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. In addition to physical posting of paper notices, notices shall be distributed electronically, such as by email, posting on an intranet or an internet site, and/or other electronic means, if the Respondent custom- arily communicates with its employees by such means. Reasonable steps shall be taken by the Respondent to ensure that the notices are not altered, defaced, or cov- ered by any other material. If the Respondent has gone out of business or closed the facility involved in these proceedings, the Respondent shall duplicate and mail, at 1 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.” SK USA SHIRTS, INC. 3 its own expense, a copy of the notice to all current em- ployees and former employees employed by the Re- spondent at any time since November 1, 2013. (f) Within 21 days after service by the Region, file with the Regional Director for Region 22 a sworn certifi- cation of a responsible official on a form provided by the Region attesting to the steps that the Respondent has taken to comply. Dated, Washington, D.C. October 21, 2014 Kent Y. Hirozawa, Member Harry I. Johnson, III, Member Nancy Schiffer, Member (SEAL) NATIONAL LABOR RELATIONS BOARD 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 fail and refuse to bargain collectively and in good faith with Local 947, United Service Work- ers Union, International Union of Journeymen and Allied Trades (the Union) as the exclusive collective-bargaining representative of our unit employees by failing to imple- ment a wage increase of 25 cents per hour for all unit employees as required by Article XVIII of our 2013– 2016 collective-bargaining agreement. The bargaining unit is: All production and maintenance employees employed by us at our Garfield, New Jersey facility, except watchmen, guards, and supervisors as defined in the National Labor Relations Act. 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 comply with the terms and conditions of our 2013–2016 collective-bargaining agreement by imple- menting the wage increase of 25 cents per hour for all unit employees as required by Article XVIII of the agreement. WE WILL make whole our unit employees by paying them retroactively the contractually-required wage in- crease that has not been paid to them since about No- vember 1, 2013, with interest. WE WILL compensate our unit employees for the ad- verse tax consequences, if any, of receiving lump-sum backpay awards, and WE WILL file a report with the So- cial Security Administration allocating the backpay awards to the appropriate calendar quarters for each em- ployee. SK USA SHIRTS, INC. The Board’s decision can be found at www.nlrb.gov/case/22-CA-122319 or by using the QR code below. Alternatively, you can obtain a copy of the decision from the Executive Secretary, National Labor Relations Board, 1099 14th Street, N.W., Washington, D.C. 20570, or by calling (202) 273-1940.