370 NLRB No. 104
International Longshore & Warehouse Union (Pacific Crane Maintenance Company, Inc.)
370 NLRB No. 104
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.
International Longshore and Warehouse Union (Pa-
cific Crane Maintenance Company, Inc.) and In-
ternational Association of Machinists & Aero-
space Workers, AFL–CIO, District Lodge 190,
Local Lodge 1546, District Lodge 160. Case 32–
CB–005932
March 31, 2021
SUPPLEMENTAL DECISION AND ORDER
BY CHAIRMAN MCFERRAN AND MEMBERS KAPLAN
AND EMANUEL
On July 9, 2020, Administrative Law Judge Eleanor
Laws issued the attached supplemental decision. The
Charging Parties filed exceptions with supporting argu-
ment and the Respondent filed an answering brief. The
Respondent also filed cross-exceptions and a supporting
brief.1
The National Labor Relations Board has delegated its
authority in this proceeding to a three-member panel.2
The Board has considered the decision and the record in
light of the exceptions and briefs and has decided to affirm
1 By Order dated October 6, 2020, the Executive Secretary, by direc-
tion of the Board, granted the Charging Parties’ motion to strike the Re-
spondent’s exceptions as untimely, and denied the Charging Parties’ mo-
tion to strike the Respondent’s cross-exceptions.
Subsequently, on November 24, 2020, the Respondent filed a Notice
Re: Exceptions Briefing Complete asking the Board to take notice that
the issues had been fully briefed by the parties and were ready for adju-
dication by the Board. On December 7, 2020, the Charging Parties filed
a response asking the Board to either strike the Respondent’s cross-ex-
ceptions or promptly decide this case by affirming the judge and granting
the Charging Parties’ exceptions. The record and briefs in the instant
case adequately present the issues, facts, and positions of the parties, and
we find it unnecessary to take the requested administrative notice. Ad-
ditionally, in its October 6, 2020 Order, the Board already denied the
Charging Parties’ motion to strike the Respondent’s cross-exceptions.
2 Member Ring is recused and took no part in the consideration of
this case.
3 We reject the Respondent’s assertion that its due process rights were
violated when the judge allowed the General Counsel to make amend-
ments to the Compliance Specification during and after the hearing. Un-
der Sec. 102.55(c) of the Board’s Rules and Regulations, “After the hear-
ing opens, the specification may be amended upon leave of the Admin-
istrative Law Judge or the Board, upon good cause shown.” In allowing
the General Counsel’s amendments to the Compliance Specification, the
judge properly exercised discretion to find that the Respondent was put
on notice regarding the General Counsel’s intended changes, the delay
by the General Counsel was the result of an oversight, and all issues were
fully litigated by the parties.
4 In Sec. IV of her decision, the judge misquoted the Second
Amended Compliance Specification as stating that “the affected unit em-
ployees who are entitled to reimbursement are all present and former unit
employees who joined the Respondent Union on or since March 31,
2004.” (emphasis added). The correct date is March 31, 2005, which the
the judge’s rulings,3 findings,4 and conclusions5 and to
adopt the recommended Order.
ORDER
The National Labor Relations Board adopts the recom-
mended Order of the administrative law judge and orders
that the Respondent, International Longshore and Ware-
house Union, its officers, agents, and representatives, shall
make whole the following employees and former employ-
ees by paying them the following amounts (which total
$1,697,541.81), plus interest accrued to the date of pay-
ment as prescribed in New Horizons, 283 NLRB 1173
(1987), and Kentucky River Medical Center, 356 NLRB 6
(2010).
Employee Name
Grand Total
Alvarez, Manuel C
21,300.96
Amador, Jose
605.10
Ayala, Nelson A
22,970.84
Baldwin, John P
23,158.24
Bell, David B
4,178.80
Bennesen, Neil K
12,846.48
Boardman, David E
13,964.33
Byers, Nordan A
2,773.95
Castanho, Dominic J
605.10
judge otherwise used in the rest of the decision. We correct the judge’s
inadvertent error, which does not affect our decision.
5 We agree with the judge, for the reasons she states, that the General
Counsel’s proposed reimbursement periods and formulas for historical
employees (i.e., covered employees who had been employed by Pacific
Maritime Maintenance Company) and non-historical employees (i.e.,
employees who performed unit work after Pacific Crane Maintenance
Company took over operations on March 31, 2005) are reasonable. On
exceptions, the Charging Parties reassert the argument that employees
who worked in the bargaining unit for any period, including 1 day,
should be entitled to reimbursement. The judge rejected this argument
on procedural grounds, finding that the Charging Parties should have
raised it through an appeal to the General Counsel pursuant to Sec.
102.53 of the Board’s Rules. That section, however, relates to compli-
ance determinations, not compliance specifications, and therefore does
not apply here. Thus, the Board can consider the Charging Parties’ ar-
gument on the merits. Even so, we find that the argument fails on sub-
stantive grounds, as the Charging Parties have not adequately described
why their proposal would be more reasonable than the formula proposed
by the General Counsel and adopted by the judge.
The Charging Parties also argue on exceptions that the Board should
include a special remedy that precludes the Respondent from receiving
kickbacks or any of the reimbursed dues. The Charging Parties cite no
evidence or precedent in support of this remedy. Furthermore, a party
cannot seek to add, at the compliance stage, remedies that were not in-
cluded in the Board’s Order at the merits stage. Accordingly, we deny
the Charging Parties’ request.
The Respondent argues in its answering brief that the Board should
issue a finding that the Charging Parties are not aggrieved by the judge’s
decision. The Respondent cites no precedent in support of its argument,
and we are not aware of any. Accordingly, we decline to issue such a
finding.
2
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
Castillo, Randall J
15,318.30
Ceccarelli, Matthew C
302.55
Cheung, Jayson T
7,014.10
Costa, John L
22,408.24
da Silva, Stephen M
5,575.25
Dake, Kevin J
2,823.80
De Leon, Walter E
504.25
Dela Cruz, Isabelo O
23,358.24
Dimassimo, James J
1,411.90
Fairfield, Joe A
605.10
Gonzalez, Juan
1,890.00
Gonzalez, Juan B
1,026.706
Gouveia, Brian D
3,240.50
Grimsley, Charles F
22,310.92
Guevara, Juan M
22,055.84
Guevara, Robert
605.10
Haag, Kenneth P
2,017.00
Hernandez, Arthur V
22,307.36
Horton, George H
5,993.70
Juarez, Ruben
21,855.84
Kun, Brian M
605.10
Lau, Jack C
6,136.20
Le, Nhanh H
4,941.10
Letcher, Ron P
22,214.08
Lincoln, Charles F
2,695.80
Logie, Scott C
2,823.80
MacKenzie, Scott J
6,605.40
Martin, Robert J
21,012.69
Martin, Robert J, Jr.
1,919.60
Martinez, Anthony D
7,156.50
Maynard, Bryan R
2,624.40
McLeod, John N
2,823.80
McClean, John F
23,898.24
McIntosh, Glen T
21,855.84
Orellana, Alfredo E
21,855.84
Padilla, Hector A
23,848.24
Paredes, Francisco J
19,136.69
Parker, Howard L
5,035.70
Payne, Bobby R
22,960.94
Philpott, Doug E
22,792.74
Piazza, Michael E
2,374.00
Pierce, Glen A
23,083.24
Punla, Kenneth V
17,036.29
Quijano, Luis A
22,705.84
Robles, Jose G
21,905.84
Robles, Jose L
1,815.30
Rodrigues, Gary D
1,008.50
6
The judge erroneously listed $1,890.00 as the reimbursement
amount for Juan B. Gonzalez. However, the Second Amended Compli-
ance Specification shows $1,026.70 as the reimbursement amount for
Rohse, Gordon A
19,350.38
Sensabaugh, Thomas E
605.10
West, Clinton E
5,823.99
White, David S
1,815.30
Willis, Milton G
23,258.24
Wright, John C
2,823.80
Ahlgren, Herbert M
27,520.00
Anderson, Harvey R
24,510.65
Ashmore, William S
1,349.75
Barczak, Joseph J
26,082.15
Been, Nathan B
2,189.45
Bock, Eric H
279.90
Butchart, Randall J
24,095.45
Cable, Ralph W
949.75
Chaney, Arch A
886.70
Coles, Gregory D
19,622.70
Conde, Oscar J
24,396.65
Coudriet, Harry J
24,377.55
Coudriet, Wayne L
26,223.55
Davidson, Dan J
9,599.25
DeSerisy, Floyd J
4,677.75
Douglas, William J
26,090.95
Finn, Terence
27,043.05
Fulton, Jim W
34,669.65
Gagne, Steven J
26,121.65
Gallian, Dale A
25,458.50
Gorham, Dana V
15,618.50
Guyton, Michael M
23,794.55
Harding, Kirchie D
2,469.35
Hawkins, Glen D
3,110.80
Hoffman, Terry D
28,257.70
Hooper, William P
25,178.65
Hughley, Calvin
28,303.70
Jennings, Danna I
17,575.65
Karlin, Jonathan F
17,653.90
King, Jeffrey L
24,650.60
Lacher, Ralph
28,756.00
Leinum, Brent E
3,478.95
Lenzen, Marty D
1,069.85
Locke, Ella M
5,675.20
Logan, John R
5,005.35
Lucero, Ernest D
26,243.05
Manson, Jared H
529.90
Massier, Sean M
389.95
May, Merl M
669.85
McCarty, Dale W
9,147.60
Messner, James Ellis
1,620.40
Juan B. Gonzalez. We correct the judge’s inadvertent error, which does
not affect the total reimbursement owed by the Respondent or our deci-
sion.
LONGSHOREMEN ILWU (PACIFIC CRANE MAINTENANCE CO., INC.)
3
Moore, Michael S
1,069.85
Nelson, Douglas A
27,167.40
Newman, Richard L
16,593.50
Oades, Eugene K
24,790.55
OBrien, Kenneth V
650.00
Otto, Chris R
24,910.15
Pachal, Richard M
26,270.35
Paulson, Tom C
949.75
Perrine, Matthew N
2,699.05
Phonesaithip, Norkhou
28,410.25
Stevenson, Brandon
529.90
Suchan, David D
27,754.30
Swanson, Mark J
4,549.35
Taylor, Kent C
28,544.60
Theoharis, Jacob N
669.85
Thompson, Rex A
10,490.55
Thongvanh, Bryan K
34,795.60
Thornbrugh, Claude A
8,848.70
Tucker, Mario P
4,532.70
Upshaw, Andrew J
1,489.70
Walters, Clarence
28,081.90
Westhead, John J
3,309.05
Wilcher, William A
20,958.40
Willecke, Richard A
29,873.75
Williams, Glenn P
8,795.95
Wilper, Michael C
9,623.05
Worrell, Darwin W
24,262.05
Total: $1,697,541.81
Dated, Washington, D.C. March 31, 2021
______________________________________
Lauren McFerran,
Chairman
______________________________________
Marvin E. Kaplan,
Member
_____________________________________
William J. Emanuel,
Member
(SEAL) NATIONAL LABOR RELATIONS BOARD
1 Because the Compliance Specification was amended after the hear-
ing, I left the record open for the parties to permit the parties to submit
Angela Hollowell-Fuentes, Esq., for the General Counsel.
Emily A. Maglio, Esq. and Lindsay R. Nicholas, Esq., for the Re-
spondent.
David A. Rosenfeld, Esq., for the Charging Party.
SUPPLEMENTAL DECISION
STATEMENT OF THE CASE
ELEANOR LAWS, Administrative Law Judge. This supple-
mental proceeding was opened telephonically on November 19,
2019, and tried in Oakland, California, on February 3 and 4,
2020. It hopefully marks the end of over a decade of litigation.
In PCMC/Pacific Crane Maintenance Co., 359 NLRB 1206
(2013), reaffirmed 362 NLRB 988 (2015), enfd. Int’l Longshore
& Warehouse Union v. NLRB, 890 F.3d 1100 (D.C. Cir. 2018),
the National Labor Relations Board (NLRB or Board) found that
the International Longshore and Warehouse Union (ILWU or
Respondent) violated sections 8(b)(1)(A) and (2) of the National
Labor Relations Act (NLRA or the Act) by accepting assistance
and recognition from the Pacific Crane Maintenance Company
(PCMC) and the Pacific Maritime Maintenance Company (col-
lectively, the Employer) as the exclusive collective-bargaining
representative of the unit employees at a time when the ILWU
did not represent an uncoerced majority of unit employees. As
detailed below, the Board ordered the ILWU to reimburse any
initiation fees, periodic dues, assessments, or any other moneys
it had collected from bargaining unit members during the period
of unlawful recognition.
A dispute arose regarding the amount of dues the ILWU must
remit. A compliance specification and notice of hearing issued
on August 5, 2019, and was amended three times, most recently
on February 12, 2020.1 The ILWU timely answered the compli-
ance specification and each amended compliance specification.
The General Counsel contends the Second Amended Compli-
ance Specification (hereinafter, the Compliance Specification)
accurately alleges the amounts due under the Board’s order. The
Respondent asserts that the Compliance Specification is too ex-
pansive as to the number of employees and the length of reim-
bursement periods and raises a number of affirmative defenses.
The International Association of Machinists and Aerospace
Workers (IAM or Charging Party) asserts that the Compliance
Specification is too restrictive and argues it should include addi-
tional employees. I have carefully considered briefs filed by the
General Counsel, the Respondent, and the Charging Party. For
the reasons set forth below, I am satisfied that the approach taken
by the Compliance Specification in this case is reasonable under
the circumstances.
I. BRIEF SUMMARY OF BACKGROUND FACTS
The Pacific Crane Maintenance Company (PCMC), incorpo-
rated in 1990, performs marine terminal maintenance and repair
(M&R) work at various shipping terminals on the West Coast.
PCMC joined the Pacific Maritime Association (PMA), a mul-
tiemployer association that has negotiated collective-bargaining
additional evidence if desired. I admitted Respondent’s Exhs. 20–22 af-
ter the hearing, and I closed the record by written order on March 5, 2020.
4
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
agreements with the ILWU on behalf of approximately 70 com-
panies at various ports on the West Coast.
PCMC performed a significant portion of M&R work for
Maersk, a shipping company. In 1999, Maersk purchased the
Oakland, California, and Tacoma, Washington port operations
from shipping company Sealand.2 As a condition of the sale,
Sealand required Maersk to employ its M&R mechanics, and to
recognize IAM as the maritime terminal-based longshore and
shipping equipment maintenance and repair services mechanics’
union. PCMC, however, as a member of the PMA, was bound
by a collective-bargaining agreement with the ILWU to perform
these services. As a workaround, PCMC created a subsidiary,
the Pacific Maritime Maintenance Company (PMMC), which
recognized the IAM to provide M&R services to Maresk.
IAM and PMMC’s most recent collective-bargaining agree-
ment covering the noted employees was effective from April 1,
2002 through March 31, 2005. The contract sets forth the fol-
lowing language in Article 1 [Spelling and capitalization as in
the original.]:
Section 2 - WORK JURISDICTION
This agreement shall cover but not be limited to, all following
types of work:
Maintenance, Body and Fender Work, Painting, Rebuilding,
Dismantling, Assembling, Repairing, Installing, Erecting,
Welding and Burning (or grinding processes connected there-
with), Inspecting, Diagnosing, Cleansing, Preparing or Condi-
tioning of all units and auxiliaries (includes refrigeration and
air conditioning (units) related to passenger card, buses,
pickups, motor cycles, tractors, trucks, trailers, cargo contain-
ers, generator sets, refrigeration units, dollies, forklifts, shovels,
trench digging and excavating equipment) and all work histor-
ically being performed under this contract.
This Agreement shall also cover terminal maintenance, lubri-
cating, fueling, washing, cleaning, polishing, steam rack oper-
ations, tire repairing, tire service operations, parts and stock-
room operations, shop and yard cleanup, stock and parts pick-
up and delivery as presently and hereafter being performed by
employees represented by the Union.
This Agreement shall apply to all facilities and operations
where the Employer does business and has commercial control.
Section 3. EMPLOYEES COVERED: Employees covered by
this Agreement shall include, but not be limited to: Mechanics,
Apprentices, Painters, Maintenance Employees, Body and
Fender Mechanics, Fuelers, Washers, Tiremen, Partsmen and
such other employees as may be presently and hereafter repre-
sented by the Union.
. . .
Section 6. SINGLE BARGAINING UNIT: The common
problems and interests with respect to the basic terms and con-
ditions of employment of the employees covered hereby have
resulted in the establishment of this Agreement. Accordingly,
2 Maresk also purchased operations at the Long Beach, California,
port, but that location is not at issue here.
the Unions and the Employer covered by this Agreement
acknowledge that the employees covered by this Agreement
constitute a single employer multi-union collective bargaining
unit.
See 359 NLRB at 1223.
In late 2004, Maresk sought to cut costs, and requested bids
from PCMC and PMMC for the work at the Oakland and Ta-
coma ports. PCMC provided the lower bid, which Maresk ac-
cepted. PMMC shut down operations and terminated its mainte-
nance and repair employees. On March 31, 2005, PCMC imme-
diately hired most of the former PMMC employees, ceased rec-
ognizing IAM, and recognized the ILWU as the employees’ ex-
clusive bargaining agent.
The Board described the transition as follows:
After the unit employees began working for PCMC, they con-
tinued to perform essentially the same work, at the same loca-
tions, and in the same organizational units as before. The only
significant changes in their terms and conditions of employ-
ment resulted from the application of the PMA–ILWU Agree-
ment and PCMC’s “lean staffing” model of operations. Under
its lean staffing model, PCMC maintained steady employee
complements at each of its terminal operations that were just
large enough to perform the M&R work at the terminal during
slack periods. It temporarily expanded its work force during
periods of heightened workload by transferring mechanics
from other terminals and using the ILWU hiring hall. Com-
mencing on March 31, PCMC assigned unit employees non-
unit work and nonunit employees unit work, in accordance
with its lean staffing model.
359 NLRB at 1208 (footnote omitted.) The D.C. Circuit, in en-
forcing the Board’s order, described the “lean staffing model” as
follows:
A single CBA, the Pacific Coast Longshore and Clerks Agree-
ment (PCL&CA) binds ILWU, on one side, and the Pacific
Maritime Association (PMA), a collection of approximately 70
maritime employers along the Pacific Coast (including
PCMC), on the other. Pursuant to the PCL&CA, ILWU and
PMA have established an employment dispatch system that is
in effect along the Pacific Coast. The system operates through
a series of “halls” that match employees to employers on a flex-
ible basis so that labor can flow to the terminals that need it
most.
890 F.3d at 1104–1105. By contrast, when the employees
worked at PMMC, they exclusively performed unit work at one
of two prescribed terminals—Oakland or Tacoma. By the terms
LONGSHOREMEN ILWU (PACIFIC CRANE MAINTENANCE CO., INC.)
5
of the PMA–ILWU Agreement, payment of dues was a condition
of work.3 (R. Exhs. 9, 10, 11).4
II. PROCEDURAL HISTORY
Following a lengthy trial, Administrative Law Judge Clifford
Anderson issued a decision recommending dismissal of the alle-
gations relevant here on February 12, 2009. The Board reversed
the administrative law judge in PCMC/Pacific Crane Mainte-
nance Co., 359 NLRB 1206 (2013), reaffirmed 362 NLRB 988
(2015), enfd. Int’l Longshore & Warehouse Union v. NLRB, 890
F.3d 1100 (D.C. Cir. 2018), finding, inter alia, found that ILWU
violated sections 8(b)(1)(A) and (2) of the Act by accepting as-
sistance and recognition from the Employer as the exclusive col-
lective bargaining representative of the unit employees at a time
when ILWU did not represent an uncoerced majority of unit em-
ployees.5
The ILWU was ordered to:
Cease and desist from
(a) Accepting assistance and recognition from Respondent Pa-
cific Crane Maintenance Company, Inc. or its successor Pa-
cific Crane Maintenance Company, LP (collectively PCMC)
as the exclusive collective-bargaining representative of the
employees in the unit described below (the unit) at a time
when the Respondent Union did not represent an uncoerced
majority of the employees in the unit, and when the Machinists
District Lodge 190, Local Lodge 1546, and Machinists Dis-
trict Lodge 160, affiliated with International Association of
Machinists and Aerospace Workers, AFL–CIO (collectively
the Machinists) was the exclusive collective-bargaining repre-
sentative of the employees in that unit:
All employees performing work described in and covered by
“Article 1, Section 2. Work Jurisdiction” of the April 1, 2002
through March 31, 2005 collective-bargaining agreement be-
tween the [Machinists and Pacific Marine Maintenance Com-
pany, LLC (PMMC)] . . .; excluding all other employees,
guards, and supervisors as defined in the Act.
(b) Maintaining and enforcing the PMA–ILWU Agreement,
or any extension, renewal, or modification thereof, including
its union-security provisions, so as to cover the unit employ-
ees, unless and until it has been certified by the Board as the
collective-bargaining representative of those employees.
The Board’s order states, in relevant part:
3 As the Court observed:
It is undisputed that the PCMC–ILWU CBA contains a “union-secu-
rity” clause that requires membership in ILWU as a condition of PCMC
employment, JA 665, and that PCMC enforced the clause when it hired
the former PMMC mechanics, see PCMC/PMMC I, 359 NLRB at
1207; see also JA 908 (PCMC employment offer letter). Because the
Board correctly determined that IAM—not ILWU—was the proper un-
ion representative of the M&R employees at the Oakland and Tacoma
terminals, it also correctly concluded that ILWU had violated section
8(b)(2) by applying its CBA—including the “union-security” clause—
to those employees. PCMC/PMMC I, 359 NLRB at 1207; see Local
Lodge No. 1424 v. NLRB, 362 U.S. 411, 413–14, 80 S.Ct. 822, 4 L.
Ed. 2d 832 (1960).
890 F 3d at fn. 12.
[T]he Respondent Employer and the Respondent Union will
be ordered jointly and severally to reimburse all present and
former unit employees who joined the Respondent Union on
or since March 31, 2005, for any initiation fees, periodic dues,
assessments, or any other moneys they may have paid or that
may have been withheld from their pay pursuant to the PMA–
ILWU Agreement, together with interest as prescribed in New
Horizons, supra, compounded daily as prescribed in Kentucky
River Medical Center, supra.
362 NLRB at 989.6
As to the Employer, PCMC/PMMC as a single employer was
found to have violated Section 8(a)(5) and (1) of the Act, includ-
ing by:
•
Withdrawing recognition from the Machinists as the ex-
clusive collective-bargaining representative of the unit
employees and refusing to bargain with them.
•
Applying the terms and conditions of employment of the
collective-bargaining agreement between the Respond-
ent Employer and the ILWU (the PMA-ILWU Agree-
ment), including its union-security provisions, to the unit
employees at a time when the ILWU did not represent an
unassisted and uncoerced majority of the employees in
the unit, and when the Machinists was the exclusive col-
lective-bargaining representative of the unit employees
•
Notifying the Machinists and the unit employees that the
unit employees would be laid off and that they could con-
tinue performing unit work only if they were hired as em-
ployees of Pacific Crane Maintenance Company, Inc.
(PCMC) and were represented by the ILWU.
•
Bypassing the Machinists and directly offering unit em-
ployees continued employment in the unit on the basis of
terms and conditions of employment different from those
set forth in PMMC’s 2002–2005 collective-bargaining
agreement with the Machinists (the Machinists Agree-
ment) and on condition that they be represented by the
ILWU;
•
Laying off unit employees without first notifying the Ma-
chinists and giving it a meaningful opportunity to bargain
regarding the decision to lay off unit employees;
•
Altering the unit employees’ terms and conditions of em-
ployment without first notifying the Machinists and
4 Abbreviations used in this decision are as follows: “Tr” for tran-
script; “GC Exh.” for the General Counsel’s exhibit; “R Exh.” for the
Respondent’s exhibit; “GC Br.” for the General Counsel’s brief, “R Br.”
for the Respondent’s brief. Although I have included several citations to
the record to highlight particular testimony or exhibits, I emphasize that
my findings and conclusions are based not solely on the evidence specif-
ically cited but rather are based on my review and consideration of the
entire record.
5 As can be gleaned from the citation, this case has a convoluted pro-
cedural history, in part because the first Board decision was rendered
invalid by NLRB v. Noel Canning, 573 U.S. 513 (2014).
6 The D.C. Circuit’s July 24, 2018, mandate enforces the Board’s or-
der in full.
6
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
bargaining to agreement or impasse regarding such
changes in the wages, hours, and working conditions of
the unit employees.
•
Assigning unit employees to nonunit positions and loca-
tions or assigning nonunit employees to perform unit
work, without first notifying the Machinists and giving it
a meaningful opportunity to bargain about such assign-
ments and the effects of such assignments.7
The Board further determined the Employer violated Section
8(a)(2) and (1) of the Act by:
Granting assistance to International Longshore and Warehouse
Union (ILWU or the Respondent Union) and recognizing it as
the exclusive collective-bargaining representative of the unit
employees at a time when the ILWU did not represent an un-
assisted and uncoerced majority of the employees in the unit,
and when the Machinists was the exclusive collective-bargain-
ing representative of the unit employees.
362 NLRB at 991.
The Employer settled its claims and paid $130,000 to each of
the approximately 100 unit employees formerly represented by
IAM at the Oakland and Tacoma terminals. The IAM is there-
fore the only Respondent for purposes of this decision.
III. GENERAL LEGAL PRINCIPLES
It is well established that the finding of an unfair labor practice
is presumptive proof that some backpay (or, as here, dues reim-
bursement) is owed. Lorge School, 355 NLRB 558, 560 (2010);
Laborers Local 158 (Worthy Bros.), 301 NLRB 35, 36 (1991),
enfd. 952 F.2d 1393 (3d Cir. 1991). The Board has broad dis-
cretion in the formulation of backpay formulas to redress unfair
labor practices. Nathanson v. NLRB, 344 U.S. 25, 29–30 (1952).
The Board’s objective in compliance proceedings is to restore,
to the extent feasible, the status quo ante by restructuring the cir-
cumstances that would have existed had there been no unfair la-
bor practices. Phelps Dodge Corp. v. NLRB, 313 U.S. 177, 194
(1941). Backpay amounts often cannot be precisely determined
from the available facts. Thus, the Board may adopt any formula
which is reasonably designed to produce an approximation of
what the discriminatee would have received absent the discrimi-
nation. NLRB v. Brown & Root, Inc., 311 F.2d 447, 452 (8th Cir.
1963); Hacienda Hotel & Casino, 279 NLRB 601, 603 (1986),
citing NLRB v. Carpenters Local 180, 433 F.2d 934 (9th Cir.
1970). The Board has applied a broad standard of reasonable-
ness in approving numerous methods of calculating gross back-
pay. Performance Friction Corp., 335 NLRB 1117, 1117 (2001).
Once the General Counsel meets its burden of showing the
gross backpay owed, the burden shifts to the respondent to es-
tablish facts that negate or mitigate its liability. St. George Ware-
house, 351 NLRB 961, 963 (2007); Parts Depot, Inc., 348 NLRB
152, 153 (2006), enfd. 260 Fed. Appx. 607 (4th Cir. 2008); At-
lantic Limousine, Inc., 328 NLRB 257, 258 (1999), enfd 243
F.3d 711 (3d Cir. 2001). An administrative law judge need not
recommend the General Counsel’s gross backpay formula to the
7 An additional violation was found but is not relevant here.
Board when a more accurate one is established in the record.
Frank Mascali Construction, 289 NLRB 1155, 1157 (1988); J.
S. Alberici Construction Co., 249 NLRB 751 fn. 3 (1980).
“Another well-established principle is that, where there are
uncertainties or ambiguities, doubts should be resolved in favor
of the wronged party rather than the wrongdoer.” Kansas Refined
Helium Co., 252 NLRB 1156, 1157 (1980) (enf’d. sub nom. An-
gle v. NLRB, 683 F.2d 1296 (10th Cir. 1982); see also WHLI
Radio, 233 NLRB 326, 329 (1977). In United Aircraft Corp.,
204 NLRB 1068 (1973), the Board stated that “the backpay
claimant should receive the benefit of any doubt rather than the
[r]espondent, the wrongdoer is responsible for the existence of
any uncertainty and against whom any uncertainty must be re-
solved.”
IV. UNIT EMPLOYEES ENTITLED TO REIMBURSEMENT
As noted above, the Board ordered the ILWU to reimburse
“present and former unit employees who joined the Respondent
Union on or since March 31, 2005, for any initiation fees, peri-
odic dues, assessments, or any other moneys they may have paid
or that may have been withheld from their pay pursuant to the
PMA-ILWU Agreement . . .” The Board’s order required the
ILWU to cease and desist from “[m]aintaining and enforcing the
PMA-ILWU Agreement, or any extension, renewal, or modifi-
cation thereof, including its union-security provisions, so as to
cover the unit employees.”
The Compliance Specification defines the affected employees
as follows:
Pursuant to the Board’s Order, the affected unit employees who
are entitled to reimbursement are all present and former unit
employees who joined the Respondent Union on or since
March 31, 2004. Unit employees are maintenance and repair
mechanics employees who performed bargaining unit work at
the APMT8 terminals in Oakland, California (Oakland unit em-
ployees) and Tacoma, Washington (Tacoma unit employees)
on a steady basis on or since March 31, 2005, and/or for suffi-
cient time periods on or since March 31, 2005.
(GC Exh, 1(x).)
To calculate the amounts owed to employees, the Compliance
Officer for Region 32, Paloma Loya reviewed data provided
from various sources, including the PMA and the ILWU. Spe-
cifically, for Oakland she relied on the following documents pro-
vided by PMA: PCMC Mech. Reg. History (10112, 10114,
10130) (general registration and work records); PCMC Mech.
Reg. History (10131) (general registration and work records);
PCMC all shifts all dues by year (10112, 10114, 10130) (detailed
daily work and dues records); PCMC all shifts all dues by year
(10131) (detailed daily work and dues records); TAmidon Oak-
land (provided daily work record and location); and the Re-
spondent’s Answer for dues information. (Tr. 112; lines 1–12;
GC Exh. 2; GC Exh. 1(z) (Exh. B)). For Tacoma, she relied on:
PCMC Mech. Reg. History (30228); PCMC all shifts all dues by
year (30228); TAmidon Tacoma (provided daily work record
and location); and the Respondent’s Answer Exhibit’s F and B
8 The terminals at issue in Tacoma and Oakland were referred to as
Maresk terminals until 2005, and APMT terminals after.
LONGSHOREMEN ILWU (PACIFIC CRANE MAINTENANCE CO., INC.)
7
for dues information. (Tr. 113, lines 9–19; GC Exh. 2; GC Exh.
1(z) (Exh. F). When she found a discrepancy in the records, she
erred on the side of the employee. After making some correc-
tions that were pointed out at the hearing, she determined the
amounts of reimbursement as set forth in appendices C–G of the
Compliance Specification.
Compliance Officer Loya divided the employees covered by
the Board’s order into two categories: historical unit employees,
and non-historical unit employees. She defined historical unit
employees as any covered employee who had been employed by
PMMC, and non-historical employees as anyone who performed
unit work after PCMC took over operations on March 31, 2005.
(Tr. 32.)
A. The Historical Unit Employees
Compliance Officer Loya determined the historical unit em-
ployees should be reimbursed for shifts worked at terminals cov-
ered by the bargaining agreement and shifts worked at non-cov-
ered terminals. There is no dispute that historical unit employees
who were transferred away from the original bargaining-unit ter-
minals to other ILWU-represented terminals continued to pay
dues, fees, and assessments to the ILWU.
The General Counsel asserts the Compliance Officer’s for-
mula for reimbursing the historical unit employees is reasonable
and consistent with the Board’s order. The Charging Party does
not dispute the Region’s method for calculating historical unit
employees’ reimbursement.
The Respondent argues that including dues reimbursement for
work performed at non-covered terminals is improper because
the General Counsel may not remedy unfair labor practices
PCMC committed. Specifically, the Respondent argues that be-
cause PCMC was found to have committed the unfair labor prac-
tice of assigning unit employees to nonunit positions and loca-
tions, PCMC alone should be responsible for remitting dues col-
lected for periods of nonunit work. For the following reasons, I
do not find this argument persuasive.
The ILWU’s action of recognizing the historical employees
adhered them to the lean staffing model under the PMA–ILWU
Agreement, which included being dispatched to different
worksites rather than remaining at fixed terminals performing
unit work. The ILWU was ordered specifically to cease and de-
sist from “[m]aintaining and enforcing the PMA-ILWU Agree-
ment, or any extension, renewal, or modification thereof, includ-
ing its union-security provisions, so as to cover the unit employ-
ees . . . .” It was by virtue of the ILWU’s act of unlawfully rec-
ognizing these employees and maintaining the PMA–ILWU
Agreement that it was able to collect dues and other assessments,
wherever the historical unit employees were assigned under the
lean staffing model. PCMC committed unfair labor practices by
transferring the nonunit employees, but the ILWU continued to
recognize these employees and collect dues from them. As the
Board ordered joint and several liability, assessing these dues
against the ILWU is appropriate.
The Respondent quotes USPS, 366 NLRB No. 168 (2018), to
assert that “ILWU must only ‘affirmatively remedy the unfair
labor practices it has been found to have committed,’ not those
committed by another party.” (R. Br. 6, emphasis supplied.)
Only the portion in internal quotes appears in the cited decision,
which is part of an administrative law judge’s analysis of
whether deferral to the grievance procedure under Alpha Beta,
273 NLRB 1546 (1985), review denied 808 F.2d 1342, 1345–
1346 (9th Cir. 1987), was appropriate. It does not state what the
Respondent purports it to state, and has no relevance to the con-
text here, particularly given the imposition of joint and several
liability.
The Respondent cites to Guerin, R.B., 92 NLRB 1698, 1712
(1951), for the proposition that “the Board is empowered to find
unfair labor practices and to issue a remedial order only against
parties named in the complaint, and where no charge is filed and
no complaint issued against another party, it is without power to
issue an order against such other party.” (R. Br. 6.) The ILWU
was named in the compliant and was found to have incurred joint
and several liability, so this case is markedly off point.
The Respondent further cites to the dissent in an order in
McDonalds USA, LLC, 363 NLRB 867 (2016) (dissent, Misci-
marra), regarding whether an administrative law judge abused
her discretion by issuing a case management order requiring the
parties to litigate the issue of liability before presentation of evi-
dence regarding any unfair labor practices. (R. Br. 6–7.) Here,
unfair labor practices were litigated and the Board determined
the ILWU was jointly and severally liable “for any initiation
fees, periodic dues, assessments, or any other moneys they may
have paid or that may have been withheld from their pay pursu-
ant to the PMA-ILWU Agreement.” This argument therefore
also misses the mark, and in any event, a dissent from an order
is not precedent.
The Respondent’s proposed calculation formula for reimburs-
ing historical unit employees does not approximate the circum-
stances that would have existed had there been no unfair labor
practices. Phelps Dodge Corp., supra. Those circumstances
were continuous employment performing unit work at fixed ter-
minals. Based on the foregoing, I find the General Counsel’s
formula for calculating the historical unit employees’ dues is rea-
sonable and has not been successfully rebutted by the Respond-
ent.
B. Non-Historical Unit Employees
Compliance Officer Loya determined that any non-historical
employee who performed covered work for 30 days or more in a
year was entitled to reimbursement under the Board’s order. She
only included reimbursement for unit work, because as employ-
ees who never worked for PMMC, they entered into employment
willingly under the lean staffing model. She determined that 30
days/shifts of work were a reasonable minimum. She based this
on information from the Charging Party that under the IAM’s
collective-bargaining agreement with PMMC, after 30 days of
employment at PMMC, an employee was required to pay dues.
(Tr. 38, 184.) Compliance Officer Loya used PMA records to
determine the number of shifts each non-historical unit employee
8
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
worked at one of the four original terminals where unit work was
performed.9
For non-historical employees who worked at least one shift
but fewer than 30, Compliance Officer Loya determined that
their time spent doing unit work was de minimis and outweighed
by time performing non-unit work. She determined it was not
reasonable, for example, to assess a month’s worth of dues for
someone who worked only one-unit shift. As such, she deter-
mined dues reimbursement to those employees was more of a
windfall than a make-whole remedy. Compliance Officer Loya
declined to require that the 30-days be consecutive, or in clusters
of any sort, and concluded the 30-shift minimum was sufficient
to show the employees were entitled to reimbursement.
Once she determined an employee worked at least 30 shifts,
Compliance Officer Loya calculated the amount of dues and
other assessments owed to that employee. To determine the
amounts of monthly dues owed, she reasoned that 20 shifts
would equal a month. Because there was no evidence employees
were permitted to pay dues on a prorated basis, any days worked
beyond the 20 workdays were rounded up, and the employee was
entitled to additional monthly dues reimbursement.10 The Gen-
eral Counsel asserts that this is a reasonable calculation.
The Respondent asserts that only employees who worked as
“steady mechanics” are entitled to reimbursement. The Charg-
ing Party asserts that any employee who worked a single shift
should be reimbursed, noting that under the PMA-ILWU agree-
ment, an employee who works 1 day is a member of the bargain-
ing unit, and is required to pay dues and/or a hiring hall fee.
The Respondent urges a calculation based on continuity of
shifts rather than number of shifts. Based on the employees’
daily work records, the Respondent determined employees who
worked on a steady basis for 50 percent or more of a given month
should be entitled to reimbursement. (R. Exhs. 3, 8, 22.) This
runs counter to the Board’s order, which requires reimbursement
for “all present and former unit employees for all initiation fees,
dues, and other moneys paid by them or withheld from their
wages pursuant to the PMA-ILWU Agreement, with interest.”
The Respondent contends the Compliance Specification itself
supports its position, because it requires work on a steady basis
and/or for sufficient time periods.11 But, there is nothing unrea-
sonable or erroneous about the General Counsel’s position that
30 days is a sufficient time period to trigger reimbursement. As
such, the Respondent’s argument fails.
The Charging Party contends that any employee who worked
at least 1 day should be reimbursed because, under the terms of
the PMA–ILWU Agreement they were required to pay either
membership dues or a hiring hall fee. Recourse for a charging
party who disagrees with any aspect of the Regional Director’s
9 The records reflect terminal codes 10112, 10114, 101130, and
10131 for Oakland and 30228 for Tacoma. (Tr. 51.)
10 The formula is illustrated by the calculation of employee Jose Ama-
dor as follows:
If he had worked at least 30 shifts that year I divided the number of
shifts worked at the APMT terminals by 20, which is like 20 days in a
month, because—and then that gives me like rounded up, like about
how many months (sic) worth of dues he would have paid to ILWU for
the period of time he spent working at that terminal. Jose Amador, spe-
cifically, started paying dues in December of 2012. So even though he
determination in a compliance specification is to file an appeal
with the General Counsel in Washington, DC, and if the appeal
is denied, request Board review. See Sec. 102.53 of the Boards
Rules and Regulations; Ace Beverage Co., 250 NLRB 646, 647
(1980). The purpose of the review process in Sec. 102.53 is to
resolve disputes between the Charging Party and the General
Counsel before the hearing. See Mike-Sells Potato Chip Co., 366
NLRB No. 29 (2018), enfd. 761 Fed. Appx. 5 (D.C. Cir. 2019).
The Charging Party’s argument in posthearing brief therefore
fails.
C. Date the Members Joined
The Respondent asserted in its answer that the inclusion of
employees who joined the ILWU before March 31, 2005, is im-
proper. (GC Exh. 1(z).) In Exhibit E of the Respondent’s an-
swer, Brent E. Leinum is identified as an employee who was a
member of the bargaining-unit prior to Match 31, 2005. The rec-
ords show that Leinum was a bargaining-unit member in 1997.
He subsequently became inactive and re-joined after March 31,
2005. (R. Exh. 1; GC Exh. 27; Tr. 93–94.)
The Respondent does not argue in its closing brief that Leinum
should be excluded based on his previous ILWU membership.
The Board’s order does not state that the employee must have
joined the ILWU for the first time during the prescribed time pe-
riod to be eligible. As the evidence shows Leinum re-joined the
ILWU during the time period specified in the Board’s order, and
any uncertainties must favor the employee, I find Leinum’s in-
clusion is proper.
V. THE REIMBURSEMENT PERIOD
To calculate the applicable reimbursement period, Compli-
ance Officer Loya started with the Board’s broad language,
which included all present and former unit employees who had
joined the ILWU on or since March 31st, 2005 and had paid dues
under the PMA–ILWU contract. She then gleaned from the rec-
ords that the employees did not start paying dues to the ILWU
until they became B class members. In Oakland, this occurred
in September 2005, and in Tacoma it occurred in July of 2005.
The end period was determined by when the Employer ceased
doing the maintenance and repair work at these terminals. In
Oakland this occurred at the end of June 2013, and in Tacoma in
November 2016.
A. Tolling Between ALJ Decision and Board Reversal
The Respondent argues its liability should be tolled from Feb-
ruary 19, 2009, when the administrative law judge recommended
dismissal of the complaint allegations against the ILWU, until
the Board’s reversal on June 17, 2015. During this period span-
ning over 6 years, the Respondent points out the employees
worked June, July, August, September, October, November, and De-
cember, all of his shifts at a terminal; we only applied—we’re only re-
questing reimbursement for December of 2012, that one month because
that’s the month that he started paying dues.
(Tr. 54–55.)
11 The use of “and/or” in the compliance specification means or “ei-
ther or both of two stated possibilities.” See Dictionary.com. There is no
requirement that the work be both steady and for sufficient time periods.
Moreover, the Board’s order and Court’s mandate do not impose such a
requirement.
LONGSHOREMEN ILWU (PACIFIC CRANE MAINTENANCE CO., INC.)
9
received representation from the ILWU and benefitted in a vari-
ety of ways from the PMA-ILWU Agreement.
The Board’s order, enforced by the Court of Appeals, does not
exclude the time period between the ALJ decision and the
Board’s reversal of that decision. Under Section 10(e) of the
Act, the Board may not modify an order the Court of Appeals
has enforced, because the Court’s judgement and decree is re-
viewable only by the Supreme Court.12 Grinnell Fire Protection
Systems Co., 337 NLRB 141, 142 (2001) (Board has no jurisdic-
tion to modify a court-enforced order); Regional Import & Ex-
port Trucking, 323 NLRB 1206, 1207 (1997) (same); Haddon
House Food Products, 260 NLRB 1060 (1982) (same). I there-
fore cannot change the Board’s previously enforced order, much
less carve out a period of 6 years from the Respondent’s reim-
bursement obligations. The Respondent’s tolling argument
therefore fails.13
B. November 2016 Tacoma
The Respondent asserts that no dues should be reimbursed for
Tacoma employees for the month of November because all unit
worked ceased on November 4, 2016. Compliance Officer Loya
reviewed the TAmidon Tacoma daily work records, which
showed historical unit employee Herbert Ahlgren worked 19
shifts in November as an “ILWU Mech Journeyman.” (GC Exh.
7.) She determined that, under the Respondent’s proposed time
period ending November 4, Ahlgren would not be compensated
for time periods during which he worked and paid dues as a jour-
neyman mechanic. While the Respondent asserts no employee
worked for PCMC as a mechanic past November 4, I have found
the formula for reimbursing historical unit employees for all
work to be reasonable, as detailed above. For this reason, I find
the Respondent has not met its burden to prove the records the
Compliance Officer relied on were inaccurate or that there were
conflicting work records.
VI. OTHER OFFSETS
A. Dues, Fees, Assessments, and Fines
The parties stipulated that the dues, fees, assessments, and
fines set forth in Exhibits C and H to the Respondent’s answer to
the Compliance Specification accurately reflect the dues, fees,
assessments, and fines the named individuals paid for the months
reflected. (Tr.100.) The Respondent contends that, in the Com-
pliance Specification, “there appear to be inconsistencies in the
total amounts for reimbursement, which may indicate the Gen-
eral Counsel did not fully adopt the ILWU’s payment infor-
mation.” (R. Br. 20.)
12 I note that the Respondent argued before the D.C. Circuit that the
time period between the ALJ decision and the Board’s reversal should
be tolled, yet the Court’s Mandate did not provide for such tolling. See
Petitioner’s Opening Brief to Court of Appeals at pp. 59–60, November
2, 2017.
13 I would come to the same conclusion if I considered the argument
on the merits. See A.P.W. Products Co., 137 NLRB 25, 28–31 (1962),
enfd. 316 F.2d 899 (2d Cir. 1963) (Board held with respect to such tolling
that “its real thrust is in the direction of benefiting the wrongdoer at the
expense of the wronged—a result antithetical to the fundamental aim of
the Board’s remedial authority and powers.”); See also NLRB v. J. H.
Rutter-Rex Mfg. Co., 396 U.S. 258, 262–265 (1969).
The Respondent specified neither the employees nor the
amounts for reimbursement it deemed inaccurate.14 Under these
circumstances, I cannot conclude the General Counsel’s calcula-
tions are unreasonable or arbitrary. See Hubert Distributors,
Inc., 344 NLRB 339, 344 (2005).
B. Initiation Fees
Compliance Officer Loya included reimbursement of initia-
tion fees for employees who she determined were entitled to re-
imbursement regardless of whether the employees performed
unit work during the time period when the initiation fee was as-
sessed. (Tr. 164.) The General Counsel contends this inclusion
is correct, as the initiation fees at issue were paid during the
Board’s reimbursement period. The Respondent contends that
initiation fees not incurred during periods of time the employees
were performing work at an APMT terminal are not reimbursa-
ble.
To perform the work generating the dues reimbursement, the
employees were required to pay the initiation fee. Even though
an employee may have performed nonunit work during the time
period in and around the initiation fee assessment, paying the in-
itiation fee was a condition precedent to performing the included
work. Given the Board’s order to “reimburse all present and for-
mer unit employees who joined the Respondent Union on or
since March 31, 2005, for any initiation fees,” I find the General
Counsel’s inclusion of these fees is reasonable and consistent
with the Board’s order. (Emphasis supplied)
C. The Settlement Agreements
1. The PCMC/PMMC agreement
In 2016, Charging Party IAM and the Employer entered into
a $10.5 million settlement agreement to resolve IAM’s claims
against the Employer. The agreement states, in pertinent part:
The settlement payment will be allocated to such payees as the
Machinists may designate, provided that the payees have a
good faith claim of loss as determined by the Machinists. Ex-
amples of such potential payees include, but are not necessarily
limited to, Machinist benefit funds and laid-off employees of
PMMC. The payees shall be solely responsible for taxes, if any,
due on account of payments made to them. The loss specifically
does not include any claim for union dues which were paid to
the International Longshore and Warehouse Union, but the re-
leased parties are relieved of any responsibility to reimburse
such dues.
(R. Exh. 14, emphasis supplied.) The PCMC/PMMC Agreement
14 The Respondent’s brief does not address employees for whom there
are no dues payment records, and the stipulations regarding the accuracy
of Exhs. C and H to the Respondent’s answer are limited to the employ-
ees specifically referenced therein. To the extent the Respondent asserts
that employees for whom it did not keep records of dues and other pay-
ments are not entitled to reimbursement, this argument is unavailing. It
is undisputed that to work under the PMA-ILWU agreement, the em-
ployees were required to be dues-paying ILWU members. (R. Exhs. 9–
11.) Accordingly, Compliance Officer Loya’s assumption that these em-
ployees paid dues directly to the ILWU when they worked under the
PMA-ILWU agreement is reasonable. (Tr. 64–65, 71, 79.)
10
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
also released the employers from all claims for withdrawal lia-
bility under contract or under Title IV of the Employee Retire-
ment Income Security Act of 1974 (ERISA).
2. The Ports America Outer Harbor (PAOH) agreement
Another $3 million settlement was reached in August 2016,
between the IAM and the employers operating in the original
bargaining unit terminals in Oakland (Ports America Group, Inc.,
Outer Harbor Terminal LLC, MTC Holdings, and Marine Ter-
minals Corp.). (R. Exh. 16.) That settlement agreement states in
pertinent part:
The settlement payment will be allocated to such payees as the
Machinists may designate, provided that the payees have a
good faith claim of loss. It is further provided that no part of the
Settlement Amount shall be utilized to satisfy any claim for
dues which may ultimately (sic) found to have been unlawfully
paid to the ILWU and the Settlement Amount does not include
reimbursement for any dues paid to ILWU or which was not
paid to the Machinists. The settlement agreement does how-
ever relieve OHT, MTC-H and MTC of any responsibility to
reimburse such dues. The $3 Million shall be the total amount
payable by Companies. The recipients of the money shall be
solely responsible for taxes, if any, due because of the receipt
of said money.
(R. Exh. 16.) The PAOH Agreement also released the employers
from all claims for withdrawal liability under contract or under
Title IV of ERISA.
3. The General Counsel and Charging Party’s positions
The General Counsel and the Charging Party assert that the
payments to employees under these settlement agreements were
for lost wages and benefits and did not include any reimburse-
ment of the dues and other monies paid to the ILWU.
The General Counsel and Charging Party assert that no money
was paid to employees to reimburse them for dues or other fees
associated with their ILWU membership, and therefore no offset
is appropriate. With regard to the PCMC/PMMC Agreement,
IAM’s Assistant Director Don Crosatto and Directing Business
Representative Daniel Morgan said that none of the settlement
money was allocated to reimburse employee for dues and other
fees paid to the ILWU. (Tr. 284, 295.) Oakland received approx-
imately 35 percent of the gross settlement amount, with the re-
mainder to Tacoma. Approximately $1.7 million went to the
IAM Trust Pension Fund. (Tr. 243, 252; R. Exh. 15.)15
According to Crosatto, the money allocated to the employees
was less than make-whole relief. In making his calculations to
distribute the settlement money, Crosatto based all hourly eco-
nomic losses on the wage rate that existed in 2004 under the
IAM’s collective-bargaining agreement for the full reimburse-
ment period of 2005 to 2013, even though he is certain there were
subsequent wage increases. Vacation reimbursement was also
15 Respondent’s Exhs. 15, 16–19 were received under seal. Accord-
ingly, while this decision refers to and considers the precise calculations
in these exhibits, their specific terms are not discussed.
16 Under the then-existing Machinists’ collective-bargaining agree-
ment, employees were entitled to a supplemental $2,146.17, from which
$700 was allocated to the pension fund, and another portion allocated to
calculated at the static 2004 wage rate. (Tr. 264–265, 269–270.)
In addition, the calculations did not account for various types of
overtime or other premium pay the employees earned under the
IAM’s collective-bargaining agreement because making these
calculations would have been impossible. (Tr. 235–238.) Fi-
nally, he did not account for the wage differences between the
tiered wage structure of the ILWU’s collective-bargaining agree-
ment and the IAM agreement, which required the employee to
take a pay cut until they reached A status. (Tr. 283.)
Crosatto allocated payment based on the time the employee
had in the PCMC bargaining-unit, because those who were there
the longest had the greatest losses. Based on the remaining avail-
able settlement proceeds, the number of eligible employees (40),
and the number of months (100), that the employees performed
work in the PCMC bargaining unit, each employee received
$460 for every month he or she worked in the PCMC unit. Some
employees who had been on disability status and then went into
retirement received a smaller payout of around $2,767. (Tr. 253–
254; R. Exh. 15.)
The IAM pension fund was not fully compensated for the loss
of investment resulting from the unfair labor practices. A lump
sum of $840,000 was allocated to the trust to “offset for un-
funded liability that would have been due” under the collective-
bargaining agreement and was “not for individual credit to the
members.” (Tr. 294.) There was no compensation or credit to
employees in any other part of the settlement agreement to make
up for the fact that they were not getting pension credits. (Tr.
295.) Employees also were not compensated for annuities they
lost out on as a result of the unfair labor practices.16
The settlement agreement explicitly excluded tax payments
for any adverse tax consequences resulting from the payment of
a lump sum to each employee. (R. Exh. 14).
Finally, certain out-of-pocket expenses were not reimbursed
under the settlement agreement. (Tr. 266.)
As to the PAOH Agreement, Crosatto believed the settlement
fell severely short of the real losses incurred by the employees as
the employers were credibly threatening bankruptcy. Crosatto
testified, “the damages both in terms of lost wages and benefits
certainly the damages to the trust funds were a lot greater than
the amounts we settled for.” (Tr. 277; R. Exh. 17.)
4. The Respondent’s position
The Respondent contends that full reimbursement of dues and
other fees paid to the ILWU would result in a windfall for the
employees and be punitive. The Respondent, using Social Secu-
rity records and information provided by the Charging Party, cal-
culated gross backpay and non-wage losses incurred as a result
of PMMC’s unfair labor practices.
The Respondent describes the process it used to determine
backpay and what it asserts should be offsets:
In calculating gross backpay, ILWU has adopted calculations
cover health and welfare costs, and the remainder, at that time in 2004,
about $600 went to the “trustee directed 401k plan” for the employees’
direct benefit. (Tr. 254–255; R. Exh. 13.) For employees who worked
the entirety of 2005 to 2013, Crosatto calculated a loss of about $560 a
month in pension benefits for the rest of their lives. (Tr. 281.)
LONGSHOREMEN ILWU (PACIFIC CRANE MAINTENANCE CO., INC.)
11
from the Charging Party regarding non-wage losses incurred as
a result of the unfair labor practices found against PCMC (an-
nuity [IARP], vacation pay, holiday pay) and estimated costs
using information from the Charging Party where the Charging
Party did not provide specific calculations (Tacoma pension,
average per year annuity (IARP), average per year vacation
pay, average per year holiday pay). Because the individuals had
health coverage under both the PMMC-IAM Agreement and
PMA-ILWU Agreement and because the Charging Party did
not provide any specific information about additional medical
costs associated with coverage under the PMA-ILWU Agree-
ment and did not assert any such loss, ILWU assumed that loss
of health coverage under the PMMC-IAM Agreement was
fully offset by health coverage provided under the PMA-ILWU
Agreement. This is especially the case given that the PMA-
ILWU Agreement provides full retiree medical coverage, and
the PMMC-IAM Agreement does not provide any retiree-med-
ical coverage. Tr. 286 (Crosatto), Ex. R-13.
In calculating wages for gross backpay, ILWU has looked to
the Social Security Administration (“SSA”) Itemized State-
ments of Earnings provided by the Compliance Officer during
the hearing listing individual earnings in 2004 or earlier if 2004
earnings appeared to be unusually low and, where no individ-
ual data was collected by the Compliance Officer, the ILWU
used averages per year to estimate individual earnings in 2004.
See Exs. R-4, R-5. This assumption likely over-estimated gross
backpay because if the unfair labor practices found in this case
had not occurred, the Charging Party would have negotiated
economic concessions in order to avoid layoffs. See PCMC,
359 NLRB at 1210 (2013) (“Thus, the Respondent Employer
could have bargained with the Machinists over the transfer of
the unit employees to PCMC without an intervening layoff and
loss of seniority. Alternatively, it could have maintained the
unit employees’ terms and conditions while it negotiated with
the Machinists over cost saving concessions.”); Tr. 270 (Mr.
Crosatto explaining that the Charging Party did not ever “con-
sider[] or contemplate[]” transferring the unit of employees to
PCMC, with ILWU representation); see also CHM § 10542.5
(“If the gross employer’s operations or employee complement
were reduced during the backpay period, it may be that the dis-
criminatee would have lost employment and earnings even if
there had been no unlawful action.”). The ILWU calculated in-
terim earnings using the same SSA statement reports obtained
by the Compliance Officer and likewise calculated averages by
year for individuals for whom the Compliance Officer had not
obtained reports.
Using this information, ILWU calculated net backpay for each
individual listed in the Second Amended Compliance Specifi-
cation who received payments under the PCMC and PAOH
settlements. ILWU then compared the net backpay for each in-
dividual to the reimbursement amount for that individual to de-
termine whether the individuals were fully compensated for all
economic losses by the settlement payments they received and,
if so, whether they received any money in excess of their net
backpay. If they received money in excess of their net backpay,
ILWU offset those excess amounts from the amount of money
the General Counsel is seeking ILWU reimburse for back dues,
fees, fines, and assessments.
(R. Br. 26–27.) The Respondent then performed specific calcu-
lations for the employees for both the Oakland and Tacoma lo-
cations using a variety of criteria and calculation methods and
making certain assumptions. (R. Br. 30–39, Appx. A–F.)
5. Legal principles and analysis
In Urban Laboratories, Inc., 305 NLRB 987, 987–988 (1991),
the Board cited to Zenith Radio Corp. v. Hazeltine Research, 401
U.S. 321, 342–348 (1971), and adopted to so-called “modern
rule” holding that “a release of one joint tortfeasor does not re-
lease the other joint tortfeasor unless that is the intention of the
parties.” The settlement agreement at issue in Urban Laborato-
ries expressly provided that settlement with one of the respond-
ents, Mr. Combs, did not affect the potential liability of the other
respondents. Applying the modern rule, the Board found that
approval of the partial settlement with Mr. Combs did not extin-
guish the claims against the remaining respondents. See also Re-
gional Import and Export Trucking Co., 323 NLRB 1206, 1207
(1997) (Union could not use arbitration award it helped obtain
against employer to reduce its liability for its unlawful conduct).
Here, the settlement agreements at issue likewise did not re-
lease the ILWU from liability, expressly or otherwise. Quite the
opposite: They expressly agreed that the settlement agreements
did not include reimbursement for union dues. The question that
remains is whether the ILWU is entitled to an offset.
Under the plain terms of both settlement agreements, the
money is restricted to remedy losses due to the employers’ ac-
tions of laying off employees and ceasing payment into pension
and benefit funds. Under the plain terms of both settlement
agreements, the money is not to be used for reimbursement of
union dues and fees. I find the disbursements, detailed in
Crosatto’s testimony and set forth in the documentary evidence,
persuasive evidence that the employees did not receive a wind-
fall. (R. Exhs. 15, 17–19.) Accordingly, I do not find any em-
ployee’s dues reimbursement should be offset by the money the
employers tendered pursuant to settling their claims for lost
wages and benefits.
The Respondent essentially seeks to litigate the amount of
backpay the Employer owes to the employees for wages and
other benefits. No backpay specification is before me as I am
not adjudicating the amount of backpay the Employer owes any
employee. These claims were settled, presumably to avoid liti-
gating the precise amount of backpay owed.
The process for calculating backpay is a time-consuming, te-
dious, and difficult exercise. The NLRB Casehandling Manual
(Part Three) Compliance (CHM), outlines detailed and lengthy
procedures for determining backpay. CHM, §§ 10536–10568.
The product of this process, a backpay specification, can gener-
ate much dispute. Litigation of the backpay specification is often
as time-consuming, tedious, and difficult as the process that cre-
ated it. I find the Respondent’s attempts to show the settlement
agreements overcompensate the employees for the backpay and
benefits owed them by the Employer fall short, and they do not
effectively rebut the General Counsel and Charging Party’s
12
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
evidence that the disbursements excluded union dues owed by
the Respondent.17
VII. OPT-IN/OPT-OUT
Finally, the Respondent argues that special circumstances
warrant imposing a requirement on the employees to opt in or
opt out of reimbursement of their dues, fees, fines, and assess-
ments. I can find no authority to impose a requirement for em-
ployees to opt in to receive their make-whole remedy, or to per-
mit them to opt out. It is easy to understand why there are not
opt-in/opt-out options in the Board’s orders directing a make-
whole remedy. The remedial aim of a Board order is restoration
of the situation, as nearly as possible, to that which would have
existed but for the unfair labor practice or practices. Phelps
Dodge Corp, supra. The Board orders employers and/or unions
to make the employees whole; It does not put to onus on the em-
ployee to ask employers or unions to make them whole, or to
make the choice as to whether to receive the make-whole relief.
VIII. CONCLUSION
On these finding of fact and conclusions of law and on the
entire record, I issue the following recommended
SUPPLEMENTAL ORDER
It is hereby ordered that Respondent International Longshore
and Warehouse Union, and its officers, agents, successors and
assigns, satisfy the obligation to make whole the following em-
ployees and former employees by paying them the following
amounts (which totals $1,697,541.81), plus interest accrued to
the date of payment as prescribed in New Horizons, 283 NLRB
1173 (1987), and Kentucky River Medical Center, 356 NLRB 6
(2010):
Employee Name
Grand Total
Alvarez, Manuel C
21,300.96
Amador, Jose
605.10
Ayala, Nelson A
22,970.84
Baldwin, John P
23,158.24
Bell, David B
4,178.80
Bennesen, Neil K
12,846.48
Boardman, David E
13,964.33
Byers, Nordan A
2,773.95
Castanho, Dominic J
605.10
Castillo, Randall J
15,318.30
Ceccarelli, Matthew C
302.55
Cheung, Jayson T
7,014.10
Costa, John L
22,408.24
da Silva, Stephen M
5,575.25
Dake, Kevin J
2,823.80
De Leon, Walter E
504.25
Dela Cruz, Isabelo O
23,358.24
Dimassimo, James J
1,411.90
Fairfield, Joe A
605.10
Gonzalez, Juan
1,890.00
Gonzalez, Juan B
1,890.00
17 This is particularly true considering the Charging Party’s calcula-
tions froze wages at the 2004 rate. See Churchill’s Supermarkets, 301
Gouveia, Brian D
3,240.50
Grimsley, Charles F
22,310.92
Guevara, Juan M
22,055.84
Guevara, Robert
605.10
Haag, Kenneth P
2,017.00
Hernandez, Arthur V
22,307.36
Horton, George H
5,993.70
Juarez, Ruben
21,855.84
Kun, Brian M
605.10
Lau, Jack C
6,136.20
Le, Nhanh H
4,941.10
Letcher, Ron P
22,214.08
Lincoln, Charles F
2,695.80
Logie, Scott C
2,823.80
MacKenzie, Scott J
6,605.40
Martin, Robert J
21,012.69
Martin, Robert J, Jr.
1,919.60
Martinez, Anthony D
7,156.50
Maynard, Bryan R
2,624.40
McLeod, John N
2,823.80
McClean, John F
23,898.24
McIntosh, Glen T
21,855.84
Orellana, Alfredo E
21,855.84
Padilla, Hector A
23,848.24
Paredes, Francisco J
19,136.69
Parker, Howard L
5,035.70
Payne, Bobby R
22,960.94
Philpott, Doug E
22,792.74
Piazza, Michael E
2,374.00
Pierce, Glen A
23,083.24
Punla, Kenneth V
17,036.29
Quijano, Luis A
22,705.84
Robles, Jose G
21,905.84
Robles, Jose L
1,815.30
Rodrigues, Gary D
1,008.50
Rohse, Gordon A
19,350.38
Sensabaugh, Thomas E
605.10
West, Clinton E
5,823.99
White, David S
1,815.30
Willis, Milton G
23,258.24
Wright, John C
2,823.80
Ahlgren, Herbert M
27,520.00
Anderson, Harvey R
24,510.65
Ashmore, William S
1,349.75
Barczak, Joseph J
26,082.15
Been, Nathan B
2,189.45
Bock, Eric H
279.90
Butchart, Randall J
24,095.45
Cable, Ralph W
949.75
Chaney, Arch A
886.70
Coles, Gregory D
19,622.70
Conde, Oscar J
24,396.65
NLRB 722, 723 (1991) (Appropriate to factor wage increases into back-
pay calculations).
LONGSHOREMEN ILWU (PACIFIC CRANE MAINTENANCE CO., INC.)
13
Coudriet, Harry J
24,377.55
Coudriet, Wayne L
26,223.55
Davidson, Dan J
9,599.25
DeSerisy, Floyd J
4,677.75
Douglas, William J
26,090.95
Finn, Terence
27,043.05
Fulton, Jim W
34,669.65
Gagne, Steven J
26,121.65
Gallian, Dale A
25,458.50
Gorham, Dana V
15,618.50
Guyton, Michael M
23,794.55
Harding, Kirchie D
2,469.35
Hawkins, Glen D
3,110.80
Hoffman, Terry D
28,257.70
Hooper, William P
25,178.65
Hughley, Calvin
28,303.70
Jennings, Danna I
17,575.65
Karlin, Jonathan F
17,653.90
King, Jeffrey L
24,650.60
Lacher, Ralph
28,756.00
Leinum, Brent E
3,478.95
Lenzen, Marty D
1,069.85
Locke, Ella M
5,675.20
Logan, John R
5,005.35
Lucero, Ernest D
26,243.05
Manson, Jared H
529.90
Massier, Sean M
389.95
May, Merl M
669.85
McCarty, Dale W
9,147.60
Messner, James Ellis
1,620.40
Moore, Michael S
1,069.85
Nelson, Douglas A
27,167.40
Newman, Richard L
16,593.50
Oades, Eugene K
24,790.55
OBrien, Kenneth V
650.00
Otto, Chris R
24,910.15
Pachal, Richard M
26,270.35
Paulson, Tom C
949.75
Perrine, Matthew N
2,699.05
Phonesaithip, Norkhou
28,410.25
Stevenson, Brandon
529.90
Suchan, David D
27,754.30
Swanson, Mark J
4,549.35
Taylor, Kent C
28,544.60
Theoharis, Jacob N
669.85
Thompson, Rex A
10,490.55
Thongvanh, Bryan K
34,795.60
Thornbrugh, Claude A
8,848.70
Tucker, Mario P
4,532.70
Upshaw, Andrew J
1,489.70
Walters, Clarence
28,081.90
Westhead, John J
3,309.05
Wilcher, William A
20,958.40
Willecke, Richard A
29,873.75
Williams, Glenn P
8,795.95
Wilper, Michael C
9,623.05
Worrell, Darwin W
24,262.05
Total: $1,697,541.81