372 NLRB No. 60
TK, LLC
372 NLRB No. 60
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.
TK, LLC and Plumbers and Pipefitters Local 72,
United Association of Journeymen and Appren-
tices of the Plumbing and Pipe Fitting Industry of
The United States and Canada, AFL–CIO. Case
10–CA–267762
February 22, 2023
DECISION AND ORDER
BY CHAIRMAN MCFERRAN AND MEMBERS KAPLAN
AND PROUTY
On May 12, 2022, Administrative Law Judge Andrew
S. Gollin issued the attached decision. The Respondent
filed exceptions and a supporting brief, the General Coun-
sel and the Charging Party filed answering briefs, and the
Respondent filed a combined reply brief to the answering
briefs.1 In addition, the General Counsel filed limited ex-
ceptions and a supporting brief.
The National Labor Relations Board has delegated its
authority in this proceeding to a three-member panel.
The Board has considered the decision and the record in
light of the exceptions and briefs and has decided to affirm
the judge’s rulings, findings,2 and conclusions, to amend
the remedy, and to adopt the recommended Order as mod-
ified and set forth in full below.3
1 The Respondent has requested oral argument. The request is denied
as the record, exceptions, and briefs adequately present the issues and the
positions of the parties.
2 The Respondent has excepted to some of the judge’s credibility
findings. The Board’s established policy is not to overrule an adminis-
trative law judge’s credibility resolutions unless the clear preponderance
of all the relevant evidence convinces us that they are incorrect. Stand-
ard Dry Wall Products, 91 NLRB 544 (1950), enfd. 188 F.2d 362 (3d
Cir. 1951). We have carefully examined the record and find no basis for
reversing the findings.
We adopt the judge’s finding that the Respondent agreed to be bound
to the 2018–2021 collective-bargaining agreement between the Union
and the Mechanical Contractors Association of Georgia, Inc. for the du-
ration of its work at the SKI Battery Plant in Commerce, Georgia, and
the Pipe Fabrication Shop in Jefferson, Georgia. We further agree with
the judge that the Respondent in any event adopted the agreement by its
conduct. Citing Brookville Health Care Center, 337 NLRB 1064, 1064
(2002), the Respondent contends that adoption by conduct must be es-
tablished by clear and convincing evidence and that the judge errone-
ously failed to apply that standard to the facts of this case. However, the
Board has previously found adoption by conduct without referencing the
clear and convincing evidence standard where, as here, the agreement is
governed by Sec. 8(f) of the Act. See, e.g., Asbestos Workers Local 84
(DST Insulation, Inc.), 351 NLRB 19, 19–20 & fn. 5 (2007); E.S.P. Con-
crete Pumping, Inc., 327 NLRB 711, 712 (1999). Moreover, even as-
suming that the Respondent is correct that the clear and convincing evi-
dence standard is applicable here, the evidence cited by the judge in his
analysis of the adoption by conduct issue constitutes clear and convinc-
ing evidence that the Respondent adopted the agreement by its conduct.
AMENDED REMEDY
Having found that the Respondent has engaged in cer-
tain unfair labor practices, we shall order the following
remedies in addition to those recommended by the judge.
Because the judge found that the Respondent and the
Union had an 8(f) collective-bargaining relationship, we
shall order the Respondent to recognize the Union as the
limited exclusive collective-bargaining representative of
its unit employees. See Jon P. Westrum d/b/a Westrum
Electric & JWE LLC, 365 NLRB No. 151, slip op. at 1
(2017), enfd. 753 Fed.Appx. 421 (8th Cir. 2019), cert. de-
nied 140 S. Ct. 2771 (2020).
To the extent that any employees made personal contri-
butions to union funds that were accepted by the funds in
lieu of the Respondent’s delinquent contributions during
the period of the delinquency, the Respondent will reim-
burse the employees, but the amount of such reimburse-
ment will constitute a setoff to the amount that the Re-
spondent otherwise owes the funds. See, e.g., Painting
Contractor, LLC, 371 NLRB No. 60, slip op. at 4 fn. 10
(2022).
In accordance with our decision in Thryv, Inc., 372
NLRB No. 22 (2022), the Respondent shall also compen-
sate these employees for any other direct or foreseeable
pecuniary harms incurred as a result of the unlawful con-
duct, including reasonable search-for-work and interim
employment expenses, if any, regardless of whether these
expenses exceed interim earnings.4
Compensation for
Because Member Kaplan joins his colleagues in adopting the judge’s
finding that the Respondent’s conduct bound it to the area-wide collec-
tive-bargaining agreement between the Union and the Mechanical Con-
tractors Association of Georgia, Inc., he finds it unnecessary to pass on
the judge’s additional finding that the Respondent agreed to be bound to
the collective-bargaining agreement by signing the project labor agree-
ment.
3 As the General Counsel notes in her exceptions brief, while the
judge recommended, in the remedy section of his decision, reinstatement
of 5 employees and employment of 13 employees referred to the Re-
spondent per its request, he inadvertently omitted these remedies from
his recommended Order. We correct these omissions and shall also mod-
ify the judge’s recommended Order to conform to the Board’s standard
remedial language and in accordance with our decisions in Thryv, Inc.,
372 NLRB No. 22 (2022), Paragon Systems, Inc., 371 NLRB No. 104
(2022), Danbury Ambulance Service, Inc., 369 NLRB No. 68 (2020),
Ferguson Electric Co., 335 NLRB 142 (2001), and Indian Hills Care
Center, 321 NLRB 144 (1996). Because a substantial number of the Re-
spondent’s employees speak Spanish or Korean, we shall modify the rec-
ommended Order to provide that the Respondent post the attached notice
to employees in Spanish, Korean, and English. We shall substitute a new
notice to conform to the Order as modified.
Member Kaplan acknowledges and applies Paragon Systems as Board
precedent, although he expressed disagreement there with the Board’s
approach and would have adhered to the position the Board adopted in
Danbury Ambulance, 369 NLRB No. 68 (2020).
4 Unlike his colleagues, Member Kaplan would require the Respond-
ent to compensate these employees for other pecuniary harms only inso-
far as the losses were directly caused by the unlawful action, or indirectly
2
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
these harms shall be calculated separately from taxable net
backpay, with interest at the rate prescribed in New Hori-
zons, 283 NLRB 1173 (1987), compounded daily as pre-
scribed in Kentucky River Medical Center, 356 NLRB 6
(2010).
ORDER
The National Labor Relations Board orders that the Re-
spondent, TK, LLC, Jefferson, Georgia, its officers,
agents, successors, and assigns shall
1. Cease and desist from
(a) Withdrawing recognition from Plumbers and Pipe-
fitters Local 72, United Association of Journeymen and
Apprentices of the Plumbing and Pipe Fitting Industry of
the United States and Canada, AFL–CIO (the Union) as
the limited exclusive collective-bargaining representative
of its unit employees for the duration of its work at the SKI
Battery Plant in Commerce, Georgia, and the Pipe Fabri-
cation Shop in Jefferson, Georgia.
(b) Terminating, repudiating, or otherwise failing to
abide by the 2018–2021 collective-bargaining agreement
between the Union and the Mechanical Contractors Asso-
ciation of Georgia, Inc. (the 2018–2021 Agreement), and
any automatic renewal or extension of it, for the duration
of its work at the SKI Battery Plant in Commerce, Geor-
gia, and the Pipe Fabrication Shop in Jefferson, Georgia.
(c) Discharging, rescinding its offer, refusing to hire, or
otherwise discriminating against employees for their
membership in, activities on behalf of, referral from, or
support for the Union or any other labor organization.
(d) 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) Honor and comply with the terms and conditions of
the 2018–2021 Agreement, and any automatic renewal or
extension of it, for the duration of its work at the SKI Bat-
tery Plant in Commerce, Georgia, and the Pipe Fabrication
Shop in Jefferson, Georgia.
(b) Make all bargaining unit employees whole for any
loss of earnings and other benefits, and for any other direct
or foreseeable pecuniary harms, suffered as a result of its
repudiation and failure to honor the 2018–2021 Agree-
ment, and any automatic renewal or extension of it, in the
manner set forth in the remedy section of the judge’s de-
cision as amended in this decision.
(c) Make all contractually required contributions to the
Union’s fringe benefit funds that the Respondent has
caused by the unlawful action where the causal link between the loss and
the unfair labor practice is sufficiently clear, consistent with his partial
dissent in Thryv, Inc., supra.
failed to make since about September 25, 2020, and reim-
burse unit employees for any expenses ensuing from its
failure to make such payments, with interest, in the man-
ner set forth in the remedy section of the judge’s decision
as amended in this decision.
(d) Within 14 days from the date of this Order, offer
Randall Stapleton, Sr., Randall Stapleton II, Mathew Jack-
son, Jesse Alley, and Dustin Printz full reinstatement to
their former jobs or, if those jobs no longer exist, to sub-
stantially equivalent positions, without prejudice to their
seniority or any other rights or privileges previously en-
joyed.
(e) Within 14 days from the date of this Order, offer
Matthew Johnson, Adam Ryan Wilson, Tony Lamar Fra-
zier, Jr., Phillip K. White, Steven H. Yearwood, James C.
Balchin, Jr., Chad W. Anderson, Frederick Joh, Joshua
William Ireland, Josh Rodney Cottrell, Jacob D. Segars,
Frank Noel Matheson, III, and Trevor Nichols employ-
ment in the positions for which they were referred to on
about September 21, 2020, or, if those positions no longer
exist, to substantially equivalent positions, without preju-
dice to their seniority or any other rights or privileges.
(f) Make Randall Stapleton, Sr., Randall Stapleton II,
Mathew Jackson, Jesse Alley, Dustin Printz, Matthew
Johnson, Adam Ryan Wilson, Tony Lamar Frazier, Jr.,
Phillip K. White, Steven H. Yearwood, James C. Balchin,
Jr., Chad W. Anderson, Frederick Joh, Joshua William
Ireland, Josh Rodney Cottrell, Jacob D. Segars, Frank
Noel Matheson, III, and Trevor Nichols whole for any loss
of earnings and other benefits, and for any other direct or
foreseeable pecuniary harms, suffered as a result of the
discrimination against them, in the manner set forth in the
remedy section of the judge’s decision as amended in this
decision.
(g) Compensate affected employees for the adverse tax
consequences, if any, of receiving lump-sum backpay
awards, and file with the Regional Director for Region 10,
within 21 days of the date the amount of backpay is fixed,
either by agreement or Board order, a report allocating the
backpay awards to the appropriate calendar years for each
employee.
(h) Within 21 days of the date the amount of backpay
is fixed either by agreement or Board order, or such addi-
tional time as the Regional Director may allow for good
cause shown, file with the Regional Director for Region
10 a copy of each backpay recipient’s corresponding W-2
forms reflecting the backpay award.
(i) Within 14 days from the date of this Order, remove
from its files any reference to the unlawful discharges,
TK LLC
3
rescission of employment offers, and refusals to hire, and
within 3 days thereafter, notify the employees in writing
that this has been done and that the discharges, rescission
of employment offers, and refusals to hire will not be used
against them in any way.
(j) Recognize and, on request, bargain with the Union
as the limited exclusive collective-bargaining representa-
tive of the employees in the following bargaining unit for
the duration of its work at the SKI Battery Plant project in
Commerce, Georgia, and the Pipe Fabrication Shop lo-
cated in Jefferson, Georgia:
All journeymen, apprentices, tradesmen and helpers en-
gaged in the installation of all plumbing and/or pipe fit-
ting systems and component parts thereof employed by
TK, LLC at the SKI Battery Plant project in Commerce,
Georgia and/or the Pipe Fabrication Shop located in Jef-
ferson, Georgia.
(k) 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, social
security payment records, timecards, personnel records
and reports, and all other records, including an electronic
copy of such records if stored in electronic form, neces-
sary to analyze the amount of backpay due under the terms
of this Order.
(l) Post at its Commerce, Georgia and Jefferson, Geor-
gia facilities, in English, Spanish, and Korean, copies of
the attached notice marked “Appendix.”5 Copies of the
notice, on forms provided by the Regional Director for Re-
gion 10, after being signed by the Respondent’s author-
ized representative, shall be posted by the Respondent and
maintained 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 customarily
communicates with its employees by such means. Rea-
sonable steps shall be taken by the Respondent to ensure
that the notices are not altered, defaced, or covered by any
other material. If the Respondent has gone out of business
or closed the facility involved in these proceedings, the
5 If the facilities involved in these proceedings are open and staffed
by a substantial complement of employees, the notice must be posted
within 14 days after service by the Region. If the facilities involved in
these proceedings are closed or not staffed by a substantial complement
of employees due to the Coronavirus Disease 2019 (COVID-19) pan-
demic, the notice must be posted within 14 days after the facilities reopen
and a substantial complement of employees have returned to work. If,
while closed or not staffed by a substantial complement of employees
due to the pandemic, the Respondent is communicating with its employ-
ees by electronic means, the notice must also be posted by such electronic
Respondent shall duplicate and mail, at its own expense, a
copy of the notice to all current employees and former em-
ployees employed by Respondent at any time since Sep-
tember 23, 2020.
(m) Within 21 days after service by the Region, file
with the Regional Director for Region 10 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. February 22, 2023
______________________________________
Lauren McFerran,
Chairman
______________________________________
Marvin E. Kaplan,
Member
_____________________________________
David M. Prouty,
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 vi-
olated 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 ac-
tivities.
means within 14 days after service by the Region. If the notice to be
physically posted was posted electronically more than 60 days before
physical posting of the notice, the notice shall state at the bottom that
“This notice is the same notice previously [sent or posted] electronically
on [date].” 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
National 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.”
4
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
WE WILL NOT withdraw recognition from Plumbers and
Pipefitters Local 72, United Association of Journeymen
and Apprentices of the Plumbing and Pipe Fitting Industry
of the United States and Canada, AFL–CIO (the Union) as
the limited exclusive collective-bargaining representative
of our unit employees for the duration of our work at the
SKI Battery Plant in Commerce, Georgia, and the Pipe
Fabrication Shop in Jefferson, Georgia.
WE WILL NOT terminate, repudiate, or otherwise fail to
abide by the 2018–2021 collective-bargaining agreement
between the Union and the Mechanical Contractors Asso-
ciation of Georgia, Inc. (the 2018–2021 Agreement), and
any automatic renewal or extension of it, for the duration
of our work at the SKI Battery Plant in Commerce, Geor-
gia, and the Pipe Fabrication Shop in Jefferson, Georgia.
WE WILL NOT discharge, rescind our offer, refuse to
hire, or otherwise discriminate against any of you for your
membership in, activities on behalf of, referral from, or
support for the Union or any other labor organization.
WE WILL NOT in any like or related manner interfere
with, restrain, or coerce you in the exercise of the rights
listed above.
WE WILL honor and comply with the terms and condi-
tions of the 2018–2021 Agreement, and any automatic re-
newal or extension of it, for the duration of our work at the
SKI Battery Plant in Commerce, Georgia, and the Pipe
Fabrication Shop in Jefferson, Georgia.
WE WILL make all bargaining unit employees whole for
any loss of earnings and other benefits suffered as a result
of our repudiation and failure to honor the 2018–2021
Agreement, and any automatic renewal or extension of it,
with interest, and WE WILL also make such employees
whole for any other direct or foreseeable pecuniary harms
suffered as a result of our repudiation and failure to honor
the 2018–2021 Agreement, and any automatic renewal or
extension of it, including reasonable search-for-work and
interim employment expenses, plus interest.
WE WILL make all contractually required contributions
to the Union’s fringe benefit funds that we have failed to
make since about September 25, 2020, including any ad-
ditional amounts due the funds, and WE WILL reimburse
unit employees for any expenses ensuing from our failure
to make the required payments, with interest.
WE WILL, within 14 days from the date of the Board’s
Order, offer Randall Stapleton, Sr., Randall Stapleton II,
Mathew Jackson, Jesse Alley, and Dustin Printz full rein-
statement to their former jobs or, if those jobs no longer
exist, to substantially equivalent positions, without preju-
dice to their seniority or any other rights or privileges pre-
viously enjoyed.
WE WILL, within 14 days from the date of the Board’s
Order, offer Matthew Johnson, Adam Ryan Wilson, Tony
Lamar Frazier, Jr., Phillip K. White, Steven H. Yearwood,
James C. Balchin, Jr., Chad W. Anderson, Frederick Joh,
Joshua William Ireland, Josh Rodney Cottrell, Jacob D.
Segars, Frank Noel Matheson, III, and Trevor Nichols em-
ployment in the positions for which they were referred to
on about September 21, 2020, or if those positions no
longer exist, to substantially equivalent positions, without
prejudice to their seniority or any other rights or privi-
leges.
WE WILL make Randall Stapleton, Sr., Randall Staple-
ton II, Mathew Jackson, Jesse Alley, Dustin Printz, Mat-
thew Johnson, Adam Ryan Wilson, Tony Lamar Frazier,
Jr., Phillip K. White, Steven H. Yearwood, James C.
Balchin, Jr., Chad W. Anderson, Frederick Joh, Joshua
William Ireland, Josh Rodney Cottrell, Jacob D. Segars,
Frank Noel Matheson, III, and Trevor Nichols whole for
any loss of earnings and other benefits resulting from their
discharge, less any net interim earnings, plus interest, and
WE WILL also make such employees whole for any other
direct or foreseeable pecuniary harms suffered as a result
of the unlawful discharge, including reasonable search-
for-work and interim employment expenses, plus interest.
WE WILL compensate affected employees for the ad-
verse tax consequences, if any, of receiving lump-sum
backpay awards, and WE WILL file with the Regional Di-
rector for Region 10, within 21 days of the date the amount
of backpay is fixed, either by agreement or Board order, a
report allocating the backpay awards to the appropriate
calendar years for each employee.
WE WILL, within 21 days of the date the amount of back-
pay is fixed either by agreement or Board order, or such
additional time as the Regional Director may allow for
good cause shown, file with the Regional Director for Re-
gion 10 a copy of each backpay recipient’s corresponding
W-2 forms reflecting the backpay award.
WE WILL, within 14 days from the date of the Board’s
Order, remove from our files any reference to the unlawful
discharges, rescission of employment offers, and refusals
to hire, and WE WILL, within 3 days thereafter, notify the
employees in writing that this has been done and that the
discharges, rescission of employment offers, and refusals
to hire will not be used against them in any way.
WE WILL recognize and, on request, bargain with the
Union as the limited exclusive collective-bargaining rep-
resentative of our employees in the following bargaining
unit for the duration of our work at the SKI Battery Plant
project in Commerce, Georgia, and the Pipe Fabrication
Shop located in Jefferson, Georgia:
All journeymen, apprentices, tradesmen and helpers en-
gaged in the installation of all plumbing and/or pipe fit-
ting systems and component parts thereof employed by
TK, LLC at the SKI Battery Plant project in Commerce,
TK LLC
5
Georgia and/or the Pipe Fabrication Shop located in Jef-
ferson, Georgia.
TK, LCC
The
Board’s
decision
can
be
found
at
http://www.nlrb.gov/case/10-CA-267762 or by using the
QR code below. Alternatively, you can obtain a copy of
the decision from the Executive Secretary, National Labor
Relations Board, 1015 Half Street, S.E., Washington, D.C.
20570, or by calling (202) 273-1940.
Sally R. Cline, Esq., for the General Counsel.
John F. Wymer, III, Esq., for the Respondent.
Lance Geren, for the Charging Party.
DECISION
INTRODUCTION1
ANDREW S. GOLLIN, ADMINISTRATIVE LAW JUDGE. The issue
in this case is whether TK, LLC (Respondent) agreed, either by
signature or conduct, to be bound to an area collective-bargain-
ing agreement between the Pipefitters Local 72, United Associ-
ation of Journeymen and Apprentices of the Plumbing and Pipe
Fitting Industry of the United States and Canada, AFL–CIO (Un-
ion or Charging Party) and the Mechanical Contractors Associa-
tion of Georgia, Inc. (Association). On June 11, 2020,2 Respond-
ent executed a one-page project labor agreement with the Union
for the duration of its work for a construction project in Com-
merce, Georgia. The General Counsel alleges that by signing
that agreement Respondent also agreed to be bound to the area
collective-bargaining agreement, which required, inter alia, that
it recognize and bargain with the Union as the exclusive bargain-
ing representative of the unit employees, pay contractual wages
and fringe benefits, and utilize the Union’s exclusive referral ser-
vice when hiring employees to perform covered work. The latter
is referred to as the “exclusivity” provision.
1 Abbreviations are as follows: “Tr.” for transcript; “Jt. Exh.” for Joint
Exhibits; “GC Exh.” for General Counsel’s Exhibits; “R. Exh.” for Re-
spondent’s Exhibits. Although I have included citations to the record to
highlight specific testimony or exhibits, my findings and conclusions are
based on my review and consideration of the entire record.
2 All dates refer to 2020, unless otherwise stated.
3 The Findings of Fact are a compilation of credible testimony and
other evidence, as well as logical inferences drawn therefrom. To the ex-
tent testimony contradicts with the findings herein, it has been discred-
ited, either as in conflict with credited evidence or because it was incred-
ible and unworthy of belief. In assessing credibility, I primarily relied
Between June and September, Respondent requested referrals
from the Union, paid those employees contractual wages and
benefits, and, upon request, deducted and remitted union dues
and assessments. In September, Respondent contemplated sub-
contracting its work on the project to a third party in order to
meet the project deadline. At a September 17 meeting, the Un-
ion’s attorney reminded Respondent about the exclusivity provi-
sion and threatened litigation if the company used nonunion em-
ployees to perform covered work. Respondent argued it never
agreed to that provision and remained free to hire and fire at-will.
Thereafter, on September 23, Respondent notified the Union that
it was terminating their agreement effective immediately. On
September 25, Respondent discharged the five union members
on the project and rescinded its offer and refused to hire the 13
others it had requested.
The General Counsel alleges that Respondent violated Section
8(a)(5) and (1) of the National Labor Relations Act (Act) when
it notified the Union that it was terminating their Section 8(f)
agreement prior to its expiration, repudiated/refused to honor the
terms of that agreement, withdrew recognition from, and failed
to bargain in good faith with, the Union as the unit employees’
exclusive collective-bargaining representative, and discharged
the five union employees and rescinded its offer and refused to
hire the 13 others. The General Counsel also alleges that Re-
spondent violated Section 8(a)(3) and (1) of the Act when it dis-
charged/refused to employ these 18 individuals. Respondent de-
nies these allegations and raises various affirmative defenses.
For the reasons stated below, I conclude that Respondent com-
mitted the violations as alleged.
STATEMENT OF THE CASE
The Union filed its charge in this case on October 16. On
September 14, 2021, the Regional Director for Region 10, on be-
half of the General Counsel, issued the complaint and notice of
hearing. Respondent filed its answer on September 28, 2021,
and its amended answer on February 11, 2022. This hearing was
held in person on March 21-22, 2022, at the Russell Federal
Building in Atlanta, Georgia.
At the hearing, all parties were afforded the right to call and
examine witnesses, present any relevant documentary evidence,
and argue their respective legal positions. The General Counsel,
the Union, and Respondent filed post-hearing briefs, which I
have considered.
FACTUAL FINDINGS3
A. Jurisdiction
Respondent is an Alabama limited liability company with an
upon witness demeanor. I also considered the context of the witness’s
testimony, the quality of their recollection, testimonial consistency, the
presence or absence of corroboration, the weight of the respective evi-
dence, established or admitted facts, inherent probabilities, and reasona-
ble inferences that may be drawn from the record as a whole. See Double
D Construction Group, 339 NLRB 303, 305 (2003); Daikichi Sushi, 335
NLRB 622, 623 (2001) (citing Shen Automotive Dealership Group, 321
NLRB 586, 589 (1996)), enfd. sub nom., 56 Fed. Appx. 516 (D.C. Cir.
2003). Credibility findings need not be all-or-nothing propositions. In-
deed, nothing is more common in judicial decisions than to believe some,
but not all, of a witness’s testimony. Daikichi Sushi, supra at 622; Jerry
6
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
office and place of business in Jefferson, Georgia. During the
past 12 months, a representative period, Respondent has per-
formed services valued in excess of $50,000 outside the State of
Georgia. (Tr. 6–7.) Respondent admits, and I find, that it is an
employer engaged in commerce within the meaning of Section
2(2), (6), and (7) of the Act. Respondent also admits, and I find,
that the Union has been a labor organization within the meaning
of Section 2(5) of the Act.
B. Area Collective-Bargaining Agreement
At all material times, the Union and the Association have been
parties to a 2018–2021 area agreement referred to on its cover
page as the “Collective Bargaining Agreement” (CBA). (Jt. Exh.
1). By its terms, the CBA applied to all contractor-members of
the Association and all employers that separately entered into a
written document—such as a participating agreement to contrib-
ute to the benefit funds referenced in the agreement, a letter of
assent to be bound to the terms of the agreement, or any other
document—by which they agree, among other things, that the
Association is their representative for bargaining with the Union.
(Jt. Exh. 1, pgs. 4 and 7 of 62.)
Article One of the CBA states the Association recognizes the
Union as the exclusive bargaining representative for all journey-
men, intern journeymen, apprentices, tradesmen and helpers in
the employ of a covered employer with respect to wages, hours
and other terms and conditions of employment, and to any and
all plumbing and pipe fitting work covered by the agreement. It
further states that those employers to whom the Union has not
yet demonstrated its majority status agree to recognize the Union
as the bargaining representative for those employees who were
referred or should have been referred by the Union. (Jt. Exh. 1,
pg. 5 of 62.)
Article Four of the CBA contains the referral/hiring process
(referred to as the “exclusivity” provision). It states the Union
will furnish the covered employer with duly qualified journey-
men, apprentices and helpers in sufficient number as may be nec-
essary to properly execute work contracted for by the employer
in the manner and under the conditions specified in the CBA.
That employer has the right to determine the number, compe-
tency, and qualifications of the employees referred by the Union,
and it has “the right to hire and discharge accordingly, provided
however, that such rights shall be exercised on a non-discrimi-
natory basis and shall not be based on, or be in any way affected
by … union membership, bylaws, rules, regulations, constitu-
tional provisions or any other aspect or obligation of union mem-
bership, policies or requirements.” (Jt. Exh. 1, pgs. 8–9 of 62.)
The CBA also addresses other terms and conditions of em-
ployment based on geography, including hours of work, over-
time, and shift work, wages, benefit trust funds, and working
rules and conditions. There is no “just cause” requirement for the
termination of employees.
The CBA refers to an addendum with updated wage and
Ryce Builders,352 NLRB 1262, 1262 fn. 2 (2008) (citing NLRB v. Uni-
versal Camera Corp., 179 F.2d 749, 754 (2d Cir. 1950), rev’d. on other
grounds 340 U.S. 474 (1951)). Where necessary, specific credibility de-
terminations are set forth below.
4 The document is entitled “Revised-Effective February 1, 2019 LU
72 Wage & Fringes Addendum for the 2017–2021 LU 72 CBA.” There
benefit amounts. Effective February 2019, the Union and the
Association negotiated new contractual wage rates and benefit
amounts. Those rates and amounts are contained in a three-page
document (referred to as the “Addendum.”) (Jt. Exh. 3).4
C. Alleged Unfair Labor Practices
1. Background
Respondent is engaged in pipefitting fabrication and installa-
tion in the building and construction industry. It is owned by Tae
Kyong Kim. In November 2019, Respondent was hired by SKI
Battery, a South Korean electric battery manufacturer, to per-
form the pipefitting work on phase one of the company’s new
manufacturing facility in Commerce, Georgia (referred to as the
“construction project”). The multi-phase project is expected to
take up to five years to complete. Respondent has a pipe fabri-
cation shop in nearby Jefferson, Georgia where it fabricates the
materials for the construction project (referred to as the “fabrica-
tion shop”).
In December 2019, Kim hired Phillip Ahn to be Respondent’s
general manager and to assist with hiring employees for the con-
struction project. Ahn is a real estate agent by trade. Kim and
Ahn are both Korean. Ahn speaks English; Kim does not. One
of Ahn’s duties is to translate for Kim and to communicate on
his behalf (in English) in business matters.5
In March 2020, Union Representative/Organizer Chris
Inghram visited Respondent’s fabrication shop. He spoke with
Ahn and asked if the company needed additional employees for
the project. Ahn stated they did not need anyone at that time, but
he took Inghram’s contact information in case a need developed
in the future. Ahn did not know Inghram was with the Union,
and he had no prior experience dealing with unions.
About 3 months later, in early June, Kim wanted to hire addi-
tional employees for the construction project. The company al-
ready had about 30 hourly employees working on the project that
it had hired directly, most of whom were Korean. Kim told Ahn
he wanted to hire locally to help develop goodwill with the com-
munity. In June, Ahn contacted Inghram. Inghram gave Ahn’s
contact information to David Cagle. Cagle is an organizer for
the Georgia Carolina Pipe Trades Association. Cagle assists lo-
cal unions in their organizing efforts, which includes cold calling
non-union contractors, like Respondent, about supplying them
with needed employees in order to get them to become signatory
to the CBA.
Cagle contacted Ahn and the two met at Respondent’s fabri-
cation shop on June 8. At that meeting, Cagle introduced himself
as a “marketing representative.” (Tr. 112.) The two spoke for
about 30–45 minutes. Ahn explained the company was interested
in hiring about 10 additional employees for the construction pro-
ject, and he needed Cagle’s help in supplying those employees.
Cagle said he could supply the additional employees, but the
company would first need to sign a project agreement with the
is no 2017–2021 agreement. Under the circumstances, and after com-
paring the CBA and the Addendum, I conclude the Addendum updates
the terms of the 2018–2021 CBA.
5 Respondent admits Ahn and Kim are supervisors within the mean-
ing of Sec. 2(11) of the Act. (GC Exh. 1(1).)
TK LLC
7
Union. (Tr. 64.)6 Cagle did not have a copy of the CBA with
him, so he described, in general, what the terms and conditions
would be, including the hiring/referral process. (Tr. 63–64). He
explained the company had the right to reject or terminate any of
the employees referred to work at the project if their skills or
performance were not satisfactory, but the employers were asked
to let the Union know of any issues so it could try to correct them.
(Tr. 68).
2. Execution of the Project Labor Agreement
On June 9, Cagle emailed Ahn. (Jt. Exh. 4.) The subject line
of the email read “CBA for PLA.” Attached to the email were
two documents, “Local Union 72 (CBA) Updates” and “Untitled
attachment 00366.txt.” The record does not reflect for certain
what the “Untitled attachment” was, but there is no dispute the
email included a complete copy of the 62-page CBA.
That same day, Ahn sent Cagle a text message acknowledging
receipt of the attachment. (Jt. Exh. 5.). He then asked Cagle to
confirm that “if [the company] decide[d] to hire” the individuals
the Union sent, those individuals would also need to fill out an
employment application. He also asked, “Will there be problem
our employment is at-will employment. Even we discussed we
have right to terminate if we feel not qualified or any other rea-
sons, we may have let go…Will there be a problem[?]” Cagle
responded, “Ok. No we are an at will labor organization.” (Jt.
Exh. 5.)7
On June 10, Cagle emailed Ahn with the subject line “Project
Labor Agreement for UA Local Union 72 & SKI Battery
Plant.docx.” (Jt. Exh. 6). Attached was the one-page “Project
Labor Agreement.” (PLA). (Jt. Exh. 2) (Tr. 64–65). The PLA
reads:
Project Labor Agreement for UA Local Union 72 & TK LLC
at the SKI Battery Plant, Commerce Georgia and TK LLC Pipe
Fabrication Shop located at 274 Galilee Church Road, Jeffer-
son, Georgia 30549
The agreement is a Collective Bargaining Agreement/Project
Labor Agreement for the above listed jobsites/projects. The du-
ration of this agreement will be in effect until the end of the
above listed jobsites/projects.
6 Ahn testified Cagle said the company would need to sign a “docu-
ment”, and Cagle testified he told Ahn the company would need to sign
an “agreement.” Although both struggled to recall the details of this
meeting, I found Cagle had a clearer and more detailed recollection of
what was said. I, therefore, have credited him regarding this meeting.
7 Ahn testified he sent this email to get confirmation that employment
would be at-will, meaning the company could hire who it wanted and
terminate them for any reason. (Tr. 116.) Cagle testified his response
related only to terminating employees, and the understanding all along
was that the company would be required to hire exclusively through the
Union’s referral service. (Tr. 67.) Cagle testified he and Ahn discussed
this topic several times, and Ahn’s concern each time was over the com-
pany’s ability to terminate at-will. (Tr. 95.) Ahn, who was present for
Cagle’s testimony, did not refute this. I credit Cagle on this point as his
testimony was more logical and consistent.
8 The email Ahn sent also refers to an attached “Rate Sheet.” (Jt.
Exh. 7.) As stated, the Addendum included the updated wage and fringe
benefit rates, but Ahn testified he did not receive a copy of it until after
the parties all signed the PLA. (Tr. 159–162). Cagle’s June 9 email
contained the CBA and another “Untitled attachment.” (Jt. Exh. 4).
(Jt. Exh. 2.)
On June 10, Ahn emailed Kim a copy of the CBA and the PLA
and asked him to sign the one-page PLA and return it. (Jt. Exh.
7.)8 Regarding the CBA, Ahn informed Kim he had read over
the “62 pages of documents as well” but he did “not have the
profession on this field.” Ahn wrote he believed the CBA “is
what they [are] required to give us such as [a] CC&R.” [“CC&R”
is the abbreviation for the covenants, conditions, and restrictions
report that a seller is required to provide to a buyer in a real estate
transaction governing the use of the conveyed property (e.g.,
homeowners’ association bylaws).] Ahn also wrote that “most
importantly” the Union had “accepted and agreed we are at-will
employment and to provide our job application.” Kim later
signed and returned a copy of the PLA. (Jt. Exh. 2)(Tr. 114).
On June 11, Ahn met with Cagle for the parties to execute the
PLA. Cagle brought a copy of the CBA with him and attempted
to go through it with Ahn. Ahn, however, stated he wanted to
get the PLA signed and to be done. (Tr. 67.)
The day after the parties executed the PLA, Ahn emailed Ca-
gle that Respondent was no longer in need of any employees for
the construction project because of scheduling issues that had
arisen. (R. Exh. 1.) Ahn apologized and stated he would contact
Cagle if the company planned to hire in the future. He stated that
they should void out the agreement for the time being and re-
write a new one when the company was ready to hire. Cagle
received Ahn’s email but did not respond. (Tr. 69–70.)
3. Initial Referrals and Payment of Wages and Fringe
Benefit Contributions
A couple of weeks later, Ahn contacted Cagle and asked him
to supply five employees for the construction project. There was
no discussion about executing a new agreement. The Union
later referred five union members to fill the request.9 All five
began working for the company on June 29, and they worked for
approximately 6 weeks. (Jt. Exh. 14). During that time, the com-
pany paid them wages in accordance with the terms of the CBA
and the Addendum. (Tr. 70). Initially, the payroll department
was confused with how and where to make the fringe benefit
contributions. In early July, Ahn asked the fund administrators
Cagle’s June 10 email contained the PLA and an “Untitled attachment.”
(Jt. Exh. 6.) It is both logical and probable that Cagle included the Ad-
dendum in one of these two emails to Ahn, and Ahn attached it to his
email to Kim.
9 The Union sends the contractor a referral form with information
about the individual and the job. Several of these forms were introduced
into the record. At the bottom, there is language authorizing a dues
checkoff of two percent on gross wages and an assessment of two percent
on gross wages less overtime. There is a signature line below that the
employee is to sign. Prior to the COVID-19 pandemic, the Union re-
quired the employee to come to the union hall to sign above signature
line on the referral form. During the pandemic, however, the Union’s
hall was closed and face-to-face contact was limited, and employees be-
gan “signing” these referral forms electronically. Cagle testified that all
referred employees are union members and have on file with the Union
a signed dues check-off authorization form that authorizes dues deduc-
tions for every covered contractor. He, however, was uncertain whether
those forms were forwarded to Respondent with the referrals. (Tr. 80–
81; 94–95; 100–107.)
8
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
for assistance, and the funds provided information, including
benefit schedules, blank contribution reports, and other docu-
ments, to assist Respondent’s payroll department in making the
necessary fund contributions. (Jt. Exhs. 8–11.) Respondent
thereafter made fringe benefit contributions in accordance with
the CBA and the Addendum.10
Respondent later terminated the employees the Union referred
effective August 14. Although the Separation Forms each cited
lack of work as the reason for their separation, Ahn testified they
were terminated because of their inability to communicate effec-
tively with the company’s Korean employees and because the
project supervisor was not satisfied with their work. (Tr. 120.)
Ahn emailed Cagle to notify him of the company’s decision to
terminate the men, stating that as the two had discussed in early
June, the company had the right to terminate the individuals at-
will. Ahn concluded his email by stating he hoped the two could
work together again in the future. (Jt. Exhs. 11–12.) Cagle did
not respond, and the Union did nothing to challenge the termina-
tions. Cagle testified the Union took no action because it did not
want to jeopardize the “bigger picture” of having future work for
union members on the project. (Tr. 71.)
4. Overtime
One of the union members terminated was Randall Stapleton,
Jr. Prior to his termination, Stapleton, Jr. was paid his regular
rate of pay for working on a Saturday. Cagle later spoke with
Ahn and stated Stapleton, Jr. should have been paid overtime for
those hours. On August 14, Ahn emailed Cagle seeking clarifi-
cation because he believed the hours worked were “make-up
time” which, according to the CBA, are paid at the employee’s
regular base pay rate, not their overtime rate. In his email, Ahn
quoted from Article 6, Section 2(a) of the CBA, which states:
Overtime on new construction will be paid at one and one-half
(1 ½) times the straight-time rate on all work except for that
work performed on Sundays and holidays [which] will be paid
at double the straight-time rate. A Saturday make-up day at the
regular rate of pay maybe worked to make-up time lost during
the normal work week when time is lost for reasons beyond the
contractor’s control. There will be no make-up days for Holi-
days.
(Jt. Exh. 13 quoting form Jt. Exh. 1, pg. 15 of 62.)
Ahn told Cagle in the email that the company was planning on
hiring additional helpers from the Union and he wanted to make
sure he and payroll understood how this language should be in-
terpreted so there were no further misunderstandings. (Jt. Exh.
13).
The following day, Cagle responded to Ahn, stating that a
10 The terms of the CBA were not applied to the existing 30 hourly
employees working at the construction project. Cagle testified the Union
agreed to this arrangement because Ahn informed Cagle that he wanted
to replace those existing employees with local (Union) employees, and
there was discussion between the two about doing that over time. (Tr.
67–69.) I credit Cagle’s unrefuted testimony. I also note that neither the
General Counsel nor the Union are seeking to have the terms of the CBA
applied to any of these 30 employees as part of a remedial order.
11 On August 22, Ahn emailed Cagle about the referral of the two
helpers, correcting their start date from August 18 to August 20. (Jt. Exh.
“make-up day” under the CBA is for hours lost due to circum-
stances beyond the contractor’s control (e.g., power outages, in-
clement weather, COVID-19 issues, etc.) However, if an em-
ployee, like Stapleton, Jr., starts working a day in their normal
work week, they still are paid overtime for any hours worked
past the regular workday, which in this case was a Saturday. (Jt.
Exh. 15.)
5. Additional Requests for Employees and Referrals
A week after terminating the five union members, Ahn con-
tacted Cagle and requested two helpers to work on the construc-
tion project. Two union members were referred out. (Jt. Exh.
16.) Both received training (August 20) and then worked one
day (August 21) before being terminated. (Tr. 120.) Ahn later
notified Cagle of their terminations. The Union again took no
action.11
About 2 or 3 weeks later, in early September, Ahn contacted
Cagle and requested five individuals to work on the project. The
Union referred Randall Stapleton, Sr., Randall Stapleton, Jr.,
Mathew Jackson, Jesse Alley, and Dustin Printz. These five un-
ion members began working on about September 7, and they
worked for a little over two weeks. (Jt. Exh. 20.) Respondent
paid them wages and fringe benefits in accordance with the CBA
and the Addendum.
6. Subcontracting Work to Genesys
In September, Respondent began falling behind with its work
on the construction project and risked not completing it by the
project deadline. Ahn informed Cagle that Kim was interested
in subcontracting out the remainder of its work. (Tr. 122–123.)
Ahn asked Cagle if the Union would be interested in taking on
the role of subcontractor. Cagle told him the Union could pro-
vide the company with as many workers it needed to complete
the project, but it could not take over and manage the completion
of the project. (Tr. 122.) Ahn later reported Cagle’s response to
Kim. Thereafter, Kim began communicating with Genesys Sys-
tem Integration, another contractor, about taking over and finish-
ing the project. (R. Exhs. 2–3.)
7. September 17 Meeting and Request for Referrals
On September 17, at the Union’s request, the parties met.
Ahn, Kim, Cagle, Inghram, and the Union’s attorney Lance
Geren, as well as others, attended. Kim and Ahn said they were
happy with the five union members working on the project and
wanted to hire 13 more. Ahn asked if Cagle could provide those
employees, and Cagle said he would. Later in the meeting,
Geren informed Ahn and Kim that under the terms of the agree-
ment, Respondent was required to hire all employees performing
covered work through the Union’s referral service. Geren
16.) Ahn noted the language on the referral forms regarding the deduc-
tions for union dues and assessments, and he informed Cagle that Re-
spondent had made the necessary deductions for those two helpers. At
the time, Ahn did not know the individual employees were to sign a doc-
ument authorizing the deductions, so he signed and returned the referral
forms to the Union. (R. Exh. 6.) Ahn testified none of the referral forms
he received from the Union were signed by employees, and he received
no other documents from the Union or the employees authorizing the
deduction and remittance of union dues or assessments. (Tr. 157–158.)
TK LLC
9
referred to another covered contractor that was not complying
with that requirement, and the Union sued. Ahn denied that the
company agreed to that condition, and he made it clear before he
signed the PLA that all employees would be hired and fired at-
will. Ahn stated the company never would have signed if they
knew it was an exclusive arrangement. (Tr. 128.) There was a
separate discussion at this meeting about Respondent performing
a project in the Las Vegas area. There was a discussion about
Respondent needing to hire employees for that project. Inghram
texted a contact he had at the local union in the Las Vegas area
and to get the local wage rates, which he shared with Kim and
Ahn. (Tr. 33.)
The following day, Ahn sent an email to those who attended
the meeting. He wrote that Respondent felt threatened by the
presence of the Union’s attorney, and reiterated what he had said,
but he confirmed the company wanted to move forward with its
plan to hire 13 more employees through the Union for the con-
struction project. (Jt. Exh. 17.) On around September 21, Cagle
sent Ahn referral forms for 13 union members in response to his
September 17 request. (Jt. Exh. 18.) Those 13 members were
Matthew H. Johnson, Adam R. Wilson, Tony L. Frazier, Jr.,
Phillip White, Steven Yearwood, James C. Balchin, Jr., Chad W.
Anderson, Frederick Joh, Joshua W. Ireland, Josh R. Cottrell, Ja-
cob Segars, Frank N. Matheson III, and Trevor Nichols.
8. Correspondence Terminating Agreement and Response
At some point between September 18 and 23, Ahn spoke with
the Genesys Sales Manager, Tim Fackler, about what Geren had
said at the September 17 meeting about the exclusivity provision.
Fackler later met with Ahn to review the language in the PLA
and the CBA. After reviewing, Fackler told Ahn the CBA re-
quired that the company hire its employees through the Union’s
referral service. Fackler then advised Ahn that the company
should withdraw from/terminate the agreement, and he helped
Ahn draft a letter for that purpose. (Tr. 130–131.)
On September 23, Ahn sent Cagle the letter, which stated
“. . . .it has never been TK LLC’s intent to enter into any ‘exclu-
sive’ agreement that would . . . .[r]equire [it] to utilize Local 72
or any other trade union or labor broker for provisions of ‘all’
labor per specific or identified assignment, location, or customer.
. . . We therefore request immediate withdraw and termination
without penalty of any and all obligations. . . of the . . . Project
Labor Agreement . . . inclusive of all context and terms of the
also noted CBA.” (Jt. Exh. 19.)
9. Meeting with Stapleton and September 25 Termination of
Employees and Refusal to Hire
On September 23, Ahn and Kim arranged to meet with Ran-
dall Stapleton, Sr., the project foreman. They thanked him for
his work but stated they had to terminate him and his crew be-
cause the company no longer had an agreement with the Union.
Ahn stated the company terminated the agreement because the
Union was requiring that it hire exclusively through the Union’s
referral service. Ahn told Stapleton, Sr., that they wanted him to
12 The forms also rated the employee’s individual performance. One
employee was rated “good” in three categories and “excellent” in seven,
while the other four were rated “excellent” in eight categories and “good”
in two.
continue working on the project, but they knew he could not be-
cause he was a union member. (Tr. 55, 133.) Stapleton, Sr.
asked if he and his crew could work the rest of the week, and
Kim agreed. They worked until September 25. (Tr. 55.)
On September 25, Ahn emailed Cagle and others at the Union
to inform them the company was terminating Stapleton, Sr., Sta-
pleton, Jr., Jackson, Alley, and Printz. (Jt. Exh. 23.) Each of the
Separation Forms stated the reason was the “termination of
agreement with [Union].” (Jt. Exh. 20.)12 Respondent also did
not hire or employ any of the 13 union members sent in response
to its September 17 request.
10. Post-Termination Events
On September 30, Respondent entered into an agreement with
Genesys to complete the work on the construction project. (R.
Exh. 3.)13 On October 7, Cagle emailed Ahn stating the Septem-
ber 23 “request to withdraw” from the PLA was denied, and the
terms of the agreement shall remain in full force and effect. Ca-
gle also warned that should it be determined that the company
has violated any terms of the PLA, the Union will take all avail-
able legal action to enforce the agreement. A week later, Cagle
hand-delivered a copy of the letter to Ahn. (Tr. 75–76) (Jt. Exhs.
20 and 22). Respondent thereafter continued to perform covered
work on the construction project without abiding by the terms of
the agreement and without recognizing and bargaining with the
Union.
DISCUSSION
A. Allegations
The General Counsel alleges that when Respondent executed
the PLA on June 11 it adopted and became bound to the CBA
and, thereby, agreed to recognize and bargain with the Union as
the exclusive bargaining-representative of all journeymen, ap-
prentices, tradesmen and helpers engaged in the installation of
all plumbing and/or pipe fitting systems and component parts
thereof employed by Respondent at the SKI Battery Plant project
in Commerce, Georgia and/or the Pipe Fabrication Shop located
in Jefferson, Georgia (collectively “unit employees”). The Gen-
eral Counsel further alleges that Respondent violated Section
8(a)(5) and (1) of the Act on September 23 when it terminated
the agreement prior to its expiration, and, thereafter, when it re-
pudiated/refused to honor the terms of that agreement, withdrew
recognition and failed to bargain in good faith with the Union as
the unit employees’ exclusive bargaining representative, and, on
September 25, when it discharged the five union employees and
rescinded its offer and refused to hire the 13 others referred by
the Union pursuant to the terms of the parties’ agreement and
Respondent’s September requests. The General Counsel also al-
leges that Respondent separately violated Section 8(a)(3) and (1)
of the Act when it discharged/refused to employ these 18 indi-
viduals based solely on their union membership. Respondent de-
nies it was bound to the CBA, and, therefore, had no obligation
to abide by the agreement, recognize and bargain with the Union,
13 The agreement provided that if Genesys completed the work before
that date, it would receive a bonus of $50,000 per day. But if the work
was not completed by that date, Genesys would have to pay a penalty of
$50,000 per day.
10
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
and/or hire or employ the employees at issue. As explained be-
low, I conclude that Respondent violated the Act as alleged.
B. Termination/Repudiation of Agreement and Withdrawal
of Recognition
This case involves an integrated agreement governed by Sec-
tion 8(f) of the Act.14 Under Section 8(f), employers and unions
in the construction industry are permitted to enter into collective-
bargaining agreements before the unions have established their
majority status. See John Deklewa & Sons, 282 NLRB 1375,
1385–1387 (1987), enfd. sub nom. Iron Workers Local 3 v.
NLRB, 843 F.2d 770 (3d Cir. 1988), cert. denied 488 U.S. 889
(1988).15 Employers may not repudiate the terms of a Section
8(f) agreement or withdraw recognition of the union as employ-
ees’ exclusive bargaining representative prior to expiration of the
agreement, unless those employees vote against union represen-
tation in a Board-conducted election. Id.
1. Respondent’s Execution of the PLA Bound it to the CBA
When determining whether a collective-bargaining agreement
has been formed or adopted, the Board does not strictly apply
common-law contract principles. See generally Transportation
Union v. Union Pacific Railroad Co., 385 U.S. 157, 160–161
(1966); John Wiley & Sons v. Livingston, 376 U.S. 543, 550
(1964); J.I. Case Co. v. NLRB, 321 U.S. 332, 334 (1944). See
also Intermountain Rural Electric Ass’n, 309 NLRB 1189, 1192
(1992); New Orleans Stevedoring Co., 308 NLRB 1076, 1081
(1992), and Crown Cork & Seal Co., 268 NLRB 1089, 1093
(1984). The critical inquiry is whether the parties reached a
“meeting of the minds” on all substantive issues and material
terms. Delta Sandblasting Co., Inc., 367 NLRB No. 17, slip op.
at 1 (2018); Sunrise Nursing Home, 325 NLRB 380, 389 (1998).
This inquiry focuses not on the parties’ subjective inclinations,
but by their intent as objectively manifested in what they said to
each other. MK-Ferguson Co., 296 NLRB 776, 776 fn. 2 (1989).
By its terms, the CBA applied to all employers that separately
executed a “letter of assent” or other document agreeing to be
bound to the CBA. Thus, the threshold issue is whether Re-
spondent agreed to be bound to the CBA when it executed the
14 Par. 6 of the General Counsel’s complaint alleges that Respondent
recognized the Union as the exclusive collective-bargaining representa-
tive of the unit employees without regard to whether the Union’s major-
ity status had been established under Sec. 9(a) of the Act. It further al-
leges that all material times since June 11, the Union has been the Sec.
9(a) bargaining representative of the unit employees. At the hearing, I
questioned the Union and Counsel for General Counsel whether the
agreement/relationship being alleged in this case was governed under
Sec. 8(f) or 9(a) of the Act, and both represented it was governed under
Sec. 8(f), not Sec. 9(a). (Tr. 85–90).
15 Construction industry employers can bind themselves to Sec. 8(f)
agreements by various means. For example, employers may enter into
8(f) agreements directly, through membership in multi-employer associ-
ations which bargain on their behalf. Employers that are not members of
a multi-employer association may also execute memoranda of under-
standing (“me-too” agreements) which bind them to agreements negoti-
ated by the union and the association. These “me-too” agreements may
bind an employer not only to an existing agreement, but to successor
master contracts negotiated between the employer association and union.
To determine an employer’s obligation under a “me-too” agreement, the
Board will look to the actual terms of the separate agreement(s)
PLA on June 11. The PLA plainly states “[t]he agreement is a
Collective Bargaining Agreement/Project Labor Agreement” be-
tween Respondent and the Union for the duration of its work on
the construction project and at the fabrication shop. This (capi-
talized) reference to the CBA and the PLA as a single, combined
agreement objectively reflects the parties’ intent to incorporate
the CBA into the PLA.16 From this language I conclude that Re-
spondent agreed to be bound to the terms of the CBA and to rec-
ognize and bargain with the Union as the unit employees’ exclu-
sive bargaining representative for the duration of its work on the
construction project and at the fabrication shop. See Laborers
Local 190 (VP Builders, Inc.), 355 NLRB 532, 534–535
(2010).17
This conclusion is further bolstered by the circumstances sur-
rounding the parties’ execution of the PLA. When Ahn first con-
tacted Cagle about supplying employees for the construction
project, Cagle told him Respondent would need to sign an agree-
ment with the Union covering the project. Cagle then described,
in general, the terms contained in the CBA, including the hir-
ing/referral process. Following that meeting, Cagle emailed Ahn
a copy of the CBA with the subject line “CBA for PLA.” He
then emailed Ahn a copy of the PLA for signature. Ahn read
both documents before forwarding them to Kim and asking him
to sign and return the PLA. Ahn informed Kim that although he
did not fully understand the 62-page CBA, he believed it was
what the Union was “required to give to” Respondent, equating
it to a covenants, conditions, and restrictions report that sellers
are required to provide to buyers to advise them of additional
terms governing the use of the conveyed real estate property.
2. Parties’ Conduct is Sufficient to Bind Respondent to
the CBA
Assuming arguendo the language of the PLA is not sufficient
to bind Respondent to the CBA, the Board has held that adoption
of a collective-bargaining agreement is not dependent on the par-
ties reducing their intent to be bound to writing; instead, it will
be established by substantial conduct manifesting an intent to be
bound. See e.g., Asbestos Workers Local 84 (DST Insulation,
Inc.), 351 NLRB 19, 19–20 (2007) This “adoption by conduct”
referenced in the “me-too” document it signs. If those separate agree-
ments have automatic renewal provisions, those renewal provisions will
be given effect and bind the non-signatory “me-too” employer to the con-
tinuation of the agreements. Taylor Ridge Paving & Construction, Co.,
365 NLRB No. 168, slip op. at 3 (2017) (internal citations omitted).
16 Given the PLA’s language, I reject Respondent’s arguments that it
is a “word salad” that contains no substantive terms, imposes no obliga-
tions and bestows no benefits on either party, and does not incorporate
by reference any other document(s). While the PLA, standing alone,
lacks certain terms typically found in a self-contained collective-bargain-
ing agreement, it includes one key term: the duration of the parties’
agreement.
17 Respondent argues that even if the language in the PLA was suffi-
cient to bind Respondent to the CBA, it terminated that agreement the
following day when Ahn emailed Cagle that the company no longer
needed employees and that Cagle should void out the agreement and the
parties would re-write a new one when Respondent was ready to hire.
As stated, an 8(f) agreement may not be unilaterally terminated prior to
its expiration, and as stated below, Respondent’s conduct subsequent to
that email is consistent with a continuing intent to be bound to the agree-
ment.
TK LLC
11
doctrine applies equally to Section 8(f) agreements. See E.S.P.
Concrete Pumping, Inc., 327 NLRB 711, 712 (1999). The Board
reasoned that “[n]othing in the legislative history of Section 8(f)
indicates that Congress intended employers to obtain free the
benefits of stable labor costs, labor peace, and the use of the un-
ion hiring hall. Having had the music, he must pay the piper.”
DST Insulation, supra at slip op. at 9 (quoting Jeff McNeff, Inc.
v. Todd, 461 U.S. 260, 271 (1983)).
No one factor is determinative in deciding whether there has
been substantial conduct sufficient to bind the employer to an
agreement. Some factors the Board considers are whether the
employer pays wages and makes fringe benefit contributions in
accordance with the collective-bargaining agreement, honors an
agreement’s union-security clause, deducts and remits union
dues, uses the union hiring hall to secure employees, corresponds
with the union in a manner consistent with the status of a union
contractor, holds itself out as a union contractor to obtain bene-
fits, appoints union stewards, and submits reporting forms stat-
ing it is in compliance with the terms of the collective-bargaining
agreement. See DST Insulation, Inc., supra (employer mani-
fested intent to be bound by paying new contractual wages rates,
making fringe benefit contributions, acquiescing to a stipulated
judgement in federal court and paying the amounts owed under
the agreement, honoring the union-security clause and deducting
and remitting union dues, and using the union’s exclusive hiring
hall to secure employees); Cab Associates, 340 NLRB 1391
(2003) (employer manifested intent to be bound by paying con-
tractual wages including premium pay for union stewards, de-
ducting and remitting union dues, submitting the necessary
forms and contributions to the pension and welfare funds, and
otherwise holding itself out as a union employer on jobsites);
E.S.P. Concrete Pumping, Inc., supra (employer found to be
bound to agreement by applying its terms for a year, holding it-
self out as a union contractor, and acquiescing in a judgment
against it for unpaid contributions to the union’s pension fund);
Haberman Construction Co., 236 NLRB 79, 85–86 (1978), enfd.
641 F.2d 351 (5th Cir. 1981) (employer found to be bound by
consistently contributing to the union benefit funds for 4 years,
using the union’s referral service and exclusively employing un-
ion members, paying union scale, observing contractual holi-
days, and appointing union job steward); and Vin James Plas-
tering Co., 226 NLRB 125 (1976) (employer found to be bound
by paying contractual wages and benefits over a 16-month pe-
riod, checking off and remitting union dues, paying union benefit
funds, and submitting forms stating it was complying with the
terms of the agreement).
From mid-June (following Ahn’s June 12 “void out the agree-
ment” email) through mid-September, Respondent hired all its
employees for the construction project through the Union’s re-
ferral service and paid wages and fringe benefits in accordance
with the CBA and the Addendum. It also completed and submit-
ted reporting forms when it made benefit fund contribution pay-
ments. Further, Respondent began deducting and remitting un-
ion dues and assessments once it was notified and asked to do
so. Finally, in early August, when the issue arose over whether
Stapleton, Jr. should have been paid overtime for work done on
a Saturday, Ahn acknowledged the CBA applied when he quoted
language from Article Six in his email to Cagle. Ahn asked
Cagle for clarification as to the correct interpretation of that lan-
guage to ensure that payroll had no further issues applying that
provision, particularly since Respondent planned to hire more
helpers through the Union for the project. As such, I conclude
that Respondent engaged in substantial conduct manifesting its
intent to be bound to the CBA.
In its defense, Respondent cites to Cimato Brothers, Inc., 352
NLRB 797, 800 (2008), and Harry Asato Painting, Inc., 362
NLRB 871, 879 (2015) for support as to why it did not adopt the
CBA by its conduct. Neither has any precedential value. Cimato
Brothers is a two-member Board decision that was not subse-
quently adopted by the Board or the Court of Appeals after New
Process Steel, LP v. NLRB, 560 U.S. 674 (2010). In Harry Asato
the Board adopted the administrative law judge’s findings on the
relevant issues in the absence of exceptions. See Whirlpool
Corp., 337 NLRB 726, 727 fn. 4 (2002), enfd. mem. 174 LRRM
2480 (6th Cir. 2004). Regardless, the cases are distinguishable.
In Cimato, the Board found no adoption by conduct because the
employer did not apply the agreements to its nonunion employ-
ees, dealt directly with both union and nonunion employees re-
garding wages and benefits, consistently maintained it was not
bound by any agreements with the union, and never held itself
out as a union-signatory contractor to obtain work. Respondent
argues the first and last of these factors are also true here. That
argument ignores the fact that Respondent sought out the Un-
ion’s assistance in providing qualified employees and, in the pro-
cess, signed an agreement adopting the CBA as a condition prec-
edent to having access to those employees. In Harry Asato, the
judge found adoption by conduct because the employer obtained
benefits from being a union contractor, such as paying less than
the prevailing wage, receiving a 5-percent bid discount by certi-
fying its apprentices were enrolled in the union’s apprenticeship
program and obtaining lien-release letters from the union to se-
cure payment from contractors. Respondent argues those factors
do not exist here. Again, that argument ignores or trivializes the
benefit Respondent received, which was the Union’s dedicated
assistance in providing qualified employees at a time when Re-
spondent needed them for the construction project. Additionally,
at the September 17 meeting, when Respondent sought assis-
tance regarding a separate project in Las Vegas, the Union pro-
vided information to assist Respondent in getting qualified em-
ployees for that project.
Respondent argues that it withheld and paid union dues “for
only a handful of employees over a handful of weeks” and that
such conduct was a technical violation of the Labor-Manage-
ment Relations Act because the Union did not provide the nec-
essary authorizations to make those deductions. The record re-
flects that from at least the point in August when the Union re-
quested that Respondent deduct and remit union dues and assess-
ments, Respondent did so, and continued to do so, until it termi-
nated the parties’ agreement. And while Section 302(c)(4) of the
Labor-Management Relations Act permits payroll dues deduc-
tions from bargaining unit employees’ wages only when the em-
ployee has provided the employer a written assignment to do so,
the Union’s failure to provide those written assignments is not a
defense to Respondent’s termination or repudiation of the par-
ties’ agreement, particularly when there is no evidence Respond-
ent would have maintained the agreement had it received those
12
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
written assignments. See generally, Gadsden Tool, Inc., 340
NLRB 29 (2003), enfd 116 Fed.Appx 245 (11th Cir. 2004); Wil-
liams Pipeline Co., 315 NLRB 630 (1994). Furthermore, when
Ahn and Kim testified as to why they terminated the agreement,
the Union’s failure to provide the written assignments was never
mentioned as a reason.
Respondent next argues that if there was an agreement (to use
the referral service), it was not an exclusive agreement. Having
found the parties signed the PLA incorporating the CBA, Re-
spondent was bound by the exclusivity provision therein.18 Re-
spondent’s conduct further establishes its intent to be bound. Re-
spondent indicated, both before and after execution of the PLA,
that it intended to rely upon the Union to supply additional em-
ployees to work on the construction project and it acted accord-
ingly. For the next 3 months, every employee it hired for that
project came through the Union’s referral service. As stated, the
Board has held an employer cannot reap the benefits of accessing
the union’s referral service to obtain qualified employees with-
out paying the cost, which, in this case, is agreeing to be bound
to the terms of the CBA, including the exclusivity provision.
3. Respondent’s Remaining Defenses
Respondent also appears to argue that it would not have exe-
cuted the PLA had it known it would be bound to the exclusivity
provision, suggesting that it was somehow misled. In Horizon
Group of New England, 347 NLRB 795, 797 (2006), the Board
recognized the “fraud in execution” defense, stating:
“‘Fraud in the execution’ arises when a party executes an
agreement ‘with neither knowledge nor reasonable opportunity
to obtain knowledge of its character or its essential terms.”’
Southwest Administrators, Inc. v. Rozay’s Transfer, 791 F.2d
769, 774 (9th Cir. 1986). “To maintain a defense of fraud in the
execution, [an employer] would have to establish ‘excusable
ignorance of the contents of the writing signed.”‘ Id. See also,
Iron Workers’ Local 25 Pension Fund v. Allied Fence and Se-
curity Systems, 922 F. Supp. 1250, 1259 (E.D. Mich. 1996)
(“excusable ignorance” standard not satisfied solely by virtue
of union misrepresentation where employer had subsequent
opportunity to review the agreement before signing it); Positive
Electrical Enterprises, 345 NLRB 915, 921 (2005) (no fraud
in the execution found where employer had the opportunity to
read the one-page letters of assent; judge discredited assertion
that employer had no understanding of what he was signing);
Laborers’ Pension Fund v. A & C Environmental, Inc., 301
F.3d 768. 780–781 (7th Cir. 2002) (“fraud in the execution”
18 During their June 8 meeting, Cagle generally explained to Ahn the
terms in the CBA, including the hiring/referral process. In his June 10
text message, Ahn asked Cagle to confirm that if the company decided
to hire the individuals the Union sent, those individuals would still need
to fill out an employment application and their employment would be at-
will and could be terminated for any reason. Cagle stated the Union was
an at-will labor organization. Respondent argues this exchange, along
with the fact that it already employed 30 hourly (nonunion) employees
on the construction project prior to signing the PLA, manifests its intent
not to have an exclusive referral arrangement. I reject that argument.
Cagle’s response was consistent with Article Four of the CBA, which
states covered employers must go through the Union’s referral service to
defense not established where employer’s claimed “ignorance
of the nature of the contract was not excusable.”).
These factors are not met in this case. Respondent has not
shown that, at the time it signed the PLA, it did not know the
character or essential terms of the incorporated CBA, including
the exclusivity provision. Even if Respondent did not fully un-
derstand the implications of signing the PLA as it relates to the
CBA and the exclusivity provision, the defense would still fail
because Respondent has not shown that it did not have a reason-
able opportunity to obtain knowledge of the document’s charac-
ter or its essential terms. As discussed, the PLA incorporates the
CBA, and the Union provided a complete copy of the CBA be-
fore Respondent signed the PLA, which Ahn admittedly read and
understood to apply to the parties’ arrangement prior to telling
Kim to sign and return it.
Respondent next points to Ahn and Kim’s lack of knowledge
and experience with unions and labor agreements, their cultural
differences being from Korea, and limited understanding of the
English language. Inexperience or ignorance of the law are not
recognized defenses. See Clinton Packing Co., Inc., 191 NLRB
879, 884 (1971). Nor is failing to read and fully understand a
contract before signing it. See generally Jon P. Westrum d/b/a
J. Westrum Electric, 365 NLRB No. 151, slip op. at 12 (2017),
enfd. 753 Fed.Appx. 421 (mem. unpub.) (8th Cir. 2019), cert.
denied __ U.S. __, 140 S.Ct. 2771 (2020); Morton Electric, 314
NLRB 466, 468 (1994). Although Ahn may have had limited
experience in labor relations, he is a real estate agent, familiar
with the importance of negotiating, drafting, and carefully re-
viewing contract language. Rather than obtaining counsel to un-
derstand what exactly they were agreeing to, Ahn and Kim
rushed to sign the PLA to get the Union’s help in supplying
needed employees for the project.
Overall, I conclude Respondent adopted and agreed to be
bound by the CBA, without modification, and, thereby, agreed
to recognize and bargain with the Union as the unit employees’
exclusive bargaining representative for the duration of its work
on the construction project and at the fabrication shop.19 As a
result, I conclude that Respondent violated Section 8(a)(5) and
(1) of the Act on September 23 when it prematurely terminated
the 8(f) agreement prior to its expiration and, thereafter, when it
repudiated/refused to honor the terms of that agreement and
when it withdrew recognition from, and failed to bargain in good
obtain employees to perform covered work, but they retain the right to
not hire or to later fire those referred by the Union, so long as that right
is exercised on a non-discriminatory basis.
19 As stated, Art. One, Sec. 2 of the CBA states those employers to
whom the Union has not yet demonstrated its majority status agree to
recognize the Union as a bargaining representative for those employees
who were referred or should have been referred by the Union. The five
employees terminated and the 13 others who were not employed were all
referred by the Union to work for Respondent on the construction project
in accordance with the CBA and in response to Respondent’s early and
mid-September requests for referrals.
TK LLC
13
faith with, the Union as the unit employees’ exclusive bargaining
representative.20
C. Termination/Refusal to Hire Referred Employees
About 2 days after prematurely terminating/repudiating the
agreement, Respondent discharged Randall Stapleton, Sr., Ran-
dall Stapleton, Jr., Mathew Jackson, Jesse Alley, and Dustin
Printz and rescinded its offer and refused to hire Matthew H.
Johnson, Adam R. Wilson, Tony L. Frazier, Jr., Phillip White,
Steven Yearwood, James C. Balchin, Jr., Chad W. Anderson,
Frederick Joh, Joshua W. Ireland, Josh R. Cottrell, Jacob Segars,
Frank N. Matheson III, and Trevor Nichols. The General alleges
these adverse actions violated Section 8(a)(5) and (3), and, de-
rivatively, Section (8)(a)(1) of the Act.21
These 18 individuals were all referred by the Union to work
for Respondent pursuant to the terms of the CBA and Respond-
ent’s September requests. As discussed, Article 4 of the CBA
gives Respondent the right to hire and to discharge referred em-
ployees provided that “such rights shall be exercised on a
non-discriminatory basis and shall not be based on, or be in any
way affected by, . . . union membership, bylaws, rules, regula-
tions, constitutional provisions or any other aspect or obligation
of union membership, policies or requirements.” Respondent
discharged/refused to employ these individuals solely because of
their union membership. By taking these actions, Respondent
unilaterally repudiated/failed to honor the non-discrimination
provision, without bargaining with the Union, in violation of
Section 8(a)(5) and (1).22
The parties’ briefs focus exclusively on the 8(a)(3) allegation.
Section 8(a)(3) makes it unlawful for an employer to discrimi-
nate in regard to hire or tenure of employment or any term or
condition of employment to encourage or discourage member-
ship in any labor organization. When assessing the lawfulness
of an adverse action that turns on employer motivation, the
Board applies the analytical framework set forth in Wright Line,
251 NLRB 1083 (1980), enfd. 662 F.2d 899 (1st Cir. 1981), cert.
denied 455 U.S. 989 (1982), approved by NLRB v. Transporta-
tion Management Corp., 462 U.S. 393, 395 (1983). Under that
framework, the General Counsel must initially show that: (1) the
employee engaged in Section 7 activity, (2) the employer knew
of that activity, and (3) the employer had animus against the Sec-
tion 7 activity. If the General Counsel establishes these factors,
the burden shifts, and the employer must show it would have
20 The Union, in its posthearing brief, claims Respondent failed to
provide it with requested information in violation of Section 8(a)(5) of
the Act. There is no allegation in the complaint or raised at the hearing
about a failure to provide requested information. The General Counsel is
the “master of the complaint and controls the theory of the case.” Fine-
berg Packing Co., 349 NLRB 294, 296 (2007). “A charging party may
not expand the scope of the complaint without the consent of the General
Counsel.” Planned Building Services, 330 NLRB 791, 793 fn. 13 (2000).
I, therefore, need not address this claim.
21 In its answers, Respondent raises various affirmative defenses. It
appears to have abandoned those defenses by not presenting evidence or
argument in support. One of those defenses is deferral of the underlying
charge. Even if this was not abandoned, the Board will not defer when,
as here, the party has wholly repudiated the agreement that allows for
arbitration in the first place. Littlejohn Electric Solutions, LLC, 368
NLRB No. 76, slip op. at 1 fn. 1 (2019).
taken the same action in the absence of the protected activity.
However, in NLRB. v. Great Dane Trailers, Inc., 388 U.S. 26
(1967), the Supreme Court held that if it reasonably can be con-
cluded that the employer’s discriminatory conduct was “inher-
ently destructive” of important employee rights, no proof of an-
imus is needed, and the Board can find an unfair labor practice
even if the employer introduces evidence that the conduct was
motivated by business considerations. Alternatively, if the ad-
verse effect of the discriminatory conduct on employee rights is
“comparatively slight” animus must be proven to sustain the
charge if the employer has come forward with evidence of legit-
imate and substantial business justifications for the conduct.
Respondent discharged/refused to employ these 18 individu-
als following its premature termination/repudiation of the par-
ties’ agreement because of their Union affiliation. In Jack Welsh
Co., Inc., 284 NLRB 378 (1987), the Board adopted the judge’s
finding that the employer violated 8(a)(3) when it discharged
employees solely because of their union membership. The em-
ployer was bound to an expiring 8(f) agreement and wanted to
become an “open shop.” Once the agreement expired, the em-
ployer’s owner notified the union that he would not be signing a
new agreement. He also advised the job foreman that he was
“getting out of the Union.” He instructed the foreman to give the
men their final paychecks and to tell them that “he was not going
to have a union anymore—that he dropped union membership.”
Thereafter, the company hired about seven new employees, none
of whom were union members. The judge rejected the em-
ployer’s defense that he assumed the union employees would not
work for him under “open shop” conditions; thus, he “in effect
accepted their resignations before they were offered.” The judge
held it was incumbent upon the employer to make known its de-
cision to change their employment conditions and give them an
opportunity to decide whether to continue working before uni-
laterally making the decision for them. The Board adopted the
judge’s findings that under the circumstances, without any addi-
tional evidence of animus beyond these statements, the termina-
tions were effectuated to discourage membership in the Union,
in violation of Section 8(a)(3).
On this allegation, Respondent cites to Hawaiian Dredging
Construction Co., Inc., 368 NLRB 7 (2019) for support. In that
case, the Board ultimately held the employer did not violate Sec-
tion 8(a)(3) when it discharged all its union welders upon expi-
ration of the parties’ 8(f) agreement. For at least 20 years, the
22 Although the General Counsel does not advance the legal theory
upon which I am finding a violation, I find it is appropriate to exercise
my discretion in this manner. See DirectSat USA, LLC, 366 NLRB No.
40, slip op. at 8 fn. 22 (2018) (cases cited therein) (Board upheld a vio-
lation on a different theory than that pursued by the General Counsel
where the violation was alleged in the complaint, the factual basis for the
violation was clear from the record, the law was well established, and no
due process concerns were implicated). The 8(a)(5) complaint allegation
regarding the discharges/refusal to employ these individuals is suffi-
ciently broad to encompass this legal theory. It alleges that Respondent
took these adverse actions after terminating and later repudiating the
terms of the agreement, without bargaining with the Union. Respondent
argued that it had no obligation to abide by the terms of the agreement or
to bargain with the Union because there was no agreement. As a result,
there also are no due process implications because the parties fully liti-
gated the repudiation issues.
14
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
employer performed all its work requiring craft labor under 8(f)
agreements. After the parties were unable to agree on the terms
for a successor agreement, the employer terminated its 8(f)
agreement. Thereafter, the employer ceased performing all
welding work and discharged its 13 union-represented welders,
citing to the expiration of the contract as the reason. About a
week later, the employer signed a new 8(f) agreement with an-
other union which covered welding work. The employer notified
the 13 discharged welders they could return to work with the
company, but they would need to go through the new union’s
referral process. A complaint was filed alleging the discharges
violated 8(a)(3).
The Board majority (McFerran dissenting) dismissed the com-
plaint, holding the post-contract discharges were consistent with
the employer’s longstanding practice of only performing craft
work under a collective-bargaining agreement, which it no
longer had at the time of the discharges. The majority concluded
the employer showed it had a legitimate and substantial business
justification under Great Dane, the General Counsel failed to
demonstrate union animus, and, alternatively, the employer
proved under Wright Line that it would have discharged the em-
ployees anyway based on its longstanding practice.
I find Hawaiian Dredging Construction to be inapposite. Re-
spondent terminated/repudiated the parties’ 8(f) agreement prior
to its expiration and did so in direct response to the Union’s
threat to enforce the exclusivity provision, which would interfere
with Respondent’s plans to subcontract the remainder of the cov-
ered work to Genesys. Ahn and Kim told Stapleton, Sr. during
their September 23 meeting that the Union’s threat led Respond-
ent to terminate/repudiate the agreement and, as a result, dis-
charge Stapleton, Sr., and his crew. An employer that terminates
employees as part of a plan to escape the obligations under a col-
lective-bargaining agreement engages in conduct “inherently de-
structive of important employee rights.” Swift Independent
Corp., 289 NLRB 423, 429, fn. 14 (1988), affd. in rel. part sub
nom. Esmark, Inc. v. NLRB, 887 F.2d 739 (7th Cir. 1989) (em-
ployer’s opening of non-union plant and repudiation of collec-
tive bargaining agreement was inherently destructive and com-
municated that collective bargaining was a “futile exercise”); D
& S Leasing, 299 NLRB 658, 660–661 (1990), enfd. sub nom
NLRB v. Centra, 954 F.2d 366 (6th Cir. 1992) (termination of
labor agreement so employer could pay lower wages was inher-
ently destructive; analogous to unlawful sham closing of facility
in order to reopen under more favorable terms).
Under the circumstances, these adverse actions which were a
direct result of Respondent’s premature termination/repudiation
of the parties’ agreement are both inherently destructive and
strong evidence of union animus. Furthermore, Respondent has
failed to present a legitimate and substantial business justifica-
tion for taking these actions and failed to prove that it would have
taken the same actions in the absence of the Union threatening
to enforce the exclusivity provision. As a result, these dis-
charges/refusals to employ also violated Section 8(a)(3) and (1)
of the Act.
23 If no exceptions are filed as provided by Sec. 102.48 of the Board’s
Rules and Regulations, the findings, conclusions, and recommended
CONCLUSIONS OF LAW
1. Respondent, TK, LLC, is an employer engaged in com-
merce within the meaning of Section 2(2), (6), and (7) of the Act.
2. Charging Party, Plumbers and Pipefitters Local 72, United
Association of Journeymen and Apprentices of the Plumbing and
Pipe Fitting Industry of the United States and Canada, AFL–CIO
(Union), is a labor organization within the meaning of Section
2(5) of the Act.
3. On June 11, 2020, Respondent entered into a project labor
agreement with the Union binding it to the Union’s agreement
with the Mechanical Contractors Association of Georgia, Inc.
(Association) whereby it agreed to recognize and bargain with
the Union as the exclusive collective-bargaining representative
of all its journeymen, apprentices, tradesmen and helpers en-
gaged in the installation of all plumbing and/or pipe fitting sys-
tems and component parts thereof employed by Respondent at
the SKI Battery Plant project in Commerce, Georgia (construc-
tion project) and/or the Pipe Fabrication Shop located in Jeffer-
son, Georgia (fabrication shop) (collectively “unit employees”)
for the duration of its work at those locations.
4. Respondent violated Section 8(a)(5) and (1) of the National
Labor Relations Act (Act) when it notified the Union on Septem-
ber 23, 2020 that it was terminating their agreement prior to its
expiration, and, later, when it repudiated/refused to honor the
terms of the agreement, withdrew recognition from the Union
and thereby failed and refused to bargain in good faith with the
Union as the unit employees’ exclusive collective-bargaining
representative, and on September 25, 2020, when it discharged
the five Union employees and rescinded its offer and refused to
hire the 13 others referred by the Union pursuant to the terms of
the agreement and Respondent’s September requests.
5. Respondent violated Section 8(a)(3) and (1) of the Act on
September 25 when it discharged Randall Stapleton, Sr., Randall
Stapleton, Jr., Mathew Jackson, Jesse Alley, and Dustin Printz
and rescinded its offer and refused to hire Matthew H. Johnson,
Adam R. Wilson, Tony L. Frazier, Jr., Phillip White, Steven
Yearwood, James C. Balchin, Jr., Chad W. Anderson, Frederick
Joh, Joshua W. Ireland, Josh R. Cottrell, Jacob Segars, Frank N.
Matheson III, and Trevor Nichols because they joined or assisted
the Union and engaged in concerted activities, and to discourage
employees from engaging in those activities.
6. Respondents’ unfair labor practices affect commerce
within the meaning of Section 2(6) and (7) of the Act.
On the findings of fact and conclusions of law herein, and on
the entire record in this case, I issue the following recom-
mended23
REMEDY
As a remedy for these unfair labor practices, Respondent is
ordered to cease and desist from its unlawful conduct and to take
certain affirmative action. Respondent will be required to rein-
state Randall Stapleton, Sr., Randall Stapleton, Jr., Mathew Jack-
son, Jesse Alley, and Dustin Printz to their former positions or,
if that position no longer exists, to a substantially equivalent po-
sition, without prejudice to their seniority or any other rights or
Order shall, as provided in Sec. 102.48 of the Rules, be adopted by the
Board and all objections to them shall be deemed waived for all purposes.
TK LLC
15
privileges previously enjoyed. Respondent also will be required
to employ Matthew H. Johnson, Adam R. Wilson, Tony L. Fra-
zier, Jr., Phillip White, Steven Yearwood, James C. Balchin, Jr.,
Chad W. Anderson, Frederick Joh, Joshua W. Ireland, Josh R.
Cottrell, Jacob Segars, Frank N. Matheson III, and Trevor Nich-
ols in the positions for which they were referred on about Sep-
tember 21, 2020, or, if that position no longer exists, to a sub-
stantially equivalent position, without prejudice to their seniority
or any other rights or privileges previously enjoyed. Respondent
shall make each individual whole for any loss of earnings and
other benefits suffered as a result of its unlawful termination/re-
fusal to employ on about September 25, 2020.24
The make-
whole whole remedy for each individual shall be computed in
accordance with F. W. Woolworth Co., 90 NLRB 289 (1950),
with interest at the rate prescribed in New Horizons, 283 NLRB
1173 (1987), compounded daily as prescribed in Kentucky River
Medical Center, 356 NLRB 6 (2010). In accordance with King
Soopers, Inc., 364 NLRB 1153 (2016), enfd. in relevant part 859
F.3d 23 (D.C. Cir. 2017), Respondent also will be ordered to
compensate these individuals for their search-for-work and in-
terim employment expenses regardless of whether those ex-
penses exceed their interim earnings. Search-for-work and in-
terim employment expenses shall be calculated separately from
taxable net backpay, with interest at the rate prescribed in New
Horizons, supra, compounded daily as prescribed in Kentucky
River Medical Center, supra. In accordance with Don Chavas,
LLC d/b/a Tortillas Don Chavas, 361 NLRB 101 (2014), Re-
spondent also shall be ordered to compensate each of the indi-
viduals for the adverse tax consequences, if any, of receiving a
lump sum backpay award. In accordance with AdvoServ of New
Jersey, Inc., 363 NLRB 1324 (2016), Respondent will also be
ordered to file with the Regional Director for Region 10, within
21 days of the date the amount of backpay is fixed either by
agreement or Board order, a report allocating backpay to the ap-
propriate calendar year for each. The Regional Director will then
assume responsibility for transmission of the report to the Social
Security Administration at the appropriate time and in the appro-
priate manner. In accordance with Cascades Containerboard
Packing-Niagara, 370 NLRB No. 76 (2021), as modified 371
NLRB No. 25 (2021), Respondent also will be ordered to file
with the Regional Director, within 21 days of the date the amount
of backpay is fixed either by agreement or Board order, copies
of each individual’s corresponding W-2 forms reflecting the
backpay awards.
As for the remaining violations, Respondent is ordered to rec-
ognize and bargain with the Union as the exclusive collective-
bargaining representative of the unit employees and to honor and
comply with the terms and conditions of the 2018–2021 area col-
lective-bargaining agreement between the Union and the Asso-
ciation, and any automatic renewal or extension of it, for the du-
ration of its work on the construction project and fabrication
shop. To the extent not already addressed in the prior para-
graphs, Respondent shall make the unit employees whole for any
loss of earnings and other benefits they may have suffered as a
24 To the extent that the General Counsel requests consequential dam-
ages, I deny the request but note that the issue is currently under review
by the Board. See Thryv, Inc., 371 NLRB No. 37 (2021).
result of the Respondent’s unlawful conduct in the manner set
forth in forth in Ogle Protection Service, 183 NLRB 682 (1970),
enfd. 444 F.2d 502 (6th Cir. 1971), with interest as prescribed in
New Horizons, 283 NLRB 1173 (1987), compounded daily as
prescribed in Kentucky River Medical Center, 356 NLRB 6
(2010). In addition, Respondent will make all contractually re-
quired fringe benefit fund contributions, if any, that were not
made since its unlawful termination/repudiation, including any
additional amounts due the funds in accordance with Merry-
weather Optical Co., 240 NLRB 1213, 1216 fn. 7 (1979). Fur-
ther, the Respondent shall reimburse the unit employees for any
expenses ensuing from its failure to make the required contribu-
tions, as set forth in Kraft Plumbing & Heating, 252 NLRB 891
fn. 2 (1980), enfd. mem. 661 F.2d 940 (9th Cir. 1981). Respond-
ent also will compensate affected employees for the adverse tax
consequences, if any, of receiving lump-sum backpay awards,
and file with the Regional Director for Region 10, within 21 days
of the date the amount of backpay is fixed, either by agreement
or Board order, a report allocating the backpay awards to the ap-
propriate calendar years for each employee, in accordance with
AdvoServ of New Jersey, Inc., 363 NLRB 1324 (2016). In ac-
cordance with the Board decision in Cascades Containerboard
Packaging–Niagara, 370 NLRB No. 76 (2021), as modified in
371 NLRB No. 25 (2021), the Respondent shall also be required
to file with the Regional Director for Region 10 a copy of each
backpay recipient’s corresponding W-2 form(s) reflecting the
backpay award.
ORDER
Respondent, TK, LLC, its officers, agents, successors, and as-
signs shall
1. Cease and desist from
(a) Withdrawing recognition from and failing to bargain with
the Union as the exclusive collective-bargaining representative
of the unit employees for the duration of its Section 8(f) project
labor agreement (incorporating the area collective-bargaining
agreement between the Union and the Association) with the Un-
ion.
(b) Terminating, repudiating, or otherwise failing to abide by
the above agreement.
(c) Terminating, refusing to hire, or otherwise discriminating
against employees because of their membership in, activities on
behalf of, or referral from the Union, or any other labor or organ-
ization.
(d) In any like or related manner interfering with, restraining,
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 effectu-
ate the policies of the Act.
(a) Honor and comply with the terms and conditions of the
project labor agreement (incorporating the area collective-bar-
gaining agreement) for the duration of its work at the construc-
tion project and the fabrication shop.
(b) Make whole all bargaining unit employees for any loss of
16
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
earnings and other benefits suffered as a result of its repudia-
tion/failure to honor the above agreement.
(c) Make all contractually required contributions to the Un-
ion’s fringe benefit funds that Respondent has failed to make
since about September 25, 2020, and reimburse employees, with
interest, for any expenses resulting from our repudiation/failure
to make the required payments under the above agreement.
(d) Make whole Randall Stapleton, Sr., Randall Stapleton II,
Mathew Jackson, Jesse Alley, and Dustin Printz for their unlaw-
ful discharge; make each whole for reasonable search-for-work
and interim employment expenses, plus interest; compensate
each for the adverse tax consequences, if any, of receiving a
lump-sum backpay award; file with the Regional Director for
Region 10, within 21 days of the date the amount of backpay is
fixed, either by agreement or Board order, a report allocating the
backpay award to the appropriate calendar year(s); file with the
Regional Director for Region 10 a copy of corresponding W-2
forms for each reflecting the backpay award; remove from our
files any reference to these unlawful discharges, and within 3
days thereafter, notify each in writing that this has been done and
that their discharge will not be used against them in any way.
(e) Make whole Matthew Johnson, Adam Ryan Wilson, Tony
Lamar Frazier, Jr., Phillip K. White, Steven H. Yearwood, James
C. Balchin, Jr., Chad W. Anderson, Frederick Joh, Joshua Wil-
liam Ireland, Josh Rodney Cottrell, Jacob D. Segars, Frank Noel
Matheson, III and Trevor Nichols for the unlawful refusal to em-
ploy; make each whole for reasonable search-for-work and in-
terim employment expenses, plus interest; compensate each for
the adverse tax consequences, if any, of receiving a lump-sum
backpay award; file with the Regional Director for Region 10,
within 21 days of the date the amount of backpay is fixed, either
by agreement or Board order, a report allocating the backpay
award to the appropriate calendar year(s); file with the Regional
Director for Region 10 a copy of corresponding W-2 forms for
each reflecting the backpay award; remove from our files any
reference to these unlawful discharges, and within 3 days there-
after, notify each in writing that this has been done and that their
discharge will not be used against them in any way.
(f) Compensate all unit employees for any adverse income tax
consequences of receiving a lump- sum backpay award, and file
with the Regional Director for Region 10, within 21 days, a re-
port allocating the backpay award to the appropriate calendar
years for each employee.
(g) Recognize and, upon request, bargain in good faith with
the Union as the exclusive collective-bargaining representative
of the unit employees for the duration of its work at the construc-
tion project and the fabrication shop.
(h) Within 14 days after service by the Region, post at the
construction project and the fabrication shop the attached notice
marked “Appendix.”25 If the locations involved in these proceed-
ings are open and staffed by a substantial complement of employ-
ees, the notices must be posted within 14 days after service by the
Region. If the locations involved in these proceedings are closed
due to the COVID–19 pandemic, the notices must be posted
25 If this Order is enforced by a judgment of a United States court of
appeals, the words in each of the notices referenced herein reading
“Posted by Order of the National Labor Relations Board” shall read
within 14 days after the location reopens and a substantial com-
plement of employees have returned to work, and the notices may
not be posted until a substantial complement of employees have
returned to work. Any delay in the physical posting of paper no-
tices also applies to the electronic distribution of the notice if cus-
tomarily communicates with its employees by electronic means.
Copies of the notice, on forms provided by the Regional Director
for Region 10, after being signed by Respondent’s authorized rep-
resentative, shall be posted by Respondent and maintained for 60
consecutive days in conspicuous places including all places
where notices to employees/members are customarily posted. In
addition to physical posting of paper notices, the notices shall be
distributed electronically, such as by email, posting on an intranet
or an internet site, and/or other electronic means, if Respondent
customarily communicates with its employees/members by such
means. Reasonable steps shall be taken by Respondent to ensure
that the notices are not altered, defaced, or covered by any other
material. In the event that, during the pendency of these proceed-
ings, Respondent has gone out of business or closed the facility
involved in these proceedings, Respondent shall duplicate and
mail, at its own expense, a copy of the notice to all current and
former members of the Union and current and former employees
employed by Respondent at any time since September 23, 2020.
(i) Within 21 days after service by the Region, file with the
Regional Director for Region 10 a sworn certification of a re-
sponsible official on a form provided by the Region attesting to
the steps that Respondent has taken to comply.
APPENDIX
(To be printed and posted on official Board notice form)
THE NATIONAL LABOR RELATIONS ACT GIVES
YOU THE RIGHT TO
Form, join, or assist a union
Choose representatives to bargain with us on your be-
half
Act together with other employees for your benefit and
protection
Choose not to engage in any of these protected activi-
ties.
WE WILL NOT interfere with, restrain, or coerce you in the ex-
ercise of the above rights.
WE WILL NOT fail or refuse to recognize and bargain with the
Plumbers and Pipefitters Local 72, United Association of Jour-
neymen and Apprentices of the Plumbing and Pipe Fitting Indus-
try of the United States and Canada, AFL–CIO (Union) as ex-
clusive bargaining representative of the following unit employ-
ees:
All journeymen, apprentices, tradesmen and helpers engaged
in the installation of all plumbing and/or pipe fitting systems
and component parts thereof employed by TK, LLC at the SKI
“Posted Pursuant to a Judgment of the United States Court of Appeals
Enforcing an Order of the National Labor Relations Board.”
TK LLC
17
Battery Plant project in Commerce, Georgia and/or the Pipe
Fabrication Shop located in Jefferson, Georgia.
WE WILL NOT repudiate or refuse to abide by the terms of the
collective-bargaining agreement Mechanical Contractors Asso-
ciation of Georgia, Inc., and the Union which we adopted for the
duration of our work at the SKI Battery Plant project in Com-
merce, Georgia and the Pipe Fabrication Shop located in Jeffer-
son, Georgia.
WE WILL NOT fire you because of your union membership or
support.
WE WILL NOT refuse to hire you because of your union mem-
bership or support.
WE WILL NOT in any like or related manner interfere with your
rights under Section 7 of the National Labor Relations Act.
WE WILL recognize and, upon request, bargain in good faith
with the Union as the exclusive collective-bargaining representa-
tive of our unit employees over wages, hours, and other terms
and conditions of employment.
WE WILL honor and comply with the terms and conditions of
the collective-bargaining agreement between the Mechanical
Contractors Association of Georgia, Inc., and the Union which
we adopted for the duration of our work at the SKI Battery Plant
project in Commerce, Georgia and the Pipe Fabrication Shop lo-
cated in Jefferson, Georgia.
WE WILL make whole all bargaining unit employees for any
loss of earnings and other benefits suffered as a result of our fail-
ure to honor the collective-bargaining agreement.
WE WILL make all contractually required contributions to the
Union’s fringe benefit funds that we have failed to make since
about September 25, 2020, and reimburse our employees, with
interest, for any expenses resulting from our failure to make the
required payments under the collective-bargaining agreement.
WE WILL offer Randall Stapleton, Sr., Randall Stapleton II,
Mathew Jackson, Jesse Alley, and Dustin Printz full reinstate-
ment to their former jobs or, if that job no longer exists, to a sub-
stantially equivalent position, without prejudice to their seniority
or any other rights or privileges previously enjoyed; WE WILL
make each whole for any loss of earnings and other benefits suf-
fered as a result of our repudiation/failure to honor the above
collective-bargaining agreement; WE WILL make each whole for
reasonable search-for-work and interim employment expenses,
plus interest. Compensate each for the adverse tax consequences,
if any, of receiving a lump-sum backpay award; WE WILL file
with the Regional Director for Region 10, within 21 days of the
date the amount of backpay is fixed, either by agreement or
Board order, a report allocating the backpay award to the appro-
priate calendar year(s); WE WILL file with the Regional Director
for Region 10 a copy of corresponding W-2 forms for each re-
flecting the backpay award; and WE WILL remove from our files
any reference to these unlawful discharges, and WE WILL, within
3 days thereafter, notify each in writing that this has been done
and that their discharge will not be used against them in any way.
WE WILL offer to employ Matthew Johnson, Adam Ryan Wil-
son, Tony Lamar Frazier, Jr., Phillip K. White, Steven H. Year-
wood, James C. Balchin, Jr., Chad W. Anderson, Frederick Joh,
Joshua William Ireland, Josh Rodney Cottrell, Jacob D. Segars,
Frank Noel Matheson, III and Trevor Nichols to the positions for
which they were referred on about September 21 or, if that job
no longer exists, to a substantially equivalent position, without
prejudice to their seniority or any other rights or privileges pre-
viously enjoyed; WE WILL make each whole for any loss of earn-
ings and other benefits suffered as a result of our repudia-
tion/failure to honor the above collective-bargaining agreement
WE WILL make each whole for reasonable search-for-work and
interim employment expenses, plus interest. Compensate each
for the adverse tax consequences, if any, of receiving a lump-
sum backpay award; WE WILL file with the Regional Director for
Region 10, within 21 days of the date the amount of backpay is
fixed, either by agreement or Board order, a report allocating the
backpay award to the appropriate calendar year(s); WE WILL file
with the Regional Director for Region 10 a copy of correspond-
ing W-2 forms for each reflecting the backpay award; and WE
WILL remove from our files any reference to these unlawful re-
fusal to hire, and WE WILL, within 3 days thereafter, notify each
in writing that this has been done and that their discharge will
not be used against them in any way.
WE WILL compensate all unit employees for any adverse in-
come tax consequences of receiving a lump-sum backpay award,
and WE WILL file with the Regional Director for Region 10,
within 21 days, a report allocating the backpay award to the ap-
propriate calendar years for each employee.
TK,LLC
The Administrative Law Judge’s decision can be found at
www.nlrb.gov/case/10-CA-267762 or by using the QR code below.
Alternatively, you can obtain a copy of the decision from the Exec-
utive Secretary, National Labor Relations Board, 1015 Half Street,
S.E., Washington, D.C. 20570, or by calling (202) 273-1940.