Paragon Systems, Inc.

372 NLRB No. 79 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. Paragon Systems, Inc. and United Government Secu- rity Officers of America International Union. Cases 05–CA–293052 and 05–CA–294712 April 21, 2023 DECISION AND ORDER BY CHAIRMAN MCFERRAN AND MEMBERS KAPLAN AND WILCOX The General Counsel seeks a default judgment in this case on the ground that Paragon Systems, Inc. (the Re- spondent) has failed to file an answer to the consolidated complaint. Upon a charge and an amended charge filed by United Government Security Officers of America In- ternational Union (the Charging Party) in Case 05–CA– 293052 on March 28 and November 16, 2022, respec- tively, and a charge and an amended charge filed by the Charging Party in Case 05–CA–294712 on April 25 and November 16, 2022, respectively, the General Counsel is- sued a consolidated complaint and notice of hearing (the complaint) on January 13, 2023, against the Respondent, alleging that it has violated Section 8(a)(5) and (1) of the Act. The Respondent failed to file an answer. On February 22, 2023, the General Counsel filed with the National Labor Relations Board a Motion for Default Judgment. On March 3, 2023, the Board issued an order transferring the proceeding to the Board and a Notice to Show Cause why the motion should not be granted. The Respondent filed no response. The allegations in the mo- tion are therefore undisputed. The Board has delegated its authority in this proceeding to a three-member panel. Ruling on Motion for Default Judgment Section 102.20 of the Board’s Rules and Regulations provides that the allegations in a complaint shall be deemed admitted if an answer is not filed within 14 days from service of the complaint, unless good cause is shown. In addition, the complaint affirmatively states that unless an answer is received on or before January 27, 2023, the Board may find, pursuant to a motion for default judg- ment, that the allegations in the complaint are true. Fur- ther, the undisputed allegations in the General Counsel’s motion disclose that the Region, by letter dated January 30, 2023 (which enclosed a copy of the complaint), ad- vised the Respondent that unless an answer was received by February 6, 2023, a motion for default judgment would be filed. Nevertheless, the Respondent failed to file an answer. In the absence of good cause being shown for the failure to file an answer, we deem the allegations of the complaint to be admitted as true, and we grant the General Counsel’s Motion for Default Judgment. On the entire record, the Board makes the following. FINDINGS OF FACT I. JURISDICTION At all material times, the Respondent has been a corpo- ration with an office and place of business in Herndon, Virginia, and has been engaged in the business of provid- ing security services to commercial and government enti- ties, including the United States Government’s facility lo- cated at 8200 Research Plaza, Fort Detrick, Frederick, Maryland (Fort Detrick facility). In conducting its operations during the 12-month period ending December 31, 2022, the Respondent performed services valued in excess of $50,000 in points outside the State of Maryland. In conducting its operations during the 12-month period ending December 31, 2022, the Respondent purchased and received at its Fort Detrick facility and/or Herndon, Virginia facility goods valued in excess of $5000 directly from points located outside the State of Maryland and/or the Commonwealth of Virginia. Based on its operations described above, the Respond- ent has a substantial impact on the national defense of the United States. We find that the Respondent is an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act, and that the Charging Party is a labor organi- zation within the meaning of Section 2(5) of the Act. We further find that United Government Security Officers of America, Local 310, a/w United Government Security Of- ficers of America International Union (Local 310) is a la- bor organization within the meaning of Section 2(5) of the Act. II. ALLEGED UNFAIR LABOR PRACTICES At all material times, the following individuals held the positions set forth opposite their respective names and have been agents of the Respondent within the meaning of Section 2(13) of the Act: Unnamed Agent 1 - VP Labor Relations-Corporate Counsel Unnamed Agent 2 - General Counsel The following employees of the Respondent (the unit) constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act: DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 2 All full-time and regular part-time armed and unarmed security officers employed by the Employer at Fort Detrick located at 8200 Research Plaza Fort Detrick, Building NIAID/IRF in Frederick, Maryland; but ex- cluding all office clerical employees, salaried employees and supervisors as defined in the Act. On March 27, 2019, the Board certified the Charging Party and Local 310 as the exclusive collective-bargaining representative of the unit. Since at least March 29, 2019, and at all material times, the Respondent recognized the Charging Party and Local 310 as the exclusive collective-bargaining representative of the unit. That recognition was embodied in a collective- bargaining agreement which was effective from March 29, 2019 through April 15, 2022. On October 7, 2022, the Board certified the Charging Party and Local 310 as the exclusive collective-bargaining representative of the unit. At all material times, based on Section 9(a) of the Act, the Charging Party and Local 310 have been the exclusive collective-bargaining representative of the unit. The following events occurred, giving rise to this pro- ceeding: 1. (a) Since about March 14, 2022, the Charging Party has requested in writing that the Respondent furnish the Union with the following information: copies of other contracts or verifications of payments from other unions that the Respondent, or any company the Respondent is in a joint venture with, showing the other unions are also paying an administration fee for dues deductions. (b) The information requested by the Charging Party, as described above, is necessary for, and relevant to, the Charging Party’s and Local 310’s performance of their du- ties as the exclusive collective-bargaining representative of the unit. (c) Since about March 24, 2022, the Respondent, by Unnamed Agent 1 and Unnamed Agent 2, in writing, has failed and refused to furnish the Charging Party with the information requested by it as described above. 2. (a) About April 22, 2022, the Respondent insisted, as a condition of negotiating any collective-bargaining agreement, that the Charging Party agree to withdraw the charge in Case 05–CA–293052. (b) The condition described above is not a mandatory subject for the purposes of collective bargaining. (c) About April 22, 2022, in support of the condition described above, the Respondent refused to continue ne- gotiations with the Charging Party and Local 310 over a successor collective-bargaining agreement. CONCLUSION OF LAW By the conduct described above in paragraphs 1(c), 2(a), and 2(c), the Respondent has been failing and refus- ing to bargain collectively with the exclusive collective- bargaining representative of its employees in violation of Section 8(a)(5) and (1) of the Act. The Respondent’s un- fair labor practices described above affect commerce within the meaning of Section 2(6) and (7) of the Act. REMEDY Having found that the Respondent has engaged in cer- tain unfair labor practices, we shall order it to cease and desist and to take certain affirmative action designed to effectuate the policies of the Act. Specifically, having found that the Respondent violated Section 8(a)(5) and (1) of the Act by failing and refusing to provide the Charging Party with requested information that is relevant and nec- essary to the Charging Party’s performance of its duties as the exclusive collective-bargaining representative of the unit employees, we shall order the Respondent to provide the Charging Party with the information it requested on March 14, 2022. In addition, having found that the Respondent violated Section 8(a)(5) and (1) of the Act by failing and refusing to bargain collectively and in good faith with the Charging Party by: (1) insisting, as a condition of bargaining for any collective-bargaining agreement, that the Charging Party withdraw an unfair labor charge; and (2) in support of this condition, refusing to bargain with the Charging Party and Local 310 for a successor collective-bargaining agree- ment, we shall order the Respondent to bargain on request with the Charging Party and Local 310 and, if an under- standing is reached, to embody the understanding in a signed agreement. ORDER The National Labor Relations Board orders that the Re- spondent, Paragon Systems, Inc., Frederick, Maryland, its officers, agents, successors, and assigns shall 1. Cease and desist from (a) Refusing to bargain collectively with the Charging Party by failing and refusing to furnish it with requested information that is relevant and necessary to the Charging Party’s performance of its functions as the collective-bar- gaining representative of the Respondent's unit employ- ees. (b) Failing and refusing to bargain with the Charging Party as the exclusive collective-bargaining representative of the unit employees by insisting, as a condition of bar- gaining any collective-bargaining agreement, that the Charging Party withdraw an unfair labor practice charge, which is not a mandatory subject for the purposes of col- lective bargaining. PARAGON SYSTEMS, INC. 3 (c) Failing and refusing to bargain with the Charging Party and Local 310 as the exclusive collective-bargaining representative of the unit employees by, in support of the condition described above, refusing to continue negotia- tions with the Charging Party and Local 310 for a succes- sor collective-bargaining agreement. (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) Furnish to the Charging Party in a timely manner the information requested by the Charging Party on March 14, 2022. (b) On request, bargain with the Charging Party and Local 310 as the exclusive collective-bargaining repre- sentative of the employees in the following appropriate unit concerning terms and conditions of employment and, if an understanding is reached, embody the understanding in a signed agreement: All full-time and regular part-time armed and unarmed security officers employed by the Employer at Fort Detrick located at 8200 Research Plaza Fort Detrick, Building NIAID/IRF in Frederick, Maryland; but ex- cluding all office clerical employees, salaried employees and supervisors as defined in the Act. (c) Post at its facility in Frederick, Maryland, copies of the attached notice marked “Appendix.”1 Copies of the notice, on forms provided by the Regional Director for Re- gion 5, after being signed by the Respondent's authorized 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. The Respondent shall take reasonable steps 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 1 If the facility involved in these proceedings is open and staffed by a substantial complement of employees, the notice must be posted within 14 days after service by the Region. If the facility involved in these pro- ceedings is closed or not staffed by a substantial complement of employ- ees due to the Coronavirus Disease 2019 (COVID-19) pandemic, the no- tice must be posted within 14 days after the facility reopens and a sub- stantial complement of employees has returned to work. If, while closed or not staffed by a substantial complement of employees due to the pan- demic, the Respondent is communicating with its employees by elec- tronic means, the notice must also be posted by such electronic means Respondent shall duplicate and mail, at its own expense, a copy of the notice to all current employees and former em- ployees employed by the Respondent at any time since March 14, 2022. (d) Within 21 days after service by the Region, file with the Regional Director for Region 5 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. April 21, 2023 ______________________________________ Lauren McFerran, Chairman ______________________________________ Marvin E. Kaplan, Member ________________________________________ Gwynne A. Wilcox, 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 within 14 days after service by the Region. If the notice to be physically posted was posted electronically more than 60 days before physical post- ing 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 Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Rela- tions Board.” DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 4 Choose not to engage in any of these protected ac- tivities. WE WILL NOT refuse to bargain collectively with United Government Security Officers of America Inter- national Union (the Charging Party) by failing and re- fusing to furnish it with requested information that is relevant and necessary to the Charging Party’s perfor- mance of its functions as the collective-bargaining rep- resentative of our unit employees. WE WILL NOT fail and refuse to bargain with the Charging Party as the exclusive collective-bargaining representative of our employees in the bargaining unit by insisting, as a condition of any collective-bargaining agreement, that the Charging Party withdraw an unfair labor practice charge, which is not a mandatory subject for the purposes of collective bargaining. WE WILL NOT fail and refuse to bargain with the Charging Party and United Government Security Offic- ers of America, Local 310, a/w United Government Se- curity Officers of America International Union (Local 310) as the exclusive collective-bargaining representa- tive of our employees in the bargaining unit by, in sup- port of the condition described above, refusing to con- tinue negotiations with the Charging Party and Local 310 for a successor collective-bargaining agreement. 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 furnish to the Charging Party in a timely manner the information requested by the Charging Party on March 14, 2022. WE WILL, on request, bargain with the Charging Party and Local 310 as the exclusive collective-bargaining representative of our employees in the following appro- priate unit concerning terms and conditions of employ- ment and, if an understanding is reached, embody the understanding in a signed agreement: All full-time and regular part-time armed and unarmed security officers employed by the Employer at Fort Detrick located at 8200 Research Plaza Fort Detrick, Building NIAID/IRF in Frederick, Maryland; but ex- cluding all office clerical employees, salaried employees and supervisors as defined in the Act. PARAGON SYSTEMS, INC. The Board’s decision can be found at www.nlrb.gov/case/05-CA-293052 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.