LME, INC., LAKEVILLE MOTOR EXPRESS as alter egos

National Labor Relations Board - Board Decisions

Apr 30, 2019

18-CA-192154 (N.L.R.B. Apr. 30, 2019)

UNITED STATES OF AMERICA
BEFORE THE NATIONAL LABOR RELATIONS BOARD
LME, INC. AND LAKEVILLE MOTOR EXPRESS,
AS ALTER EGOS
and Case 18-CA-192154
TEAMSTERS LOCAL UNION NO. 120
LME, INC. AND LAKEVILLE MOTOR EXPRESS,
AS ALTER EGOS
and Case 18-CA-192772
TEAMSTERS LOCAL UNION NO. 662
LME, INC. AND LAKEVILLE MOTOR EXPRESS,
AS ALTER EGOS
and Case 18-CA-192781
TEAMSTERS LOCAL UNION NO. 695
DECISION AND ORDER
Statement of the Cases
On January 11, 2019, LME, Inc. (the Respondent), International Brotherhood of
Teamsters, Locals 120, 662, and 695 (collectively, the Unions), and the General
Counsel of the National Labor Relations Board entered into a Formal Settlement
Stipulation, subject to the Board’s approval, providing for the entry of a consent order by
the Board and a consent judgment by any appropriate United States Court of Appeals.1

1 Although the consolidated complaint alleges that Respondent LME, Inc., and
Respondent Lakeville Motor Express are alter egos, Lakeville Motor Express is not a
party to this Formal Settlement Stipulation. The complaint further alleges that because
of the Respondent’s unlawful subcontracting of unit work, Lakeville Motor Express
closed on about November 19, 2016. The Region states in its transmittal memorandum
to the Board that Lakeville Motor Express filed for Chapter 7 bankruptcy in January
2017 (before charges in the instant matter were filed), that it essentially no longer exists
in either a legal or practical sense, and that the bankruptcy proceeding will eventually
result in its complete liquidation. The Region further asserts that the bankruptcy trustee,
while not a party to the settlement, is aware of the parties’ settlement agreement.
2
The parties waived all further and other proceedings before the Board to which they
may be entitled under the National Labor Relations Act and the Board’s Rules and
Regulations, and the Respondent waived its right to contest the entry of a consent
judgment or to receive further notice of the application therefor.
The National Labor Relations Board has delegated its authority in this proceeding
to a three-member panel.
The Formal Settlement Stipulation is approved and made a part of the record, and
the proceeding is transferred to and continued before the Board in Washington, D.C.,
for the entry of a Decision and Order pursuant to the provisions of the Formal
Settlement Stipulation.
Based on the Formal Settlement Stipulation and the entire record, the Board
makes the following
Findings of Fact
1. The Respondent’s business
(a) At all material times, the Respondent, a Minnesota corporation, has been
engaged in providing less-than-truckload freight delivery in the Midwestern region of the
United States.
(b) During the past calendar year, the Respondent, in conducting its operations
described above in Paragraph 1(a), derived gross revenues in excess of $500,000.
(c) During the past calendar year, the Respondent, in conducting its operations
described above in Paragraph 1(a), purchased and received at its Minnesota terminals
goods and services valued in excess of $50,000 directly from points located outside the
State of Minnesota.
(d) At all material times, the Respondent has been an employer engaged in
commerce within the meaning of Section 2(2), (6), and (7) of the Act.
2. The labor organization involved
At all material times, the Unions have been labor organizations within the
meaning of Section 2(5) of the Act.
ORDER
Based on the above findings of fact, the Formal Settlement Stipulation, and the
entire record, and pursuant to Section 10(c) of the National Labor Relations Act, the
National Labor Relations Board orders that:
The Respondent, LME, Inc., New Brighton, Minnesota, its officers, agents,
successors, and assigns, shall:
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1. Cease and desist from:
(a) Creating alter-egos for purposes of avoiding its responsibilities and
obligations under the National Labor Relations Act.
(b) Subcontracting work, closing parts of its business, or terminating employees
in order to discriminate against employees for engaging in union and/or protected
concerted activities and to discourage employees from engaging in these activities.
(c) Refusing to bargain with the Unions over terms and conditions of
employment for employees who are represented by the Unions.
(d) In any like or related manner interfering with, restraining, or coercing
employees in the exercise of the rights guaranteed in Section 7 of the Act.
2. Take the following affirmative action necessary to effectuate the policies of the
Act:
(a) Pursuant to the terms of Appendix B to this agreement, the Respondent will
make whole all former employees and Unions affected by the closure of Lakeville Motor
Express, by paying them pursuant to the schedules in Appendix B. The total sum of all
such payments under the schedules in Appendix B will be $1,250,000. The
Respondent will make appropriate withholdings for each former employee. The
Respondent will also file a report with the Regional Director for Region 18 allocating the
payments to the appropriate calendar year. In the event of a failure to pay in
accordance with the terms of Appendix B, the Respondent will have sixty days to cure
any defects. If the Respondent does not cure a defect after this sixty-day period has
expired, the Respondent will be required to immediately pay, in full, the amount of
$2,420,931, minus any payments already made under the terms of Appendix B.
(b) In the event that the Respondent opens or acquires a facility within the Twin
Cities Metro Area2 in 2019, 2020, or 2021, the Respondent will give hiring preference to
former employees of Lakeville Motor Express, as defined in Appendix B, who apply for
employment at the facility, subject to their being qualified for employment under the
Respondent's standard hiring procedures and/or applicable Department of
Transportation requirements. Further, the Respondent will, upon request of the Unions,
recognize and bargain with the Unions in accordance with its bargaining obligations
under the National Labor Relations Act regarding the employees in the following unit:
All truck drivers, helpers, dockmen, warehousemen, checkers, power-lift
operators, hostlers, and other such employees as may be presently or hereafter
represented by the Unions, engaged in local pickup, delivery, and assembling of
freight within the area located within the jurisdiction of the Unions.

2 For purposes of this agreement, the Twin Cities Metro Area is defined as Hennepin,
Ramsey, Anoka, Carver, Dakota, Scott, and Washington Counties.
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(c) Within 14 days from the approval of this agreement, the Respondent will
mail, at its expense, a copy of the attached Notice in Appendix A to former employees
of Lakeville Motor Express who were employed at any time since August 1, 2016, at the
facility located at 2975 Partridge Road, Roseville, MN 55113, as defined in Appendix B.
Those notices will be signed by a responsible official of the Respondent and show the
date of mailing. The Respondent will provide the Regional Director for Region 18
written confirmation of the date of the mailing and a list of names and addresses of
employees to whom the Notices were mailed.
(d) Within 21 days after service by the Region, file with the Regional Director for
Region 18 a sworn certification of a responsible official on a form provided by the
Region attesting to the steps that the Respondent has taken to comply.
(e) If the Respondent fails to comply with any of the provisions of this Order, the
Respondent will be in default of the Formal Settlement Stipulation and Order.
Dated, Washington, D.C., April 30, 2019.
___________________________________
John F. Ring, Chairman
___________________________________
Lauren McFerran, Member
___________________________________
William J. Emanuel, Member
(SEAL) NATIONAL LABOR RELATIONS BOARD
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APPENDIX A
NOTICE TO EMPLOYEES
POSTED BY ORDER OF THE
NATIONAL LABOR RELATIONS BOARD
An Agency of the United States Government
PURSUANT TO A STIPULATION PROVIDING FOR A BOARD ORDER
AND A CONSENT JUDGMENT OF ANY APPROPRIATE
UNITED STATES COURT OF APPEALS
As you may know, TEAMSTERS LOCAL NO. 120, TEAMSTERS LOCAL NO. 662,
and TEAMSTERS LOCAL NO. 695 (collectively, the UNIONS) filed charges with
the National Labor Relations Board against LME, INC. and LAKEVILLE MOTOR
EXPRESS, alleging violations of the National Labor Relations Act (the Act).
Those charges have been investigated and settled. As part of the Settlement
Agreement, LME has agreed to mail this Notice to all affected employees, as
described in the Settlement Agreement.
FEDERAL LAW GIVES YOU THE RIGHT TO:
Form, join, or assist a union;
Choose a representative to bargain with us on your behalf;
Act together with other employees for your benefit and protection;
Choose not to engage in any of these protected activities.
WE WILL NOT do anything to prevent you from exercising the above rights.
WE WILL NOT terminate employees’ employment because of employees’ union
membership or support.
WE WILL NOT close facilities or parts of our business because employees engage in
union activity.
WE WILL NOT subcontract or transfer work performed by employees represented by
unions without providing the Unions with notice and an opportunity to bargain.
WE WILL NOT in any like or related manner interfere with your rights under Section 7 of
the National Labor Relations Act.
WE WILL offer employees of Lakeville Motor Express, whose employment was
terminated on November 19, 2016, placement on a preferential hiring list that will apply
to any facility we open or acquire in the Twin Cities Metro area (Hennepin, Ramsey,
Anoka, Dakota, Scott, Carver, and Washington Counties) in 2019, 2020, or 2021.
WE WILL, upon request, recognize and bargain with the Unions, in accordance with our
bargaining obligations under the National Labor Relations Act, at any facility we open or
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acquire in the Twin Cities Metro area (Hennepin, Ramsey, Anoka, Dakota, Scott,
Carver, and Washington Counties) in 2019, 2020, or 2021, in the following unit:
All truck drivers, helpers, dockmen, warehousemen, checkers, power-lift
operators, hostlers, and other such employees as may be presently or hereafter
represented by the Unions, engaged in local pickup, delivery, and assembling of
freight within the area located within the jurisdiction of the Unions.
WE WILL pay employees of Lakeville Motor Express for wages and other benefits they
lost, and the Unions for dues lost, due to the closure of Lakeville Motor Express on
November 19, 2016, as agreed to in the Settlement Agreement.
WE WILL complete and submit Backpay Reports allocating backpay to the appropriate
year(s) to the Regional Director for Region 18, care of the Region's Compliance Officer,
for filing with the Social Security Administration.
LME, INC.
The Board’s decision can be found at www.nlrb.gov/case/18-CA-192154 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.
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APPENDIX B
The Respondent agrees to pay the compromised sum of $1,250,000, which includes
principal and interest and any payments due to the Unions, with final payment payable
on June 1, 2024, as set forth below:
The parties agree that the following discriminatees are the only individuals entitled
to the make-whole remedy in this matter:
Last Name First Name Local Union
Ackerson Michael 120
Albrecht Scott 120
Andersen Eugene 120
Anderson ·Dale 120
Bahr Allen 120
Baier Jason 120
Barbato Nicholas 120
Bebeau Thomas 120
Bellcour Zachery N/A
Beresford Mark 662
Block Curtis 120
Bumgardner Timothy 120
Chaika Sr. Charles 120
Crisham Jim 120
Davitt Greg 120
Doucet Frank 120
Duda Jody 662
Even Mark 120
Everson Scott 120
Fair Randy 695
Payment Due Date Payment Amount
6/1/2019 $62,500
12/1/2019 $62,500
6/1/2020 $125,000
12/1/2020 $125,000
6/1/2021 $125,000
12/1/2021 $125,000
6/1/2022 $125,000
12/1/2022 $125,000
6/1/2023 $125,000
12/1/2023 $125,000
6/1/2024 $125,000
Total $1,250,000
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Feyereisn Scott 120
Fitzgerald Michael 120
Fogarty Kevin 120
Folta Garry 120
Gordon Jeffrey 120
Haas Randall 120
Hanna Robert 120
Hjelmhaug William 120
Horsman Mark 120
Jackson David 120
Kaminski Jacob 120
Klinkenberg Charles 120
Kraus-Schlichtmann Charles 120
Kriesel James 120
Lang Ryan 120
Lean Charles N/A
Lehmann Tom 120
Levesseur Michael 120
Lieder Daniel 120
Lofgren Charles 120
Lutter Dave 120
Mace Chris 120
Marsyla Dean 120
Mayo William 120
McDonald Keith 120
Mickelson Rick 120
Miller Dean 120
Moeller Jim 120
Mortimer Robin 662
Mulcahy Rick 120
Nelson Dan 120
Nelson Roger 120
Nunn Samuel 120
Orduno Ernest 120
Orduno Lorenzo 120
Parrott Brad 120
Pedersen John 120
Phillips Darrvl 120
Pietz Shawn 120
Plath Russell 120
Platzer Bruce 120
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'
The Respondent agrees to pay dues owed to International Brotherhood of Teamsters,
Locals 120, 662, and 695 with each payment, the amounts of which are included in the
installments listed above. The Respondent will prepare three separate checks, one for
each Union.
Region 18 shall have sole discretion regarding all distribution amounts for all
discriminatees and Unions. These amounts will be in accordance with normal Board
practices and procedures. At least 30 days prior to each Payment Due Date, Region 18
will provide the Respondent with the specific amounts to be paid to each discriminatee
(listed above) and each of the Unions for the upcoming payment. For each payment,
each discriminatee may receive up to three (3) checks: Wages, Expenses, and Interest.
The Respondent will make appropriate withholdings from the check for wages and
provide a statement of those withholdings along with the checks. No withholdings
should be made from the checks issued for expenses or interest.
Powell Steven 120
Powers Allen 120
Prihoda Russell N/A
Purdy Tim 120
Rettman Michael 120
Richert Jeffrey 120
Ruggles Darrell 120
Satterlee Steve 120
Schleicher Robert 120
Schneider Andrew 120
Schuster Ronald 120
Siiter Ross 120
Silbernagel Mark 120
'
Soyring Steven 120
Soyring Michael 120
Sperling Sr. James 120
Stachowski James 120
Stachowski John 120
Strait Ronald 120
Sullivan Jerry 120
Thompson Shane 120
Too Tyler 120
Vandenheuvel Thomas 120
Verrett David 662..
Walton Charles 120
Whitney David 120
Wintle Alexander 120
Wintle William 120
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All payments shall be sent to Region 18 at its Minneapolis Regional Office at National
Labor Relations Board Region 18, Federal Office Building, 212 3rd Avenue S, Suite
200, Minneapolis, MN 55401, Attention: Richard J. Neuman, Compliance Officer.
Region 18 will verify the accuracy of all checks and will then forward them to the
discriminatees and Unions.
Throughout the installment payment period, the Respondent agrees to take all steps
necessary to reissue checks if the need arises. For example, the Respondent will
reissue the checks including, but not limited to, checks not cashed timely due to a
change in a discriminatee address or errors made in the preparation of the checks.
At the appropriate time, the Respondent will comply with Internal Revenue Service laws
regarding the issuance of appropriate tax forms as a result of all of these payments.
If Region 18 is unable to locate any of the affected employees listed in this Appendix
within one year of the final installment payment, the Regional Director for Region 18 will
have sole discretion to redistribute the money due to those employees, to the remaining
affected employees on a proportionate basis. The Respondent agrees to prepare the
redistribution payments pursuant to the direction of the Regional Director for Region 18.