SK USA SHIRTS, INC.

National Labor Relations Board - Board Decisions

Oct 21, 2014

361 NLRB No. 70 (N.L.R.B. 2014)

361 NLRB No. 70
NOTICE: This opinion is subject to formal revision before publication in the
bound volumes of NLRB decisions. Readers are requested to notify the Ex-
ecutive Secretary, National Labor Relations Board, Washington, D.C.
20570, of any typographical or other formal errors so that corrections can
be included in the bound volumes.
SK USA Shirts, Inc. and Local 947, United Service
Workers Union, International Union of Jour-
neymen and Allied Trades. Case 22–CA–122319
October 21, 2014
DECISION AND ORDER
BY MEMBERS HIROZAWA, JOHNSON, AND SCHIFFER
The General Counsel seeks a default judgment in this
case on the ground that the Respondent has failed to file
an answer to the complaint. Upon a charge filed by Lo-
cal 947, United Service Workers Union, International
Union of Journeymen and Allied Trades (the Union) on
February 10, 2014, the General Counsel issued the com-
plaint on April 17, 2014, against SK USA Shirts, Inc.,
the Respondent, alleging that it has violated Section
8(a)(5) and (1) of the Act. The Respondent failed to file
an answer.
On August 13, 2014, the General Counsel filed a Mo-
tion for Default Judgment with the Board. On August
14, 2014, the Board issued an order transferring the pro-
ceeding to the Board and a Notice to Show Cause why
the motion should not be granted. The Respondent filed
no response. The allegations in the motion are therefore
undisputed.
Ruling on Motion for Default Judgment
Section 102.20 of the Board’s Rules and Regulations
provides that the allegations in a complaint shall be
deemed admitted if an answer is not filed within 14 days
from service of the complaint, unless good cause is
shown. In addition, the complaint affirmatively stated
that unless an answer was received by May 1, 2014, the
Board may find, pursuant to a motion for default judg-
ment, that the allegations in the complaint are true. Fur-
ther, the undisputed allegations in the General Counsel’s
motion disclose that the Region, by letter dated May 27,
2014, notified the Respondent that unless an answer was
received by June 6, 2014, a motion for default judgment
would be filed. Nevertheless, the Respondent failed to
file an answer.
In the absence of good cause being shown for the fail-
ure to file an answer, we deem the allegations in the
complaint to be admitted as true, and we grant the Gen-
eral Counsel’s Motion for Default Judgment.
On the entire record, the Board makes the following
FINDINGS OF FACT
I. JURISDICTION
At all material times, the Respondent has been a cor-
poration with an office and a place of business in Gar-
field, New Jersey, and has been engaged in the operation
of a commercial laundry. During the 12 months preced-
ing issuance of the complaint, the Respondent, in con-
ducting its business operations described above, pur-
chased and received at its Garfield, New Jersey facility,
goods valued in excess of $50,000 directly from points
outside the State of New Jersey.
We find that the Respondent is an employer engaged
in commerce within the meaning of Section 2(2), (6), and
(7) of the Act and that the Union is a labor organization
within the meaning of Section 2(5) of the Act.
II. ALLEGED UNFAIR LABOR PRACTICES
The following employees (the unit) constitute a unit
appropriate for the purpose of collective bargaining with-
in the meaning of Section 9(b) of the Act:
All production and maintenance employees employed
by the Respondent at its Garfield, New Jersey facility,
except watchmen, guards, and supervisors as defined in
the National Labor Relations Act.
Since about 2005, and at all material times, the Re-
spondent has recognized the Union as the exclusive col-
lective-bargaining representative of the unit. This recog-
nition has been embodied in a collective-bargaining
agreement effective from June 1, 2013, to May 31, 2016
(the 2013–2016 agreement). At all times since about
2005, based on Section 9(a) of the Act, the Union has
been the exclusive collective-bargaining representative of
the unit.
Since about November 1, 2013, the Respondent has
failed to implement a wage increase of 25 cents per hour
for all unit employees as required by Article XVIII of the
2013–2016 agreement.
The subject set forth in the paragraph above relates to
wages, hours, and other terms and conditions of em-
ployment of the unit and is a mandatory subject for the
purposes of collective bargaining. The Respondent en-
gaged in the conduct described above without the Un-
ion’s consent.
CONCLUSION OF LAW
By the conduct described above, the Respondent has
been failing and refusing to bargain collectively and in
good faith with the exclusive collective-bargaining repre-
sentative of its employees within the meaning of Section
8(d) of the Act, in violation of Section 8(a)(5) and (1) of
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD2
the Act. The Respondent’s unfair labor practices affect
commerce within the meaning of Section 2(6) and (7) of
the Act.
REMEDY
Having found that the Respondent has engaged in cer-
tain unfair labor practices, we shall order it to cease and
desist and to take certain affirmative action designed to
effectuate the policies of the Act. Specifically, having
found that the Respondent has violated Section 8(a)(5)
and (1) by failing, since about November 1, 2013, to im-
plement a wage increase of 25 cents per hour for all unit
employees, as required by Article XVIII of the 2013–
2016 agreement, we shall order the Respondent to com-
ply with the 2013–2016 agreement and to make the unit
employees whole for any losses suffered as a result of the
Respondent’s unlawful conduct by implementing the
contractual wage increase and by paying them the wage
increase retroactive to November 1, 2013. Backpay shall
be computed in accordance with Ogle Protection Service,
183 NLRB 682, 683 (1970), enfd. 444 F.2d 502 (6th Cir.
1971), with interest as prescribed in New Horizons for
the Retarded, 283 NLRB 1173 (1987), compounded dai-
ly as prescribed in Kentucky River Medical Center, 356
NLRB No. 8 (2010).
Additionally, we shall order the Respondent to com-
pensate the unit employees for the adverse tax conse-
quences, if any, of receiving lump-sum backpay awards
and to file a report with the Social Security Administra-
tion allocating the backpay awards to the appropriate
calendar quarters for each employee. Don Chavas, LLC
d/b/a Tortillas Don Chavas, 361 NLRB No. 10 (2014).
ORDER
The National Labor Relations Board orders that the
Respondent, SK USA Shirts, Inc., Garfield, New Jersey,
its officers, agents, successors, and assigns, shall
1. Cease and desist from
(a) Failing and refusing to bargain collectively and in
good faith with Local 947, United Service Workers Un-
ion, International Union of Journeymen and Allied
Trades as the exclusive collective-bargaining representa-
tive of the unit employees by failing, since about No-
vember 1, 2013, to implement a wage increase of 25
cents per hour for all unit employees as required by Arti-
cle XVIII of the parties’ 2013–2016 collective-
bargaining agreement. The bargaining unit is:
All production and maintenance employees employed
by the Respondent at its Garfield, New Jersey facility,
except watchmen, guards, and supervisors as defined in
the National Labor Relations Act.
(b) In any like or related manner interfering with, re-
straining, or coercing employees in the exercise of the
rights guaranteed them by Section 7 of the Act.
2. Take the following affirmative action necessary to
effectuate the policies of the Act.
(a) Comply with the 2013–2016 agreement by imple-
menting the wage increase of 25 cents per hour for all
unit employees as required by Article XVIII of the 2013–
2016 agreement.
(b) Make whole the unit employees by paying them
retroactively the contractually-required wage increase
that has not been paid to them since about November 1,
2013, with interest, as set forth in the remedy section of
this decision.
(c) Compensate the unit employees for the adverse tax
consequences, if any, of receiving lump-sum backpay
awards, in the manner set forth in the remedy section of
this decision, and file a report with the Social Security
Administration allocating the backpay awards to the ap-
propriate calendar quarters for each employee.
(d) Preserve and, within 14 days of a request, or such
additional time as the Regional Director may allow for
good cause shown, provide at a reasonable place desig-
nated by the Board or its agents, all payroll records, so-
cial security payment records, timecards, personnel rec-
ords and reports, and all other records including an elec-
tronic copy of such records if stored in electronic form,
necessary to analyze the amount of backpay due under
the terms of this Order.
(e) Within 14 days after service by the Region, post at
its facility in Garfield, New Jersey, copies of the attached
notice marked “Appendix.”1 Copies of the notice, on
forms provided by the Regional Director for Region 22,
after being signed by the Respondent’s authorized repre-
sentative, shall be posted by the Respondent and main-
tained for 60 consecutive days in conspicuous places,
including all places where notices to employees are cus-
tomarily posted. In addition to physical posting of paper
notices, notices shall be distributed electronically, such
as by email, posting on an intranet or an internet site,
and/or other electronic means, if the Respondent custom-
arily communicates with its employees by such means.
Reasonable steps shall be taken by the Respondent to
ensure that the notices are not altered, defaced, or cov-
ered by any other material. If the Respondent has gone
out of business or closed the facility involved in these
proceedings, the Respondent shall duplicate and mail, at

1 If this Order is enforced by a judgment of a United States court of
appeals, the words in the notice reading “Posted by Order of the Na-
tional Labor Relations Board” shall read “Posted Pursuant to a Judg-
ment of the United States Court of Appeals Enforcing an Order of the
National Labor Relations Board.”
SK USA SHIRTS, INC. 3
its own expense, a copy of the notice to all current em-
ployees and former employees employed by the Re-
spondent at any time since November 1, 2013.
(f) Within 21 days after service by the Region, file
with the Regional Director for Region 22 a sworn certifi-
cation of a responsible official on a form provided by the
Region attesting to the steps that the Respondent has
taken to comply.
Dated, Washington, D.C. October 21, 2014
Kent Y. Hirozawa, Member
Harry I. Johnson, III, Member
Nancy Schiffer, Member
(SEAL) NATIONAL LABOR RELATIONS BOARD
APPENDIX
NOTICE TO EMPLOYEES
POSTED BY ORDER OF THE
NATIONAL LABOR RELATIONS BOARD
An Agency of the United States Government
The National Labor Relations Board has found that we vio-
lated Federal labor law and has ordered us to post and obey
this notice.
FEDERAL LAW GIVES YOU THE RIGHT TO
Form, join, or assist a union
Choose representatives to bargain with us on
your behalf
Act together with other employees for your bene-
fit and protection
Choose not to engage in any of these protected
activities.
WE WILL NOT fail and refuse to bargain collectively
and in good faith with Local 947, United Service Work-
ers Union, International Union of Journeymen and Allied
Trades (the Union) as the exclusive collective-bargaining
representative of our unit employees by failing to imple-
ment a wage increase of 25 cents per hour for all unit
employees as required by Article XVIII of our 2013–
2016 collective-bargaining agreement. The bargaining
unit is:
All production and maintenance employees employed
by us at our Garfield, New Jersey facility, except
watchmen, guards, and supervisors as defined in the
National Labor Relations Act.
WE WILL NOT in any like or related manner interfere
with, restrain, or coerce you in the exercise of the rights
guaranteed you by Section 7 of the Act.
WE WILL comply with the terms and conditions of our
2013–2016 collective-bargaining agreement by imple-
menting the wage increase of 25 cents per hour for all
unit employees as required by Article XVIII of the
agreement.
WE WILL make whole our unit employees by paying
them retroactively the contractually-required wage in-
crease that has not been paid to them since about No-
vember 1, 2013, with interest.
WE WILL compensate our unit employees for the ad-
verse tax consequences, if any, of receiving lump-sum
backpay awards, and WE WILL file a report with the So-
cial Security Administration allocating the backpay
awards to the appropriate calendar quarters for each em-
ployee.
SK USA SHIRTS, INC.
The Board’s decision can be found at
www.nlrb.gov/case/22-CA-122319 or by using the QR
code below. Alternatively, you can obtain a copy of the
decision from the Executive Secretary, National Labor
Relations Board, 1099 14th Street, N.W., Washington,
D.C. 20570, or by calling (202) 273-1940.