Jerome Fink & Sons, Inc.Download PDFNational Labor Relations Board - Board DecisionsSep 30, 1981258 N.L.R.B. 1113 (N.L.R.B. 1981) Copy Citation JEROME FINK & SONS. INC. Jerome Fink & Sons, Inc. and Amalgamated Food and Allied Workers, District Union 626, United Food and Commercial Workers International Union, AFL-CIO. Cases 8-CA-11188 and 8- CA-11709 September 30, 1981 DECISION AND ORDER BY MEMBERS FANNING, JENKINS, AND ZIMMERMAN On April 4, 1979, the National Labor Relations Board issued an Order' in the above-entitled pro- ceeding adopting, in the absence of exceptions, Ad- ministrative Law Judge Almira A. Stevenson's De- cision, which found that Respondent violated Sec- tion 8(a)(5) and (1) of the Act by instituting unilat- eral changes in wages and in the amount of its con- tributions to the employees' health and welfare and pension plans. The Board ordered, inter alia, that Respondent make the unit employees whole by paying them the wages they would have earned in the absence of the violations, and by making appro- priate contributions to the employees' health and welfare and pension plans. On January 23, 1981,2 the United States Court of Appeals for the Sixth Circuit entered its judgment enforcing in full the Board's Order, including its backpay provisions. A controversy having arisen over the amount of backpay due under the terms of the Board's Order as enforced by the court, the Regional Director for Region 8, on March 31, issued and duly served on Respondent a backpay specification and notice of hearing, setting forth certain allegations with re- spect to the amounts of backpay due the employees under the Board's Order, and notifying Respondent that it must file a timely answer pursuant to the Board's Rules and Regulations, Series 8, as amend- ed. Respondent failed to file a timely answer to the specification. The General Counsel submits that on June 24 Respondent was informed by counsel for the Gen- eral Counsel by telephone that it had failed to file an answer to the backpay specification as required by Section 102.54 of the Board's Rules and Regula- tions, and that unless an answer was filed with the Regional Director for Region 8 by the close of business on July 8 a motion for summary judgment would be filed with the Board. On June 29, counsel for the General Counsel sent a letter to Respondent confirming this conversation and noting that Re- spondent had acknowledged having received a copy of the backpay specification. When no answer was submitted, counsel for the General Counsel on ' Not reported in volumes of Board Decisions 2 Unless otherwise specified. all dates herein refer to 1981. 258 NLRB No. 146 July 9 filed with the National Labor Relations Board a Motion for Summary Judgment, with ex- hibits attached. On July 20, the Board issued an order transfer- ring the proceeding to the Board and a Notice To Show Cause why the General Counsel's Motion for Summary Judgment should not be granted. On July 31, the Board extended until August 24 the filing date for a response to the Notice To Show Cause, but Respondent has not filed such a re- sponse. Counsel for the General Counsel filed a memo- randum with the Board on August 31, which noted that Respondent's counsel had telephoned the Re- gional Office on August 7 and had indicated that he would immediately submit an answer to the backpay specification which would set forth a gen- eral denial of all of the allegations. The memoran- dum further states that counsel for the General Counsel informed Respondent's counsel that such an answer would be insufficient under the Board's Rules and Regulations. On August 10, counsel for the General Counsel received Respondent's answer, which was attached to the memorandum submitted to the Board. We agree with counsel for the General Counsel that Respondent's answer constitutes a general denial which does not comply with Section 102.54 of the Board's Rules and Regulations, which pro- vides in pertinent part: (b) . . . The respondent shall specifically admit, deny, or explain each and every allega- tion of the specification, unless the respondent is without knowledge, in which case the re- spondent shall so state, such statement operat- ing as a denial .... As to all matters within the knowledge of the respondent, including but not limited to the various factors entering into the computation of gross backpay, a gen- eral denial shall not suffice. As to such mat- ters, if the respondent disputes either the accu- racy of the figures in the specification or the premises on which they are based, he shall specifically state the basis for his disagreement, setting forth in detail his position as to the ap- plicable premises and furnishing the appropri- ate supporting figures. Respondent's answer denies most of the allegations of the backpay specification "for lack of informa- tion and belief." The answer also states that Re- spondent "has no information to admit or deny" an additional allegation that certain named employees are not entitled to any backpay. Respondent's answer concludes by denying "all remaining allega- tions of the specification." The answer fails to set 1113 DECISIONS OF NATIONAL LABOR RELATIONS BOARD forth the basis for Respondent's disagreement with both the figures and the premises on which the fig- ures are based. It also fails to set forth Respond- ent's position concerning the applicable premises, and it does not furnish appropriate supporting fig- ures. Since the wages and working hours of em- ployees are ordinarily within the knowledge of a respondent, 3 we find that Respondent's general denial of the allegations of the backpay specifica- tion is insufficient to comply with the requirements of Section 102.54. 4 Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its au- thority in this proceeding to a three-member panel. Upon the entire record in this proceeding, the Board makes the following: Ruling on the Motion for Summary Judgment Section 102.54 of the Board's Rules and Regula- tions further provides, in pertinent part: (a) . . . The respondent shall, within 15 days from the service of the specification, if any, file an answer thereto .... ** * (c) . . . If the respondent fails to file any answer to the specification within the time prescribed by this section, the Board may, either with or without taking evidence in sup- port of the allegations of the specification and without notice to the respondent, find the specification to be true and enter such order as may be appropriate. If the respondent files an answer to the specification but fails to deny any allegation of the specification in the manner required by subsection (b) of this sec- a See Gateway Service Co., 209 NLRB 1166, fn. 3 (1974). Our finding in this regard is not inconsistent with our decision in Dews Construction Corp.. a ubsidiary of the Aspin Group, Inc., 246 NLRB 945 (1979). In that case, we found that the interim earnings of a discri- minatee would generally not be within the knowledge of a respondent and that a general denial with respect to that issue is sufficient to defeat a Motion for Summary Judgment as to interim earnings. We note that the employee whose backpay was disputed in that case had been discharged in violation of Sec. 8(a)(3) and (I). Here, Respondent has been found to have violated Sec. 8(a)(5) and (I) by, inter alia, unilaterally changing the wages of employees. The backpay specification is concerned only with the difference between the wages which the employees should have re- ceived under the applicable contract and the wages which the employees actually received. Interim earnings are not involved in this case. On September 9. the Board denied Respondent's request for leave to file an untimely response to the order transferring the proceeding to the Board and Notice To Show Cause, but permitted Respondent to file a response to the General Counsel's memorandum. On September 16 Re- spondent filed a document, which was styled as a response to the Motion for Summary Judgment. in which it contended essentially that its answer was not a general denial which was insufficient under the Board's Rules and Regulations. In view of our above discussion and findings, we reject this contention. tion, and the failure so to deny is not adequate- ly explained, such allegation shall be deemed to be admitted to be true, and may be so found by the Board without the taking of evidence supporting such allegation, and the respondent shall be precluded from introducing any evi- dence controverting said allegation. The backpay specification, issued and served on Respondent on or about March 31, specifically states that Respondent shall, within 15 days from the date of service, file an answer to the specifica- tion. The specification further states that, to the extent that such answer fails to deny allegations of the specification in the manner required under the Board's Rules and Regulations, and the failure to do so is not adequately explained, such allegations shall be deemed to be admitted to be true and Re- spondent shall be precluded from introducing any evidence controverting them. Respondent has failed to respond to the Notice To Show Cause and therefore the allegations of the General Counsel's motion stand uncontroverted. As Respondent has not filed a sufficient answer to the specification, nor offered any explanation for its failure to do so, the allegations of the specification, in accordance with the rules set forth above, are deemed to be admitted as true and are so found by the Board. Accordingly, on the basis of the allegations of the backpay specification, the Board finds the facts as set forth therein to be true, concludes that the net backpay due to the employees is as stated in the computations of the specification, and herein- after orders that payment be made by Respondent to the employees named below. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Re- lations Board hereby orders that the Respondent, Jerome Fink & Sons, Inc., Toledo, Ohio, its offi- cers, agents, successors, and assigns, shall make whole each of the employees named below by pay- ment to each of them the amount set forth adjacent to his name, plus interest thereon to be computed in the manner prescribed in Florida Steel Corpora- tion, 231 NLRB 651 (1977), 5 until payment of all backpay is made, less tax withholdings required by Federal and state law: Harold Fisher Lary Peske $862.16 642.00 "See. generally, liv Plumbing &d leating Co., 138 NLRB 716 (19h2) In accordance with his dissent in Olvnpic M edical Corporation. 250 NL.RB 146 (1980). Member Jenkins would award interest on the backpay due based on the formula set firth therein. 1114 JEROME FINK & SONS. INC Sam Moccabee Ed Fisher Joseph Kovacs Juan Garcia Estate of Alphonse Webber James Hughes Stanley Okinka 8.00 568.00 704.00 587.10 84.00 153.00 11.25 Jose Perez Guadalupe Lopez Louis Sharfman Orlie Boggs Douglas Van Notta Allen Miller Dale Williams I 1 5 122.40 76.50 480.(X) 7.95 6.51 2 1.(X) 19.25 Copy with citationCopy as parenthetical citation