Parisian Manicure Mfg. Co.Download PDFNational Labor Relations Board - Board DecisionsSep 23, 1981258 N.L.R.B. 203 (N.L.R.B. 1981) Copy Citation PARISIAN MANICURE MFG. CO. Parisian Manicure Mfg. Co., Inc. and its alter ego Allure Marketing Corp., and James V. Nucito and Roseanne Nucito, Individuals and Plastic Moulders' and Novelty Workers Union, Local 132, I.L.G.W.U. Case 2-CA-17593 September 23, 1981 DECISION AND ORDER BY MEMBERS FANNING, JNKINS, AND ZIMMERMAN Upon a charge and amended charges filed on October 14 and 28 and November 14, 1980, respec- tively, by Plastic Moulders' and Novelty Workers Union, Local 132, I.L.G.W.U., herein called the Union, and duly served on Parisian Manicure Mfg. Co., Inc. and its alter ego Allure Marketing Corp., and James V. Nucito and Roseanne Nucito, indi- viduals, herein collectively called Respondent, the General Counsel of the National Labor Relations Board, by the Regional Director for Region 2, issued a complaint and notice of hearing on De- cember 9, 1980, against Respondent, alleging that Respondent had engaged in and was engaging in unfair labor practices affecting commerce within the meaning of Sections 8(a)(5) and (1) and 8(d) and Section 2(6) and (7) of the National Labor Re- lations Act, as amended. Copies of the charges and complaint and notice of hearing before an adminis- trative law judge were duly served on the parties to this proceeding. With respect to the unfair labor practices, the complaint alleges in substance that Respondent is now and has been at all material times a member of the Plastic & Metal Products Manufacturers Asso- ciation, Inc. (herein the Association), and that by virtue of such membership the Union is the exclu- sive representative of certain of Respondent's em- ployees in a unit appropriate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act,' and that Respondent violated Sec- tions 8(a)(1) and (5) and 8(d) by repudiating the current collective-bargaining agreement between the Union and the Association, withdrawing recog- nition of the Union, and unilaterally changing exist- ing terms and conditions of employment of its em- ployees in the appropriate unit by refusing to abide by the collective-bargaining agreement regarding payment of health, welfare, and retirement contri- butions, remittance of union dues and initiation fees, and payment of wage increases. By letter dated December 13, 1980, Roseanne Nucito, on behalf of Respondent Allure, stated: "We Deny the I The unit, as stated in the complaint, is: All workers employed b members of the Association .. excepting only office help, salesmen. supervisor employees and watchmen 258 NLRB No. 24 allegations stated in the notice you sent us. Please set the date for the hearing." On May 21, 1981, counsel for the General Coun- sel filed directly with the Board a "Motion for Summary Judgment and Issuance of Decision and Order" based on Respondent's failure to file a suffi- cient answer as required by Section 102.20 of the National Labor Relations Board Rules and Regula- tions, Series 8, as amended. Subsequently, on June 1, 1981, the Board issued an order transferring the proceeding to the Board and a Notice To Show Cause why the General Counsel's Motion for Sum- mary Judgment should not be granted. Respondent did not file a response to the Notice To Show Cause. 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 102.20 of the Board's Rules and Regula- tions, Series 8, as amended, provides: The respondent shall, within 10 days from the service of the complaint, file an answer there- to. The respondent shall specifically admit, deny, or explain each of the facts alleged in the complaint, unless the respondent is without knowledge, in which case the respondent shall so state, such statement operating as a denial. All allegations in the complaint, if no answer is filed, or any allegation in the complaint not specifically denied or explained in an answer filed, unless the respondent shall state in the answer that he is without knowledge, shall be deemed to be admitted to be true and shall be so found by the Board, unless good cause to the contrary is shown. The complaint specifically states that unless an answer is filed within 10 days of service thereof "all of the allegations in the Complaint shall be deemed to be admitted to be true and shall be so found by the Board." Further, according to the un- controverted allegations of the Motion for Sum- mary Judgment, Board agents notified Respondent on several occasions that Nucito's December 13 letter was not an adequate answer, that Respondent has specifically to admit or deny each allegation in the complaint, and that, if Respondent did not file an answer or request an extension of time to do so, counsel for the General Counsel would file a Motion for Summary Judgment. Respondent has 203 DECISIONS OF NATIONAL LABOR RELATIONS BOARD not filed any further answer, nor has it requested an extension of time within which to do so. Respondent's December 13 letter, stating that "We Deny the allegations stated in the notice you sent us," does not constitute a sufficient answer under Section 102.20.2 In view of Respondent's failure to file an answer which comports with the Board's Rules and Regulations, and as no other good cause has been shown therefor, the allega- tions of the complaint are deemed to be admitted to be true and are so found by the Board, and the General Counsel's Motion for Summary Judgment is granted. On the basis of the entire record. the Board makes the following: FINDINGS OF FACT I. THE BUSINESS OF RESPONDENT Parisian Manicure Mfg. Co., Inc., a New York corporation with an office and place of business in New York City, was at all material times herein until on or about September 4, 1980, engaged in the manufacture and nonretail sale of ladies' emory boards, manicure sticks, and related products. An- nually, in the course and conduct of its business op- erations, Parisian sold directly to firms located out- side the State of New York finished products and materials valued in excess of $50,000. Since on or about September 4, 1980, Allure Marketing Corp., a New York corporation with an office and place of business in New York City, has been and is now engaged in the manufacture and nonretail sale of ladies' emory boards, manicure sticks, and related products. Based on its operations since September 4, 1980, Allure, in the course and conduct of its business operations, will annually sell and distribute directly to firms located outside the State of New York finished products and materials valued in excess of $50,000. At all times material herein, Parisian and Allure have been affiliated business enterprises with common officers, direc- tors, management, and supervision, have formulat- ed and administered a common labor policy affect- ing the employees of said operations, have shared common premises and facilities, and have inter- changed personnel with each other. At all material times, Respondents James and Roseanne Nucito have been sole stockholders and principals of Pari- sian and Allure, respectively, and have exercised substantial day-to-day control over the labor rela- tions and business operations of the respective cor- porate Respondents. 2 See 40 and 7 United Super. Inc. d/b/a United Super, 256 NLRB 1186 (1981); Lloyd Laundry & Dry Ceaning, 250 NLRI 1369 (1980) We find, on the basis of the foregoing, that Allure is, and has been since September 4, 1980, an alter ego to Parisian, that Parisian and Allure con- stitute a single employer within the meaning of the Act, and that Respondent is and has been at all times material herein, an employer engaged in com- merce within the meaning of Section 2(6) and (7) of the Act, and that it will effectuate the policies of the Act to assert jurisdiction herein. II. THE LABOR ORGANIZATION INVOLVED Plastic Moulders' and Novelty Workers Union, Local 132, I.L.G.W.U., is a labor organization within the meaning of Section 2(5) of the Act. iI1. THE UNFAIR LABOR PRACTICES A. The Unit The Plastic & Metal Products Manufacturers As- sociation, Inc., is an association composed of em- ployers located in the city and State of New York which are engaged in the business of manufactur- ing and selling, inter alia, ladies' manicure items and related products. The Association exists for the purpose, inter alia, of representing its employer- members in negotiating and administering collec- tive-bargaining agreements with the Union. Re- spondent, at all material times has been, and is now, an employer-member of the Association. The following employees constitute a unit appro- priate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act: All workers employed by members of the As- sociation . . . excepting only office help, sales- men, supervisory employees and watchmen. B. The Representative Status of the Union The Union is now, and has been at all material times, the exclusive bargaining representative of the employees in the above-described unit within the meaning of Section 9(a) of the Act and the Union has been recognized as such representative by Respondent. Such recognition has been em- bodied in successive collective-bargaining agree- ments, the most recent of which is effective by its terms for the period July 1, 1979, through June 30, 1982. C. The Violations Respondent has unilaterally changed existing terms and conditions of employment of its employ- ees in the unit described above, has repudiated the collective-bargaining process, and has unilaterally withdrawn recognition of the Union by: Since on or about April 16, 1980, failing and refusing to 204 PARISIAN MANICURE MFG. CO. make health, welfare, and retirement fund contribu- tions; since on or about July 1, 1980, failing and re- fusing to pay wage increases; and since on or about September 4, 1980, failing to withhold union dues and initiation fees from the wages of its employees, all as required by the collective-bargaining agree- ment described above; and since in or about Sep- tember 1980 notifying its employees that they were no longer represented by the Union. Accordingly, we find that by the aforesaid con- duct Respondent has failed and refused, and is now failing and refusing, to bargain collectively with the Union as the exclusive representative of its em- ployees in the appropriate unit. By such conduct, Respondent has engaged in, and is engaging in, unfair labor practices within the meaning of Sec- tions 8(a)(1) and (5) and 8(d) of the Act. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of Respondent set forth in section III, above, occurring in connection with its oper- ations described in section I, above, have a close, intimate, and substantial relationship to trade, traf- fic, and commerce among the several States and tend to lead to labor disputes burdening and ob- structing commerce and the free flow of com- merce. V. THE REMEDY Having found that Respondent has engaged in and is engaging in unfair labor practices within the meaning of Sections 8(a)(5) and (1) and 8(d) of the Act, we shall order that it cease and desist there- from and take certain affirmative action designed to effectuate the policies of the Act. Such affirmative action shall include that Re- spondent recognize and deal with the Union as the exclusive bargaining representative of its employees in the appropriate unit by honoring the collective- bargaining agreement executed on July 1, 1979, in all its terms. Additionally, we have found that Respondent has made unilateral changes in certain terms and conditions of employment in violation of Section 8(a)(5) and (1) of the Act. In order to dissipate the effect of those unfair labor practices, we shall order Respondent to make whole its employees by making the required health, welfare, and retirement fund contributions that it has failed to pay since April 16, 1980,3 paying the wage increases it has 3 Contributions owing the Union's employee benefit funds shall be computed in the manner set forth in Merryweather Optical Company. 240 NLRB 1213, 1216, fn. 7 (1979) failed to pay since July 1, 1980, and remitting to the Union the dues and initiation fees it has failed to withhold from its employees' paychecks since September 4, 1980, plus interest on the wage in- creases and dues and initiation fees as prescribed in Florida Steel Corporation, 231 NLRB 651 (1977). 4 The Board, upon the basis of the foregoing facts and the entire record, makes the following: CONCLUSIONS OF LAW 1. Parisian Manicure Mfg. Co., Inc. and its alter ego Allure Marketing Corp. is an employer en- gaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. Plastic Moulders' and Novelty Workers Union, Local 132, I.L.G.W.U., is a labor organiza- tion within the meaning of Section 2(5) of the Act. 3. The Plastic & Metal Products Manufacturers Association, Inc., an association composed of em- ployers located in the city and State of New York which are engaged in the business of manufactur- ing and selling ladies' manicure items and related products, exists for the purpose, inter alia, of repre- senting its employer-members in negotiating and administering collective-bargaining agreements with the Union. 4. Respondent at all material times has been, and is now, an employer-member of the Association. 5. All workers employed by members of the As- sociation . . . excepting only office help, salesmen, supervisory employees and watchmen, constitute a unit appropriate for the purposes of collective bar- gaining within the meaning of Section 9(b) of the Act. 6. At all times material herein, the above-named labor organization has been and now is the exclu- sive representative of all employees in the aforesaid appropriate unit for the purpose of collective bar- gaining within the meaning of Section 9(a) of the Act. 7. By unilaterally failing and refusing: To make health, welfare, and retirement fund contributions since on or about April 16, 1980; to pay wage in- creases to its employees since on or about July 1, 1980; and to withhold union dues and initiation fees from its employees' wages since on or about Sep- tember 4, 1980, all as required by its collective-bar- gaining agreement with the Union, and by notify- ing its employees, in or about September 1980, that they were no longer represented by the Union, Re- spondent has engaged in and is engaging in unfair I See Ogle Protection Service. Inc.. and Jamc. L. Ogle, 183 NLRB 682. 683 (1970); and ee, generally. Isis Plumbing & ellating Co., 138 NLRB 716 (1962). 205 DECISIONS OF NATIONAL LABOR RELATIONS BOARD labor practices within the meaning of Sections 8(a)(l) and (5) and 8(d) of the Act. 8. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Section 2(6) and (7) of the Act. 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, Parisian Manicure Mfg. Co., Inc. and its alter ego Allure Marketing Corp., New York, New York, its officers, agents, successors, and assigns, and James V. Nucito and Roseanne Nucito, shall: 1. Cease and desist from: (a) Refusing to bargain collectively with the Union as the exclusive bargaining representative of its employees in the following appropriate unit: All workers employed by members of the As- sociation . . . excepting only office help, sales- men, supervisory employees and watchmen. (b) Failing and refusing to make health, welfare, and retirement fund contributions, to pay wage in- creases, and to withhold union dues and initiation fees from its employees' wages, all as required by its collective-bargaining agreement with the Union. (c) Notifying its employees that they are no longer represented by the Union. (d) In any like or related manner interfering with, restraining, or coercing employees in the ex- ercise of the rights guaranteed them in Section 7 of the Act. 2. Take the following affirmative action designed to effectuate the policies of the Act: (a) Recognize and bargain with the Union as the exclusive representative of its employees in the aforesaid appropriate unit and honor the collective- bargaining agreement executed on July 1, 1979, in all its terms. (b) Make whole its employees, in the manner set forth in the section of this Decision entitled "The Remedy," by making the required health, welfare, and retirement fund contributions it has failed to pay since April 16, 1980, by paying to employees any wage increases it has failed to pay since July 1, 1980, plus interest, and by remitting to the Union the dues and initiation fees it has failed to withhold from its employees' pay since September 4, 1980, plus interest, all as required by its collective-bar- gaining agreement with the Union. (c) Preserve and, upon request, make available to the Board or its agents, for examination and copy- ing, all payroll records, social security payment re- cords, timecards, personnel records and reports, and all other records necessary to analyze the amount of backpay due under the terms of this Order. (d) Post at its New York, New York, place of business copies of the attached notice marked "Ap- pendix." 5 Copies of said notice, on forms provided by the Regional Director for Region 2, after being duly signed by Respondent's representative, shall be posted by Respondent immediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by Re- spondent to insure that said notices are not altered, defaced, or covered by any other material. (e) Notify the Regional Director for Region 2, in writing, within 20 days from the date of this Order, what steps have been taken to comply herewith. 5 In the event that 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 Pursu- ant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WIL. NOT refuse to bargain collectively concerning rates of pay, wages, hours, and other terms and conditions of employment with Plastic Moulders' and Novelty Workers Union, Local 132, I.L.G.W.U., as the exclusive representative of our employees in the follow- ing bargaining unit: All workers employed by members of the Association . . . excepting only office help, salesmen, supervisory employees and watch- men. WE WILL NOT unilaterally change existing terms and conditions of employment of our employees in the above-described unit by fail- ing and refusing to make health, welfare, and retirement fund contributions; pay our employ- ees wage increases; and withhold union dues and initiation fees from our employees' wages, all as required by our collective-bargaining agreement with the Union. WE WILL NOT notify our employees that they are no longer represented by the Union. WE WILL NOT in any like or related manner interfere with, restrain, or coerce our employ- ees in the exercise of the rights guaranteed them by Section 7 of the Act. 206 PARISIAN MANICURE MFG. CO. WE WILL recognize and bargain with the Union as the exclusive representative of our employees in the above-described unit and honor the collective-bargaining agreement ex- ecuted on July 1, 1979, in all its terms. WE WILL make whole our employees by making the health, welfare, and retirement fund contributions we have failed to pay since April 16, 1980; paying our employees any wage increases that we have failed to pay since July 1, 1980, plus interest; and remitting to the Union the dues and initiation fees we have failed to withhold from our employees' pay since September 4, 1980, plus interest, all as required by our collective-bargaining agree- ment with the Union. PARISIAN MANICURE MFG. CO., INC. AND ITS ALTER EGO ALLURE MAR- KETING CORP., AND JAMES V. NUCITO AND ROSEANNE NUCITO, IN- DIVIDUALS 207 Copy with citationCopy as parenthetical citation