The Camelot Sample Group, Inc.

National Labor Relations Board - Administrative Judge Opinions

Jul 28, 2009

29-CA-029473 (N.L.R.B. Jul. 28, 2009)

JD(NY)-30-09
Brooklyn, NY
UNITED STATES OF AMERICA
BEFORE THE NATIONAL LABOR RELATIONS BOARD
DIVISION OF JUDGES
NEW YORK BRANCH OFFICE
THE CAMELOT SAMPLE GROUP, INC.
and Case No. 29-CA-29473
LOCAL 4-107, UNITED STEEL, PAPER AND
FORESTRY, RUBBER, MANUFACTURING, ENERGY,
ALLIED INDUSTRIAL AND SERVICE WORKERS
INTERNATIONAL UNION
Nancy Lipin, Esq., Counsel for
the General Counsel
DECISION
Statement of the Case
STEVEN DAVIS, Administrative Law Judge. I heard this case in Brooklyn, NY on July
7, 2009. The Respondent did not appear in person or by counsel.
The charge in this proceeding was filed on February 27, 2009 and served by regular mail
upon The Camelot Sample Group, Inc. (Respondent) on March 3, 2009.
A Complaint and Notice of Hearing dated May 29, 2009 was issued by the Regional
Director of Region 29 of the National Labor Relations Board. An affidavit of service was signed
by Cecilia Leon showing that the Complaint and Notice of Hearing were mailed to Respondent
on May 29, 2009. The U.S. Postal Service Return Receipt shows that the Complaint was
delivered to the Respondent, by certified mail, on June 3, 2009, and signed for by Ira Pearlman,
its owner on that date.
By letter dated June 17, 2009, Nancy Lipin, Counsel for the General Counsel, advised
Respondent’s owner, Mr. Pearlman, that the Regional Office had issued a Complaint; that he
had been served with a copy of the Complaint; that the Respondent was required to file an
Answer by June 12, 2009, but did not. The letter warned Mr. Pearlman that unless an answer
was filed by June 23, 2009, the General Counsel would seek a Default Judgment.
At the hearing, Ms. Lipin stated that on June 19, 2009, Mr. Pearlman phoned her, saying
that he had received the Complaint and the June 17th letter and had forwarded those documents
to his bankruptcy attorney, Gilbert Lazarus, as he had filed for Chapter 7 bankruptcy in early
June. On June 23, 2009, Mr. Lazarus phoned Ms. Lipin, advising her that he was not filing an
Answer, and that he did not believe he had to because Respondent had already filed for
bankruptcy. He also stated that he would not be representing Mr. Pearlman in this matter. Ms.
Lipin advised him that the Answer was due that day, and that if none was filed she would move
for a default judgment.
Section 102.20 and 102.21 of the Board’s Rules and Regulations provides that the
allegations of the 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
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affirmatively states that unless an answer was filed on or before June 12, 2009, the Board may
find, pursuant to a Motion for Default Judgment, that the allegations in the complaint are true. As
set forth above, the complaint was signed for by the Respondent’s owner who stated that he
received it. No answer was filed by June 12, or by the extended date of June 23.

No Answer having been filed in this proceeding, I hereby make the following:
I. Findings of Fact and Conclusions of Law
1. The Respondent, a domestic corporation having its principal office and place of
business at 140 58th Street, Building B, Unit 5D, Brooklyn, New York, has been engaged in the
business of manufacturing fabric sample books for use in the interior decorating industry.
2. Allied Sample Card Company, Inc., a domestic corporation having its principal office
and place of business at 140 58th Avenue, Suite 7A, Brooklyn, New York, has been engaged in
the business of manufacturing fabric sample books for use in the interior decorating industry.
3. At all material times, National Sample Card Manufacturers Association has been an
organization composed of various employers, including Respondent and Allied, engaged in the
business of manufacturing fabric sample books for use in the interior decorating industry, one
purpose of which is to represent its employer-members in negotiating and administering
collective bargaining agreements with the Union.
4. At all material times, Respondent and Allied have each been employer-members of
the Association, and have authorized it to represent them collectively in negotiating and
administering collective bargaining agreements with the Union.
5. During the past twelve months, Respondent and Allied, in the course and conduct of
their business operations, together, purchased and received at their respective Brooklyn
facilities, goods and materials valued in excess of $50,000 directly from suppliers located
outside the State of New York.
6. At all material times, Respondent has been an employer engaged in commerce within
the meaning of Section 2(2), (6) and (7) of the Act.
7. At all material times, Local 4-107, United Steel, Paper and Forestry, Rubber,
Manufacturing, Energy Allied Industrial and Service Workers International Union has been a
labor organization within the meaning of Section 2(5) of the Act.
8. The following employees of the employer-members of the Association, including
Respondent, constitute a unit appropriate for the purposes of collective bargaining within the
meaning of Section 9(b) of the Act:
All production, maintenance, shipping and delivery employees employed by the
employer-members of the Association, including Respondent, excluding owners,
officers, office employees, salesmen, artists, foremen, guards and supervisors within the
meaning of the Act.
9. At all material times, the Union has been the designated collective bargaining
representative of the Unit, and has been recognized as the representative by the Association,
including Respondent. Such recognition has been embodied in successive collective bargaining
agreements between the Association and the Union, the most recent of which is effective from
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November 15, 2007 through November 14, 2010.
10. At all material times, by virtue of Section 9(a) of the Act, the Union has been the
exclusive collective-bargaining representative of the Unit, for the purposes of collective
bargaining.
11. The Agreement referred to above in paragraph 9, contains provisions for, inter alia,
Respondent to:
(a) Pursuant to Article 35, make certain monthly contributions to the Welfare Trust Fund
on behalf of Unit employees;
(b) Pursuant to Article 9, remit dues, deducted from the wages of employees in the
Unit, to the Union on or before the 20th day of each month;
(c) Pursuant to Articles 21 through 26, pay employees’ wages in accordance with their
classification and length of service; and,
(d) Pursuant to Article 17, pay employees accrued vacation pay.
12. The subjects set forth in paragraph 11 relate to wages, hours and other terms and
conditions of employment of employees in the Unit, and are mandatory subjects for the
purposes of collective bargaining.
13. Since on or about the dates set forth below, Respondent has failed to continue in
effect all the terms and conditions of the Agreement, as described above in paragraph 11, as
follows:
(a) October, 2008 – ceased making contributions to the Welfare Trust Fund;
(b) December, 2008 – ceased remitting dues, deducted from Unit employees’ wages, to
the Union;
(c) Mid February, 2009 – ceased paying Unit employees their wages; and,
(d) February and March, 2009 – failed to pay Unit employees their accrued vacation
pay.
14. Respondent engaged in the conduct described above in paragraph 13 without the
Union’s consent.
15. On or about February 27, 2009, Respondent laid off the majority of the Unit
employees employed at its Brooklyn facility, and by no later than March 21, 2009, laid off any
remaining Unit employees.
16. The subject set forth in paragraph 15, relates to wages, hours and other terms and
conditions of employment of the Unit and is a mandatory subject for the purpose of collective
bargaining.
17. The Respondent engaged in the conduct described above in paragraph 15 without
prior notice to the Union and without affording the Union an opportunity to bargain with
Respondent with respect to this conduct and the effects of this conduct.
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18. By the conduct described above in paragraphs 13 and 14, the Respondent has
failed and refused to bargain collectively and in good faith with the Union as the exclusive
collective-bargaining representative of the Unit, within the meaning of Section 8(d) of the Act
and thereby has been engaging in unfair labor practices within the meaning of Section 8(a)(1)
and (5) of the Act.
19. By the conduct described above in paragraphs 15 and 17, Respondent has failed
and refused to bargain collectively and in good faith with the Union as the exclusive collective-
bargaining representative of the Unit, and thereby has been engaging in unfair labor practices
within the meaning of Section 8(a)(1) and (5) of the Act.
20. The unfair labor practices of Respondent, described above, affect commerce within
the meaning of Section 2(6) and (7) of the Act.
II. The Remedy
Having found that the Respondent has engaged in certain unfair labor practices, I find
that it must be ordered to cease and desist and to take certain affirmative action designed to
effectuate the policies of the Act.
Having determined that the Respondent has violated the Act, in accordance with
Transmarine Navigation Corp., 170 NLRB 389 (1968), I shall recommend that the Respondent
make whole the employees for losses suffered as a result of the violation by paying those
employees, for a period of not less than two weeks, from 5 days after the date of the Board’s
Decision until the earliest of the following conditions: (1) the date the Respondent bargains for
agreement with the Union on the subject pertaining to the effect of the layoff of the
Respondent’s employees; (2) a bona fide impasse in bargaining; (3) the failure of the Union to
request bargaining within 5 days of the Decision in this case, or to commence negotiations
within 5 days of the Respondent’s notice of its desire to bargain with the Union; or (4) the
subsequent failure of the Union to bargain in good faith; but in no event shall the sum paid to
any of these employees exceed the amount he or she would have earned as wages from the
date on which the Respondent laid him or her off to the time he or she secured equivalent
employment elsewhere, provided however, that in no event shall this sum be less than these
employees would have earned for a 2-week period at the rate of their normal wages when last
in the Respondent’s employ.
To the extent that the employees in the Unit suffered any loss of earnings, I shall
recommend that they be made whole, for any loss of earnings and other benefits, computed on
a quarterly basis from the date of their layoffs, less any net earnings, as prescribed in F.W.
Woolworth Co., 90 NLRB 289 (1950), plus interest as computed in New Horizons for the
Retarded, 283 NLRB 1173 (1987). In this respect, I reject the General Counsel’s contention
that interest of any monetary compensation be computed on a compounded quarterly basis as
that is not the current law. Cox Ohio Publishing, 354 NLRB No. 32, slip op. at n.5 (2009).
Respondent must remit all contractually required payments to the Welfare Trust Fund
with interest as provided in Merryweather Optical Co., 230 NLRB 1213, (1979), and Respondent
must make employees whole for any expenses they may have incurred as a result of
Respondent’s failure to make such payments, as set forth in Kraft Plumbing & Heating, 252
NLRB 891 (1980).
The Respondent having discriminatorily laid off its employees, it must offer them
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reinstatement and make them whole for any loss of earnings and other benefits, computed on a
quarterly basis from the date of layoff to the date of a proper offer of reinstatement, less any net
interim earnings, as prescribed in F. W. Woolworth Co., 90 NLRB 289 (1950), plus interest as
computed in New Horizons for the Retarded, 283 NLRB 1173 (1987).
On these findings of fact and conclusions of law and on the entire record, I issue the
following recommended1
ORDER
The Respondent, Camelot Sample Group, its officers, agents, and representatives, shall
1. Cease and desist from
(a) Refusing to bargain with Local 4-107, United Steel, Paper and Forestry, Rubber,
Manufacturing, Energy, Allied Industrial and Service Workers International Union, by failing to
continue in effect all the terms and conditions of the Agreement, without the Union’s consent, by
failing to:
(1) Make contributions to the Welfare Trust Fund;
(2) Remit dues, deducted from Unit employees’ wages, to the Union;
(3) Pay Unit employees their wages; and,
(4) Pay Unit employees their accrued vacation pay.
(b) Laying off its employees without prior notice and without affording the Union an
opportunity to bargain with Respondent with respect to this conduct and the effects of this
conduct.
(c) In any like or related manner interfere with, restrain or coerce employees in the rights
guaranteed to them by Section 7 of the Act.
2. Take the following affirmative action necessary to effectuate the policies of the Act.
(a) Make contributions to the Welfare Trust Fund;
(b) Remit dues, deducted from Unit employees’ wages, to the Union;
(c) Pay Unit employees their wages;
(d) Pay Unit employees their accrued vacation pay;
(e) Reinstate the employees it laid off;
(f) Within 14 days from the date of the Board’s Order, offer employees full reinstatement

1 If no exceptions are filed as provided by Sec. 102.46 of the Board’s Rules and Regulations, the
findings, conclusions, and recommended Order shall, as provided in Sec. 102.48 of the Rules, be
adopted by the Board and all objections to them shall be deemed waived for all purposes.
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to their former jobs or, if that job no longer exists, to a substantially equivalent position, without
prejudice to their seniority or any other rights or privileges previously enjoyed;
(g) Make employees whole for any loss of earnings and other benefits suffered as a
result of the discrimination against them in the manner set forth in the remedy section of the
decision;
(h) Within 14 days from the date of the Board’s Order, remove from its files any
reference to the unlawful layoffs, and within 3 days thereafter notify the employees in writing
that this has been done and that the layoffs will not be used against them in any way;
(i) 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 designated by the
Board or its agents, all payroll records, social security payment records, timecards, personnel
records and reports, and all other records, including any electronic copy of such records if
stored in electronic form, necessary to analyze the amount of backpay due under the terms of
this Order;
(j) Within 14 days after service by the Region, duplicate and mail, at its own expense, to
all current employees and former employees employed by the Respondent at any time since
October 1, 2008, a copy of the attached notice marked “Appendix.” 2 Copies of the notice, on
forms provided by the Regional Director for Region 29, shall be signed by the Respondent’s
authorized representative;
(k) Within 21 days after service by the Region, file with the Regional Director 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.
Dated, Washington, D.C., July 28, 2009.
____________________
Steven Davis
Administrative Law Judge

2 If this Order is enforced by a Judgment of the 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 RELATIONS BOARD.”
JD(NY)-30-09
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 violated Federal labor law and has
ordered us to post and obey this Notice.
Section 7 of the Act gives employees these rights:
To organize
To form, join, or assist any union
To bargain collectively through representatives of their own choice
To act together for other mutual aid or protection
To choose not to engage in any of these protected concerted activities.
WE WILL NOT refuse to bargain with Local 4-107, United Steel, Paper, and Forestry, Rubber,
Manufacturing, Energy Allied Industrial and Service Workers International Union, by failing to
continue in effect all the terms and conditions of the Agreement, without the Union’s consent, by
failing to:
(a) Make contributions to the Welfare Trust Fund;
(b) Remit dues, deducted from Unit employees’ wages, to the Union;
(c) Pay Unit employees their wages; and,
(d) Pay Unit employees their accrued vacation pay.
WE WILL NOT lay off employees without prior notice and without affording the Union an
opportunity to bargain with respect to this conduct and the effects of this conduct.
WE WILL NOT in any like or related manner interfere with, restrain or coerce employees in the
rights guaranteed to them by Section 7 of the Act.
WE WILL make contributions to the Welfare Trust Fund.
WE WILL remit dues, deducted from Unit employees’ wages, to the Union.
WE WILL pay Unit employees their wages.
WE WILL pay Unit employees their accrued vacation pay.
WE WILL reinstate the employees we laid off.
JD(NY)-30-09
WE WILL make whole our employees for any loss of earnings plus interest.
THE CAMELOT SAMPLE GROUP, INC.
(Employer)
Dated By
(Representative) (Title)
The National Labor Relations Board is an independent Federal agency created in 1935 to enforce the National Labor
Relations Act. It conducts secret-ballot elections to determine whether employees want union representation and it
investigates and remedies unfair labor practices by employers and unions. To find out more about your rights under
the Act and how to file a charge or election petition, you may speak confidentially to any agent with the Board’s
Regional Office set forth below. You may also obtain information from the Board’s website: www.nlrb.gov.
Two MetroTech Center (North), Jay Street and Myrtle Avenue, 5th Floor
Brooklyn, New York 11201-4201
Hours: 9 a.m. to 5:30 p.m.
718-330-7713.
THIS IS AN OFFICIAL NOTICE AND MUST NOT BE DEFACED BY ANYONE
THIS NOTICE MUST REMAIN POSTED FOR 60 CONSECUTIVE DAYS FROM THE DATE OF POSTING AND MUST
NOT BE ALTERED, DEFACED, OR COVERED BY ANY OTHER MATERIAL. ANY QUESTIONS CONCERNING THIS
NOTICE OR COMPLIANCE WITH ITS PROVISIONS MAY BE DIRECTED TO THE ABOVE REGIONAL OFFICE’S
COMPLIANCE OFFICER, 718-330-2862.