This National Labor Relations Board (NLRB) decision concerns a motion for default judgment filed by the Acting General Counsel against New World Construction, Inc. (the Respondent). The motion was based on the Respondent's failure to file an answer to a consolidated complaint that alleged violations of Section 8(a)(5), (3), and (1) of the National Labor Relations Act (the Act).

The complaint, issued by the Regional Director for Region 4 following charges filed by Delaware Laborers’ Local 199 (the Union), alleged that the Respondent engaged in unlawful conduct, including the discharge of employees Antwan Bell and Curtis Hamilton to discourage union activity and concerted activities, and by ceasing to abide by the terms of a collective-bargaining agreement, such as failing to make required contributions to various union funds and to remit checkoff dues. The complaint also alleged that the Respondent failed and refused to provide the Union with requested information necessary for its role as the exclusive bargaining representative.

The Respondent failed to file an answer to the consolidated complaint within the prescribed timeframe. Subsequently, the Chief Administrative Law Judge, acting under Board rules, transferred the proceeding to the Board and issued a Notice to Show Cause why the motion for default judgment should not be granted. The Respondent did not respond to this notice.

The Board, in its decision, noted that its rules (29 C.F.R. § 102.20) provide that allegations in a complaint are deemed admitted if an answer is not filed within 14 days, absent good cause. The complaint and subsequent notices explicitly warned the Respondent of the consequences of failing to file an answer, including the possibility of a default judgment. Despite these warnings and the fact that the Respondent was proceeding without counsel, the Board consistently holds that pro se status alone does not constitute good cause for failing to file an answer, citing cases such as Patrician Assisted Living Facility and Sage Professional Painting Co.

Because the Respondent offered no good cause for its failure to file an answer, the Board deemed the allegations in the complaint to be true and granted the Acting General Counsel's Motion for Default Judgment.

The Board then adopted the complaint's allegations as findings of fact. These included: * The Respondent's jurisdiction as an employer in the construction industry. * The appropriate bargaining unit of employees classified as Laborers in Delaware. * The Respondent's execution of an agreement to be bound by a collective-bargaining agreement with the Union. * The Union's status as the exclusive collective-bargaining representative. * The unlawful discharge of Antwan Bell and Curtis Hamilton on December 19, 2022, because they joined and assisted the Union and engaged in concerted activities, and to discourage such activities. * The Respondent's cessation of adherence to the collective-bargaining agreement since August 3, 2022, by failing to make contributions to various union funds and failing to remit checkoff dues. * The Respondent's failure and refusal to provide the Union with requested information concerning employees' names, addresses, work hours, pay rates, union membership, and construction craft laborer hours, which was necessary and relevant to the Union's bargaining duties.

Based on these findings, the Board concluded that the Respondent violated Section 8(a)(3) and (1) of the Act by discriminatorily discharging Bell and Hamilton and thereby discouraging union membership. The Respondent also violated Section 8(a)(5) and (1) of the Act by failing and refusing to bargain collectively and in good faith with the Union, specifically by failing to make required fund contributions, failing to remit checkoff dues, and failing to provide requested information.

The Board ordered the Respondent to cease and desist from these unfair labor practices and to take affirmative actions. These included offering reinstatement to Bell and Hamilton, making them whole for lost earnings and other pecuniary harms, including adverse tax consequences and search-for-work expenses, with backpay computed according to established Board precedent (F. W. Woolworth Co., New Horizons, Kentucky River Medical Center, Thryv, Inc.). The Respondent was also ordered to remove references to the unlawful discharges from its files and notify the employees.

Furthermore, the Respondent was ordered to make whole its unit employees by making all delinquent contributions to the specified union funds, including additional amounts due and reimbursement for any expenses incurred due to the delinquency, with interest (Merryweather Optical Co., Kraft Plumbing & Heating, Ogle Protection Service). The Respondent was also ordered to make the Union whole for all dues that would have been paid had the Respondent not unlawfully withheld them, and to reimburse employees for any expenses arising from this failure, with interest. Finally, the Respondent was ordered to furnish the Union with the requested information. The Board also ordered the Respondent to post a notice to employees. The Board denied the Acting General Counsel's request for the Respondent to mail the notice to employees, finding it unnecessary given the circumstances, though Member Prouty dissented on this point.

The decision was issued by Members Prouty, Murphy, and Mayer.

Significant Cases Cited

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