Extract
Yorke, Nathan Trustee, 819 (1981)
NATHAN YORKE, TRUSTEE 819
Nathan Yorke, Trustee in Bankruptcy, Successor in seven employees were still actively working.3It Bankruptcy, or Alter Ego to the Seeburg Corpo- appears the layoffs and recalls took place in acration and Seeburg Service Parts Co.,' a Single cordance with the seniority provisions of the parEmployer and Local Union 743, Warehouse, ties' collective-bargaining agreement and that the Mail Order, Technical and Professional Emr -Maployees U , Inecrnatinal Barothfessional Union did not request bargaining or object to anyployees Union, International Brotherhood of of the layoffs when they occurred.Teamsters, Chauffeurs, Warehousemen and f he layoffs when they occurred.Helpers of America. Case 13-CA-19631 On February 4, 1980, the bankruptcy court appointed Nathan Yorke to act as Seeburg's trustee in December 28, 1981 bankruptcy and Yorke was given authority to conDECISIONAND ORDER ~ tinue to operate the business. At a creditors' meeting on February 8, 1980, Yorke learned from On April 23, 1981, Administrative Law Judge Joseph P. Dillon, Seeburg's treasurer and chairman Nancy M. Sherman issued the attached Decision in of its board, that Seeburg had lost about $350,000 this proceeding. Thereafter, the General Counsel since it had filed its October 19, 1979, petition, and and the Union filed exceptions and supporting that its liabilities exceeded $8 million and the book briefs and Respondent filed cross-exceptions and an value of its assets approximated $6 million which, answering brief. when liquidated, amounted to about $1.5 million.Pursuant to the provisions of Section 3(b) of the On February 11, 1980, Yorke requested, and the National Labor Relations Act, as amended, the Na- bankruptcy court issued, an order authorizing him, tional Labor Relations Board has delegated its au- interalia, to curtail Seeburg's operations by 'termithority in this proceeding to a three-member panel. nating all personnel save certain key individuals The Board has considered the record and the at- who will be retained for services the trustee deems tached Decision in light of the exceptions and necessary in furtherance of the instant reorganizabriefs and has decided to affirm the rulings, find- tion . . .ings, and conclusions of the Administrative Law Upon receipt of the order on February 11, Yorke Judge and to adopt her recommended Order, as shut down the plant facility used by both Seeburg modified herein. and Seeburg Service and released all personnel inThe Administrative Law Judge found, and we cluding the seven unit employees who were still agree, that Respondent violated Section 8(a)(5) and working on that date. 4Four days later, the Union (1) of the Act by terminating its operations at its found out about the shutdown and demanded that Chicago, Illinois, facility without prior notice to an immediate meeting be set up to discuss, inter the Union and without affording it an opportunity alia, the effects of Yorke's action. In his reply of to bargain with Respondent concerning the effects February 25, Yorke failed to accede to this of such conduct on unit employees. However, we demand. Thereafter, the bankruptcy court authordisagree with her further finding that no Transmar- ized Yorke to offer some parts for sale and, in ine backpay order2 is warranted in the circum- April 1980, Yorke and Dillon made arrangements stances of this case. with the Union to recall two or three individuals to The record shows that the unit employees were assist in this endeavor. According to Yorke, he covered by a 3-year collective-bargaining agree- 'operated the business' until July 1980, when, purment effective to September 1980. Prior to the va- suant to a court-approved reorganization plan, Seecation period which traditionally ends in mid- burg and its purchaser in liquidation, Stern ElecAugust, Respondent Seeburg had in mid-July 1979 tronics, agreed to set aside $49,000 of the estate's an active payroll of about 385 or 395 employees. assets should a finding of backpay liability ultimateHowever, as Seeburg had financial or cash-flow ly be made by the Board.? In addition, Stern Elecproblems, no one was called back to work until tronics agreed to cover an additional $6,000 of pomid-September 1979 when only 250 unit employees tential backpay liability. Upon completion of the were recalled. sale at the end of July 1980, Yorke terminated the On October 19, 1979, Seeburg filed a petition for employees who had been recalled in April 1980.reorganization under Chapter 11 of the Bankruptcy reorganization under Chapter II of the Bankruptcy I'Their names appear inthe record as follows: G. Pawlick, Mr. SzaAct. At this time, there were further layoffs and, fader, Johnnie Miller Mr. Kopczynski, T. Swienton, Mr. Lakos, and T by January 1980, the complement was reduced to A. valenza.about 60 employees. By February 4, 1980, only Pursuant to an order of the bankruptcy court. Yorke paid these emaou e. yy ployees their wages thro...See the full content of this document
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