Opinion ID: 386080
Heading Depth: 1
Heading Rank: 2

Heading: jurisdiction

Text: 13 The first issue on appeal is whether Nelson Electric transacts sufficient business affecting interstate commerce to be subject to the Board's jurisdiction. We hold that the Board properly asserted jurisdiction over Nelson Electric because it was a member of the multi-employer bargaining unit represented by the National Electric Contractors Association (NECA). 14 Nelson Electric's intent to be bound by group action may be demonstrated either by an express delegation of authority or alternatively, by a course of conduct which creates apparent authority in the NECA. NLRB v. R. O. Pyle Roofing Co., 560 F.2d 1370 (9th Cir. 1977). Nelson Electric's signing of the Letter of Assent-A is sufficient to subject it to the jurisdiction of the Board. Nelson Electric's contention that the Letter of Assent-A merely bound it to the terms of the collective bargaining agreement ignores the explicit language in the Letter of Assent-A expressly designating the NECA as Nelson Electric's collective bargaining representative. 15 Nelson Electric contends that it effectively withdrew from the NECA. However, withdrawal can be accomplished only at an appropriate time and, in the absence of Union consent, withdrawal is untimely if attempted after the commencement of negotiations. Contrary to the terms of the Letter of Assent-A, Nelson Electric did not withdraw 150 days prior to the current anniversary date of the agreement. 16 Indeed, Louella Nelson's letter, on behalf of Nelson Electric, withdrawing from the NECA was not written until February 24, 1977. Also, at least one payroll report was submitted for December, 1976 (two months after the original agreement expired). Thus, we also hold that Nelson Electric's conduct after the commencement of the new collective bargaining agreement on November 1, 1976 was sufficient to require its adherence to the terms of the 1976-78 collective bargaining agreement. See, H. S. Brooks Electric, Inc., 233 NLRB No. 889. ALTER EGO 17 The second issue on appeal is whether Nelson Electric can avoid its obligation to adhere to the terms of NECA's collective bargaining agreement by ceasing to do business. The Board found that Gary C. Nelson Electric and Gary C. Nelson, Inc. were alter egos of Nelson Electric. Thus, they were obligated to adhere to the terms of NECA's collective bargaining agreement. 18 The criteria which guide the Board's exercise of its discretion to determine if one company is the alter ego of another company are whether the two enterprises have substantially identical management, business, purpose, operation, equipment, customers, supervision and ownership. Crawford Door Sales Company, Inc., 226 NLRB No. 1144. The Board's function is to strike a balance among each of the criteria set forth in Crawford Door. Applying these principles, we hold that substantial evidence supports the Board's finding. 19 When Nelson Electric commenced operations, Louella Nelson had no prior experience in running an electrical contracting business. She remained at home and worked in a clerical capacity. She kept the books, paid the taxes, ordered supplies, and signed checks. Gary Nelson decided on which jobs to bid for the manpower necessary to complete the job. He also supervised all work. Gary C. Nelson Electric used the same equipment and checking account as was formerly used by Nelson Electric. Both businesses operated out of the Nelson's home. Louella Nelson's role in Gary C. Nelson Electric was limited to signing checks. All other business affairs were managed by Gary Nelson. Upon the formation of Gary C. Nelson, Inc., the only change from the operation of the prior companies was that Gary Nelson's truck was leased by him to the corporation. Most importantly, the cash assets of the three businesses were completely commingled. Only in May, 1977 was the name on the original bank account changed to Gary C. Nelson, Inc. 20 These facts are overwhelming evidence to support the Board's determination. 21 Accordingly, the Board's order is ENFORCED.