Default Judgement Against Company for Refusing to Sign CBA

The Oil Man Corporation agreed to a new contract with Sheet Metal Workers Local 19, then refused to sign it. The union filed an 8(a)(5) charge. The NLRB issued a complaint. The company never filed an answer.

The company’s dumb argument: Counsel’s “unintentional error” and illness during March and April.

“Inadvertent inattention of counsel” isn’t good reason. Neither is attorney illness — because even a sick lawyer can pick up the phone and ask for an extension. This one didn’t do that, despite the Region calling, emailing, and extending the deadline twice.

The result: every allegation deemed admitted. The company must now execute the contract retroactively, make employees whole with daily-compounded interest, and cover tax consequences on the backpay.

The lesson for employers: NLRB deadlines are real. If you can’t meet one, request an extension in writing — immediately. Silence is the most expensive answer you can give.