LGH Digital Media, Inc. dba Larson Studios, LLC

National Labor Relations Board - Unpublished Board Decisions

Jun 4, 2020

31-CA-248995 (N.L.R.B. Jun. 4, 2020)

UNITED STATES OF AMERICA
BEFORE THE NATIONAL LABOR RELATIONS BOARD
LGH DIGITAL MEDIA, INC. D/B/A
LARSON STUDIOS, LLC
and Cases 31-CA-248995
MOTION PICTURE EDITORS GUILD,
IATSE LOCAL 700
DECISION AND ORDER
Statement of the Cases
On April 7, 2020, LGH Digital Media, Inc. d/b/a Larson Studios, LLC (the
Respondent); Motion Picture Editors Guild, IATSE Local 700 (the Charging Party or
Union); and the General Counsel of the National Labor Relations Board entered into a
Formal Settlement Stipulation, subject to the Board’s approval, providing for the entry of
a consent order by the Board. The parties waived all further and other proceedings
before the Board to which they may be entitled under the National Labor Relations Act
and the Board’s Rules and Regulations.
The Formal Settlement Stipulation is approved and made a part of the record,
and the proceeding is transferred to and continued before the Board in Washington,
D.C., for the entry of a Decision and Order pursuant to the provisions of the Formal
Settlement Stipulation.
Based on the Formal Settlement Stipulation and the entire record, the Board
makes the following
Findings of Fact
1. The Respondent’s business
The Respondent has been a corporation with an office and place of business in
Los Angeles, California, where it has been in engaged in the business of providing post-
production sound services for television.
In conducting its business during the calendar year ending December 31, 2018,
the Respondent provided services valued in excess of $50,000 directly to customers
outside the state of California.
The Respondent has been, at all material times, an employer engaged in
commerce within the meaning of Section 2(2), (6), and (7) of the National Labor
Relations Act (the Act).
2. The labor organization involved
At all material times, the Motion Picture Editors Guild, IATSE Local 700, has
been a labor organization within the meaning of Section 2(5) of the Act.
3. The following employees of the Respondent (the “Unit”) constitute a unit
appropriate for the purposes of collective-bargaining within the meaning of Section 9(b)
of the Act:
Employees working in the classification listed in the August 1, 2003
agreement between Producer (Independents) and International Alliance of
Theatrical Stage Employes [sic] and Moving Picture Technicians, Artists
and Allied Crafts of the United Stated and Canada and Motion Picture
Editors Guild, Local #700 (“the Basic Agreement”) who perform post-
production sound services for us.
In about October 1989, the Respondent signed an Agreement of Consent with
the Union wherein it recognized the Union as the exclusive collective-bargaining
representative of the Unit, agreed to be part of a single multi-employer unit (the Alliance
of Motion Pictures and Television Producers), and agreed to be bound by the Basic
Agreement, the most recent of which is described above. Since October 1989 and at all
material times, the Respondent has remained bound by the Agreement of Consent and
has recognized the Union as the exclusive collective-bargaining representative of the
Unit.
At all material times, based on Section 9(a) of the Act, the Union has been the
exclusive collective-bargaining representative of the Unit.
ORDER
Based on the above findings of fact, the Formal Settlement Stipulation, and the
entire record, and pursuant to Section 10(c) of the National Labor Relations Act, the
National Labor Relations Board orders that the Respondent, LGH Digital Media, Inc.
d/b/a Larson Studios, LLC, its officers, agents, successors, and assigns shall
1. If it reopens, cease and desist from
(a) Failing or refusing to bargain collectively with Motion Picture Editors Guild,
IATSE Local 700 (the “Union”) as the exclusive collective bargaining
representative of all the employees in the unit.
(b) Failing to timely notify the Union and afford it an opportunity to bargain over
the effects of its decision to close.
(c) Failing and refusing to bargain collectively with the Union by failing to make
contributions to Unit employees’ individual 401(k) accounts.
(d) Failing and refusing to bargain collectively with the Union by failing to adhere
to the terms of the Basic Agreement regarding severance pay.
(e) In any like or related manner interfering with, restraining, or coercing its
employees in the exercise of their right to self-organization, to form labor
organizations, to join or assist the Union or any other labor organization, to
bargain collectively through representatives of their own choosing, and to engage
in other concerted activities for the purpose of collective bargaining or other
mutual aid or protection, or to refrain from any and all such activities.
2. Take the following affirmative actions necessary to effectuate the policies of
the Act.
(a) Upon request and subject to the provisions of the Bankruptcy code, bargain
in good faith with the Union as the exclusive collective-bargaining representative
of Unit employees over the effects of the decision to close and reduce to writing
and sign any agreement reached as a result of such bargaining.
(b) In the event that LGH Digital Media, Inc. d/b/a Larson Studios, LLC or an
alter ego reopens, before implementing any changes in wages, hours, or other
terms and conditions of employment of unit employees, notify and, on request,
bargain with the Union as the exclusive collective-bargaining representative of
Unit employees.
(c) In the event that LGH Digital Media, Inc. d/b/a Larson Studies, LLC or an
alter ego reopens, if requested by the Union, rescind any or all changes to your
terms and conditions of employment that were made without bargaining with the
Union.
(d) Make unit employees whole for any loss of earning and other benefits
resulting from the unilateral changes to terms and conditions of employment in
the manner and amounts specified in the attached documents marked as
Appendix B and C, to the extent that there are assets available for distribution by
the Chapter 7 Bankruptcy Trustee.
(e) Remedy the failure to bargain in good faith about the effects of the closure by
paying former employees in the Unit described above their normal wages at the
time of the closure, with interest, for a period set forth in Transmarine Navigation
Corp., 170 NLRB 389 (1969), as clarified by the Board decision in Melody
Toyota, 325 NLRB 846 (1998), in the manner and amounts specified in the
attached document marked as Appendix D, to the extent that there are assets
available for distribution by the Chapter 7 Bankruptcy Trustee.
(f) Compensate employees for the adverse tax consequences of receiving a
lump-sum backpay award in the amounts set forth in the attached documents
marked Appendix B, C, and D, to the extent that there are assets available
for distribution by the Chapter 7 Bankruptcy Trustee, and file a report with
the Regional Director for Region 31 allocating the backpay award to the
appropriate calendar year.
(g) Refrain from contesting or objecting to the allowance of a proof of claim
filed by Region 31 of the National Labor Relations Board in the Chapter 7
bankruptcy case In re: LGH Digital Media, Inc., dba Larson Studios., Case
No. 19-21075.
(h) Refrain from contesting or objecting to the priority classifications asserted
by a proof of claim filed by Region 31 of the National Labor Relations
Board in the Chapter 7 bankruptcy case In re: LGH Digital Media, Inc., d/b/a
Larson Studios, Case No. 19-21075.
(i) Within 14 days of service by the Region, Respondent shall duplicate and
mail, at its own expense, a copy of the attached notice marked as Appendix
A to all former employees employed by Respondent at any time since
August 2018. Copies of the notice, on forms provided by Region 31 of the
NLRB, shall be mailed by Respondent after being signed by Respondent's
authorized representative. In addition to mailing the notices, Respondent
shall distribute notices electronically, by email, to all former employees
who were employed at any time since August 2018.
(j) 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 the Respondent has taken to comply.
Dated, Washington, D.C., June 4, 2020.
_____________________________________
John F. Ring, Chairman
_____________________________________
Marvin E. Kaplan, Member
_____________________________________
William J. Emanuel, Member
(SEAL) NATIONAL LABOR RELATIONS BOARD
APPENDIX A
NOTICE TO EMPLOYEES
POSTED BY ORDER OF THE
NATIONAL LABOR RELATIONS BOARD
An Agency of the United States Government
PURSUANT TO A STIPULATION PROVIDING
FOR A BOARD ORDER AND A CONSENT JUDGMENT
OF ANY APPROPRIATE UNITED STATES COURT OF APPEALS
FEDERAL LAW GIVES YOU THE RIGHT TO:
Form, join, or assist a union;
Choose a representative to bargain with us on your behalf;
Act together with other employees for your benefit and protection;
Choose not to engage in any of these protected activities.
WE WILL NOT interfere with, restrain, or coerce you in the exercise of the above rights.
In the event that LGH Digital Media, Inc. d/b/a Larson Studios, LLC or an alter ego
reopens, IT WILL NOT fail or refuse to bargain collectively with Motion Picture Editors
Guild, IATSE Local 700 ("the Union") as the exclusive collective-bargaining
representative of our employees in the following appropriate unit ("the Unit"):
Employees working in the classifications listed in the August 1, 2003
agreement between Producer (Independents) and International Alliance of
Theatrical Stage Employes [sic] and Moving Picture Technicians, Artists
and Allied Crafts of the United States and Canada and Motion Picture
Editors Guild, Local #700 ("the Basic Agreement') who perform
postproduction sound services for us.
In the event that LGH Digital Media, Inc. d/b/a Larson Studios, LLC or an alter ego
reopens, IT WILL NOT fail to timely notify the Union and afford it an opportunity to
bargain over the effects of our decision to close.
In the event that LGH Digital Media, Inc. d/b/a Larson Studios, LLC or an alter ego
reopens, IT WILL NOT fail and refuse to bargain collectively with the Union by failing to
make contributions to Unit employees' individual 401(k) accounts.
In the event that LGH Digital Media, Inc. d/b/a Larson Studios, LLC or an alter ego
reopens, IT WILL NOT fail and refuse to bargain collectively with the Union by failing to
adhere to the terms of the Basic Agreement regarding severance pay.
In the event that LGH Digital Media, Inc. d/b/a Larson Studios, LLC or an alter ego
reopens, IT WILL NOT in any like or related manner interfere with, restrain or coerce
you in the exercise of your rights under Section 7 of the Act.
In the event that LGH Digital Media, Inc. d/b/a Larson Studios, LLC or an alter ego
reopens, IT WILL, upon request, bargain in good faith with the Union as the exclusive
collective-bargaining representative of Unit employees over the effects of our decision to
close and IT WILL reduce to writing and sign any agreement reached as a result of such
bargaining.
In the event that LGH Digital Media, Inc. d/b/a Larson Studios, LLC or an alter ego
reopens, IT WILL, before implementing any changes in wages, hours, or other terms
and conditions of employment of unit employees, notify and, on request, bargain with
the Union as the exclusive collective-bargaining representative of Unit employees.
In the event that LGH Digital Media, Inc. d/b/a Larson Studios, LLC or an alter ego
reopens, IT WILL, if requested by the Union, rescind any or all changes to your terms
and conditions of employment that we made without bargaining with the Union.
WE WILL make unit employees whole for any loss of earnings and other benefits
resulting from our unilateral changes to terms and conditions of employment to the
extent that there are assets available for distribution by the Chapter 7 Bankruptcy
Trustee.
WE WILL remedy our failure to bargain in good faith about the effects of our closure by
paying our former employees in the Unit described above their normal wages at the time
of the closure, with interest, for a period set forth in Transmarine Navigation Corp., 170
NLRB 389 (1969), as clarified by the Board decision in Melody Toyota, 325 NLRB 846
(1998) to the extent that there are assets available for distribution by the Chapter 7
Bankruptcy Trustee.
WE WILL compensate employees for the adverse tax consequences, if any, of
receiving a lump sum backpay award, to the extent that there are assets available for
distribution by the Chapter 7 Bankruptcy Trustee, and WE WILL file a report with the
Regional Director for Region 31 allocating the backpay award to the appropriate
calendar year.
WE WILL refrain from contesting or objecting to the allowance of a proof of claim filed
by Region 31 of the National Labor Relations Board in the Chapter 7 bankruptcy case In
re: LGH Digital Media, Inc., d/b/a Larson Studios., Case No. 19-21075.
WE WILL refrain from contesting or objecting to the priority classifications asserted by a
proof of claim filed by Region 31 of the National Labor Relations Board in the Chapter 7
bankruptcy case In re: LGH Digital Media, Inc., d/b/da Larson Studios., Case No. 19-
21075.
The Board’s decision can be found at www.nlrb.gov/case/31-CA-248995 or by using the
QR code below. Alternatively, you can obtain a copy of the decision from the Executive
Secretary, National Labor Relations Board, 1015 Half St., S.E., Washington, D.C.
20570, or by calling (202) 273-1940.

APPENDIX B
Severance – 31 Employees
NAME BACKPAY INTEREST
EXCESS TAX
LIABILITY
TOTAL
Abell, Jason $ 2,412.77 $ 63.45 $ 511.98 $ 2,988.20
Arons, Bob $ 17,765.23 $ 467.22 $ 4,069.63 $ 22,302.08
Beaumont, Shannon $ 15,227.34 $ 400.47 $ 3,453.37 $ 19,081.18
Berry, Justin $ 15,227.34 $ 400.47 $ 3,453.37 $ 19,081.18
Combe, Cameron $ 1,947.60 $ 51.22 $ 413.27 $ 2,412.09
Curran, Sean $ 1,947.60 $ 51.22 $ 413.27 $ 2,412.09
Decoster, Adam $ 27,337.50 $ 718.97 $ 6,394.03 $ 34,450.49
Decoster, Elaine $ 5,842.80 $ 153.66 $ 1,239.82 $ 7,236.28
Dondorf, David $ 28,776.55 $ 756.81 $ 6,743.47 $ 36,276.83
Fassl, Ed $ 15,227.34 $ 400.47 $ 3,453.37 $ 19,081.18
Feil, Nick $ 3,769.42 $ 99.13 $ 799.85 $ 4,668.41
Fossum, Davis $ 7,613.67 $ 200.24 $ 1,615.59 $ 9,429.49
Gladden, Ken $ 20,303.12 $ 533.96 $ 4,685.90 $ 25,522.98
Grady-Reitan, Nate $ 2,412.77 $ 63.45 $ 511.98 $ 2,988.20
Ho (McCullough), Emily $ 17,765.23 $ 467.22 $ 4,069.63 $ 22,302.08
Howard, Dean (Fred) $ 30,219.97 $ 794.77 $ 7,093.97 $ 38,108.71
Joseph, Devin $ 10,151.56 $ 266.98 $ 2,220.83 $ 12,639.38
Kilzer, Tom $ 22,616.50 $ 594.81 $ 5,247.65 $ 28,458.95
Mohr, Alexey $ 22,385.16 $ 588.72 $ 5,191.47 $ 28,165.35
Novak, Ken $ 24,786.00 $ 651.86 $ 5,774.46 $ 31,212.32
Philp, Chris $ 10,800.00 $ 284.04 $ 2,378.29 $ 13,462.33
Santos, James (Jamie) $ 22,113.00 $ 581.56 $ 5,125.38 $ 27,819.95
Schneider, Josh $ 29,830.68 $ 784.54 $ 6,999.44 $ 37,614.65
Server, Mark $ 30,618.00 $ 805.24 $ 7,190.62 $ 38,613.86
Sieh, Josh $ 6,352.02 $ 167.06 $ 1,347.87 $ 7,866.95
Spriggs,Craig $ 15,352.74 $ 403.77 $ 3,483.82 $ 19,240.33
Stacy, Cary $ 5,075.78 $ 133.49 $ 1,077.06 $ 6,286.33
Stacy, Greg $ 10,151.56 $ 266.98 $ 2,220.83 $ 12,639.38
Stacy, Meredith $ 7,613.67 $ 200.24 $ 1,615.59 $ 9,429.49
Unthank, Chris $ 8,198.31 $ 215.61 $ 1,739.64 $ 10,153.57
Williams, Mark $ 14,476.62 $ 380.73 $ 3,271.07 $ 18,128.42
Severance Totals: $454,317.85 $ 11,948.40 $ 103_,806.50 $570,072.74
APPENDIX C
401(k) Contributions Reimbursement – 21 Employees
NAME BACKPAY
BACKPAY
Subject to 5th
Priority
INTEREST
INTEREST
Subject to 5th
Priority
EXCESS TAX
LIABILITY TOTAL
TOTAL
Subject to 5th
Priority1
Arons, Bob $399.05 $0.00 $29.75 $0.00 $23.54 $452.34 $0.00
Beaumont, Shannon $956.83 $956.83 $51.13 $51.13 $208.40 $1,216.37 $1,007.96
Berry, Justin $5,101.85 $2,776.76 $335.38 $156.82 $638.17 $6,075.41 $2,933.58
Decoster, Adam $2,949.45 $1,646.01 $195.24 $95.74 $362.21 $3,506.90 $1,741.75
Decoster, Elaine $1,962.44 $1,211.35 $130.46 $72.75 $224.04 $2,316.94 $1,284.10
Dondorf, David $15,399.68 $9,075.46 $1,004.75 $524.14 $2,145.72 $18,550.15 $9,599.60
Fassl, Ed $10,993.20 $5,908.22 $720.34 $334.93 $1,485.45 $13,198.99 $6,243.15
Fossum, Davis $2,637.63 $1,721.45 $164.89 $94.99 $362.27 $3,164.78 $1,816.4 4
Gladden, Ken $392.30 $0.00 $30.52 $0.00 $23.41 $446.23 $0.00
Ho (McCullough),
Emily
$5,657.40 $2,050.35 $409.08 $133.33 $398.04 $6,464.52 $2,183.68
Howard, Dean
(Fred)
$10,194.13 $5,564.37 $671.02 $319.84 $1,272.31 $12,137.47 $5,884.21
Mohr, Alexey $2,506.52 $1,277.84 $163.70 $71.16 $305.79 $2,976.01 $1,349.00
Novak, Ken $3,693.80 $2,292.89 $236.44 $130.56 $494.36 $4,424.60 $2,423.45
Philp, Chris $10,623.33 $7,131.10 $686.12 $421.76 $1,34 4.98 $12,654.42 $7,552.86
Santos, James
(Jamie)
$8,378.55 $5,030.51 $545.55 $289.82 $1,041.85 $9,965.96 $5,320.33
Schneider, Josh $4,367.04 $2,222.85 $293.69 $130.36 $488.71 $5,149.44 $2,353.21
Server, Mark $890.35 $170.92 $66.89 $11.10 $52.63 $1,009.87 $182.02
Sieh, Josh $6,774.05 $3,167.70 $474.02 $198.98 $619.04 $7,867.11 $3,366.68
Stacy, Greg $1,341.05 $612.74 $85.54 $31.26 $176.11 $1,602.70 $644.00
Unthank, Chris $8,373 .55 $3,511.48 $589.13 $219.68 $798.88 $9,761.56 $3,731.16
Williams, Mark $8,107.66 $4,611.65 $531.97 $265.80 $992.60 $9,632.23 $4,877.45
Totals: $111,699.86 $60,940.48 $7,415.60 $3,554.15 $13,458.53 $132,574.00 $64,494.63
1 The Respondent owes the claimants an undetermined amount of post-petition interest accruing from amounts claimed
in Appendix C. Post-petition interest is payable pursuant to 11 U.S.C. §726(a)(5) if the Respondent is solvent at the
close of the case. The Region reserves the right to amend its Proof of Claim regarding Post-petition interest.
APPENDIX D
Transmarine Remedy – 41 Employees
NAME BACKPAY INTEREST
EXCESS TAX
LIABILITY
TOTAL2
Abell, Jason $ 4,708.34 $ 178.96 $ 1,010.49 $ 5,897.79
Arons, Bob $ 2,660.34 $ 101.12 $ 570.95 $ 3,332.41
Ash, Rick $ 4,708.34 $ 178.96 $ 1,010.49 $5,897.79
Beaumont, Shannon $ 5,467.58 $ 207.82 $ 1,173.43 $ 6,848.84
Berry_, Justin $ 2,519.42 $ 95.76 $ 540.71 $3,155.89
Cannella, Anita $ 4,708.34 $ 178.96 $ 1,010.49 $ 5,897.79
Combe, Cameron $ 4,708.34 $ 178.96 $ 1,010.49 $ 5,897.79
Curran, Sean $ 4,708.34 $ 178.96 $ 1,010.49 $5,897.79
DeCoster, Adam $ 3,932.62 $ 149.48 $ 844.01 $4,926.10
Decoster, Elaine $ 2,156.54 $ 81.97 $ 462.83 $2,701.34
Dondorf, David $ 6,540.72 $ 248.61 $ 1,403.75 $8,193.08
Dyer, Wallace (Wilson) $ 4,708.34 $ 178.96 $ 1,010.49 $5,897.79
Fassl_, Ed $ 6,262.62 $ 238.04 $ 1,344.06 $7,844.72
Feil, Nick $ 4,708.34 $ 178.96 $ 1,010.49 $ 5,897.79
Fisher, Kevin $ 4,708.34 $ 178.96 $ 1,010.49 $5,897.79
Fossum, Davis $ 3,140.02 $ 119.35 $ 673.90 $3,933.27
Geary, Ginger $ 4,708.34 $ 178.96 $ 1,010.49 $ 5,897.79
Gerbrandt, Alex $ 4,708.34 $ 178.96 $ 1,010.49 $5,897.79
Gladden, Ken $ 2,905.90 $ 110.45 $ 623.65 $3,640.01
Grady-Reitan, Nate $ 4,708.34 $ 178.96 $ 1,010.49 $5,897.79
Ho (McCullough), Emily $ 5,388.02 $ 204.80 $ 1,156.36 $6,749.18
Hodges, Hilda $ 4,708.34 $ 178.96 $ 1,010.49 $5,897.79
Howard, Dean (Fred) $ 6,371.34 $ 242.17 $ 1,367.40 $ 7,980.91
Joseph, Devin $ 4,708.34 $ 178.96 $ 1,010.49 $5,897.79
Kilzer, Tom $ 4,708.34 $ 178.96 $ 1,010.49 $5,897.79
Lambert-Gibson, Kimberly $ 4,708.34 $ 178.96 $ 1,010.49 $5,897.79
Mohr, Alexey $ 5,967.96 $ 226.84 $ 1,280.82 $7,475.62
Novak_, Ken $ 1970.00 $ 74.88 $ 422.79 $2,467.67
Owens, Rick $ 4,708.34 $ 178.96 $ 1,010.49 $5,897.79
Philp, Chris $ 6,438.40 $ 244.72 $ 1,381.79 $8,064.91
Santos, James (Jamie) $ 7,254.16 $ 275.73 $ 1,556.86 $9,086.75
Schneider, Josh $ 5,293.42 $ 201.20 $ 1,136.06 $6,630.68
Server, Mark $ 5,935.58 $ 225.61 $ 1,273.87 $7,435.06
2 The Respondent owes the claimants an undetermined amount of post-petition interest accruing from amounts claimed
in Appendix C. Post-petition interest is payable pursuant to 11 U.S.C. §726(a)(5) if the Respondent is solvent at the
close of the case. The Region reserves the right to amend its Proof of Claim regarding Post-petition interest.
APPENDIX D (con't.)
NAME BACKPAY INTEREST
EXCESS TAX
LIABILITY
TOTAL
Sieh, Josh $ 5,890.46 $ 223.90 $ 1,264.19 $ 7,378.55
Singer, Randy $ 4,708.34 $ 178.96 $ 1,010.49 $ 5,897.79
Spriggs, Craig $ 4,708.34 $ 178.96 $ 1,010.49 $ 5,897.79
Stacy, Cary $ 4,708.34 $ 178.96 $ 1,010.49 $ 5,897.79
Stacy, Greg $ 3,944.24 $ 149.92 $ 846.50 $ 4,940.66
Stacy, Meredith $ 4,708.34 $ 178.96 $ 1,010.49 $ 5,897.79
Unthank, Chris $ 5,348.72 $ 203.30 $ 1,147.92 $ 6,699.95
Williams, Mark $ 3,487.16 $ 132.55 $ 748.40 $ 4,368.11
Transmarine Totals: $ 193,042.02 $ 7,337.48 $ 41,430.03 $ 241,809.54