Abel v. ADP/UC Express

2011 Ohio 1649, 951 N.E.2d 803, 193 Ohio App. 3d 247
CourtOhio Court of Appeals
DecidedMarch 23, 2011
Docket10-CO-11
StatusPublished

This text of 2011 Ohio 1649 (Abel v. ADP/UC Express) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abel v. ADP/UC Express, 2011 Ohio 1649, 951 N.E.2d 803, 193 Ohio App. 3d 247 (Ohio Ct. App. 2011).

Opinion

Donofrio, Judge.

{¶ 1} Defendant-appellant, American Standard Brands, Inc., appeals from a Columbiana County Common Pleas Court judgment that awarded plaintiffsappellees, Frank Abel et al., unemployment-compensation benefits. The court’s judgment reversed the prior decisions of the hearing officer and the Unemployment Compensation Review Commission.

{¶2} American Standard (“the company”) manufactures bathroom fixtures, tubs, and sinks at its plant in Salem, Ohio. Appellees in this case are a group of 245 employees of American Standard and members of the United Steelworkers of America, Local 1538 (“the employees”). This case deals with the collective-bargaining agreement (“CBA”) that expired on September 30, 2008, the negotiations for a new CBA, and the work stoppage that occurred from October 17 through November 22, 2008.

{¶ 3} The employees filed for unemployment-compensation benefits alleging that they were unemployed due to a lockout. A hearing was held on November 10, 2008. The hearing officer made the following findings of fact.

{¶ 4} The parties attended negotiation sessions from September 11 through September 30 and also met on October 13 and 17. They agreed to two extensions of the expired CBA through October 15, 2008. On that day, the company implemented its last, best, and final offer based on its assertion that negotiations had reached impasse. The union responded with a 48-hour strike notice and asserted that there was no impasse. The employees worked under the implemented terms on October 16 and 17 and stopped working at 1:00 p.m. on October 17. At the time of the hearing, the work stoppage continued.

*250 {¶ 5} The company had been operating at a loss since 2006. It was formerly a much larger international corporation with over $11 billion in annual sales. But in 2007, the American Standard Plumbing International portion of the corporation was sold to Bain Capital, a private equity firm. Less than a month later, another private equity firm, Sun Capital, purchased a controlling interest of the American Standard Plumbing Americas portion from Bain. The American Standard Plumbing Americas portion includes the Salem plant at issue. American Standard Plumbing Americas is not profitable. The unaudited financial information showed an $88.8 million loss in 2007. This information also showed an approximate loss of $5.4 million for the Salem plant through July 2008. Consequently, Sun Capital stated that each location that is part of American Standard Plumbing Americas must stand alone and operate at a profit in order to be a sustainable business.

{¶ 6} In July 2008, the company made a presentation to the union, along with written documentation, about its financial status. A profit-improvement plan was prepared by the company and given to the union. This plan presumed a ten-percent wage-concession package. The last, best, and final offer made by the company included a five-percent wage concession package that reduced the average wage from $17.90/hour to $17.00/hour and the wage-plus-benefits rate from $27.91/hour to $25.50 to $26.00/hour.

{¶ 7} The hearing officer found that the work stoppage was not a lockout, and therefore, the employees were not entitled to collect unemployment benefits. He found that the company was the party that had changed the status quo when it determined to not allow the employees to work under the terms of the expired CBA. He further found, however, that the company had a compelling reason to implement the last, best, and final offer, given the uncontroverted testimony regarding the company’s financial position.

{¶ 8} The employees filed an appeal with the review commission on December 15, 2008. In the meantime, the hearing officer issued an entry taking administrative notice that the employees returned to work the week of November 23, 2008. Therefore, he concluded that the work stoppage ended on November 22, 2008. The review commission disallowed the employees’ appeal by decision dated May 20, 2009.

{¶ 9} The employees filed an appeal in the trial court on June 18, 2009.

(¶ 10} The trial court determined that the hearing officer’s decision was unlawful. It determined that only one test, set out in Bays v. Shenango Co. (1990), 53 Ohio St.3d 132, 559 N.E.2d 740, applied in determining whether the work stoppage constituted a “labor dispute” or a “lockout.” The trial court found that the hearing officer applied the wrong test, set out in Zanesville Rapid Transit, Inc. v. Bailey (1958), 168 Ohio St. 351, 7 O.O.2d 119, 155 N.E.2d 202, *251 when determining which party deviated from the status quo. The trial court determined that because the company refused work under the preexisting CBA, the work stoppage was a lockout and not a labor dispute. Accordingly, it found that the employees were entitled to unemployment benefits for the term of the lockout.

{¶ 11} The company filed a timely notice of appeal from the trial court’s judgment on March 3, 2010. It now raises four assignments of error. The same standard of review applies to all assignments of error.

{¶ 12} A claimant bears the burden of proving his entitlement to unemployment-compensation benefits. Kosky v. Am. Gen. Corp., 7th Dist. No. 03-BE-31, 2004-Ohio-1541, 2004 WL 612827, at ¶ 9. An unsatisfied claimant may appeal the review commission’s decision to the trial court. R.C. 4141.282(A). The trial court shall reverse, vacate, modify, or remand the commission’s decision if it finds that the decision was unlawful, unreasonable, or against the manifest weight of the evidence. R.C. 4141.282(H). If the court does not find that the decision was unlawful, unreasonable, or against the manifest weight of the evidence, then the court shall affirm the decision. Id.

{¶ 13} A party unsatisfied with the trial court’s decision may appeal to the court of appeals. The appellate court, like the trial court, is generally limited to reviewing whether the decision is supported by evidence in the record. Tzangas, Plakas & Mannos v. Ohio Bur. of Emp. Serv. (1995), 73 Ohio St.3d 694, 696, 653 N.E.2d 1207, citing Irvine v. Unemp. Comp. Bd. of Review (1985), 19 Ohio St.3d 15, 18, 19 OBR 12, 482 N.E.2d 587.

{¶ 14} With this standard of review in mind, we turn now to the company’s assignments of error, the first of which states:

{¶ 15} “The trial court erred in finding that Bays is the sole test for determining whether a lockout has occurred for purposes of unemployment compensation.”

{¶ 16} R.C. 4141.29(D)(1)(a) provides:

{¶ 17} “(D) Notwithstanding division (A) of this section, no individual may serve a waiting period or be paid benefits under the following conditions:

{¶ 18} “(1) For any week with respect to which the director finds that:

{¶ 19} “(a) The individual’s unemployment was due to a labor dispute other than a lockout * * *.”

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Bluebook (online)
2011 Ohio 1649, 951 N.E.2d 803, 193 Ohio App. 3d 247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abel-v-adpuc-express-ohioctapp-2011.