Aluminum Co. of America v. Walker

340 S.W.2d 898, 207 Tenn. 417, 11 McCanless 417, 1960 Tenn. LEXIS 474
CourtTennessee Supreme Court
DecidedOctober 7, 1960
StatusPublished
Cited by7 cases

This text of 340 S.W.2d 898 (Aluminum Co. of America v. Walker) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aluminum Co. of America v. Walker, 340 S.W.2d 898, 207 Tenn. 417, 11 McCanless 417, 1960 Tenn. LEXIS 474 (Tenn. 1960).

Opinion

Mr. Justice TomliNSON

delivered the opinion of the Court.

This is a suit by five employees of the Aluminum Company of America for unemployment compensation benefits claimed by virtue of the Employment Security Law carried in the Code commencing at section 50-1301. The claims were disallowed by the Board of Beview because of the refusal of these employees to accept jobs offered them. Several renewals of the offers were declined. The Chancellor reversed on the grounds that the jobs were not suitable within the meaning of the Employment Security Law. The Aluminum Company bases its appeal on the proposition that material evidence supports the conclusion of the Board; hence, that the Chancellor violated the statute, (T.C.A. sec. 50-1325, subd. I) in setting aside that order, with the exception of one item hereinafter acted upon.

[420]*420These men were laid off for lack of work in the job which each was then doing. At the time of the lay-off each was offered the nest best available job in his employer’s plant for which he was qualified. Each of these jobs was classified as “laborer” except one classified as “potroom helper”, which, in reality, is a laborer. Each of the offered jobs paid approximately $80 per week, while the job from which each had been laid off carried a weekly compensation of from $80 to $50 more.

All of these men started some years back with the Company as laborers. Three of them had progressed in their respective departments at the time of the lay-off from that classification to that of first class electrician; one, battery attendant; and the fifth, truck repair man.

The employees of the Company were members of a certain Union. They were all working under a contract entered into in their behalf by this Union as their bargaining agent with the Aluminum Company as employer. A provision of that contract dealing with a recall of employees who had been laid off for lack of work provides as follows:

“ ‘If an employee is unemployed at the time of his recall, he is eligible for recall in his own job classification in any department of the Company on the basis of his seniority.
“ ‘If a laid off employee accepts work in a department, other than his own he is eligible for recall to his own job classification, on the basis of seniority, only in his own department.’ ”

The meaning of that provision is that so long as these electricians remained idle they had a chance of [421]*421being recalled as electricians in any of tbe various departments of tbe Company where sucb a job became open and tbeir employee status was sucb that they were in line for it. And likewise so it was with tbe battery attendant and tbe truck repair man. On tbe other band, under tbe above quoted provision of the contract, which tbe ap-pellees characterize a “peculiar” provision, if any of these five employees bad accepted the job of laborer offered him be would not have been eligible for recall to a job in his old classification in any department of tbe Company except tbe department in which be was working at tbe time be was laid off.

A proper conclusion from the evidence is that this was tbe reason each of these five men refused, and continued to refuse, the job as a laborer. Tbe brief submitted in their behalf seems to concede that to be tbe cause of tbeir respective rejections of these offers. Here is what this brief says as to that:

“Suppose claimants, severally or jointly, bad accepted tbe offered job of laborer. These first-class electricians might still be performing ‘laboring’ work or no work at all. This follows from the peculiar provisions of tbe Union contract agreed to by tbe parties.
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‘ ‘ Claimants — by keeping tbeir seniority intact — were in effect insuring tbeir chances of working and, by like token, reducing, their chances of suffering future layoffs as junior man no longer bolding seniority. * * * ”

T.C.A. sec. 50-1324, subd. C.(l) provides that in determining whether the work offered is suitable for the individual “his length of unemployment and prospects for securing local work in his customary occupation, and [422]*422the distance of the available work from his residence” shall be considered. The evidence in this case permits a finding that there were no prospects at the time these men were laid off of securing local work in the particular occupation in which each was engaged at the time he was laid off, or within a reasonable distance from his residence. Nor did it appear that such jobs would open up in the reasonable future. Therefore, material evidence supports the Board’s finding that the work offered at the time of the lay-off and at the time of the subsequent offers was “suitable” work. It must be kept in mind that “the officers or boards charged with the duty of determining whether or not work is suitable for a claimant are given much latitude in making their determination.” 81 C.J.S. Social Security and Public Welfare sec. 201, p. 297, citing cases.

T.C.A. sec. 50-1324, subd. C. provides that an individual shall be disqualified for benefits “if the commissioner finds that he has failed, without good cause, * * * to accept suitable work when offered him”. An insistence made in behalf of these five appellees is that the “work offered may be suitable, but the refusal may be for good cause ’ ’.

Assume, in so far as it concerns this case, the legal accuracy of this proposition. There remains the question as to whether there is material evidence in the record to support the Board’s finding that these men failed “without good cause” to accept the work offered. Of course, this means “without good cause” as this statutory term is used within the spirit and intent of the Employment Security Law. And, as applied to the evidence in this case

[423]*423“to sustain tbe commission’s application of tbis statutory term, we need not find that its construction is tbe only reasonable one or even that it is tbe result we would have reached bad tbe question arisen in tbe first instance in judicial proceedings. Tbe ‘reviewing court’s function is limited.’ All that is needed to support tbe commission’s interpretation is that it has ‘warrant in tbe record’ and a ‘reasonable basis in law.’ ” Moore v. Commissioner of Employment Security, 197 Tenn. 444, 447, 273 S.W.2d 703, 705.

As heretofore found, tbe evidence permits a finding that each of these five men refused tbe job offered because it would have rendered him ineligible for a recall to a job in bis old classification in any department of tbe Company, except tbe one in which be was working at tbe time of bis lay-off. Now, considering tbe fact that there was no prospect in sight for the restoration of these men to their old job either in their respective departments, or in any other department of tbe Company, or elsewhere, within that locality or within reasonable traveling distance therefrom, a payment of unemployment compensation to these men, notwithstanding their refusal to accept tbe next best available work, would have amounted to a financing of each of these men, within tbe time limitations of tbe statute, until there became available to him his old job or one paying equal wages.

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Bluebook (online)
340 S.W.2d 898, 207 Tenn. 417, 11 McCanless 417, 1960 Tenn. LEXIS 474, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aluminum-co-of-america-v-walker-tenn-1960.