Anderson v. BD. OF REV. OF INDUS. COM'N

737 P.2d 211, 56 Utah Adv. Rep. 19, 1987 Utah LEXIS 697
CourtUtah Supreme Court
DecidedApril 24, 1987
Docket20574
StatusPublished
Cited by2 cases

This text of 737 P.2d 211 (Anderson v. BD. OF REV. OF INDUS. COM'N) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. BD. OF REV. OF INDUS. COM'N, 737 P.2d 211, 56 Utah Adv. Rep. 19, 1987 Utah LEXIS 697 (Utah 1987).

Opinion

ZIMMERMAN, Justice:

Plaintiffs (“the employees”) are seventy-five Amalgamated Transit Union (“the union”) members claiming unemployment compensation under the Utah Employment Security Act (“the Act”). Utah Code Ann. §§ 35-4-1 to -26 (1986). They appeal from a decision of the Industrial Commission Board of Review affirming the administrative law judge’s holding that they were not *213 entitled to unemployment benefits for the period during which they were on strike against their employer, Greyhound Lines, Inc. (“Greyhound”). The employees claim that they were improperly denied benefits because the work stoppage was caused by the company’s constructive lockout and not by a strike. Alternatively, the employees contend that Greyhound caused the strike by violating federal labor laws and that they are therefore eligible for unemployment benefits. We affirm the decision of the Board of Review.

In 1980, the union and Greyhound entered into a collective bargaining agreement. The agreement expired at midnight on October 81, 1983. Prior to the expiration of the contract, Greyhound advised the union that it was losing money and would request economic concessions in the new contract, seeking parity in wages and benefits with other carriers. Formal negotiations between Greyhound and the union began on September 14, 1983. On October 5, 1983, the union broke off negotiations in order to take a membership vote on Greyhound’s proposal. The proposal was rejected by the union on October 24th, and the membership authorized the union leadership to take strike action.

Greyhound presented a final offer to the union on October 31st, the day the contract expired. That offer represented an 18 to 25 percent reduction in wages and benefits. The union rejected this offer and proposed instead to operate under the old contract for one additional year. Greyhound rejected the union’s offer and countered by proposing to extend the terms of the 1980 contract as modified by Greyhound’s October 31st offer for a mutually-agreed-upon number of days to permit additional negotiations. Greyhound’s offer also provided that when the parties reached a new agreement, it would be made retroactive to November 1st. The union rejected these terms and reaffirmed its offer to extend the 1980 agreement for a year. Greyhound again rejected the union’s proposed extension.

On October 31st at 7:00 p.m., the union voted to strike. The 1980 agreement was extended for 48 hours to minimize inconvenience to the public, and the strike began on November 3rd. Greyhound notified the employees that work was available for any employee who wished to work during the strike under the terms of Greyhound’s October 31st offer. The employees involved in this action did not attempt to return to work. A final agreement on a new contract containing a substantial reduction in wages and benefits was reached on December 3, 1983.

The employees submitted claims for unemployment insurance for the period of the strike, November 3rd to approximately December 3rd. These claims were denied by the administrative law judge, whose decision was upheld by the Board of Review.

Before the Board, the employees claimed that there was a constructive lockout, not a strike, because Greyhound refused the union’s offer to continue work under the terms of the 1980 contract and unilaterally changed the status quo. This change in the status quo, the employees argued, is equivalent to a lockout and cannot operate to deny them unemployment compensation. They relied upon the Pennsylvania Supreme Court decision in Erie Forge & Steel Corp. v. Unemployment Compensation Board of Review, 400 Pa. 440, 163 A.2d 91 (1960). 1

The Board of Review accepted the applicability of the Erie Forge test, but held that there was no constructive lockout in this case. In reaching this conclusion, the Board first found that the employees had not qualified for the Erie Forge test because “the union did not agree to maintain the status quo for a reasonable time.” Al *214 ternatively, it found that because of deregulation in the common carrier transportation industry, Greyhound would suffer “serious financial hardship” if the status quo had been maintained. Therefore, the Erie Forge test could not be satisfied because Greyhound qualified for the employer’s hardship exception to that rule. See Oriti v. Board of Review, Ohio Bureau of Employment Services, 7 Ohio App.3d 311, 313-14, 455 N.E.2d 720, 723-24 (1983). This appeal followed.

Before this Court, the parties and the Board essentially reargue the correctness of the Board’s application of the Erie Forge rules. However, we conclude that all parties’ reliance on the status quo test and its exceptions, as spelled out in Erie Forge and Oriti, is misplaced.

Explaining our rejection of the premises relied upon by both the employees and the Board requires a rather lengthy examination of a portion of Utah’s unemployment compensation statute. At issue is the application of the Utah Employment Security Act, Utah Code Ann. § 35-4-5 (1986), which states:

An individual is ineligible for benefits or for purposes of establishing a waiting period:
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(d) For any week in which the commission finds that his unemployment is due to a stoppage of work which exists because of a strike involving his grade, class, or group of workers at the factory or establishment at which he is or was last employed.
(1) If the commission finds that a strike has been fomented by a worker of any employer, none of the workers of the grade, class, or group of workers of the individual who is found to be a party to the plan, or agreement to foment a strike, shall be eligible for benefits. However, if the commission finds that the strike is caused by the failure or refusal of any employer to conform to the provisions of any law of the state of Utah or of the United States pertaining to hours, wages, or other conditions of work, the strike shall not render the workers ineligible for benefits.

Under the terms of the Act, the Industrial Commission must make three specific findings to determine eligibility for benefits: (i) whether there was a work stoppage, (ii) if there was a work stoppage, whether it was caused by a strike, and (iii) if it was caused by a strike, whether the strike was caused by the employer’s failure to conform to either state or federal laws on hours, wages, or other working conditions. In illustrating the application of these criteria to the present case, each of the statutory requirements will be separately analyzed.

The first question is whether there was a work stoppage.

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Bluebook (online)
737 P.2d 211, 56 Utah Adv. Rep. 19, 1987 Utah LEXIS 697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-bd-of-rev-of-indus-comn-utah-1987.