Chrysler Corp. v. California Unemployment Insurance Appeals Board

199 Cal. App. 2d 683, 18 Cal. Rptr. 843, 1962 Cal. App. LEXIS 2884
CourtCalifornia Court of Appeal
DecidedJanuary 31, 1962
DocketCiv. 25440
StatusPublished
Cited by6 cases

This text of 199 Cal. App. 2d 683 (Chrysler Corp. v. California Unemployment Insurance Appeals Board) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chrysler Corp. v. California Unemployment Insurance Appeals Board, 199 Cal. App. 2d 683, 18 Cal. Rptr. 843, 1962 Cal. App. LEXIS 2884 (Cal. Ct. App. 1962).

Opinions

LILLIE, J.

This proceeding in mandamus to compel removal of charges against an employer’s unemployment reserve fund is before us on appeal by the California Unemployment Insurance Appeals Board from a judgment of the superior court declaring claimants to be ineligible for unemployment compensation benefits. The judgment set aside a decision of the board upholding their eligibility, and ordered any charges against respondent’s account as the result of payment of [685]*685unemployment benefits to be removed. We conclude on the record before us that by reason of the construction and application of section 1262, Unemployment Insurance Code, by the Supreme and appellate courts of this state, claimants are entitled to benefits, and the judgment should be reversed.

The superior court reviewed the administrative record and made and filed its independent findings and conclusions of law (Chrysler Corp. v. California Emp. Stab. Com., 116 Cal.App.2d 8 [253 P.2d 68]); they are at complete variance with the administrative findings and determination, but the basic material facts are undisputed and the question is primarily one at law. The claimants, 81 in all, are employed as office and clerical workers and engineers in the Los Angeles plant of respondent, Chrysler Corporation. Union workers at this plant are divided into three separate and distinct bargaining units—the 1. office and clerical workers, 2. engineers and 3. production and maintenance workers, all of which comprise Local 230. The International Union, United Automobile, Aircraft and Agricultural Implement Workers of America (hereinafter referred to as UAW), an affiliate of the Congress of Industrial Organizations (CIO), organized Local 230 as an “amalgamated local” consisting of the three separate bargaining units above named; the bulk of its membership consists of production and maintenance workers since there are relatively few office and clerical workers and engineers. In other areas of the country where there are enough to warrant it, the office and clerical workers have their own local, as do the engineers. Each unit of Local 230 had entered into a separate bargaining agreement with Chrysler; thus, during the period in question, three separate agreements covering labor relations of its 1. engineers, 2. office and clerical workers, and, 3. production and maintenance workers, existed with Chrysler.

The “engineers’ ” contract and the “office and clerical workers’ ” contract each contained a specific provision (§5), in effect, prohibiting them from striking against Chrysler; thus, under their contracts neither the engineers nor office and clerical workers had any right to strike. The “production and maintenance workers’ ” contract, however, made an exception (§31(2)) permitting them to strike in connection with rates of production (§§46-48); thus, thereunder, the production and maintenance workers had the right to strike over this limited matter. The contracts of the office and eler[686]*686ical workers and engineers contained no provision relative to rates of production.

A dispute arose between Chrysler and the production and maintenance workers over the “Bates of Production” provisions of their contract. In March 1957, on recommendation of the executive board of Local 230 consisting primarily of officers of the union, a strike vote was taken by the production and maintenance workers; none of the office and clerical workers or engineers were entitled to vote in this connection and none did so, although as a group they did voice their disapproval of the strike and voted not to participate therein. They had no economic or other grievance with Chrysler. On March 15, pursuant to approval of the International Union, union officials called a strike of the production and maintenance workers; they immediately left their jobs. The strike ended April 21, 1957, after a settlement, the terms of which related to matters affecting only the production and maintenance workers. The office and clerical workers and engineers did not strike at any time, nor did they in any way participate in the strike or picket line; on the contrary, on March 15, when the strike commenced, they crossed the union picket line, remained at their jobs and continued to perform all work available to them. However, the strike forced Chrysler to shut down its production line, soon after ending the flow of work for its office and clerical workers and engineers. They continued to work until around March 22, when thereafter, to April 15, at various times they were laid off by Chrysler because it had no work for them. During the course of the strike, the production and maintenance workers received strike benefits from the union’s general strike fund; the office and clerical workers and engineers received nothing from the strike fund but applied for and received unemployment compensation benefits, the subject of the within litigation.

The basic question is whether Chrysler’s unemployment reserve account should be charged as the result of benefits paid to the office and clerical workers and engineers—the issue turns on whether they are eligible therefor under section 1262, Unemployment Insurance Code. Appellant contends that they did not voluntarily leave their work because of a trade dispute; respondent argues that they left voluntarily in that their unemployment was caused by a trade dispute initiated by their own union.

Section 1262 provides that “An individual is not eligible [687]*687for unemployment compensation benefits, and no such benefit shall be payable to him, if he left his work because of a trade dispute ...” This section has been consistently interpreted in accord with “the obvious legislative intent that persons who are involuntarily and innocently out of work as the result of a labor dispute should not suffer by loss of unemployment benefits. Accordingly the right to benefits under section 56 of the statute was said to depend upon whether the worker left his job of his own free will or was forced to do so because of the acts of others.” (McKinley v. California Emp. Stab. Com., 34 Cal.2d 239, 242 [209 P.2d 602] ; Bodinson Mfg. Co. v. California Emp. Com., 17 Cal.2d 321 [109 P.2d 935] ; Bunny’s Waffle Shop, Inc. v. California Emp. Com., 24 Cal.2d 735 [151 P.2d 234] ; Gardner v. State, 53 Cal.2d 23 [346 P.2d 193]; Chrysler Corp. v. California Emp. Stab. Com., 116 Cal. App.2d 8 [253 P.2d 68].) The “volitional test” was first established by the Supreme Court in Bodinson Mfg. Co. v. California Emp. Com., 17 Cal.2d 321 [109 P.2d 935

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Chrysler Corp. v. California Unemployment Insurance Appeals Board
199 Cal. App. 2d 683 (California Court of Appeal, 1962)

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Bluebook (online)
199 Cal. App. 2d 683, 18 Cal. Rptr. 843, 1962 Cal. App. LEXIS 2884, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chrysler-corp-v-california-unemployment-insurance-appeals-board-calctapp-1962.