Department of Industrial Relations v. Headon

155 So. 2d 123, 42 Ala. App. 132
CourtAlabama Court of Appeals
DecidedApril 2, 1963
Docket1 Div. 880
StatusPublished
Cited by8 cases

This text of 155 So. 2d 123 (Department of Industrial Relations v. Headon) is published on Counsel Stack Legal Research, covering Alabama Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Department of Industrial Relations v. Headon, 155 So. 2d 123, 42 Ala. App. 132 (Ala. Ct. App. 1963).

Opinions

JOHNSON, Judge.

This appeal is from a judgment of the Circuit Court of Mobile County awarding unemployment compensation to appellee, plaintiff below. In the administrative processes, prescribed by Code 1940, Title 26, § 215 et seq., pursued before the Department of Industrial Relations, the claim was denied. On appeal to the Circuit Court the trial was de novo, without a jury, and was submitted upon a transcript of the evidence [133]*133taken before the Board of Appeals of the Department of Industrial Relations and the decision of the Board, together with certain documents and newspaper articles and stipulations of the parties. From the judgment of the Circuit Court, the Department of Industrial Relations and plaintiff’s employer, Alabama Dry Dock and Shipbuilding Company, have appealed. It is stipulated that plaintiff (appellee) is entitled to unemployment compensation unless disqualified under Sec. 214, Title 26, of the Code. The sole question presented to this court is whether appellee’s unemployment was due to a labor dispute within that section.

The evidence is in pertinent substance as follows:

The employer, hereinafter called the Company, owns and operates a shipyard for shipbuilding and ship repairing, in or near Mobile. Appellee was on and prior to March 1, 1959, an employee of the Company as a pump man, and a member of Local 18 of the Industrial Union of Marine and Shipbuilding Workers of America, hereafter called the Union. For some years there had been in force bargaining agreements between the Company and the Union as bargaining agent for emploj^ees (with exception not here material) of the Company. Such a bargaining agreement had been entered into between the Company and the Union effective from March 2, 1957, to and including March 1, 1959. Among other things, this agreement provided that either party could, at any time between December 22, 1958, and January 1, 1959, give notice to the other party of its desire to negotiate for a uniform change in wage rates, effective March 2, 1959. If such notice was given, the parties would within thirty days after January 1, 1959, meet to negotiate for such change.

If the parties could not agree with respect to such matter by midnight of March 1, 1959, it was provided that either party could, notwithstanding a provision of the agreement against strike or lockout, resort to a strike or lockout in support of its position with respect to such rate change. Further, it was provided that if an agreement was reached it would be incorporated in the current agreement and the agreement as modified should remain in force until March 1, 1960.

Timely notice was given by the Union to the Company of its decision to negotiate for a change in wage rates to be effective March 2, 1959, whereupon the parties set up negotiating committees. Though there had been a preliminary meeting, the parties did not get down to negotiation until the last two weeks before March 1, 1959, and up until that date the respective committees were still in dispute. There was no limitation on the time for negotiations, except that after March 1, 1959, the Union was released from its no-strike pledge.

On February 28, 1959, the Union held a membership meeting at which an especially large number was present. The members present unanimously voted to empower the Union’s negotiating committee to call a strike whenever it thought it had reached a point where it could make no more progress.

Extracts from newspapers (introduced for the limited purpose) informed the public that the negotiations had failed to bring forth an agreement, that a strike vote had been taken, and that numbers of the Company’s employees had been “furloughed”. Actually no strike was ever put into effect, though a final agreement between Company and Union was not reached until March. 6, 1959. Evidence was offered to show that when employees threaten to go on strike during labor negotiations, “the customary philosophy or knowledge in the trade” is that all vessels on which work is being performed in the plant or yard are considered “hot ships”; that is, if a vessel leaves the yard after a strike has been called and picket lines have been put up, it is considered a struck ship and no other union will work on that vessel. It further appears that beginning on the night of March 1, 1959, after the strike votes had been taken but before the strike had been put into effect, some half a dozen vessels in the Company’s yard un[134]*134dergoing or awaiting repairs withdrew from the yard; and that a like number of vessels tentatively scheduled for dry docking in the yard did not come into the yard during the week of March 1 to 7, 1959. During Monday, March 2, 1959, the Company reevaluated the work left in the yard, determined what the remaining work was and what forces would be needed to perform the work, taking into account that in laying off or assigning work to employees the Company'would be obliged to observe the rule of seniority. The appellee Headon had worked on the second shift February 28-March 1. He had no notice not to return to work and normally would have gone to work on the second shift on March 2. When he reported for work on that day, there was no card in the rack for him. Apparently all cards for employees in his category had been pulled. Headon was told that he would be notified when to return to work. The labor dispute was settled Friday, March 6. The ships which had been withdrawn from the plant began to return and Headon was notified March 7 to report back to work March 9, which he did. Those ships which were not in the yard but scheduled to arrive for service during the week in question did not thereafter come into the Company’s plant but did go to competitive plants, with consequent loss in amounts stipulated to the Company.

It was stipulated that had the vessels which withdrew remained and had those scheduled 'for repairs not diverted their course or delayed entry into the plant, there would have been sufficient work for appellee and the other claimants involved. There is no disagreement between the parties to this appeal as to the facts and circumstances leading up to and resulting in Headon’s unemployment. The controverted question is whether or not appellee’s unemployment was directly due to a labor dispute within the terms of Code 1940, Title 26, Sec. 214, subd. A.

Appellee’s contention is summarized in the following proposition set forth in his brief:

Where a wage reopening occurred which rendered inoperative a no-strike clause in the current labor contract but no strike was called and negotiations were proceeding peacefully, the removal by customers of their ships from the shipyard because of fears that negotiations might break off, which removals caused disruption of the work schedules and temporary layoffs, did not make the ensuing unemployment “directly due to a labor dispute” so as to disqualify workers for unemployment benefits under Title 26, Section 214, subd. A, Code of 1940.

Many cases from this and other states are cited as supportive of this proposition. Much of the argument is devoted to the historic background of Section 214, subd. A of the Code, supra, as traced through successive legislative enactments and our prior decisions. We will not here enter upon a critical analysis of these cases, repeating the reasoning and pronouncements therein given. To do so would be merely a work of supererogation. Reduced to its essence, appellee’s contention is that, in the light of the evidence summarized above, appellee’s “temporary layoff was due to the fears of others, namely, the shipowners, and not the fear of the Company.

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155 So. 2d 123, 42 Ala. App. 132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-industrial-relations-v-headon-alactapp-1963.