Earl R. Foster v. Dravo Corporation

490 F.2d 55, 85 L.R.R.M. (BNA) 2100, 1973 U.S. App. LEXIS 6296
CourtCourt of Appeals for the Third Circuit
DecidedDecember 26, 1973
Docket73-1083
StatusPublished
Cited by14 cases

This text of 490 F.2d 55 (Earl R. Foster v. Dravo Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Earl R. Foster v. Dravo Corporation, 490 F.2d 55, 85 L.R.R.M. (BNA) 2100, 1973 U.S. App. LEXIS 6296 (3d Cir. 1973).

Opinions

OPINION OF THE COURT

ADAMS, Circuit Judge.

The issue in this case is whether under the Selective Service Act of 1967 an employee is entitled to full vacation benefits for the years he entered and returned from military service, under the terms of a collective bargaining agreement that conditioned the award of such benefits on the receipt of earnings during 25 weeks of the previous year.

Earl R. Foster, an employee of the Dravo Corporation since August 5, 1965, received a military leave of absence beginning on March 6, 1967. Shortly after completing his military obligation, he returned to the employ of Dravo on October 7, 1968. Foster thus worked for Dravo a total of nine weeks in 1967 and thirteen weeks in 1968.

The collective bargaining agreement between Dravo and Foster’s bargaining representative, Industrial Union of Marine and Ship Building Workers of America, Local 61, requires that an employee, in order to qualify for full vacation benefits, “must have received earnings in at least twenty-five (25) work weeks in the twelve (12) months preceding the current December 31st.” 1

The language and the overall scheme and purpose of the reemployment provisions of the' Selective Service Act of 1967, 50 U.S.C. App. § 459, are determinative of the present dispute about a reemployed veteran’s claim to civilian [57]*57vacation pay on account of time spent in military service.

Section 459(b) requires that a returning veteran “be restored to the position vacated for military service” or, as an acceptable alternative, “to a position of like seniority, status, and pay.” Because the parties have stipulated that appellee was restored “to the position [he had] vacated,” the mandate of § 459(b) has been satisfied and there is no need in this case to consider the allowable alternative of restoration “to a position of like seniority, status, and pay.”

Rather, the controversy here arises out of the interpretation and application of § 459(c), which reads as follows:

(c)(1) Any person who is restored to a position in accordance with the provisions of paragraph * * *
(B) of subsection (b) shall be considered as having been on furlough or leave of absence during his period of training and service in the armed forces, shall be so restored without loss of seniority, shall be entitled to participate in insurance or other benefits offered by employer pursuant to established rules and practices relating to employees on furlough or leave of absence in effect with the employer at the time such person was inducted into such forces, and shall not be discharged from such position without cause within one year after such restoration.
(2) It is declared to be the sense of the Congress that any person who is restored to a position in accordance with the provisions of paragraph * * * (B) of subsection (b) should be so restored in such manner as to give him such status in his employment as he would have enjoyed if he had continued in such employment continuously from the time of his entering the armed forces until the time of his restoration to such employment. (Emphasis added)

Subsections (c)(1) and (2) require that job seniority shall not be adversely affected by military leave, and that, for the purpose of various “other benefits” enjoyed by employees under the employer’s rules and practices, the reemployed veteran shall be treated as “having been on furlough or leave of absence” during his military service.

I.

Much in this case turns on whether a particular incident of the employment relationship is regarded as falling under the “seniority” or the “other benefits” language of subsection (e)(1).

There is general agreement as to the differing import of the “seniority” and “other benefits” language of subsection (c)(1). If it is length of service that determines the amount or kind of emolument a returning veteran is to receive, it must be considered a perquisite of “seniority” and the veteran's time spent in the military is included when computing his length of service.2 If, on the other hand, the particular incident of employment does not accrue simply because of length of service, it must be considered a “benefit” other than one based on seniority, and the returning veteran is entitled to the advantages claimed only if he has met the other conditions.3

[58]*58It is in determining whether a benefit is conditioned simply on length of service or something more that difficulty is encountered. In deciding whether the “seniority” or “other benefits” language of subsection (c)(1) governs, we are guided by the Supreme Court’s instructions in Accardi v. Pennsylvania Railroad Co.4 to refrain from unreflective acceptance of the “labels” used by the employer and the union in describing the types of benefits contained in the collective bargaining agreement.5

II.

Accardi has spawned a group of lower court opinions that, Foster contends, counsel reliance on strictly literal interpretations of the words of the collective bargaining agreement in determining whether a particular benefit, such as vacations, is to be considered a perquisite of “seniority” or to be placed in the category of “other benefits.” In Accardi itself, which dealt with the issue whether time spent in the military should be included in computing an employee’s severance pay, the Supreme Court did point out that under the contract there “bizarre results” were possible: “an employee [could] . . . receive credit for a whole year of ‘compensated service’ by working a mere seven days.”6 The Court in making this illustrative statement, however, was not suggesting that so long as any conceivable, although possibly unrealistic, reading of an agreement requires only a minimal work requirement in order to be entitled to a particular benefit, such benefit must be regarded as a prerogative of seniority.7 The language in Accardi following the reference to the “bizarre result,” indicates that the Court, instead, reached its conclusion much in the same way an arbitrator does, by considering not only the words of the agreement but also the meaning with which those words are imbued by the general and specific industrial relations milieu:

The use of the label “compensated service”' cannot obscure the fact that the real nature of those payments was compensation for loss of jobs. And the cost to an employee of losing his job is not measured by how much more work he did in the past — no matter how calculated — but by the rights and benefits he forfeits by giving up his job. Among employees who worked at the same jobs in the same craft and class the number and value of the rights and benefits increased in proportion to the amount of seniority, and it is only natural that those with seniority should receive the highest allowance since they were giving up more rights and benefits than those with less seniority.8 (Emphasis added)

Undoubtedly the fact that the contract in Accardi had an express provision defining “compensated service” contributed, in some manner, to the result the Court reached.

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Earl R. Foster v. Dravo Corporation
490 F.2d 55 (Third Circuit, 1973)

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Bluebook (online)
490 F.2d 55, 85 L.R.R.M. (BNA) 2100, 1973 U.S. App. LEXIS 6296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/earl-r-foster-v-dravo-corporation-ca3-1973.