Elmer Candy Corp. v. Administrator of Employ. SEC.

286 So. 2d 423
CourtLouisiana Court of Appeal
DecidedNovember 12, 1973
Docket9526
StatusPublished
Cited by8 cases

This text of 286 So. 2d 423 (Elmer Candy Corp. v. Administrator of Employ. SEC.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elmer Candy Corp. v. Administrator of Employ. SEC., 286 So. 2d 423 (La. Ct. App. 1973).

Opinion

286 So.2d 423 (1973)

ELMER CANDY CORPORATION
v.
ADMINISTRATOR OF EMPLOYMENT SECURITY et al.

No. 9526.

Court of Appeal of Louisiana, First Circuit.

November 12, 1973.
Rehearing Denied January 4, 1974.

Wm. F. Banta, New Orleans, and Iddo Pittman, Jr., Hammond, for appellant.

Marion Weimer, Baton Rouge, for Employment Security.

Before LANDRY, ELLIS and PICKETT, JJ.

PICKETT, Judge.

This is an appeal by Elmer Candy Corporation from an adverse judgment by the trial court in sixteen consolidated judicial review proceedings. These consolidated proceedings initially arose out of claims *424 filed individually by sixteen employees of appellant, Elmer Candy Corporation, for unemployment insurance benefits with the Division of Employment Security, Department of Labor of the State of Louisiana, which disqualified said employees (sometimes hereinafter referred to simply as "claimants") for unemployment compensation benefits because of claimants' participation in a strike or labor dispute at the plant of appellant.

The record discloses that the claimants were members of the Union of Allied and Technical Workers of America, District #50, (Union). The Union and the appellant, while negotiating a new contract, reached an impasse in their negotiations and after an affirmative strike vote by the Union members, a strike was called, and picket lines were established on May 23, 1972 at appellant's plant. The strikers did not report for work after May 23, 1972, but participated in the picket activities through and including August 30, 1972, on which date another negotiating session was held between the Union negotiating committee and representatives of appellant. But no agreement was reached. On that date, Union officials reported to the striking membership that they had been permanently replaced, after which the claimants did not participate in picket duty; and then filed claims for unemployment benefits, which claims were denied as previously stated.

The Claimants timely filed a notice of appeal to the Appeals Referee who, in a hearing conducted on October 12, 1972, upheld the action of the Agency in holding the claimants were not entitled to unemployment compensation benefits because of their participation in a strike or labor dispute.

An appeal was then taken by the Claimants to the Board of Review of the Division of Employment Security, and the Board reversed the decision of the Appeals Referee. In its decision, the Board of Review gave as its findings of fact and opinion as follows:

"EVIDENCE

"The evidence shows that the Referee, during the course of the hearing, allowed Mr. Roland Waguespack, one of the claimants, to testify in his own behalf after all parties had agreed that Bernice Helg and E. Wilda Green, would testify in behalf of all appellants.

The evidence shows that the employees of this company are represented by Local Union #13790, District 50, Allied and Technical Workers of America and Canada. The Union and the company were negotiating a new contract. Proceeding reached an impasse. The Union voted to, and went on strike. Picket lines were established at approximately 3:00 p. m. on May 23, 1972. The claimant did not report for work thereafter. The claimant is a member of the Union and participated in picket activities through and including August 30, 1972. On August 30, 1972, a meeting was held between the Union negotiating "committee and company representatives with a federal mediator in attendance. During this meeting, the Union stated that, if and when the dispute was settled, they wanted all striking workers to be immediately reinstated to employment.

The employer, through their spokesman, Mr. William Banta, Attorney, stated to the Union committee that the company did not intend to reinstate the striking employees because the company had replaced the strikers and did not plan on discharging, or otherwise terminating their replacements. They further stated that the only way they would reinstate the striking employees, would be if any openings occurred, or through employment attrition. Also, during the course of this meeting, the company stated that there were some employees who, in the opinion of the employer, had engaged in misconduct on the picket line and would never be reinstated. The company refused to identify the accused employees to the Union committee. On that date, after the negotiating session ended, the Union Officials, who were on the negotiating *425 committee for the Union, reported to the membership that they had been permanently replaced by the company. After this date, the claimant did not participate in picket duty and then filed a claim for unemployment benefits and registered for other employment. The evidence further shows that after this date, several of the employees, who had been replaced and who sought other employment elsewhere, have gone to work on other jobs."

"OPINION

"R.S. 23:1601(4) provides that a claimant shall "be disqualified for any week with respect to which the Administrator finds that his unemployment is due to a labor dispute which is in active progress at the factory, establishment, or other premises at which he is or was last employed; but such disqualification shall not apply if it is shown to the satisfaction of the Administrator that he is not participating in or interested in the labor dispute which caused his unemployment.

The Board finds that the Referee erred when he allowed Mr. Waguespack to testify in his own behalf, since all parties had agreed that the claimants, Bernice Helg and E. Wilda Green, would testify in behalf of all appellants. Therefore, this Board must decide the case of Roland Waguespack separately and issue its decision on the merits of Mr. Waguespack's testimony.

After carefully reviewing all of the testimony and evidence in this case, it is clear to this Board that the claimant was on strike and did, in fact, assist on the picket line from May 23, 1972 to August 30, 1972, approximately 14 weeks. The Board further finds that this claimant did not seek other employment nor did the claimant apply for unemployment benefits, because said claimant was still considered an employee of the company. However, on August 30, 1972, the claimant was notified, through the Union representative, that the company had replaced the claimant on a permanent basis and had no intention of reinstating the claimant when the strike was settled, unless there was an opening, or through attrition. Therefore, causing the employer-employee relationship to be "severed effective that date.

The Board of Review further finds that because of the employer replacing the employee, and notifying the employee through a legally authorized representative, that she had been permanently replaced and they had no intention of reinstating the claimant, the claimant was no longer an employee of this company and, in fact, was on indefinite layoff status.

The Board of Review further finds that at this time, the claimant's interest in or participation in this labor dispute at the claimant's former place of employment ceased, as work was no longer available to the claimant.

We, therefore, conclude that when the employer replaced the employee he did, in fact, bring about the claimant's unemployment.

Due to the aforementioned reason, the Board of Review must conclude that the claimant is not guilty of participation in the labor dispute as of August 31, 1972.

IT IS ORDERED that the decision of the Appeals Referee be reversed and the disqualification assessed under Section 1601(4) of the Louisiana Employment Security Law, be removed as of August 31, 1972."

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286 So. 2d 423, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elmer-candy-corp-v-administrator-of-employ-sec-lactapp-1973.