Empire Iron Mining Partnership v. Asmund

535 N.W.2d 223, 211 Mich. App. 118
CourtMichigan Court of Appeals
DecidedMay 23, 1995
DocketDocket 166041-166053
StatusPublished
Cited by6 cases

This text of 535 N.W.2d 223 (Empire Iron Mining Partnership v. Asmund) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Empire Iron Mining Partnership v. Asmund, 535 N.W.2d 223, 211 Mich. App. 118 (Mich. Ct. App. 1995).

Opinions

[120]*120MacKenzie, P.J.

These cases involve the payment of unemployment benefits to striking employees of appellant mining operations. The employers appeal as of right from a circuit court opinion and order affirming decisions of the Michigan Employment Security Board of Review that certain striking employees were not disqualified from receiving unemployment benefits because they requalified for benefits under § 29(8) of the Michigan Employment Security Act (mesa), MCL 421.29(8); MSA 17.531(8), by performing "make work.” The Michigan Manufacturers Association has filed an amicus brief aligned with the employers’ position. We reverse.

The employees, who are members of the United Steelworkers Union, went on strike against appellants employers from July 31, 1990, to December 1, 1990. As striking workers, they were disqualified from receiving unemployment benefits under the labor dispute disqualification set forth in § 29(8) of the mesa. That subsection states in pertinent part:

An individual shall be disqualified for benefits for a week in which the individual’s total or partial unemployment is due to a labor dispute in active progress .... [MCL 421.29(8); MSA 17.531(8).]

The same subsection provides for the termination of the labor dispute disqualification under certain conditions. The relevant portion of § 29(8), added when the Legislature enacted 1974 PA 104, states:

An individual’s disqualification imposed or imposable under this subsection shall be terminated by the individual’s performing services in employment with an employer in at least 2 consecutive weeks falling wholly within the period of the [121]*121individual’s total or partial unemployment due to the labor dispute, and in addition by earning wages in each of those weeks in an amount equal to or in excess of the individual’s actual or potential weekly beneñt rate with respect to those weeks based on the individual’s employment with the employer involved in the labor dispute. [MCL 421.29(8); MSA 17.531(8). Emphasis added.]

In each of these cases, the claimant worked for an employer for two consecutive weeks during the strike period and was paid an amount equal to or in excess of his weekly benefit rate with respect to those weeks. In each case, however, the employment was allegedly "make work” created by a friend or relative solely for the purpose of allowing the claimant to requalify for benefits under § 29(8) despite his continued participation in the strike. In almost all cases, the employment lasted only the two weeks necessary for requalification, and the claimant received higher wages than the employer normally paid for similar work so that the claimant could meet the wage requirement of § 29(8). A two-member majority of the Michigan Employment Security Board of Review concluded that under § 29(8), the "make work” jobs requalified the employees for unemployment benefits, chargeable against appellants’ Michigan Employment Security Commission accounts, while the employees continued their strike against appellants. The circuit court affirmed.

The basic issue in these cases is whether, in enacting the requalification provision of § 29(8), the Legislature intended to authorize the payment of unemployment compensation benefits to any striking worker who arranges interim employment meeting the statutory time and wage requirements, or whether it was intended that .unemployment benefits be paid only to those striking work[122]*122ers whose qualifying interim employment is undertaken in good faith. In reaching the conclusion that the claimants who arranged short-term "make work” were requalified for unemployment benefits during the strike period, the board of review majority interpreted § 29(8) as imposing an objective test in which the only appropriate inquiry is whether the necessary wages were paid by an employer for two consecutive weeks. The dissenting board member found that analysis deficient because it failed to consider that the "make work” was sham employment designed to circumvent the labor dispute disqualification, contrary to the purpose and policies of the mesa. We agree with the dissenting board member.

The primary goal of statutory construction is to ascertain and give effect to the intent of the Legislature. Farrington v Total Petroleum, Inc, 442 Mich 201, 212; 501 NW2d 76 (1993). The Legislature is presumed to have intended the meaning it plainly expressed. Frasier v Model Coverall Service, Inc, 182 Mich App 741, 744; 453 NW2d 301 (1990) . However, if a literal construction of a statute would produce absurd and unjust results clearly inconsistent with the purposes and policies of the statute, a court may depart from a literal construction. Rowell v Security Steel Processing Co, 445 Mich 347, 354; 518 NW2d 409 (1994). Courts may look to the legislative history of an act, as well as to the history of the time during which the act was passed, to ascertain the reason for the act and the meaning of its provisions. Great Lakes Steel Div, Nat'l Steel Corp v Dep’t of Labor, 191 Mich App 323, 327; 477 NW2d 124 (1991) . In interpreting the mesa, it must be recognized that the act is intended to benefit only those involuntarily unemployed. Baker v General Motors Corp (After Remand), 420 Mich 463, 478; 363 [123]*123NW2d 602 (1984) (opinion by Ryan, J.). Thus, courts should interpret the mesa in light of its stated purpose of not providing benefits to persons who are "voluntarily” unemployed. Id.

Before the enactment of 1974 PA 104, §29(8) was silent with respect to the circumstances under which a striker who was ineligible to receive benefits under the labor dispute disqualification could requalify by arranging interim employment. In Dow Chemical Co v Curtis, 431 Mich 471; 430 NW2d 645 (1988), the Supreme Court discussed the Legislature’s reasons for adding the requalification provision to § 29(8):

1974 PA 104 was enacted to restore the viability of the § 29(8) labor dispute disqualification in the wake of this Court’s interpretation of that section in the context of a 1959 strike. . . .
[In Great Lakes Steel Corp v Employment Security Comm, 381 Mich 249; 161 NW2d 14 (1968), the] Court interpreted then §29 to mean that interim employment of even a very short duration was sufficient to terminate the labor dispute disqualification. The Court held that the only standard to be applied with regard to such interim employment was that the claimants be "employees” of "interim employing units.” Great Lakes, supra, p 254. . . .
. . . [F]ailure by the Great Lakes Court to interpret § 29 so as to require "bona fide” employment opened the door to artful dodging of the labor dispute disqualification. The mesc itself recognized this deficiency and urged adoption of criteria to measure the nature and extent of services required to terminate the labor dispute disqualification. Thereafter, the Legislature enacted 1974 PA 104 which amended §29(8) to supply objective criteria for evaluating the substantiality of "interim employment.” [431 Mich 480-482.]

Claimants point to the last quoted sentence as [124]

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Related

Empire Iron Mining Partnership v. Orhanen
565 N.W.2d 844 (Michigan Supreme Court, 1997)
Empire Iron Mining Partnership v. Orhanen
535 N.W.2d 228 (Michigan Court of Appeals, 1995)
Empire Iron Mining Partnership v. Asmund
535 N.W.2d 223 (Michigan Court of Appeals, 1995)

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Bluebook (online)
535 N.W.2d 223, 211 Mich. App. 118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/empire-iron-mining-partnership-v-asmund-michctapp-1995.