Empire Iron Mining Partnership v. Orhanen

565 N.W.2d 844, 455 Mich. 410
CourtMichigan Supreme Court
DecidedJuly 29, 1997
DocketDocket Nos. 103269-103271, 103301-103313, Calendar Nos. 4-5
StatusPublished
Cited by61 cases

This text of 565 N.W.2d 844 (Empire Iron Mining Partnership v. Orhanen) is published on Counsel Stack Legal Research, covering Michigan Supreme Court 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. Orhanen, 565 N.W.2d 844, 455 Mich. 410 (Mich. 1997).

Opinions

[413]*413Kelly, J.

This appeal is a consolidation of two cases. The Court is asked to determine what statutory requirements a striking worker must satisfy in order to requalify1 for unemployment benefits under the Michigan Employment Security Act. MCL 421.29(8)(b); MSA 17.531(8)(b). In both these cases, the Michigan Employment Security Board of Review found that the sixteen striking employees requalified for unemployment compensation benefits. They had obtained interim jobs for a combined period of two weeks or more at statutorily prescribed wage-rates.

The employers in Orhanen appeal from a decision of the Court of Appeals that affirmed the Board of Review’s grant of benefits to three employees.2 Each employee had requalified by securing interim employment through a union hiring hall, which included jobs from more than one employer. The struck employers argue that it was error to hold that striking employees can earn requalification wages from multiple employers, as it encourages make-work and bad-faith interim employment.

In Asmund, employees appeal from a Court of Appeals decision that the award of unemployment compensation benefits to them was improper.3 They assert that the appellate court erred as a matter of law by requiring “good faith” employment as a necessary element for requalification. The thirteen Asmund employees each worked for only one interim [414]*414employer. However, the Court of Appeals found that they did not act in good faith in obtaining the interim employment.

We affirm the Court of Appeals decision in Orhanen and reverse the decision in Asmund.

i

INTRODUCTION

Eligibility of employees to receive unemployment compensation benefits and the bases of disqualification for those benefits are established by the mesa. MCL 421.28; MSA 17.530 and MCL 421.29(8)(b); MSA 17.531(8)(b).4 The issues presented on appeal involve the labor dispute disqualification provision, which states:

An individual’s disqualification imposed or imposable under this subsection is terminated if the individual performs services in employment with an employer in at least 2 consecutive weeks falling wholly within the period of the individual’s total or partial unemployment due to the labor dispute, and in addition earns wages in each of those weeks in an amount equal to or greater than the individual’s actual or potential weekly benefit rate with respect to those weeks based on the individual’s employment with the employer involved in the labor dispute. [MCL 421.29(8)(b); MSA 17.531(8)0) (emphasis added).]

In Orhanen and Asmund, the Court is asked to consider whether, in amending the disqualification provision of § 29(8)(b), the Legislature intended [415]*415(1) that a requirement of “good faith” be added to the listed objective criteria, and (2) whether it intended that the phrase “services in employment with an employer” be construed as requiring employment with a single employer.

We resolve the issues in favor of the employees. We find that the Board of Review’s interpretations of § 29(8) (b) are in accord with the underlying purpose of the act itself.

n

THE “GOOD FAITH” CRITERION ISSUE AND THE “SINGLE EMPLOYER” ISSUE

Whether interim employment ends disqualification for unemployment benefits is dependent on the wording of the statute. Thomas v Employment Security Comm, 356 Mich 665; 97 NW2d 784 (1959). Because of conflicting Court of Appeals decisions, we are alerted to the fact that the statutory language of § 29(8)(b) may be subject to differing interpretations. We note that the plain wording of the statute does not express a “good faith” requirement. We note also that the phrase “an employer” may be interpreted in the plural as well as in the singular. Therefore, we consider whether “good faith” employment with a single employer was nonetheless intended by the Legislature.

We begin our analysis by examining the rationale underlying the MESA. Doing so sharpens our understanding of the circumstances surrounding its enactment. We review the prelegislative history and the motivations that induced enactment. Horack, The dis[416]*416integration of statutory construction, 24 Ind L J 335, 338 (1949).

Next, we look to this Court’s decisions that touch on the history and the circumstances surrounding § 29(8)(b). Dow Chemical Co v Curtis, 431 Mich 471, 480; 430 NW2d 645 (1988); Great Lakes Steel Corp v Employment Security Comm, 381 Mich 249, 254; 161 NW2d 14 (1968). Throughout our analysis, we bear in mind the underlying purpose of the act. Dep’t of Social Services v Brewer, 180 Mich App 82, 84; 446 NW2d 593 (1989).

Once we have ascertained the Legislature’s intent, we follow the primary rule of statutory construction for cases interpreting the MESA: a “liberal” construction to afford coverage and a “strict” construction to effect disqualification. See Linski v Employment Security Comm, 358 Mich 239; 99 NW2d 582 (1959). In order to comply with the public policy of the act, we recognize that this primary rule must prevail, despite any other conflicting rule. People v Russo, 439 Mich 584, 595; 487 NW2d 698 (1992). Other rules of construction serve only as guides to assist us in determining the intent with a greater degree of certainty. Nolan v Dep’t of Licensing & Regulation, 151 Mich App 641, 648; 391 NW2d 424 (1986). We recognize that, as a general rule, deference is given to an administrative agency’s decisions, provided that the agency’s construction is consistent with the purpose and policies of the statute itself.5

[417]*417a

The mesa was enacted primarily for the benefit of persons involuntarily unemployed. Its purpose is to lighten the burden of economic insecurity on those who become unemployed through no fault of their own. Kalamazoo Tank & Silo Co v Unemployment Compensation Comm, 324 Mich 101, 107; 36 NW2d 226 (1949). The act specifies:

Economic insecurity due to unemployment is a serious menace to the health, morals, and welfare of the people of this state. Involuntary unemployment is a subject of general interest and concern which requires action by the legislature to prevent its spread and to lighten its burden which so often falls with crushing force upon the unemployed worker and his family, to the detriment of the welfare of the people of this state. Social security requires protection against this hazard of our economic life. Employers should be encouraged to provide stable employment. [MCL 421.2; MSA 17.502.]

As the MESA is a remedial statute, it should be liberally construed to achieve its intended goal. Dudewicz v Norris Schmid, Inc, 443 Mich 68, 77; 503 NW2d 645 (1993). The precise language of the act springs from its underlying policy. The wording expresses our legislators’ ideas, which, taken as a whole, become the basis for legislative intent.

As Justice McAllister stated in his dissent in Chrysler Corp v Smith, 297 Mich 438, 475; 298 NW 87 (1941):

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Bluebook (online)
565 N.W.2d 844, 455 Mich. 410, Counsel Stack Legal Research, https://law.counselstack.com/opinion/empire-iron-mining-partnership-v-orhanen-mich-1997.