General Electric Co. v. Unemployment Compensation Board of Review

110 A.2d 258, 177 Pa. Super. 49, 1954 Pa. Super. LEXIS 256
CourtSuperior Court of Pennsylvania
DecidedDecember 27, 1954
DocketAppeals, Nos. 16 and 17
StatusPublished
Cited by20 cases

This text of 110 A.2d 258 (General Electric Co. v. Unemployment Compensation Board of Review) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Electric Co. v. Unemployment Compensation Board of Review, 110 A.2d 258, 177 Pa. Super. 49, 1954 Pa. Super. LEXIS 256 (Pa. Ct. App. 1954).

Opinion

Opinion by

Wright, J.,

These are appeals by the General Electric Company, hereinafter referred to as the Company, from decisions of the Unemployment Compensation Board of Review allowing benefits to employes ineligible for vacation pay during a plant shutdown for vacation purposes. The facts are undisputed. Claimants were employed by the Company either at the Erie Works (Appeals Nos. 26, 27, and 28), or at the Philadelphia Works (Appeals Nos. 29 and 30). The Erie claimants were represented for collective bargaining purposes by the United Electrical, Radio and Machine Workers of America (UE), and the Philadelphia claimants by the International Union of Electrical, Radio and Machine Workers (CIO). A collective bargaining agreement [51]*51was entered into by the Company with each of said Unions, by virtue of which it was provided: “Those Works shutting down annually for vacation purposes shall consider the vacation season to run concurrently with the shutdown period”. Subsequent to the execution of these agreements, the Company fixed dates for the year 1952 during which the Erie Works and the Philadelphia Works would be shut down for vacation purposes. The period for the Erie Works was from August 9 to August 24, and for the Philadelphia Works was from August 4 to August 17. Under the vacation clause in the respective agreements, employes were granted one week of vacation with pay after completion of one year of continuous service, two weeks after five years, and three weeks after fifteen years. We are here concerned only with those in the first two classes.

As stated by the able counsel for the Board, the question involved is: “. . . can those employes who did not receive any vacation pay or were paid for only one week of the shutdown be considered eligible for unemployment compensation benefits during the unremunerated portion of the shutdown?” In our view, the controlling issue is whether the temporary idleness of the claimants was the type of economic insecurity due to involuntary unemployment without fault which was within the contemplation of the legislature in the enactment of the Unemployment Compensation Law.1

The ground upon which the Board predicated the allowance of benefits was that the contracts here under consideration do not fix specific dates for the vacation shutdowns. The Board took the position that the [52]*52agreements leave it to the discretion of the employer whether the plants would close for vacation purposes, and that the shutdowns were not a conclusive obligation upon the employer but were actually for its benefit. Consequently, reasoned the Board, claimants did not agree to the resulting idleness; they were not off duty because of their own fault; they did not voluntarily leave work under Section 402(b) of the Act (43 PS §802); they were “unemployed” within the language of Section 4 (u) (43 PS §753); and, having properly registered, they were available for suitable work under Section 401(d) (43 PS §801).

The situation of an employe on vacation without pay was first considered at length in Mattey Unemployment Compensation Case, 164 Pa. Superior Ct. 36, 63 A. 2d 429. In that case provision for an annual vacation period, from June 27 to July 7, was incorporated in the collective bargaining agreement. In affirming the Board’s decision refusing to allow benefits (speaking through President Judge Rhodes) we said:

“It is true that during the vacation period claimant performed ‘no services’, and with respect to which ‘no remuneration’ was paid or payable to him. To that extent he was ‘unemployed’. See section 4 (u), 43 PS §753 (u). However, the relationship of employer and employe was not terminated, and there was no suspension of that relationship. Under the agreement between the employer and the United Mine Workers of America, of which claimant was a member, his employment was preserved to him. The vacation or the leave of absence which he enjoyed was by virtue of his agreement. The vacation provided by the agreement was a period of freedom from duty but not the end of employment; ‘vacation’ implies continued service .. . The agreement was negotiated on behalf of [53]*53claimant and all the other members of the United Mine Workers of America, and it provided for the vacation period for all mine employes. The effect of the agreement is the same as if claimant had himself requested time off for a vacation, or other personal reason, and it had been granted by his employer. Such mutuality does not create a state of unemployment under the statute, which entitles claimant to unemployment compensation benefits. The situation was created by claimant’s duly selected bargaining agents; their acts were his acts; to the temporary cessation of work the employer and employe agreed. The circumstances afford no basis for the claim that he was unemployed within the meaning of the Unemployment Compensation Law . . .

“If we assume that claimant was ‘unemployed’ within the provisions of section 4 (u) of the Act, he was nevertheless ineligible for benefits under section 402 (b) of the Act, which bars compensation for any week in which his unemployment is due to voluntarily leaving work without good cause. The fundamental social purpose of the Unemployment Compensation Law is to provide relief from the rigors of involuntary unemployment. Obviously persons unemployed through their own fault are not within the intendment of the Act . . . Claimant’s unemployment, if any, was due to his own voluntary act . . . His agreement with his employer, negotiated through his union, provided for a vacation without pay where prior service was not considered sufficient to warrant such payment. Hence, the stopping of work in this case was from choice. He was not ‘unemployed’ ‘through no fault of his own’. Although the employer consented to the vacation, the leaving or absence from work was entirely voluntary on the part of claimant, there being a total absence of compulsion . . .

[54]*54“We are also of the opinion that claimant, under the facts, would not be entitled to compensation benefits because he was not available for work within the meaning of section 401 of the Act. . .

“We have said that, ordinarily, a claimant, an unemployed worker in a covered employment, is presumed to be entitled to benefits when he registers for work and files a claim; but such presumption is rebuttable . . .

“The test of availability requires claimant at all times to be ready, able, and willing to accept suitable employment, temporary or full time. Claimant had a regular position with the Glen Alden Coal Company to which he would return after ten days’ vacation. His absence from work was voluntary, temporary, and in accordance with his agreement with his employer. It cannot be said that he was ‘actually and currently attached to the labor force’ . . . which is a basic purpose of the statutory requirements.

“Claimant’s application for benefits and registration for work were not made until July 2, 1947, the sixth day of the vacation period, and at that time there were only four days remaining, two of which were the fourth of July, a legal holiday, and July 6th, which was Sunday. Claimant had known since the beginning of his employment in April that he could not work long enough to become eligible for the vacation pay under the agreement between his union and his employer; he also knew that the vacation would start June 27th.

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Cite This Page — Counsel Stack

Bluebook (online)
110 A.2d 258, 177 Pa. Super. 49, 1954 Pa. Super. LEXIS 256, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-electric-co-v-unemployment-compensation-board-of-review-pasuperct-1954.