In Re the Employees of Student Services, Inc.

432 A.2d 189, 495 Pa. 42, 1981 Pa. LEXIS 852, 108 L.R.R.M. (BNA) 2669
CourtSupreme Court of Pennsylvania
DecidedJuly 10, 1981
Docket80-1-186 and 80-1-187
StatusPublished
Cited by53 cases

This text of 432 A.2d 189 (In Re the Employees of Student Services, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re the Employees of Student Services, Inc., 432 A.2d 189, 495 Pa. 42, 1981 Pa. LEXIS 852, 108 L.R.R.M. (BNA) 2669 (Pa. 1981).

Opinions

OPINION

NIX, Justice.

The Retail Clerks’ Union and the Pennsylvania Labor Relations Board are appealing an order of the Commonwealth Court, 49 Pa.Cmwlth. 220, 411 A.2d 569 which reversed an order of the Pennsylvania Labor Relations Board certifying the Union as the bargaining representative of the employees of Student Services, Inc. located on the grounds of Edinboro State College. The Board’s order was affirmed by the Court of Common Pleas of Erie County.

The important question before us is whether the Commonwealth Court correctly concluded that for a non-profit organization to come within Section 301(1) of the Public Employee Relations Act (PERA),1 the non-profit organization must receive “grants or appropriations from local, State or Federal governments.”

Student Services, Inc., the employer in the instant case, is a non-profit corporation organized under the laws of Pennsylvania with its only place of business at Edinboro State College. It operates exclusively for the college in providing services for students not offered by the college itself. Appellee-employer occupies buildings owned by the Commonwealth in which it conducts business ventures, including a book store, art store, bowling alley with pool tables and pinball machines, a duplicating service and vending machines. It also leases the food services in the student union to an outside concern. No rent is paid to the Commonwealth for the use of the facilities.

[45]*45A petition for representation was filed with the Pennsylvania Labor Relations Board (Board) by the Retail Clerks International Association, Local 1538, AFL-CIO seeking to represent certain employees of Student Services, Inc. On May 19, 1975, the Board ordered pre-election conferences to be held on June 17, 1975.

The employer filed an appeal from the Board’s pre-election conference order in the Court of Common Pleas of Erie County. A stay of all proceedings was granted by the Court of Common Pleas of Erie County which later dismissed the appeal. Following the pre-election conference, held on September 23, 1975, the Board issued an Order and Notice of Election setting forth the time and place for the election. Following the March 4, 1976 election the Board issued a nisi order certifying the Union as the exclusive bargaining representative. The employer’s exceptions to the certification were dismissed by the Board in a final order dated August 5, 1976.

Under the Pennsylvania Labor Relations Act (PLRA) which was passed in 1937,2 this Court, after studying the findings and policy under 43 P.S. § 211.1, concluded that the legislature intended the provisions of the Act to apply exclusively to industrial disputes. Salvation Army Case, 349 Pa. 105, 36 A.2d 479 (1944). In reaching that conclusion, the Court did not give significance to § 211.3(c)3 which did not exclude non-profit employers. Also, § 211.3(d)4 did not [46]*46exclude as a group non-profit employees. The Court, applying Section 211.2, Findings and Policy, said, “The phrases: ‘within and between industries’, ‘sweat shops,’ ‘production and consumption,’ ‘business depressions’ and ‘industrial strife and unrest’ certainly do not relate to charitable or eleemosynary associations.” Salvation Army Case, supra, 349 Pa. at 110, 36 A.2d at 481. Yet the Court was emphatic that it did “. . . not mean to decide or imply that whenever a non-profit organization does enter an industrial field, even though its profits may be devoted to charity, it is exempted from the taxes and regulations such as the Labor Relations Act to which any other industry or business is subjected.” Id., 349 Pa. at 110, 36 A.2d at 481.

Subsequent decisions, while finding the Pennsylvania Labor Relations Act inapplicable to certain non-profit employers, varied the criteria for determining whether a non-profit employer is subject to the PLRA and decided the issue of PLRA applicability on a case-by-case basis. In Pennsylvania Labor Relations Board v. Mid-Valley Hospital, 385 Pa. 344, 124 A.2d 108 (1956) a controversy regarding the discharge of an employee of a non-profit charitable hospital was held not to be a labor dispute under the PLRA, citing Salvation Army Case as holding “the Act related exclusively to industrial disputes and not to non-profit, charitable organizations.” 5 However, in Pennsylvania Relations v. Overbrook Golf Club, 385 Pa. 358, 123 A.2d 698 (1956) this Court broadened the criteria used in determining whether the employer in that, case came within the jurisdiction of the PLRB by 1) adding the disjunctive “or commercial” to the former criteria of “industrial,” 2) emphasizing the “commer[47]*47cial” criteria and 3) shifting the focus away from the nonprofit element.

The criterion for determining whether an employer is subject to the provisions of the Act would seem to be, more particularly, whether he is engaged in an industrial or commercial activity rather than that he operates it as a non-profit enterprise. In the present instance, it is factually settled beyond controversy that the Overbrook Golf Club is not engaged in an industrial or commercial pursuit. On the contrary, the Board competently found that the Club’s serving of food and drink was a strictly private activity conducted for the comfort, convenience and pleasure of the Club’s members in their enjoyment of its other concededly nonindustrial operations under its charter powers and that, as such, the questioned activity did not constitute an attempt on the part of the Club to invade an industrial or commercial field.
* * * * *
It is interesting to note that in its final decision the Board recognized that it “has repeatedly held that [it is] without jurisdiction over the maintenance employees of a non-profit social club”, citing Youghiogheny Country Club’s Employees Case, No. 85 (1946), and Royal Order of Moose’s Employes Case, No. 238 (1950). The Board further noted that, in the one case where it did take jurisdiction of a complaint against a social club (Pennsylvania Labor Relations Board v. Melodee Club, Inc., No. 19 (1952), it was “under facts, not applicable to the instant case.” Id., 385 Pa. at 363-64, 123 A.2d at 700.

Thus, Pennsylvania through Court interpretation maintained a relatively narrow approach to the jurisdiction of its labor relations board, and resisted the contrary views of other jurisdictions. Pa. L.R.B. v. Mid-Valley Hosp. Ass’n, supra, citing as contra views Northwestern Hospital v. Public Building Service Employes’ Union, Local No. 113, 208 Minn. 389, 294 N.W. 215; Utah Labor Relations Board v. Utah Valley Hospital, 120 Utah 463, 235 P.2d 520; Wisconsin Employment Relations Board v. Evangelical Deaconess Soci[48]*48ety, 242 Wis. 78, 7 N.W.2d 590; St. Joseph’s Hospital v.

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Bluebook (online)
432 A.2d 189, 495 Pa. 42, 1981 Pa. LEXIS 852, 108 L.R.R.M. (BNA) 2669, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-employees-of-student-services-inc-pa-1981.