John Hancock Mutual Life Ins. v. Pennsylvania Labor Relations Board

45 Pa. D. & C. 169, 1942 Pa. Dist. & Cnty. Dec. LEXIS 155
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedMay 5, 1942
Docketno. 3042
StatusPublished

This text of 45 Pa. D. & C. 169 (John Hancock Mutual Life Ins. v. Pennsylvania Labor Relations Board) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John Hancock Mutual Life Ins. v. Pennsylvania Labor Relations Board, 45 Pa. D. & C. 169, 1942 Pa. Dist. & Cnty. Dec. LEXIS 155 (Pa. Super. Ct. 1942).

Opinion

Levinthal J.,

This is a petition for review of the decision and order of the Pennsylvania Labor Relations Board of May 7, 1940, directing the John Hancock Life Insurance Company of Boston (1) to cease and desist from interfering with its employes in the exercise of their right to self-organization, and (2) to post a copy of this decision and order within ten days and to have it remain so posted for a period of 30 days.

On January 4, 1938, a charge was filed against the John Hancock Life Insurance Company complaining of unfair labor practices under section 6(a) of the Pennsylvania Labor Relations Act of June 1, 1937, P. L. 1168. Said unfair labor practices were alleged to have been committed in 1937. On January 25, 1938, a complaint was issued and, after preliminary motions, hearings were held on nine different days. The board filed its decision and order on May 26, 1939; exceptions thereto were filed by respondent on June 23,1939, and argued on July 18,1939, and the decision and order of the board was made final on May 7, 1940. Respondent on July 9, 1940, filed a petition with this court for review, and a stay of proceedings was duly entered. No answer to this petition was ever filed, and the matter was not argued until more than a year and a half after the case came into our court.

It is urged that the Pennsylvania Labor Relations Act does not apply to an insurance company because it is not an “industry” and that it confers no rights on [171]*171insurance agents because they are not “employes”. In addition, respondent argues that the proceedings lacked the impartiality and “fair play” required of hearings before quasi-judicial tribunals. Respondent further avers that, by reason of the numerous delays in the proceedings, the original question concerning the alleged violation has become moot.

1. Construing the act liberally, as we must, can it be said that the insurance business of respondent company is exempt and that insurance agents are denied any rights thereunder?

Pertinent sections of the Pennsylvania Labor Relations Act are section 2 (43 PS §211.2) :

'Findings and policy

“(a) Under prevailing economic conditions, individual employes do not possess full freedom of association or actual liberty of contract. Employers in many instances, organized in corporate or other forms of ownership associations with the aid of government authority, have superior economic power in bargaining with employes. This growing inequality of bargaining power substantially and adversely affects the general welfare of the State by creating variations and instability in competitive wage rates and working conditions within and between industries, and by depressing the purchasing power of wage earners, thus — (1) creating sweatshops with their attendant dangers to the health, peace, and morals of the people; (2) increasing the disparity between production and consumption; and (3) tending to produce and aggravate recurrent business depressions. The denial by some employers of the right of employes to organize and the refusal by employers to accept the procedure of collective bargaining tend to lead to strikes, lock-outs, and other forms of industrial strife and unrest, which are inimical to the public safety and welfare, and frequently endanger the public health. (Italics supplied.)
[172]*172“(d) All the provisions of this act shall be liberally construed for the accomplishment of this purpose.”

In section 3, 43 PS §211.3, it is stated:

Definitions

“When used in this act — . . .
“(c) The term ‘employer’ includes any person acting, directly or indirectly, in the interest of an employer, but shall not include the United States or the Commonwealth, or any political subdivision thereof, or any person subject to the Federal Railway Labor Act or the National Labor Relations Act, as amended from time to time, or any labor organization (other than when acting as an employer), or anyone acting in the capacity of officer or agent of such labor organization.
“(d) The term ‘employe’ shall include any employe, and shall not be limited to the employes of a particular employer, unless the act explicitly states otherwise, . . . but shall not include any individual employed as an agricultural laborer, or in the domestic service of any person in the home of such person, or any individual employed by his parent or spouse.”

In view of the complete lack of judicial precedent in Pennsylvania on this precise question, the decision of the New York Court of Appeals in the case of Metropolitan Life Insurance Co. v. New York State Labor Relations Board et al., 280 N. Y. 194 (1939), may be regarded as persuasive authority. In that case the insurance company challenged the applicability of the act on the ground (among others) that the agents were not “employes” within the meaning of the statute. Justice Loughran said, at page 205:

“Over and above all such argumentation stands the engendering principle of the New York act . . . The purpose and policy there avowed — and the scheme of the act as a whole — dispel all doubt that these agents of Metropolitan are employees in the sense of section 701.”

[173]*173For an interesting discussion of the problem see the lower court opinion of Justice Steuer in this same case in 168 Misc. 948, 6 N. Y. S. (2d) 775 (1938). See also New York State Labor Relations Board v. McChesney, 175 Misc. 95, 27 N. Y. S. (2d) 866 (1940), where employes of a private hospital were held to be within the act; and Bank of Yorktown v. Boland et al., 172 Misc. 885, 16 N. Y. S. (2nd) 756, where Justice Pécora held that bank employes were covered by the act. Other labor board cases holding insurance agents to be embraced within the term “employe” are Prudential Insurance Company of America v. Wisconsin Labor Relations Board, case no. III, 892: C-64, March 24,1939, digested in C. C. H. (LLS) 2A, Wis., §41,084; and Metropolitan Life Insurance Co. v. Massachusetts Labor Relations Commission, case no. C R 14-19, and C R 43, December 15,1938, C. C. H. (LLS) 2A, Mass., §41,042.

2. As a basis for respondent’s argument that it was not accorded a fair and impartial hearing, two general types of error are set up.

First, it is contended that the board did not comply with its own rules:

(a) That there were defects in the charge itself, in that it failed to set forth just what activity on the part of respondent amounted to an unfair labor practice, is one specific error complained of. While the authorities are unanimous in denouncing arbitrary action by administrative tribunals, it is well established that their decisions should not be upset by the failure to observe technical niceties or specific forms of procedure. Unless there is a showing of prejudicial error the board’s findings must stand: National Labor Relations Board v. American Potash & Chemical Corp., 98 F. (2d) 488 (C. C. A. 9, 1938).

In ascertaining whether the inadequacy of the charge is sufficiently prejudicial to upset the entire proceeding we must first determine just what is the purpose of the [174]*174charge. It is abundantly clear that a charge is required for the purpose of giving information to the board so that it in turn can proceed to investigate.

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Related

M. H. Ritzwoller Co. v. National Labor Relations Board
114 F.2d 432 (Seventh Circuit, 1940)
Metropolitan Life Insurance v. New York State Labor Relations Board
20 N.E.2d 390 (New York Court of Appeals, 1939)
Bank of Yorktown v. Boland
172 Misc. 885 (New York Supreme Court, 1940)
New York State Labor Relations Board v. McChesney
175 Misc. 95 (New York Supreme Court, 1940)

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45 Pa. D. & C. 169, 1942 Pa. Dist. & Cnty. Dec. LEXIS 155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-hancock-mutual-life-ins-v-pennsylvania-labor-relations-board-pactcomplphilad-1942.