Kendall Refining Co. v. Unemployment Compensation Board of Review

132 A.2d 749, 184 Pa. Super. 95
CourtSuperior Court of Pennsylvania
DecidedJune 11, 1957
DocketAppeal, No. 3
StatusPublished
Cited by27 cases

This text of 132 A.2d 749 (Kendall Refining 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
Kendall Refining Co. v. Unemployment Compensation Board of Review, 132 A.2d 749, 184 Pa. Super. 95 (Pa. Ct. App. 1957).

Opinion

Opinion by

Wright, J.,

This is a test case to determine the eligibility for unemployment compensation benefits of over two hundred employes of the Kendall Refining Company of Bradford, Pennsylvania, hereinafter referred to as Kendall. The claims cover the period between February 6, 1954 and April 22, 1954. The Bureau allowed benefits on the ground that claimants were unemployed as the result of curtailment of work by the employer. The Referee reversed the Bureau and disallowed benefits on the ground that claimants were disqualified under Section 402(d) of the Unemployment Compensation Law.1 The Board of Review, after taking additional testimony, vacated the Referee’s findings of fact, substituted its own, reversed the Referee, and allowed benefits. The employer has appealed.

The claimants herein involved are members of Local 567, Oil Workers International Union CIO. They were employed either as production or maintenance personnel for Kendall under a collective bargaining agreement which was due to expire at midnight on February 7, 1954. About sixty days prior thereto, Kendall and the union began negotiations concerning a new agreement, and a number of conferences were held. At the conference of February 3, 1954, Kendall was informed that a vote had been taken authorizing the calling of a strike. However, no date was designated. The position of the union was that Kendall should continue [98]*98operating the plant under the existing terms and conditions of employment pending further negotiations. On February 4, 1954, another conference was held, at which time Kendall submitted a written proposal for an orderly shutdown in the event of a strike. This proposal was not satisfactory to the union, and a counter written proposal submitted by the union was not satisfactory to Kendall. On February 8, 1954, the employes reported to the plant for work. They were informed that the plant had been shut down, and that little or no work would be available. When cold weather abated, Kendall made ready to start up its producing units whereupon, on April 22, 1954, the union officially called a strike.2

It is conceded by both sides that a labor dispute existed, and that a stoppage of work ensued. The controverted issue is the question of responsibility for the resulting unemployment. Kendall’s position is that it had reason to believe that a strike would occur, and that, in the absence of written assurance of an orderly shutdown, it was justified in taking steps to protect its plant while still in control of the labor situation. On the other hand, it is the contention of the union that Kendall discontinued operations in order to gain an advantage in collective bargaining. Its position is that a strike had actually not been called, that the employes were ready and willing to work beyond the expiration date of the contract under existing terms and conditions, and that they had given verbal assurance of an orderly shutdown in the event of a strike.

The credibility of witnesses, the weight of their testimony, and the reasonable inferences to be drawn [99]*99therefrom are for the Board. It is our duty to view the evidence in the light most favorable to the party in whose favor the Board has found, giving that party the benefit of every inference which can be logically and reasonably drawn from it. See Elnit Unemployment Compensation Case, 168 Pa. Superior Ct. 158, 77 A. 2d 668; Bako Unemployment Compensation Case, 171 Pa. Superior Ct. 222, 90 A. 2d 309; Hanna Unemployment Compensation Case, 172 Pa. Superior Ct. 417, 94 A. 2d 178; Weimer Unemployment Compensation Case, 176 Pa. Superior Ct. 348, 107 A. 2d 607. Findings of fact by the Board which are supported by competent and substantial evidence are conclusive, and binding upon the appellate court: Allen Unemployment Compensation Case, 174 Pa. Superior Ct. 514, 102 A. 2d 195. In the case at bar, the Board made, inter alia, the following findings of fact:

“3. During the month of November, 1953, the employer kept the crude unit in operation, although it was scheduled for shutdown during the weeks of November 15 and November 22. During the months of December*, 1953, and January, 1954, the employer stepped up production by adding extra workers and extra shifts, and also hired extra warehouses in which to store packaged goods.
“5. During the month of January, 1954, several employes dismantled an unusually large number of pumps in the dewaxing and derinsing units. During the first week in February, refrigerators, stoves and cots were brought into the plant. All of this work was done under a job order charged to emergency preparation.
“7. The union committee did not signify their intention to call a strike, nor did they fix any time at which a strike might be called.
[100]*100“10. The union committee had given their verbal assurance that there would be a safe and orderly shutdown. The employer, however, insisted upon a written guarantee and had submitted a memorandum as to its version of shutdown procedure,
“11. The employer had shut down the Dubbs unit in January, 1954. The employer began to shut down the other units at various times on February 3, 4, and 5, 1954, and the shutdown was completed on February 6, 1954.
“12. On February 4, 1954, and again on February 6, 1954, the union committee requested the employer to continue operating under existing terms and conditions of employment, but the employer refused these requests”.

Kendall first argues that the findings of the Board “do not support the legal conclusion that this was a ‘lockout’ ”. Strikes and lockouts are economic weapons. A lockout is an employer’s withholding of work from his employes in order to gain a concession from them. It is the employer’s counterpart of a strike. It may be present in varying factual situations, and no definition can comprehend all its manifestations. The core of a lockout is the act of an employer in withholding work. See Hogan Unemployment Compensation Case, 169 Pa. Superior Ct. 554, 83 A. 2d 386. It is argued that the instant situation “falls into the general category of cases in which an employer curtails his operations in anticipation of a strike”. Reliance is placed upon Lavely Unemployment Compensation Case, 166 Pa. Superior Ct. 481, 72 A. 2d 300. In that case, however, formal notice was given that a strike would be called. Several days before the date set, the company was again notified that the men would quit Avork on the day fixed for the strike. The company commenced curtailing its operations and shut doAvn the [101]*101unit where claimant was employed. The following language of Judge Reno is significant: “Of course, an employer may not use a strike notice as a mere pretext for closing his plant and discharging his employes. He cannot secure a bargaining advantage by such means. Borrowing counsel’s penetrating phrase, ‘he cannot jump the gun on his employes’ ”.

It is stated in Kendall’s brief that, “If an official notice that a strike will occur at a specified time is an absolute inflexible prerequisite to curtailment of operations to protect property in anticipation of a strike, then the Board’s decision in this case should be affirmed”. However, it is unnecessary to establish such a hard and fast rule in order to decide the present case.

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Bluebook (online)
132 A.2d 749, 184 Pa. Super. 95, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kendall-refining-co-v-unemployment-compensation-board-of-review-pasuperct-1957.