Metropolitan Detroit Plumbing & Mechanical Contractors Ass'n v. Employment Security Commission

425 Mich. 407, 105 Lab. Cas. (CCH) 55,675
CourtMichigan Supreme Court
DecidedJuly 22, 1986
DocketDocket No. 72928
StatusPublished

This text of 425 Mich. 407 (Metropolitan Detroit Plumbing & Mechanical Contractors Ass'n v. Employment Security Commission) 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
Metropolitan Detroit Plumbing & Mechanical Contractors Ass'n v. Employment Security Commission, 425 Mich. 407, 105 Lab. Cas. (CCH) 55,675 (Mich. 1986).

Opinion

Archer, J.

There are two issues before this Court. First, is the notice provision of Michigan’s labor mediation act preempted by the National Labor Relations Act? Second, if state law is preempted, and this Court is precluded from fashioning a remedy based on state labor law, what effect does preemption have on the parties’ dispute concerning payment of unemployment compensation? We find that since the notice provision of the labor mediation act is preempted, this preemption prohibits the construction of the Employment Security Act to permit payment of compensation in this case.

The dispute between the parties is whether some sixty employees were disqualified from receiving unemployment benefits from the Michigan Employment Security Commission from July 31, 1974, through August 22, 1974. The employers contested payment of benefits, charging that the claimants were involved in a labor dispute and therefore disqualified from receiving the benefits.

i

Plaintiff, the Metropolitan Detroit Plumbing & Mechanical Contractors Association, represents some sixteen employers in the business of plumbing and mechanical contracting in metropolitan Detroit. The association negotiates for its members in collective bargaining with members of Local Union 636 of the United Association of Journeymen and Apprentices of the Plumbing and Pipefit-ting Industry of the United States and Canada, afl-cio. The union is the collective bargaining agent for the employees. The association itself employed none of the employees involved in this case, rather it was the association members who were the employers. The association and the union [410]*410began negotiations for a new contract in March, 1974. In a letter dated March 19, 1974, the union notified the association of its intent to terminate the expiring 1972-74 contract on May 31, 1974, and of the changes the union desired in the contract terms. In addition, the union stated: "It is also the purpose of this letter to serve written notice of proposed modification, in accordance with the provisions of the Taft Hartley Act.”1 The union also sent letters to the Federal Mediation and Conciliation Service and to the State of Michigan Labor Mediation Board on March 19, 1974, to notify officials that the contract would terminate.

The parties were still negotiating when the contract expired on May 31, 1974. They agreed that the previous contract would remain in effect on a day-to-day basis while negotiations continued. On July 1, 1974, two employers, the Lome Company and the Donald Miller Company, reported to the association that union members were walking off job sites. At a special board of directors meeting called for July 1, the association’s board adopted a resolution giving the association’s negotiating committee the power to execute "in behalf of the association any action required including a lockout, to cope with Pipefitters Local 636 during current negotiations.”

Later in July, the same two employers reported that they were subject to "selective strike action” and that their work was subject to slow-downs. The Donald Miller Company reported that it was unable to get tradesmen to report to a job site, despite the request the company made to the union.2_

[411]*411The employers’ association was of the opinion that the union had engaged in strikes against its two members; so the association called a lockout, as authorized in its constitution and in the power of attorney executed by each member. According to the power of attorney, a strike against one association member is a strike against all.

About July 31, 1974, the association’s lockout of the union members occurred. Each of the union members involved in this case reported to work until his employer notified him on the job on July 31, 1974, that he was laid off or that his employment was terminated. There was work remaining for each union member when he became unemployed. Following the association action, the union picketed the plants and job sites of the association members. None of the union claimants in this appeal was an employee of the Lome Company or the Donald Miller Company, the employers who alleged concerted labor activity against them.

A new tentative agreement between the union and the association was reached on August 21, 1974. Most of the claimants involved in this appeal were recalled to work by their respective employers between August 22 and August 26, 1974. The locked-out employees applied to the Employment Security Commission for unemployment compensation benefits, but their applications were denied.3 The union appealed to a hearing referee who upheld the commission’s decision.4

The Court of Appeals has explained the referee’s [412]*412decision, as well as the board of review’s decision (by a vote of two to one) to reverse:

The referee held, under the above facts, that the unemployment of the claimants was the result of a labor dispute in which the claimants were directly involved, so that they fell within the disqualification provisions of the Employment Security Act, MCL 421.29(8)(a)(ii); MSA 17.531(8)(a)(ii).
On appeal from the referee’s decision, the board of review reversed. After noting that the statute was enacted to protect those who are involuntarily unemployed, who are capable of working but are prevented from doing so by others, the board considered the effect of a lockout on this statutory purpose. The board held that, in Michigan, an employer seeking to avoid payment of unemployment benefits on the basis of a labor dispute must prove that the employee is disqualified. The board also held that "a lockout situation is not automatically entitled to a designation as a labor dispute in active progress.” In the case at bar, the board concluded that the claimants were unemployed solely because the members of the employers’ association who were not experiencing strike activity honored their internal agreement to lock out the union because the union had "walked out” on two other employers. Thus, the claimants were entitled to compensation. [Metropolitan Detroit Plumbing Ass’n v Employment Security Comm, 113 Mich App 439, 442-443; 317 NW2d 649 (1982).]

The Whyne Circuit Court affirmed.5

In the Court of Appeals, the parties continued to [413]*413litigate the issue whether the employees were disqualified from receiving unemployment benefits under MCL 421.29(8); MSA 17.531(8) by reason of direct involvement in a labor dispute. See Smith v Employment Security Comm, 410 Mich 231; 301 NW2d 285 (1981).6 The Court explained that, under Smith, the affected employees could fall within the "labor dispute” disqualification of MCL 421.29(8); MSA 17.531(8). It stated that "[t]he individual claimants were directly involved in the 'labor dispute’ by reason of the fact that they were subjects of the lockout at their own place of employment.”

The Court nevertheless concluded that the affected employees were eligible for benefits. It explained that a failure to observe a statutory notice provision rendered the lockout unlawful, and stated further: "We cannot allow plaintiff to benefit from such wrongdoing.”

It appears from the foregoing that the claimants are ineligible for unemployment benefits under the rationale of Smith.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Gibbons v. Ogden
22 U.S. 1 (Supreme Court, 1824)
International Union of United Automobile v. O'Brien
339 U.S. 454 (Supreme Court, 1950)
San Diego Building Trades Council v. Garmon
359 U.S. 236 (Supreme Court, 1959)
Baker v. General Motors Corp.
478 U.S. 621 (Supreme Court, 1986)
Smith v. Employment Security Commission
301 N.W.2d 285 (Michigan Supreme Court, 1981)
Davidson v. Michigan State Carpenters Council
97 N.W.2d 11 (Michigan Supreme Court, 1959)

Cite This Page — Counsel Stack

Bluebook (online)
425 Mich. 407, 105 Lab. Cas. (CCH) 55,675, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metropolitan-detroit-plumbing-mechanical-contractors-assn-v-employment-mich-1986.