Milne Chair Co. v. Hake

230 S.W.2d 393
Tennessee Supreme Court·Decided June 9, 1950·Published·Cited by 10 cases

Opinion

230 S.W.2d 393 (1950)

MILNE CHAIR CO.
v.
HAKE, Commissioner.

Supreme Court of Tennessee.

February 10, 1950.
On Rehearing June 9, 1950.

Miller, Martin, Hitchings & Tipton, Chattanooga, for complainant.

Atchley & Atchley and W.T. Thrasher, Jr., Chattanooga, for claimants.

W.L. Moore, Nashville, Charles K. Cosner, Nashville, Sols. for W.O. Hake, Com'r.

*394 TOMLINSON, Justice.

The Board of Review created by our Employment Security Act, Chapter 29, Acts of 1947, found that approximately 120 former employees of Milne Chair Company are entitled to payment of the unemployment benefits provided by this statute which is carried in Williams Supplement to the Code commencing at Section 6901.25. The Chancellor, in dismissing the certiorari petition of the Milne Chair Company, filed a brief memo wherein he stated that "this Court does not feel that it could say that there is no evidence to support the findings of the Board of Review", and then pointed out that he, therefore, felt compelled to dismiss the petition under Section 6 of the Act, C.S. § 6901.30, subd. 1, wherein it is provided that: "In any judicial proceeding under this section, the findings of the board of review as to the facts, if there be any evidence to support the same, shall be conclusive and the jurisdiction of said court shall be confined to questions of law."

The appeal of the Milne Chair Company from this decree presents for our determination the question of whether there was any substantial evidence before the Board of Review in support of its above stated finding. The facts before the board were either by stipulation or the evidence as to facts was not contradicted. Only those facts material to the decision of the question made will be stated.

On the morning of April 21, 1947 the Company for cause suspended for a week one employee who was a member of a labor union which had a contract with the Company for the union members working there. The union committee was promptly notified of this action. Shortly thereafter on that day 157 employees, all members of this union, left their jobs without notice in protest of this disciplinary action of the Company and formed a picket line around the plant. That picket line was continously thereafter maintained through the time of the hearing by the Board of Review a number of months subsequent. All of the appellees here were among that 157 with the exception of possibly two or three who happened to be absent that day and who thereafter cooperated in one manner or another with those who walked out.

It was provided in the contract between the Union and the Company that if a "dispute of any kind arises, there shall be no suspension of work by the employees represented by this agreement on account of such differences" until an effort to settle the differences has been made by certain procedure set out in the agreement.

At a meeting on April 23 between representatives of the Company and the Union the Company rejected the Union's proposal "that the workers be returned to their jobs and that the difficulty be arbitrated." The Company took the position at that meeting "that the contract had been broken by the employees walking out and that it considered that they were no longer its employees".

The next meeting between the Company and the Union was held on April 28. That was exactly one week from the date of the disciplinary action against the employee by suspending him for a week. At that meeting the Company rejected the proposal of the Union "that both sides should forget everything that happened and put the people back to work", the Company's position being that these people were no longer its employees. The picketing continued.

Two more entirely unsuccessful meetings, the last on May 20, were had between the Union and the Company. The Company remained firm in its position theretofore stated.

Commencing on May 26 the employees here involved, together with two more, filed in the re-employment security office claims for payment of unemployment benefits. Our State Commissioner of unemployment security, pursuant to the requirements of the statute, caused an investigation of the merits of the claims to be made, and in so doing took statements from these claimants. Practically all of them said in these statements that they had participated in the picketing, and would participate thereafter if requested. It is to be kept in mind that this picketing was being maintained continuously.

*395 Section 5 of the Act, Code Section 6901.29, subd. E, provides that "an individual shall be disqualified for benefits" "for any week with respect to which the commissioner finds that his total or partial unemployment is due to a labor dispute which is in active progress at the factory, establishment, or other premises at which he is or was last employed," or if he belongs "to a grade or class of workers of which immediately before the commencement of the labor dispute, there were members employed at the premises at which the labor dispute occurs, any of whom are participating in the dispute".

The concerted activities of these employees in walking off the job and in picketing the plant in protest over the suspension of a fellow union member and in thus supporting him in connection with the treatment accorded him seems to be generally recognized as a labor dispute. See Carter Carburetor Corporation v. National Labor Relations Board, 8 Cir., 140 F. (2d) 714, 718 and cases there cited. Apparently, it is conceded in behalf of the persons here involved that the walkout and picketing was originally a labor dispute within the meaning of our Employment Security Act.

It is the insistence of the Milne Chair Company that these appellees are disqualified for the unemployment benefits claimed by that portion hereinabove quoted of Section 5 of the Act in that their unemployment was due to a labor dispute in active progress at the plant and in which they participated. That was also the conclusion of the Commissioner of Employment Security.

The Board of Review recognized the situation as a labor dispute in the beginning, but further held that: "These employees became involuntarily unemployed upon May 20, 1947 since the position taken by the company in failing to further recognize them as employees amounted to their dismissal".

And made the further observation that: "Except for the position taken by the company, the claimants no doubt would be found to be participating in a labor dispute and, therefore, not entitled to any benefits whatever but the action of the company brought the labor dispute to an end."

Accordingly, the conclusion of the Board of Review was that the unemployment of these people was attributable to their dismissal by the company for breaking their contract rather than to a labor dispute. This Board, in reaching the conclusion just stated, said: "That the action of the company commencing first on April 23, 1947 and terminating May 20, 1947 amounted to an outright discharge of all of the employees involved and a total severance of the employer-employee relationship as of the latter date."

The above quoted excerpts from the opinion of the Board makes it manifest, we think, that the Board was of the opinion that a labor dispute could not exist in the absence of an employer-employee relationship. We cannot say, however, that this controlled the Board's decision. However, the relationship of employer-employee is not a prerequisite to the existence of a labor dispute in the application of our Employment Security Act. Block Coal & Coke Co. v. United Mine Workers, 177 Tenn.

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Milne Chair Co. v. Hake, 230 S.W.2d 393 (Tenn. 1950).

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