Milwaukee Transformer Co. v. Industrial Commission

126 N.W.2d 6, 22 Wis. 2d 502, 1964 Wisc. LEXIS 355
CourtWisconsin Supreme Court
DecidedFebruary 4, 1964
StatusPublished
Cited by61 cases

This text of 126 N.W.2d 6 (Milwaukee Transformer Co. v. Industrial Commission) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Milwaukee Transformer Co. v. Industrial Commission, 126 N.W.2d 6, 22 Wis. 2d 502, 1964 Wisc. LEXIS 355 (Wis. 1964).

Opinion

Wilkie, J.

Three issues are raised on this appeal. They are:

1. Was Mrs. St. John’s conduct “misconduct connected with . . „ employment,” within the meaning of sec. 108.04 (5), Stats. ?

2. May the issue of whether Mrs. St. John’s conduct was a voluntary termination of employment without good cause attributable to the employing unit or compelling personal reasons within the meaning of sec. 108.04 (7) (a), (b), and (c), Stats., be properly raised on this appeal, when the matter was not argued before the Industrial Commission or the circuit court and not passed upon by either body?

3. Assuming No. 2 is answered affirmatively, was Mrs. St. John’s conduct a voluntary termination of employment within the meaning of sec. 108.04 (7) (a), (b), and (c), Stats. ?

Issue No. 1. Was Mrs. St. Johnss conduct “misconduct connected with employment ” within the meaning of .sec. 108.04 (5), Stats.? To rule on whether Mrs. St. John’s conduct was or was not “misconduct connected with [her] employment” within the meaning of sec. 108.04 (5), Stats., we must first define the extent of our review of the commission’s determination that her conduct was not “misconduct” within the meaning of that statute.

The length of and reasons for Mrs. St. John’s absence, the transactions between members of her family and company representatives, and the content of the company regulations and collective-agreement provisions, are findings of fact. It is well recognized that the court must accept the commis *510 sion’s determinations on such findings of fact if supported by credible evidence on the record as a whole. 3

On the other hand, any determination that Mrs. St. John’s conduct was “misconduct” within the standards set forth under sec. 108.04 (5), Stats., is a conclusion of law. As we recently said:

“With respect to the second point of difference, insofar as a person’s acts, or his intent in doing such acts, are questions of fact, where the evidence and reasonable inferences therefrom would support any one of two or more findings, a finding by the commission is conclusive.
“Here, however, the question' is whether the facts fulfil a particular legal standard. This court determined that the term ‘misconduct connected with his employment’ as used in sec. 108.04 (5), Stats., was an ambiguous term of doubtful meaning, and found it necessary to interpret it with the view of effecting the general purpose of the legislature.
“We consider that the difference between the appeal tribunal’s evaluation of claimant’s conduct and that of the commission is really a question of law, and the commission’s determination does not bind us.” 4

If it is true that a determination by the commission that there has been misconduct under the standard prescribed by the statute is a conclusion of law, it does not follow that every such determination is open to an independent rede-termination by this court. If several rules, or several applications of a rule are equally consistent with the purpose of the statute, the court will accept the agency’s formulation and application of the standard.

*511 However, this court has the power in the first instance to determine whether the standard or policy choice used by the agency is consistent with, the purpose of the statute. If upon consideration, we determine that a particular rule is consistent with legislative purpose, we must reject alternative rules regardless of whether they are “reasonable” or grounded in administrative expertise.

The general standard for determining whether an employee’s course of conduct is misconduct is whether such behavior reflects an “intentional and substantial disregard of the employer’s interests or the employee’s duties.” 5

“. . . mere inefficiency, unsatisfactory conduct, failure in good performance as the result of inability or incapacity, in-advertencies or ordinary negligence in isolated instances, or good-faith errors in judgment or discretion are not to be deemed ‘misconduct’ within the meaning of the statute.” 6

This standard must be interpreted and applied in the light of the basic social and economic objectives of unemployment compensation and the statutory mechanisms designed to achieve such objectives. 7

The fundamental objectives of unemployment compensation are to mitigate economic loss to a worker and his family who is committed to the labor market, but is unable to find work because the economy has not provided enough jobs; to sustain general purchasing power by providing a built-in brake on a recession thus serving the interests of the economy at large.

When determining whether a worker’s conduct is “misconduct” which will disqualify him from the benefits of the program, the employee’s behavior must be considered as an *512 intentional and unreasonable -interference with the employer’s interest.

In considering whether a breach of company work rules or collective-agreement provisions is -misconduct, the "“reasonableness” 8 of the company rule must be assessed in light of the purpose of unemployment compensation rather than solely in terms of efficient industrial relations. We are less concerned with the “reasonableness” of the rule from the point of view of labor-management relations, than with the “unreasonableness” of the conduct of the employee in breach of the rule. 9 The unemployment compensation statute is not a “little” labor relations law. The critical question is whether Mrs. St. John’s conduct was an intentional and unreasonable interference with her employer’s interest, regardless of what construction was put on the rules or the reasonableness of those rules.

Therefore, it was unnecessary for either the commission or the court to construe the work rules and collective-agreement provisions in the fashion of an arbitrator or a court deciding a reinstatement case. 10 Assuming that the one-day rule required daily call-ins, the three-day rule required a call every three days, regardless of the duration of the absence, and the leave-of-absence provision was effective if the employee was to be absent for a “reasonably long duration,” Mrs. St. John’s conduct did not manifest such conscious disregard of her employer’s interest as to constitute misconduct connected with employment.

The commission found that her absences prior to March 13, 1961, were caused by ill health. On each occasion she *513 gave the company adequate notice on the day of her absence. Whether the company subjectively “accepted” her excuses or not is immaterial.

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126 N.W.2d 6, 22 Wis. 2d 502, 1964 Wisc. LEXIS 355, Counsel Stack Legal Research, https://law.counselstack.com/opinion/milwaukee-transformer-co-v-industrial-commission-wis-1964.