Nielsen v. EMPLOYMENT SEC. DEPT. OF STATE

966 P.2d 399, 93 Wash. App. 21
CourtCourt of Appeals of Washington
DecidedNovember 5, 1998
Docket16407-1-III, 16408-0-III, 16409-8-III
StatusPublished
Cited by22 cases

This text of 966 P.2d 399 (Nielsen v. EMPLOYMENT SEC. DEPT. OF STATE) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nielsen v. EMPLOYMENT SEC. DEPT. OF STATE, 966 P.2d 399, 93 Wash. App. 21 (Wash. Ct. App. 1998).

Opinion

Sweeney, J.

This is the consolidation of three appeals 1 filed by Westinghouse Hanford Company workers who participated in an employer-sponsored Special Voluntary Reduction of Force program (SVROF), after Westinghouse announced 4,800 jobs would be eliminated at the Hanford Nuclear Reservation. Westinghouse offered the SVROF to satisfy a United States Department of Energy (DOE) mandated reduction in force. All of these claimants were denied unemployment compensation benefits because their participation in the SVROF was deemed a disqualifying voluntary quit under RCW 50.20.050. The question here is whether they “left work voluntarily without good cause” when they accepted the SVROF. We conclude that the Westinghouse SVROF fell within the Employment Security Department’s employer-initiated reduction-in-force exception to RCW 50.20.050, and that quits under such a program are not “voluntary.” WAC 192-16-070.

FACTS

The National Defense Authorization Act of 1993, 42 U.S.C. § 7274h, authorized the DOE, in consultation with the responsible contractors, to develop a work force restructuring plan for operation of the DOE’s Hanford Nuclear Reservation. In response, Westinghouse, the primary *25 contractor, developed a three-phase plan to eliminate 4,800 jobs:

Phase I (December 1994)—an early retirement program;
Phase II (January 1995)—the first SVROF;
Phase III (April 1995)—the second round of SVROF and involuntary layoffs.

A third round of SVROF was implemented in January 1996. DOE approved the plan.

The SVROF offered employees several severance packages, including cash payouts based on length of service, relocation costs, and educational stipends. Westinghouse retained the right to select which employees would be accepted for SVROF

John Wagoner, DOE’s site manager, announced the second phase of the restructuring plan, the SVROF, on January 18, 1995:

We have today received approval from DOE Headquarters to begin the second phase of the program designed to reduce the Hanford work force to a level compatible with Fiscal Year 1995 budget authorizations. Therefore I am today authorizing the Hanford contractors to begin a voluntary separation program under which selected categories of contractor employees may volunteer to be separated from the rolls in exchange for an incentive package.
We anticipate that about 500 employees sitewide will take advantage of this offer .... The bulk of the separations will come from Westinghouse Hanford Company and its subcontractors ....
Each contractor is notifying its employees in sitewide messages later today of which categories of employees are being offered the voluntary separation program and details of the program itself.
This is the second phase of a program designed to reduce the Hanford work force by up to 2,500 employees to meet the *26 FY 1995 budget levels. During the first phase completed in December, 843 of your colleagues took a voluntary early retirement program. The next phase, an involuntary separation program, is expected to begin shortly after the completion of the voluntary separation program ....
. . . We appreciate the cooperation of the contractors and you, the Hanford staff members, in reducing the size of our staffs to meet budget limitations and our needs.

Rasp Commissioner’s Record at 61-62 (emphasis added).

On the same day, LaMar Trego, Westinghouse’s president, made the following announcement:

It is with mixed emotions that I announce that . . . we were given DOE approval to offer a Special Voluntary Reduction of Force (SVROF) to Westinghouse Hanford, BCS Rich-land and ICF Kaiser Hanford employees.
Based on a thorough staffing and skills mix analysis, we have determined which specific job categories we must cut back on, and how many of those jobs we can eliminate ....
Every volunteer will reduce the number of employees that might otherwise be laid off involuntarily. Of course, I cannot guarantee that there will be no involuntary layoffs; nor should you infer that you are exempted from future involuntary reductions or transfers to other departments if your current job category is not one of those being targeted for reduction.
The general provisions of the SVROF and request forms will be provided in a separate message to follow later today
Requests to participate in the program can be submitted starting Monday, January 23, through Tuesday, January 31, on a first-come, first-served basis. If you think you might want to take advantage of this program, please carefully weigh all of your options so that the decisions you make about your future will be the best for you.

Rasp Commissioner’s Record at 63-64 (emphasis added).

*27 Erik H. Neilsen, 2 a senior engineer, started at Westinghouse in July 1989. The number of workers in his department was reduced from 20 to about 18 in the first two rounds of layoffs. Mr. Neilsen took part in the third and final round of the SVROF, which was announced in January 1996. Westinghouse approved his application and authorized his release. His last day of work was February 9, 1996. After Mr. Neilsen left, his position was eliminated. Neilsen Commissioner’s Record at 31.

He applied for unemployment benefits in April 1996. Benefits were denied, on the ground he had quit voluntarily without good cause because the employer had not announced an involuntary reduction-in-force pursuant to WAC 192-16-070(1). Neilsen Commissioner’s Record at 43. The denial was upheld by both the Administrative Law Judge (ALJ) and the Commissioner’s Delegate.

Sharon A. Rasp started at Hanford in 1989. From April 1993 to April 1994, she supervised 15 to 17 employees as manager of public affairs. In April 1994, her position was eliminated, and she accepted temporary “special assignment” as a staff manager at the same rate of pay but with no supervisory duties. Her primary job was drafting communications to employees about the impending reduction-in-force. She perceived her new position as temporary and a loss of status.

Ms. Rasp applied for the January 1995 SVROF, opting for a cash payout based on length of service. At Westinghouse’s request she extended her service twice, finally leaving on May 31, 1995, after the second SVROF and involuntary layoffs had commenced. Her total severance package equaled what she would have received had she been involuntarily terminated.

Ms.

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966 P.2d 399, 93 Wash. App. 21, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nielsen-v-employment-sec-dept-of-state-washctapp-1998.