Northern Health Facilities v. Unemployment Compensation Board of Review

663 A.2d 276, 1995 Pa. Commw. LEXIS 353
CourtCommonwealth Court of Pennsylvania
DecidedJuly 31, 1995
StatusPublished
Cited by6 cases

This text of 663 A.2d 276 (Northern Health Facilities v. Unemployment Compensation Board of Review) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northern Health Facilities v. Unemployment Compensation Board of Review, 663 A.2d 276, 1995 Pa. Commw. LEXIS 353 (Pa. Ct. App. 1995).

Opinion

DOYLE, Judge.

Before the Court is the appeal of Northern Health Facilities d/b/a the Broad Mountain, Nursing Center (Employer) from an order of the Unemployment Compensation Board of Review which granted unemployment benefits to Mary P. Ayello, Theresa Pletnick, and Dawn M. Zanuck, as representative claimants (collectively, Claimants) of the employees of Employer.

The Board made the following findings of fact. Claimants, worked under a collective bargaining agreement with Employer, which expired on June 1, 1992.1 Prior to the expiration of the agreement, Employer and the National Union of Hospital and Health Care Employees, District 1199P, were negotiating a new agreement, but were not able to reach a settlement by June 1,1992. Nevertheless, Claimants continued to work. On February 11,1993, the Union initiated a work stoppage at the nursing home and established and maintained picket lines.2 The Board found that on February 11, 1993, when the work stoppage began, continuing work was available to Claimants.

Employer took steps to hire replacement employees so as not to compromise the care given to residents of the nursing home. The Board specifically made the following findings concerning replacement employees:

10. On February 11, 1993, an authorized spokesman for the employer held a press conference at which he advised those present that “we are hiring permanent replacement workers.”
11. The employer began running classified advertisements in the local paper commencing on February 22,1993 which read, in part, “A labor dispute is in progress and workers are needed as permanent replacements for economic strikers_”
12. Newspaper articles relating information about the work stoppage and replacement workers appeared in local newspapers during this time.
13. The employer did not advise workers involved in the work stoppage that although permanent replacement workers were being hired, that work was still available to them.
14. The striking employees and their representatives involved in the work stoppage believed that they had been permanently replaced by the employer.
15. The striking employees observed other people going in and out of the facility and were told by these people that they had their jobs now.
16. The employer never retracted its statements or ceased actions which commenced on February 11,1993, regarding permanent replacement workers.
17. The employer hired permanent replacement workers to do the work of those engaged in the work stoppage commencing on February 12, 1993.
18. The employer refused to identify which employees it was replacing until the economic issues giving rise to the work stoppage were settled or until the Union made an unconditional offer to return under the terms and conditions of the old contract.
19. Commencing February 12, 1993, continuing work was not available to the individuals involved in the subject work stoppage.
20. Subsequent to the settlement of the economic issues involved in the work stoppage, the employer agreed to negotiate a return to work agreement relative to the individuals involved in the work stoppage.
21. Employees hired by the employer as permanent replacements of individuals involved in the work stoppage were advised by the employer that it intended to [278]*278enter into a long-term employment relationship with them.
22. Most (but not all) permanent replacements that were hired by the employer were required to sign an agreement which, in part, indicated that the individuals understood that their long-term employment may be affected by the outcome of labor negotiations with the National Union of Hospital and Health Care Employees, District 1199P.

(Findings of Fact Nos. 10-22.)

By May 28, 1993, the parties reached a tentative settlement, and, as part of that agreement, Employer waived its right to hire permanent replacements and agreed to return Claimants’ to their prior jobs. The work stoppage continued, however, until the ratification of the new labor contract between the parties on June 2, 1993.

Claimants applied for unemployment benefits, which were granted by the Job Center. Employer appealed, and, following that appeal Claimants voluntarily entered into a representative appeal agreement on November 4,1993. The referee affirmed the determination of the Job Center, and held that Claimants were ineligible for benefits for the week ending February 13, 1993, because of the work stoppage. However, the referee also held that Claimants were entitled to benefits for the weeks ending February 20, 1993, through June 5,1993, because they had been permanently replaced. The Board affirmed and this appeal followed.

Employer argues that (1) Claimants failed to sustain their burden of proving that they had been permanently replaced; and (2) Employer sustained its burden of proving that continuing work was available to Claimants and, therefore, benefits should have been denied.

Section 402(d) of the Law provides:3

An employe shall be ineligible for compensation for any week—
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(d) In which his unemployment is due to a stoppage of work, which exists because of a labor dispute (other than a lock-out) at the factory, establishment or other premises at which he is or was last employed....

The issues raised in this- appeal invoke the principle interpreting Section 402(d) of the Law enunciated by this Court, and recently affirmed by the Supreme Court, in Canonsburg General Hospital v. Unemployment Compensation Board of Review, 156 Pa.Commonwealth Ct. 533, 628 A.2d 503 (1993), affirmed, 540 Pa. 531, 658 A.2d 790 (113 M.D.Appeal Dkt. 1994, filed May 19, 1995) (per curiam). In that case we held that in a labor dispute,

where an employer hires permanent replacement employees, absent any evidence in the record and pertinent findings thereon that continuing work remains available to the striking workers, the case must be considered as one whether the employment relationship has been severed_ We further make it clear that the burden is upon the employer to show that it advised the striking employees that despite the hiring of permanent replacements work was still available to them....

Id. at 547-48, 628 A.2d at 510 (emphasis in original). The rationale for this holding is obvious: when an employer hires permanent replacements for striking employees, the employer is not only changing the status quo, it is severing the employment relationship. Thus, a claimant’s loss of employment is no longer caused by his or her decision to participate in a strike, but is the result of an employer’s constructive discharge of the' claimant from employment. We are invited by the facts of this case to refine our holding in Canonsburg Hospital.

Employer first contends that it is Claimants’ burden to prove that the replacement workers who were hired were permanent replacement workers.

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Bluebook (online)
663 A.2d 276, 1995 Pa. Commw. LEXIS 353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northern-health-facilities-v-unemployment-compensation-board-of-review-pacommwct-1995.