Schaeffer v. Industrial Commission

105 N.W.2d 762, 11 Wis. 2d 358, 11 Wis. 358, 1960 Wisc. LEXIS 467
CourtWisconsin Supreme Court
DecidedNovember 1, 1960
StatusPublished
Cited by7 cases

This text of 105 N.W.2d 762 (Schaeffer 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
Schaeffer v. Industrial Commission, 105 N.W.2d 762, 11 Wis. 2d 358, 11 Wis. 358, 1960 Wisc. LEXIS 467 (Wis. 1960).

Opinions

Currie, J.

The controlling statute is sec. 108.04 (10), Stats. 1957, which reads as follows:

“Labor dispute. An employee who has left (or partially or totally lost) his employment with an employing' unit because of a strike or other bona fide labor dispute shall not be eligible for benefits from such (or any previous) employer’s account for any week in which such strike or other bona fide labor dispute is in active progress in the establishment in which he is or was employed.” (Italics supplied.)

It is conceded that the strike at the plants, other than the Appleton plant, of Consolidated caused Schaeffer’s unemployment. Therefore, the crucial question before us is whether the Appleton plant is part of the same establishment as such other plants.

Certain words used in the Wisconsin Unemployment Compensation Act (ch. 108, Stats.) are defined in sec. 108.02, Stats., entitled “Definitions,” but not establishment. However, sub. (21) of such section provides in part as follows:

“Undefined terms. Any word or phrase used in this chapter and not specifically defined herein shall be interpreted in accordance with the common and approved usage thereof and in accordance with other accepted rules of statutory construction.”

The decision by the commission examiner, who sat as the appeal tribunal, in which it was held that the Appleton plant, [363]*363together with Consolidated’s other plants, constituted one establishment, was grounded upon Spielmann v. Industrial Comm. (1940), 236 Wis. 240, 295 N. W. 1.

It was determined in the Spielmann Case that the Milwaukee and Kenosha plants of the Nash-Kelvinator Corporation, although located 40 miles apart, constituted one establishment. The Nash-Kelvinator Milwaukee plant was devoted exclusively to the manufacture of automobile bodies, while its Kenosha plant was devoted to the manufacture of automobile parts other than bodies, and to the assembly of completed cars. The bodies made at the Milwaukee plant were transported to the Kenosha plant by trucks owned by NashKelvinator and driven by its employees. Ninety-eight per cent of the cars manufactured by Nash-Kelvinator were built pursuant to specific orders. The production in each plant was so highly synchronized that a body built in the Milwaukee plant against a given order met upon the Kenosha assembly line the chassis built in the Kenosha plant against the same order pursuant to a prearranged schedule. A strike at the Kenosha plant caused a shutdown of the Milwaukee plant. Employees thus thrown out of work at the Milwaukee plant filed for unemployment compensation benefits. The Industrial Commission held that, because of the functional integrality, general unity, and physical proximity of the two plants, they constituted a single establishment. The applications for benefits were denied because of the provision of sec. 108.04 (10), Stats. Both the circuit court and this court affirmed.

In the instant case we do not have the highly synchronized integration of production that was present in the Spielmann Case. The pulp produced at the Appleton plant, while necessary and essential for the operation of some or all of Consolidated’s papermaking plants, is equally usable by other paper manufacturers who use chemical pulp. If before Consolidated purchased its Appleton plant it had been purchasing [364]*36484 per cent of the chemical pulp produced in the Appleton plant, such plant might have been forced to close down during a strike at Consolidated’s papermaking plants. However, the Appleton plant under such circumstances would not constitute part of the same establishment as Consolidated’s papermaking plants under sec. 108.04 (10), Stats., because of the separate ownership. Merely because vertical integration has taken place through purchase of the Appleton plant does not necessarily make the acquired plant part of the same establishment as the plant, or plants, of the purchaser, which previously had been consuming the greater portion of the purchased plant’s production. This was well pointed out by the Minnesota court in Nordling v. Ford Motor Co. (1950), 231 Minn. 68, 85, 42 N. W. (2d) 576, 586, in construing the provision of the Minnesota Unemployment Compensation Act which corresponds to sec. 108.04 (10), Wis. Stats.

We are of the opinion that the legislature must have had something in mind besides mere interdependence of production when it employed the term “establishment ” in enacting sec. 108.04 (10), Stats. This, is because it is difficult to visualize a situation where a strike in one plant will result in the closing down of another plant of the same employer except where there is interdependence of production. Therefore, if the legislature had intended that in all such cases of closing down, because of a strike or labor dispute involving a particular employer, an employee should be barred from unemployment compensation, there would have been no necessity for limiting the location of the strike, or labor dispute, to the particular “establishment in which he is or was employed.”

In interpreting the term “establishment” as used in sec. 108.04 (10), Stats., the provision of sec. 108.02 (21) must be accorded due consideration. This latter provision requires that such term “be interpreted in accordance with the com[365]*365mon and approved usage thereof.” Webster’s New International Dictionary (2d ed.), defines “establishment” as follows :

“d The place where one is permanently fixed for residence or business; residence, including grounds, furniture, equipage, retinue, etc., with which one is fitted out; also, an institution or place of business, with its fixtures and organized staff; as, large establishment; a manufacturing establishment.” Webster’s New International Dictionary (2d ed.), p. 874.

The Michigan court recently had before it the interpretation of the word “establishment” in its unemployment compensation statute, which is the counterpart to sec. 108.04 (10), Wis. Stats., in Park v. Employment Security Comm. (1959), 355 Mich. 103, 94 N. W. (2d) 407. In that case employees at the Rouge plant of the Ford Motor Company at Dearborn, Michigan, were forced out of work because of a strike of the company’s forging plant at Canton, Ohio. The court in its opinion quoted the foregoing definition of establishment in Webster’s New International Dictionary (2d ed.), and declared (355 Mich. 116, 94 N. W. (2d) 412) :

“Judges and lawyers can frequently do astonishing things with words. No layman would venture to suggest that the single word ‘establishment,’ used in the paragraph above, could in normal usage be applied to both the Ford Rouge plant in Dearborn, Michigan, and the Ford forge plant in Canton, Ohio.”

In the opinion of this court in the Spielmann Case, this court declared (p. 246) :

“Much is made by appellant of giving to the word ‘establishment’ its ordinary meaning. A multitude of meanings of the word is given in the dictionaries. In Webster one of these meanings is a ‘permanent commercial organization;’ another is ‘a manufacturing establishment.’ Both of these [366]*366definitions fit the instant situation.

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

Related

Jenks v. Wisconsin Department of Industry, Labor & Human Relations
321 N.W.2d 347 (Court of Appeals of Wisconsin, 1982)
De Leeuw v. Department of Industry, Labor & Human Relations
238 N.W.2d 706 (Wisconsin Supreme Court, 1976)
Abendroth v. Department of Industry, Labor & Human Relations
233 N.W.2d 343 (Wisconsin Supreme Court, 1975)
Cook v. Industrial Commission
142 N.W.2d 827 (Wisconsin Supreme Court, 1966)
Schaeffer v. Industrial Commission
105 N.W.2d 762 (Wisconsin Supreme Court, 1960)

Cite This Page — Counsel Stack

Bluebook (online)
105 N.W.2d 762, 11 Wis. 2d 358, 11 Wis. 358, 1960 Wisc. LEXIS 467, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schaeffer-v-industrial-commission-wis-1960.