State-Record Publishing Co. v. South Carolina Employment Security Commission

173 S.E.2d 144, 254 S.C. 1, 1970 S.C. LEXIS 195
CourtSupreme Court of South Carolina
DecidedMarch 10, 1970
Docket19024
StatusPublished

This text of 173 S.E.2d 144 (State-Record Publishing Co. v. South Carolina Employment Security Commission) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State-Record Publishing Co. v. South Carolina Employment Security Commission, 173 S.E.2d 144, 254 S.C. 1, 1970 S.C. LEXIS 195 (S.C. 1970).

Opinions

Littlejohn, Justice.

The South Carolina Employment Security Commission ruled that striking employees were entitled to benefits after the strike was over, and ruled that the benefits should be charged to the employer’s employment experience rating reserve. The circuit judge to whom appeal was taken under the provisions of Sections 68-164 and 68-165 of the South Carolina Code, reversed the ruling and held that the employ[4]*4er’s experience rating reserve account should not be charged. It is conceded that benefits should be paid, and the only issue for determination by the circuit court and by this court is:

“Does Section 68-115 of the South Carolina Employment Security Law require the South Carolina Employment Security Commission to non-charge the experience rating account of an employer with the amount of benefits paid a former employee to whom the employer has denied reinstatement after termination of a labor dispute ?”

The commission has appealed.

There is no dispute as to the facts. On December 15, 1967 William J. Adams and nineteen other typesetter employees of the State-Record Publishing Company, which publishes daily newspapers, commenced an economic strike. No unfair labor practices were involved and the only issue between the employer and the employee was wages and benefits. It has been agreed that the case of Mr. Adams will be determinative of all cases. Actually, the employees are not parties to this appeal and the contest is between the commission and the employer.

During the course of the labor dispute, which extended for a year, lacking ten days, the employer replaced the strikers with other workers and continued to publish the daily papers. When the strike was abandoned by the union the employee sought reinstatement of his job but was informed that the position had been permanently filled. During the strike the employee was not entitled to benefits under the law because Section 68-114 states that persons on strike shall be ineligible for benefits during a labor dispute. The strike having ended and no job being available, the employee filed claim for unemployment compensation under the provisions of the South Carolina Unemployment Compensation Law, Section 68-1 and subsequent sections. The position of counsel for the employer throughout the case, as stated into the record is as follows:

[5]*5“Our position is not that these ladies and gentlemen are not entitled to any employment compensation. It is our position that they are not entitled to any employment compensation at the expense of the company’s account under Section 68-115 of the 1962 Code on the grounds that they have created the lack of work situation by voluntarily abandoning their jobs * * *. This is our position, so it’s not that we are involved in whether or not they’re entitled. We say they are not entitled at our expense because they have voluntarily created the lack of work situation.”

The circuit judge ruled that the employer’s experience rating account is exempt from charge in the circumstances set out herein because claimants voluntarily left their jobs without good cause within the contemplation of Section 68-115 of the code. He ordered that benefits being paid to the employee be not charged against the experience rating account of his former employer.

As indicated above, this appeal does not involve whether the employee should draw unemployment compensation nor does it involve the amount to which he is entitled. In protecting employees against unemployment, the statute places a general burden on industry as a whole. The fund from which benefits are paid is a common fund; however, separate accounts are kept for each employer and the rate of contribution (somewhat equivalent to an insurance premium) is raised or lowered periodically, based on the individual employer’s experience. See Section 68-174. Counsel for the commission, in written brief, asserts that “well over one-third of all benefits are not charged to experience rating accounts.” These are paid from the general fund, at the expense of all employers, to persons who have served disqualifications after leaving employment by reason of such things as voluntarily quitting, being discharged for misconduct, or being paid though refusing to work. Obviously, if benefits are paid the twenty employees involved in this case, the contribution rate will be adversely affected, though it is impossible to estimate to what extent.

[6]*6Section 68-115 of the code sets forth certain exceptions under which benefits paid to a claimant shall not be charged against the account of any employer. The employer contends that benefits should be paid from the general fund and not charged against it because of the exemptions in this section. We are called upon to construe that section. The commission and the circuit judge have differed as to its meaning. It reads in part as follows:

“Benefits paid to any claimant shall not be charged against the account of any employer when the Commission finds that such individual (a) voluntarily left his most recent employment with the employer without good cause, * * * or (c) subsequent to his most recent employment refused without good cause to accept an offer of suitable work made by that employer * * *.”

There are no disputed facts, and accordingly the issue is one of law. Judson Mills v. South Carolina Unemployment Compensation Commission, 204 S. C. 37, 28 S. E. (2d) 535 (1943).

In oral argument counsel for the commission candidly admitted that the employee voluntarily left his employment when he stated:

“We concede that these people voluntarily went on strike. All strikers voluntarily go on strike.”

When the employee applied for compensation he was in the status of an unemployed person. A construction of Section 68-115 is never necessary until benefits are actually paid, as has been done here. When employment terminates might be extremely important on the issue of whether an employee is entitled to benefits, but has little relevancy here, where the only issue is: should the benefits be non-charged? We need not construe Section 68-114.

The legislature has determined that no benefits shall be paid when a labor dispute exists. The merits of the strike and the cause are not relevant on the issue of “good cause.” [7]*7The rule was stated in In re Steelman, 219 N. C. 306, 13 S. E. (2d) 544: “* * * the merits of the labor dispute cannot belong to the commission. These are matters more properly pertaining to the field of labor relations.”

Also see Ablondi v. Board of Review, 8 N. J. Super. 71, 73 A. (2d) 262.

Both the employer and employee apparently asserted and pursued rights available to them under the law. “Without good cause” referred to in Section 68-115 does not contemplate fault in the sense of blame.

When a statute is subject to more than one interpretation legislative intent is controlling. We held in Stone Mfg. Co. v. South Carolina Employment Security Commission, 219 S. C. 239, 64 S. E. (2d) 644 (1951):

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Related

Hartsville Cotton Mill v. South Carolina Employment Security Commission
79 S.E.2d 381 (Supreme Court of South Carolina, 1953)
Stone Mfg. Co. v. South Carolina Employment Security Commission
64 S.E.2d 644 (Supreme Court of South Carolina, 1951)
Little Rock Furniture Manufacturing Co. v. Commr. of Labor
298 S.W.2d 56 (Supreme Court of Arkansas, 1957)
In Re Steelman
13 S.E.2d 544 (Supreme Court of North Carolina, 1941)

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Bluebook (online)
173 S.E.2d 144, 254 S.C. 1, 1970 S.C. LEXIS 195, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-record-publishing-co-v-south-carolina-employment-security-sc-1970.