Textron Lycoming v. Unemployment Compensation Board of Review

604 A.2d 1216, 146 Pa. Commw. 193, 1992 Pa. Commw. LEXIS 179
CourtCommonwealth Court of Pennsylvania
DecidedMarch 4, 1992
DocketNo. 1047 C.D. 1991
StatusPublished
Cited by4 cases

This text of 604 A.2d 1216 (Textron Lycoming 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
Textron Lycoming v. Unemployment Compensation Board of Review, 604 A.2d 1216, 146 Pa. Commw. 193, 1992 Pa. Commw. LEXIS 179 (Pa. Ct. App. 1992).

Opinion

SMITH, Judge.

Textron Lycoming (Employer) petitions for review of orders of the Unemployment Compensation Board of Review (Board) which affirmed the referee’s order granting benefits to William McCowan, Linda Emig, and Paul R. Shaffer, representative Claimants and members of Local 787, International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (Union), under Section 402(d) of the Unemployment Compensation Law (Law), Act of December 5, 1936, Second Ex.Sess., P.L. (1937) 2897, as amended, 43 P.S. § 802(d).1 The questions presented by Employer are whether the parties reached an impasse in their labor negotiations; whether Employer maintained the status quo for a reasonable period of time; whether Claimants and the Union bear a responsibility for the work stoppage; and whether Claimants are ineligible for benefits.

The Board made the following pertinent findings of fact:

[196]*1963. A collective bargaining agreement was in existence between employer and union with an expiration date of April 20, 1990.
4. Negotiations for a new collective bargaining agreement began on March 5, 1990.
5. Despite negotiations, no new agreement could be reached prior to the existing contract’s expiration.
6. The parties agreed to continue work under the existing contract following its expiration.
7. During the negotiating process, the parties first dealt with noneconomic issues.
8. Upon the resolution of the majority of the noneconomic issues, the parties began bargaining on economic issues on or about April 13, 1990.
9. By early June 1990, the most important unresolved issue was a new health care plan.
10. Employer’s proposed health care plan included an across-the-board deductible and an 80/20 co-pay system wherein the employee would be responsible for 20% of the medical costs per individual in excess of $3,000 and the employer would be responsible for 80% of the diagnostic-related grouping (DRG) charges.
11. On June 11,1990, employer notified the union that it considered the expired agreement to be of no further force and effect, thereby discontinuing payroll deductions for union dues and unilaterally changing the grievance procedure.
12. Despite these unilateral changes by the employer, the union membership continued to work under the changed terms and conditions of employment.
13. The parties continued negotiations after June 11, 1990, concerning the health care plan, with the union requesting further information surrounding the proposed plan.
14. On June 21, 1990, employer and union met at a negotiating session wherein the union reiterated its request for further information; specifically, the union wanted to know costs associated with the DRG.
[197]*19715. Employer responded that it could not provide cost information on the DRG as the health provider, Blue Cross, considered that priority information.
16. At this meeting, the employer presented to the union its final offer.
17. The union desired to meet with Blue Cross representatives in an attempt to develop counter proposals that may have been acceptable to the employer.
18. The employer intended to attend this meeting and, accordingly, the union cancelled the meeting, deferring same for two to three weeks.
19. The parties continued to negotiate following the employer’s final offer of June 21, 1990, and on July 11, 1990, employer presented the union with a revised final offer.
20. The revised final offer included the implementation of the proposed health care plan, effective August 1, 1990.
21. Employer indicated that if the July 11, 1990, offer was not accepted by July 25, 1990, it would consider negotiations deadlocked.
22. Following the employer’s final offer, the union again requested information from the employer concerning specific cost amounts for its members under the proposed health care plan. The information was not provided to the union.
23. On July 31, 1990, the union offered, in writing, to continue working under the same terms and conditions of the expired contract, with the June 11,1990, modification, while negotiations continued.
24. On August 1,1990, employer unilaterally implemented the new health care pN”\
25. In response to the uni11 Vceral implementation of the new health care plan, the union initiated a work stoppage.
26. Negotiations between the parties continued following the inception of the work stoppage, and on October 5, 1990, a tentative agreement was reached which included a health care plan that differed from the employer’s unilat[198]*198erally implemented plan and the plan under the expired contract.
27. The tentative agreement was ratified by the union’s membership on October 10, 1990.
28. The union negotiators attended all scheduled negotiating meetings and were willing to continue negotiations while work continued under the expired contract.

Decision of the Board, pp. 1-3. The Board concluded that Claimants were eligible for unemployment compensation benefits since Employer was the first to alter the status quo and that based on the Board’s findings an impasse had not been reached.2

The Pennsylvania Supreme Court developed the following test to determine if a work stoppage is a lockout or a strike:

Have the employees offered to continue working for a reasonable time under the pre-existing terms and conditions of employment so as to avert a work stoppage pending the final settlement of the contract negotiations; and has the employer agreed to permit work to continue for a reasonable time under the pre-existing terms and conditions of employment pending further negotiations? If the employer refuses to so extend the expiring contract and maintain the status quo, then the resulting work stoppage constitutes a ‘lockout’ and the disqualification for unemployment compensation benefits in the case of a ‘stoppage of work because of a labor dispute’ does not apply.

Vrotney Unemployment Compensation Case, 400 Pa. 440, 444-45, 163 A.2d 91, 93-94 (1960). In Philco Corp. v. Unemployment Compensation Board of Review, 430 Pa. 101, 105 n. 2, 242 A.2d 454, 456 n. 2 (1968), the Vrotney test [199]*199was refined to require a determination as to which side “first refused to continue operations under the status quo after the contract had technically expired, but while negotiations were continuing.” Id., 430 Pa. at 103, 242 A.2d at 455.

Employer relies upon

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Related

Bellas v. Unemployment Compensation Board of Review
795 A.2d 449 (Commonwealth Court of Pennsylvania, 2002)
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604 A.2d 1216, 146 Pa. Commw. 193, 1992 Pa. Commw. LEXIS 179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/textron-lycoming-v-unemployment-compensation-board-of-review-pacommwct-1992.