United States Steel Corp. v. Unemployment Compensation Board of Review

368 A.2d 1319, 28 Pa. Commw. 445, 1977 Pa. Commw. LEXIS 672
CourtCommonwealth Court of Pennsylvania
DecidedFebruary 3, 1977
DocketAppeals, Nos. 1839, 1840, 1841, 1842, 1843 C.D. 1975
StatusPublished
Cited by8 cases

This text of 368 A.2d 1319 (United States Steel Corp. 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
United States Steel Corp. v. Unemployment Compensation Board of Review, 368 A.2d 1319, 28 Pa. Commw. 445, 1977 Pa. Commw. LEXIS 672 (Pa. Ct. App. 1977).

Opinion

Opinion by

Judge Crumlish, Jr.,

This is an appeal by United States Steel Corpora^tion (Employer) from an order of the Unemployment Compensation Board of Review (Board) which affirmed a referee’s determination that five claimants1 were entitled to the unemployment compensation benefits which the Bureau of Employment Security (Bureau) had awarded them. We reverse and remand.

Claimants were employed at Employer’s Universal Atlas Cement Division Plant. In December, 1974, plant management decided to shut the plant down for a period of time in early 1975. Management desired to designate part of the period as vacation time, during which all eligible employes would take their regular vacations and receive vacation pay. Management was empowered to do this under its Basic Labor Agreement with the United Steelworkers of America, provided that it gave the affected employes sixty days’ notice. Accordingly, management posted copies of the following notice on the plant’s bulletin hoard on December 30, 1974:

NOTICE TO ALL EMPLOYEES:

December 30, 1974
Revised projections for 1975 now dictate a total plant shutdown on Sunday, February 2, 1975. The shutdown will, as currently estimated, last approximately seven (7) weeks through Saturday, March 22,1975.
[447]*447The three week period, March 2, 1975 through March 22, 1975, will be utilized to schedule up to three weeks of regular vacation for all employees who are not required to work and who qualify.
Revised schedules showing department vacations will be posted.
(signed) Gt. N. PETERSON Plant Manager

The employes received individual layoff notices one week prior to the shutdown, but the notices gave no recall date. However, after the plant closed as scheduled and the claimants applied for benefits, the Supervisor of Personnel Services (Supervisor) at the plant completed Employer’s Separation Notice Forms (UC-45’s) for all five claimants and entered “4-15-75” in the space provided for “Expected Date of Recall.” Four of the claimants returned to work on March 23, the day that the posted notice indicated operations would resume; one returned March 25.

During the period designated as vacation time, all of the claimants received one or more weeks of vacation pay at rates in excess of $295.00 per week. The Bureau then awarded benefits to all five claimants for some of the weeks in which they received vacation pay. All five claimants had weekly benefit rates of $111.00 and partial benefit credits of $45.00 and received benefits at their full weekly benefit rate.

The Bureau found that all of the claimants had been separated from their employment indefinitely2 [448]*448and that, therefore, under Section 404(d) (ii) of the Unemployment Compensation Law (Law)3, the vacation payments they received were not deductible from their unemployment compensation awards. Section 404(d) provides, in pertinent part:

(d) Notwithstanding any otheir provisions of this section each eligible employe who is unemployed with respect to any week ending subsequent to the first day of July, one thousand nine hundred seventy-four shall be paid, with respect to such week, compensation in an amount equal to his weekly benefit rate less . . . (ii) vacation pay, if any, which is in excess of his partial benefit credit, except when paid to an employe who is permanently or indefinitely separated from his employment____(Emphasis added.)

On appeal to the referee, Employer contended that the claimants had not been separated indefinitely, and that therefore the benefits payable to each claimant had to be decreased by an amount equal to his vacation pay less his partial benefit credit, an amount which in all cases exceeds $250.00 and which would, therefore, cancel out completely his $111.00 unemployment compensation award.

Since the crucial question under Section 404(d) (ii) was whether the claimants had been separated indefinitely, the, referee, at four separate hearings, questioned the Supervisor regarding the April 15 recall date which appeared on the UC-45 form. The Supervisor testified, in substance, that, although the shutdown was expected to end March 23, the date of April 15 was entered because it represented a “conclusive [449]*449catch-all date” by which time all employes would definitely have returned to work.4

The referee’s decisions in the five cases are substantially identical and contain these findings of fact:

2. On December 30,1974 the employer posted a notice to the effect that there would be a plant shutdown on Sunday, February 2, 1975 and the shutdown would, as currently estimated, last for approximately seven weeks.
4. On Form UC-45, Separation Notice, the employer indicated the layoff would last until April 15,1975.

Citing Employer’s use of the words “estimated” and “approximately” in the December 30, 1974 notice, his failure to name a recall date in the individual layoff notices, and his naming of April 15, 1975 as the expected recall date on the UC-45’s, the referee concluded that the claimants had been separated indefinitely.

[450]*450On appeal to this Court, Employer contends that we need not reach the issue presented by Section 404(d), since the claimants were not eligible for benefits at all under Section 4(u) of the Law, which reads:

An individual shall be deemed unemployed (I) with respect to any week (i) during which he performs no services for which remuneration is paid or payable to him and (ii) with respect to which no remuneration is paid or payable to him, or (II) with respect to any week of less than his full-time work if the remuneration paid or payable to him with respect to such week is less than his weekly benefit rate plus his partial benefit credit.
Notwithstanding any other provisions of this act, an employe who is unemployed during a plant shutdown for vacation purposes shall not be deemed ineligible for compensation merely by reason of the fact that he or his collective bargaining agents agreed to the vacation.
No employe shall be deemed eligible for compensation during a plant shutdown for vacation who receives directly or indirectly any fwnds from the employer as vacation allowance. (Emphasis added.)

We disagree and hold that, notwithstanding the plain language of the last sentence of Section 4(u), past judicial construction of that sentence requires that it be interpreted not as an absolute bar to eligibility, but rather as a mandate that vacation pay be taken into account to reduce the benefits under certain circumstances, which are set forth in Section 404(d). In the Piestrak Unemployment Case, 404 Pa. 527, 172 A.2d 807 (1961), the Supreme Court analyzed the vacation pay issue and concluded that the last sentence of Sec[451]*451tion 4(u) does not preclude an award of unemployment benefits simply because some payment had been made to the employe, but rather that it:

. . .

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Related

Hoffman v. Commonwealth
504 A.2d 963 (Commonwealth Court of Pennsylvania, 1986)
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Libbey-Owens-Ford Co. v. Commonwealth
400 A.2d 1353 (Commonwealth Court of Pennsylvania, 1979)
United States Steel Corp. v. Commonwealth
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Eckenrode v. Commonwealth
390 A.2d 886 (Commonwealth Court of Pennsylvania, 1978)

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Bluebook (online)
368 A.2d 1319, 28 Pa. Commw. 445, 1977 Pa. Commw. LEXIS 672, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-steel-corp-v-unemployment-compensation-board-of-review-pacommwct-1977.