U.S. Pipe and Foundry Company v. Nettles

96 So. 2d 186, 39 Ala. App. 115, 1957 Ala. App. LEXIS 121, 1957 Ala. Civ. App. LEXIS 48
CourtAlabama Court of Appeals
DecidedApril 2, 1957
Docket6 Div. 273
StatusPublished
Cited by1 cases

This text of 96 So. 2d 186 (U.S. Pipe and Foundry Company v. Nettles) is published on Counsel Stack Legal Research, covering Alabama Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
U.S. Pipe and Foundry Company v. Nettles, 96 So. 2d 186, 39 Ala. App. 115, 1957 Ala. App. LEXIS 121, 1957 Ala. Civ. App. LEXIS 48 (Ala. Ct. App. 1957).

Opinion

PRICE, Judge.

Plaintiff brought suit for severance pay under the provisions of a collective bargaining agreement between his union and defendant. The amount sued for was $750. The jury returned a verdict in favor of plaintiff for the sum of $354.48. Defendant appeals.

The collective bargaining agreement involved here was entered into on the 16 day of August, 1948, between the SlossSheffield Steel & Iron Company and Sloss Red Ore Local Union 109 International Union of Mine, Mill and Smelter Workers. In September, 1952, defendant acquired all of the assets of Sloss-Sheffield Steel & Iron Company and succeeded to its rights and obligations under the contract.

The agreement contained these provisions relative to severance pay:

“Section 13 — Severance Allowance

“(a) When, in the sole judgment of the Company, it decides to close permanently the mine or discontinue permanently a substantial portion thereof and terminate the employment of individuals, an employee whose employment is terminated either directly or indirectly as a result thereof because he was not entitled to other employ[118]*118ment with the Company shall be entitled to a severance allowance as follows:

"Continuous Company Service Weelts oí Severance Allowance
* * * * * * * * *
"5 years but less than 7 years 6
* * * * * *

“(b) A week’s severance allowance shall be determined in accordance with the provisions for calculation of vacation allowance as set forth elsewhere in this Agreement, and payment shall be made in a lump sum at the time of termination.”

The pertinent provisions of the agreement as to calculation for vacation allowance, read:

“Section 5 — Vacations

“(a) * * * Continuous employment for the purpose of determining eligibility for a vacation shall mean the receipt of earnings in at least sixty per cent (60%) of the pay periods of the year preceding the qualifying date when the employee has completed one or more years employment.

“(b) The rate of vacation pay of an employee granted a vacation under (a) above shall be based upon his average weekly rate of earnings for the regularly scheduled hours in the four pay periods immediately preceding the beginning of his vacation.”

Section 6 relates to seniority, and provides :

“Section 6 — Seniority

“It is agreed to observe during the life of this contract the same practices and customs in regard to the promotion or increases and decreases in the working forces as have been practiced in the past and defined as follows:

******

“(b) Lay-offs and return to work of employees laid off; The following factors shall be considered and where factor (2) is relatively equal, factor (1) shall govern:

“(1) Continuous service.

“(2) Ability to perform the work.”

Section 6, as to seniority, set out above, was amended on July 17, 1952, as follows:

“(c) Employees laid off at either Ruffner or Sloss shall have preference of available work at the other plant where he is qualified to perform such work.

“(d) The Mine Committee shall be informed of such job openings and of the names of the men affected by layoffs or promotions.”

The cause was submitted to the jury under Count A of the complaint and defendant’s plea of the general issue in short by consent.

The plaintiff set out in Count A the entire contract between the parties, averred that he was employed by the Sloss-Sheffield Steel & Iron Company on January 31, 1946, and worked continuously for said company and its successor, defendant company, until November 21, 1952, as a common laborer, timber man helper, timber man, and last worked for defendant from the month of September, 1952, until November 21, 1952, as a mucker at a daily wage rate of $13.85 per day, and alleged:

“Plaintiff further avers that although he has complied with all the provisions of said written contract or written agreement as amended on his part, the defendant has failed to comply with the provisions thereof, viz.: that on towit: November 21, 1952 the defendant did decide to discontinue permanently a substantial portion of Sloss Red Ore Mines Number 2 and did discontinue permanently a substantion (sic) portion of Sloss Red Ore Mine Number 2, and as a direct or indirect result thereof the plaintiff’s employment was terminated and he was not entitled to other employment with the defendant, and the defendant failed or refused to pay plaintiff his severance allow[119]*119anee or severance pay in the sum of Seven Hundred Fifty & no/100 ($750.00) Dollars.

“Plaintiff further avers that on, towit: the 21st day of November, 1952 when the defendant discontinued permanently a substantial portion of Sloss Red Ore Mines Number 2 that the plaintiff on said date had worked continuously for the defendant from towit: the 31st day of January, 1946 until towit: the 21st day of November, 1952 and had had continuous employment with the defendant or its predecessor corporation of 5 years and 10 months on, towit: the 21st day of November, 1952 when the defendant discontinued permanently a substantial portion of Sloss Red Ore Mines Number 2 and his employment was terminated either directly or indirectly as a result thereof and that plaintiff on said date was not entitled to other employment with the defendant under the terms or provisions of said contract or said written agreement as amended hereinabove referred to due to his lack of continuous service or seniority. And the plaintiff avers that under the terms or provisions of said written contract or said written agreement dated the 16th day of August, 1948 as amended the plaintiff was due the sum of Seven Hundred Fifty & no/100 Dollars, ($750.00) as his severance allowance together with interest thereon from, towit: the 21st day of November, 1952, based upon the average weekly rate of earnings for the regular schedule hours in the four pay periods immediately preceding the beginning of plaintiff’s vacation.”

Dismissal compensation, often referred to as “severance pay” is usually associated with a termination of the employment relationship for reasons primarily beyond the control of the employee, and may spring (1) from an agreement directly between the employer and the individual employee, or (2) from a collective labor contract covering all or a number of employees. See note 40 A.L.R.2d 1045.

It is plaintiff’s contention that his employment was terminated within the meaning of Section 13 of the contract, and it is defendant’s contention that plaintiff’s employment was not terminated, but that he was merely a “laid off” employee subject to recall and other employment rights dependent upon “seniority” as defined in the agreement.

The assignments of error relied upon for reversal by defendant on this appeal are: (2) Refusal of the requested general affirmative charge.

6. Refusal of the trial court to give requested charge “15.”

9. Refusal of the trial court to give requested charge “22.”

10.

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Related

United States Pipe & Foundry Co. v. Nettles
96 So. 2d 195 (Supreme Court of Alabama, 1957)

Cite This Page — Counsel Stack

Bluebook (online)
96 So. 2d 186, 39 Ala. App. 115, 1957 Ala. App. LEXIS 121, 1957 Ala. Civ. App. LEXIS 48, Counsel Stack Legal Research, https://law.counselstack.com/opinion/us-pipe-and-foundry-company-v-nettles-alactapp-1957.