Westinghouse Electric Corp. v. Unemployment Compensation Board of Review

144 A.2d 856, 187 Pa. Super. 425
CourtSuperior Court of Pennsylvania
DecidedSeptember 11, 1958
DocketAppeal, No. 37
StatusPublished
Cited by12 cases

This text of 144 A.2d 856 (Westinghouse Electric Corp. v. Unemployment Compensation Board of Review) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Westinghouse Electric Corp. v. Unemployment Compensation Board of Review, 144 A.2d 856, 187 Pa. Super. 425 (Pa. Ct. App. 1958).

Opinions

Opinion by

Rhodes, P. J.,

The Westinghouse Electric Corporation appeals from a decision of the Unemployment Compensation Board of Review granting compensation to employes who ceased working at the expiration of a collective bargaining agreement. The board was of the opinion that Westinghouse was responsible for the work stoppage and allowed compensation on the basis that the unemployment was due to a lockout.1 The facts as found by the board do not support its conclusion. The decision will be reversed.

The claimants are employes of the Westinghouse Electric Corporation at its plant known as the South Philadelphia Works, Steam Division, Tinicum Township, Delaware County (Lester Plant). They are members of Local 107 of the United Electrical, Radio and Machine Workers of America (UE), which is the bargaining unit for approximately five thousand production and maintenance workers and approximately one thousand office and clerical workers employed at the South Philadelphia Works. The collective bargaining agreement in effect between the company and the union consisted of a national agreement negotiated on a company wide basis as well as a local sup[428]*428plement negotiated by the company and Local 107. The national agreement provided for the termination of the local supplement at midnight October 14, 1955, upon sixty days’ written notice by either party. In the event that neither party gave sixty days’ written notice the local supplement would continue in effect until October 14, 1956. By letter dated August 12, 1955, the company notified Local 107 of its intention to terminate the local supplement effective October 14, 1955. The letter further stated that any other agreements or understandings between Local 107 and local management at any level were terminated as of October 14, 1955. On August 29, 1955, the company and the local began negotiations which continued until October 14, 1955. In the course of the negotiations the company submitted proposals to revise the working conditions in the new contract. Local 107 rejected the company’s proposals and proposed that the existing terms and conditions of employment be maintained. On October 12, 1955, two days prior to the termination of the contract, the union proposed that the existing local supplement be extended for ninety days while negotiations continued. This proposal was rejected by the employer. On October 13, 1955, Local 107 announced the results of a strike vote which showed that the employes authorized a strike. When the company inquired concerning the significance of the strike vote, the union representative replied that as long as conditions in the plant remained the same negotiations would continue. On October 14, 1955, Local 107 requested that negotiations be continued over that week-end or be fixed for some time during the following week. The company rejected this request. Local 107 then requested the company to give assurance that existing terms and conditions of employment would continue beyond October 14, 1955, while the parties negotiated. The company [429]*429refused to give such assurance because it felt that it could unilaterally change the terms and conditions of employment if it desired. However, the board found: . . the employer stated it would not change existing conditions until it notified the local and discussed the changes. The employer further stated that if notice and discussion took place it reserved the right to make the changes desired.” The local supplement expired as of midnight October 14, 1955, and the claimants did not return to work on Monday, October 17, 1955, the next scheduled working day. The work stoppage continued in effect until August 8, 1956, at which time the parties concluded a collective bargaining agreement.

The board concluded that the final cause and responsibility or fault for the work stoppage rested upon the company. The board was of the opinion that the facts in this case were substantially the same as those in Leto Unemployment Compensation Case, 176 Pa. Superior Ct. 9, 106 A. 2d 652, which held that the refusal of the employer to maintain the existing terms and conditions of employment at the expiration of a collective bargaining agreement for a reasonable time pending negotiation of the new collective bargaining agreement amounted to a lockout. In the Leto case a collective bargaining agreement was expiring and the parties were negotiating a new contract. The employer had proposed a wage reduction which proposal the union rejected. On the day before the expiration of the contract the parties met and the company insisted upon the wage reduction. The union representatives would not agree to this proposal; instead they offered to continue working on the basis of the existing agreement for a year, a month, or even fifteen days to allow additional time for negotiation. The employer refused this offer and informed the union that work would be [430]*430available on the first working day following the expiration of the contract at the reduced wage rates proposed by the company. The employes refused to return to work on the employer’s conditions. The board allowed compensation; on appeal we affirmed stating: “. . . the employes . . . are entitled to benefits not because the company offered terms less advantageous than those contained in a prior contract, but rather because the company refused to furnish work on the basis of the pre-existing terms and conditions of employment for a reasonable time to avert a work stoppage pending settlement of the labor dispute.” Leto Unemployment Compensation Case, supra, 176 Pa. Superior Ct. 9, 15, 106 A. 2d 652, 654. The Leto case is far different from the present one. In the Leto case the employer stated definitely that, on the first work day following the expiration of the contract, work would be available only under the changed terms and conditions. In the present case, although the company would not give “assurances” concerning the extent to which the existing terms and conditions of employment would be continued beyond the expiration of the contract, the company did definitely state that it would not change the existing terms and conditions until it notified the local and discussed the changes, reserving the right to make the revisions desired notwithstanding the outcome of such notice and discussion. Here work was available to the employes on the first work day following the expiration of the contract upon the same terms and conditions of employment as under the old contract. In the Leto case the terms had definitely been changed. In fact, the present situation is closely analogous to that in the McGinnis Unemployment Compensation Case, 184 Pa. Superior Ct. 95, 132 A. 2d 749. In the McGinnis case the parties were negotiating a new contract to replace an expir[431]*431ing contract. About four days before the old contract was due to expire tbe employer was informed that a vote had been taken authorizing the calling of a strike but that no date had been designated. A written proposal of the employer for an orderly shutdown of the plant in the event of a strike was refused by the union as not satisfactory, and a written counter proposal for an orderly shutdown submitted by the union was refused by the employer as not satisfactory. On the day following the expiration of the collective bargaining agreement, the employer closed the plant and informed the employes that the plant had been shut down and that little or no work would be available.

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144 A.2d 856, 187 Pa. Super. 425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westinghouse-electric-corp-v-unemployment-compensation-board-of-review-pasuperct-1958.