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Penflex, Inc. v. Bryson
485 A.2d 359
Pa.
1984
Check Treatment

*1 the Appellants here were heroin distributing from their residence, which, standing if alone would be insufficient for cause, as finding probable being sufficient to revive stale Agent evidence obtained Bordeleau. My reading the affidavit of probable cause indicates the latest evidence obtained from by Agent Bordeleau which criminal be activity can inferred was obtained on December fully five months to the prior application for a search warrant. When in applying Tolbert standard a determi- probable nation of cause where some of evidence stale, given hand, at I facts find the observations Agent Bordeleau not to sufficiently be proximate time the date of the probable warrant to establish cause on their own. do I Nor find the information supplied by the confi- dential informant providing as sufficient evidence that the activity by Agent criminal up observed Bordeleau continued to the time of the issuance the search warrant —a condi- tion necessary to validate the stale evidence. I would finding therefore affirm the of the Superior Court on based well-reasoned opinion Tolbert. A.2d PENFLEX, INC., Appellee, v.

Kenneth al. BRYSON et and Commonwealth of

Pennsylvania Unemployment Compensation Review, Appellants.

Board of Supreme of Pennsylvania. Court

Argued April 1984.

Decided Dec. 1984. *6 Seus, Berke, Thomas E. Philadelphia, Bry- Jennifer for son, et al. Gen., Kupchinsky, Deputy Atty. Harrisburg,

John T. Comm/UCBR. NIX, C.J., LARSEN, FLAHERTY,

Before McDER MOTT, PAPADAKOS, HUTCHINSON, ZAPPALA and JJ. THE COURT

OPINION OF HUTCHINSON, Justice. appellee, Penflex, former

Appellants, employees Inc., appeal by allowance Commonwealth Court order reversing Unemployment Compensa- orders entered Board, turn, tion Board of Review.1 The had affirmed decisions of the Referee and the Office of Employment Security awarding unemployment compensation benefits to appellants. We now reverse Commonwealth Court and reinstate the orders of the Review Board. surrounding

The factual circumstances the instant contro- versy undisputed. appellants are The were members of a *7 bargaining represented collective unit by Plumbers Union Penflex, appellee Inc., Local 690. The and appel- Union lants’ entered into a employer, bargaining agree- collective ment which expired on June 1980. The parties engaged in failed continuing negotiations agree but on the terms of a new contract before 1980. July The Union advised its members not to in a engage Nevertheless, the stoppage. membership disregarded that work, report establishing advice and failed to lines picket at employer’s plant beginning the on 1980. The July Union had not notified the Federal Mediation and Concilia- tion of the contract dispute stop- Service before the work page required by as of the Labor Relations Management Act), (1947), Act (Taft-Hartley Stat. 136 (hereafter 158(d) (1976) “LRMA”).2 U.S.C.A. record § [The Penflex, appeals 1. On the motion of from the Review Board’s orders were consolidated order of Commonwealth Court dated February 1982. 8(d) provides, pertinent part, 2. Section in that: bargaining there is in effect a collective contract [W]here ... duty bargain collectively pаrty shall also mean that no to such contract, modify party contract shall terminate or such unless the desiring such termination or modification— (3) notifies the Federal Mediation and Conciliation Service within thirty days dispute, after such notice of the existence of a and simultaneously any agency therewith notifies State or Territorial disputes established to mediate and conciliate within the State or show, however, provision notice was any

does not itself, nor bargaining agreement written into the collective extending in that its provision agreement does it any show Consequent- in of such statutory term the absence notice.] on appellants’ employment terminated ly, 1,1980 illegal what it considered an participating for July 3, 1980, offered to return to appellants July strike.3 On However, accept did not their offer. appellee work. termination, of this appellants sub- Out work because unemployment compensation benefits sequently applied Law, Act of Unemployment Compensation to the pursuant 5, 1936, Ex.Sess., (1937) 2897, Second P.L. as December (1964 amended, Supp.1983-84). 43 P.S. 751 et & The seq. Employment Security initially determined that Office unemployment was caused a “lockout” insti- appellants’ (hereafter that, tuted there- by appellee “employer”) fore, 4(u) Law,4 under Sections (hereafter were for com- appellants “employees”) eligible beginning ending the week 1980. pensation July to the employer appealed Unemployment Compensa- The strike, that, arguing by engaging tion Board of Review occurred, agreement Territory dispute provided where the no has time; by that been reached effect, (4) resorting continues in full force and without to strike *8 lock-out, existing and for or all the terms conditions of the contract sixty days given period after such notice is or until the a contract, expiration date of such whichever occurs later. finding employ- 3. The Review Board affirmed the Referee’s that the relationship July finding supported ment terminated 1980. This employees the notices of dismissal to contained in the record. ”[c]ompensation payable any 4. Section 401 states that shall be to employe unemployed” provided speci- who is or becomes that certain 4(u) fied conditions are met. See P.S. 801. Section defines § reads, "unemployed” part, in relevant as follows: (I) unemployed respect any An individual shall be deemed with to (i) during performs remunera- week which he no services for which (ii) respect paid payable tion is to him with to which no or him, (II) paid payable respect any remuneration is or or with to paid week of less than his full-time work if the remuneration payable or weekly respect to him with is less than his such week plus partial benefit rate his benefit credit. 753(u). 43 P.S. § for initial ineligible employees former were its the Unemployment virtue of Section any an for employee compensation denies Law which stoppage is due to a unemployment his which week “[i]n (other than a of a work, dispute exists because labor which at lockout) premises or other at a establishment factory, 802(d). last 43 P.S. employed____” he is or was which partic- employees’ further that its employer argued The 8(d) of the in of Section stoppage in a work violation ipation misconduct, employees that the LRMA constitutes willful of that willful misconduct terminated on account were under ineligible for benefits that, they remain consequently, 402(e).5 that, Referee hearing, initially the observed Following had ex- agreement already parties’ bargaining since the not the usual stoppage 1980 work was July pired, strike, ie., spite which occurs “wild-cat” in an extant collec- provision lockout” of a “no strike —no He therefore concluded bargaining agreement. tive of contract and was the strike did not constitute a breach illegal not for that reason. in a that participation

The Referee further determined did not of the fedеral labor statute strike violation meaning of Section willful misconduct within establish 402(e) Compensation Law. Pennsylvania’s Unemployment comply an failure to employee’s The Referee reasoned that 8(d) re- of Section requirements notice thirty-day with of his purposes status for employee only sults in his loss of to contest his dismissal before right LRMA-conferred 402(e), 402(d), disqualification provisions 5. Section like is one of contained in the Law and states that: any ineligible compensation week— employe for An shall be discharge temporary or unemployment is due to his In which his connected with his suspension work for willful misconduct from *9 work, "employment" as irrespective work is of whether or not such act____ defined in this 802(e). 43 P.S. Therefore, the Referee practice.6 as an unfair labor NLRB that, effect, has employee rule who any refused to protected in a not the LRMA engaged stoppage by work his to benefits automatically right pursuant forfeits 402(e) Pennsylvania’s Unemploymеnt Compensa- Section tion Law. if the addition, employees’

In the Referee noted that for his presented the factual circumstance only strike were consideration, for under they ineligible would be benefits 402(d). However, the Referee further noted that Section employees day terminated the on the same employer he ruled that the cause stoppage began. Accordingly, stoppage was not a work employees’ unemployment of the but, instead, their dispute, discharge from a labor resulting Therefore, he affirmed the Office of employment. from compensation award. Employment Security’s reasoning The Review Board with the Referee’s agreed short, In the compensation and affirmed his determination. comply authorities determined that the failure to with LRMA, notice terminat- provision Section before not, facts, ing the contract did on these constitute willful 402(e) Unemployment under of our Com- misconduct the Board’s pensation employer appealed Law. The then decision to Court.7 Commonwealth Court Commonwealth did employees held that the work initiated concluded, therefore, constitute misconduct and willful under compensation were Sec- they ineligible 402(e). tion generally permits

6. In this we that federal labor law connection note replacement regard of strikers without to whether their strike action not, Thus, is, practice. may or is an unfair economic strikers be labor any continuing replaced replaced, expectation em- and if so lose they may they ployment had when went out on strike. N.L.R.B. have 375, 379, 543, 546, Co., v. Fleetwood Trailer 389 U.S. 88 S.Ct. (1967). Only stoppage by L.Ed.2d 614 if the work the workers is in constituting response practice, or action an unfair labor law, illegal they right otherwise do have a federal under federal N.L.R.B., employment. Corp. U.S. continued Mastro Plastics v. 270, 278, 349, 355, 76 S.Ct. 100 L.Ed. 309 granted petition employees’ 7. to intervene Commonwealth Court pro nunc tunc order dated March 1982.

285 aсknowledged not con- Commonwealth Court it was and that only fronted with a wildcat strike such strikes had to illegal stoppages amounting been held to be work willful court, prior misconduct under decisional law. the However Com., citing Houck v. Unemployment Compensation Review, Board 45 Pa. 405 Commonwealth Ct. of (1979), that, law, A.2d stated under the willful disregard misconduct includes “a of standards [of behavior] has a employer right expect which the to of his employee” that, striking 8(d), in violation of the by employ- Section See v. such disregard. Weimer ees here demonstrated Review, 176 Pa. Unemployment Compensation Board of 348, 354, 107 A.2d Superior Ct.

Commonwealth Court reasoned that: here, [W]here, Employer as and Union have undertaken engage to in collective under the of bargaining aegis the NLRA, then Employer right expect the has a that the 8(d) notice of provisions complied Section will be with to an strike. prior employee

Furthermore, if the accept ... we were Claimants’ striker, ineligible arguments, and Board’s then a under 402(d) Law, provisions the of Section would become eligible the exercise the upon by employer right discharge its the striker for violations by 8(d) striker of Section of the NLRA. therefore We would 8(d). strikers to encouraging be violate Section Such a would, believe, result we so inhibit the exercise an of its serious employer rights question federal that a invalidity under Clause of the United Supremacy States Constitution would be raised. 111, 116-17,

73 Pa. Commonwealth Ct. 457 A.2d (1983) (citations omitted) ‍​​​‌​​​‌‌​‌​‌‌​​​​​‌‌​‌​​‌‌‌​‌​‌​‌​‌‌​‌​​‌‌​‌​‌‌‍and footnote (emphasis original). disagree with

We Commonwealth Court’s determi nation that here employees disregard exhibited behavioral standards which their could reasonably expect of them and now hold that their in a participation in violation of of the LRMA does

not constitute willful within misconduct the meaning of Section 402(e) of our Unemployment Compensation Law. In reaching decision, our we are mindful of the circum- scribed scope of appellate review.

It is now аxiomatic in an unemployment compensation case, that the findings Board, fact made or by the referee be, as the case may are conclusive on appeal long so as record, whole, taken as a contains substan- *11 tial evidence to support (citations those findings, omit- ted) The appellate duty court’s is to examine the testimo- in the ny light most favorable to the party whose favor found, the Board has giving that party benefit of all inferences that can logically and reasonably be drawn from the if testimony, to see substantial evidence for the Board’s conclusion exists. Com.,

LeGare v. Unemployment Compensation Board of Review, 72, 76, 498 Pa. 444 1151, A.2d (1982) 1152-53 v. (quoting Taylor Unemployment Compensation Board Review, 351, 355, 829, 474 Pa. 378 A.2d 831 [1977]). Our of review is further constrained by policy considerations un- derpinning the Unemployment Compensation Law. “This Act designed was to alleviate the rigors of unemployment and most specifically assuage the distress of the individu- al unemplоyed worker.” Services, Gladieux Food Inc. v. Unemployment Compensation Review, Board 479 Pa. of 324, 330, (1978). 388 A.2d 678 reason, For this the eligibili- ty sections of the law must be liberally interpreted to provide the maximum amount of benefits allowable under the statute to a claimant who has experienced involuntary unemployment. Renne v. Unemployment Compensation Review, Board 299, 4, 499 Pa. 318, 305 n. 453 A.2d 321 n. of (1982). 4 Conversely, disqualification provisions, such as 402(e), should narrowly be construed and a claimant must not be compensation denied unless he is unequivocally excluded by plain language provisions. of these See Penn Hills School District v. Unemployment Compensa- Review, tion Board 620, 625, 1213, 496 Pa. 437 A.2d 1215 (1981); Gladieux, 479 Pa. at 388 A.2d at 682.

287 range of our we turn to inquiry, Given the limited the matter This case involves the interrelation before us. 402(d) 402(e) ship Pennsylvania between Sections Law, 43 Unemployment P.S.

802(e), Ordinarily, tempo where a claimant is respectively. a result of in a rarily as his involvement “unemployed” 402(d) governs labor-related the deter activity, only Section receiving mination from disqualified as to whether he is However, compensation provision applies benefits. rela only ongoing employer-employee the context of an A tionship. employee, strictly speaking, never striking leaves his employment.

A striker an the strike and employee during continues as only removes himself from actual labor. He retains his status at all again working employee times and becomes when the strike is terminated. Unemployment Compensation

Pramco v. Board Re- view, 560, 564, (1959). 154 A.2d Pa. 876-77 See Henwood, Sprague Compensa- & Inc. v. Unemployment Review, tion Pa.Superior Board Ct.

A.2d *12 402(d)

Section if terminates applies only employment as a In dispute. interpreting result of a labor the causation requirement to that precedent application Section’s to unem ployment we have held that we “confine our to the inquiry immediate cause and the maze that avoid would result from an to ascertain indirect or attempt chronologically Services, remote causes.” Food Gladieux Inc. v. Unem Review, 330, ployment Compensation Board 479 Pa. at of added). (emphasis 388 A.2d at 681 the employer-em Where severed, ployee is no relationship permanently employee longer has real interest in the outcome of the any labor dispute.8 dispute is not the immediate Accordingly, 402(d) 8. Section states that: [Tjhis (1) apply if subsection shall not it is shown that [the in, in, participating directly is claimant not or interested the labor ] work, (2) dispute stoppage which caused the he is not a of in, organization participating directly member of an which is or in, work, dispute stoppage interested the labor which caused of 288 of

cause his disqualification set unemployment forth in to him. See Sprague 402(d) inapplicable Section Henwood, & Unemployment Compensation Inc. v. Board Review, 112, 215 Pa.Superior (1965); 207 Ct. A.2d 269 of Oluschak v. Unemployment Compensation Board Re of view, 255, 192 263, 750, (1960).9 Ct. 159 A.2d Pa.Superior 754

Nevertheless, 402(d) Section does not “immunize an employee in a during stoppage labor from dispute the consequences his of willful misconduct connected with his work involving flagrant breach to duty his and to his union.” Yellow Co. Unemployment Cab v. Compensation Review, Board 170 Pa.Superior Ct. See H.J. Heinz Co. v. (1952).10 90 A.2d Unemployment Review, Board Ct. Pa.Superior (3) which, belong grade he and immediately does to a or not class of workers of stoppage, before the of the commencement there were occurs, employed premises members at the stoppage at which the in, interested, any of participating directly whom are or in the dispute. 802(d) added). (emphasis §

43 P.S. example, UnemploymentCompensation For in Oluschak v. Board of 9. r Review, 255, 263, (1960), Pa.Superio Ct. 159 A.2d Superior striking ineligible employee, Court held for benefits 402(d), ineligible Section provision, under remains under that even if presents accepted employ he evidence show that to he has alternative during ment the work he unless also establishes that he permanently employment severed his with his employer. former determining Legislature 402(e) apply, 10. In that the intended with- exception, provisions Unemployment Compensation out to all Law, the Court in Cab Yellow reasoned that: original Unemploy- in its form was added to the 23, 1942, April ment Law the Act of 60. And P.L. provision, discourage by compensa- this tion strikes financed intended funds, 402(e) part was a the law when was enacted 29, 1945, May amending denying amendment of compensation The P.L. 1145. Act unemployment discharge for due "willful mis- general clearly language, unmistakably conduct” is couched in apply Unemployment Compensation intended to to the *13 Law all of provisions, exception, including 402(d). its language without "When the plain unambiguous conveys of a statute and a clear meaning, resorting and definite there is no for to occasion the rules construction; statutory interpretation the statute must be given plain its meaning”: Cartwright and obvious Com. ex v. rel. 638, al., 645, Cartwright et Pa. 350 40 A.2d 30. Id.

289 82, (1953). ... 329, Accordingly, employe A.2d 84 “[a]n unemployment compensation his to be- may right forfeit though even the misconduct of willful misconduct ‍​​​‌​​​‌‌​‌​‌‌​​​​​‌‌​‌​​‌‌‌​‌​‌​‌​‌‌​‌​​‌‌​‌​‌‌‍cause- is related to a discharge by employer induced his which dispute.” in a v. of work involved labor Weimer stoppage Review, 176 Pa. Board Unemployment 354, (quoting 107 A.2d at 610 Yellow Cab Ct. at Superior 602). 90 A.2d at Co., Pa.Superior Ct. at temporari a claimant Accordingly, where becomes ly dispute, absent from work as a result of a labor other lockout, than a he is for unquestionably ineligible 402(d) in during under Section the time he is involved However, if termi stoppage. the claimant’s in dispute nates his which resulted employment, labor him. The stoppage longer directly the work no concerns then he fired question becomes whether was for willful misconduct. Houck v. Unemployment Compensation Review, 45 Pa. Board Commonwealth Ct.

A.2d if the Generally, partic claimant’s misconduct, ipation the work constituted willful ineligible following discharge he remains for benеfits his 402(e); otherwisé, from under his dis employment 402(d) qualification under Section is lifted and he is entitled compensation.11 The here for our con specific question presented sideration is one of first We are asked to impression. strike, decide employee participation whether which is in violation of a LRMA purportedly provision designed incidence, reduce strike constitutes willful misconduct under language impression, plain 11. As a matter of first of the statute entirely respect striking employ- would not be clear with to whether a ee, 402(d), clearly ineligible who is for benefits under Section becomes eligible unemployment compensation being for on dismissed from However, employment participating long in the strike. line of striking employee longer subject decisions have held that a is no disqualification following under Section his dismissal eligible becomes for benefits unless his dismissal was for willful 402(e). meaning misconduct within the of Section See cases cited at response by way Thеse cases elicited no or amendment infra. Legislature. clarification from the *14 290 402(e) of the Pennsylvania Unemployment Compen-

sation Law. “Willful misconduct” bemay defined as: of disregard

an act wanton or willful of the employer’s interest, rules, a deliberate violation of employer’s disregard of standards of behavior which the employer has the to of his right expect or employe, negligence indicating disregard an intentional in- employer’s terest or of duties employe’s obligations to the employer. Detterer Unemployment Compensation Case, 291, 294, 168 Pa.Superior Sopko 886; Ct. 77 A.2d Case, Unemployment Compensation Pa.Superior 168 625, 598; Krawczyk 82 A.2d Unemployment Com- Ct. Case, 361, pensation Pa.Superior 175 104 Ct. A.2d 338. v. Unemployment Compensation Weimer Board Re- of view, 354, 176 Pa.Superior Ct. at 107 at A.2d 610. Employ- ee conduct which renders a claimant ineligible for benefits 402(e) under Section must “not merely be con- willful which appears duct contrary be inter- employer’s Compensation ests.” Unemployment Board Review v. of Co., National Aluminum 519, 22 Pa. Commonwealth Ct. 522, 527, (1975) 349 A.2d 529 in (emphasis original).

Our courts have consistently held employees participate who in violation of the terms of an existing bargaining collective agreement are deemed to have engaged 402(e) willful misconduct under Section are, therefore, ineligible unemployment receive com pensation benefits if they are Progress Manu terminated. facturing Co. v. Unemployment Compensation Board of Review, 165-66, 163, 632, 406 (1962); Pa. 176 A.2d 633 v. Unemployment Compensation Weimer Board Re of view, 176 609; Ameri Pa.Superior Ct. at 107 A.2d at can Viscose Corp. v. Unemployment Compensation Review, Board 251, 253, 173 Pa.Superior Ct. 98 A.2d v. (1953); H.J. Heinz Co. Unemployment Compensa 258 Review,

tion Board 324, 329, Pa.Superior 172 A.2d Ct. 94 Com., (1953); Bays v. Unemployment Compensa Review, tion Board 421, 423, 62 Pa. Commonwealth Ct. Com., v. (1981); 437 A.2d Moran Unemployment Ct. Review, 42 Pa. Commonwealth Board those approve We 257, 200, 400 A.2d decisions. existing bargaining is no there

Conversely, where *15 stoppage that a work held the courts have agreemеnt, making misconduct considered willful is not employees compensation benefits unemployment ineligible strikers Com., Unemployment Corp. v. if terminated. Birdsboro Ct. Review, Pa. 59 Commonwealth Board Compensation (1981). & 361, Sprague n. 4 See 4, A.2d 363 466 n. 430 Board Henwood, Unemployment Inc. v. (1965). A.2d 269 215 Review, Ct. Pa.Superior case, bargaining collective parties’ In the instant stop employees’ to the expired prior had agreement a not breach Therefore, strike was employees’ page. reason, not, illegal. How thus, for that and, was

contract notice thirty-day ever, give failure their union’s an 8(d) appar LRMA constitutes Section required by argues The employer law.12 of federal labor ent violation is appar in a strike which employees’ participation that the deemed “willful must be under federal law “illegal” ently Com Unemployment the Pennsylvania misconduct” under directs our atten disagree. Appellee Law. We pensation However, position. Houck, support .its supra, tion to notify the Federal Mediation appears that if a union does not 12. It agencies having jurisdic any mediation Service and state Conciliation compel question, modification of dispute in a strike to tion over the subject to illegal law and the strikers are under federal the contract Labor Relations Workers v. National dismissal. United Furniture denied, Board, (D.C.Cir.), S.Ct. 379 U.S. F.2d 738 cert. 5, however, who workers n. 13 L.Ed.2d 44 As noted at gain from their give then strike to concessions notice and Thus, analysis subject replacement strikers. as economic are also "illegal” is not "legal” and strikes under federal law in terms of distinguishes economic particularly helpful. also between Federal law roughly analogous to distinctions are and unfair labor strikes. These interpreting Section and “lockout" as used those between "strike” Since, however, Unemployment Compensation Law. of our 402(e) and not a work under Section this is a willful misconduct case 402(d), distinctions are not the federal case under Section greatly material to this case. distinguishable case is on clearly its facts from the one now before us.

There, struck in employees support of their efforts to have their employer recognize particular union local as their bargaining exclusive representative. time, At the petition to so certify the union was pending before the Pennsylvania Labor Relations Board. The employees were advised immediately that further unauthorized absences would result in dismissal. Several days later the employer discharged addition, the strikers. In the employer rejected the employees’ subsequent unconditional offer to return to work. Commonwealth affirmed Court the Review Board’s determination of under ineligibility 402(e) conclud- ing that:

Willful misconduct includes a disregard of standards which an employer right has a to expect of an employee. *16 Where a method exists for conclusively establishing rights which exist by contract, virtue of statute or we that, faith, beliеve absent bad an employer has ordinarily a right to expect his employees to utilize such methods rather than to resort to a disruptive strike.

45 Pa. 589-90, Commonwealth Ct. at 405 A.2d at 1064 (citations omitted). In Houck the strike was unnecessary as the employees could have achieved their goal by comply- ing with the certification procedures prescribed by Pennsylvania Act, Labor Relations 43 P.S. 211.1 et seq. More significantly, employees chose to disregard their employer’s directive to return to pain work on of dismissal. We considered the employees’ refusal to return to work a flagrant disregard of their employer’s interests.

In both case, Houck and the instant the striking employees were not bound by terms of a collective bargaining agreement. However, unlike the employees in Houck, the appellants here had no available statutory pro cedures by which could they achieve their demands. The means, stoppage was the only at their disposal by which they could show supрort for the position union’s at the bargaining Moreover, table. the employer at no time in the work continued participation that appellants warned here the Finally, in termination. result stoppage could which would language contains no apparently contract itself do language, of such we In the absence give warning. that precluded from discharged workers were not believe the their union’s fail- compensation unemployment law, that a notice, federal required only by ure to give beyond not extended certain would be contract for a term that term. meaningful there is no argues

The that appellee disregard in a strike distinction participation between statute and a strike which procedures state prescribed by To hold disagree. contravenes a federal statute. We labor of federal law in a strike in contravention participation 402(e) would constitutes misconduct under Section willful case, an courts, in to dеtermine whether require every and, so, if in fact occurred alleged infraction of federal law on account of the illegal whether the strike must be deemed federal attempt apply infraction. such to construe Any impermissible constitute an law these situations would of the National regulatory intrusion into the jurisdiction of the LRMA. Board under Section 8 Labor Relations In Co. v. New York State Telephone New York Labor, 440 U.S. 99 S.Ct. Department (1979) of the court (plurality opinion, judgment L.Ed.2d 553 Stevens), the announced Mr. Justice United States Su authorizing held that a York statute preme Court New strikers, did not compensation benefits unemployment fa bargaining policy impermissibly conflict with collective *17 in the voring the free forces established play economic and, therefore, did not violate the federal labor statutes Art. Clause.13 United States Constitution Supremacy See Co., Unemployment Compensation Review v. Sun Oil 13. In Board of 977, 589, dismissed, (1978), appeal 440 U.S. 99 476 Pa. 383 A.2d 519 Court, 1782, (1979), perti a review of S.Ct. this after 60 L.Ed.2d 237 law, challenge rejected preemption to Section nent federal holding Supremacy Clause provision did not violate the that the allowing ‍​​​‌​​​‌‌​‌​‌‌​​​​​‌‌​‌​​‌‌‌​‌​‌​‌​‌‌​‌​​‌‌​‌​‌‌‍unemployment compensation to “locked out” em benefits ployees denying Gladieux while the same benefits to strikers. Accord 294

IV, cl. important 2. More for our purposes is the dictum contained in the That is opinion. directly applicable dictum to the case hereunder review: contention the NLRA at reject petitioners’

[W]e least States from awarding forbids in participants illegal strikes. See Communication (New Telephone Co.), Workers American York 208 (1974) N.L.R.B. (declaring of the strike part involved in this case Because such a rule would illegal). inevitably in ruling involve the on the legality States of strikes 8, under precisely it would invite the harms that the pre-emption doctrine is avoid. designed to at Id. n. at (emphasis original). S.Ct.

Furthermore, our determination that the employ-' striking ees’ the matter hand activities at were not willful misсonduct is unfair or impermissibly not discriminatory. A reading disqualification provisions the Unem ployment Compensation Law that the Legisla establishes ture intended to treat labor differently activities than indi vidual conduct or other activity. concerted

For 402(a) example, provides that an employe shall be for ineligible compensation any for week:

In which unemployment failure, his is due to his with- cause, out good either to work apply suitable ... or accept when to him by suitable work offered the employ- ment officer or any employer, irrespective of whether or not such work is in as this “employment” defined in act.... this shall cause disqualifica- ... not [HJowever tion waiting of a week or benefits ... when is offered by his and he not required accept the offer to the pursuant terms of labor-management contract or agreement, or to an pursuant established employer plan, or program policy____ Services, Review, Unemployment Food Inc. v. Board of 479 Pa. 388 A.2d n. 679 n. 2 The decisions in cases, Co., these Telephone dispositive and in New York are raised, preemption sponte, by sua issue Commonwealth See Court.

supra p. 282.

295 802(a) must be Section 802(a) (Supp.1983-84). P.S. 43 § 4(t) defines “suitable which with conjunction read that: states and which work” in which ... be deemed suitable work shall

[N]o vacant, strike, lock- due to a directly is offered position out, dispute---- other labor or Quaker Com., 753(t). Unemploy- v. See Oats

43 P.S. § Pa. Review, 65 Common- Board Compensation ment (1982); Foundry 33, 442 A.2d 367 Lebanon Steel wealth Ct. Review, Board Com., Compensation v. Unemployment 441, 34 Similar- 413 A.2d 50 Pa. Ct. Commonwealth an employee 402(b)(1), provision disqualifying ly, Section words, that an states, in many so voluntarily quits, who stop- to a work from work due individual absent employee deemed not be dispute may of a labor page existing because cause. 43 P.S. good without employment to have left his 802(b)(1). law, Unemployment including our Under Law, expressly and lockout are the strike Compensation in the econom weapons legitimаte bargaining as recognized employee. Mackin employer tug-of-war ic between Div., v. Unemployment Bliss Co. tosh-Hemphill E.W. Review, Pa.Superior 205 Ct. Board each (1965). During tug-of-war that 495-96, 211 A.2d at the the other while concessions from side tries win dispute will maintaining expectation time same workplace at the will operations resolved eventually be strike, prohibi in a absent return to normal. Involvement not agreement, may bargaining in a valid tion contained of behavior as a of standards disregard be viewed properly have the expect. Workers right an has a which and, they consequently, in a lawful strike14 right engage Act, Pennsylvania Relations Labor 14. See Sections 6 and 37 211.5, 1, 1937, (codified at 43 P.S. § P.L. No. 294 Act of June 211.37, [1964]). Philadelphia v. respectively See also Tate 211.6 and 490, 498, ("a Co., (1963) A.2d Transportation 410 Pa. strike, in a peaceful picketing, conducted manner peaceful like lawful down, though even it shuts bank- purpose lawful lawful company or firm which is struck and rupts puts business the or out of retain a expectation reasonable of continued employment *19 the during work stoppage. Subsequent loss of employee status is not in real any sense voluntary. we Accordingly, find no statutory policy considerations which militate our against holding that today appellants were not dis- charged from employment on account of willful misconduct. Indeed, the statute, unemployment compensation as a whole, appears require such treatment. holding

Our is a today very narrow one which will not in apply most disputes. labor Specifically, employees are still ineligible for compensation benefits if they are dismissed in participation a wildcat strike or one that otherwise the where, contravenes laws of this state or during strike, the course of a legal the directs his employees to return to work or suffer dismissal. In these two situations the errant employees have no reasonable expectation of continued employment and it is nоt unfair to conclude, when their improper labor activities culminate in discharge, that their unemployment has been voluntarily induced.

The order of Commonwealth Court is reversed and the orders of the Unemployment Compensation Board of Re- view are reinstated.

LARSEN, J., files a Concurring Opinion. ZAPPALA, J., files a Concurring Dissenting Opinion. NIX, C.J., files a Dissenting Opinion.

LARSEN, Justice, concurring.

I agree with the both Majority Opinion Dissenting Opinion that appellants are entitled to com- unemployment pensation and therefore concur in the result. though even it also causes irreparable damage enormous and hundreds or persons thousands of innocent who are not involved in strike”) (emphasis original).

the in dissenting. ZAPPALA, Justice, concurring and opinion dissenting legal analysis I the join While with him as to Nix, disagree I Mr. Justice authored Chief My terminated. employer-employee status when the Unemployment Com- the indicates that .the record review that employ- found a fact Board of Review as pensation Therefore, I find it July terminated on 1980. ees were concur to remand for determination unnecessary majority. the result reached Justice, dissenting.

NIX, Chief fails to analysis precisely majority’s In my judgment upon facts which resolution operative identify *20 fact, i.e., the Moreover, critical issue should turn. a this be- relationship point underlying employment in time the unit Penflex, bargaining of the Inc. and the members tween terminated, record does not the appear herein involved clearly us.1 It is the record establishes my opinion before Although appears parties able to 1'. it from this record that the were not upon bargaining agreement, the before agree a new record collective majority inadequate to when that fact occurred. The us is determine may relationship suggests employment the of the that termination July then 1st notified the have occurred when the striking employees on However, facts there are other of their dismissal. negotiations positively both in the record which еstablish that beyond July employment 1st. prospect of continued continued future employ- example, the reflects contacts between the For record further 3rd, 7th, during management July July the week ees and July on stipulation persuasive is found in the record 8th. Most is a that Anderson, (one claimants) Appeal No. Howard of the of In Re: W. 7, 80-1-C-478, during hearing referee on November 1980 before a it is wherein noted: discussion, attempt going stipulate to we’re As a result that employees were of the facts that all the claimants some basic Inc., Penflex, bargaining unit which was and all were members of represented which was the Plumber's Union Local union agent bar- bargaining with That collective for the unit Penflex. company, agreement

gaining between union and had been effect Negotiations had expiration had an date of June 1980. which negotiations company, which union and the been held between the However, agreement to continuing. the new the terms of are bargaining agrеement been expiring have not collective succeed agreed upon. added). (JC1) (emphasis Id. at

that the work was initiated employees on July consequently under section Law, Unemployment Compensation Act of December Ex.Sess., (1937) ‍​​​‌​​​‌‌​‌​‌‌​​​​​‌‌​‌​​‌‌‌​‌​‌​‌​‌‌​‌​​‌‌​‌​‌‌‍2897, amended, Second P.L. as 802(d), P.S. not they were entitled to unemployment bene- fits during period of that dispute. labor

At some later point the underlying employment relation- Penflex, ship between Inc. and the bargain- members of this ing unit terminated. From the moment of that termination the former would then employees eligible have been for benefits, gained unless had they employment elsewhere. I Although am of the view that the bargain- members of the strike, ing participate unit did in a rendering thus them strike, ineligible during that I share with the that their majority opinion activities did not constitute willful misconduct that would bar their under recovery 402(e) section once the underlying employment relationship 802(e). was severed. 43 P.S. § I therefore remand would the matter to the Unemploy- ment Board of purposes Review for of deter- mining when the expectation of continued employment end- ed and the underlying employment relationship was sev- ered. I would direct the Board to award benefits from date, unless other impediments, present, precluded then such an award.

It is not unusual in the area of labor-management rela- tions that in differences arise the negotiations for collective bargaining agreements. Unfortunately there are times When those differences aré Fortunately, irreconcilable. in most resolved, instances are a they agreement new is reached and the differences are accommodated. The avoid- of ance a work stoppage during these and traumatic trying in periods However, is the best interests of all. are there situations where a strike or a lockout is the vehicle only capable Nevertheless, of encouraging negotiations. serious everything expectation From abоve it is clear there was an of employment long beyond July

continued future the date 1st seized upon by majority. the design to its rules society in interest it is the best encourage the of our activities to segment this governing a without work disputes resolution of these importantly, per- Most unemployment. the concomitant is to be relationship employment manent rupture obviously was legislature The avoided whenever possible. designing in a scheme societal objectives mindful of these has judiciary The for the benefits. payment employment provisions in those equal responsibility interpreting an design. full force effect to that give upon to turn appears in this case majority’s analysis The employ- in employer response the action of the taken doing, In so it obfuscates in a strike. participation ees’ in case. I critical issues this Under consider to be the what has to between facts a clear distinction be drawn these sets the terms and contract which bargaining collective employment the underlying employment conditions Moreover, fails to consider majority relationship. to the facts of this case. application rule2 and its

Vrotney create, does not nor agreement bargaining A collective rela- destroy employer-employee termination does its Rather, agreement merely bargaining a collective tionship. that govern and conditions which will the terms establishes In Case during agreement. the life of the J.I. relationship 576, 88 N.L.R.B., L.Ed.2d 321 U.S. S.Ct. Co. v.

(1944), Supreme Court observed: the United States repre- and the bargaining

Collective between union, in an accord unit, results usually sentatives of a hiring pay and work and govern as to terms which will however, not, a contract unit. The result cases; no has a job by in rare one except employment ordinarily individual obligation any reason of it and no The negotiations into existence from it alone. comes result what has often management union and between Case, Vrotney Unemployment Compensation See 400 Pa. 444- 2. 163 A.2d 93-94 *22 300

been called, a agreement trade rather than a contract of employment.

Id. at 334-35, 64 at 578-79. S.Ct. Accord, Amalgamated Street, Association Electric of Railway and America, Motor Employ. Coach Div. 85 v. of Pittsburgh Co., Railways 219, 223, 734, 142 393 Pa. A.2d 736, cert. denied, 882, 123, 358 79 112 U.S. S.Ct. 3 L.Ed.2d (1958). Thus, during a work stoppage precipitated by the inability of the parties negotiate a new collective bargain ing agreement prior to expiration old, the the employ er-employee continues; relationship actual only work has ceased. From the expiration of the bargaining collective agreement, during period the of negotiation of the new contract, the underlying employment relationship continues and is restructured terms of the new collective bargaining agreement that results.

By promoting continuation of the commercial enterprise during the period expiration between of a bargain collective ing agreement suсcessor, and the negotiation of its applica tion of Vrotney commercial, rule avoids economic and social dislocation that invariably ensues from produc tion interruptions. Vrotney Unemployment Compensa Case, tion 440, 444-445, 400 91, (1960). Pa. 163 A.2d 93-94 Accord, Commonwealth, Fairview School District v. Un employment Review, Compensation Board 539, 499 Pa. of Borello v. Unemployment Compensa (1982); 454 A.2d 517 Review, tion Board 607, (1980); 490 Pa. 417 A.2d 205 of Unemployment Compensation Board Review v. Sun Co., dismissed, Oil (1978), 476 Pa. appeal 383 A.2d 519 440 (1979); U.S. Philco S.Ct. L.Ed.2d 237 Corporation v. Unemployment Compensation Board of Review, Pa. A.2d 454 Vrotney fosters maintenance of the status quo established under the terms expiring conditions of the contract during the negotia period. tion As we recently emphasized in Local United Assoc. Journeymen Apprentices Plumbing Pipe-fitting Industry Commonwealth, v. Unemployment Compensation (Trane), Board Review

301 for (1984), test determin- 480, 480 A.2d 1000 the sole Pa. 505 a for or strike stoppage a a lockout work ing whether compensation to unemplоyment of entitlement purposes first refused side, management, union or is which Trane, su- quo.3 under the status operations to continue 484, A.2d at Pa. at 480 1002. 505 pra, from unfortunately of this Court deviated majority A v. High Common rule in Vrotney’s easily applied clear and Review, Board wealth, Compensation Unemployment of (1984), a 379, embracing theory 479 A.2d 967 which Pa. 505 for the initial the work shifting responsibility of permits to restore the on the of offers subsequent basis stoppage As out Justice Larsen his dissent quo.4 pointed status in High, Vrotney easy was based its acceptance initial of the standard on

3. The at the time it application on the administrative level and same Vrotney designed policy was to the basic concerns involved. served encourage relationship the of the under terms continuation agreed parties during period previously the that difficult to agreement expiration the of the old and before the new between agreed upon. employment of had been Fairview School terms Pennsylvania, Unemployment Compen v. Commonwealth District sation Board of 547, 521; 546, Review, supra, 454 at 499 Pa. at A.2d of Co.,supra, UnemploymentCompensation Board Review v. Sun Oil of 522; 595, Unemployment v. 476 Pa. at A.2d at Borello 383 cf. Review, supra, Pa. at A.2d at Board 490 417 of Moreover, (1980). the units involved in the administrative compensation eligibility difficulty re decision have little would departed solving question the simple the factual of who first from agreement. expired Unemployment Compensation terms Co., at at supra, Board Review v. Oil 476 Pa. 383 A.2d Sun of requirements complicate we ascer 522. Once that decision with taining good justification party altering the or the of a the faith terms, infinitely more we create a standard difficult former administer, being corresponding such a without a benefit derived for modification. Apprentices Journeymen Local Plumbing Assoc. and United Commonwealth, Industry Unemploy Pipe-fitting and v. 486-487, Review, A.2d 1003- ment Board 505 Pa. analysis majority ignores High decision in 4. We notice that the its employеd employees If it would have been in this case. ineligible had been July have they when refused to work on 1st would accept regained eligibility offer to when the refused to their July return on 3rd. thus, Responsibility for work stoppage, the deter- mination of whether the is a or a strike lockout is established at its Actions inception. taken after the cessation of work erase activity cannot the initial respon- place sibility positions in the parties they previ- ously otherwise, If occupied. it were for responsibility work stoppage would be subject repeated change. A lockout on Monday could be a strike on Wednesday, a lockout on again Friday, and so on and so forth. This would to encourage parties tend jockey continually *24 position the of expense negotiations at sincere toward a settlement____ Fixing responsibility at the outset forces parties the to act responsibly, sincerely good faith at the a stages potential initial of work stoppage. Id., at (Larsen, Pa. 479 A.2d at J., 972-73. Nix, dissenting, joined C.J., J.) Zappala, Thus, the salutary rule of Vrotney, heretofore consistent- ly applied Court, this should remain the exclusive test determining for entitlement to benefits.

Vrotney, course, to situations the applies where under- lying employment relationship continues to exist. In a situation the where employer-employee relationship is total- following severed ly expiration the of a bargain- collective ing agreement, the person seeking is clearly “un- employed” as that term is defined in section 4 of the Act. 753(u) (1964). 43 P.S. Whereas the rule should Vrotney applied be in such a manner that the initial responsibility the stoppage for work controls the status of the employee for unemployment compensation purposes that during peri- where continues, od the employment relationship different situation is presented the moment the contract underlying is In employment severed. that employees instance thе are and their unemployed status for unemployment compen- sation is purposes properly at that point reevaluated. Ab- a showing sent the severance the employment resulted the relationship from willful on misconduct the he or eligible she for part employee, would be 402(d) Vrotney presuppose the con- benefits. Section underlying employer-employee relationship tinuation of the do not extend to individuals who are no longer and thus employed.5

In the case the status first quo disrupted by instant was when withheld their services and set employees they up lines, union, picket contrary to the advice of their on July Vrotney 1980. Thus under work was strike and the are not entitled to benefits for the employees period during which refused to work. Their they July offer to return to and its rejection by Here, however, should not affect that determination. at point negotiations some further terminated and the underly- ing employment relationship ended. Such condition .altеred would then a reevaluation of the justify claimant’s status unemployment compensation purposes. record,

On this it cannot be determined precisely when negotiations ultimately prospect were abandoned and a return to work no existed. A remand longer Board for that purpose proper. As of that time section *25 no longer was since the cessation of work was applicable, rather, no due longer dispute, labor but from that resulted point, from the severance of the rela- employment Further, ‍​​​‌​​​‌‌​‌​‌‌​​​​​‌‌​‌​​‌‌‌​‌​‌​‌​‌‌​‌​​‌‌​‌​‌‌‍I tionship. agree with the conclusion majority’s that this record does not showing establish a that discharge resulted from willful misconduct as described 402(e). subsection I

Accordingly, would remand with instructions instant should determined to entitled appellants be be it employment from date that is found that the ceased, if relationship they qualified otherwise for benefits. unemployment "discharge" 5. Where results from or severance from employment, analysis Vrotney inapplicable by definition be analysis only "unemployment cause that is utilized where is due to dispute. . . .” of work which exists because of a labor 43 P.S. 802(d).

Case Details

Case Name: Penflex, Inc. v. Bryson
Court Name: Supreme Court of Pennsylvania
Date Published: Dec 7, 1984
Citation: 485 A.2d 359
Docket Number: 70 Eastern District Appeal Docket, 1983
Court Abbreviation: Pa.
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