175 Pa. Super. 402 | Pa. Super. Ct. | 1954
The decision and order of the Unemployment Compensation Board of Review is reversed. The opinion of the Court will be filed at a later date.
Opinion by
The question in this appeal is whether 642 employes of the Philco Corporation are entitled to unemployment compensation benefits for any part of the vacation period between July 28, and . August 10, 1952, when that employer shut down its “plant for vacation purposes. It is agreed that the claim of Christine E. McCullough in the proceedings before the .unemployment compensation authorities was typical both on the facts and the law, and is determinative of all the above claims.' EÍer last day of 'employment immediately
All of tbe claimants are members of one or tbe other of locals 101 or 102 of Radio and Television Workers Union, IUE-CIO. These unions were tbe collective bargaining agents for tbe claimants as to conditions relating to their employment. Tbe subsisting agreements between Pbilco Corporation and each of tbe locals are identical in all material respects and provide for vacations with pay for various classes of employes based upon seniority in service.
The Board in construing the above provision of Section 6 of the collective bargaining agreements held that “the vacation provisions here merely state that the company may, at its discretion, shut down its plants for a vacation period; albeit they will make every effort wherever practical to do so.” In effect the holding was that the claimants’ unemployment during the vacation period in this case was involuntary due to a layoff by the company, and not to a shutdown of the plant agreed to by the union on behalf of its members. Accordingly, the Board concluded that claimants were not disqualified under §402(b) of the Act. The Board, based on its 4th finding, also concluded that, claimants on registering, were available for suitable work and accordingly were not disqualified under §401 (d). In effect the Board in awarding unemployment compensation, held that claimants’ eligibility for benefits was ruled by our decision in Golubski Unempl. Compensation Case, 171 Pa. Superior Ct. 634, 91 A. 2d 315. We are unable to agree with the conclusions of the Board. It is clear that claimants’ unemployment during the vacation period was voluntary and therefore not compensable under §402 (b) of the Act.
Under our system of private enterprise an employer in general may operate his business as he sees fit, in the absence of restrictions imposed in a collective bargaining agreement. One of an employer’s inherent rights is to determine vacation policy in his own business particularly as to whether vacations shall be on a staggered basis or whether the plant shall be shut down so that the employes may enjoy their vacations all at the same time. Consequently from the very fact that there are specific provisions in the present agreements for a vacation shutdown, it is a necessary inference that the union wanted to eliminate company discretion in this respect. In this instance when the unions in their agreements with the employer, after setting up schedules as to eligibility of employes to vaca
The employes are protected against a decision of the employer, based upon whim or selfish motives by
Moreover in a real sense claimants were not unemployed and for that reason their idleness during the vacation period was not compensable. They were not laid off; there was no termination of employment nor even suspension of the employer-employe relationship during the period. A vacation is a period of freedom from duty, not an end of employment. Dauber’s Case, 151 Pa. Superior Ct. 293, 30 A. 2d 214. Their continued employment was insured by their bargaining agreements; their names were still on the pay-roll even though they did not receive vacation pay. The contract of employment persisted, under which they returned to their work at the end of the vacation period without loss of seniority. The agreements in Article 2 provide for a work-week of 40 hours of 8 hours per day, from Monday through Friday. The scheduled vacation period was no different in principle from the normal uncompensated week-end shutdown from Friday to the following Monday, incident to the 40-hour week.
This appeal in every aspect is ruled against the claimants by Mattey Unemployment Comp. Case, 164 Pa. Superior Ct. 36, 63 A. 2d 429, and not by the ColubsJci case, supra. In the Mattey case, as here, the shutdown was for the benefit of the employes and their temporary unemployment was voluntary; in the Golubslci case the unemployment was involuntary and for the benefit of the employer.
These are the reasons for our order of March 14, 1954, reversing the decision of the Unemployment Compensation Board of Review.
The collective bargaining agreements, as found by the Board, provided: “Article 4. Section 3. Vacation shall apply to all hourly rated employees on the active payroll for twenty five (25) weeks or more of the period from June 30th of the prior year to June 30th of the current year. The vacation pay shall be based upon the following schedule of seniority:
Seniority Vacation
Six (6) months to three (3)
years Forty (40) hours
Three years and over Eighty (80) hours
Fifteen years and over Eighty (80) hours plus one
week’s additional pay
Employees who have over three (3) years seniority shall qualify for vacation if they have been on the active payroll for twenty (20) weeks or more of the above period . . . etc., etc.”
In section 3 of Article 5 it is provided: “Where practical the Company will not lay off employees until work falls below thirty-two (32) hours per week ...”