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UNITED STATES STEEL CORPORATION v. COMMONWEALTH PENNSYLVANIA (03/07/85)

decided: March 7, 1985.

UNITED STATES STEEL CORPORATION, PETITIONER
v.
COMMONWEALTH OF PENNSYLVANIA, UNEMPLOYMENT COMPENSATION BOARD OF REVIEW, RESPONDENT



Appeal from the Order of the Unemployment Compensation Board of Review in the case of In Re: Claim of Arthur M. David et al., No. B-218790.

COUNSEL

Dawne E. Sepanski, for petitioner.

Charles G. Hasson, Acting Deputy Chief Counsel, for respondent.

Judges MacPhail, Doyle and Barry, sitting as a panel of three. Opinion by Judge Barry. Judge Williams, Jr., did not participate in the decision in this case.

Author: Barry

[ 88 Pa. Commw. Page 136]

This appeal results from an order of the Unemployment Compensation Board of Review (Board) which reversed a decision of a referee denying benefits for two weeks to 537 claimants.

United States Steel Mining Company, Inc., a subsidiary of United States Steel Corporation (employer), operates the Maple Creek Mine. On June 22, 1982, the employer notified officials of Local 1243 of the United Mine Workers (the union), the bargaining representative of the claimants, that the mine would be shut down on June 23, 1982. At that time, the employer informed the union that its members could expect to be recalled on August 9, 1982.

Pursuant to a labor management agreement between the employer and the union, a contractual vacation

[ 88 Pa. Commw. Page 137]

    period for all union members had been scheduled for the weeks beginning July 11, 1982 and July 18, 1982. The claimants' vacation pay exceeded their weekly benefit rate plus their partial benefit credit.

The claimants were not recalled on August 9, 1982. The employer informed the union officials on August 10, 1982 that the recall had not occurred because of economic conditions and no orders for coal. The employer estimated it would recommence operations on August 30, 1982, when, in fact, 300 of the claimants were recalled to prepare the mine for operation. All employees were recalled by September 7, 1982.

The Office of Employment Security (OES) denied benefits for the two weeks of vacation based on Section 404(d)(ii) of the Unemployment Compensation Law, Act of December 5, 1936, Second Ex. Sess., P.L. (1937) 2897, as amended, 43 P.S. ยง 804(d)(ii) (Supp. 1965-83), which provides:

Notwithstanding any other provisions of this section each eligible employe who is unemployed with respect to any week ending subsequent to July 1, 1980 shall be paid, with respect to such week, compensation in an amount equal to his weekly benefit rate less the total of . . . (ii) vacation pay, if any, which is in excess of his partial benefit credit, except when paid to an ...


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