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Temple University Health System v. Unemployment Compensation Board of Review

Commonwealth Court of Pennsylvania

June 4, 2013

Temple University Health System and Temple University Hospital, Petitioners
v.
Unemployment Compensation Board of Review, Respondent

Argued: May 16, 2013

BEFORE: HONORABLE DAN PELLEGRINI, President Judge HONORABLE RENÉE COHN JUBELIRER, Judge HONORABLE ROBERT SIMPSON, Judge

OPINION

DAN PELLEGRINI, President Judge

Temple University Health System and Temple University Hospital (collectively, Employer) petition for review of the orders of the Unemployment Compensation Board of Review (Board) affirming the decisions of a referee that Claimants[1] are not ineligible for benefits under Section 402(d) of the Unemployment Compensation Law (Law)[2] relating to the denial of benefits due to work stoppage caused by a labor dispute. We affirm.

Employer instituted a tuition remission/reimbursement program with Temple University prior to the Union's representation of Claimants in 2003 that applied to all bargaining unit and non-bargaining unit employees. The collective bargaining agreement (CBA) that expired in 2002 stated that tuition reimbursement would be granted in accordance with Employer's policy. Another CBA, effective October 1, 2003, through September 30, 2006, stated that full-time employees would be eligible for tuition reimbursement in accordance with Employer's policy. Effective January 1, 2004, Employer changed its tuition reimbursement policy to restructure the benefits for employees and dependents based on the employee's date of hire and to end tuition remission for new employees. On March 9, 2006, during the effective period of the 2003 CBA, Employer issued a revised tuition reimbursement policy which stated that the policy does not constitute an express or implied contract and that Employer could modify, alter, delete, suspend or discontinue the policy in its sole discretion with or without notice to its employees.

The Union represented two constituent unions, the Temple University Hospital Nurses Association (TUHNA) and the Temple University Hospital Allied Professionals (TAP) when negotiating the CBAs for the period of October 1, 2006, to September 30, 2009. The 2006 CBA between the TUHNA and Employer stated that, effective January 1, 2004, full-time employees were eligible for tuition remission at Temple University for up to six credits per semester (except for the Schools of Dentistry, Law, Medicine or Podiatry) and for tuition reimbursement at other schools in accordance with Employer's policy; that part-time employees were eligible for tuition reimbursement in accordance with Employer's policy; that the dependent children of full-time employees hired before January 1, 2004, were eligible for up to ten semesters of tuition remission at Temple University or tuition reimbursement at other schools in accordance with Employer's policy; and that the dependents of full-time employees hired after January 1, 2004, were eligible for tuition reimbursement in accordance with Employer's policy. (Reproduced Record (R.R.) at 258a.)

In March 2009, Employer instituted a revised tuition reimbursement policy that restricted reimbursement to full-time employees and discontinued reimbursement for part-time employees and the dependents of full-time employees that was specifically provided in the 2006 CBAs. The Union notified Employer that it opposed the revision and filed an unfair labor practice charge against Employer with the Pennsylvania Labor Relations Board (PLRB) under the Public Employe Relations Act (PERA)[3] on March 12, 2009. The Union employees continued to work under the existing terms and conditions of employment after the CBAs expired on September 30, 2009.

On October 6, 2009, after a hearing, a PLRB Hearing Examiner issued a proposed decision and order finding that Employer's changes to the policy constituted an unfair labor practice in violation of Section 1201(a)(1) and (5) of the PERA, [4] and Employer appealed. On January 19, 2010, the PLRB issued a Final Order rejecting Employer's and the Union's exceptions and affirming the Hearing Examiner's proposed decision. The PLRB determined that the Union did not waive its right to negotiate employee tuition reimbursement, a mandatory subject of bargaining, even though it did not grieve or file unfair labor practice charges regarding Employer's unilateral changes to the policy prior to the 2006 CBAs.[5]The PLRB also rejected Employer's claim that it had a sound arguable basis that it could unilaterally discontinue parts of the tuition reimbursement program because the CBAs stated that reimbursement shall be in accordance with Employer's policy, finding that this went to the manner of reimbursement and not what was going to be reimbursed. The PLRB directed Employer to immediately reinstate the tuition reimbursements that were in effect prior to the March 2009 revision and to immediately make the adversely affected employees whole for the benefits that they would have received under the former policy. Employer appealed the PLRB's Final Order to this Court. On March 16, 2010, the PLRB rejected Employer's request for a stay of its Final Order.

On March 18, 2010, as required by the CBA, the Union gave Employer a ten-day notice of its intent to initiate a work stoppage on March 31, 2010, unless an agreement was reached. On March 26, 2010, the Union notified Employer that the PLRB's order to restore the discontinued part-time employee and dependent tuition benefit constituted a restoration of the status quo ante of the terms and conditions of its employees' employment, and that Employer's failure to comply with the PLRB order was a disruption of the status quo. The Union also notified Employer that it was prepared to suspend any concerted action and to continue working under the current terms and conditions of employment for a reasonable time if Employer complied with the PLRB's Final Order by reinstating the tuition reimbursement benefit. That same date, Employer notified the Union that it did not violate the status quo and that it intended to pursue its appeal of the PLRB's Final Order and request a stay from this Court.

The Union initiated a work stoppage on March 31, 2010, maintaining a picket line in front of Employer's premises and Claimants did not report to work. The work stoppage ended on April 29, 2010, following a negotiated settlement and Union workers returned to work.[6] Employer discontinued its appeal of the PLRB's order in this Court following the settlement. Claimants filed claims for benefits for the period of the work stoppage, the UC Service Center determined that Claimants were not ineligible under Section 402(d), and Employer appealed.

Following a hearing, the Referee affirmed the Service Center's determinations, concluding that the work stoppage initiated by the Union on March 31, 2010, was a lockout and that Claimants were not ineligible for benefits under Section 402(d) of the Law. Employer appealed and a majority of the Board[7]affirmed the Referee's decision.

The Board noted that the courts use a maintenance of the status quo test[8] in determining whether a work stoppage is a strike or a lockout, and that the Union met its burden of proving that Employer changed the status quo and that the work stoppage in this case was a lockout, giving the same reasoning as the PLRB. The Board rejected Employer's claim that it possessed unfettered discretion to alter or eliminate the tuition policy, finding that a more reasonable interpretation of the CBAs is that Employer had the right to determine how the tuition reimbursement would be paid or when it would be paid, rather than its total elimination. The Board also rejected Employer's claim that the Union waived its right to challenge Employer's changes. While the CBA language gave Employer an arguable basis for modifying the manner in which the benefit was disbursed, the Board noted that for Employer to possess the "[t]he authority to eliminate the tuition reimbursement for part-time employees and dependents of full-time employees, the 'sole discretion' language, or similar language, must have been in the CBAs rather than in [Employer]'s internal tuition reimbursement policy." (Board Opinion at 6.)

The Board also found that the Union had continued working for a reasonable period following Employer's change in the status quo, noting that the Union did not initiate a work stoppage until after the 2006 CBAs had expired; the PLRB Hearing Examiner decided the unfair labor practice charge and ordered Employer to reinstate the tuition reimbursement program as it previously existed; the PLRB issued its Final Order dismissing Employer's exceptions and affirming the Hearing Examiner's order; and the PLRB denied Employer's request for a stay of its Final Order. The Board concluded that Employer never implemented the PLRB order, thereby restoring the status quo so Employer was responsible for the March 31, 2010 work stoppage. As a result, the Board determined that the work stoppage was a lockout and Claimants were not ineligible for benefits under Section 402(d) of the Law. (Board Opinion at 7.) Employer then filed the instant appeal.[9]

In this appeal, [10] Employer claims that the Board erred in determining that Claimants were not ineligible for benefits under Section 402(d) of the Law. Specifically, Employer contends that the work stoppage was a strike because the status quo must be deemed to be the period following the expiration of the 2006 CBAs, after Employer had modified the tuition reimbursement policy, and that Claimants disrupted the status quo at that time by going on strike; and Claimants did not offer to work under the pre-existing terms and conditions of employment for a reasonable period of time following their strike because they conditioned their return on Employer's compliance with the PLRB's Final Order thereby disrupting that status quo. However, Employer's claims in this appeal are based upon the faulty premise that the status quo, i ...


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