United States Steel Corporation v. Unemployment Compensation Board of Review, [J-20A-V-2004] (PA 9/22/2004)
| Decision Date | 22 September 2004 |
| Docket Number | [J-20A-V-2004]. |
| Parties | UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: WAYNE R. WILSON. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: JOHN H. BRILHART. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: GARY S. KUKLER. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: STEPHEN A. WILLIAMS. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: CHARLES L. GOURN. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: ROBERT J. COLABIANCHI. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: DANIEL J. KOON. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: JOHN P. KISIELNICKI. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: LEROY J. DAVIS. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: RICHARD W. HANNEGAN. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: LEONARD C. STOKES. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW APPEAL OF: JAY P. GRAFT. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW APPEAL OF: JAMES GRAJCAR. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: RICHARD J. HOUGH. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: WILLIAM C. STOFFEL. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: THOMAS J. NORMAN. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: ANTON J. KOTAR. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: DANNY J. JANCUSKI. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: SAMUEL L. FONNER. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: GARY L. FINE. UNITED STATES STEEL CORPORATION (USX CLAIRTON WORKS) v. UNEMPLOYMENT COMPENSATION BOARD OF REVIEW. APPEAL OF: JOSEPH A. JENCO. |
| Court | Pennsylvania Supreme Court |
The central issue in these consolidated appeals by allowance is whether the relinquishment, during collective bargaining, of a scheduled, future salary increase for employees, in return for a lump-sum payment by the employer into a pension fund for current and future retirees, constitutes an employee "contribution" to such fund for purposes of Pennsylvania's unemployment compensation statute and applicable federal law.
United States Steel Corporation ("Employer") contributes to, and maintains, the Carnegie Pension Plan (the "Plan") for retired employees. Employer's contributions to the Plan have been governed by the terms of various agreements that have been executed by Employer and the United Steelworkers of America (the "Union"). The first such agreement relevant to the present matter was executed by the parties in 1977, and was set to expire on July 31, 1980. Under this contract, employees were scheduled to receive a cost-of-living adjustment ("COLA") in May of 1980. In early 1980, however, before the 1977 agreement expired and before the COLA took effect, Employer and the Union negotiated a second contract, dated April 15, 1980, that succeeded the 1977 contract. During the negotiations that preceded execution of the 1980 agreement, one important issue that concerned the parties pertained to the enhancement of pension funding. This issue was ultimately resolved when the Union agreed to relinquish the COLA that was scheduled to begin in May, and Employer agreed to provide a modest general pay increase and, additionally, make a lump-sum contribution to the pension fund. Thereafter, retirees and future retirees became eligible for increased pension benefits due, at least in part, to this lump-sum payment. The payment was placed
directly into the general pension fund administered under the Plan; no special fund or account was created for the disbursement of these monies.
Appellant Wayne R. Wilson ("Claimant") worked for Employer in May of 1980, and thus, he would have been eligible for the COLA scheduled under the superseded 1977 contract.1 In July of 2001, Claimant filed for unemployment compensation benefits and established financial eligibility based upon wages paid by Employer. Claimant initially received full unemployment benefits, reduced only by part-time wages. He also received monthly retirement pension disbursements under the Plan in the amount of $1,830.00. The local office of employment security (the "Job Center") ultimately reduced Claimant's weekly benefit by $212.00, a sum representing one half of the weekly prorated amount of Claimant's pension receipts.2 This reduction was effected pursuant to Section 404(d)(2) of the Unemployment Compensation Law,3 43 P.S. §804(d)(2), which provides, in relevant part:
(i) . . . for any week with respect to which an individual is receiving a pension . . . under a plan maintained or contributed to by a base period or chargeable employer, the weekly benefit amount payable to such individual for such week shall be reduced, but not below zero, by the pro-rated weekly amount of the pension as determined under subclause (ii).
(ii) If the pension is entirely contributed to by the employer, then one hundred per centum (100%) of the pro-rated weekly amount of the pension shall be deducted. If the
pension is contributed to by the individual, in any amount, then fifty per centum (50%) of the pro-rated weekly amount of the pension shall be deducted.
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