United Automobile Worker

Decision Awaited by 23,000

The bitter legal fight growing out of the 1939 lockout at Detroit Chrysler plants, in which more than $2,000,000 in unemployment benefits is sought for 23,000 workers, enters its last mile as a state Supreme Court decision impends.

An early decision is predicted by Maurice Sugar, UAW-CIO general counsel, who with his assistant, Ernest Goodman, has concluded oral arguments and filed briefs.

Approximately 23,000 Chrysler employees were working in plants other than Dodge Main when the walkout began in October, 1939. It continued during November.

LOST APPEAL

Twenty-five thousand Dodge Main workers lost their fight for claims when the Court denied an appeal in May, 1941, six to two.

The lockout started at Dodge Main and shut off materials and supplies to other plants, which closed. Claims for unemployment compensation were filed by all workers but denied by the Unemployment Compensation Commission.

In order to expedite handling of appeals, 44 test claims were taken to the Commission referee. This bloc of claimants represented various Chrysler plants.

CASE APPEALED

The case was appealed from the referee to the Appeal Board, to the Circuit Court, to the state Supreme Court. The UAW-CIO claim was sustained except in the last, where in May, 1941, a decision disqualifying all 44 workers was rendered.

The decision claimed that all plants constituted a single establishment. Also that the labor dispute involved the contract, thereby affecting hours, wages and working conditions of all employees in all plants, which constituted direct interest by the strikers.

While this appeal was in progress, the Unemployment Compensation Commission made a redetermination of findings. It held that benefits might be granted to the 23,000 non-Dodge Main workers.

REDETERMINATION APPEAL

The redetermination was appealed by the Corporation to the referee and then to the Appeal Board. The latter agency found that the labor dispute was not over the contract but arose over grievances within certain Dodge Main departments.

An appeal was carried by the corporation to the Circuit Court. Prior to this court's decision, the Supreme Court reversal affecting the 23,000 workers had been handed down. The Circuit Court entered a judgment disqualifying them.

The awaited decision is on the UAW-CIO appeal to the lower court's order. Arguments presented by UAW-CIO before the Supreme Court took two main paths:

CITE ACT

The first was that, under the Michigan Unemployment Compensation Act, if a worker is allowed benefits by the Commission, affirmed by a referee after appeal, the worker is entitled to benefits "regardless of any subsequent appeal."

Though the corporation had appealed, the workers were covered by the meaning of the Act. UAW-CIO counsel maintained.

The second was that the Appeal Board had found, in the case of the 44 claimants, the labor dispute was over the contract. The Supreme Court in that case had accepted the finding and disqualified them because they were directly interested in the contract.

BOARD REVERSES

In the case of the 23,000 workers, however, the Appeal Board had found as a fact the dispute was not over the contract. UAW-CIO counsel argued the higher court must accept the finding of fact of the Appeal Board.

Since the Appeal Board had found the dispute non-contractual, the Supreme Court must hold the 23,000 workers qualified, Sugar and Goodman maintained.