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Supreme Court upholds unemployment benefits for Chrysler workers

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The Indiana Supreme Court has affirmed the decision by the Review Board of the Indiana Department of Workforce Development granting unemployment benefits to Chrysler workers who took voluntary buyouts.

In 2008 and 2009, Chrysler offered a buyout program – the Enhanced Voluntary Termination of Employment Program – to employees in Kokomo. Employees who participated in the EVTEP relinquished all recall and seniority rights with Chrysler. The Indiana Department of Workforce Development then terminated unemployment benefits for those employees who had been on layoff prior to accepting the EVTEP, and it denied unemployment benefits to the employees who had been actively working for Chrysler prior to accepting EVTEP. Both groups appealed to an administrative law judge, who determined that those employees who were on indefinite layoff before accepting the EVTEP were entitled to continued unemployment benefits, but the employees who were actively working or on temporary layoff were not. Chrysler and the employees then appealed to DWD’s review board, which found that all employees who accepted the buyout were eligible for benefits under Indiana Code 22-4-14-1(c) despite a lack of good cause for leaving their job.

Subsection (c) said that “[e]xcept as provided in IC 22-4-5-1, a person who: (1) accepts an offer of payment or other compensation offered by an employer to avert or lessen the effect of a layoff or plant closure; and (2) otherwise meets the eligibility requirements established by this article; is entitled to receive benefits in the same amounts, under the same terms, and subject to the same conditions as any other unemployed person.”

Even though the provision at issue has been repealed, the justices ruled on the case because it’s a matter of real consequence to the parties involved, wrote Chief Justice Randall T. Shepard for the unanimous court in Chrysler Group, LLC v. Review Board of the Indiana Dept. of Workforce Development and T.A., et al., No. 93S02-1109-EX-565.

The justices agreed with Chrysler’s argument that I.C. 22-4-14-1(c) requires a desire to avert or lessen the effect of a layoff or plant closure be viewed from the perspective of the employer. But the justices didn’t accept Chrysler’s argument that it hadn’t explicitly announced the particular plant closure or layoffs, so the provision at issue shouldn’t apply.

The high court didn’t see why such an explicit declaration of the employer’s intent is necessary under the provision, and “Chrysler’s approach would undermine these humanitarian purposes, allowing a disingenuous employer to side-step its responsibilities under the Act by simply choosing its words carefully to avoid an explicit declaration of intent,” wrote the chief justice.

The justices also found no reason that Chrysler must have intended to close the plants where the employees worked or lay off additional people at those plants for the provision to apply. The EVTEP did ultimately avert or lessen the effects of the layoffs, and there is substantial evidence that Chrysler intended for the program to lessen the effect of the layoffs or plant closure.  

 

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  • A forgery EVTEP
    A EMPLOYEE HAVE BEEN THREATENED TO TAKE THE BUYOUT, ON THE DAY OF 12/04/2009 SHE NERVER SIGN OUT FOR NO BUYOUT, CHRYSLER THREATETENED HER TO TAKE IT. CHRYSLER ALSO BACK DATED TO 11/13/2009,
  • lawyer to take my case
    I also took buyout in 09 yet I have not recieved my unemployment looking for lawyer to win my case
  • Need Info
    I also am seeking information pertaining to the lawyers that handled this case. Also how to make a claim.
  • Chrysler worker
    I took the buyout in 2009, I would like to know how I go about checking my eligibility for these benefits?

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    1. Im very happy for you, getting ready to go down that dirt road myself, and im praying for the same outcome, because it IS sometimes in the childs best interest to have visitation with grandparents. Thanks for sharing, needed to hear some positive posts for once.

    2. Been there 4 months with 1 paycheck what can i do

    3. our hoa has not communicated any thing that takes place in their "executive meetings" not executive session. They make decisions in these meetings, do not have an agenda, do not notify association memebers and do not keep general meetings minutes. They do not communicate info of any kind to the member, except annual meeting, nobody attends or votes because they think the board is self serving. They keep a deposit fee from club house rental for inspection after someone uses it, there is no inspection I know becausee I rented it, they did not disclose to members that board memebers would be keeping this money, I know it is only 10 dollars but still it is not their money, they hire from within the board for paid positions, no advertising and no request for bids from anyone else, I atteended last annual meeting, went into executive session to elect officers in that session the president brought up the motion to give the secretary a raise of course they all agreed they hired her in, then the minutes stated that a diffeerent board member motioned to give this raise. This board is very clickish and has done things anyway they pleased for over 5 years, what recourse to members have to make changes in the boards conduct

    4. Where may I find an attorney working Pro Bono? Many issues with divorce, my Disability, distribution of IRA's, property, money's and pressured into agreement by my attorney. Leaving me far less than 5% of all after 15 years of marriage. No money to appeal, disabled living on disability income. Attorney's decision brought forward to judge, no evidence ever to finalize divorce. Just 2 weeks ago. Please help.

    5. For the record no one could answer the equal protection / substantive due process challenge I issued in the first post below. The lawless and accountable only to power bureaucrats never did either. All who interface with the Indiana law examiners or JLAP be warned.

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