ILNews

Supreme Court upholds unemployment benefits for Chrysler workers

Back to TopCommentsE-mailPrintBookmark and Share

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Even though the provision at issue has been repealed, the justices ruled on the case because it’s a matter of real consequence to the parties involved, wrote Chief Justice Randall T. Shepard for the unanimous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.  

 

ADVERTISEMENT

  • 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?

    Post a comment to this story

    COMMENTS POLICY
    We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
     
    You are legally responsible for what you post and your anonymity is not guaranteed.
     
    Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
     
    No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
     
    We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
     

    Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

    Sponsored by

    facebook - twitter on Facebook & Twitter

    Indiana State Bar Association

    Indianapolis Bar Association

    Evansville Bar Association

    Allen County Bar Association

    Indiana Lawyer on Facebook

    facebook
    ADVERTISEMENT
    Subscribe to Indiana Lawyer
    1. Someone off their meds? C'mon John, it is called the politics of Empire. Get with the program, will ya? How can we build one world under secularist ideals without breaking a few eggs? Of course, once it is fully built, is the American public who will feel the deadly grip of the velvet glove. One cannot lay down with dogs without getting fleas. The cup of wrath is nearly full, John Smith, nearly full. Oops, there I go, almost sounding as alarmist as Smith. Guess he and I both need to listen to this again: https://www.youtube.com/watch?v=CRnQ65J02XA

    2. Charles Rice was one of the greatest of the so-called great generation in America. I was privileged to count him among my mentors. He stood firm for Christ and Christ's Church in the Spirit of Thomas More, always quick to be a good servant of the King, but always God's first. I had Rice come speak to 700 in Fort Wayne as Obama took office. Rice was concerned that this rise of aggressive secularism and militant Islam were dual threats to Christendom,er, please forgive, I meant to say "Western Civilization". RIP Charlie. You are safe at home.

    3. It's a big fat black mark against the US that they radicalized a lot of these Afghan jihadis in the 80s to fight the soviets and then when they predictably got around to biting the hand that fed them, the US had to invade their homelands, install a bunch of corrupt drug kingpins and kleptocrats, take these guys and torture the hell out of them. Why for example did the US have to sodomize them? Dubya said "they hate us for our freedoms!" Here, try some of that freedom whether you like it or not!!! Now they got even more reasons to hate us-- lets just keep bombing the crap out of their populations, installing more puppet regimes, arming one faction against another, etc etc etc.... the US is becoming a monster. No wonder they hate us. Here's my modest recommendation. How about we follow "Just War" theory in the future. St Augustine had it right. How about we treat these obvious prisoners of war according to the Geneva convention instead of torturing them in sadistic and perverted ways.

    4. As usual, John is "spot-on." The subtle but poignant points he makes are numerous and warrant reflection by mediators and users. Oh but were it so simple.

    5. ACLU. Way to step up against the police state. I see a lot of things from the ACLU I don't like but this one is a gold star in its column.... instead of fighting it the authorities should apologize and back off.

    ADVERTISEMENT