( Joplin )

Published

( Love County - Charles E. Roberts )

MEMORANDUM OPINION

Appellant The Uniroyal Goodrich Tire Company (Employer) seeks review of the trial court's order affirming the decision of the Appellee Oklahoma Employment Security Commission (OESC) to allow unemployment compensation benefits to Appellee Clentis R. McCarroll (Claimant). In this appeal, Employer asserts error of both law and fact in allowing unemployment benefits to Claimant after Claimant voluntarily quit work upon acceptance of Employer's offer of enhanced early retirement benefits, i.e., retirement benefits in excess of those which Claimant was entitled and would have received for his actual years of service. We hold the trial court erred in allowing Claimant unemployment benefits under such circumstances, and reverse.

Claimant worked for Employer for over twenty-two years. In 1993, Employer announced an intent to reduce its company-wide workforce either by the offer of early retirement to eligible employees or unspecified "other means." Under the terms of the early retirement offer, participating employees would receive (1) an additional $175.00 monthly payment over and above the employee's ordinary monthly pension benefit, (2) a lump sum cash benefit calculated by reference to years of service, in this case between $16,000.00 and $20,000.00, and (3) medical/prescription drug insurance benefits at the current nominal premium rate of $8.00 per month; in the event an employee elected not to accept the early retirement offer, the offer would be withdrawn, although an employee would remain eligible for ordinary retirement benefits with higher insurance premiums, then slated to increase to $80.00 per month. Claimant, then 59 years old, and six years away from the retirement age under Employer's existing retirement plan (age 65), accepted the early retirement over, and retired from his job on December 31, 1993.

Claimant then applied for unemployment benefits. OESC allowed benefits, finding:

"Employer offered a salaried separation plan for which claimant met requirements and elected to take the offer voluntarily separating from employment. It is determined this would constitute a forced resignation since the employer offered the incen- tive to the claimant."

Employer sought review before an OESC hearing officer. At that hearing, Claimant testified that he elected to participate in the early retirement program because he could not afford to "lose" the added benefits available thereunder, i.e., the additional monthly pension benefits the lump sum cash payment, and the reduced cost insurance coverage, which benefits would not be available to those who elected to remain on the job and not participate in the early retirement offering. Claimant also testified that he was concerned about to what "other means" Employer might turn to affect the announced reduction in work force, speculated that "other means" might include forced layoffs, but adduced no evidence that Employer did anything other than offer early retirement to certain eligible employees; to the contrary, in fact, a personnel specialist for Employer testified that none of the workers in Claimant's unit had been laid off, that Claimant would still be working if he had not elected early retirement, and that Employer had been forced by Claimant's retirement to assign Claimant's previous and essential quality control duties to another employee. Upon consideration of the evidence, the hearing officer found Claimant entitled to benefits, concluding:

"The employer solicited the claimant's retirement by announcing its plans to reduce it sic staff by offering an early retirement program or other means, if necessary, and indicating a future retirement would be less desirable. It is concluded, therefore, the claimant voluntarily quit her sic job with good cause connected with the employment."

On Employer's request for further review, the OESC Board of Review affirmed the appellate tribunal hearing officer's order. Employer then petitioned for review before the trial court, and the trial court also affirmed. Employer appeals.

Employer here asserts the trial court erred as a matter of both law and fact in affirming the OESC decision. In particular, Employer argues that when an employee voluntarily retires from the employment, the employee has not left the employment for "good cause connected with the work," and as such is disqualified for unemployment benefits by statute.The order of the trial court is REVERSED.
Disposition: OKL., 913 P.2D 1377 (1996)
Citations: Unpublished Opinion No. 85,174 (1996)