Document: 431 U.S. 581 97 S.Ct. 2002 52 L.Ed.2d 595 ALABAMA POWER COMPANY, Petitioner,v.Raymond E. DAVIS. No. 76-451. Argued April 25, 1977. Decided June 6, Syllabus Respondent, who left employment with petitioner for military service but returned after completion of such and continued in until his retirement, held entitled under § 9 the Military Selective Service Act, which requires an employer to rehire a returning veteran without loss seniority, credit toward pension petitioner's plan period service. Pp. 583-594. (a) A benefit is right seniority secured by if it would have accrued reasonable certainty, as opposed being subject significant contingency, had been continuously employed employer, McKinney v. Missouri-K.-T. R. Co., 357 265, 78 1222, 2 1305; Tilton Missouri Pac. 376 169, 84 595, 11 590, nature reward length rather than short-term compensation services rendered, Accardi Pennsylvania 383 225, 86 768, 15 717; Foster Dravo Corp., 420 92, 95 879, 43 44. 585-589. (b) Here, not only "reasonable certainty" requirement met on basis respondent's work history both before service, also appears that "true nature" payments especially view lengthy (20 years or age 50) required rights vest employee. 591-594. (c) Moreover, claim supported functions plans assuring financial security long-term employees and, providing security, encouraging retire when their efficiency declines. P. 594. 542 F.2d 650, affirmed. Allan A. Ryan, Jr., Washington, D. C., respondent. H. Hampton Boles, Birmingham, Ala., petitioner. Mr. Justice MARSHALL delivered opinion Court. 1 Respondent Davis became permanent employee Alabama Power Co. August 16, 1936, March 18, 1943, he enter military. After serving 30 months, resumed position Power, where worked retired 1, 1971. received company from 1937,1 date exception time spent some strike. claimed Act 1967, 50 U.S.C. App. 459(b),2 give him With assistance United States Attorney,3 sued vindicate asserted right. The District Court, F.Supp. 880 (N.D.Ala.1974), Court Appeals Fifth Circuit, 650 (1976), agreed Davis. Because importance issue conflict among Circuits,4 we granted certiorari, 429 1037, 731, 748.5 We affirm. * provides mechanism manning Armed Forces States. Section evidences Congress' desire minimize disruption individuals' lives resulting national need personnel. It seeks accomplish this goal guaranteeing veterans jobs they entered will be available them upon return civilian life. Specifically, any qualified person leaves military, satisfactorily completes applies re-employment within 90 days discharge 3 "be restored successor interest like status, pay . unless employer's circumstances so changed make impossible unreasonable do so." 459(b)(B)(i). 4 5 "shall considered having furlough leave absence during training armed forces, shall participate insurance other benefits offered pursuant established rules practices relating effect at was inducted into discharged cause one year restoration." U.S.C.App. 459(c)(1). 6 In our first confrontation predecessor 9,6 statutory protection against did protect laid off while nonveterans greater retained jobs. Fishgold Sullivan Drydock & Repair 328 275, 66 1105, L.Ed. 1230 (1946). reaching conclusion, announced two principles governed all subsequent interpretations veterans. First, stated Act: 7 "(The veteran) does step back escalator point stepped off. He steps precise occupied kept war." Id., 284-285, S.Ct., 1111. 8 Congress incorporated doctrine succeeding re-enactments provision. See 459(c)(2).7 second guiding principle identified was: "This legislation liberally construed those private life serve country its hour great need. And no practice employers agreements between unions can cut down adjustment has Act." U.S., 285, 10 Our next cases were concerned extent afforded clearly Act's scope. Trailmobile Whirls, 331 40, 67 982, 91 1328 (1947); Aeronautical Industrial Dist. Lodge 727 Campbell, 337 521, 69 1287, 93 1513 (1949); Oakley Louisville N. 338 278, 70 119, 94 87 (1949). More recently, however, efforts directed determining whether particular aspect "seniority" protects. unable rely either language legislative making these determinations, neither contains definition "seniority." faced problem 1305 (1958). re-employed higher level attained new dating work. When job abolished, should dated eligible reach served This rejected because contingent expectation promoted previously held. That promotion, found, depended "not simply form automatic progression, exercise discretion part employer." 272, 1227. Since promotion come automatically ride escalator, concluded nor calculated might incidents protected Act.8 12 Six later, again obtained 590 (1964). railroad enough complete probationary necessary obtain status begin accumulating job. railroad, successfully completed remainder period. set actually finished period; fixed satisfied 13 agreed. Unlike situation McKinney, found management involved decision allow assume position, exercised Tilton's satisfactory reinstated sufficient indication earlier tenure interrupted country. mere possibility circumstance could allowed deny almost certainly obtained: 14 "In every case exists type availables absence; elected accept position; sickness prevented continuing employment. light purpose statute, cannot intended possibilities sort defeat veteran's rights." 180-181, 602. Tilton, decided veterans' promotions cases, dates most recent claims easily classified. These us consider relative certainty benefit's accrual itself. 16 encountered added complexity 717 (1966), involving severance pay. petitioners tugboat firemen later appropriate credit. technological change led elimination fireman, provide pay, amount payment dependent employee's "compensated service." colleagues calculating payments. 17 ruled favor firemen. clear remained jobs, Therefore, reasonable-certainty criterion satisfied. argued, based on, incident of, total actual railroad. While questioning company's argument "bizarre results possible 'compensated service,' " 230, 771,9 "real lose expectations employees' longevity increased. Ibid. disguised use service" formula calculate Accordingly, 18 "the allowances just much perquisite more traditional preference order lay-off recall." 19 Failing therefore violated seniority.10 20 Most 44 (1975), dealt another seven weeks months last 1968. vacation years, although collective-bargaining agreement full 25 calendar year. 21 Again focusing issue, Foster's claim. Vacation benefits, held, are "intended performed," id., 100, 854, employer.11 noted imposed contract, proportionate increase resulted overtime work, availability pro rata number weeks. facts, "lend substantial support," ibid., done. common conception respite labor," 101, 884 decisive. 22 (1) Thus, axes analysis 9. If accrued, "perquisite seniority." If, hand, coverage evaluate respondent Davis' principles. II 23 (2) July 1944, plan, funded entirely company, covers "full-time regular employee(s)" continuous least old. 58-59. Under labor full-time who, limited exceptions,12 works 40-hour week. covered vested includes 50. 90-91.13 Normal retirement 65, "accredited elect reached 55. Pet. Cert. 43a-44a. chose early option. 24 concept major determinant paid source present controversy. defines "future together "past 34a-35a. terms, turn, defined initiation inclusion (future service) prior (past service). 35a. Future credited "for rendered Company" full-time, periods authorized Employees persons future company. 40a.14 Retirement formulas accredited multiplied earnings factor.15 Had monthly $216.06 $198.95 said entitled. case. Respondent's tour duty demonstrates accumulated October 8, 1945. Unpredictable occurrences intervened, "we 181, 26 (3) contends, viewed Foster, Accardi. argues terms bona fide, which, "is strong evidence question compensation." 99, 884. grant performed, concludes increase. 27 As discussion turned calculated. Even kinds privileges tied usual Yet, Fishgold, "no must look beyond overly simplistic suggested 28 obvious resemblance performed. Funding program current cost employing potential recipients, wages. size collective bargaining,16 may traded compensation.17 same observations, made about little recompenses rewards employer. 29 Other aspects petitioner18 suggest factor pointing conclusion difficult maintain increment deferred passage employ, entitles increment. vesting depend each directly continues Periodic adjustments account unanticipated increases living costs, see 74-84, emphasize dissociation levels compensate. function system supports assures devoting large portion working single achieve retirement. By rewarding reduce turnover costs help secure stable force. McGill, Fundamentals Private Pensions 21-23 (3d ed. 1975). addition, economic encourage longtime whose decline way younger workers. 21-22; S. Slichter, J. Healy, Livernash, Impact Collective Bargaining Management 374 (1960). relationship central functions. 31 conclude, therefore, predominantly Protecting break response country's needs fulfilled requiring virtue called colors. judgment below 32 ordered. become infra, 590. 459(b) recodified, change, 38 2021 (1970 ed., Supp. V). 459(d), now codified 2022 Compare Jackson Beech Aircraft 517 1322 (CA10 1975) Litwicki Pittsburgh Plate Glass Industries, Inc., 505 189 (CA3 1974) (denying credit), Smith Employers Distributors Assn., 546 314 (CA9 1976) (granting past denying credit). certiorari presented, excluding applicability statute limitations. Training 1940, c. 720, 8(b), 54 Stat. 890. "It declared sense accordance provisions paragraph (A) (B) subsection section manner enjoyed entering forces restoration employment." provision 2021(b)(2) "(Section) 9(c) guarantee serviceman perfect reproduction Much there flowed experience, effort, chance lay statute. assure betterment recalled. Its very important changes advancements necessarily occurred denied 271-272, 1226. receive well-timed month days, thereof. whatever scope governing "other benefits" contained 459(c), supra, 583-584, add protections rights, lessen protections. 231-232, 772-773. Court's perquisites unnecessary consideration increased firm. conceded counted vacation. 101 n. 9, 885. exceptions include annual vacations, holidays, sick leave, up maximum three days' death immediate family. nine extended leave. Employee Income Security 1974, 203, 88 1053 V), establishes requirements favorable described text. law, generally affect insofar relevant presented case, alter plans. rule, 61-62, applicable V4(b)(ii) plan. provides: "The minimum payable January 1966 included Plan retiring Company Early Date (before Provisional Payee designation, any) equal 1% Accredited Service, reduced (specified amounts)." 70. "Normal income" reference specified percentages earnings, exclusive 65-68, 73. "normal has, periodically adjusted upward Davis, call multiplication percentage 74-84. Inland Steel NLRB, 170 247 (CA7 1948), cert. 336 960, 887, 1112 (1949), aff'd grounds, American Communications Ass'n C.I.O. Douds, 339 382, 674, 925 (1950). contends holds pensions "wages" classified benefits," Act. concluded, mandatory bargaining National Labor Relations (NLRA) wages "or conditions 249-255. purposes NLRA, classification control treatment different Cf. Embassy Restaurant, 359 29, 33, 79 554, 556, 601 (1959) (payments union welfare fund NLRA Bankruptcy Act). 373 (1960) (pension encouraged World War difficulty obtaining general wage increases). Petitioner's "defined benefit" contribution benefits. basic contribution" receives contributed behalf provide. §§ 1002(34), (35) V); Note, Fiduciary Standards Prudent Man Rule Harv.L.Rev. 961-963 (1975). intimate views treated differently

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