Document: 447 U.S. 191 100 S.Ct. 2100 65 L.Ed.2d 53 Thomas E. COFFY, Petitioner,v.REPUBLIC STEEL CORP. No. 79-81. Argued Feb. 27, 1980. Decided June 10, Syllabus The Vietnam Era Veterans' Readjustment Assistance Act of 1974 (Act) provides that any person who leaves a permanent job to enter the military, satisfactorily completes military service, and applies for re-employment within 90 days being discharged from must be reinstated former "without loss seniority," 38 U.S.C. § 2021(b)(1). Upon honorably petitioner made timely application reinstatement with respondent, his employer. Because respondent was then in process laying off employees, layoff status. While laid off, he received weekly payments under supplemental unemployment benefits (SUB) plan created by applicable steel industry collective-bargaining agreement. Under plan, an employee is entitled receive SUB only if has completed two years continuous service prior amount benefit determined hourly wage rate, number dependents, state compensation receiving, level funding remaining plan. length time during which receives credit units accumulated before one-half accrued each week worked "any" hours, or paid hours not (such as vacation jury duty), lost because performing certain union duties on disability leave. also enters Armed Services, credited him at entry into shall upon unbroken except may otherwise required law. Petitioner 25 weeks, whereas had been employed period would have 52 weeks payments. Alleging violated statutory rights refusing consider computing entitled, petitioner, represented Department Justice pursuant Act, filed action Federal District Court, ultimately held were perquisite seniority protection. Court Appeals affirmed. Held : provided agreement are perquisites returning veteran Act. Pp. 195-206. (a) liberally construed veteran's benefit, steps back escalator precise point occupied kept position employer continuously service. Cf. Fishgold v. Sullivan Drydock & Repair Corp., 328 275, 66 1105, L.Ed. 1230. In determining whether particular qualifies first, there reasonable certainty gone and, second, "real nature" "a reward service," rather than form short-term services rendered." Alabama Power Co. Davis, 431 581, 589, 97 2002, 2007, 595. 195-198. (b) satisfies reasonable-certainty prong test, since remained instead entering credits date hired until off. second deferred compensation, but closely analogous traditional forms seniority. purpose function plans provide economic security periods employees significant period, specific provisions support this general programs. 199-206. 6th Cir., 590 F.2d 334, reversed remanded. Alan I. Horowitz, Asst. Sol. Gen., Washington, D.C., pro hac vice, special leave Court. Michael A. Nims, Cleveland, Ohio, respondent. Mr. MARSHALL delivered opinion 1 1974, 2021 et seq., without This case presents question statute. 2 * Coffy Republic Steel Corp. (Republic) April 30, 1968, September 17, again January 24, 1969, 9, when entered He served August 16, 1971. 14, already lay-off recalled work July 1, 1972. 3 between major companies, including Republic, United Steelworkers America (Steelworkers). weeks.1 If Coffy, 2022, States Northern alleging entitled.2 4 relying Foster Dravo 420 92, 95 879, 43 44 (1975), judgment court bona fide effort relate qualification . actually performed," App. Pet. Cert. 24a, therefore pending petitioner's appeal Sixth Circuit, we 595 (1977), pension protected sua sponte vacated Court's remanded reconsideration light Power. 5 On remand, adhered its decision 461 F.Supp. 344 (1978). affirmed 334 We granted certiorari, 444 924, 261, 62 180 (1979), resolve conflict among Circuits concerning important interpretation statute.3 now reverse. II 6 (Act), requires veterans jobs they left "or like seniority, status, pay." 2021(a)(B)(i).4 further seniority." interpreted predecessor 20215 mean "does step stepped war." 284-285, 1111, 1230 (1946). Congress incorporated principle present statute providing should given "such status person's employment enjoyed such continued continuously" 2021(b)(2). veteran. supra, 285, S.Ct., 1111. 7 several times occasion type Accardi Pennsylvania R. Co., 383 225, 86 768, 15 717 (1966), involved claim severance pay. payment depended employee's "compensated service." Id., 228, 770. rejected employer's argument based total company. Rather, held, job. 230, 772. "the cost losing measured how much did past forfeits giving up job"—rights largely seniority—the "just more preference order recall." Ibid. 8 reached different result evaluating (1975). real nature observed, reflected common conception respite lengthy labor," id., 101, 884. contractual additional higher overtime rata vacations achieving necessary supported conception. Accordingly, pay intended performed not, therefore, right 9 Most recently, purposes Although directly dependent accredited true 593, 2009. vesting, use formulas earnings retirement, system"—namely, financial assure stable force, increase efficiency—all led conclusion "are predominantly rewards same employer." 594, 2010. Power, summarized principles emerged cases concluded establish two-pronged test First, 2007. Second, "short-term 10 Our task, then, evaluate issue these principles. III 11 first established through collective bargaining 1956. revised subject became effective 1969. three types benefits: "weekly benefit," "short benefit,"6 relocation allowance. Petitioner's involves benefits, supplement 12 Section 2.0 accrues leave.7 A maximum one time. An meets threshold requirement unit accumulated. provides, 7.2: 13 "If armed Company, shall, while deemed Plan absence Benefit. Only Company law." 14 provision declined calculating entitled.8 determine B conclude 16 concept evolved demand organized labor guaranteed annual wage. When it evident impractical their industries, unions Auto Workers transformed demands proposals existing These adopted industries plans. See J. Becker, Guaranteed Income Unemployed: Story 9-20 (1968); Freedman, Security Bargains Reconsidered: SUB, Severance Pay, Work 4-5 (The Conference Board 1978). From beginning, regardless afford performed. standpoint SUB's, help force layoffs payments, management flexibility implementing technological advances. 55-57, 248. 17 essential regular event Protection against is, course, attributes second-level protection layoff. does sufficient avoid still achieved minimum Unlike vacations, SUB's cannot performed, "reward U.S., 884, contingent thrown out work; unless will never sense, payments: "compensation jobs." Accardi, 2. 18 turn contradict our understanding availability so related demonstrate " 'bona [compensate for] performed.' F.Supp., 346. That odds literal terms earned all categories specified 2.0. 1962 modification original 1956 correlated 1/10 every eight worked, 1/2 per week. recognized expressly entitlement found fact no significance '[c]ircumstances industry, revealed uncontradicted evidence case, that, practice, workweek 32 hours. actual conditions industry. possibility working hour exist.' 347.9 19 course accept factual findings practice do agree, however, de facto 32-hour means Credits duty, disabled duties. even considered similar "wage substitutes" them, custom. 20 observe normal work-week Art. 6, agreement, 40 32. makes accrual over week, work. omission suggestive desire compensate 21 Further, reason rare works fewer benefit" plan.10 Qualified some 32, short-week plan; those benefits. union's success effectively mechanism logically alter negotiated part 22 Even eligibility itself, render them rights. emphasized formula calculated, crucial factor, "[e]ven most kinds privileges could easily tied usual criterion employee." 592, 2008. As explained, support, contradict, 23 proportionate years' eligible accumulate credits, benefit. Thus met credit;11 time, computed according formula, seniority.12 According facts available whose less after lead increased longevity service.13 24 [6] need meticulously proportioned constitute long performs akin fact, very factors cited show equally relevant rendered. voluntarily terminates employment. Such characteristic compensation; other seniority.14 Similarly, time; ceiling goes "uncompensated." Moreover, four factors, none appears designed worked: rate (not earned); dependents employee; received; fund. IV period. represent reversed, proceedings consistent opinion. 26 It ordered. erroneously approximately nine 1968 canceled quits voluntarily, 1968. overpayment recovered deductions paycheck returned complaint alleged violation Military Selective Service 1967, 50 459 (1970 ed.). relating veterans' re-enacted substantive change Title seq. Third Seventh Hoffman Bethlehem 477 860 (CA3 1973); Akers General Motors 501 1042 (CA7 1974). Approximately 1,947,400 workers covered agreements Dept. Labor, Bureau Labor Statistics, Bull. 2065, Characteristics Major Collective Bargaining Agreements 101 (Apr. 1980). part: "(a) inducted Forces (other temporary position) employ perform training (1) certificate described section 9(a) (relating satisfactory completion service), (2) reemployment ninety relieved "(B) private employer, shall— "(i) qualified position, restored pay[,] "unless circumstances changed make impossible unreasonable so. "(b)(1) Any accordance having furlough Forces, reemployed participate insurance offered rules practices effect forces, cause year restoration reemployment. "(2) hereby declared sense manner give employment, reemployment." Training 1940, ch. 720, 8(b), 54 Stat. 890, later ed.), subsequently n. 2, supra. some, worked. Certain accrue exhaust slightly see §§ 2.1 4.10 20, distinction analysis. find inconsistency company's counting toward plain intent 7.2 neither nor break view testimony James Carney, attorney stated keep track anyone contradicted, extent, Joseph Senturia, consultant Steelworkers. testified liberalize simplification accumulation received. 125 (1968). Employees Roughly speaking, difference taking exceeds sum paid, reasons lack work, problems involving company transportation utility quit suspended discharged, multiplying rate. One-half Since net remain same. custom included manufacturing operations, conducted 24-hour basis; reports least hours' 7, consult distribution decrease results average fewer. 2-year 52-credit coextensive. For example, continues compute hire date, 2.4 permits cancel willfully falsifies withholds information based; cancellation affect Of senior likely reflect longer company, often junior employee. Modifications program 1977 differentiation greater Benefit reduced fund, doubled, 104. Respondent argues inverse relationship observes protects layoff, 1.5 fund depleted employees. ignores components invariably workers. "Bumping" provisions, seldom used yet unquestionably event, record contains history permit us draw probability 1.5. exercise "bumping" pool, transfer another plant priority applicants, recently plant.

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