(dissenting). I disagree with the majority’s determination that the West Allis School District without reasonable cause failed to rehire Victor Buff when suitable work was available. Because I believe the district properly requested termination of CETA funding for Buff’s position, his subsequent discharge fails to show that the district’s rehiring was not done in good faith.
The CETA program is a remedial program designed to meet the special needs of chronically unemployed and low income persons. Through CETA funding, which comes directly from the federal government, employers are able to employ persons they otherwise would not have had the funding to hire. Even though CETA employees may perform similar work as regular employees, they are employed subject to the rules and regulations of the CETA program.
Once the district consented to participation in the CETA program, it had an obligation to exercise reasonable diligence to ensure compliance with the program’s rules and regulations. Several months after the district received CETA funding for two general laborer positions — one of which was filled by Buff — it discovered that there was insufficient general labor work for the positions. After being unable to remedy this situation, the district took the appropriate steps under CETA regulations and requested that funding for both positions be *431terminated. The district, by continuing to receive CETA funding and having Buff continue to perform work other than the authorized general labor work specified under the CETA grant, could have been in direct violation of CETA regulations, which would have resulted in sanctions being applied to the district. Thus, under the circumstances of this case, termination of funding for Buff’s position was required by the terms of the CETA program, its implementing regulations, and the CETA agreement.
Although Buff was covered under the protections afforded by sec. 102.35(8), Stats., I believe that the good faith rehiring duty recognized by the majority must be applied in this case in light of the unusual employer/employee relationship created under the CETA program. I conclude that there was sufficient credible evidence to find that the district in good faith rehired Buff in his CETA position when he recovered from his injury. Thereafter, when CETA funding for his position was properly terminated, the district had reasonable cause to discharge Buff. This shows the district made a bona fide effort to place Buff in suitable, available employment, namely, his current CETA position. The district did not, as the majority determined, make a pro forma hiring designed to avoid the obligations imposed by sec. 102.35 (3). Once CETA funding was terminated and Buff was properly discharged, the district had no further obligation to place Buff in other, suitable non-CETA employment. I would reverse the court of appeals.
I am authorized to state that Justice Roland B. Day and Justice Donald W. Steinmetz join in this dissenting opinion.