Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD Award No.
766o
SECOND DIVISION Docket No.
7454
2-CRI&P-CM-'78
The Second Division consisted of the regular members and in
addition Referee Robert G. Williams when award was rendered.
( System Federation No.
6,
Railway Employes'
( Department, A. F. of L. - C. I. 0.
Parties to Dispute: ( (Carmen)
(
( Chicago, Rock Island and Pacific Railroad Company
Dispute: Claim of Employes:
1. That under the current Agreement, Carrier improperly assigned
other than Carmen (Isringhausen Company) to dismantle nine
railroad cars at its Axmourdale, Kansas Train Yard.
2. That the Carrier reclaimed usable parts, A. B. brake valves,
air brake cylinders, angle cocks, air hoses, journal bearing
draft gears, yokes, cross keys, couplers, roller bearing wheels,
friction bearing wheels, hand brakes, hand brake wheels, side
and end ladders, sill steps, etc.
3.
That accordingly, Carrier be ordered to make the Carmen whole
by additionally compensating the following Carmen
8
hours each
at the time and one half rate for 10 days pay each, Carman K.
Keele, G. Reardon and J. Ulreich.
Findings:
The Second Division of the Adjustment Board, upon the whole record and
all the evidence, finds that:
The carrier ox carriers and the employe or employes involved in this
dispute are respectively carrier and employe within the meaning of the
Railway Labor Act as approved June 21,
1934.
This Division of the Adjustment Board has jurisdiction over the dispute
involved herein.
Parties to said dispute waived right of appearance at hearing thereon.
The Carrier in this case entered into agreements in 1975 with an
outside firm for the purpose of scrapping and retiring freight cars. Each
agreement set a firm price for each car less usable parts. The record
does not show the value of such usable parts or the cost to the carrier of
recovering such parts. The record does not show the value of the scrap.
The Carrier entered into leases permitting the outside firm to enter upon
the Carrier's property to perform its work.
Form 1
Page 2
Award No.
766o
Docket No.
7454
2-CRI&P-CM-'78
Numerous awards have held that a Carrier is free to sell its property
and such a sale would not violate Classification of Work Rules. The basic
issue in such cases is whether the primary purpose of the agreement is a
sale or is it a contracting out of work covered by a Classification of
Work Rule. In this case, the agreement includes a firm price which tends
to show a sale. On the other hand, the term requiring the return of
reusable parts tends to show the Carrier was contracting out the work.
Given these terms in the agreement, the Carrier was receiving the same
benefits from the outside firm that it would have received from the
Claimants had they performed the work. The purpose of the agreement
therefore appears to be primarily a contracting out of work rather than
a sale of property. See Second Division Awards 6529 and 6800.
A W A R D
Claim sustained at pro rata rate.
Attest: Executive Secretary
National Railroad Adjustment Board
NATIONAL RAILROAD ADJUSTMENT BOARD
By Order of Second Division
By ~.,.~"..,..~.·'
emarie Brasch - Administrative Assistant
Dated at Chicago, Illinois, this 15th day of August, 1978.