Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD Award No.
8684
SECOND DIVISION Docket No.
8275
2-WP-CM-'81
The Second Division consisted of the regular members and in
addition Referee George E. Larney when award was rendered.
Brotherhood Railway Carmen of the United States
Parties to Dispute: and Canada
( Western Pacific Railroad Company
Dispute: Claim of Employes:
1. That the Western Pacific Railroad Company violated the controlling
Agreement when they assigned Carman L. E. Layton four weeks vacation,
then after taking four weeks vacation, they instructed him he had only
been entitled to three weeks and withheld approximately
305.60
from
his next check.
2. That Carman L. E. Layton should be reimbursed the amount of
305.60
that
was withheld from his check because of an error made by the Carrier and.
not corrected within eight
(8)
months.
Findings
The Second Division of the Adjustment Board, upon the whole record and all
the evidence, finds that:
The carrier or 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.
Claimant, Carman L. E. Layton, Jr., a Welder employed at Carrier's Shop
Facility located at Sacramento, California, had at the time of the instant dispute,
fourteen (14) years of continuous service with Carrier. With this amount of
continuous service, Claimant was entitled to an earned paid vacation of fifteen
(15)
days as pursuant to the pertinent provisions of the December
17, 1941,
National Vacation Agreement. However, due to an error of unknown origin, the
Carrier indicated to Claimant by way of a written notation on the Form used to
specify Choice of Vacation Dates, that he had a total of twenty (20) earned
vacation days due him. The Claimant indicated on lines provided for first,
second and third choice his preference as to which twenty (20) days he wanted to
take for his vacation. Ultimately, Claimant was awarded his first and second
choice which amounted to a total of fifteen
(15)
days off between June
27
and
July
15, 1977,
and five
(5)
days off between September 26, and-September
30,
1977.
Subsequently, Carrier's Payroll Department discovered the error of the
additional five
(5)
days of paid vacation allotted the Claimant and deducted from
his regular paycheck of October
25, 1977,
an amount totalling
305.60.
Form 1 Award No. 8684
Page 2 Docket No.
8275
2-WP-CM-'81
The Organization contends the source of the error rests solely with the
Carrier, attributing it to sloppy bookkeeping. Because this error was not discovered until after Claimant took the balance of five
(5)
days at the end of
September of
1977,
almost eight (8) months after Claimant had initially filed
his Choice of Vacation Dates Form, this had the effect, argues the Organization,
of penalizing the Claimant in that he was precluded from working a full week in
1977.
Had the error been discovered prior to this taking the last five
(5)
days
in September, he would not have been deprived of his right to earn a week's pay.
The Organization further argues that Claimant, in signing up for twenty (20) days
of vacation rather than the fifteen
(15)
days he was entitled to, was simply
complying with Carrier's directive and believed, because of his unfamiliarity
with provisions of the
1941
National Vacation Agreement, that he was, in fact,
entitled to twenty (20) days of vacation as the Carrier had so indicated. The
Organization strongly asserts there was absolutely no intention on the part of
the Claimant to defraud the Carrier and that Carrier has failed in its burden of
proof to demonstrate Claimant was dishonest by knowingly taking an additional
five
(5)
days of paid vacation he was not entitled to receive.
The Carrier argues that the error committed in the case at bar is not solely
its alone but must be borne jointly, as the vacation dates were assigned by a
group made up of Carrier officials at the local level and a Local Committee of the
Organization. In this vein also, Carrier argues Claimant had a responsibility
to notify it that he had been assigned five
(5)
additional days of earned vacation
he was not entitled to receive. Carrier observes it finds it difficult to accept
the Organization's contention that Claimant, with fourteen (14) years of seniority
was not ktowledgeable as to the amount of earned vacation contractually provided
for. But aside from these arguments, Carrier asserts it has the contractual right
under the Controlling Agreement, effective February 1, 1946 and reprinted
may 1,
1973,
to recoup overpayments. In support of its position, Carrier cites a number
of Third Division Awards which specifically address this principle, such as Awards
9117, 9581
and
.15067
in which the Board held:
"There is little doubt that Jammerson was given extra vacation
in
1956
and
1957.
The essential question is whether the
Carrier has the right to recoupment of that excess payment
four years after making the error.
There -is nothing in the parties' Agreement which precludes
the Carrier from recovering the excess payment. The
Agreement is quite clear in imposing time limits for filing
of claims concerning employes, but it contains no comparable
restriction upon the employer when it seeks to rectify an
error. Referee Johnson in Award
9581
stated:
'...the rule obviously does not apply to deductions
and we have no authority to extend its application.'
It is clearly beyond our authority to rewrite the parties'
Agreement to provide for such a time limit. That is a
proper subject for negotiation between the parties. As
noted by Referee Begley in Award No.
9117:
Form 1 Award No. 8684
Page 3 Docket No. 8275
2-WP-CM-'81
'There is no rule in this applicable agreement, as
there is in some agreements denying the Carrier
the right to deduct the payments made to the
claimant in error for the holidays."'
In sum, the Carrier asserts the Organization has failed to demonstrate that its
actions here of recouping the vacation overpayment is in violation of any provisions
of the parties' Controlling Agreement.
The Board holds, upon scrutiny of the entire record, that nothing in the
Controlling Agreement bars the Carrier from recouping overpayments made to
employees, regardless of whether or not those overpayments derive from an error
solely committed by management and/or irrespective of the elapsed amount of time
it took management to discover the error. Thus, Carrier was within its rights
in the instant case to take back the $305.60 it erroneously paid to the Claimant
in paid vacation time Claimant was not entitled to receive.
However, the Board is somewhat troubled by the "one-way street" of equity
produced by our judgment, as it is definitely true that had the error been
discovered prior to Claimant's taking the five (5) vacation days he was not
entitled to, he would not have been deprived of the opportunity to work those
days in 1977. Assuming arguendo he really was unaware of the amount of his
vacation entitlement, such foreclosure of that opportunity to work is all the more
a bitter pill to swallow. We believe therefore, that a more equitable resolution
of the issue can be obtained through imposition of a unique second part remedy, which
shall be implemented without prejudice to other cases similar in nature but
encompassing a different set of factual circumstances. While upholding Carrier's
right to recoup the loss and therefore retain the overpayment of $305.60, we
direct Carrier to provide Claimant with the option of working a portion of his
vacation in either calendar year 1981 or 1982, whichever is deemed by Carrier to
be more appropriate, which portion shall be determined in terms of hours by dividing
the total of $305.60 by the prevailing pro rata rate for Claimant's current
position. The number of hours resulting shall be rounded to the nearest whole
number so as to bar Claimant from earning an amount greater than $305.60. If
Claimant declines thia-option, such option shall automatically become null and void
and any liability on the part of the Carrier due to said option shall cease to
exist.
A WAR D
Claim disposed of
as
per Findings.
NATIONAL RAILROAD ADJUSTMENT BOARD
By Order of Second Division
Attest: Executive Secretary
National Railroad Adjustment Board
By
R semarie Brasch -Administrative Assistant
Dated at Chicago, Illinois, this 29th day of April, 1981.