NATIONAL RAILROAD ADJUSTMENT BOARD
THIRD DIVISION
Joseph
L.
Miller, Referee
PARTIES TO DISPUTE:
THE ORDER OF RAILROAD TELEGRAPHERS
SOUTHERN PACIFIC LINES IN TEXAS & LOUISIANA,
TEXAS AND NEW ORLEANS RAILROAD COMPANY
STATEMENT OF CLAIM:
Claim of the General Committee of The
Order of Railroad Telegraphers on Southern Pacific Lines in Texas and
Louisiana (Texas and New Orleans Railroad Company),
(1) That the Carrier violated Article 1 (Section 1), Article 1
(Section 5), Article III (Section 1), Article II (Section 2), of the
then existing telegraphers' agreement, and Notice and Order No. 1
and Notice of Instructions of Federal Manager C. H. Buford of
Government Controlled Railroads of May 17, 1946, when, effective
May 25, 1946, the Carrier declared abolished the positions of the
claimants named in the following Employes' Statement of Facts
and on the days specified therein, because of the strike of the engineers and trainmen commencing on May 24, 1946, and has refused
to pay these claimant employes their wages for the day or days on
which they were improperly locked out and suspended from work
during their regular hours; and
(2) That each of the claimant employes named in the Employes' Statement of Facts who were thus improperly deprived of
their usual employment by the Carrier on the day or days specified
by being improperly locked out and suspended during their regular
hours and who were ready for service and not used, shall be reimbursed for the wage loss on the day or days specified as a result of
this improper act of the Carrier.
EMPLOYES' STATEMENT OF FACTS:
An agreement bearing date
April 1, 1938, as to rates of pay and rules of working conditions was in
effect between the Carrier and The Order of Railroad Telegraphers for the
period covered by this dispute.
Due to a threatened strike of the engineers and trainmen on the Southern Pacific Lines in Texas and Louisiana (Texas and New Orleans Railroad
Company) the United States took possession, control and operation of the
Southern Pacific Lines in Texas and Louisiana (Texas and New Orleans
Railroad Company) effective 4:00 o'clock P. M., May 17, 1946 by means
of the following quoted Notice and Order No. 1:-
NOTICE AND ORDER NO. 1
To each carrier by railroad named in the Executive Order of the
President of the United States, dated May 17, 1946, concerning
possession, control, and operation of certain railroads:
(11
3701-17
17
the work theretofore performed by the claimants who held the positions
which were abolished. The Carrier did not have in mind any temporary
suspension of work or any short term force reduction. There was no way
the Management of this Carrier or anyone else except the Chief Executives
of the Brotherhood of Railroad Trainmen and the Brotherhood of Locomotive
Engineers could tell how long the strike was to remain in effect, whether it
would be two days, two weeks, two months, or longer. The decared intentions of the leaders of the strike movement were to remain on strike indefinitely, hence it was incumbent upon the Management of this Carrier to
arrange the affairs of the Company as economically as possible and in full
compliance with its contracts and agreements with Organizations representing other employes whose employment was affected by the tie-up of the
railroad. Some agreements required a period of notice, twenty-four hours
or forty-eight hours, but the ORT Agreement does not contain any such
period of advance notice and the Carrier was very careful to strictly observe
each agreement to the letter and did in this case comply very carefully with
every rule in the ORT Agreement in abolishing offices and reducing forces
and likewise complied with the agreement when the strike was suddenly
called off. As evidence of the Carrier's compliance, there has not been one
claim or protest by any individual or from any representative of the Organization that any man covered by the ORT Agreement was mishandled in reestablishing the positions and assigning employes.
Every effort has been made to set out all known, relevant, argumentative facts, and the Carrier respectfully requests an opportunity to reply to
the Employes' submission in this case and to appear for oral hearing before
the Board and thereafter an opportunity of making such answer to argument
that may be made by Representatives of the Order of Railroad Telegraphers
at the hearing.
In conclusion, the Carrier respectfully requests that the claims for the
thirty (30) individuals listed herein, which list was furnished by the General Chairman of the ORT, and all of the contentions by the Organization
in this case be denied.
OPINION OF BOARD:
Properly to understand and evaluate the facts
in this case, they must be placed in the setting of their time.
A description of events in a larger dispute, of which the dispute before
us is an aftermath, up until May 17, 1946, was released that day at the
White House, along with a statement by the President and the text of an
Executive Order seizing all the principal railroads of the country, including
the Carrier, and ordering the Director of the Office of Defense Transportation to operate them. We quote all three:
1.
"HISTORY OF THE CASE
A request for wage increases and 44 rules changes was made
by the five operating unions. The carriers on July 24, 1945, made
a counter proposal calling for 29 rules changes. At about the same
time proposals and counter proposals were made by 15 non-operating unions and the carriers.
The Railway Labor Act provides for negotiation, mediation
and voluntary arbitration, or if arbitration cannot be agreed upon,
Emergency Fact Finding Boards or Panels may be selected to hear
and make recommendations as to the settlement of wage or rules
issues.
In following the Railway Labor Act machinery, three of the
operating unions and the 15 non-operating unions, representing 85
per cent
of all the railroad employees, agreed to give wages first
attention, thereby taking the rules out of the discussion until the
wage requests were settled. These 18 organizations then agreed to
arbitrate the wage question. The arbitration boards heard the wage
case and awarded an increase of $1.28 per day.
3701-18
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The Brotherhood of Locomotive Engineers and the Brotherhood of Railroad Trainmen declined to separate the rules and wage
requests, and upon failure to reach a settlement in mediation declined to arbitrate. They took a strike vote, thus creating a situation requiring the appointment of an Emergency Board under Section 10 of the Railway Labor Act. The Emergency Board heard
the case and recommended a wage increase of $1.28 per day and
some rules changes. It remanded the other proposed rules changes
to the parties for negotiations under a time schedule which would
permit the completion of the job.
The Brotherhood of Locomotive Engineers and the Brotherhood of Railroad Trainmen rejected the Emergency Board recommendation in its entirety.
Under Section 10 of the Railway Labor Act no change except
by agreement may be made in conditions out of which a dispute
arose until 30 days after the filing of an Emergency Board recommendation. The recommendation was filed April 18, 1946.
The union executive officers of the Engineers and Trainmen
set 4 P. M., May 18, 1946 as the date for striking unless a settlement satisfactory to them should be reached prior to that time.
The order providing for the taking over of the roads by the
Government contains guaranties of preservation of existing wage
rates and working conditions except as they may be changed by
agreement in accordance with the provisions of the Railway Labor
Act.
STATEMENT BY THE PRESIDENT
I have today by Executive Order directed J. Monroe Johnson,
Director of the Office of Defense Transportation, to take over the
country's railroads and operate them in the name of the United
States Government.
A strike has been called for 4 P. M. tomorrow by two of the
twenty railroad labor organizations-the Brotherhood of Locomotive Engineers and the Brotherhood of Railroad Trainmen. These
two have declined to accept the findings and recommendations of
an Emergency Board created by the President under the Railway
Labor Act. In the strike situation thus confronting us, governmental seizure is imperative for the protection of the rights of our
citizens.
It is essential to the public health and to the public welfare
generally that every possible step be taken by the government to
`assure to the fullest possible extent continuous and uninterrupted
transportation service.'
I call upon every employee of the railroads to cooperate with
the government to this end by remaining on duty.
I have asked the parties involved to continue negotiations with
the view to reaching an agreement whereby the railroads can be
returned to private ownership at the earliest possible date.
III
EXECUTIVE ORDER
POSSESSION, CONTROL, AND OPERATION OF
CERTAIN RAILROADS
WHEREAS after investigation I find and proclaim that as a
result of labor disturbances there are interruptions, or threatened
3701-19
19
interruptions, of the operations of the transportation systems,
plants, and facilities owned or operated by carriers by railroad
named in the list attached hereto and made a part hereof; that
the war effort will be unduly impeded and delayed by such interruptions; that it has become necessary to take possession and assume
control of the said transportation systems, plants, and facilities
for purposes that are needful or desirable in connection with the
present wartime emergency; and that the exercise, as hereinafter
specified, of the powers vested in me is necessary to insure in the
national interest the operation of the said transportation systems,
plants, and facilities:
NOW, THEREFORE, by virtue of the power and authority
vested in me by the Constitution and laws of the United States,
including section 9 of the Selective Training and Service Act of
1940 as amended by section 3 of the War Labor Disputes Act
(57 Stat. 164), the Act of August 29, 1916 (39 Stat. 619, 645),
and the First War Powers Act, 1941 (55 Stat. 838), as President
of the United States and Commander in Chief of the Army and
Navy, it is hereby ordered as follows:
1. Possession and control of the transportation systems,
plants, and facilities owned or operated by the carriers by railroad
named in the list attached hereto and made a part hereof are
hereby taken and assumed, through the Director of the Office of
Defense Transportation (hereinafter referred to as the Director),
as of four o"clock P. M., May 17, 1946; but such possession and
control shall be limited to real and personal property and other
assets used or useful in connection with the operation of the transportation systems of the said carriers. If and when the Director
finds it necessary or appropriate to carry out the purposes of this
order, he may, by appropriate order, take possession and assume
control of all or any part of any transportation system of any other
carrier by railroad located in the continental United States.
2. The Director is directed to operate, or arrange for the
operation of, the transportation systems, plants, and facilities taken
under or pursuant to this order in such manner as he deems necessary to assure to the fullest possible extent continuous and uninterrupted transportation service.
3. In carrying out the provisions of this order the Director
may act through or with the aid of such public or private instrumentalities or persons as he may designate, and may delegate such
of his authority as he may deem necessary or desirable, with power
of successive redelegation. The Director may issue such general
and special orders, rules and regulations as may be necessary or
appropriate to carry out the provisions, and to accomplish the purposes, of this order. All Federal agencies shall comply with the
directives of the Director issued pursuant to this order and shall
cooperate to the fullest extent of their authority with the Director
in carrying out the provisions of this order.
4. The Director shall permit the management of carriers
whose transportation systems, plants, and facilities have been taken
under, or which may be taken pursuant to, the provisions of this
order to continue their respective managerial functions to the maximum degree possible consistent with the purposes of this order.
Except so far as the Director shall from time to time otherwise
provide by appropriate order or regulation, the boards of directors,
trustees, receivers, officers, and employees of such carriers shall
continue the operation of said transportation systems, plants, and
facilities, including the collection and disbursement of funds thereof,
in the usual and ordinary course of the business of the carriers,
in the names of their respective companies, and by means of any
agencies, associations, or other instrumentalities now utilized by
the carriers.
3701--20
5. Except so far as the Director shall from time to time
otherwise determine and provide by appropriate orders or regulations, existing contracts and agreements to which carriers whose
transportation systems, plans, and facilities have been taken under,
or which may be taken pursuant to, the provisions of this order
are parties, shall remain in full force and effect. Nothing in this
order shall have the effect of suspending or releasing any obligation owed to any carrier affected hereby, and all payments shall be
made by the persons obligated to the carrier to which they are
or may become due. Except as the Director may otherwise direct,
there may be made, in due course payments of dividends on stock,
and of principal, inerest, sinking funds, and all other distributions
upon bonds, deentures, and other obligations; and expenditures
may be made for other ordinary corporate purposes.
6. Subject to applicable provisions of existing law, including
the orders of the Office of Defense Transportation issued pursuant
to Executive Order 8989, as amended, the said transportation systems, plants, and facilities shall be managed and operated under
the terms and conditions of employment in effect at the time possession is taken under this order. The Director shall recognize the
right of the workers to continue their membership in labor organizations, to bargain collectively through representatives of their own
choosing with the representatives of the owners of the carriers,
subject to the provisions of applicable statutes and Executive Orders, as to matters pertaining to wages to be paid or conditions to
prevail after termination of possession and control under this
order; and to engage in concerted activities for the purpose of
such collective bargaining or for other mutual aid or protection,
provided that in his opinion such concerted activities do not interfere with the operation of the transportation systems, plants, and
facilities taken hereunder, or which may be taken pursuant hereto.
7. Except as this order otherwise provides and except as the
Director may otherwise direct, the operation of the transportation
systems, plants, and facilities taken hereunder, or which may be
taken pursuant hereto, shall be in conformity with the Interstate
Commerce Act, as amended, the Railway Labor Act, as amended,
the Safety Appliance Acts, te Employers' Liability Acts and other
applicable Federal and Sate laws, Executive Orders, local ordinances, :and rules and regulations issued pursuant to such laws,
Executive Orders, and ordinances.
8. Except with the prior written consent of the Director,
no receivership, reorganization, or similar proceeding affecting any
carrier whose transportation system, plants, and facilities are taken
hereunder, or which may be taken pursuant hereto, shall be instituted, and no attachment by means process, garnishment, execution, or otherwise shall be levied on or against any of the real or
personal property or other assets of any such carrier, provided
that nothing herein shall prevent or require approval by the Director of any action authorized or required by any interlocutory or
final decree of any United States court in reorganization proceedings now pending under the Bankruptcy Act or in any equity receivership cases now pending.
9. For the purposes of paragraphs 1 to 8, inclusive, of this
order, there are hereby transferred to the Director the functions,
powers, and duties vested in the Secretary of War by that part of
Section 1 of the said Act of August 29, 1916, reading as follows:
'The President, in time of war, is empowered, through
the Secretary of War, to take possession and assume control of any system or systems of transportation, or any
part thereof, and to utilize the same, to the exclusion as
far as may be necessary of all other traffic thereon, for
3701-21
21
the transfer or transportation of troops, war material and
equipment, or for such other purposes connected with the
emergency as may be needful or desirable.'
10. The Director may request the Secretary of War to furnish protection for persons employed or seeking employment in
the plants, facilities, or transportation systems of which possession is taen hereuder, or which may be taken pursuant hereto,
to furnish protection for such plants, facilities, and transportation
systems, and to furnish equipment, manpower, and other facilities
or services deemed necessary by the Director to carry out the
provisions, and to accomplish the purposes, of this order. The
Secretary of War is authorized and directed, upon such request,
to take such action as he deems necessary to furnish such protection, equipment, manpower, or other facilities or services.
11. From and after four o'clock P. M., on the said 17th
day of May, 1946 all properties taken under this order shall be
conclusively deemed to be within the possession and control of the
United States without further act or notice.
12. Possession, control, and operation of any plant or facility,
or of any transporation system, or any part thereof, or of any
real or personal property taken under this order, or wich may be
taken pursuant hereto, shall be terminated by the Director when
he determines that such possession, control, and operation are no
longer necessary to carry out the provisions, and to accomplish the
purposes, of this order.
The same day that the above quoted documents were issued, Colonel
J. M. Johnson, Director of the Office of Defense Transportation, appointed
Charles H. Buford as "Federal Manager of Government Controlled Railways". Mr. Buford almost immediately issued to
the railroads "Notice and
Order No. 1" which we quote:
"NOTICE AND ORDER NO. 1
To each carrier by railroad named in the Executive Order of the
President of the United States, dated May 17, 1946, concerning possession, control, and operation of certain railroads:
1. By order of the director of the Office of Defense Transportation, dated May 17, 1946, the authority vested in said director
by Executive Order of the President of the United States, dated
May 17, 1946, whereby possession and control of your transportation system, plants, and facilities are taken and assumed by the
United States as of 4:00 o'clock p. m., May 17, 1946, has been
duly delegated by said director to the undersigned as Federal Manager of Government Controlled Railroads.
2. Until further order, you are hereby directed to continue
operations in the usual and ordinary manner and course of business as a going enterprise, in your own name, and by means of
the instrumentalities, agents, officers, and employees customarily
employed by you, as fully as if possession and control had not been
taken and assumed by the United States, subject, however, to the
terms of said executive order, and to all general and special orders,
rules, and regulations which may be issued thereunder. Title to
the properties and other assets of which possession has been taken
remains in the owners thereof. Possession by the United States is
not exclusive and the United States asserts, and will Assert, only
such control over the properties in its limited possession as may be
necessary to accomplish the purposes of the executive order.
3701-22
22
3. All personnel, officers, agents, and employees, employed
by you in the operation of your transportation system, plants, and
facilities, are called upon to resume or continue the performance
of their usual duties and in the customary manner until otherwise
ordered. No such officer, agent, or employee shall be deemed to
be an official or employee of the United States.
4. Subject to the terms of the executive order, wage scales
and working conditions in effect on the effective date of the executive order shall be maintained and full recognition shall be given
to the rights of the employees and all classes thereof. All deductions for the benefit of employees now being made by law or agreement, including insurance payments, railroad retirement and unemployment compensation deductions, and other deductions of every
kind, and all arrangements governing the payment of wages, including bond purchase plans, shall be continued, subject to any
legal right of discontinuance.
6. Subject to the terms of the executive order, the operation
of the carrier shall be in conformity with the Intersate Commerce
Act, as amended, the Railway Labor Act, as amended, the Safety
Appliance Acts, and Employers' Liability cts, and other applicable
federal and stae laws, executive orders, local ordinances, and rules
and regulations issued pursuant to such laws, executive orders, and
ordinances.
6. The accounts of the carrier will continue to be kept in
the customary manner. The carrier will assume full financial responsibility for the operation of its properties; will retain all income or proceeds resulting from such operations; and will pay all
expenses incurred by the carrier in connection with such operations.
7. Until further order, carriers will remain subject to suit as
heretofore and to the levy of attachments by mesne process, garnishment execution or otherwise, on or against the properties or
other assets of such carriers, but no receivership, reorganization, or
similar proceedings affecting any carrier whose transportation system, plants, and facilities are or may be taken under the executive
order shall be instituted without the prior written consent of said
director. Nothing herein shall be deemed to require approval of
any action authorized or required by any interlocutory or final
decree o-f any United States Court in reorganization proceedings
now pending under the Bankruptcy Act or any equity receivership
cases now pending.
8. Any carrier which objects to assuming responsibility for
any action which it is required to take pursuant to this order, or
to any other order, rule, regulation, or direction issued by the
director of the Office of Defense Transportation, the federal manager of government controlled railroads, or by any duly authorized representative of the director or the federal manager, shall
protest such order, rule, regulation, or direction, to the federal
manager, in writing . . . .
9. A copy of said executive order and a copy of this notice
and order shall be posted by each carrier on each bulletin board
maintained by the carrier at its principal offices, division and section headquarters, stations, depots, shops and yards."
Mr. Buford also sent out to all executives and employers the following
notice:
"NOTICE
To all Execgtives and Employees:
Effective at 4:00 o'clock P. M., May 17, 1946, the transportation system, plants and facilities of the Texas and New Orleans
3701-23
93
Railroad Company are in the possession and control of the United
States by Executive Order of the President dated May 17, 1946.
The Government expects all 'persons employed by the Company to
fully and faithfully discharge their duties as such employees on
all occasions and to refrain from taking any action which might
lead to the curtailment or suspension of service vitally needed at
this time. Provision is made in the President's order for furnishing
protection for employees if such protection is needed.
/s/ Charles H. Buford
Federal Manager of Government Owned Railroads."
At about the same time, Mr. Buford's chief, Col. Johnson, sent the
following notice to the heads of all organizations representing railroad
employes of which this is a sample:
"AA36-XVA.WA741 13 Govt 1 Extra-Washington DC 17
533 PM
1946 May 17 PM 4:43
Rapid V. O. Gardner, Pres.,
Order of Railroad Telegraphers
3673 West Pine Blvd. StL.
The President having decided that the railroads are to be
operated in the possession and control of the Government I will
appreciate your cooperation in preserving and continuing rail
service.
/s/ J. M. Johnson, Director
Office of Defense Transportation."
Seizure of the railroads led Messrs. Johnson and Whitney of the Engineers and Trainmen, respectively, to postpone their strike, and the country
breathed more easiy. The general public undoubtedly elt that railroad
men had no right to paralyze the nation's economy in the midst of its conversion from war to peacetime purposes: that railroad employes must seek
means other than leaving their jobs for settling their disputes.
Negotiations continued, under the aegis of government officials, including the President himself. But they proved to be fruitless. Defying both
the law and public opinion, Messrs. Whitney and Johnston again called a
strike, effective as of 4:00 P. M., May 23.
The railroads ground toward a complete standstill after the appointed
hour. By nightfall, practically no trains were running. Negotiations in
Washington continued, however, incessantly. The press and public clamored
for speedy action. Everyone knew that the Government could not, and
would not, tolerate the continuation of this paralyzing walk-out for long.
President Truman that night (May 24) gave voice to that sentiment
in a radio talk to the country. We quote its last paragraphs:
"I am a friend of labor. You men of labor who are familiar
with my record in the United States Senate know that I have been
a consistent advocate of the rights of labor and of the improvement
of labor's position. I have opposed and will continue to oppose
unfair restrictions upon the activities of labor organizations and
upon the right of employees to organize and bargain collectively.
It has been the basic philosophy of my political career to advocate
those measures that result in the greatest good for the greatest
number of our people. I shall always be a friend of labor.
But in any conflict that arises between one particular group,
no matter who they may be, and the country as a whole, the welfare of the country must come first. It is inconceivable that in our
democracy any two men should be placed in a position where they
can completely stifle our economy and ultimately destroy our coun-
3701-24
24
try. The Government is challenged as seldom before in our history.
It must meet the challenge or confess its impotence.
I would regret deeply if the act of the two leaders of these
unions should create such a wave of ill will and a desire for
vengeance that there should result ill-advised restrictive legislation that would cause labor to lose those gains which it has rightfully made during the years.
As President of the United States, I am the representative of
140 million people and I cannot stand idly by while they are being
caused to suffer by reason of the action of these two men.
This is no contest between labor and management. This is a
contest between a small group of men and their government. The
railroads are now being operated by your government and the strike
of these men is a strike against their government. The fact is that
the action of this small group of men has resulted in millions of
other workers losing their wages. The factories of our country
are far behind in filling their orders. Our workers have good jobs
at high wages but they cannot earn those wages because of the
willful attitude of these few men. I cannot believe that any right
of any worker in our country needs such a strike for its protection.
I believe that it constitutes a fundamental attack upon the rights of
Society and upon the welfare of our country. It is time for plain
speaking. This strike with which we are now confronted touches
not only the welfare of a class but vitally concerns the well-being
and the very life of all our people.
The railroads must resume operation. In view of the extraordinary emergency which exists, as President of the United States,
I call upon the men who are now out on strike to return to their
jobs anal to operate our railroads. To each man now out on strike
I say that the duty to your country goes beyond any desire for
personal gain.
If sufficient workers to operate the trains have not returned
by 4 p.m. tomorrow, as head of your government I have no alternative but to operate the trains by using every means within my
power. I shall call upon the Army to assist the Office of Defense
Transportation in operating the trains and I shall ask our armed
forces to furnish protection to every man who heeds the call of his
country in this hour of need.
This emergency is so acute and the issue is so vital that I
have requested the Congress to be in session tomorrow at 4 p.m.
and I shall appear before a joint session of the Congress to deliver
a message on this subject."
Meantime, the railroads had inquired of Mr. Buford as to whether
Order No. 1 required them to guarantee employment to all employes who
were willing to work. At 1:24 P. M. on May 24 he sent a wire to the railroads (including the Carrier) which said in part: "In order to clear up the
matter, please be advised that such instructions do not require you to retain
employes in service for whom you have no work. In reducing forces, existing agreements should be followed."
When Messrs. Whitney and Johnson the afternoon of May 25 had
still
failed to come to terms with the railroads, President Truman left for the
Capitol to ask Congress for the drastic legislation necessary to move the
trains. While he was en route Messrs. Whitney and Johnson capitulated;
word of the settlement reached the President after he had started to talk.
Train movements were resumed at 4:00 P. M., or shortly thereafter.
Careful :reading of the documents quoted above and the vivid memory
of public sentiment at the time of the strike leads us to several conclusions
which are important to the consideration of the case before us:
3701-25
25
(1) That the public, through its government, had seized and was
operating the railroads in an effort to insure continuous movement of
trains.
(2) That the public felt no effort should be spared to prevent the
strike, and, once it had started, to bring it to a speedy conclusion. In
implementing the public will, the President (and Colonel Johnson) had
urged all railroad employes to stay on the job and, once the strike had
started, had commended those who had remained at their posts.
(3) That Mr. Buford, in approving force reductions in event of no
work, must have meant, in the light of the above conclusions, that force
reductions would be in order (and probably necessary) if the strike was
prolonged. Since both his immediate chief and the President of the United
States have urged everyone to stay on the job, he scarcely could have meant
that lay-off s were in order the moment the strike started.
With these facts and conclusions serving as a back drop, we can proceed to consideration of the case at hand.
The Carrier, apparently starting on May 23 (before Mr. Buford's telegram had been received) and continuing into May 24 (the record is cloudy
as to the exact time) sent the following notice to the claimants:
"Due to strike and curtailment of service incident thereto,
your position is abolished effective at the end of tour of duty
today."
Starting May 26, the day after termination of the strike, the claimants
were restored to their positions. A few did not get back to work until
May 27.
The Organization claims violation of various clauses of its agreement
which protect employment (v. claim) and also the violation of the Federal
Manager's Order No. 1. The Carrier relies partially on Article XXXI of the
Agreement which says, in part:
11
if commercial or other conditions change materially,
the Company reserves the right to abolish an office, or reduce the
force without notice to conform to such modified conditions.
The Carrier counters the charge of Order 1 violation by citing the Bulford telegram relating to force reductions. (v. supra.)
This Board is without authority to decide whether the Carrier violated
the Federal Manager's Order Number 1. This Board is confined by law to
the settlement of disputes arising out of the interpretation of agreements.
Award 3691. Our long recital of events preceding, surrounding and immediately following the origin of this dispute was given for two purposes:
(1) To show that the Federal Government, operating the railroads at
the time, had no intention that its agents, the Carriers, should under their
agreements or otherwise, hastily dismiss hose employes who had stayed at
their posts when the strike started.
(2) To show that neither the general public nor the government nor
the railroads (including the Carrier before us) expected the strike to last
long.
The latter point in itself is sufficient ground for us to find that the
Carrier violated the collective intent of the Agreement sections cited by the
Organization. Awards
3655, 3661, 3680.
The Carrier maintains, however, that Article XXXI quoted in part
supra, gives it authority in such cases which it might not otherwise have.
We agree, to the extent that the Organization cannot challenge precipitate
abolition of jobs or reduction of force under certain circumstances. However, the abolition of jobs must be bona fide under any circumstances to
meet the requirements of the Agreement. We do not believe the abolition
3701-2s
26
of the jobs we have before us were bona fide; it was merely a lay-off which
the Carrier knew would be of short duration.
We are strengthened in this opinion by the fact that one employe
attempted to exercise his seniority, as he was entitled to do in the event of
his position being abolished
bona fide
The Carrier refused his request and
told him to disregard the notice that his position had been abolished. (This
was after operation had been resumed.)
We will, therefore, find that the Carrier violated the Agreement, to the
extent indicated in this opinion, and sustain the claims.
FINDINGS: The Third Division of the Adjustment Board, after giving
the parties to this dispute due notice of hearing thereon, and upon the whole
record and all the evidence, finds and holds:
That the Carrier and the Employes involved in this dispute are respectively carrier and employes within the meaning of the Railway Labor Act,
as approved June 21, 1934;
That this Division of the Adjustment Board has jurisdiction over the
dispute involved herein; and
That the Carrier violated the Agreement as indicated in the Opinion.
AWARD
Claims sustained, to the extent of requiring the Carrier to reimburse
the specified employes for wage loss on those days when they were improperly laid off.
NATIONAL RAILROAD ADJUSTMENT BOARD
By Order of Third Division
ATTEST: H. A. Johnson
Secretary
Dated at Chicago, Illinois, this 6th day of November, 1947.