PARTIES TO DISPUTE:


STATEMENT OF CLAIM: Claim of the System Committee of the Brotherhood (GL-7055) that

(1) Carrier violated the terms and provisions of the Agreement of February .'_5, 1971, when it refused to apply the wade increase of 5% effective January.l, 1970, to Messrs. W. T. Donovan, H. F, Oadhue, C. D. Hatfield, and R. P. Thibault, each of whom resigned from service during the year 1970 for the purpose of retiring from service and securing an annuity under the provisions of the Railroad Re
(2) That Carrier shall now be required to compensate Messrs. Donovan, Gadhue, Hatfield and Thiba 1, 1970, until the date of their resignation for the purpose of retiring from service.

OPINION OF BOARD; The claim herein was filed on behalf of four claimants,
all of whom left the Carrier's service in 1970, contending that Carrier violated the February 25, 1971 National Mediation Agreement by not providing claimants with the 5% wage increase provided therein for the period they were employed after January 1, 1970. Section 1(i) of the February 25, 1971 Agreement provides, in pertinent part, "All employees who had an employment relationship after they are now entitled (SI) under this Section 1 regardless of whether they are now in the employ of the carrier except persons who prior to December 11, 1970
have voluntarily left the service of the carrier-other than to retire "

Claimants contend they are entitled to the 5% wage increase since they left Carrier's service for the purpose of retiring while Carrier maintains that they left its service to accept a separation allowance and not to retire. It is uncontroverted that all the claimants received an annuity under the Railroad Retirement Act ef thereafter except claimant Thibault who received a disability annuity under the Railroad Retirement Act. However, it is also undisputed that they also received a separation allowance upon leaving Carrier's employ.

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This Board is thus called upon to determine why, in fact, claimants terminated their employment with Carrier - to retire or to accept a separation allowance? Of course, the best way to make such determination is to question the claimants relative to their intent. Yet since we are unable to do so, we must ascertain their subjective intent from the facts of record herein.

Upon termination of employment with Carrier, claimant Donovan had 46 years service with Carrier but the record is silent as to his age; claimant Gadhue had 47 years service and was 71 years old; claimant Hatfield had nearly 28 years service and he was over 68 years old; while claimant Thibault had 42 years service and was 59 years old. All applied for and received an annuity under the. Railroad Retirement Act except Thibault who received a disability annuity. We are of the opinion that relative to claimants Donovan, Gadhue and Hatfield taking into account their age and length of service with Carrier, their primary reason for leaving their employment was for the purpose of retiring. The separation al annuity. Thus the separation allowance was at best a secondary reason for their termination. However, the facts surrounding claimant Thibault's departure are dissimilar from with the fact he did rot secure a retirement annuity leads us to conclude that his purpose for terminating his service was other than to retire thus he comes within the exclusionary clause of the February 25, 1971 Agreement and is not entitled to the 57 wage increase for his employment in 1970.

        FINDINGS: The Third Division of the Adjustment Board, upon the whole record and all the evidence, finds and holds:


        That the parties waived oral hearing;


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 Agreement was violated in accordance with Opinion.


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                    Award Number 19603 Page 3

                    Docket Number CL-19561

                    A W A R D


        Claim sustained for claimants Donovan, Gadhue and Hatfield.


        Claim denied for claimant Thibault.


                          NATIONAL RAILROAD ADJUSTMENT BOARD

                          By Order of Third Division


ATTEST
rxocutive Secretary

Dated at Chicago, Illinois, this 14th day of February 1973.

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