NATIONAL RAILROAD ADJUST1LEfiT BOARD
THIRD DIVISION Docket-Number
Yd-21496
(Brotherhood of Maintenance of Way Employes
PARTIES TO DISPUTE:
(St. Johnsbury & Lamoille County Railroad
STATEMENT OF CLAM: Claim of the System Committee of the Brotherhood
that:
(1) Trackman Roger Stone shall be reimbursed for all wages lost
since Febniary 1,
1975
because he was deprived of the exercise of displacement rights. (Carrier's 'File - Union Maintenance of Way')
(2)
Each employe (named below) shall be paid in full for all
vacation time due them in the calendar year
1974
(specified below) which
each of them earned in the calendar year
1973.
VACATION VACATION
NAME PERIOD NAME PERIOD
William H. Arel 15 days Roy E. Lamphire 10 days
Norman J. Bergeron
15
" Kenneth J. Mercier 10 "
Leonard Bray 15 " Kirk J. Patch 10 "
Kenneth C. Hill
15
" Raymond Phillips 10 "
Richard G. Perkins
15
" Hermie Raymond 10 "
Robert L. Smith 10 "
Jeffery Bryce 10 " Archie A. Fournier 10 "
Fred Garrow 10 "
Albert N. Goodall 10 " William D. Garrow
5 "
Raymond Jettie 10 " Roger A. Stone
5 °
(Carrier's 'File - Union Maintenance of Way')
OPINION OF BOARD: The Organization may have sandbagged the Carrier into
paying this claim but they are entitled to protection
of the labor agreement.
By the end of
1972
the Carrier was effectively bankrupt.
It had filed an apDlication with the Interstate Commerce
Commission to abandon its entire line. There were protests against the
abandonment from a wide variety cf interested groups including "railway
labor." When it became clear the State of Vermont would purchase the
railroad and provide the same basic service,.all parties withdrew their
protests.
To formalize agreements reached, all parties entered into a
stipulation providing in substance that they would urge the Commission to
Award Nnber 21522 Page 2
Docket Number W-21496
grant the application as pro--ptly as possible, on condition that operation
of the line be continued by the Ve=ont Transportation Authority, or some
other purchaser, which would be required to continue to.provide the
necessary rail service.
Based on this stipulation, the Interstate Commerce Commission
approved the abandonment, subject to the concurrent condition of continued
operations.
The State of Vermont purchased the railroad and leased it to an
operator which retained the same name, "St. Johnsbury F Lamoille County
Railroad" and vrovided the same basic service as before with the same
employes.
According to the ICC, "Labor representatives do not oppose the
abandonment under the stipulation agreement and have made no request for
conditions for the protection of employees." The stipulation on behalf
of such labor representatives was signed by the United Transportation
Union.
Against this background, the employes here claim pay for vacation
time due them in calendar year.1974, which was earned in calendar year
1973. (1)
The claim of Trackman, Roger Stone, in Docket W-21496 to be
reimbursed for lost wages because he was deprived of displacement rights
was not sufficiently established at the Board; accordingly it will be denied.
The Carrier's case against paying these vacation claims is
stronger on equitable grounds than on the law.
From the beginning the Carr- ier has taken the position that
whatever vacation pay claimants may be entitled to were earned and vested
under the prior management mad did mat survive the order of the Interstate
Commerce Commission permitting the abandonment and the subsequent
purchase of the railroad by the State of Ver=ont. In short, -the Carrier
denied the claims on the basis that a collective bargaining agreement did
not exist between the Carrier a.ad the Brotherhood of .Maintenance of Way
Employes after the sale of the railroad. To support this conclusion,
(1) In Docket W-214906 concerning vacation claims in 1974 there
are 18 employes, 14 of whom are also named in Award 21524. In
Award 21524 concerning vacation claims in 1973 and 1972 there are 25
employes 14 of whom are also named in Award 21522
As the basis and reasoning applicable to each claim is the
same, the -Opinion of the Board in Docket K1-?5496 will apply with equal
effect in Award 21524: -
Award Number
21522
Page
3
Docket Number
N'9-21496
the Carrier emphasizes that the services of the National Mediation Hoard
were invoked by this Union on April
3, 1975
to investigate and determine
who may represent, for the purposes of the Railway Labor Act, certain
employes in the class or craft of maintenance of way employes. The
Carrier notes with special emphasis the statement by the National
Mediation Hoard that:
"At the time application was received, these employees
were.not represented by any organization or individual."
The Organization maintains, to the contrary, that it had a
collective bargaining agreement with this railroad before, during and
after the ICC authorization to abandon, concurrent with the sale to the
State of Vermont, and that it neither waived its rights under this
agreement nor joined with other railroad labor organizations in
surrendering vested rights under the collective bargainin.g agreement at
the time of the sale of tlla property to the State of Versont. As to the
certification by the National Mediation Hoard in
1975,
the employes
assert that the election (which certified this union) was requested to
settle once and for all with the new management of this railroad that
this organization represented the maintenance of way employes, noting in
particular in its underlying letter to the
hfA$
on April
3, 1975
that the
request for certification was prompted only because "the new owners
refused to recognize this organization as the duly accredited representatives of Maintenance of Way employes on this property" despite that union
having held an agreement on this property since
1942
and that, following
action by the Interstate Commerce Commission, the railroad did not cease
to operate but in fact continued to operate in the same manner with the
same employes performing the same duties. Thus the request of the union
invoking the services of the National Mediation Hoard was merely "to
verify" their certification.
On these facts, this Organization took no part in protecting
the interests of its employes at the time the ICC was considering
authorizing the abandonment of the line which would have wiped out all
jobs. And this union left undisturbed a public record in which the ICC
clearly believed it had before it such labor organizations as were
representing all the railroad employes on this property. And it made no
contribution to improve the chances of economic success of the railroad
under acv management, as the parties to the stipulation had done, as by
agreeing to certain changes is railroad operations and practices without
exacting a price or condition for such concession, as in the agreement
of the United Transportation Union not to request protective conditions
for employes adversely affected by the abondonment and subsequent
realignment of operations.
Award Number 23.522 Page 4
Docket Plumber iv-21496
The case for ecuitable estoppel against the claims of the
Organization here could hardy be stronSer. But the Carrier has chosen
to defend against the claim on the basis that the labor agreement between
the parties did not survive the sale of the property to the State of
Vermont and the question of the validity of an agreement under such
conditions is too imuortant to take the chance that a denial of whe
claim on the basis of equitable estoppel might be taken as an affirmation
by this Board that a labor agreement is in fact subject to termination
upon change in ownership of railroad property. To the contrary, the law
seems to be well settled that the collective bargaining agreement of the
parties survives a change in ownership of the property. (2)
The Carrier also argues now, before the Board, that the claims
were not timely filed, noting with special attention that the claims for .
pay were presented for vacation time earned as much as two years prior
to the claim for payment.
The evidence inn the record does not support Carrier's contention
on a procedural defect in the filing of these claims. The only rebuttal by
the Carrier on the property against the claims was that they were not valid
against this railroad because there did not exist a collective bargaining
agreement between the parties.- The Carrier's statement that:
"Vacation rights were earned prior to abandonment and
the employees waived rights at abandonment proceedings."
and that
"If there is liability then it is the prior owner and
operators for the State of Vermont which acquired the
railroad by a purchase in 1973 and the petitioner should
apply to these sources for adjustment."
(2) The Organization cited awards by this Division as supporting
the union view that the labor agreement survives a change in ownership,
such as 4756-4761. These decisions only generally support the
organization's position. It does seem that so important an issue in this
case would have been better developed but notice can be taken that many
labor agreements, particularly in the transportation industry, such as bus
and airline, contain provisions for the protected employes to follow the
work upon sale, acquisition or merger of the property.
Award Number
21522
Page
5
Docket Number
MW-21496
indicates that the Carrier did not contest the timeliness of the filing
of the claims.
On the record: the claims were timely filed; the certification
election won by this union in
1975
verified the authority of this
Organization to represent Maintenance of Way Employes on this property;
the Organization did not waive any vested rights under the ICC order;
the Organization did not authorize the United Transportation Union to
speak for it before the ICC; and, although a strong argument against the
claims can be made on the basis of equitable estoppel, the vacation
claims should be sustained because the labor agreement survived the
change in ownership; but Claim No. 1 is denied.
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 Agreement was violated in accordance with the Opinion.
- A W A R D
Claim No. 1 is denied.
Claim No.
2
is sustained.
NATIONAL RAILROAD ADJUSTMENT BOARD
By Order of Third Division
ATTEST:
Executive Secretary
Dated at Chicago, Illinois, this 19th day of May
1977.