(Brotherhood of Railway, Airline and ( Steamship Clerks, Freight Handlers, ( Express and Station Employes PARTIES TO DISPUTE: (Chicago, Milwaukee, St. Paul and Pacific ( Railroad Company

1) Carrier violated, and continues to violate the Clerks' Rules Agreement at Chicago, Illinois when it denied Employe K. 0. Sveen his right to exercise seniority to Position No. 15940, Rate Check Clerk in Seniority District No. 1.

 2) Carrier shall be required to compensate Employe Sveen the difference in the rate of pay of Position No. 15940 and his present position commencing on November 29, 1977 and continuing for each workday that he is denied his seniority, promotion and displacement rights.

 3) Carrier shall pay Employe Sveen interest at the rate of 7'h'/ compounded annually on the anniversary date of this claim on the amount due in Item 2 above.

 OPINION OF BOARD: Claimant was displaced on his position as Rate Analysis
 Clerk by a senior employe. Claimant then announced
 that he desired to exercise his seniority and displace a junior employe on
 a Rate Check Clerk position. The Carrier disapproved such displacement on
 the grounds that claimant did not possess sufficient fitness and ability to
 perform the functions of the position. It is the denial of the right to exer
 cise his seniority on that position that forms the basis for this claim.

 Rule 12 of the Agreement establishes the fitness and ability criteria for the exercise of seniority in situations such as that in the instant matter. It is axiomatic that the Carrier has the prerogative of determining fitness and ability and that absent a finding that its determination was arbitrary and capricious we will not disturb same. From the record we are unable to find that the Carrier's determination was arbitrary or capricious and hence will not sustain the claim. To the contrary, it was shown that Carrier based its decision on an objective review of claimant's past performance.


        FILINGS: 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 not violated.


                      A W A R D


        Claim denied.


                            NATIONAL RAILROAD ADJUSTMENT BOARD

                            By Order of Third Division


        ATTEST: Executive Secretary


        Dated at Chicago, Illinois, this 29th day of September 1980.