RATIOUL RAWOAD AWWD= BOAS
MLM DIVISION
Docket amber m,224214
Martin F. Scbeiaman, Referee
Brotherhood of Railva9, Airline sad Steamship Clerks,
Fieigbt Bandlera, Express and Station Fuployes
PARTIES 1V DISPUlg:
lmicago.. Milvaukre, St. Paul and Pacific Railroad Oampaay
S1'ATHiEN1' OF CLAN: Clain of the System Committee of the Brotherhood
' (GL-9466) that:
1) Carrier violated the Clerks' Rules Agreement in Seniority
District No. 3 when it arbitrarily reduced forces by
abolishing fifty-nine (59) positions effective 11:59 p.m.,
October 31, 1979 without giving the employes affected
thereby "hot less than five (5) working days advance
notice" nor did it issue a standard abolishment notice
as required. .
2) Carrier shall now be required to compensate all employes
affected an additional eight (3) hours pay at the rate
of their assigned positions which were abolished, or at
their protective rates, whichever is greater, for November
1, 1979 and for each workday until they were returned to
service:
Note: Claimants and positions held are as follows:
Jefferson D. D. Shy Pos. 31500, Agent
Manilla W. M. Baker " 28600, Agent
- 33500, Yard Clerk
Mapleton ,L. LaBrune " 33050, Agent
Marion J. E. Beeson
·'
26300, Clerk
D. Stinson 27020, Yard Clerk
. J. N. Sieclc 27030, Yard Clerk
K. Machacek " 27070, Yard Clerk
W. Soper 2 Relief Clerk
Perry A. M. Harrison " 26020, Genl. Clerk
R. M. Toile 27950, Agent
M. J. Garrett 34000, Roadmaster Clerk
B. R. Wyett " 33300, Yard Clerk
D.
L.
Booth 33310, Yard Clerk
J. Murphy 33320, Yard Clerk
L. D. Anderson Relief Clerk
L. L.
Fister 72140 Relay OPT.
R. Jackovich Protected Employs
J. Shafer
91
Award N=ber 24449
Page
2
Docket Nunber CL-24214
Portsmouth C. Klein 28750, Agent
Redfield A. D. Woodford 32700, Agent
Rockwell City R. DeWald 31650, Agent
Tama H. Reinier 27600, Agent
Mendota - 42059, Agt.-Opr.
Albert City R. L. Bentley 31750, Agent
Amana A. Lockridge 30800, Agent
Cedar Rapids R. Jeuhriag 88360, Rev.Clk-Gr.A
M. Symond 88410, Bill & Exp. Clk
G. Teachout 88460, Keypunch Opr-Clk
J. Dougherty 88470,
J. Barlon 88510, Cashier
R. aotZ 88520, Lsst. Cashier
J. Kelsey 88840, Rev.C1k-Gr. A
D. M. Buff 88900, Keypunch Opr-Clk
L. Dougherty 88910, Rev.Clk-Gr.B
J. Claypool _ 88920, Rev.Clk-Gr.B
D. Peyton 88930, Rev.Clk-Gr.B
J.
o.
Green . 88940, Bill & Ezp Clk
C. M. Buff 889$0, Rev.Clk-Gr.A
A. J. Hood 88960, Rev.C1k-Gr.A
- 16926, Agent
03350, Pzt. Serv. 7asp.
E. L. MxIlickle 33800, Chief Yd Clk
J. Kennedy 33810, Yard Clerk
E. Papesh 33820, Yard Clerk
K. Slater 33830, Yard Clerk
6. Atkinson 33860, Yard Clerk
- 33870, Yard Clerk
B. Kula 1 , Relief Clerk
J. Schloeman 2 , Relief Clerk
F. Canady 27040, Yard Clerk
Clive E. Schleisman 32600, Agent
Coon Rapids - 28500, Agent
Des Moines JoAnn Bucher 10810, Chief Clerk
Avard
Number 24449 page 3
Docket Number CL-24214
Council Bluffs C. Ziegenhorn 22870, Warehouse Foreman
M. E. Jensen
33600,
Yard Clerk (Ch)
N. Rice
33610,
ch Yard Clerk
D. Larsen
33620,
Ch -fa=d clerk
R. Bardman
33630,
Yard Clerk
R. Rodenburg
33640,
Yard Clerk
R. Bonar 1 , Relief Clk
- 2 , Relief Clk
Where occupants of positions are not listed, same to be determined
by joint check of Carrier's records.
3) The Carrier shall be required to compensate ail those
employer who were displaced by employer whose positions
were abolished an additional eight (8) hours pay at the
rate of their assigned position, or their protected
rate, whichever is the greater, for November 1, 1979
and for each workday until they were returned to service.
Note: The employes and monetary wage due those
employes displaced by employes whose positions
- were abolished to be determined by joint check
of payroll and other necessary records.
OPINION OF BOARD: This claim protests Carrier's abolishment on October
30,
1979,
of fifty-nine bulletined positions without providing
five working days' notice to the affected employees. The Organization maintains
that failure to give such notice violates Rule 32 of the Agreement. It see'cs appropriate compensati
abolition of the positions in question. Carrier defends on the grounds that
the abolition occurred as a result of an emergency, thereby obviating the need
for any notice to the affected employees, pursuant to Rule 72(a). Carrier also
raises certain procedural objections to the filing of the claim which are discussed below.
On December
19, 1977,
Carrier filed a petition for reorganization
under the Federal Bankruptcy Act, 11 U.S.C.
9205.
Pursuant to that petition,
Judge Thomas R. Mddillen of the United States District Court-Eastern Division
appointed Stanley E. G. Hillman, and later Richard B. Ogilvie as trustee. On
April
23, 1979
Trustee Hillman petitioned the Court to institute an embargo over
approximately eighty per cent of Carrier's lines. On June 1,
1979,
the Co;=t
denied the Trustee's embargo request.
On August 10,
1979,
the Trustee filed a second petition with the Court
seeking an embargo of certain of Carrier's lines as of October 1,
1979.
On
September
27, 1979
the Court ordered the embargo, effective Noverfoer 1,
19790
In addition, the Cou-rt's denial of the Trustee's first petition was reversed by
the U. S. Court of Appeals for the Seventh Circuit on October
2, 1979.
Award Number
24449
Page 4
Docket Number CL-24214
Accordingly,
o5
October 26, 1979, Judge MB~:illen issued Order No. 220C.
That order directed. Richard B. Ogilvie as Trustee of the Chicago, Milwaukee,
St. Paul and Pacific Railroad Company (Carrier) to embargo Carrier's freight
operations on certain of its lines effective 12:01 a.m. (C.D.T.). November 1,
1979. The Order reads, in relevant part:
"In accordance with Order No. 220A dated September 27, 1979,
this Court's decision dated the same date, and the decision of
the Court of Appeals for the Seventh Circuit in In Re Cnica o
Milwaukee St. Paul and Pacific Railroad Co., Nos- 79-79-177 79-1675,
79-1
33,
79-1
b(
7th Cir. Opt. 2, 1979
, rr
Is aMMi oitDMED teat:
1. Richard B. Ogilvie, as Trustee of the Chicago, Milwaukee,
St. Paul and Pacific Railroad Company is directed to embargo
at 12:01 a.m. C.D.T., on November 1, 1979 all of the Debtor's
freight operations on lines which are not shown on Appendix
A, either as solid or dotted lines, nor listed on Appendix B,
or Appendix C.
5. As of November 1, 1979, or as soon thereafter as is
practical, the Trustee shall furlough all employees not required for the services and operations
of the Debtor's property or the finalization, approval and
implementation of a plan of reorganization." (9nphasis supplied.)
On October
30,
1979, Mr. L. W. Harrington, Carrier's Vice President -
Management Services issued a memorandum addressed to "Employes Affected by Force
Reduction" in which he advised the recipients that as a result of the Court
ordered embargo of certain Ydlwaukee Road lines their positions "may be affected
by force reduction effective November 1, 1979."
Also on October 30, 1979, Mr. J. W. Stuckey, Division Manager issued a
notice to the occupants of fifty-nine positions at a number of Carrier's facilities.
The notice provided, in relevant part, that:
"In view of the U. S. District Court-directed embargo of
certain Milwaukee Road Lines, your position is abolished effective
11:59 p.m. (C.S.T.), October
31,
1979 under the emergency force
reduction provision of your union contract. This will confirm
verbal advice given you in this regard."
As a result of Cxrier's action, the Organization filed the instant claim
on December 12, 1979 with Mr. D. W. Schultz, Assistant Division Manager - Administration. It was den
in the usual manner on the property, whereupon it was appealed to this Board for
Adjudication.
The Organization contends that the Carrier's abolition of the above
referenced positions violates the Agreement between the parties, particularly
Rule 12.
Award Number 24449 Page 5
Docket Timber CL-24214
Rule 12 reads, in relevant part:
"Rule 12 - Reducing Forces
(a) In reducing forces, employes whose positions are to
be abolished will be given not less than five (5) working
days advance notice except:
1. Rules, agreements or practices, however established,
that require advance notice to employes before abolishing
positions or making force reductions are hereby modified
to eliminate any requirement for such notices under
emergency conditions such as flood. snow storm, hurricane,
tornado, earthquake, fire or labor disoute other than
as covered by subparagraph 2 below, provided that such
conditions result in suspension of a carrier's operation
in whole or in part. It is understood and agreed that
such force reductions will be confined solely to those
work locations directly affected by any suspension of
operations. It is further understood and agreed that
notwithstanding the foregoing, any employe who is af
fected by an emergency force reduction and reports for
work for his position without having been previously
notified not to report, shall receive four hours' pay
at the applicable rate for his position. If an employe
works any portion of the day he will be paid in accordance
with existing rules.
(c)When bulletined positions are abolished, notice will
be placed on all bulletin boards in the seniority district
affected and a copy of same will be furnished to the local
and general chairman. Such bulletin notice shall include
the names of employes filling the positions abolished of
the time abolished." (fphaais supplied.)
In the Organization's view, Rule 72 (a) is clear and unambiguous in that
employes whose positions are abolished must be given five (5) working days' notice
of such abolishment except for the emergency circumstances listed in the rule. Obviously, the Court
earthquake, fire or labor dispute." Thus, the Organization asserts that it is
not an emergency under Rule 12(a).
Furthermore, according to the Organization, the embargo cannot be
considered as emergency even if other events not listed in Rile 12 (a) are deemed
to constitute emergencies. This is so because Carrier was well aware as of
September 27, 1979 that its lines would be embargoed on November 1, 1979, unless
the Court of Appeals reversed the District Court. Also, the Organization contends
that on October 26, 1979, the date of Judge McMillen's final order, it advised
Carrier's representatives that they would be in violation of the Agreement if Car
rier did not give proper notice of the abolishmeats resulting from the embargo order.
Award Number
24449
Page
6
Docket Number CL-24214
Additionally, the Organization argues that Carrier's actions in this
dispute violate Rule 12(c), second paragraph. That clause requires that when
all bulletined positions are abolished, "notice will be placed on all bulletin
boards in the seniority district affected and a copy of same will be furnished
to the local and general chairman." Rule 12 (c) is explicit and allows for no
exceptions. Thus, the Organization contends that Carrier violated the rule
when it failed to send co_oies of the abolishment notices to either its local
or general chairman.
Accordingly, the Organization seeks additional eight hours compensation for the incumbents of th
1979
and
each work day thereafter until they were returned to service (Item 2 of claim).
Additionally, the Organization asks that all employees displaced by those
holding the bulletined positions listed above be similarly compensated (Item
3
of claim).
Carrier, on the other hand, both denies that any violation of the
Agreement exists and raises two procedural objections to the form of the claim.
First, Carrier insists that even if a violation of the Agreement is proven, any
award by this Board granting monetary damages would be in the nature of a penalty
and, absent clear language authorizing penalty payment, violative of the Railway
Labor Act. In Carrier's view, the Organization is seeking sums of money for
certain employees for work they did not perform. Thus, these employees would
be receiving a windfall and Carrier would be burdened with a penalty were the
claim to be sustained as to monetary damages. Carrier notes that the Agreement
does not provide for penalty payment. Therefore, for this Board to award monetary damages where none
in Carrier's view, that this Board would be modifying the provisions of the existing Agreement. Clea
subtract or in any way, modify those provisions. Accordingly, Carrier concludes
that this Board is without jurisdiction to order any monetary damages in this
case.
Second, Carrier asserts that to the extent the claim asks for compensation for unnamed in
names of certain individuals by a check of payroll records, it is invalid. Carrier points out that I
3
of the claim seeks compensation for "those employes
who were displaced by employes whose positions were abolished" (Emphasis sapplial.)
The Organization adds, under Item
3
that "the employes ...displaced by employes
whose positions were abolished (arej to be determined by joint check of payroll
and other necessary records."
Chrrier further notes that in Item 2 of the claim seven of the fiftynine individuals whose posit
identified only as follows:
" Manilla - Position
33500,
Yard Clerk
Mendotta - Position
42059,
Agt.-Opr.
Cedar Rapids - Position
16926,
Agent
Cedar Rapids - Position
03350,
Frt. Serv. Insp.
Cedar Rapids - Position
33870,
Yard Clerk
Coon Rapids - Position
28500,
Agent
Council Bluffs - Position
2,
Relief Clerk
Award Number
24449
Page
7
Docket Number CL-24214
"Where occupants of positions are not listed, same to be
determined by joint check of Carrier's records."
Carrier maintains that Item 3 of the claim is invalid in that it seeks compensation
for individuals who are both unnamed and unknown. Rule 36 of the Agreement requires that "all
of the employes involved." Thus, according to Carrier, where the claim is presented, as here, on beh
In addition, Carrier argues that absolutely no schedule rule and/or
agreement between the parties provides for a joint check of Carrier's records to
determine the names of individuals allegedly aggrieved. Thus, it is Carrier's
position that to the extent that Items 2 and 3 require such a check to ascertain
the names of aggrieved individuals, they are similarly invalid.
As to the merits of the dispute, Carrier contends that the embargo
ordered by Judge McMillen on October 26,
1979
clearly constitutes an emergency
of the type contemplated by Rule 72 (a )1. Carrier notes that the list of emergencies in that rule i
that "flood, snow storm, hurricane, tornado, earthquake, fire and labor dispute"
are only examples of the type of emergencies which may occur.
In Carrier's view, a court ordered embargo, to begin at a specific
time on a specific date constitutes an emergency of the utmost magnitude. In
fact, according to Carrier, on a least seven prior occasions the parties to
this dispute have recognized that an embargo constitutes an emergency, thereby
allowing for temporary position abolishments under the provisions of Rule 12 (a)i.
Furthermore, Carrier notes that the Interstate Commerce Commission has specifically recognized that
Thus accoring to Carrier, the embargo order of the Federal Court clearly
was an emergency within the meaning of Rule 72 (a )l. As such, Carrier was not obligated to give fiv
as a result of the embargo order. Therefore, Carrier asks that the claim be
denied on its merits as well as on procedural grounds.
Both parties have cited numerous awards of this Board in support of
their respective positions.
The relevant facts of this case are virtually identical with those in
Award Ho.
24446,
decided herewith. The rationale for our decision is set forth
in great detail in that case. There we decided that as to Carrier's procedural
objections, a monetary award is not a penalty payment. Furthermore, we concluded
that to the extent Items (2) and (3) of the claim referred to unnamed or unidentified individuals, t
readily indentifiable. Thus, all fifty-nine employees referred to in Item 2 of
the claim are proper Claimants, while Item (3) is deemed invalid.
Award Number
24449
Page
8
Docket Number CL-24214
As to the merits, we concluded in Award No.
24446
that
wader
the
facts of that case, as here, the Court ordered embargo on October 26,
1979
did
not constitute an emrgency as defined by Rule 12 of the Agreement. Furthermore,
we found that each of the Claimants had received one day's advance notice of
the abolishment of his or her position.
Accordingly, for the reasons set forth above and in Award No.
24446..
we will award each of the incumbents of the positions listed in Item (2) of the
claim eight hours' pay at the rate of his or her assigned position or protected
rate, whichever is greater for November 1,
1979
and for each day until he or
she returned to service, up to a maximum of four days' pay. Thus Items (1) and
(2) of the claim are sustained to the extent indicated in the Opinion. Item
(3)
of the claim is denied.
FDIDINGS: 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.
A W A R D
Claim sustained in accordance with the Opinion.
NATIONAL RAILROAD ADJUS MENTSOARD
By Order of Third Division
ATTEST: Acting Executive Secretary
National Railroad Adjustment Board
_ lel~l.\
`yr0"~
~r
Rosemarie Brasch - Administrative Assistant
0~\GY
Gh~co9°
Dated at Chicago, Illinois, this
29th
day of June
1983.