NATIONAL RAILROAD ADJUSTMENT BOARD
THIRD DIVISION Locket Number CL-25235
Thomas F. Carey, Referee
(Brotherhood of Railway, Airline and Steamship Clerks
( Freight Handlers, Express and Station Employes
PARTIES TO DISPUTE:
(Northeast Illinois Regional Commuter Railroad Corporation
STATEMENT OF CLAIM: Claim of the System Committee of the Brotherhood (GL-9803) that:
1. Carrier violated the Agreement Rules, particularly the February
7, 1965 National Mediation Agreement, when it failed to compensate Mr. John T.
Simpson $1,628.22 per month, his guaranteed rate of pay, when it abolished his
position and he was subsequently furloughed as a result of said abolishment,
and
2. Carrier shall be required to compensate Mr. Simpson $1,628.22
beginning with the month of October, 1981 and for each and every month thereafter
until such time as this matter is resolved including any and all increases in
pay due to the implementation of a new wage agreement and COLA provisions thereof.
OPINION OF BOARD: On March 20, 1980, the Interstate Commerce Commission issued
DSO No. 1437, wherein the Illinois Regional Transportation
Authority was granted authority to operate commuter service over the.lines of
the bankrupt Chicago, Rock Island and Pacific Railroad Company. The RTA was
instructed by DSO 1437 that the "terms and conditions" for employees were to be
developed as follows:
"Employees -- Under 49 U.S.C.§11125(b), RTA must hire
R1 employees necessary to provide the authorized service
and assume those employees for the directed service period.
In complying with Section 11125(b)(4), RTA may either
utilize the employee protection procedures established
in DSO No. 1398, KCT--Operate--CRI&P, supra, 360 I.C.C.
289 at 300-303 or negotiate new employee protection terms
with the affected RI employees."
It should be noted that the RTA had an arrangement with the Chicago
and North Western Transportation Company where the C&NW acted as Agent for the
RTA and served as the commuter line operator. In that role, the C&NW entered
into an agreement on March 22, 1980, with the several organizations representing
affected employees, including the Brotherhood of Railway and Airline Clerks.
That Agreement contained some eight (8) provisions concerning the hiring procedures
and employment status of Rock Island employees. That Agreement, which is found
to be controlling, contains the following provisions, the application and meaning
of which are central to the instant dispute before the Board:
Award Number 25009 Page 2
Dockct Number CL-25235
1. Pursuant to 49 U.S.C. Section 11125 and Directed
Service Order No. 1437 issued by the Interstate Commerce
Commission on March 21, 1980, the Chicago and North Western
Transportation Company as agent for the Northeast
Illinois Regional Commuter Railroad Corporation and for
the Regional Transportation Authority, Directed Service
Carrier, shall hire the employees of the Chicago, Rock
Island, and Pacific Railroad to the extent that they
are necessary to the operation of the Rock Island commuter
service in Northeast Illinois and shall assume the exist
ing employment obligations and practices
of
the Rock
Island for those employees including agreements governing
rates of pay, rules and working conditions, and employee
protective conditions for the period during which
Directed Service Order No. 1437 is effective.
2. When the Chicago and North Western Transportation
Company enters upon and begins operation of the Rock Island
commuter service, the particular employees of the Rock
Island hired hereunder shall be those particular Rock
Island employees who held jobs necessary to the operation
of the commuter line at the time that the Kansas City
Terminal ceased operation of the Rock Island commuter
service as a directed service carrier.
3. The C&NW will retain and continue only those posi
tions and hire only those employees necessary for the
operation of the Rock Island commuter service.
4. The hiring of Rock Island employees hereunder shall
commence whenever, after 12:01 a.m. on March 24, 1980,
that the C&NW actually enters upon and begins operation
of the Rock Island's Chicago commuter line.
5. The hiring of Rock Island employees hereunder shall
continue for as long as the C&NW as agent for the Northeast
Illinois Regional Commuter Railroad Corporation and for
the Regional Transportation Authority, Directed Service
Carrier, shall operate the Rock Island's Chicago commuter
line, but in no event beyond 11:59 p.m. on May 31, 1980.
6(aJ A11 those positions necessary for operation of
Rock Island commuter service which were in effect on
March 21, 1980 will be continued in existence from the
commencement of Chicago and North Western Transportation
Company operation of such service as agent of the directed
service carrier on March 24, 1980 until 11:59 p. m. on
March 31, 1980. Incumbents of these positions will continue on these positions and will not be 'perm
exercise seniority to other positions nor will they be
subjected to displacement during that period.
Award Number 25009 Page 3
Docket Number CL-25235
"6(c)
Individuals hired initially who as a result of
the procedure established herein do not secure a job
in this operation of the commuter line will be terminated from this hiring arrangement without any p
event it later develops during the period of the directed
service that additional hirees are required, a special
bulletin will be posted requesting additional applicants from the appropriate seniority roster.
7. The C&NW shall not be responsible to any employees
of the Rock Island hired hereunder for any claims or
debts due and owing to such individuals because of any
employment, services performed, or obligations incurred
on work done prior to the actual hiring of such
individuals by the C&NW.
8. Employees of the Rock Island hired hereunder
shall not obtain any seniority or other rights what
soever with respect to the Chicago and North Western
Transportation Company, and shall not be entitled to
wages or any other benefits under the collective bar
gaining agreements of the C&NW. Employees of Rock
Island not hired hereunder shall have no relationship
whatsoever with the C&NW.
Signed at Chicago, Illinois, this 22nd day of March, 1980."
Effective June 1, 1981, acting as.directed service operator, NIRCRC
assumed management of the Rock Island suburban commuter line, terminating its
agency relationship with C&NW-T. On May 29, 1982, the Carrier indicates that
DSO No. 1437 and the March 22, 1980 Agreement expired. The Carrier was reportedly
in the process of its eventual purchase of the line.
There is no dispute the Claimant was hired by the C&NW-T pursuant to the
March 22, 1980 Memorandum Agreement and carried over into NIRCRC service with
the June 1, 1981 transition.
The record shows that in September 1981, the Trustee of the Rock Island
estate ordered Carrier to vacate the LaSalle Street Station Building, so that
demolition of that structure could commence. The commuter operation and ticket
offices were relocated south of the former structure in six trailers, and a new
temporary ticket office was established. Since the new accommodations did not
require the level of custodial services necessary when the LaSalle Street Building
was being utilized, Carrier abolished Matron Position No. 013 and Window Washer
Position No. 014 effective close of business, September 30, 1981. The Carrier
reports that when the occupants of these positions exercised seniority, Claimant,
occupant of Janitor Position No. 018, was displaced. There were no junior
employees whom he could displace, thus, he was furloughed.
Award Number 25009 Page 4
Docket Number CL-25235
On February 23, 1982, Claimant was briefly recalled to service and
subsequently furloughed on March 31, 1982.
This claim for protective pay under the February 7, 1965 National
Mediation Agreement was filed November 25, 1981 to cover the initial furlough
period.
Following Claimant's furlough after March 31, 1982, he filed another
similar claim for payment under the same February 7, 1965 Agreement beginning
in April 1982 and continuing thereafter. The Parties have agreed to abide by
the Board's decision in this claim in disposing of the entire case.
The Carrier argues that the order issued by the Trustees of the Rock
Island estate to vacate Claimant's workplace resulted in the abolishment of two
(2J NIRCRC custodial positions, causing the Claimant's displacement and subsequent
furlough. The Carrier relies on Section 3 of the Memorandum of Agreement of
March 22, 1980, which provided:
"The CNW will retain and continue only those positions
and hire only those employees necessary for the operation
of the Rock Island commuter service."
The Carrier concludes, in the instant case, that since a "surplus of
employees occurred because the positions they occupied were not necessary to
the operation, there was no prohibition in not retaining - in 'unhiring' - such
employees."
The Carrier asserts that that "same concept" is contained in DSO 1398
under the section entitled "Status of RI Employees":
"RI employees engaged in directed service operations
will neither lose their status as RI employees nor acquire
an employment relationship with the DRC
...
"Following their release from directed service employment
or termination of directed service operations, RI
employees hired by the DRC shall revert to their status
as RI employees."
The Carrier further concludes that the protective compensation provision
of the February 7, 1965 Mediation Agreement are solely the obligation of the
bankrupt Rock Island. When the Claimant lost his status in October 1981, he
reverted to the status of an unemployed Rock Island employee and any amount
owed to him because of this original Rock Island employment must be directed to
the Rock Island estate.
Award Number 25009 Page 5
Locket Number CL-25235
The Carrier's reliance on the terms of DSO 1398 is misplaced. The
Parties in the original directive were to utilize the "employee protection
procedures" established in another DSO No. 1398 _or negotiate new employee protection
terms. It is clear they chose to develop their own terms. I_t is those terms
and conditions set forth in the Agreement of March 22, 1980 which both the
Parties and this Board must follow. It is beyond the authority of the Parties
or the Board to modify or add to their language originally selected by the
Parties to express their intent.
The Organization maintains that:
"The only purpose of Section 3 is to protect the
new operator from claims that all
CRI&P
protected
employes must be transferred to the new operation
and continued in their surplus and protected status
by the
RTA,
even though they were not needed. In
other words, any
CRI&P
employes that were surplus
and not needed at the time of takeover (March 24,
1980) would not be able to transfer this status to
the new operation. On the other hand, employes
that could get a job with the new operator by bulletin, as provided in Sections 6(a) and 6(b) of the
agreement, would continue to enjoy all of the antecedent benefits they enjoyed as CRI&P employes
"To read Section 3 in any other fashion would be to
make meaningless the employe protective provisions
of the DSO and Section I of the March 22, 1980
agreement which clearly indicates that former
CRI&P
employes securing employment with the new operator
are to be granted full benefits of their protective
agreements as well as the benefits of the rules
agreements and the wage agreements."
There is no dispute that the Claimant was "hired" by the C&NW-T in
accordance with the Agreement of March 22, 1980, and was carried over into
NIRCRC
service with the June 1, 1981 transition. It is also clear that his
pay, working conditions, and employee protective conditions for both C&NW-T and
NIRCRC
were controlled by DSO 1437 and the March 22, 1980 Agreement, at least
for the period for which "Directed Service Order No. 1437 is effective." (It
should be noted that the current operational status of DSO-1437 is not delineated
in the record.)
Award Number 25009 Page 6
Docket Number CL-25235
All eight (8J sections of the controlling "Memorandum of Agreement"
must be read together. The Agreement sets forth the understanding of the
Parties. It extends considerable latitude to the Carrier in Section 3 to
"retain and continue only those positions" and "hire only those employees
necessary" for the operation of the Rock Island commuter service. However,
once such RI employees are "retained and continued" by the Carrier, then the
Carrier, under Section 1 of the Agreement, must assume the existing employment
obligations and practices of the Rock Island for those employees, including the
agreement governing rates of pay, rules and working conditions, and employee
protective conditions, for the period "during which DSO No. 1437 is effective."
Section 7 indicates the Carrier shall not be responsible for "any
claim or debts due" owing to work or obligations incurred pr for to the actual
hiring by C&NW. Section 7 places a significant limit on the liability of the
Carrier for claims resulting from "prior work done." However its terms cannot
be elevated to the contractual supremacy over and exclude the employee protective
requirements of Section 1. Both sections must be read in pari materia. Thus
the basis for determining benefits under Section 1 are determined upon the
period of the new employment relationship with the Carrier and not upon an
"obligation incurred on work done prior to the actual hiring."
In the case at bar, the Claimant, once having been hired, is entitled
to those "employee protective conditions" which he had been entitled to under
Rock Island Agreement in addition to the governing rates of pay, rules, and
working conditions. He is limited to whatever eligibility he would have accrued
during his periods of service with C&NW-T and NIRCRC and further limited "for
the period which Directed Service Order No. 1437 is effective."
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 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.
Award Number 25009 Page 7
Docket Number CL-25235
A W A R D
Claim sustained in accordance with the Opinion.
NATIONAL RAILROAD ADJUSTMENT BOARD
By Order of Third Division
ATTEST:
a
Nancy . y@1~er - Executive Secretary
Dated at Chicago, Illinois this 26th day of September 1984.
·. '»:, : ,I.