Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD Award No. 27291
THIRD DIVISION Docket No. MW-26651
88-3-85-3-394
The Third Division consisted of the regular members and in
addition Referee Dana E. Eischen when award was rendered.
(Brotherhood of Maintenance of Way Employes
PARTIES TO DISPUTE:
(Consolidated Rail Corporation
STATEMENT OF CLAIM: "Claim of the System Committee of the Brotherhood that:
(1) The discipline (reprimand) imposed upon Mr. C. C. Rhodes for
alleged responsibility in connection with the falsification of PA-15 report
dated December 17, 1982 and alleged failure to adhere to Conrail Order AD 0.28
dated May 5, 1982 was unjust, unreasonable and in violation of the Agreement
(System Docket CR-971D).
(2) The reprimand imposed upon the claimant shall be expunged from
his record."
FINDINGS:
The Third Division of the Adjustment Board upon the whole record and
all the evidence, finds that:
The carrier or carriers and the employe or employes involved in this
dispute are respectively carrier and employes within the meaning of the
Railway Labor Act as approved June 21, 1934.
This Division of the Adjustment Board has jurisdiction over the
dispute involved herein.
Parties to said dispute waived right of appearance at hearing thereon.
In 1982, Claimant was working as Assistant Division Engineer at
Indianapolis, Indiana. This job is a Carrier official position to which Claimant had been promoted f
Claimant was not subject to or covered by the Collective Bargaining Agreement
between Carrier and the Organization.
Sometime in 1982, Claimant directed Delco Excavating, a vendor with
whom Carrier had a right of way clean-up contract, to remove some old ties in
Subdivision No. 2 on the Indiana-Cleveland main line. After Delco Excavating
had performed most of this work, Claimant learned that a different contractor
had been award the subcontract to clean up Subdivision No. 2. Upon discovering his error, Claimant i
work actually performed.
Form 1 Award No. 27291
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88-3-85-3-394
Carrier determined that Delco Excavating held the subcontract for
clean-up work in Subdivision
No.
1, not Subdivision
No.
2. He also determined
that there were unexpended funds under the Subdivision
No.
1 contract awarded
to Delco Excavating. Claimant instructed his subordinates to arrange for payment of Delco Excavating
voucher to show that the work performed in Subdivision
No.
2 had been performed in Subdivision No. 1. On the basis of this voucher, dated November 22,
1982, Delco Excavating was paid for the work it actually had performed in
Subdivision No. 2.
Approximately one year after the foregoing incident, the Chief
Special Auditor determined that Delco Excavating had been paid from Subdivision No. I funds for work
Special Auditor interviewed Claimant on January 31, 1984. During that
interview Claimant freely described the transaction and surrounding circumstances. On February 24, 1
setting forth all of the foregoing details.
The record does not show what the Chief Special Auditor reported to
his supervisors, or to whom he reported the incident. Over repeated objections of Claimant's represe
any questions relating to these issues. The Carrier Hearing officer refused
to direct the witness to answer. We do know that subsequent to, and manifestly because of, that repo
Claimant exercised his seniority on April 13, 1987, and four days
later Carrier served him with notice to attend a hearing on April 25, 1987, on
the following charges:
"(1) Your responsibility in connection with the
falsification of PA-15 report, supplemental
receiving report, dated December 17, 1982
indicating rental of a 950 loader at $51.00
per hour, on October 15, 18, 19, 20, 21, 22,
25, 26, 27, 28 and 29, 1982, rental of a 977
Loader at $62.00 per hour on October 22, 25,
26, 27, 28 and 29, 1982 and rental of a D-3
Dozer at $34.00 per hour on October 15, 18,
19, 20 and 21, 1982.
(2) Failure to adhere to Conrail Order AD 0.28
titled 'outside Services and Non Revenue
Equipment Rentals,' dated May 5, 1982."
Following the hearing, Carrier imposed a written reprimand upon Claimant and
made a permanent entry in his personal record that he "violated Company policy
by participating in the development of improper charges."
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Page 3 Docket No. MW-26651
88-3-85-3-394
We have reviewed this record with extreme care and come away absolutely convinced that the disci
Even if arguendo the disciplinary investigation was not void from the beginning due to time l
impartial hearing. The chief witness against him, the Chief Special Auditor,
repeatedly refused to answer relevant and material questions put by Claimant's
representative. Despite frequent objections by the representative and repeated requests that the wit
only declined to direct the witness to answer but endorsed the witnesses refusal. Finally, notwithst
the record evidence does not support a conclusion that Claimant participated
in overcharging, payment for services not rendered or any other "improper
charges." At worst, he failed to follow strict formal accounting procedures
for paying a subcontractor for work performed. But there is not one iota of
evidence that he dishonestly "falsified" documents or participated in the
development of "improper charges." Similarly, the record evidence is barren
of support for the charge that "he failed to adhere to Conrail Order AD0.28."
The disciplinary representative of Claimant is an arbitrary and unreasonable
escalation of form over substance and an abuse of managerial discretion which
must be set aside.
A W A R D
Claim sustained.
NATIONAL RAILROAD ADJUSTMENT BOARD
By Order of Third Division
Attest:
Nancy J. -Executive Secretary
Dated at Chicago, Illinois, this 12th day of August 1988.