Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD Award No. 27576
THIRD DIVISION Docket No. MW-26391
88-3-85-3-116
The Third Division consisted of the regular members and in
addition Referee Edward L. Suntrup when award was rendered.
(Brotherhood of Maintenance of Way Employes
PARTIES TO DISPUTE:
(Delaware and Hudson Railway Company
STATEMENT OF CLAIM: "Claim of the System Committee of the Brotherhood that:
(1) The Agreement was violated when the Carrier assigned outside
forces to completely re-furbish the SK Yard Office at Buffalo, New York beginning September 12, 1983
(2) The Carrier also violated Article IV of the May 17, 1968 National
Agreement when it did not give the General Chairman advance written notice of
its intention to contract said work.
(3) As a consequence of the aforesaid violations, Bridge and Building
Department employes J. Juliano, T. Woodyshek, J. Kurcharski, R. Ouimet, D.
Welch, N. Wells, E. Dibble, R. Robinson, R. Fontaine, G. Swift, D. Wood, J.
Mattice, Jr., R. Ford, J. 0'Kelly, W. Lyker, W. Carvin, E. Miller and R. Brown
shall each be allowed pay at their respective rates for an equal proportionate
share of the total number of man-hours expended by outside forces in performing the work referred to
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.
On November 1, 1983, the District Chairman of the Organizations, Pennsylvania Federation advised
alleged that a general construction company and "sub-contracted companies" did
major construction work at the Carrier's SK Yard Office and Tool House in violation of the Agreement
there is no B.M.W.E. Agreement applicable to Hudson River Estates Company"
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and the organization which covers the Claim. In his appeal the District Chairman states that the
Hudson personnel" and that "the Hudson River Estates Company is merely a paper
company." The Chairman continues that the Hudson River Estates Company was
established and is solely owned by the Delaware and Hudson Railway Company
with which the Organization has an Agreement. It is the further position of
the Organization that "all property in question including the building in
question was included in the transaction ...between the Delaware and Hudson
Railway Company and the Consolidated Rail Corporation (and) is public record
on file ...in the Buffalo County ...Courthouse." The Organization further
states in its April 2, 1984, appeal the following which is included here verbatim from the record:
"The Carrier's contention is that the SK Yard
Office is owned by Hudson River Estates Co., and
that Organization was not a signatory to the
D&H-BMWE schedule Agreement. The organization
contends that the ownership of this property by
Hudson River Estates, if the Carrier's contention
is true, is a mere subterfuge to abrogate the Scope
Rule of the D&H-BMWE schedule Agreement. The SK
Yard Office was sold by the Consolidated Rail
Corporation to the Delaware and Hudson Railway.
Subsequently, the Yard Office was 'sold' to Hudson
River Estates, a wholly owned subsidiary of the
Delaware and Hudson Railway.
Commencing September 12, 1983, the owner of SK
Yard Office, either the D&H or Hudson River
Estates, had an outside contractor, Eagen Construction Company, begin renovation of the Yard Office.
This Yard Office is used by D&H personnel and is
used for the benefit of the D&H in its railroad
operations. The Organization asserts that the Carrier has violated the Scope Rule and the notice
provisions Rule 44 of the schedule Agreement. The
'sale' of this property to a wholly owned subsidiary of the Carrier should not enable the Carrier
to wilfully disregard the schedule Agreement between the DSH and the BMWE."
The Organization claims that work of this type had historically been done by
its members. It documents this by citing work it had done of a similar nature
at the Carrier's facilities at Colonie, New York; at Delanson, New York (which
is a leased building); and at the Tool House and Yard Office at Cocklin Yard,
New York BMWE forces had also "...completely refurbished the Tool House at
Kingsley, Pennsylvania," according to the Organization.
The Board has closely studied the record before it, including the
submissions by both parties. The following conclusions are warranted. The
Carrier admits on the property that the building on which the work was done
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was "owned and the contractor hired by Hudson River Estates Company." In its
submission the Carrier argues, however, that the facilities were never owned
by either the Carrier or Hudson River Estates Company, but that Conrail
"leased its SK Yard Office to Hudson River Estates, Inc. by agreement dated
March 1, 1983." The latter information was never presented during the handling of this case on the p
in its denials of the Claim on the property. This Board has ruled on numerous
occasions that as an appellate forum it cannot frame its conclusions on information or evidence whic
of a case on the property. Such doctrine is codified by Circular No. 1 and
articulated by Awards emanating from various Divisions of this Board (See
Third Division Awards 20841, 21463, 22054; Fourth Division Awards 4132, 4136,
4137). The Board is constrained to accept both the Organization's and the
Carrier's contentions, on the property, that the SK Yard office at Buffalo was
owned by Hudson River Estates, Inc. Was the Yard Office directly bought from
Conrail by Hudson River Estates (since the Carrier claimed the latter "owned"
it), or from the Delaware and Hudson Railway which had purchased it earlier
from Conrail? The latter is argued by the Organization and is not factually
contradicted until the Carrier presented its submission to this Board. Who
are the Officers of Hudson River Estates? Its Board of Directors consists
entirely of "...top-level (D&H) Carrier officials" according to the organization. This is not di
River Estates? It is a corporate entity which occupies and controls the SK
Yard Office for the sole use, as far as the record shows, of the Carrier in
its railroad operations.
On the merits, the Carrier does not argue that work of this type had
not fallen under the Scope of the operant Agreement in the past. The thrust
of its argument is that the SK Yard at Buffalo does not fall under the Agreement between the Carrier
by a legal entity different than the Carrier. The Organization responds that
the Railroad and the Hudson River Estates are factually the same thing because
management is the same, and all functions of the property controlled by the
Hudson River Estates is for the sole function of the Carrier's railroad operations. The evidence of
Based on the "facts" of record before it, which are those exchanged
by the parties on the property, Hudson River Estates is a corporate entity
different than the Carrier, but it is completely controlled by Carrier Officers and is engaged in a
The type of work in dispute here is that which has historically been covered
under the Scope Rule of the Agreement. The record shows that such work had
been done by the craft on facilities which were both leased by the Carrier or
owned by it. This is not disputed in the record.
What the Carrier did was to create a separate legal entity which was
run by its Officers. This entity engaged in the same business as the Carrier's other railroad operat
owned by the Carrier as a holding company, or it leased property directly from
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another railroad. In either case it was a separate legal corporation. The Carrier argues that su
The Board must reasonably conclude that if the Carrier were to be permitted to withdraw itself f
manner describ
ed above it could logically
continue to
use such means with its other facilities and thus withdraw, in whole or in part, its operations
of the Agreement with the Organization. The procedures espoused by the Carrier are variants of so-ca
Board such represents a violation of the Scope Rule of the Agreement. The
Claim must be sustained.
A W A R D
Claim sustained.
NATIONAL RAILROAD ADJUSTMENT BOARD
By Order of Third Division
Attest:
Nancy J. DdAve
Executive Secretary
Dated at Chicago, Illinois, this 29th day of September 1988.