Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD Award No. 28045
THIRD DIVISION Docket No. MW-26879
89-3-86-3-16
The Third Division consisted of the regular members and in
addition Referee Elliott H. Goldstein when award was rendered.
(Brotherhood of Maintenance of Way Employes
PARTIES TO DISPUTE:
(Southern Pacific Transportation Company (Eastern Lines)
STATEMENT OF CLAIM: "Claim of the System Committee of the Brotherhood that:
(1) The Carrier violated the Agreement when it assigned outside
forces to construct and repair its tracks serving Rolling Rivers Enterprise,
Inc. beginning January 1, 1985 (System File MW-85-47/426-38-A).
(2) The Carrier also violated Article 36 of the Agreement when it did
not give the General Chairman advance notice of its intention to contract said
work.
(3) As a consequence of the aforesaid violations, System Roadway
Machine Operators M. A. Kucera, A. Simmons and Z. Smith shall each be allowed
two hundred forty (240) hours of pay at their respective straight time rates."
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.
This is a subcontracting dispute initiated by the organization on behalf of three Claimants who
contends that Carrier violated the Agreement when, beginning January 1, 1985,
employees of Coastal Railway Services, Inc., performed work in connection with
a track repair and construction project on tracks serving Rolling River Enterprises, Inc., at Housto
the contractor's employees removed old crossties, rail and ballast and added
stabilization using a bulldozer, grove cherry picker and backhoe, all work
which accrues or is reserved to members of the Organization. The Organization
further claims that Carrier violated Article 36 of the controlling Agreement,
which prohibits Carrier from contracting out work unless it gives notice to
the Organization, holds a conference with the Organization, and endeavors to
reach a mutually satisfactory Agreement concerning the disputed work.
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Carrier contends that the work performed by the outside contractor
was beyond the Carrier's dominion and control. It argues that the work complained of by the Organiza
Carrier; that the track in question no longer serves Carrier's customers and
lies dormant; that Rolling River Enterprises leased the track for its own
purposes and at its own expense.
Carrier also argues that even if the work had been in control of Carrier, the organization has n
to prevail because the Scope Rule is general in nature.
Our attention has been directed to several Awards of this Board dealing with the issue of whethe
but leased by it to another, is within the Scope of the Agreement. We take
particular note of the thorough and comprehensive discussions of the parties'
respective positions in Third Division Awards 23422 and 26212. As a general
matter, this Board has adhered to the proposition that where the disputed work
is not performed at the Carrier's instigation, is not under its control, not
performed at its expense and not exclusively for its benefit, the work may be
contracted out without a violation of the Scope Rule. Third Division Awards
20644, 20280, 20156. Award 23422 is illustrative of these general principles.
In that case, an outside contractor performed a track improvement project on
the Dorchester Branch right-of-way, which is owned by the Massachusetts Bay
Transportation Authority (MBTA). The MBTA granted Carrier a license to
operate trains on the Branch and Carrier performed ordinary maintenance work.
The outside contractor was employed by the MBTA. Under those facts, the Board
concluded that Carrier had no control over the disputed work, as it played no
role, either as a principal or an agent, in selecting the contractor. The
MBTA alone controlled when and how the work was to be performed, the Board
concluded, and therefore Carrier had no duty to notify and confer with the
Organization.
The instant case stands on a very different footing, however. Here,
the terms of the lease agreement demonstrate that Carrier retained considerable control over the wor
as follows:
"2. Industry desires to utilize said track in connection with the operation of its facilities in
vicinity, which track is in need of extensive rehabilitation.
Industry shall, at its expense and to the satisfac-
tion of Railroad, arrange for the rehabilitation of said
track. The cost to rehabilitate said track has been
estimated by Railroad to be Two Hundred Twelve Thousand
Seven Hundred Fifty and No/100 Dollars ($212,750.00).
Form 1 Award
No. 28045
Page
3
Docket
No. MW-26879
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Upon completion of said rehabilitation work, Industry
shall submit to Railroad itemized statements covering the
cost of rehabilitating said track, which shall be subject
to the approval of Railroad; provided, however, that such
cost shall not, without Railroad's prior written consent,
exceed the estimated cost mentioned above. Upon review
and approval of such statements by Railroad, the cost
covered thereby shall then be considered to be Industry's
approved cost. Industry will, at 'all reasonable times,
give Railroad's representatives access to its books for
the purpose of verifying such statements.'
Railroad shall refund to Industry such approved cost
at the rate of Twenty Dollars
($20)
for each carload of
freight yielding roadhaul revenue of Three Hundred Dol
lars
($300)
or more to Railroad and delivered on or
shipped from said track. Such refunds shall be made by
Railroad semi-annually for the term set forth in Section
9
but not to exceed ten (10) years from the date hereof.
3.
Industry, at its own expense and to the satis-
faction of Railroad, shall maintain said track.
6.
Railroad shall serve Industry over said track, un
less prevented due to labor dispute or any causes beyond
the control of Railroad, subject to any lawful charges
that may be made by Railroad for such service, at such
times as such service will not interfere with the use
of said track by Railroad." (emphasis added)
As the foregoing lease provisions demonstrate, Carrier retained the
right of approval with regard to the rehabilitation of the trackage in question, and agreed to refun
Rolling River Enterprises, Inc. Moreover, it is apparent that Carrier benefitted from the performanc
was sufficiently in control of the disputed work, in our judgment, to require
it to comply with the notice provisions of the Collective Bargaining Agreement. As the Board noted i
26212:
"Had Carrier directly let the work in question to
Byler clearly the Agreement and notice requirements
would apply. It seems equally clear that by leasing the property for the express purpose of construc
indirection that which cannot be directly done. We
conclude the Agreement was violated when no advance
notice of the lease was given."
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As a final matter, we are not persuaded that the Organization's failure to establish historic ex
not necessary where, as here, the work is within the scope of the Agreement.
With respect to the remedy requested in Part 3 of its Claim, it is
not clear whether the organization employees were on furlough or fully employed. Accordingly, it is
that they were furloughed, if that is the case, during the relevant time
frame. We do wish to add, however, that there is merit to the Organization's
contention that flagrant and continued disregard of a Carrier's responsibility
to provide proper notification could result in the sustaining of a monetary
Claim. It is an argument that warrants attention and we will consider it in
the future.
A W A R D
Claim sustained in accordance with the Findings.
NATIONAL RAILROAD ADJUSTMENT BOARD
By Order of Third Division
Attest:
Nancy J. e r - Executive Secretary
Dated at Chicago, Illinois this 10th day of August 1989.