Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD Award No. 28178
THIRD DIVISION Docket No. MW-26998
89-3-86-3-36
The Third Division consisted of the regular members and in
addition Referee Edwin H. Benn when award was rendered.
(Brotherhood of Maintenance of Way Employes
PARTIES TO DISPUTE:
(Missouri-Kansas-Texas Railroad Company
PARTIES TO DISPUTE: "Claim of the System Committee of the Brotherhood that:
(1) The Carrier violated the Agreement when it withheld one thousand four hundred sixteen dollar
Churchill (System File 0-21).
(2) As a consequence of the aforesaid violation, Mr. L. Churchill
shall be paid one thousand four hundred sixteen dollars and eighty cents
($1,416.80) plus twelve percent (12%) interest."
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.
Claimant was first employed by the Carrier on September 12, 1961, but
left on his own accord on October S, 1961. Claimant then established seniority as a Track Laborer on
resigned on October 29, 1979. At that time, Claimant was given two weeks pay
in lieu of vacation. Claimant states that he was repeatedly called to return
to work and agreed to do so effective December 20, 1979. According to Claimant, "after I inquired, I
vacation time would stay the same."
Because of the two week pay out received by Claimant, Claimant
received no vacation in 1980. During the summer of 1981 Claimant was given
three weeks vacation. Claimant asserts that he called the Carrier's Payroll
Department to verify if the amount of vacation allotment was correct and was
assured that he was entitled to three weeks vacation. Between 1981 and 1983
Claimant continued to receive three weeks vacation. According to Claimant,
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Award No. 28178
Docket No. MW-26998
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during the summer of 1983 Claimant's Foreman called the Carrier to question
Claimant's vacation time and was informed that Claimant was entitled to three
weeks. Further, according to Claimant, the Roadmaster also called the Carrier
and was given the same information. Claimant asserts that the Roadmaster told
him that the issue "was closed." Statements supplied show that the Foreman
called the Carrier's Payroll Department in June, 1983, and was told that
Claimant was entitled to three weeks vacation and that the Roadmaster made a
similar call in 1981 and received the same information. During the relevant
time period, the vacation rosters showed Claimant as being entitled to three
weeks vacation.
During Claimant's vacation in July, 1984, the Carrier informed
Claimant that he was not entitled to three weeks vacation and instructed him
to return to work after two weeks. Further, at that time the Carrier informed
Claimant that he was overpaid for four weeks vacation during the period 1981
through 1983. Although receiving three weeks vacation each year, Claimant was
only entitled to one week in 1981 and two weeks in 1982 and 1983. The
Organization does not dispute that under the National Vacation Agreement
Claimant was not entitled to three weeks vacation per year during this period.
The Carrier thereafter deducted and recouped the four weeks pay ($1,416.80)
from Claimant's paycheck in equal installments of $150 per month.
It is well-established that absent language in the Agreement prohibiting recoupment, the Carrier
money. Second Division Awards 11072, 8684, Third Division Awards 21472,
15067. We find no language in the Agreement prohibiting such action and therefore, as a general prin
to recoupment.
However, although the Carrier has the general right to recoup erroneously paid monies, that gene
Third Division Award 19937 addresses an exception to the general rule entitling the Carrier to recou
"We are not prepared to state that overpayments
may never be recouped: Surely they can. If an
employee receives an obviously incorrect paycheck as a result of a clerical or computer
error, certainly the employee cashes the check
at his peril. The Board could speculate on
numerous other potential circumstances wherein
the Carrier may properly recoup. But, as cautioned above, each such case must be considered
on its own individual merits.
In this dispute we are faced with more than a
mere recouping of an overpayment. What caused
the overpayment? A supervisor gave erroneous
information. Claimant relied on that information, to her detriment. The record supports
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Claimant's contention that she would not have
been absent from work on December 23, but for
Supervisor's statement. Thus, in this case, to
deny the claim would result in Claimant losing
one day's pay, when, in fact, she would have
worked, and received pay had the Supervisor
given her accurate information."
The record in this matter places this case into the above exception
to the general rule entitling the Carrier to recoupment. At various times
during the three year period at issue Claimant spoke to the Carrier's Payroll
Department and supervisors and was assured that he was entitled to three weeks
vacation. Indeed, the Carrier's Roadmaster assured Claimant that the matter
"was closed." This record sufficiently establishes that Claimant relied upon
those representations along with the posted vacation entitlements to his detriment. We are satisfied
the Carrier.
We find no demonstration that Claimant intended to deceive the Carrier. The fact that Claimant m
he had coming does not demonstrate an intent to deceive, but merely demonstrates that Claimant was n
that the Organization and the Carrier jointly signed the vacation rosters does
not dictate a different result. There is also no evidence that the Organization sought to deceive th
and the Organization have the authority to agree upon vacation rosters is
inconclusive. The narrow issue here is reliance by Claimant and this record
establishes that Claimant was entitled to justifiably rely upon the representations of the Carrier's
the analysis set forth in Award 19937, we believe that recoupment in this particular case was improp
However, we deny the Organization's request for interest. We can
find no support in the Agreement for the imposition of interest. Third Division Awards 24710, 18433.
an award of interest in this case draws analogies to the National Labor
Relations Board's imposition of interest on backpay awards as part of makewhole remedies. The Organi
The NLRB's action in that regard is in exercise of discretion based upon
statutory authority. Our function in this matter is limited to the interpretation of the parties' Ag
interest awards in this type of case. Nor is this a case as set forth in
authority relied upon by the Organization where a party unsuccessfully contests an award in court an
imposes pre-judgment interest. Finally, we do not find that the Carrier acted
in bad faith when it determined that recoupment was necessary.
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A W A R D
Claim sustained in accordance with the Findings.
NATIONAL RAILROAD ADJUSTMENT BOARD
By Order of Third Division
Attest:
Nancy J. v -Executive Secretary
Dated at Chicago, Illinois, this 20th day of November 1989.