Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD Award No. 28889
THIRD DIVISION Docket No. MW-29070
91-3-89-3-509
The Third Division consisted of the regular members and in
addition Referee Gerald E. Wallin 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 Agreement was violated when the Carrier assigned Rail Gang
520 instead of Rail Gang 101 to perform rail installation work on InterRegional Territory No. 1 from
Docket MW-29).
(2) As a consequence of, the aforesaid violation, the Rail Gang 101
employes listed below* shall each be allowed pay at their respective straight
time and overtime rates for an equal proportionate share of the total number
of straight time and overtime man-hours expended by Rail Gang 520 employes
performing rail laying working on Inter-Regional Territory No. 1 beginning
sixty (60) days retroactive from August 15, 1988 and continuing until the
violation was corrected.
*V. P. French E. L. Zalinaki
R. R. Ramp J. A. Seedoe
W. L. Farone R. G. Shalungo
R. J. Miller C. C. Derk
C. J. Christion M. F. McCormick
T. R. Phillips E. J. Markowski
G. R. Mull S. P. Stephens
R. J. Minnier A. V. Mathis
L. R. Bailey C. L. Bixler
G. J. Sharks J. J. Smith
R. L. Foulds W. J. Engle
B. J. Good C. L. Price
C. W. Kramer J. L. Ray
W. H. Bailey L. C. Hoover
R. M. Smoogen S. J. Willis
R. R. Burns D. J. Day."
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.
Form 1 Award No. 28889
Page 2 Docket
No.
NW-29070
91-3-89-3-509
This Division of the Adjustment Board has jurisdiction over the
dispute involved herein.
Parties to said dispute waived right of appearance at hearing
thereon.
The basis facts are not in dispute. Claimants are 32 employees, most
of whom were members of Rail Gang #101, holding seniority on Inter-Regional
Seniority District
No. 1.
Between June 13, 1988 and September 29, 1988, Rail
Gang #520, consisting of 29 employees on the roster of Inter-Regional Seniority District No. 4, was
in Inter-Regional Seniority District No. 1. All employees from Inter-Regional
Seniority District
No. 1
had been recalled from furlough and were gainfully
employed during the time Rail Gang 1520 was assigned. In addition, Carrier
hired 13 new employees. Notwithstanding these actions, however, Rail Gang
II101 worked the entire production season an average of 40 employees short.
Although Rail Gang 11520 ceased working in District No. 1 on September 29,
1988, Rail Gang #101 continued working through December 15, 1988.
The Organization made procedural objections to portions of Carrier's
submission. The disputed information did not influence our analysis of the
record or these Findings.
Carrier does not directly challenge the Organization's contention the
seniority provisions of the Agreement were violated. Carrier asserts as its
sole defense, both on the property and in its submission, that no Claimant
suffered a monetary loss and, therefore, no Claimant was aggrieved. We agree.
It is undisputed that Carrier exhausted the available supply of employees holding seniority in D
add new hires, which it did. Rather than increase the workforce exclusively
in this manner, Carrier also imported Rail Gang #520. While the importation
of Rail Gang #520 was a technical violation of provisions of the Agreement,
there is no evidentiary basis in the record to conclude that Claimants' earnings were adversely affe
added 29 more new hires and furloughed Rail Gang #520 in its home district.
This Board is aware of the divergence of awards in this difficult
area where a violation has been found but no loss has been established. We
understand the "emptiness" associated with a violation without a remedy. However, we believe the bet
decisions does not provide for an award of damages where there is no proven
cognizable loss causally traceable to the violation of the Agreement.
No
such
loss or losses have been established here. Accordingly, no damages are awarded.
A W A R D
Claim sustained in accordance with the Findings.
Form 1 Award No. 28889
Page 3 Docket No. MW-29070
91-3-89-3-509
NATIONAL RAILROAD ADJUSTMENT BOARD
By Order of Third Division
Attest:
Nancy J. ~r - Executive Secretary
Dated at Chicago, Illinois, this 30th day of July 1991.
LABOR MEMBER'S
CONCURRING OPINION AND DISSENT
TO
AWARD 28889. DOCKET MW-29070
(Referee Wallin)
The Majority correctly found that the Agreement was violated
when the Carrier assigned employes from one seniority district to
work on another seniority district. This finding was not difficult
to make inasmuch as the Carrier freely admitted to violating the
Agreement. However, the Majority's finding that no monetary remedy
is warranted for such a violation is both poorly reasoned and an
anomaly that diverges from a virtually unbroken string of Third
Division awards that allowed monetary claims for so-called fully
employed claimants when the carrier violated seniority district
rules. Moreover, this award conflicts with well-established
precedent on this orooert concerning a precisely identical situation.
The Majority's first error was its finding that there is a
"divergence of awards in this difficult area". That finding is
plainly and simply wrong. What is perplexing is how the Majority
arrived at this plainly wrong conclusion. There is no precedent
cited in the award. However, a review of the record establishes
that the following list of awards was cited to the neutral member
by the Carrier as precedent on this Carrier's property: Third
Division Awards 26137, 26182, 26229, 26381, 26709 and 27185, Awards
5, 25, 29, 40 and 42 of Public Law Board No. 3781 and Awards 2, 4,
5 and 32 of Public Law Board No. 2945. The problem is that not a
Labor Member's Dissent
Award 28889
Page Two
single one of these awards dealt with the issue of crossing
seniority district lines. The fact is, that every single one of
these awards is clearly distinguishable from the instant case.
Although we hesitate to burden the record by individually examining
each and every one of these awards, we do feel compelled to examine
the most glaring examples of the inapposite awards upon which the
majority apparently, but erroneously, relied.
Third Division Award 27185 (Conrail v. BNW$1
This award involved a subcontracting dispute, not a seniority
district dispute. Moreover, the claim was made for furloughed
claimants and sustained for these same furloughed claimants.
Inasmuch as the claimants were furloughed, there was no discussion,
argument or award citation concerning pay for fully employed
claimants involved in this case. Hence, it has no application to
the instant case.
Award 5 of Public Law Hoard No. 3781 (Conrail v. BOM)
This award involved the recall of junior furloughed employes
instead of senior furloughed employes. The claim was sustained
from the beginning of the violation until the violation was
corrected, i.e., until the senior employe was recalled. The claim
did not involve seniority district violations or so-called fully
employed claimants. Consequently, this award has no logical
application or precedential value in the instant case.
Award 25 of Public Lap Board No. 3781(Conrail v. BMWE)
Once again, this award does not involve seniority districts or
so-called fully employed claimants. This case involved changing of
headquarters and a claim for expenses. It is not even remotely
applicable in the instant case.
Labor Member's Dissent
Award 28889
Page Three
Awards 40 and 42 of Public Law Board No. 3781 (Conrail v. BMW$I
Both of these cases involve the recall of junior employes
instead of senior employes. Both cases were sustained. Neither
case involved so-called fully employed claimants, nor were any
argument or awards concerning the full employment issue raised in
the case. These awards are clearly not applicable to the instant
case.
Award 2 of Public Law Board No. 2945 (Conrail v BRlC,
This case involved the arbitrary disqualification of a clerk
and a subsequent improper displacement. The claim was sustained.
It did not involve seniority districts or the fully employed
claimant issue. It clearly has no application to the instant case.
In addition to taese inapposite awards involving Conrail, the
following awards were cited to the neutral to support the Carrier's
theory that this Board has no authority to impose a penalty:
Second Division Awards 1638, 3967, 10666, Third Division Awards
10963, 13154, 13958, 14853, 15062, 15624, 16691, 18540, 20921,
25445, 25694, 25696, 26063, 26169 and 28693. There are two
problems with attempting to apply these awards to the instant case.
First, with the exception of a single award (Third Division Award
18540), none of these awards involve seniority district violations.
Second, several of the awards are by Referee Dorsey (Third Division
Awards 10963, 13958, :4853) or relied upon precedent set by Referee
Dorsey in Third Division Award 13958 (Third Division Awards 15062,
15624, 16691). Of critical importance, is the fact that based upon
amendments to the Railway Labor Act and judicial developments in
the law, Referee Dorsey subsequently reversed his finding in Award
Labor Member's Dissent
Award 28889
Page Four
13958 and held, in Award 15689, that the so-called full employment
of claimants is no bar to awarding compensation for Agreement
violations. Simply put, much of the precedent upon which the
Carrier relied has been reversed by the very referee who wrote the
awards.
The fact the seniority district cases are distinguishable from
other types of cases is evidence by a review of Third Division
Awards 15062 (cited by the Carrier) and 12671. Both of these
awards were rendered by Referee Ives. Award 15062 was a subcontracting case and Referee Ives relied
(Award 13958, later reversed by Dorsey) to deny a compensatory
award based on full employment of the claimants. However, Award
12671 was a seniority district type dispute and Referee Ives
sustained the claim for so-called fully employed claimants as
follows:
"The Petitioner's claim (Part 2) prays for an award
of money to be paid to each of the particular named B&B
employes at his respective straight time rate for the
computed time they allegedly would have worked if they
had been assigned to perform the number of hours actually
worked by the Nashville Terminal BSB employes. The
Petitioner primarily relies on numerous awards which have
held, under various factual situations, that the full
employment of Claimants is not necessarily a valid
defense against such monetary claims. Particular
emphasis is placed upon two recent awards of this Board
by the Petitioner (Awards 11937 and 11938).
Labor Member's Dissent
Award 28889
Page Five
"The Carrier contends that the Agreement contains no
provisions for so-called punitive damages for contractual
violations such as we have found in this case. It argues
that the Claimants have not been damaged monetarily and
are, at most, entitled to nominal damages. In support of
its position, the Carrier cites a number of previous
awards and federal court decisions.
After careful review of the entire record in this
case, we find that the extent of the monetary damages
suffered by the Claimants is a matter of proof. The
Petitioner has submitted specific hourly claims on behalf
of each individual Claimant, based upon the number of
actual hours spent on the disputed work assignment by
others, which can be readily translated into specific
monetary claims. The Carrier has offered no evidence
that the Claimants could not have performed the work by
working overtime or that the work could not have been
delayed and later performed during regularly scheduled
hours of work.
The Carrier here has erroneously described the
monetary claim as a prayer for punitive damages which
implies that the organization seeks the assessment of a
pe alty over and above the damages suffered by the
Claimants. We find that the damages sought by the
Petitioner are limited to compensatory damames directly
arising out of the Carrier's violation of the Aareement.
which would compensate the Claimants by makincLthem whole
for work they otherwise would have performed and wages
they would have earned. (Awards 11937. 11938 and 117011.
We will sustain the claim."
This distinction recognized by Referee Ives between seniority
district violations and other types of violations has been
consistently recognized by this Division and Public Law Boards both
on this property and within the industry in general. In this
connection, see the following awards:
Labor Member's Dissent
Award 28889
Page Six
19840 BMWE v. C&NW (Blackwell - 1973)
20090 BMWE v. SPT (Liebezman - 1974)
20562 BRS v. B&O (Blackwell - 1974)
20891 BMWE v. BN (Edgett - 1975)
21678 BMWE v. BN (Eischen - 1977)
22374 WM v. BN (Sickles - 1979)
23046 BMWE v. SP (Roukis - 1980)
Awd 82, PLB 1844 BMWE v. C&NW (Eischen - 1982)
24576 BMWE v. MOP (Klaus - 1983)
25964 BMWE v. C&O (Marx - 1986)
27847 BMWE v. SSW (Scheinman - 1989)
28524 BMWE v. CS% (Lieberman - 1990)
Awds 59,60,62&63, PLB 1837 BMWE v. N&W (Myers - 1990)
28676 BMWE v. GTW (Marx - 1991)
28852 BMWE v. UP (Zusman - 1991)
Awd 41, SBA 1016 BMWE v. Conrail (Blackwell - 1991)
The awards cited above clearly show that over a period of
nearly twenty years, eleven different arbitrators have issued
twenty-one awards sustaining compensation for so-called fully
employed claimants when a Carrier violated seniority district
lines, including Award 41 of Special Board of Adjustment NQ. 1016
on this proyertv. The inexonerable conclusion is that there is no
odivergence~ of awards on the subject as the Majority suggested in
Award 28889. Hence, the first premise upon which Award 28889 is
based (i.e., divergence in precedent) is invalid.
The second error inherent in this award is the finding that
there was no proven cognizable loss causally traceable to the
violation of the Agreement. Contrary to this absolutely unsupported finding, there were two very ser
a definite monetary loss for individual employee.
Second, the
Labor Member's Dissent
Award 28889
Page Seven
critically important rights of seniority that are conferred by the
Agreement would be devastatingly diminished if this award were to
be given any precedential value.
The monetary loss should be self evident. The work involved
in this dispute was laying rail. Once new rail is laid, it remains
in place and without need for replacement for a decade or more.
Therefore, there can be absolutely no question that the installation of rail on Inter-Regional Terri
employes holding seniority on that seniority territory deprived the
employes on Inter-Regional Territory No. 1 of the opportunity to
lay that rail at some point. Under such circumstances, a monetary
award is not the equivalent of punitive damages. Instead, it is
compensating the Claimants for work they otherwise would have
performed and wages they would have earned. That is precisely the
theory upon which the vast majority of awards concerning seniority
district violations have relied to sustain monetary claims for
fully employed claimants. Typical examples from the more than
twenty awards cited above are Third Division Award 12671 (quoted
supra) and Awards 21678 and 28524, which held:
AWARD 21678:
"The only question remaining is relative to appropriate remedy. Claimants seek compensation for 64 h
of straight time, the amount of time which the Fargo
District gang consumed in performing the disputed work.
Carrier resisted payment of damages even if arauendo the
Labor Member's Dissent
Award 28889
Page Eight
"Agreement was violated on the grounds that Claimants
suffered no loss of earnings and the Board has no
authority to award damages. We have dealt authoritatively with similar contentions in prior Awards i
these same parties and concluded that where, as here,
Claimants by Carrier's violation lost their rightful
opportunity to perform the work then they are entitled to
a monetary claim. Nothing on this record persuades us to
deviate from those precedents in this case. See Awards
19899, 19924, 20042, 20338, 20412, 20754, 20892."
(Underscoring in original)
AWARD 28524:
"With respect to Carrier's position on the nature of
a possible remedy, it seems clear that in this dispute
the Claimants were deprived of work opportunity and under
well-established precedents are entitled to full compensation, rather than the difference in compens
the two jobs (see, for example, Third Division Awards
14004, 17051 among many others). In sum, therefore, the
Claim must be sustained with the limitations specified in
Rule 40."
While the specific monetary loss is certainly important, the
far more serious damage that will be wrought if this award is
afforded even the slightest precedential value, is the diminution
of important seniority rights. Seniority rights have no value
unless certain work accrues to employes by virtue of those rights.
To assign work of one seniority district to employes of another
district for all practical purposes nullifies the terms of the
negotiated seniority district rules and renders those seniority
rights meaningless. A monetary award is therefor justified if for
no other reason than to preserve the integrity of the Agreement.
Once again, this theory has consistently been applied to seniority
Labor Member's Dissent
Award 28889
Page Nine
district cases until the adoption of this anomalous award. Typical
examples from the twenty-one awards cited above are Third Division
Award 19840 and Award 41 of Special Board of Adjustment No. 1016,
which held:
AWARD 19840:
"Carrier contends,, though, that, even in the event
of an Agreement violation, the herein claims for compensation should be denied on the basis that cla
fully employed during the claim period. We do not
concur.
A multiplicity of viewpoints on this question is
reflected in our prior Awards and we shall not attempt
here to reconcile or explain the bases for the various
viewpoints. It suffices to say here that this record
presents an obvious loss of work opportunities by
claimants who have averred that they were available and
would have performed the Roland Branch work if Carrier
had assigned them thereto. Carrier's explanation of
claimant's non-availability for the Roland work, i.e.,
that claimants performed other emergency work concurrently with the Roland emergency work, is not su
the record and Carrier has offered no other evidence to
explain why the Roland work was not assigned to claimants. If compensation were not allowed i
impunity assign employees to cross seniority district
lines so long as employees such as claimants are fully
employed. The net effect would be that employees would
have seniority rights but no effective remedy for the
instant violation thereof and, consequently, the Agreement provisions protecting such seniority woul
nullified. We do not believe it is in the interests of
the parties for the Board to encourage that result and we
shall therefore follow prior authorities awarding
compensation where a violation has occurred in circumstances involving a loss of work opportunities.
AWARD 41 - SBA NO. 1016:
"Important seniority rights are in question in this
case, because an Employee whose name is on a seniority
Labor Member's Dissent
Award 28889
Page Ten
"roster in an Agreement designated seniority district,
owns a vested right to perform work in that seniority
district that accrues to his standing and status on the
district seniority roster. The Seniority District
boundaries established by the parties' Agreement to
protect and enforce that right, have been improperly
crossed by the Carrier action, resulting in the Claimants
loss of work opportunities, and hence the principle that
compensation is warranted in order to preserve and
protect the integrity of the Agreement, is applicable to
this dispute. For similar rulings between these same
parties see Award
No. 34
of Special Board of Adjustment
No.
1016 (07-28-89) and Award
No.
7 of Public Law Board
No.
3781 (02-12-86)." (Underscoring in original)
The Organization's concern about the integrity of the
Agreement is not simply a theoretical or perceived concern. The
above-quoted Award 41 of Special Board of Adjustment No. 1016
involved a virtually identical seniority district violation that
occurred on this Carrier's property during 1985. Moreover, there
are Presently at least eight similar seniority district violation
cases involving this Carrier and the B14WE nendinc before this
Division or related forums. This Carrier is a blatant and repeated
violator of the seniority district rules.
In conclusion, it is clear that the two basic premises upon
which this award is based are invalid. That is, there is no
"divergence" in awards on seniority district cases and there
clearly were losses suffered by the Claimants. inasmuch as the
precedential value of an award is no greater than the reasoning in
the award, this award has no precedential value. It is clear that
Labor Member's Dissent
Award 28889
Page Eleven
the award is an anomaly that is in conflict with the consistent and
overwhelming majority of awards on this issue. Therefore, I
dissent to that part of the award that denies compensation for the
violation of the Agreement and resultant loss of work opportunity.
Respectfully submitted,
D. D. Bartholomay
Labor member
CARRIER MEMBERS' RESPONSE
TO
LABOR MEMBER'S CONCURRING AND DISSENTING OPINION
TO
AWARD 28889, DOCKET MW-29070
(Referee Wallin)
A review of the dissent reveals that the minority in
this dispute is simply memorializing the arguments advanced
during the discussion of this case, and even if the Majority
would have been apprised of Third Division Award 12671 and
Award 41 of Special Board of Adjustment No. 1016, it would
have done nothing more than strengthen the Majority's Findings (which is obvious'to parties familiar
resolution of minor disputes) that there is a divergent
number of awards in this difficult area. The Majority, as
is obvious, opted to follow the better reasoned awards. In
fact, the Majority's view of not assessing a penalty is
definitely not an anomaly as is further evident by the most
recently adopted awards of this Division. See 3/28923,
28936, 28939, 28940, 28942.
Of course, a review of the Concurring and Dissenting
opinion wherein the minority attempts to distinguish the
cited non-penalty awards by referencing a number of penalty
awards spanning twenty years by eleven different neutrals
who have sustained penalty compensation for fully employed
claimants when seniority district rules were violated can be
viewed as a tacit admission by the minority that in all
other cases the fully employed claimant who has not been
economically harmed is not to be afforded a windfall.
CMs' Response to
LM's Concurring and
Dissenting opinion
Page 2
&Z444;04
LABOR MEMBER'S RESPONSE
TO
CARRIER MEMBERS' RESPONSE
TO
LABOR MEMBER'S CONCURRING AND DISSENTING OPINION
TO
AWARD 28889, DOCKET MW-29070
(Referee Wallin)
The decision in this award was and is an anomaly with respect
to not allowing a monetary remedy. The evidence of such was
clearly pointed out by the Carrier Member with the citation of five
very recent awards in the Response, i.e., none of the awards cited
dealt with a seniority district violation which denied a monetary
remedy.
In the second paragraph of the Response, the Carrier Member
uses the terms penalty compensation, fully employed, economically
harmed and windfall. Windfall is defined as ^2. any unexpected
financial gain or stroke of luck." Shortly after the claim period
ended, the Claimants were no longer fully employed but furloughed.
As such, they were economically harmed and their unemployment
compensation became their penalty compensation and unexpected
financial gain. Such a stroke of luck should fall on no one.
Respectfully submitted,
D. D BartholOmay
Labo Member