Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD Award No. 28937
THIRD DIVISION Docket No. MW-28268
91-3-88-3-36
The Third Division consisted of the regular members and in
addition Referee Gil Vernon when award was rendered.

(Brotherhood of Maintenance of Way Employes PARTIES TO DISPUTE: (CSX Transportation, Inc. (formerly The Chesapeake ( and Ohio Railway Company)

STATEMENT OF CLAIM: "Claim of the System Committee of the Brotherhood that:

(1) The Carrier violated the Agreement when, without notifying the General Chairman in advance as contemplated by the October 24, 1957 Letter of Agreement, it assigned or otherwise permitted outside forces to raise the boat slip at Ludington, Michigan beginning November 20, 1986 [System File C-TC3342/12-APPE(87-159)].

(2) As a consequence of the aforesaid violation, furloughed B&B Carpenters J. C. Woods, D. Swanson and D. Nowak shall each be allowed one hundred twenty (120) hours of pay at the carpenter's rate and they shall each be credited with an additional fifteen (15) days for vacation qualifying purposes."

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.

The essential background facts are not in dispute. Some three years prior to the time this dipsute arose, Carrier owned and operated a ferry service which transported a points on the Wisconsin side of Lake Michigan. In July 1983, Carrier entered into a lease/sale Agreement with a consortium of three corporations unrelated to Carrier. The Agreement provided for outright sale of Carrier's three ferry boats and a six year lease, with an option to purchase, for the ferry service
Form 1 Award No. 28937
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and use of certain docking facilities and appurtenant trackage. The provisions of the lease/sale dispute.

By November 1986 the lease/sale arrangement had been operative for more than three years. During this time, however, the water level in Lake Michigan had been gradually rising due to natural processes. Continued operation of the ferry service required that the "apron hinge" of the docking facility be raised to the appuntenant trackage also had to be raised. This Claim deals with the apron hinge work. A companion Claim deals with the raising-of the track.

The Organization position is that the Carrier remained responsible under the lease to maintain Boat Slip No. 2 and appurtenant trackage in a serviceable condition exce that severely damage or destroy the facilities. Since tha·e was no such damage or destruction
Carrier's position is that its obligation under the lease was limited to repairs caused by fair wear and tear and its own negligence. The rising water level does not fit under either criteria. The lease obligated the ferry operator to make the hinge repair, and the ferry operator did so. This was not work by or for the benefit of the railroad. Moreover, the work was not under Carrier's control and the contract was between the ferry operator and the contractor. The pertinent provisions of the lease stated:




Form 1 Award No. 28937
Page 3 Docket No. MW-28268
91-3-88-3-36

Previous Awards of this Board form the well-established principle that Carrier cannot be responsible for repairs and construction on property it leases to other parties where, as here, the work is for the ultimate benefit of others, is made necessary by the impact of the operations of others on Carrier's property and the As such, no notice was required.






                              By Order of Third Division


Attest:
      Nancy J a -Executive Secretary


Dated at Chicago, Illinois, this 29th day of August 1991.