Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD Award No. 29121
THIRD DIVISION Docket No. MW-29211
92-3-90-3-85
The Third Division consisted of the regular members and in
addition Referee John C. Fletcher when award was rendered.
(Brotherhood of Maintenance of Way Employes
PARTIES TO DISPUTE:
(Union Pacific Railroad Company
STATEMENT OF CLAIM: "Claim of the System Committee of the Brotherhood that:
(1) The Agreement was violated when the Carrier assigned outside
forces (L 6 T Paint Contractors, Inc.) to paint the interior of the System
Maintenance of Way Shop at Pocatello, Idaho beginning November 29, 1988 and
continuing (System File 5-108/890211).
(2) The Agreement was further violated when the Carrier failed and
refused to timely meet with the General Chairman and make a good-faith attempt
to reach an understanding concerning said contracting as required by Rule
52(a).
(3) As a consequence of the violations referred to in Parts (1)
and/or (2) above, furloughed B&B Painters G. L. Evans, S. L. Irvin and W. S.
Wallace shall each be allowed pay at their respective rates for seven hundred
four (704) straight time hours and forty-eight (48) overtime hours."
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 9, 1988, Carrier served notice on the Organization that
it intended to contract out the work of painting the interior of its System
MI
aintenance of Way Shop at Pocatello, Idaho. The notice provided:
Form 1 Award No. 29121
Page 2 Docket No. MW-29211
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"This is to advise of the Carrier's intent to
solicit bids to cover the painting of the interior
of the Pocatello, Idaho, Maintenance of Way Shop.
Special equipment is required to access certain
portions of this building."
The Organization responded to the notice stating:
"As you know Rule 52 provides that the Carrier
may contract out Maintenance of Way work under one
or more of six (6) specific conditions. The six
conditions to which I refer are:
1. Special skills are not possessed by the
Company's employees.
2. Special equipment is not owned by the
Company.
3. Special material not possessed by the
Company is only available when applied or installed by the supplier.
4. The work in question is such that the
Company is not adequately equipped to handle it.
5. Emergency time requirement situations exist
which present undertakings not contemplated by the
agreement.
6. Work in question is beyond the capacity of
the Company's forces.
Additionally, this Organization received the
following commitment from NRLC Chairman C. I. Hopkins
in his letter of December 11, 1981.
'The carriers assure you that they will
assert good-faith efforts to reduce the incidents of subcontracting and increase the use
of their maintenance of way forces to the extent practicable, including the procurement
of rental equipment and operation thereof by
carrier employees.
Form 1 Award No. 29121
Page 3 Docket No. MW-29211
92-3-90-3-85
The parties jointly reaffirm the intent
of Article IV of the May 17, 1968 Agreement
that advance notice requirements be strictly
adhered to and encourage the parties locally
to take advantage of good-faith discussions
provided for to reconcile any differences.
In the interest of improving communications
between the parties on subcontracting, the
advance notices shall identify the work to be
contracted and the reasons thereof. (Underscoring
added)
In this connection you claim, 'Special equipment
is required to access certain portions of the build
ing.' However, you have failed to advise what the
equipment in question; whether or not the Carrier has
the equipment in its inventory; whether or not the
Carrier can rent, lease or purchase the equipment;
why the Carrier's own B&B forces cannot paint the
interior as it has done in the past; and why, with
only 'portions' of the building purportedly pre
senting the problem, the Carrier is proposing to
contract out the painting of the entire building.
In view of these circumstances I cannot enter
into an agreement with the Carrier at this time to
allow it to contract the Maintenance of Way Depart
ment work to outside forces. Provided the Carrier
chooses to ignore this advice and intends to contract
this work out in any event, I request a conference be
scheduled and held prior to the work being assigned
to and performed by a contractor, for the purpose of
discussing the matters relating to said contracting
transaction."
The Carrier responded to the above with a suggestion that the requested conference be scheduled
did not actually occur until December 22, 1988. The Contractor started work
on the project on November 29, 1988, six days before the date first suggested
by the Carrier for the conference requested by the General Chairman.
Rule 52, Contracting, is the operative agreement provision involved
here. It has been exhaustively reviewed in a plethora of Third Division
Awards involving this Carrier and this Organization. In several of these
Awards subcontracting notice requirements have been dealt with. In Third
Division Award 23578, this Board rejected the notion that such notice was only
required in situations where the disputed work was exclusively reserved to
members of the Organization. In that Award the Board remarked:
Form 1 Award No. 29121
Page 4 Docket No. MW-29211
92-3-90-3-85
"The lack of a notice foreclosed the Organization
from exercising its option to request a meeting to
discuss the propriety of contracting the disputed
work."
Award 23578 was released shortly following the December 11, 1981
letter - offering assurances of carriers' good faith efforts to reduce subcontracting and increase t
that the advance notice shall identify the work to be contracted and the
reasons therefore.
Award 23578 was followed by Third Division Award 26174 (to name but
one in the intervening period). In Award 26174 the Board remarked:
"The opportunity to discuss subcontracting is an
important one. Although Carrier may argue, for example, that its employes are now fully employed, it
may be possible for the parties to consider a schedule for performing the work at a time when it is
mutually convenient to do so. As noted in Third
Division Award 23354, 'For Carrier to ignore this
requirement and move ahead with a subcontract because
it either thinks that the work to be performed by the
outsider is not work exclusively reserved to covered
employes or claims it does not have the proper equipment is unacceptable."
Subsequently, 7otice matters were dealt with in Third Division Awards
26422 and 27011. In Award 27011 the Board directed the Carrier to provide
notice of subcontracting in the future. It would be illogical to assume that
"directing Carrier to provide notice in the future" merely contemplated pro
forma compliance with Rule 52 and that other elements of the procedure associated with subcon
the assurances and reaffirmation of intent expressed in the December 11, 1981
letter.
While many of the Awards dealing with no notice (or a defective
notice) did not provide a monetary remedy for the defect, Third Division Award
27570 (between these parties) did so. Two years later, in Third Division
Award 28619, a monetary remedy was not provided, but the Board again directed:
. . .Carrier to provide notice in the future in
accordance with the provisions of the schedule Agree-
ment. (underlining added)"
Form 1
Page 5
Award No. 29121
Docket No. MW-29211
92-3-90-3-85
And finally in third Division Award 28943 the Board sustained a claim
and provided a monetary remedy when the Carrier failed to adequately demonstrate that it acted in go
prior to the discussion meeting requested by the General Chairman.
Thus it seems =:pat the language of the Rule, the December 11, 1981
letter and our prior Awards have established a standard whereby Carrier must
give the General Chairman notice of all instances where maintenance of way
work is to be contracted and must engage in good faith efforts "to reduce the
incidents of subcontracting and increase the use of their maintenance of way
forces."
With this standard in place it is necessary to look at the record and
make a determination if the required good faith effort was exhibited in the
contract let for the painting of the Pocatello, Idaho, Maintenance of Way
shop. Careful examination of this record fails to establish that any such
good faith effort was attempted. In fact the opposite seems to be the situation. For one thing, :he
painters available to do the work. For another Carrier has not supported its
contentions that any special equipment was required in the project. Both
facts were stressed by tie General Chairman upon receipt of the notice and at
all times thereafter.
But even so, to correspondence Carrier directed to the General
Chairman on the subject, when fairly read, clearly manifest two points, the
notice was only served =o generate pro forma compliance with the requirements
of the Rule that a notice be given and that Carrier considers the assurances
of the December 11, 198: letter (supra) to be absolutely meaningless.
With regard to the first point, it is noted that on February 8, 1989,
Carrier's Assistant Director Labor Relations candidly stated:
"In this case since the work is not scope
covered, the Company gave notice for informational only and not for bargaining purposes."
And, with regard to the second point, when commenting on the General Chairman's reference to NRL
... will
assert
good-faith efforts to reduce
...
subcontracting," the Assistant Director Labor
Relations continued:
"The above language is not actually contained in
the body of the 1981 National Agreement. It is part
of a side azreement establishing a standing committee
to deal wit'= the subcontracting question. The abovequoted language appears to have been a quid pro
relating to Eormation of the standing committee.
That standing committee is no longer functioning and
it has not teen renewed by any of the subsequent
national agreements. The entire side agreement including the language quoted above is therefore now<
Form 1 Award No. 29121
Page 6 Docket No. MW-29211
92-3-90-3-85
simply a dead letter. Even if the now in active
agreement were to be given any weight, the real
significance is that it recognizes the right of the
industry to subcontract, which right already existed
in 1981. (Emphasis added.)"
This Board does not view the December 11, 1981 letter in the same
vein. It has been discussed in scores of our Awards involving this and other
carriers. It is not "simply a dead letter" which can be ignored. The letter,
inter alia, stressed good faith efforts to reduce the incidence of subcontracting and increas
correct that it was a quid pro quo (the situation in most if not all labor -
management accords) being a quid pro quo does not dilute its viability and in
the circumstances present here Carrier is not entitled to enjoy the fruits of
the bargain without adhering to the assurances of its Chief Negotiator, as
memorialized within a formal document attached to and made a part of the 1981
National Agreement.
This record does not demonstrate, in fact it does not hint, that
good faith efforts of any type were advanced in a manner the Organization had
been assured they would be in the December 11, 1981 letter. Accordingly the
Agreement was violated. The Claim will be sustained. Claimants were furloughed painters at the time
readily available to Carrier has been shown to have been required to complete
the project. Accordingly Claimants are entitled to be compensated for the
hours set forth in Part (3) of the Statement of Claim.
A W A R D
Claim sustained.
NATIONAL
RAILROAD ADJUSTMENT
BOARD
By Order of Third Division
Attest:
cy J. a Executive Secretary
Dated at Chicago, Illinois, this 28th day of February 1992.
CARRIER MEMBERS' DISSENTING OPINION
TO
AWARD 29121, DOCKET MW-29211
(Referee Fletcher)
The Majority found that the Carrier had not complied with
the Agreement when it served notice of its intent to contract
out work; suggested a date to the Organization to meet to confer
about its intent to contract out; and allowed the contractor to
commence work prior to the date it set for the conference. The
Majority further found that inasmuch as all named Claimants were
furloughed at the time, a backpay remedy would be appropriate.
If the Majority had contented itself with the unique set of
circumstances of =he case, no dissent would have been necessary.
Unfortunately, the Majority was not content, but instead, delivered a six-page peroration of the par
forth its own views on the subject, it professes to base its
conclusions on an analysis of prior Awards which have interpreted the Agreement. It is such professi
dissent.
There have been nearly two dozen Awards of this Board and
Public Law Boards that have interpreted nearly every imaginable
facet of the parties Agreement dealing with the subject of
contracting out, including the good-faith responsibilities of
the parties. The prior Awards do not support the Majority's
declarations. Indeed, prior Awards have found the evidence of
contracting out to be so compelling, that backpay was denied to
furloughed employees even when no prior notice was served.
Carrier Members' Dissent
Award 29121, Docket MW-29211
Page 2
Third Division Awards: 27011, 28619, 28622, 28623, 28789.
Indeed, in another contracting out dispute between these parties, the Board denied the Claim
notice was provided. Third Division Award 28610.
The purpose of this dissent is not to debate the issue here
but simply to go on record as registering our strong disagreement with the Majority's characterizati
Fortunately, for the Carrier, the prior Awards speak very
clearly for themselves.
M. W. Fin'gerh
'R. L. Hicks
M.~snik
P. V~. Varga
J. E. Yost
LABOR MEMBER'S RESPONSE
TO
CARRIER MEMBERS' DISSENTING OPINION
TO
AWARD 29121. DOCKET MW-29211
(Referee Fletcher)
The Majority was correct in its ruling in Docket MW-29211 and
nothing present in the Carriers' dissent distracts from the
correctness and precedential value of this award.
The dissent attempts to portray this claim as containing a
unique set of circumstances. The only unique thing about this
claim and the subsequent award is that an arbitrator finally
interpreted the language of the Agreement as written. There are
literally hundreds of claims before this Board where the notice
issue is involved and until the rendering of this award, some
arbitrators had taken a very lenient approach to enforcing the
clear and unambiguous language of the rule.
The dissent goes on to contend that the Majority's
interpretation of prior awards is incorrect based on the compelling
evidence of a past practice of contracting by the Carrier. What
the Majority obviously recognized in this case was that past
practice is not established by mere lists of dates and locations.
What the Majority further recognized in this case was that a past
practice can not abrogate the clear terms of an agreement. If the
parties had intended to negotiate an agreement without meaning,
Labor Member's Dissent
Award 29121
Page Two
they would not have bothered to put pen to paper. In any event,
regardless of any perceived past practice, the Organization put the
Carrier on notice in 1981 that the notice provision was to be
enforced. Because the Carrier is using the same arguments now that
it used then, it is only appropriate that an award was finally
rendered to enforce the Agreement.
The contracting provisions of the effective Agreement as
amended by the December 11, 1981 Letter of Agreement were properly
evaluated, the characterization of the prior awards is correct and
it is finally evident that the terms "good faith" and "notice", to
name but two, have meaning. The award is correct and stands as
precedent.
Respectfully submitted,
D. D. Bartholoma
Labor Member