Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD Award No. 29158
THIRD DIVISION Docket No. MW-28125
92-3-87-3-701
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:
(Southern Pacific Transportation Company (Western 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 perform roofing work on the Roundhouse, Store Department Office and
Locker Room area located in Eugene Yard, Eugene, Oregon beginning January 2,
1986 (System File 152-1043).
(2) As a consequence of the aforesaid violation, furloughed B&B
Foreman C. L. Bowman and furloughed B&B Carpenters F. A. Schmitter, J. A.
Dingrando, C. L. Duwell, V. A. Kivett, G. R. Szekely, R. J. Kohansby and G. V.
Duwell shall each be allowed one hundred seventy (170) hours of pay at their
respective straight time rates and forty (40) hours of pay at their respective
time and one-half 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.
By Notice dated November 5, 1985 ("Notification No. 69"), the Carrier
advised the Organization that:
"It is our intention to contract out for partial
replacement of roof at Eugene, Oregon, Locomotive
Maintenance Plant.
Company forces do not possess the equipment or
expertise for this type of work.
Our right to contract this work out without first
obtaining the consent of the Brotherhood of Maintenance of Way Employes is clearly established."
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By letter of November 13, 1985, the organization requested a meeting for
clarification and further stated that the covered employees were fully qualified to
perform the work. That meeting did not resolve the dispute to the Organization's
satisfaction. Acme Roofing Company performed the repairs during the period January 2,
1986 through January 25, 1986. This claim followed on February 24, 1986. The
Organization asserts that during this period Acme used one foreman, seven roofers and
worked 10 hours per day for 21 days for a total of 1,680 hours.
During the handling of the claim on the property in its letter of February
24, 1986, the Organization cited other instances where B&B employees performed reroofing work. W
Carrier did not possess the equipment for this work, the Organization pointed out that:
,t
Even though the Mgt. or B&B no longer has the equipment
for roofing, it can be rented, we are talking of Hot-Tar
Rentals - 4340 Franklin Blvd. Eugene, Oregon 97403 (Tel.
No. 726-6517) has just such equipment. Tar Kettle's [sic]
rent for $30.00 per day, the propane comes at extra cost.
Mr. Young with so many of our B&B Carpenter's, and Welder's
[sic] on furloughed status, I can not sit by and watch this
situation go unchecked.
In response, the Carrier asserted by letter of March 19, 1985:
Notification #69 was issued to the Organization on November
8, 1985 of Carriers intent to contract out for partial
replacement of roof at Locomotive Maintenance Plant,
Eugene, Oregon, as the Company does not possess the
equipment or expertise for this type of work.
Our right to contract this work out without first
obtaining the consent of the BofMofWE is clearly
established."
In its letter of December 19, 1986, the Carrier maintained that the Scope
Rule was general and throughout the life of the Agreement and for many years before,
outside contractors have performed similar work. The Carrier
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92-3-87-3-701
further cited five instances during the period January 9, 1985 through
September 8, 1986 wherein outside contractors performed roofing work without objection by the Organi
existed. The Organization responded by letter of August 26, 1987 referencing
statements from employees asserting that they performed re-roofing work in the
past.
Article IV of the 1968 Agreement provides:
"ARTICLE IV - CONTRACTING OUT
In the event a carrier plans to contract out work
within the scope of the applicable schedule agreement, the carrier shall notify the General Chairman
of the organization involved in writing as far in
advance of the date of the contracting transaction as
is practicable and in any event not less than 15 days
prior thereto.
If the General Chairman, or his representative,
requests a meeting to discuss matters relating to
the said contracting transaction, the designated
representative of the carrier shall promptly meet
with him for that purpose. Said carrier and organization representatives shall make a good faith
attempt to reach an understanding concerning said
contracting, but if no understanding is reached the
carrier may nevertheless proceed with said contracting, and the organization may file and progress
claims in connection therewith.
Nothing in this Article IV shall affect the
existing rights of either party in connection with
contracting out. Its purpose is to require the
carrier to give advance notice and, if requested, to
meet with the General Chairman or his representative
to discuss and if possible reach an understanding in
connection therewith.
Existing rules with respect to contracting out on
individual properties may be retained in their entirety in lieu of this rule by an org
written notice to the carrier involved at anytime
within 90 days after the date of this agreement."
The December 11, 1981 Letter of Agreement states, in relevant part:
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"During negotiations leading to the December 11,
1981 National Agreement, the parties reviewed in
detail existing practices with respect to contracting
out of work and the prospects for further enhancing
the productivity of the carrier's forces.
The carriers expressed the position in these
discussions that the existing rule in the May 17,
1968 National Agreement, properly applied, adequately
safeguarded work opportunities for their employees
while preserving the carriers' right to contract out
work in situations where warranted. The organiza
tion, however, believed it necessary to restrict such
carriers' rights because of its concerns that work
within the scope of the applicable schedule agreement
is contracted out unnecessarily.
Conversely, during our discussions of the car
riers' proposals, you indicated a willingness to
continue to explore ways and means of achieving a
more efficient and economical utilization of the work
force.
The carriers assure you that they will assert
good-faith efforts to reduce the incidence of sub
contracting 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.
The parties jointly reaffirm the intent of
Article IV of the May 17, 1968 Agreement that ad
vance notice requirements be strictly adhered to and
encourage the parties locally to take advantage of
the good faith discussions provided for to reconcile
any differences. In the interests of improving com
munications between the parties on subcontracting,
the advance notices shall identify the work to be
contracted and the reasons therefor.
After review of the record, we find that the Organization has demonstrated a violation of the Ag
affirmative relief will be required.
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First, the mere fact that the Carrier gave advance notice to the
Organization of its intent to contract out the disputed work is not an admission of a violation of t
Award 27608 ("the fact that the Carrier gave notice to the Organization that
it intended to contract out the work is not a fatal admission..."). The
merits of the Organization's claim must rise and fall upon the strength of the
facts and the language of the Agreement concerning when the Carrier can contract out work.
Second, the Carrier's argument that the Organization has not shown
that the covered employees performed re-roofing work on an "exclusive" basis
does not dispose of the matter. On its face, Article IV does not specifically
provide that the disputed work must be exclusively performed by the employees.
Rather, Article IV addresses "work within the scope of the applicable schedule
agreement" and does not refer to work that is "exclusively" performed by the
covered employees. Based upon our reading of the Scope Rule and the statements of the employees that
are satisfied that the re-roofing work at issue was "within the scope" of the
Agreement.
Third, but Article IV also states that "Nothing in this Article IV
shall effect the existing rights of either party in connection with contracting out" and the Carrier
that the organization is obligated to demonstrate exclusivity. See e.g.,
Third Division Awards 25370, 23303. However, we are also not satisfied that
those Awards dispose of the matter. A reading of those Awards show that the
incidents giving rise to the claims in those cases occurred prior to the
December 11, 1981 Letter of Agreement which provides that the Carrier "will
assert good-faith efforts to reduce the incidence of subcontracting and increase the use of [its] ma
including the procurement of rental equipment and operation thereof by carrier
employees." The dispute in Award 25370 arose during the period November 10,
1980 through January 9, 1981 and the dispute in Award 23303 covered the period
April 21, 1978 through May 11, 1978. Given the parties' further agreement set
forth in their December 11, 1981 letter, we cannot find under the circumstances of this case that th
Fourth, the record sufficiently establishes that the Carrier did not
adhere to the commitments contained in the December 11, 1981 letter to "reduce
the incidence of subcontracting" and to attempt "procurement of rental equipment and operation th
forces do not possess the equipment or expertise for this type of work." That
position was reiterated by the Carrier in its March 19, 1985 letter. With
respect to the "expertise" for the re-roofing work, the statements of the
employees sufficiently demonstrate that they had the capability to perform the
type of work at issue. With respect to the lack of equipment, the Organization pointed out that the
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rented locally- The Carrier did not refute those assertions. Having raised
the lack of expertise and lack of equipment questions and given the showings
by the Organization to counter those assertions, their burden shifted to the
Carrier to refute the Organization's contentions that the employees were
capable of performing the work and that rental equipment could reasonably be
obtained. The Carrier did not do so. We therefore find that based on this
record, the Carrier did not adhere to the commitments of the December 11, 1981
letter to reduce contracting out and to attempt to procure rental equipment.
Inasmuch as that letter is explanatory of Article IV, given the facts presented in this case, we the
Fifth, with respect to the remedy, the Carrier has pointed to five
specific instances during the period January 9, 1985 through September 8,
1986, wherein the Carrier has contracted out this type of work. This record
shows that those instances of contracting out were not objected to by the
Organization. See the Carrier's letter of December 18, 1986 where, after
listing the instances of contracting out (three prior to filing of this claim
and two subsequent to the filing of the claim) the Carrier asserts "At no time
during the past several years has any objection been raised by the Organization concerning the above
protest the Carrier's similar past actions which the Organization now asserts
in this instance was violative of the Agreement, the Organization effectively
lulled the Carrier into believing that it could continue to contract out the
disputed work without objection. Under the circumstances, although the organization has demonstrated
will be required.
A W A R D
Claim sustained in accordance with the Findings.
NATIONAL RAILROAD ADJUSTMENT BOARD
By Order of Third Division
Attest:
Nancy er·- Executive Secretary
Dated at Chicago, Illinois, this 3rd day of April 1992.