Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD Award No. 29312
THIRD DIVISION Docket No. MW-28797
92-3-89-3-195
The Third Division consisted of the regular members and in
addition Referee Irwin M. Lieberman when award was rendered.
(Brotherhood of Maintenance of Way Employes
PARTIES TO DISPUTE:
(Union Pacific Railroad Company
(former Missouri 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 (Osmose Wood Preserving, Inc.) to perform bridge work at M.P. 207-6 on
the River Subdivision of the Eastern Division on December 1, 2, 3, 4, 7, 8, 9,
10 and 11, 1987 (Carrier's File 880017 MPR).
(2) The Agreement was further violated when the Carrier failed to
properly and timely notify and confer with the General Chairman concerning its
intention to contract said work as required by Article IV of the May 17, 1968
National Agreement.
(3) As a consequence of the violations referred to in Parts (1)
and/or (2) above, B&B Carpenters J. C. Boyer, C. R. Canton, J. W. Penrod, D.
L. Fall and Motor Car Operator S. Parastar shall each be allowed:
'...eight (8) hours per day, per Claimant, and
including any overtime and Holiday pay, and any
additional expense incurred by these furloughed
employees that would normally be covered by benefits paid by the Carrier. This claim is for
DECEMBER 1, 2, 3, 4, 7, 8, 9, 10, and 11, 1987. "'
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.
Form 1 Award No. 29312
Page 2 Docket No. MW-28797
92-3-89-3-195
This dispute involves the contracting of certain specialized bridge
repairing activities over a nine day period in December 1987. Both parties
have raised numerous issues, many theoretical hypotheses and have presented
voluminous precedent to support these arguments. In the Board's view, having
examined the record carefully, certain fundamental facts and Rules are determinative of the issues h
From the record it is clear that the Scope Rule of the contract is
general in nature. Further, the type of work in dispute has been performed
over a long period of time both by employees covered by the Agreement as well
as by outside contractors. Thus, there is no "exclusivity" in fact as an
issue herein.
Article IV
or
the May 17, 1968 National Agreement together with the
Letter of Understanding of December 11, 1980 are controlling in this matter.
Article IV provides as follows:
"ARTICLE IV - CONTRACTING OUT
In the event a carrier plans to contract out work
within the scope of the applicable schedule agree
ment, 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 th
said contracting transaction, the designed representative of the carrier shall promptly meet with hi
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 organization
giving written notice to the carrier involved at any
time within 90 days after the date of this agree-
ment." (Underscoring added)
Form 1
Page 3
Award No. 29312
Docket No. MW-28797
92-3-89-3-195
At the time of the incident specified in this claim, the Claimants
were all in a furloughed status. On October 30, 1987, Carrier notified the
General Chairman of its intention to contract out the work of epoxy injection
concrete work on the bridges in question. Attached to that letter was a
Carrier internal document dated October 27, 1987, which stated that bids had
been solicited and received for the work and that a particular contractor had
been selected. A contract for the work was entered into on November 1, 1987,
with the selected contractor. Thereafter, on November 9, 1987, the conference
between the Organization and the Carrier took place to discuss the contracting
out.
The Organization insists that the Carrier acted in bad faith in this
situation since it had entered into a binding agreement to contract out the
work before even discussing it with the General Chairman. Carrier, on the
other hand asserts that it gave the proper notice as required by the National
Agreement. Furthermore, Carrier notes that it had valid reasons for contracting out the worK since i
or expertise to accomplish the work.
The parties intent expressed
further reaffirmed in the December 11,
standing provides in part as follows:
in Article IV of the 1968 Agreement was
1981 Letter Agreement.That 1981 under-
"The parties jointly reaffirm the intent of
Article _V of the May 17, 1968 Agreement that advance
notice requirements be strictly adhered to and encourage the parties locally to take advantage of th
good faith discussions provided for to reconcile any
differences. In the interests of improving communications between the parties on subcontracting, the
advance notices shall identify the work to be contracted and the reasons therefor."
This Board
a
keenly aware of the major concern of the Organization
to preserve work for its members. We are also aware of the pressures on
Carriers to perform their functions efficiently and at the lowest cost. However, in this case the fa
commitments in good faith. It failed to demonstrate that it was complying
with the requirements of Article IV (or the 1981 Agreement) in good faith. A
pro forma compliance with the letter of the Agreement is obviously meaningless
and cannot be condoned; the decision and actions to contract out the work had
been taken prior to any discussion with the Organization. Based on this
threshold determination alone, the Claim must be sustained (see for example
Third Division Awards 23203, 23928, 26314 and 26770 in support of this conclusion).
With respect to remedy there is an unresolved problem. The record is
unclear as to which work was accomplished by the contractor and which by B 6 B
Gang #3703. For that reason, for purposes of remedy alone, the matter is
remanded to the property for a joint check of Carrier's records to make that
determination as well as to ascertain which of the Claimants were on furlough
at the time that the work was performed. Based on this joint investigation,
the furloughed Claimants will be compensated equally in direct relation to the
contractor's work.
Form 1 Award No. 29312
Page 4 Docket No. MW-28797
92-3-89-3-195
A W A R D
Claim sustained in accordance with the Findings.
NATIONAL RAILROAD ADJUSTMENT BOARD
By Order of Third Division
Attest:
ancy J. r - .Executive Secretary
Dated at Chicago, Illinois, this 24th day of July 1992.