NATIONAL RAILROAD ADJUSTMENT BOARD
Form 1 THIRD DIVISION Award No. 29471
Docket No. MW-29858
93-3-91-3-226
The Third Division consisted of the regular members and in
addition Referee Thomas J. DiLauro when award was rendered.
(Brotherhood of Maintenance
(of Way Employes
PARTIES TO DISPUTE:
(CSX Transportation, Inc. (former
(A&WP-WofA-AJT-Georgia Railroads)
STATEMENT OF CLAIM:
"Claim of the System Committee of the Brotherhood that:
(1) The dismissal of Gang Cook E. W. Taylor for alleged
violation of CSX Transportation Safety Rule 26 on September 4, 1990
and for alleged violation of CSX Transportation Rule 500 on
September 10, 11 and 17, 1990 was without just and sufficient
cause, on the basis of unproven charges and in violation of the
Agreement.
(2) The Claimant shall be reinstated in the Carrier's service
with seniority an all other rights unimpaired: he shall have his
personal record cleared of the charges leveled against him and he
shall be made whole for all wage and fringe benefits loss suffered
as a result of the Carrier's actions."
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.
Prior to his dismissal, Claimant was employed as a Cook for
Gang No. 6A28. Previously, the Claimant was found guilty of
violating operating Rules 500 (absent without permission) and 501
(insubordination), and was dismissed. On appeal, a Public Law
board reinstated the Claimant without backpay on a "last chance"
basis.
Form 1 Award No. 29471
Page 2 Docket No. MW-29858
93-3-91-3-226
By letter dated September 7, 1990, the Claimant was charged
with violating Safety Rule 26 for an incident which occurred on
September 4, 1990, when the Claimant's girlfriend was found in his
assigned camp car. Safety Rule 26 provides:
"Only authorized persons may be permitted in buildings,
around repair tracks and facilities or other railroad
property."
On September 10, 11, and 17, 1990, the Claimant was absent
from service as a result of automotive problems with his personal
vehicle. Although the Claimant did not have the telephone numbers
for his Roadmaster, Assistant Roadmaster, or Foreman, the Claimant
telephoned the Assistant Cook and/or left a message for him to
advise the Foreman of his intended absence and the reason therefor.
By letter dated September 18, 1990, the Claimant was charged with
violation of operating Rule 500 for failing to protect his
assignment as Cook and failing to obtain permission to be absent
from the proper authority. Rule 500 provides in relevant part:
"Employees must not absent themselves from duty ...without
permission from their supervisor."
As a result of the facts adduced during the separate Hearings
conducted on September 20, 1990, the Carrier dismissed the
Claimant.
The
organization contends
the Claimant was disciplined in
violation of the Agreement because the decision was not timely
rendered. Rule 39, Section 2 states "a decision in writing will be
rendered within ten (l0) calendar days from the close of the
hearing." The Hearings were held on September 20, 1990, and the
decisions were issued on October 1, 1990. The Agreement obligates
the Carrier to render a decision within ten days of the date of the
Hearing. (Fourth Division Award 1995). Time limits are to be
construed strictly and they are two-edged swords which cut equally
whether to work a forfeiture against an employee or to invalidate
action taken by the employer. (Third Division Award 2960). The
ten days was fixed by the parties. It is not within the authority
or competence of this Board to substitute for it some other
arbitrary number of days. (First Division Award 16366). The
Carrier has only ten days to render a decision. Failing to do so,
it had the effect of exonerating the Claimant on the charge
preferred (Third Division Award 24623).
The Carrier concedes it was late in rendering a decision
because two weekends intervened. It argues the requested remedy is
beyond the scope of the Agreement, and Rule 39, Section 2 lacks a
specific penalty that nullifies the entire disciplinary proceeding
Form 1 Award No.29471
Page 3 Docket No. MW-29858
93-3-91-3-226
for failure of the Carrier to render a decision within ten days.
The carrier asserts it is a basic principle of the common law of
damages that absent any specific penalty provision, a remedy for
breach of contract must be limited to actual proven damages. If
the Rule provides no penalty for failure to comply strictly with
its terms, the failure to render the decision in the time allotted
is not fatal to the Carrier's position absent some showing of
prejudice to the claimant. (First Division Awards 15579 and
13845).
The Carrier further argued that technical violations do not
vitiate the entire discipline unless there is a penalty provision.
(Third Division Award 20423). Agreements of this kind, regulating
the employer-employe relationship must be given a reasonable,
workable construction and not construed so narrowly as to defeat
justice. (Second Division Award 2466). If the Agreement imposes
a penalty for its violation, we may reasonably assume that the
parties intended that its provisions be followed, and the
provisions are construed as being mandatory. If the Agreement
imposes no penalty and its provisions are not followed, the
provisions are directory, not mandatory. (Third Division Award
16172).
The Carrier also notes the damages for procedural violations
must be limited to the time of delay. (First Division Award 16007,
Second Division Award 6360, Third Division Awards 19842, 14348,
11775). The remedy for violation of that provision is damages for
any delay that may have occurred, not reinstatement with an
unassailable record or damages for an indeterminate period on the
theory that the proceedings otherwise properly held were a nullity.
Atlantic Coast Line v. BRAC. 210 F.2d 812 (4th Cir. 1954).
The Organization further maintains the decision of the Hearing
held on September 20, 1990, was improperly rendered by the Division
Engineer. The Claimant was denied due process, because, although
the Division Engineer was not present at the Hearings, he rendered
the decision. (Third Division Award 17901).
The organization asserts the Carrier failed to present any
evidence to support its position. When the Carrier charges an
employee with a Rule violation or an act of negligence, the burden
of proof is upon the Carrier to prove the charge. (Third Division
Awards 14120, 13306). The Carrier must show 1) what the complete
content of the cited Rules were, 2) that those Rules were
transmitted to the claimant and/or that he had full knowledge of
their content, and 3) that he violated the Rules. Although a
portion of Safety Rule 26 and operating Rule 500 were cited within
the charge and Hearing notice, the complete content of the Rules
Form 1 Award No. 29471
Page 4 Docket No. MW-29858
93-3-91-3-226
was not divulged at either Hearing held on September 20, 1990.
Therefore, the Carrier could not prove the claimant violated the
Rules. The Third Division held: "It cannot be ascertained which
of Claimant's activities could have violated provisions of Rule 'G'
because the contents of the Rule do not appear in the record."
(Award 26060)
The organization finds no basis for discipline in connection
with the charges concerning an unauthorized individual found on the
claimant's camp car because Claimant was not present at the time
the unauthorized person was seen, Claimant denied any knowledge
thereof, and the Carrier failed to present any evidence to
substantiate or corroborate the testimony of the Assistant
Roadmaster. In Third Division Award 24336, the Board held: "A
review of the whole record reveals that the Carrier did not make
the case and failed in its burden of proving a violation of the
rules stated... for want of clear proof the claim will be
sustained." (Third Division Awards 14120, 20048).
In response, the Carrier notes "once charged and accused of a
violation, let not the claimant or his representative fail to
prepare their defense to said charge, by ignoring their procedural
rights under the controlling agreement to present witnesses in
support of their defense and other credible evidence." (Fourth
Division Award 3578). The Claimant in this case offered no
corroborating evidence.
The Organization notes the Claimant's absences on September
10, 11, and 17, 1990, were the direct result of car trouble. The
Third Division has consistently held that absences as a result of
car trouble are considered justifiable cause. (Awards 19589 and
20198). Even if discipline was appropriate, dismissal was
arbitrary, capricious, and extremely harsh under the circumstances.
It was common knowledge that Claimant was experiencing problems
with his personal vehicle, and he was actively trying to repair his
vehicle and meet is obligations to the Carrier. Although the
Claimant was not provided with the telephone number of his Foreman
until after the absences, the claimant attempted to notify the
Carrier of his absences by telephoning the Assistant Cook and/or
leaving a message for him to notify the Foreman of his absences and
reasons therefor.
The Carrier argues the Board has consistently held that
Carriers are entitled to reliable attendance from its employees,
and it has declined to interfere with disciplinary action imposed
by a carrier against employees who are absent without proper
authority. (Second Division Awards 9576, 9072, 6710, 9471 and
8796: Third Division Award 24552). Further the Carrier notes the
Claimant had been reinstated on a last chance basis.
Form 1 Award No. 29471
Page 5 Docket No. MW-29858
93-3-91-3-226
With respect to the substantive charges, this Board finds that
there is sufficient probative evidence in the record to establish
that the Claimant is guilty of the charge against him. The Carrier
demonstrated the Claimant violated Rule 26 for permitting an
unauthorized person in the camp car. The Carrier demonstrated the
Claimant violated Rule 500 by failing to obtain permission from his
immediate supervisor to absent himself from his duties as Cook on
September 10, 11, and 17, 1990. In addition, the Carrier
demonstrated sufficient persuasive precedent to excuse the delay in
rendering the discipline, absent a provision in the Agreement
specifying a remedy.
With respect to the disciplinary action, the Board will not
set aside discipline imposed by a Carrier unless it is
unreasonable, arbitrary, or capricious. Third Division Award
26160. In this case, the Claimant had been reinstated on a last
chance basis. As a result, the violation of Rules 26 and 500
justifies dismissal.
A W A R D
Claim denied.
NATIONAL RAILROAD ADJUSTMENT BOARD
By Order of Third Division
Attest:
Nancy J. r - Executive Secretary
Dated at Chicago, Illinois, this 21st day of January 1993.
r
LABOR MEMBER'S DISSENT
TO
_AWARD 29471, DOCKET MW-29858
(Referee DiLauro)
The Majority denied this docket in honoring the palpably
erroneous presumption that Rule 39, Section 2 is "directory" and
not "mandatory" in nature. For ready reference, Rule 39 reads:
"RULE 39
DISCIPLINE AND GRIEVANCES
Section 1
An employee who has been in the service sixty (60)
calendar days or more will not be disciplined or dismissed without a proper hearing as provid
Section 2 of this Rule. He may, however, be held out of
service pending such hearing.
Section 2
An employee against whom charges are preferred, or
who may consider himself unjustly treated, shall be
granted a fair and impartial hearing by a designated
official of the Company. Such hearing shall take place
within ten (10) calendar days after notice by either
party. Such notice shall be in writing, with copy to
General Chairman, and shall clearly specify the charge or
nature of the complaint. He shall be given reasonable
opportunity to secure the presence of necessary witnesses
and shall have the right to be represented by the duly
accredited representatives of the employees. All
witnesses except the one testifying will be excluded from
the hearing both before and after testifying. No
testimony or statements will be admitted in evidence at
the hearing except such as may bear directly upon the
precise charge against the employee, except that the
official service record of the employee involved will
always be admissible. No evidence or statements will be
admitted to the record of hearing, or used in assessing
discipline, except such as have been introduced at the
Labor Member's Dissent
Award 29471
Page Two
"hearing, and which have been subject to cross-examination. A decision in writing will be
within ten (10) calendar days from the close of the
hearing. A copy of the transcript of evidence taken at
the hearing, and a copy of the decision, will be furnished the employee affected and his repr
Section 3
If the decision be in favor of the employee, his
record shall be cleared of the charge, and if suspended
or dismissed, he will be reinstated to his former
position with seniority unimpaired.and shall be compensated in the amount he would have earne
in the service less the amount earned in other employment.
Section 4
If the decision is not satisfactory, the case may be
appealed provided written notice of appeal is given the
official rendering the decision within ten (10) calendar
days thereafter. The conferences on appeal will be held
within fifteen (15) calendar days from date of written
notice of appeal. The right of appeal in the usual
manner up to and including the highest official designated by the Railroad to whom appeals may
established.
If the charge against the employee is sustained and
he is dismissed and later reinstated, the manner of his
exercising his seniority will be subject to agreement
between the General Chairman and the Management.
Section 5
At the hearing or on appeal, the handling of the
case must be by the employee affected or by one or more
duly accredited representatives as defined in Rule 49.
Section 6
Whenever charges are preferred against an employee,
they will be filed within ten (10) days of the date
violation becomes known to Management. Of course, this
Labor Member's Dissent
Award 29471
Page Three
"would not preclude the possibility of the parties
reaching agreement to extend the ten-day limit."
what is abundantly clear from an uncomplicated reading of the
above-quoted rule is that an employee who has been in service sixty
(60) calendar days or more will not be disciplined or dismissed
without a Proper hearing as Provided for in Section 2 of said rule.
What is equally clear from an uncomplicated reading of the abovequoted rule is that the words "wi
directory. In support of our position in this regard are Third
Division Awards 11225, 12092, 12397, 12632, 16799, 18352 and 23482
which are but a mere sampling of the plethora of decisions of this
Board which held to the effect that "will" is MANDATORY vis-a-vis
"directory". See also Third Division Awards 10852, 13097, 13721,
13959, 14204, 17947, 22258, 22898, 23459, 23496, 25465, 25888,
28133 and 28927 which held to the effect that "shall" is MANDATORY
vis-a-vis "directory". See also awards concerning "shall" and
"will" relative to the time limits for claims handling which also
support our position and are so numerous as to preclude the
necessity of citation herein. Moreover, it is abundantly clear
that where the parties intended for the contractual provisions of
Rule 39 to be permissive and/or directory, the word "may" appears.
Labor Member's Dissent
Award 29471
Page Four
The salient point here is that the Majority's findings in Award
29471 are plainly grounded on an erroneous premise.
In the dispute which precipitated the award in question, the
Carrier conceded its nonfeasance, i.e., that its decision of
discipline was rendered outside the specifically stipulated ten
(10) day time limits agreed to by the Parties in Rule 39, Section
2. Therefore, from an uncomplicated reading of the record of this
case, due process in accordance with the provisions of Section 2 of
Rule 39 did NOT occur. However, instead of sustaining the claim
based on the organization's properly presented procedural argument,
the Majority ignored the literal, common and ordinary meaning of
the above-quoted Rule 39 and improperly considered the merits of
the discipline. Moreover, as if to add insult to in3ury, the
Majority found the Carrier's stated reason for late issuance of its
disciplinary decision remarkable, i.e., that two weekends had
occurred within the ten (10) calendar days following the close of
the hearing involved. In other words, the Majority found the
Carrier's view concerning two (2) Saturdays and two (2) Sundays
noteworthy, as if those days were something other than calendar
days when it came to rendering a decision of discipline pursuant to
Rule 39, Section 2. Obviously, the Carrier's stated reason for its
Labor Member's Dissent
Award 29471
Page Five
admitted violation bordered on the absurd. The point is, the
Majority modified the agreed to language of Rule 39. A modification which finds no essence in the Ag
fundamental axiom that the Board is without authority to amend or
modify the Agreement, it is crystal clear that the Majority
exceeded its jurisdiction by adding a condition to the Agreement in
this instance and rendering Rule 39, Section 2 ineffectual. The
condition which the erroneous "directory" premise led the Majority
to devise was that the Carrier's violation had not prejudiced the
Claimant. While not altogether new, this conclusion runs contrary
to the clearly predominant view of arbitral authority with regard
to,the identical contractual language, including substantial and
recent precedent involving this Carrier and on this property. In
this instance, the Majority displayed naivete in departing from
both time honored and recent decisions of arbitrators well-versed
in the railroad industry. The findings demonstrate conclusively
that the Majority attempted to look behind the clear contractual
language of Rule 39 to fashion its anomalous brand of industrial
justice. Such maverick views of individualized industrial justice
violated a hornbook principle of How Arbitration Works (Elkouri, et
al.) and rendered the findings palpably erroneous and of no
precedential value whatsoever.
Labor Member's Dissent
Award 29471
Page Six
To emphasize just how wrongheaded Award 29471 is, we invite
attention to a sampling of the awards which considered the same
issue, the same contractual language and which sustained the claim
for the Employes. The below listed sampling of such awards
represents the mainstream, predominant view of the Board on this
issue:
First Division Award Second Division Award
16366 (Daugherty) Apache Railway 2364 (Carter) NP
Third Division Awards Third Division Awards (cont)
2590 (Blake) SPW 11019 (Ray) MP
3502 (Douglas) Pullman 14496 (Rohman) Valdosta Southern
3697 (Miller)
TRR
14497 (Rohman) Valdosta Southern
3736 (Wenke)
TRR
19796 (J. Sickles) DTS
5472 (Carter) ICG 21040 (J. Sickles) CNW
8160 (Bailer) NYC 21675 (Blackwell) BN
8714 (Weston) MP 21873 (Zumas) BN
10035 (Daly) MP 23553 (Dennis) Belt Railway
Public Law Boards Public Law Boards (cont)
2960 (Vernon) CNW, Award 3 1844 (Eischen) CNW, Award 62
3397 (J. Sickles) ICG, Award 69 1844 (Eischen) CNW, Award 79
1844 (Eischen) CNW, Award 19 1844 (Eischen) CNW, Award 80
1844 (Eischen) CNW, Award 28
1844 (Eischen) CNW, Award 58
Labor Member's Dissent
Award 29471
Page Seven
More importantly, in addition to the above-cited awards, we
invite PARTICULAR attention to awards involving this issue and this
carrier (and/or former properties of this Carrier) which sustained
the position of the Employes:
Third Division Awards
21996 (J. Sickles) L&N
24623 (Silagi) B&OGT
29161 (Fletcher) SBD
Special Board of Adiustment
1037 (Meyers) A&WP, Award 29
Fourth Division Awards
4211 (Scheinman) B&O
4295 (Muessig) SSY
4662 (Fletcher) CSX -
Typical thereof are Third Division Award 29161 (Fletcher), rendered
April 3, 1992, which held:
"The record before the Board supports the contentions of the Organization that Carrier was late
rendering its decision following Claimant's Investigation. Accordingly, the Claim will be sustained
consideration of the merits of the matter.
A W A R D
Claim sustained."
Nashville
Terminal
Labor Member's Dissent
Award 29471
Page Eight
and Award 29 of Special Board of Adjustment No. 1037 (Meyers),
rendered April 13, 1992, which held:
"Claimant was charged with several rule violations
including Operating Rule 501, and CSX Transportation
Rules 40, 920, and 922 in connection with charges
covering dishonesty, making false statements concerning
facts under investigation, and failure to immediately
report an on-the-job injury. The hearing into the
charges took place on October 31, 1991. Subsequent to
the investigation, the Carrier dismissed the Claimant
from service on November 18, 1991.
This Board has reviewed the file and we discover
that Rule 39 states in Section 2 that:
...A decision in writing will be rendered
within ten (10) calendar days from the close
of the hearing. A copy of the transcript of
the evidence taken at the hearing, and a copy
of the decision, will be furnished the employee affected and his representative.
In this case. the decision in writing was not issued
the Carrier until eighteen dues after the hearing. Since
the rules require that a written decision be issued
within ten days, the procedural rights of the Claimant
were seriously violated.
This Board hereby orders that the Claimant be
reinstated to service upon successful completion of a
return-to-duty physical and he be compensated for any
time lost from November 7, 1991 which is ten days
following the date that Claimant was approved to return
to duty with no restriction following the examination by
his personal physician.
Additionally, Mr. Dudley's personal record shall be
cleared of any reference to this incident.
Labor Member's Dissent
Award 29471
Page Nine
"AWARD
Claim sustained in part in accordance with the above
findings."
Juxtaposed to the THIRTY-THREE (33) awards cited above, which
decided disputes involving specific time limits for a carrier's
decision of discipline (seven of which involved this Carrier) which
found them to be MANDATORY, is the Majority's findings in this
instance. We are inexorably led to conclude that there is
something radically wrong with this picture, i.e., Award 29471.
However, support for the organization's position does not stop
at decisions involving this Carrier's disciplinary decisions
rendered outside the contractually mandated time limits. Support
is also found in decisions involving this Carrier's violations of
the contractually mandated time limits for providing notice of an
investigation, holding investigations and providing transcripts of
investigations. For example:
First Division Awards Third Division Awards
318 L&N 19275 SBD
5555 Atlanta & St. Andrews Bay 23539 SCL
20711 B&O 24925 C&O
26772 C&O
Labor Member's Dissent
Award 29471
Page Ten
The above-cited awards involving this Carrier (and/or its former
properties) sustained the mandatory time limits and the position of
the Employes.
Unfortunately, the Majority's erroneous findings did not stop
at illegally altering the language of the Agreement. The Majority
compounded its error by applying principles of "common law" while
citing Atlantic Coast Line v. BRAC, 210 F.2d 812 (4th Cir. 1954)
with favor. However, "common law" predates industrial labor.
relations by some five or six hundred years and has no valid
application to disputes of this nature. Notwithstanding, the
Majority applied them to this case in the absence of a specific
penalty provision or express remedy within the Agreement. In this
connection, we invite particular attention to the Labor Member's
Dissent to Award 22194, which held:
"In Union Pacific vs. Price, 360 U.S. 601 (1959),
the Court held that an employe who had received an
adverse decision in pursuing his claim before the Board
could not maintain a common-law action for damages on the
same issue.
In Pennsylvania Railroad vs. Day, 360 U.S. 548
(1959), the Court held that a retired employe could not
maintain action in federal court relative to time claims
filed during his active work period and that the Adjustment Board has exclusive primary jurisdiction
Labor Member's Dissent
Award 29471
Page Eleven
°In Brotherhood of Locomotive Engineers. et al. vs.
Louisville and Nashville, 373 U.S. 33 (1963), the Court
held that the union could not strike to enforce an
Adjustment Board award.
In Gunther vs. San Diego & Arizona Eastern, 382 U.S.
257 (1965), enforcing First Division Award 17646 (and
Interpretation) wherein the Carrier contended (1) that no
rule required the appointment of a medical board and (2)
that the decision of its chief surgeon was not subject to
review, the Supreme Court said, as to (1) above:
'The courts below were also of the opinion
that the Board went beyond its jurisdiction in
appointing a medical board of three physicians
to decide for it the question of fact relating
to petitioner's physical qualifications to act
as an engineer. We do not agree. The Adjustment Board, of course, is not limited to
common-law rules of evidence in obtaining
information ....'
and as to (2) above:
'The District Court, whose opinion was affirmed by the Court of Appeals, however,
refused to accept the Board's interpretation
of this contract. Paying strict attention
only to the bare words of the contract and
invoking old common-law rules for the interpretation of private employment contracts, the
District Court found nothing in the agreement
restricting the railroad's right to remove its
employees for physical disability upon the
good-faith findings of disability by its own
physicians. Certainly it cannot be said that
the Board's interpretation was wholly baseless
and completely without reason. We hold that
the District Court and the Court of Appeals as
well went beyond their province in rejecting
the Adjustment Board's interpretation of this
railroad collective bargaining agreement. As
hereafter pointed out Congress, in the Railway
Labor Act, invested the Adjustment Board with
the broad power to arbitrate grievances and
Labor Member's Dissent
Award 29471
Page Twelve
"plainly intended that interpretation of these
controversial provisions should be submitted
for the decision of railroad men, both workers
and management, acting on the Adjustment Board
with their long experience and accepted expertise in this field.'
Andrews vs. Louisville and Nashville, 406 U.S. 420
(1972), held that the Adjustment Board is the exclusive
forum for redress, overruling Moore vs. Illinois central,
312 U.S. 630 (1941) which held that a railroad employe
alleging wrongful discharge had an option to treat the
discharge as final and file a common-law action for
damages, or pursue the dispute before the National
Railroad Adjustment Board.
The Court, in construing the Railway Labor Act
provisions establishing the Board, relied in part upon
testimony before Congressional committees which revealed
the powers to be granted the National Board. It is clear
that the Board was to resolve disputes involving interpretation of the collective bargaining agre
resolution of disputes included a remedy. One need not
cite authority to know that issuance of declarations of
rule violations would be an extreme exercise in futility
without Providing an appropriate remedy.
In both Price and Gunther, involving awards of this
Board, the Court expressly stated that principles of
common law, with reference to employment contracts, were
not appropriate guidelines for interpreting collective
bargaining agreements. In ORT vs. REA, supra, the lower
courts applied common-law principles and held that the
claimants were estopped by their individual agreements.
Not so, the Supreme Court said, in upholding the award as
rendered. See, also, J. I. Case Company vs. N. L. R. B.,
321 U.S. 332, decided on the same day.
+ + +
In Brotherhood of Railroad Signalmen vs. Southern
Railway, 380 F.2d 59 (1967) the United States Court of
Appeals, in a proceeding to enforce Third Division Awards
11733 and 12300, said:
Labor Member's Dissent
Award 29471
Page Thirteen
"'Courts have uniformly held that Gunther
precludes judicial re-examination of the
merits of a Board award. Thus, beyond question, it is not within our province, or that
of the District Court, to reappraise the
record and determine independently whether
Southern violated its obligations under the
collective bargaining agreement when it denied
Brotherhood members the opportunity to perform
the work in question. Southern insists,
however, that with respect to the monetary
portions of the awards, the District Court
acted not in conflict with Gunther in limiting
Brotherhood to nominal damages on its findings
that the records in both cases contain "no
evidence of any loss of time, work or pay" by
any of the employees who were designated to
receive compensation for the lost work. In
accepting this contention of Southern, the
District Court relied on the common law rule
that damages recoverable for breach of an
employment contract are limited to compensation for lost earnings. The court reasoned
that since Gunther permits judicial computation of the size of the monetary awards, it
could exercise a discretion to allow Brotherhood nominal damages only where its members
lost no time.
'This approach, however, completely ignores
the loss of opportunities for earnings resulting from the contracting out of work allocated
by agreement to Brotherhood members
--
a
deprivation amounting to a tangible loss of
work and pay for which the Board is not precluded from granting compensation. Nothing in
the record establishes the unavailability of
signalmen to perform the work contracted out
by the railroad. The vast number of factual
possibilities which arise in the field of
labor relations, and which must be considered
by the Board in cases of this kind, clearly
reflects the wisdom of the Gunther rule.'
Labor Member's Dissent
Award 29471
Page Fourteen
"The principle enunciated in Signalmen has been consistently followed by this Board. Some
awards are:
Award 15689 (Dorsey):
Claimants were assigned to do the signal work in
the installation of automatic electrically-operated
flashing-light highway crossing protective devices.
Carrier contracted out the work of breaking concrete, digging, and lifting required on the project.
were cited and it was held:
'...
However, in those cases the Awards are in
conflict as to whether Claimants were entitled
to compensation for breach of the Agreement
during a period they were on duty and under
pay
....
'In Award No. 10963 (1962)....(1) this Board
was without jurisdiction to impose a penalty;
(2) the common law of damages for breach of
contract applied; (3) damages were limited to
actual proven loss of earnings. In Award No.
13236 (1965), involving the parties herein, we
reached the same conclusions; and citing
Brotherhood of Railroad Trainmen v. Denver and
Rio Grande Western Railroad Company, 338 F.2d
407 (C.A. 10, 1964), in which certiorari was
later denied, 85 S. Ct. 1330, we awarded
nominal damages.
[Gunther (1965) cited.]
...on June 20, 1966 [Railway Labor Act amendment] was enacted. It provided for severe
restraints on the scope of judicial review of
awards of the Railroad Adjustment Board, al:
of which is spelled out in Brotherhood of
Railroad Trainmen, et al v. Denver and Rio
Grande, etc., 370 F.2d 866 (C.A. 10, 1966),
cert. den. 87 S. Ct. 1315. In this second
Labor Member's Dissent
Award 29471
Page Fifteen
"'Denver and Rio Grande case,
involving the
same parties and issue as in the 1964 case,
supra, the court held "the Board's determination of the amount of the award is final
absent a jurisdictional defect. The measure
of the damages, like the application of affirmative defenses, offers no jurisdictional
question."
'In the period between the Gunther case and
the second Denver and Rio Grande case, the
Supreme Court on December 5, 1966, handed down
its
opinion in
Transportation-Communication
Employees Union v. Union Pacific Railroad
Company, 385 U.S. 157, wherein it stated:
"... A collective bargaining agreement is
not an ordinary contract for the purchase
of goods and services, nor is it governed
by
the same old common law concepts which
control such private contracts [cases
cited]. It is a generalized code to
govern a myriad of cases which the
draftsman cannot wholly anticipate ....
The collective agreement covers the whole
employment relationship. It calls into
being a new common law - the common law
of a particular industry or a particular
plant." (Emphasis ours.)
'Shortly thereafter, the Fourth Circuit ....
decided Brotherhood of Railroad Signalmen of
America v. Southern Railway Company. In that
case the parties herein were parties therein.
The same issues were raised relative to two of
our Awards as in the
instant case
both as to
the merits and damages - the record contained
no evidence of any loss of time, work or pay
by any of the employes who were designated in
the Awards to receive
compensation for
the
lost work. The court reversed the holding of
the District Court that since Gunther permitted judicial computation of the size of monetary awards
Labor Member's Dissent
Award 29471
Page Sixteen
,,allow claimants only nominal damages where
they had lost no time. The court held ......
'In the light of the amendments of the Act and
the judicial development of the law, cited
above, we hold that when the Railroad Adjustment Board finds a violation of an agreement,
it has jurisdiction to award compensation to
Claimants during a period they were on duty
and under pay.' (Interpolations ours.)
Award 16009 (Ives):
'The most recent judicial pronouncement on the
issue of damages for contract violations where
no actual losses were alleged or shown and the
controlling agreement contains no penalty
provisions is found in Brotherhood of Railroad
Signalmen of America v. Southern Railway
Company... (C.A. 4, decided May 1, 1967).
Therein. the court disavowed the common law
rule that damages recoverable for breach of an
employment contract are limited to compensation for lost earnings and stated that this
Board is not Precluded from granting compensation for the loss of opportunities of earnings
resulting from the contracting out of work
under circumstances similar to those found in
this dispute. We find the Fourth Circuit
decision applicable in this case and will
sustain the claim with certain modifications." (Emphasis in original)
Clear from a review of the foregoing is that no less an authority
than the United States Supreme Court, in concert with a substantial
number of arbitration awards, have found "common law" no impediment
to sustaining claims for agreement violations. Suffice it to say
that railroad arbitration is, or should be, a long way from the
Labor Member's Dissent
Award 29471
Page Seventeen
days of kings, surfs and fiefdoms and common law is simply
irrelevant. For all the foregoing reasons, I dissent.
Respectfully submitted,
~DbD. Hartholomay
Labor Member