Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD
THIRD DIVISION
Award No. 32506
Docket No. MW-31129
98-3-92-3-906
The Third Division consisted of the regular members and in addition Referee
Dana E. Eischen when award was rendered.
(Brotherhood of Maintenance of Way Employes
PARTIES TO DISPUTE:
(National Railroad Passenger Corporation (AMTRAK)
STATEMENT OF CLAIM:
"Claim of the System Committee of the Brotherhood that:
(1) The Agreement was violated when the Carrier failed and refused to
timely and properly effectuate the monetary settlement agreed to by
the parties and verified within a letter dated December 19, 1991
(System File NEC-BMWE-SD-2991 AMT).
(2) As a consequence of the violation referred to in Part (1) above, the
Carrier shall compensate Mr. G. Butz `. . . 6% interest on the
money due Mr. Butz, per month, compounded on the monthly
anniversary date in which the Claimant would have received his
paycheck for the initial incident. That being, October 4, 1990 . . . ."'
FINDINGS:
The Third Division of the Adjustment Board, upon the whole record and all the
evidence, finds that:
The carrier or carriers and the employee or employees involved in this dispute
are respectively carrier and employee 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.
Form 1 Award No. 32506
Page 2 Docket No. MW-31129
98-3-92-3-906
Parties to said dispute were given due notice of hearing thereon.
Claimant established and holds seniority on the Philadelphia Division, with
regular hours Monday through Friday, rest days Saturday and Sunday.
On Wednesday, September 19, 1990, Claimant was medically withheld from
service pending the results of a drug/alcohol screen. On Monday, September 24, 1990,
Carrier was notified that the results were negative. Therefore, on Tuesday, September
25, 1990, Claimant returned to work.
Claimant was compensated for the time he had lost on September 20, 21 and 24,
1990 due to the September 19 drug/alcohol screen, and received said payment on Friday,
October 5, 1990. As such, the foregoing dates are not in dispute.
A dispute did arise, however, with regard to whether Claimant was also entitled
to payment for a 12.5 hour overtime assignment on his rest day, September 23, 1990.
On October 25, 1990, the Organization submitted a claim asserting that Claimant could
have worked "at least one overtime assignment" that was given to fellow emplo' ee
Kuhns. According to the District Chairman, Kuhns worked 12.5 hours operating a
backhoe putting in ties. Carrier initially denied the claim, but subsequently modified
its decision and agreed to compensate Claimant. On December 19, 1990, Carrier sent
a letter to the District Chairman which stated that it intended to compensate Claimant
for the overtime.
However, Carrier neglected to pay said overtime, and on May 1, 1991, the
Organization sent the Division Engineer the following communication:
"This is in reference to a claim which was presented in behalf of Mr.
G. Butz and subsequently answered by yourself under letter dated
December 19, 1991.
In your letter of December 19, 1991 you agreed to pay Mr. Butz for
the claim and all time lost.
I have recently been informed by the employee that he has not yet
received the compensation.
Form 1 Award No. 32506
Page 3 Docket No. MW-31129
98-3-92-3-906
Kindly investigate and advise why the payment has been held up so
long and when the same will be made."
In subsequent correspondence dated June 26, 1991 the Organization further
asserted that:
"Due to Carrier's failure to handle payment, after your letter of
December 19th, the Union must consider this a violation of that portion of
Rule 64 that reads, in part, that:
`.
. . Should any such claim or grievance be disallowed,
AMTRAK shall, within sixty (60) days from the date same is
filed, notify whoever filed the claim or grievance (the
employee or his representative), in writing, of the reasons for
such disallowance.'
This violation alone makes the original claim again payable as presented,
and it has been progressed to the next level for handling."
In its reply to the Organization, Carrier stated that:
"Investigation has been made into your claim presented in behalf of
G. Butz, received in this office via certified mail and placed under our file
number 001613. The following has been determined.
Payment of the original claim for 12 hours to Mr. Butz was initiated
and forwarded to Payroll about August 13, 1991. Payment for the
additional half hour claimed plus the difference in lost earnings between
straight time and overtime rates has been initiated by Labor Relations on
August 10, 1991. Straight time claimed for the 20th and 21st of September
was already paid to Mr. G. Butz as shown on the attached history of paid
labor. Together these payments constitute full compliance with my letter
of December 19, 1990. Mr. Butz should receive full and final payment by
September 30, 1991.
Your claim for 6°/o interest on the original claim, citing rule 64-E is
defective. Rule 64-E has no provision regarding payment of interest on
claims that are allowed.
Form 1 Award No. 32506
Page 4 Docket No. MW-31129
98-3-92-3-906
In view of the above, the remainder of your claim is denied."
However, on June 26, 1991 the District Chairman advised Carrier of the
following:
"This submission is in addition to the above violations, and your
violation of Rule 64, section 1, that portion that reads, in part, that:
`. . . (i)
When claims are allowed, the employee and
his duly accredited representative, as defined in Rule 83,
shall be advised, in writing the amount involved and the
payroll on which payment will be made.'
This officer has not been properly notified of the payment date, or the
amount because the same was never done by Carrier.
Therefore, based on the date that this Officer became aware of the
Carrier's failure to compensate, which was April 30, 1991, which is within
60 days of this submission, claim is herein presented for interest to be paid
to the Claimant for the time that the Carrier has held and had the use of
his money.
Claim is presented, continuous, per Rule 64-E, for 6%, interest on
the money due to Mr. Butz, per month, compounded on the monthly
anniversary date in which the Claimant would have received his paycheck
for the initial incident. That being, October 4, 1990, the date Mr. Butz
would received his pay check for the time he would have worked had he
not been taken out of service.
This claim, for the allowance of interest, is intended to make the
employee whole for the loss of the use of the money that the Carrier has
wrongfully withheld and is still withholding, since the date of the original
incident which was September 19, 1990.
Kindly advise if you will pay this claim and if so which payroll
period compensation will be made."
Form 1 Award No. 32506
Page 5 Docket No. MW-31129
98-3-92-3-906
The issue presented in this case is whether Claimant is entitled to 6% interest
based on $81.81 due him as a result of a December 19, 1990 claim settlement which was
not completely effectuated until September 5, 1991. There is no Agreement Rule which
provides for the payment of interest on claims as the Organization has requested, nor
did the Organization cite any such Rule.
Further, the practice on this property, as sanctioned by the Board and other
Section 3 tribunals, has been to allow the pro rata rate of pay, as opposed to the punitive
rate of pay, for overtime assignments not actually worked. It is not unreasonable to
conclude that such practice may have contributed to the apparent confusion and delay
in implementing the Parties' agreement that Claimant be compensated for the involved
overtime assignment. Even though a demand for interest is not illogical and is allowed
in some arbitration settings, the weight of authority is to the contrary in Section 3
arbitration tribunals. ( See, for example, Third Division Awards 24710, 20014, 18633
and 18464). In the absence of an Agreement Rule or practice to the contrary, and in
the face of the authoritative precedents, there is no proper basis on which to sustain this
claim for the requested interest payment. Therefore, this claim must be denied.
AWARD
Claim denied.
ORDER
This Board, after consideration of the dispute identified above, hereby orders that
an award favorable to the Claimant(s) not be made.
NATIONAL RAILROAD ADJUSTMENT BOARD
By Order of Third Division
Dated at Chicago, Illinois, this 25th day of March 1998.