Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD
THIRD DIVISION
Award No. 35646
Docket No. MW-34764
01-3-98-3-429
The Third Division consisted
of
the regular members and in addition Referee
Margo R. Newman when award was rendered.
(Brotherhood
of
Maintenance
of
Way Employes
PARTIES TO DISPUTE:
(National Railroad Passenger Corporation (Amtrak) -
( other than Northeast Corridor
STATEMENT OF CLAIM:
"Claim
of
the System Committee
of
the Brotherhood that:
(1) The Agreement was violated when the Carrier assigned an outside
contractor to repair the soffit (overhang) and guttering on Building
10 at the Beech Grove facility, Beech Grove, Indiana on September
19, 1996 and continuing (Carrier's File BMWE-304 NRP).
(2) The Agreement was further violated when the Carrier failed to give
the General Chairman proper advance written notice
of
its intent
to contract out the work cited in Part (1) above.
(3) As a consequence
of
the violations referred to in Parts (1) and/or (2)
above, ` . . . we request that Claimants K. Geis and D. Gates be
paid for eight (8) hours straight time at the B&B Mechanic rate
of
pay and K. Kress be paid at the B&B Foreman rate
of
pay, for all
the claim days listed and to continue until the contractor is removed
from the property."'
FINDINGS:
The Third Division
of
the Adjustment Board, upon the whole record and all the
evidence, finds that:
Form 1 Award No. 35646
"r
Page 2 Docket No. MW-34764
01-3-98-3-429
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.
Parties to said dispute were given due notice of hearing thereon.
This claim raises the issue of sufficiency
of
the notice given by the Carrier to the
General Chairman concerning the contracting out
of
soffit and gutter repairs to Building
10 at the Beach Grove facility in September 1996.
The record reflects that on May 20,1991, the Carrier sent the following notice to
then General Chairman Cassese:
"We have recently learned
of
Amtrak's intent to contract out certain work
in the project to modernize its Beech Grove, Indiana Maintenance
Facility ....
A five-phase program is planned to accomplish a variety of changes. The
implementation strategy is to do the projects first that will do the most to
improve the efficiency of the overhaul work. Highly critical facility
improvements and repairs such as roofs, cranes and waste systems are to
be done during the first three phases, however, the majority of the projects
are to be implemented in phases three, four and five. The attached Exhibit
`A', Planned Implementation Schedule, and Exhibit `B', Work To Be
Performed By Contractor, describes the planned work in more detail. The
total cost of this project is estimated $34,900,000.
This major construction project requires skill, manpower, equipment and
construction expertise not available to Amtrak for a project of this
magnitude. Further, the maintenance forces at the facility are and will be
fully engaged in their regular maintenance, project and support work.
Finally, no Amtrak employees will be furloughed as a result of the
contracting
of
work in this project . . . ."
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01-3-98-3-429
The planned implementation schedule set forth a tentative date for
commencement in July 1991, with work to continue through 1995. One of the projects
slotted into phases 1, 2 and 5 included roof replacements, with the work to be performed
by the contractor to include replacement of roofing joists and installation of roofs with
an insulation and drainage system.
A conference was held on this notice on June 27, 1991, with a follow-up letter
stating that Phases 2 and 3 were not yet funded, and that track forces at Beech Grove
would not increase. The Beech Grove modernization project commenced in 1991 and
continued when funding became available for the different phases.
On September 27, 1996, the Carrier sent then General Chairman Geller the
following notice:
"We have recently learned of Amtrak's intent to contract certain reroofing installations on four (4) buildings at our Beech Grove Mechanical
Facility.
In general, the work involves manufacturer certification for installation of
the new roofing product on three (3) buildings. The fourth building
requires extensive repairs to the substrate. Contractor will install vertical
steel siding on sections of two (2) buildings. Lastly, one (1) building
requires extensive soffit and gutter work.
Work To be Performed by Contractor
* All roof installation and repairs.
* Installation of vertical siding where needed.
* Repairs to soffits and gutters where required.
Work To Be Performed by Amtrak
* Removal or relocation of roof mounted equipment.
* Repair of roof drains below roofs to ground.
* Inspection and protection when required."
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The notice went on to estimate that the project would cost approximately $1.6
million and take five months. It also states that the limited time frame required to finish
the project precludes hiring new employees for it.
The work involving the repair of soffits and gutters to Building 10 commenced on
September 19, 1996, over one week prior to serving the second notice, and the contract
was entered into by purchase order dated June 11, 1996. In its claim filed on November
6,1996, the Organization protests the subcontracting on the basis that the work is scope
covered, has been performed by employees at this facility in the past, was not emergency
in nature, and that the Carrier violated Rule 24 by failing to serve a timely notice and
permit a conference prior to the work being contracted. On the property the
Organization argued that the May 1991 notice did not cover this work, as it did not
indicate soffit and gutter repair, such work was not the subject of the conference, and
the contracting occurred after the time period covered by the prior notice. It offered
proof by way of project memos and employee statements that they had performed roof
drain, sewer and gutter work in the past. The Organization avers that the Carrier's
notice violation shows its bad faith and alone merits a monetary remedy regardless of law
the Claimant's fully employed status, citing Third Division Awards 29121, 26770, 28611,
28612, 29513, 29912, 29979, 30182 and 30944.
The Carrier initially raised a timeliness argument concerning the processing of
this claim to the Board, but such argument was shown to be without merit by proof of
receipt of the claim in a timely fashion. The Carrier argues that the soffit and gutter
replacement were part of the overall Beech Grove modernization project which was
covered by the May 1991 notice and June 1991 conference. It notes that it inadvertently
prepared and mailed a duplicated part of the prior notice in September 1996, arguing
that such action does not remove the coverage of this work from the May 1991 notice.
The Carrier asserts that roofing replacement work on these buildings was part of phase
five of the original project which was delayed due to funding issues and which could not
be accomplished with the Carrier forces. The Carrier avers that the Organization is not
permitted to piecemeal its protest of a large project, and that this claim only involves a
minuscule part of the roofing work on only one of the four buildings involved. The
Carrier contends that, in any event, there can be no monetary relief ordered for a notice
violation when the Claimants were fully employed during the claim dates as there was
no proven lost work opportunity, citing Third Division Award 22884.
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01-3-98-3-429
A careful review of the record convinces the Board that the Organization has met
its burden of proving a notice violation herein. While the Carrier contended that the
May 1991 notice covered this gutter and soffit work begun in September 1996, a review
of the language of the September 1996 notice nowhere revealed any mention of this work
being part of the Beech Grove modernization project dealt within the prior notice. Nor
does it refer to the prior notice or indicate that this was a duplicate notice. In fact, the
record reveals that the contract for the roofing work in issue was entered into in June
1996, not as part of the original 1991 project. Further, the September 1996 notice
language may well have led the Organization to believe that it was a different project,
for it specifies its intended duration (five months) and estimated cost ($1.6 million) and
makes no reference to phase five of the original modernization project. All of these facts,
coupled with the sending of a different notice, support the Organization's contention that
it was the September 27, 1996 notice that the Carrier intended to cover the particular
work in issue. There is no dispute that such notice was sent after the contract was
entered into and the work had commenced. In such situation, the Carrier has clearly
violated the language and intent of Rule 24.
What remains to be considered is the appropriate remedy for such violation.
Neither the Organization's nor the Carrier's cases dealing with monetary relief for
proven bad faith or a notice violation originate on this property. The Board is conscious
of the fact that not only is there a divergence of views concerning the appropriateness
of a monetary remedy for a fully employed claimant, but that a body of precedent may
exist on one property supporting one result while a different result may be appropriate
elsewhere. That being said, we are aware of one on-property Award, Third Division
Award 27614, which contains a vigorous dissent by the Carrier. In that case, the
violation of Rule 24 found by the Board was a result of the Carrier's failure to prove its
affirmative defense of an emergency situation requiring the contracting. There was
advance notice and conferencing concerning the overall nature of the issue of
contracting the disputed work prior to the actual contract protested. Thus, the
monetary remedy ordered to fully employed Claimants was not for a notice violation, but
for a contracting violation itself, and based upon the rationale that such nature of a
violation merits payment.
We are unaware of any precedent on the property for awarding monetary
compensation to fully employed claimants for a notice violation. See Third Division
Award 35645. Under the factual circumstances of this case, the Board is unable to
support a finding that the Claimants suffered a lost work opportunity or that the nature
Form 1 Award No. 35646
Page 6 Docket No. MW-34764
01-3-98-3-429
of the violation requires monetary relief. This is especially true where the parties
disputed throughout the handling of the claim on the property whether the 1991 notice
covered the work in issue, and whether the conference which occurred encompassed this
part of the overall project. Accordingly, we conclude that the Carrier violated Rule 24
by failing to give the General Chairman advance written notice of the contracting in
issue, but that no monetary relief is appropriate.
AWARD
Claim sustained in accordance with the Findings.
ORDER
rI
This Board, after consideration of the dispute identified above, hereby orders that
an award favorable to the Claimant(s) be made. The Carrier is ordered to make the
Award effective on or before 30 days following the postmark date the Award is
transmitted to the parties.
NATIONAL RAILROAD ADJUSTMENT BOARD
By Order of Third Division
Dated at Chicago, Illinois, this 28th day of August, 2001.
LABOR MEMBER'S CONCURRENCE AND
DISSENT
TO
AWARD 35645. DOCKET MW-34523
AND
AWARD 35646. DOCKET MW-34764
(Referee Newman)
Inasmuch as the awards were sustained in part, a concurrence is required only to the extent
that the Carrier violated the Agreement when it failed to issue notice in accordance with Article IV
of the May 17, 1968 National Agreement.
The DISSENT is directed towards the Majority's erroneous finding that there was no basis
to award a remedy for the Carrier's violation due to lack of on-property precedent concerning this
issue. The able neutral obviously struggled with this finding and a fine line was walked to arrive
at this decision. The justification found by the Majority here is based on the dissection of Award
27614. In that case, the Board found that the monetary remedy was allowed for the contracting
issue itself and not the notice violation. It is the Organization's position that such is a distinction
without a difference. This Board has held that Article IV is a nationally negotiated rule and, as
such, it should be treated with the same respect as any other rule of the Agreement. To do so
otherwise effectively reduces the significance of the rule to second class status. This was
recognized by the Board in Award 19899, cited and attached as an exhibit within our submission
to the Board. In said award, the Board held:
"We have difficulty in hypothicating (sic) many instances more imperative
to loss of opportunities than a proposed contracting out of bargaining unit work -
which may well result in a severe deprivation amounting to a substantial tangible
Labor Member's Concurrence and Dissent
Awards 35645 and 35646
Page Two
"loss of work and pay. Article IV is mandatory in concept. We wonder then if,
as noted by the Fourth Circuit it may become a `worthless scrap of paper' if it may
be unilaterally ignored. Accordingly, we favor the rationale of the Fourth Circuit
as_properlv applied to violations of Article IV. For these stated reasons, the Board
holds that a claim for damages may be sustained for a violation of Article IV of the
1968 National Arent even though employees in question were fully employed
at all relevant times. This result does not compel Carrier to agree to anything or
to do anything other than what it previously agreed to i.e. give notice and bargain
in good faith. While it is urged by Carrier that damages may be speculative, it is
Carrier itself, by its failure to comply with its agreement, who places the matter in
that posture - not the employees."
The Organization must take some responsibility for not stressing the utmost importance of
Article IV and the ramifications of the Carrier's failure to comply therewith. We too do not wish
to have the significance of Article IV reduced to a "worthless scrap of paper". Insofar as the
failure of the Majority to award a monetary remedy in these cases is concerned, I dissent.
espectfully ubmitted,
Roy . Robinson
Labor Member