Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD
THIRD DIVISION
Award No. 36069
Docket No. MW-34869
02-3-98-3-586

The Third Division consisted of the regular members and in addition Referee Dana Edward Eischen when award was rendered.


(Brotherhood of Maintenance of Way Employes PARTIES TO DISPUTE:


STATEMENT OF CLAIM:





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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.




During late Spring and early Summer 1997, the Carrier undertook the welding of approximately 1100 joints in the rail created by Production Gang installation of new ties and rail on the Blue Ridge Subdivision of the Appalachian Service Lane, on the former Clinchfield Railroad (CRR). Because installation of new ties and rail requires such a large number of welds, additional local welding positions were advertised and filled and all Welders with seniority on the CRR, including the Claimants, were assigned to this work. Following timely notice to and discussions with the General Chairman, the Carrier elected, over the objections of the General Chairman, to contract for and utilize additional Welders from an outside contractor to work along with the BMWErepresented Claimants in order to expeditiously complete this project.


Six days after the May 27 conference concerning the Carrier's notice, i.e., on June 2 and continuing through July 18,1997, outside forces from Orgotherm Welds, Inc. were assigned to perform the welding work of removing joint bars, leveling rail and setting molds for weld compound for rail ends to be welded together from Mile Post 138.0, Erwin, Tennessee, to Mile Post 173.0, Kona, North Carolina. It is not disputed that three employees of the outside contractor, working alongside Claimants R E. White, W. N. Williams and B. R Peterson, expended 272 hours each performing said rail welding work. Concurrently, three other employees of the outside contractor, working alongside Claimants R L. Stephens, M. L. Thomas and J. L. Fields, expended 272 hours each performing ordinary rail welding work from Mile Post 234, Thermal, North Carolina, to Mile Post 207, North Cove, North Carolina.

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on-property handling, i.e., one claim for Claimants R E. White, W. N. Williams and B. R. Peterson for work of the contractor from Mile Post 138.0, Erwin, Tennessee, to Mile Post 173.0, Kona, North Carolina, and another claim for Claimants R L. Stephens, M. L. Thomas and J. L. Fields for work of the contractor from Mile Post 234, Thermal, North Carolina, to Mile Post 207, North Cove, North Carolina. Inasmuch as the pivotal issues central to both claims are identical, they have been appropriately combined upon presentation to the Board. See First Division Award 25212.



faith efforts to minimize subcontracting of scope-covered work, as required by the December 11,1981 Hopkins-Berge Letter of Understanding and an alleged violation of Rule 48-CONTRACTING OUT, which reads as follows:






and conference, but allege that the Carrier failed to adequately justify its decision to
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contract for additional Welders and was "disingenuous" when it asserted unavailability of men and inadequacy of equipment necessary to timely complete the welding project in dispute. For its part, the Carrier declined the claim on grounds that: (1) "the Clinchfield welding roster was exhausted during the period of your claim" (2) °°(c)onsequently, sufficient qualified employees or equipment were not available to do the work" and (3) "claimants did not suffer a loss of work or wages during the period of the claim."


Our review of the record evidence persuades us that denial of these claims is supported by the following authoritative precedent:




    "Carrier did not claim that it lacked adequate laid up equipment to perform the work. However, Organization did not deny on the property that Carrier did not have forces laid qff in sufficient number and skill to do the work. Organization argues that Rule 2(f) is intended to operate as an exception to the reservation of work only if there is proved lack of both equipment and men.


      We do not agree; we said in Award 15011 (Wolf) in regard to the same question between the same parties as here:


          `The Rule requires that when there are not both men and equipment available the work may be contracted out. The sense is that if Carrier has both the men and equipment it ought to use them to do the work. If either is missing it does not have both, and may then contract the work.'"


                  Third Division Award 29221


    "Regarding the merits of the Carrier's decision to contract the work in question the Board finds its decision considered and within the permissible parameters for contracting encompassed in Rule 2. In this connection, there are several significant factors which, in combination with each other, justify the contracting under the unique circumstances of this case. They include (1) the fact no employees were on furlough in the seniority district,

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      (2) the fact all active employees and equipment were committed elsewhere, and (3) a certain degree of urgency to the project. The Organization did argue that the Carrier could have reorganized, reallocated, and rescheduled the work to make the Carrier forces available. The Carrier responded with validity that the project was driven by shipper concerns, and a delay would have resulted in a loss of business. We also note that the sheer magnitude of the project (3-4 months) speaks to the practicalities of delaying other projects in order to utilize Carrier forces."


                  Third Division Award 29204


      "In the final analysis, Carrier concluded that since this was a large project, there was a certain urgency in getting it completed, and current forces were elsewhere employed, it was necessary to utilize outside forces. Under all of the circumstances present here, this Board cannot dispute that decision."


                        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 18th day of June, 2002.