Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD
THIRD DIVISION
Award No. 37314
Docket No. MW-36134
04-3-00-3-308

The Third Division consisted of the regular members and in addition Referee Ann S. Kenis when award was rendered.

(Brotherhood of Maintenance of Way Employes
PARTIES TO DISPUTE:
(Union Pacific Railroad Company (former Chicago &
( North Western Transportation Company)

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.




The on-property handling of this dispute discloses that on December 29, 30, 31, 1998 and January 6 and 12, 1999, the Carrier used a contractor to remove an underground waste oil storage tank at Marshalltown, Iowa. The Organization claims that the work performed by the contractor is contractually reserved to BMWE forces and should have been performed by the Claimants, who were furloughed at the time.


In support of its claim, the Organization relies principally upon Rule I(b) of the Agreement, which states:



Form 1 Award No. 37314
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Company's employes, special equipment not owned by the
Company, or special material available only when applied or
installed through supplier, are required; or unless work is such that
the Company is not adequately equipped to handle the work; or
time requirements must be met which are beyond the capabilities of
Company forces to meet.
In the event the Company plans to contract out work because of one
of the criteria described herein, it shall notify the General Chairman
of the Brotherhood in writing as far in advance of the date of the
contracting transaction as is practicable and in any event not less
than fifteen (15) days prior thereto, except in `emergency time
requirements' cases. If the General Chairman, or his
representative, requests a meeting to discuss matters relating to the
said contracting transaction, the designated representative of the
Company shall promptly meet with him for that purpose. The
Company and the Brotherhood representatives shall make a good
faith attempt to reach an understanding concerning said
contracting, but if no understanding is reached, the Company may
nevertheless proceed with said contracting and the Brotherhood
may file and progress claims in connection therewith.
Nothing herein contained shall be construed as restricting the right
of the Company to have work customarily performed by employes
included within the scope of this Agreement performed by contract
in emergencies that affect movement of traffic when additional force
or equipment is required to clear up such emergency condition in
the shortest time possible . . . ."

There is a dispute on the record as to the nature and extent of the work performed. According to the Organization, the contractor forces excavated and lifted the tank from the hole, cut the top off the tank and backfilled the hole with sand. No hazardous waste was involved because it had previously been pumped out, a statement submitted by the Organization avers. The Organization maintains that the work of dismantling and removing the storage tank was much the same as the work performed by BMWE forces when the storage tank was first buried in the ground.
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The Carrier argues that work contracted out in this case was environmentally sensitive and required the removal of underground storage tanks that contained hazardous materials. In the Carrier's view, this was not work contractually reserved to the Organization, because it required special expertise, training, and certification not possessed by BMWE forces.


The dispute on these critical points provides strong evidence for the need to comply with the notice provisions under Rule 1(b). Irrespective of the Carrier's contention that it acted properly because its employees did not possess the skills and qualifications to adequately handle the work, nevertheless, before those kinds of issues can be addressed, Rule 1(b) imposes a threshold obligation upon the Carrier to give the Organization advance notice of its intent to contract out the work. Such advance notice is supposed to provide the opportunity for good faith discussion of precisely the kinds of issues which are now disputed by the parties on the merits.


In this case, the Carrier failed to comply with the notice and conference requirements of the above-cited Agreement provisions, the record shows. Clearly, the process fails when notice and conference requirements under Rule 1(b) are subverted and the work is contracted out without attempts to reconcile the differences that are so readily apparent on this record. The claim must be sustained on that basis.


With respect to the remedy, the Carrier asserted that one of the named Claimants was employed in another craft at the time of the occurrence. In addition, the parties disagree as to the number of hours worked by the contractor as well as whether the hours of one such employee should be counted. Accordingly, the matter is remanded to the parties for a joint check of the Carrier's records. In all other respects, the Claimants are to be made whole.





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This Board, after consideration of the dispute identifed 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.



                      By Order of Third Division


Dated at Chicago, Illinois, this 21st day of December 2004.