"Claim of the System Committee of the Brotherhood that:

(1) The Carrier violated the Agreement when it abolished and converted Section Gang 5KD1 from a St. Louis seniority district basic force section gang to a Midwest service lane gang on November 13, 2000 [System File 152706300/12(01-0092) CSX].

(2) The Carrier violated the Agreement when it abolished and converted Section Gang 5K41 from a C&EI seniority district basic force section gang to a Midwest service lane gang on November 13, 2000 [System File 163706400/12(01-0093)].

(3) The claim referenced in Part (1) above, as presented by Vice Chairman F. N. Simpson on December 5, 2000 to K. L. Johnson, Jr., shall be allowed as presented because the claim was not disallowed in accordance with Rule 24(a).

(4) The claim referenced in Part (2) above, as presented by Vice Chairman F. N. Simpson on December 5, 2000 to K. L. Johnson, Jr., shall be allowed as presented because the claim was not disallowed in accordance with Rule 24(a).

Parties to said dispute were given due notice of hearing thereon.

On November 6, 2000, the two service lane work territory ("SLWT") gangs were advertised for bid becoming effective November 13, 2000. That action resulted in the abolishment of two basic force gangs, also effective November 13, 2000. These claims followed.

First, the Organization's procedural argument is without merit.

Second, with respect to the merits, Appendix U, Section 4.a. provides:

"Twelve (12) new `Service Lane Work Territories' (`SLWTs') are hereby established for 'floating; i.e. other than point headquartered' Track and Bridge and Facility positions falling into the category between System Production Gang work and basic point headquartered maintenance work; e.g., an AFE gang that would perform work over multiple seniority districts. Such gangs consisting of any number of employees may perform any work covered by the scope of the new Maintenance of Way Agreement and may be established effective on `split date'. It is recognized that as these gangs are established a corresponding number of positions in floating district or other similar type gangs may be abolished. It is also understood that the establishment of SLWT gangs will not diminish the carrier's right to retain or establish seniority district floating gangs where warranted. On the other hand the establishment of SLWT gangs will not be used as a device to eliminate basic maintenance forces (See Side Letter). A copy of a map and a listing of seniority districts contemplated in each SLWT are attached (Attachments `E' and `F'). Employees holding seniority on a seniority district that is split between more than one SLWT will only be obligated for protective benefit eligibility, including but not limited to SUB, to protect SLWT work on one SLWT, whichever is nearest in proximity to the employee's place of residence."

Side Letter No. 2 provides:

"This refers to our commitment not to use the establishment of SLWT gangs as a device to eliminate basic maintenance forces.

It was further agreed that with the establishment of SLWT gangs, not less than forty per cent (40%) of all BMWE-represented positions on the expanded CSXT System (not including System Production Gang positions or the former Clinchfield Railroad) will have fixed headquarters. The percentage of fixed headquartered positions will be determined on a system-wide basis, using a rolling monthly average comparison of both the total number of BMWErepresented positions (less SPG positions) and the number of fixed headquartered positions. The percentages will be reported to the General Chairman on a quarterly basis."

There is no evidence in this record to support the Organization's position that the establishment of the SLWT gangs in dispute and the corresponding abolishment of the basic force gangs were outside the Carrier's authority agreed to in Appendix U, Section 4.a. More specifically, there is no evidence to show that the Carrier's actions exceeded the parameters specified in Side Letter No. 2. Without more, this claim must be denied.

AWARD