Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD
THIRD DIVISION
Award No. 37843
Docket No. MW-37223
06-3-02-3-193
The Third Division consisted of the regular members and in addition Referee
Ann S. Kenis when award was rendered.
s
(Brotherhood of Maintenance of Way Employes
PARTIES TO DISPUTE:
(BNSF Railway Company (former Burlington
( Northern Railroad Company)
STATEMENT OF CLAIM:
"Claim of the System Committee of the Brotherhood that:
(1) The Carrier violated the Agreement when it failed and refused
to pay Claimant D. L. Plagmann his five (5) percent production
incentive bonus in accordance with Section 5A of the August
12, 1999 Agreement. (System File GPB-209-H/11-00-0166
BNR).
(2) The Carrier violated the Agreement when it failed and refused
to pay Claimant A. A. Sailer his five (5) percent production
incentive bonus in accordance with Section 5A of the August
12, 1999 Agreement. (System File GPB-210-H/11-00-0167).
(3) As a consequence of the violation referred to in Part (1) above,
Carrier shall now `...make immediate payment of 5% of
Claimant's earnings, as required by the Agreement, for the
time of September 12, 1999 through December 31, 1999. Since
the Carrier has improperly withheld this payment from
claimant, we further request that claimant receive interest on
the amount of money he is owed, at 8% per annum,
compounded monthly beginning thirty calendar days after
December 31,1999.'
Form I Award No. 37843
Pa2_e 2 Docket No. MW-37223
06-3-02-3-193
(4) As a consequence of the violation referred to in Part (1) above,
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Claimant's earnings, as required by the Agreement, for the
time of September 12, 1999 through December 31, 1999. Since
the Carrier has improperly withheld this payment from
claimant, we further request that claimant receive interest on
the amount of money he is owed, at 8% per annum,
compounded monthly beginning thirty calendar days after
December 31, 1999.11'
FINDINGS:
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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.
Parties to said dispute were given due notice of hearing thereon.
The two claims in this case filed by Vice General Chairman A. R. Hohbein on
February 11, 2000 have been consolidated because they present identical issues.
Claimant Plagmann and Claimant Sailer worked as part of the mobile District 17
wwelding
until the abolished
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crew until the crew was aounsneu on October a, i9yy.
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Claimants
displaced to a consolidated district mobile gang on October 11, 1999, the next work
day. There was no break in service. The Claimants remained assigned to that gang
through the end of 1999 and both were displaced in January 2000.
The Organization contends that the Claimants should have received a 5%
production incentive for the period of September 12 through December 31, 1999 in
accordance with Section 5A of the August 12. 1999 Agreement.
which nrnvidPC·
"Each employee assigned to any district mobile gang who does not
leave the gang voluntarily for a period of at least six (6) months shall
Form 1 Award No. 37843
Page 3 Docket No. MW-37223
06-3-02-3-193
be entitled to a lump sum payment annually equal to S% off his/her
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compensation shall not exceed $1,000 and shall be paid within 30
days of the completion of the employee's service on the gang; for
mobile gangs not required to be disbanded each year, payment will
be made within 30 days of the completion of each calendar year. If
the company disbands the gang in less than six months, the company
will be responsible for payment of the production incentive earned
as of that date."
The Organization also refers to the September 10, 1999 Letter of Agreement,
which states:
"The Production Incentive Bonus outlined in Section SA will be
effective September 12, 1999 and apply to all employees working on
any district mobile position."
In both claims, the Organization contended that the Carrier failed to make
payment within 30 days as required and therefore a sustaining award with 8%
interest was warranted.
The Carrier initially denied the claim on the basis that the Claimants were
not assigned to a mobile gang. However, documentation supplied by the
Ort?anization established that the Claimants were in fact assigned to a mobile
welding gang within the relevant time period.
During the course of further on-property handling, the Carrier notified the
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However, the correspondence produced by the Carrier in support of its position
raises more questions than answers. It must be remembered that the instant claim
for Claimant Sailer was filed on February 11, 2000 by Vice General Chairman
Hohbein, yet a March 24, 2000 letter from the Carrier refers to a claim filed on
March 2, 2000 by Vice General Chairman Weyrauch on Claimant Sailer's behalf.
Although the Carrier's letter states that compensation for a production incentive
bonus was paid, it appears to reference an entirely different claim.
By the same token, the Carrier's May 1, 2000 letter regarding Claimant
Plagmann does not correspond to the instant claim. Instead, it references payment
Form 1 Award No. 37843
Page 4 Docket No. A9W-37223
06-3-02-3-193
of a production incentive bonus for the period January 1 through January 24, 2000 -
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On the basis of this record, we must conclude that the Organization
established a violation of Section 5A of the August 12, 1999 Agreement. We further
and that the Carrier failed to refute the Organization's prima facie case with
probative evidence.
The Organization requests interest on the payment for the bonuses involved.
We are not prepared to state that interest may not be awarded in any case under
any circumstance. However, on this record, the Board is inclined to follow the clear
weight of authority and deny the Organization's request for an interest penalty. As
stated
in Third Divicinn Award 17S(16.
".
. . Even though a demand for interest is not illogical and is allowed
in some arbitration settings, the weight of authority is to the
couu ary in erection
33
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 . . . ."
AWARD
Claim sustained in accordance with the Findings.
ORDER
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 1st day of August 2006.