Form 1 NATIONAL RAILROAD ADJUSTMENT BOARD
THIRD DIVISION
Award No. 38947
Docket No. MW-38225
08-3-NRAB-00003-040144
(04-3-144)
The Third Division consisted of the regular members and in addition Referee
Edwin H. Benn when award was rendered.
(Brotherhood of Maintenance of Way Employes
(The Texas Mexican Railway Company
- OF CLAIM:
"Claim of the System Committee of the Brotherhood that:
(1) The Agreement was violated when the Carrier assigned outside
forces (Frontera Construction) to perform Maintenance of
Way and Structures Department work (operate weed mower)
to shred and mow grass in the yards and right of way at road
crossings between Laredo, Texas and Corpus Christi, Texas
beginning July 1, 2003 and continuing, instead of Machine
Operator T. Vasquez (System File EPTM-03-107/257).
(2) The Agreement was further violated when the Carrier failed to
furnish the General Chairman with a notice of its intent to
contract out the work in question and failed to exert a goodfaith effort to increase the use of Maintenance of Way forces
and reduce the incidence of employing outside forces pursuant
to Rule 29 and the December 11, 1981 Letter of Agreement.
(3) As a consequence of the violations referred to in Parts (1)
and/or (2) above, Claimant T. Vasquez shall now be
compensated for all straight time and overtime hours worked
by the outside contractor beginning July 1, 2003 and
continuing."
Form 1 Award No. 38947
Page 2 Docket No. MW-38225
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(04-3-144)
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.
Parties to said dispute were given due notice of hearing thereon.
In its January 28, 2004 letter on the property, the Carrier succinctly states
the material facts in this dispute:
".
. . Carrier utilized the services of a sub-contractor for weed
mowing and a notice for such work was not issued to your
Organization. This is not denied. Extensive weed mowing projects
on this property has for several years been performed by a third
party without complaint or claims from your Organization.
Frontera Construction Company has provided this service for over
two (2) years and prior to that time Carrier utilized the services of
Haner Mowing Service."
The case is governed by Rule 29 of the parties' Agreement:
"CONTRACTING OUT
When work coming under the Scope Rule of the Maintenance of
Way agreement is found to be of such nature that it cannot be
performed by the regular forces of the respective sub-departments,
the General Chairman will be notified in writing at least fifteen (15)
days in advance of any transaction for contracting out of such work.
The carrier and organization representatives shall make a good faith
attempt to reach an understanding on the contracting out of the
Form 1 Award No.
38947
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work to be performed. In event no satisfactory agreement or
understanding is reached, this rule will not affect the existing rights
of either party in connection with the contracting of work and does
not change, alter or modify any provisions of the Scope Rule or any
rules of the applicable agreement in the handling of such matters."
With respect to the Carrier's admitted failure to give the Organization notice
of the contracting out of the work in dispute, under Rule 29 the question is whether
the work falls under the Scope Rule? If it does, then there is a contractual
obligation by the Carrier to give the Organization notice of its intent to contract out
that work ("When work coming under the Scope Rule of the Maintenance of Way
agreement . . . the General Chairman will be notified in writing at least fifteen (15)
days in advance of any transaction for contracting out of such work.") (Emphasis
added.)
"[Wleed mowing" is ". . , work coming under the Scope Rule . . . ." As stated
in Rule 2, Section 2, Machine Operators such as the Claimant are classified in the
Machine Sub-Department and the Scope Rule (Rule 1) provides that "[t]he rules
contained herein shall govern the hours of service, working conditions and rates of
pay of all employees in any and all sub-departments of the Maintenance of Way and
Structures Department and such employes shall perform all work in the
Maintenance of Way and Structures Department . . . ." Further, statements from
employees show that weed mowing has been perfformed by Maintenance of Way
employees in the past. The work in dispute was therefore scope covered. Whether
the Carrier contracted out the work in the past or not, Rule 29 still obligated the
Carrier to give the Organization advance notice of the contracting out of that work.
While this is a Rule 29 case, Board precedent developed under other contracting out
Rules with similar language as found in Rule 29 is instructive. See Third Division
Award 32862:
". . . [Wle
are satisfied that the described work falls `within the
scope off the applicable schedule agreement.' The work involved was
machine operators' work on a track project - the kind of work the
employees have performed. We need not determine for notice
purposes whether the equipment utilized by the contractor was
specialized, necessary, whether alternative equipment could have
been rented, or whether the employees were actually capable of
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operating the specific equipment utilized by the contractor. The
threshold inquiry is does the work fall `within the scope of the
applicable schedule agreement?' We find that it does. As such,
Article IV mandated the Carrier to give the Organization notice."
See also Third Division Award 31285 ("`[Slhall notify' is mandatory"). So is
the language in Rule 29 ("the General Chairman will be notified").
By not giving at least 15 days advance notice to the Organization of its intent
to contract out the weed mowing work, the Carrier therefore violated the clear
language in Rule 29.
The question now is what remedy is appropriate for the Carrier's failure to
give notice as required by Rule 29? The contractual requirement for a carrier to
give an organization notice of its intent to contract out scope covered work was
explained in Third Division Award 32862, supra:
". . . [T]he
Carrier's failure to give the Organization notice of its
intent to contract the work frustrates the process of discussions
contemplated by Article IV. See Third Division Award 31280:
`The function of the notice is to allow the Organization the
opportunity to convince the Carrier to not contract out the
work. Therefore, that opportunity to convince the Carrier
to not contract out the work was prevented by the Carrier's
failure to give notice."'
If all the Board had in this case was the Carrier's failure to give notice, we
would sustain the claim and make the Claimant whole for lost work opportunities
solely on the basis of the Carrier's failure to give the Organization advance notice of
its intent to contract out the scope covered work as required by Rule 29. See e.g.,
Third Division Awards 32699, 32861 (where make whole remedies based on lost
work opportunities were fashioned solely on the basis of the carrier's failure to give
notice and irrespective of whether the disputed work had been exclusively
performed by the employees in the past or whether the employees were working at
the time of the contracting out).
Form 1 Award No. 38947
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But there is more.
In its March 31, 2004 letter, the Carrier stated that ". . . the use of subcontractors for weed mowing has and continues to be a practice on this property
and has not been an issue until this latest claim." The Carrier then cites the Board
to Third Division Award 37961 between the parties decided September 19, 2006,
where the Carrier contracted out state road crossing projects without notice to the
Organization. The Board found a violation of the notice requirements in Rule 29,
but imposed no remedy for the violation:
"Part 2 of the claim asserts lack of a proper notice. There is no issue
as to the notice provision of the Agreement. Any work belonging to
BMWE-represented employees requires the Carrier to provide
notice. The Carrier's argument is that it has performed state road
crossing work for years without complaint from the Organization.
The Carrier argues `Organization acquiescence' on contracting out
state road crossing work, stating that `notices have never been
served on work performed for state road crossings.' And further,
`While your Organization did not deny this fact, it still held that a
notice should have been served and Carrier responded by agreeing
that notices would be served for State work in the future . .... I The
Carrier's argument was not refuted. As such, while there are no
exceptions in the language of the Agreement relating to state road
crossing projects, damages are not applicable, and to that degree,
Part 2 of the claim [the failure to give notice allegation] has merit."
Thus, on this property, because the Organization "acquiesced" to contractors
performing scope covered work in the past, Third Division Award 37961 did not
impose monetary relief for the Carrier's failure to give notice off contracting out
work falling under the Scope Rule of the Agreement.
And that is precisely what happened here. As the Carrier established, for
years prior to this claim (and even though the Organization states that employees
have also performed the work) contractors have performed mowing work without
complaint from the Organization. The fact that contractors have performed that
work does not excuse the Carrier from giving notice to the Organization of its intent
to contract out the work as required by Rule 29. But given that the Organization
previously allowed that practice to occur without complaint and further given the
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holding in Third Division Award 37961 that in such circumstances, monetary relief
should not be imposed, it would be manifestly unfair for the Board to impose
monetary relief in this case for the Carrier's failure to give notice.
However, the Carrier's obligation to give notice of contracting out ". . , work
coming under the Scope Rule . . ." is nevertheless mandated by the clear language of
Rule 29. That mandate exists whether or not contractors have performed the work
in the past and arguments for the need of the Organization to demonstrate
exclusivity in contracting out disputes are irrelevant to the obligation of a carrier to
give notice if required by an agreement. See Third Division Award 32862, supra:
". . . [E]xclusivity
is not a necessary element to be demonstrated by
the Organization in contracting claims. See e.g., Third Division
Award 29792 (`As explained more fully in Award 29007, however, a
showing of less than `exclusive' past performance of the disputed
work by the employees is sufficient to establish coverage for
purposes of . . . notice and conference provisions'). See also, Third
Division Award 32338 and Awards cited therein (`. . . the
Organization need not prove exclusive performance of the work to
establish a violation of the notice requirement . . . .')."
By the filing and processing of this claim, the Organization has now put the
Carrier on notice that the Carrier must give notice under Rule 29 when it intends to
contract out ". . . work coming under the Scope Rule . . . ." Now having that
knowledge that the Organization is going to hold the Carrier to its notice obligations
under Rule 29, if the Carrier fails to give the required advance notice in the future,
full monetary relief may very well be awarded for lost work opportunities. Again,
see Third Division Award 32862, supra:
"Complete uniformity of decision did not exist as this Board
developed its approach to the hundreds of cases presented to this
Board arising from the parties' contracting disputes. Review of
those decisions shows some inconsistencies - by this Board and
sometimes even by individual referees sitting with the Board. But
one very clear concept arose through that overall decisional process
- the position taken by this Board discussed in Award 32338 that the
Carrier's failure to give notice to the Organization after the 1991
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admonitions by this Board that it had to do so would result in relief
beyond compensation only for those employees in furlough status.
We recognize that the result in these cases where no notice is given
may be anomalous. It may well be under Article IV that had the
Carrier given notice, (and because of lack of skills of the employees,
need ffor specialized equipment, etc.), the Carrier may have been
able to contract the work. However, in failure to give notice cases,
even though the Carrier may have ultimately been able to contract
the work, even employees who were working could be compensated
only because notice was not given. We are very conscious of that
result. But, our function is to enforce language negotiated by the
parties. In Article IV and as a result of negotiations, the parties set
forth a process of notification and conference in contracting
disputes. The Carrier's failure to follow that negotiated procedure
renders that negotiated language meaningless. This Board's
function is to protect that negotiated process. Our discretion for
fashioning remedies includes the ability to construct make whole
relief. The covered employees as a whole are harmed when the
Carrier takes action inconsistent with the obligations of the
Agreement (here, notice) to contract work within the scope of the
Agreement. Relief to employees beyond those on furlough makes
the covered employees whole and falls within the realm of our
remedial discretion.
We are also cognizant of the specific result in this case. The record
shows that Claimants worked at the site at the time the contractor's
forces were present. The Carrier argues that granting relief to
Claimants who were employed at the site is unfair. That argument
is not persuasive so as to change the result. The remedy in this case
seeks to restore lost work opportunities. It may well be that
Claimants could have performed the contracted work (or the work
they actually performed) on an overtime basis or could have resulted
in more covered employees being called in to work on the project.
Indeed, had the Carrier given notice, those questions could have
been the subject for discussion in conference between the parties.
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MW-38225
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On balance, having failed to give the required notice, the Carrier
cannot now argue that the result is unfair."
Because no affirmative monetary relief is ordered in this case as a result of
the Carrier's failure to give notice, we must now look to the merits to ascertain
whether the Organization's claim of improper contracting out yields affirmative
monetary relief. We find it does not.
In Third Division Award 37008 between the parties, the Board found in a
dispute over the Carrier's contracting out the installation of ties and related work,
that the Organization's claim failed "[b]ecause the Organization was unable . . . to
rebut the assertion that it [the disputed work] has been contracted in the past." On
the merits, that is this case. Here, the Carrier asserted that "[e]xtensive weed
mowing projects on this property has for several years been performed by a third
party without complaint or claims from your Organization . . . [and] Frontera
Construction Company has provided this service for over two (2) years and prior to
that time Carrier utilized the services of Haner Mowing Service." That assertion
was not refuted by the Organization. At best, this is a mixed practice case and the
Organization has not demonstrated why the Carrier's contracting out of the
mowing work which it has done for years now violates Rule 29 or the Scope Rule.
The Organization's assertion of bad faith on the Carrier's part that due to
reduction of its forces the Organization is entitled to relief on the merits is not
persuasive. The fact remains that over the years and in the face of the contracting
language in Rule 29, the Organization allowed the Carrier to contract out the
disputed work without objection. There is nothing in Rule 29 that allows the
Organization to now recapture that work which it allowed to leave.
In sum, under Rule 29, the mowing work in dispute was ". . . work coming
under the Scope Rule . . ."; the Carrier violated Rule 29 by not giving notice to the
Organization that it intended to contract out the mowing work; because the Carrier
has contracted out mowing work in the past without objection by the Organization,
no affirmative relief will be fashioned in this case for the Carrier's failure to give
notice; however, should the Carrier fail to give such advance notice as required by
Rule 29 in the future after the date of this Award for the contracting out of
". . . work coming under the Scope Rule . . .", the affected employees shall be
entitled to full remedial relief for lost work opportunities; and, on the merits, no
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relief can be granted because the Carrier has contracted out similar work in the
past without objection by the Organization.
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 29th day of February 2008.