Form 1
NATIONAL RAILROAD ADJUST
THIRD DIVISION
,NT BOARD
Award No. 40929
Docket No. MW-41078
11-3-NRAB-00003-090432
The Third Division consisted of the regular members and in addition Referee
William R. Miller when award was rendered.
PARTIES TO DISPUTE:
(Union Pacific Railroad Company
STATEMENT OF CLAIM:
(Brotherhood of Maintenance of Way Employes Division -
( HIT Rail Conference
"Claim of the System Committee of the Brotherhood that:
(1) The Agreement was violated when the Carrier assigned forces
(Harry Carlyle Excavating) to perform Maintenance of Way
and Structures Department work (ditching and right of way
cleaning) in the vicinity of Mile Post 250 on the Ayer
Subdivision on March 31 and April 1, 200$ (System File D0852U-204f 1502$22).
(2) The Agreement was further violated when the Carrier failed to
furnish the General Chairman with an advance notice of its
intent to contract out the aforesaid work and failed to make a
good-faith effort to reduce the incidence of contracting out
scope covered work and increase the use of its Maintenance of
Way forces as required by Rule 52 and the December 11, 1981
Letter of Understanding.
(3) As a consequence of the violations referred to in Parts (1)
and/or (2) above, Claimants S. Braddock, R. Brown and D.
Ehrhard shall now each be compensated for fifteen (l5) hours
at their respective straight time rates of pay and for three (3)
hours at their respective time and one-half rates of pay."
Form 1
Page 2
FINDINGS:
Award No. 40929
Docket No. MW-41078
11-3-NRAB-00003-090432
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
involved herein.
Adjustment Board has jurisdiction over the dispute
Parties to said dispute were given due notice of hearing thereon.
There is no dispute between the parties that in November 2007 there was a
mudslide that flowed onto the Carrier's property that came from adjacent property.
The Carrier Manager contacted the property owner who apologized and said he
would clean it up. This claim concerns outside forces (Harry Carlyle Excavating)
performing the work of ditching and cleaning the right-of-way at/near Mile Post 250
on the Ayer Subdivision because of the mud and debris from the adjacent property.
The contractor used three employees who operated a front end loader, excavator,
and skid loader on March 31 and April 1, 2008.
It is the position of the Organization that the work in dispute has customarily
and traditionally been assigned to and performed by BMWE-represented employees
under Rules 4 and 8 of the Agreement and is protected by the Scope Rule that is
specific in nature. It further argued that the Carrier violated Rule 52 - Contracting
and the good faith obligations set forth in the December 11, 1981 Letter of
Understanding. Lastly, it argued that no notice was served on the Organization
concerning the work and on that basis alone the claim should be sustained. It
concluded by requesting that the claim be sustained either procedurally and/or on
the merits as presented.
It is the Carrier's position that the Organization failed to meet its burden of
proof to show any contractual violation occurred. It argued that in the instant
dispute it did not pay for the work to be done, but instead the owner of the adjacent
property from where the mud and debris slid on the Carrier's property arranged
for its removal. In its letter of September 26, 2008, it stated in pertinent part:
Form I Award No. 40929
Page 3 Docket No. MW-41078
11-3-NRAB-00003-090432
". . . In numerous cases involving contractors clearing and removing
material from the Carrier's right-of-way, the determination of
whether the property was sold "as is where is" and ownership of the
material transferred determines if a violation occurred, see Third
Division Awards 37499 and 37119. Therefore, ownership of the
material does matter and is determinative to the issue at hand."
The Carrier further contended that the Scope Rule is general in nature and
does not grant specific work or activities including the work grieved. It asserted
that the December 11, 1981 Letter of Understanding commonly referred to as the
Berge/Hopkins Letter is solely dependent upon the applicability of the
Subcontracting Rule - it did not create a separate new contracting Rule, nor did it
supersede the past practice exception. According to it, the Letter of Understanding
merely re-affirmed the notice requirement and encouraged the parties to resolve at
the local level the parties' differences over contracting. It further suggested that the
Understanding contained a reciprocal obligation that the Organization committed
to, but never followed up on by working with carriers to "explore ways of achieving
more efficient and economic utilization of the work force." It argued because the
Organization failed to satisfy its reciprocal obligation that destroyed mutual
consideration and absent mutual consideration the status of the Understanding was
lost. Lastly, it argued that the Claimants were fully employed on the dates of the
claim and suffered no monetary loss. It closed by asking that the claim remain
denied.
For the same reasons expressed in Third Division Awards 40922 and 40923,
the Board has determined that the December 11, 1981 Letter of Understanding has
not lost its applicability and the Organization is not required to prove exclusive
reservation of scope covered work when the dispute involves the assignment of work
to outside contractors.
The thrust of the Carrier's argument was that the work associated with the
ditching was not under its control because the mudslide came off of a neighboring
field onto its toe path and the mud and debris was the property of its neighbor and
his responsibility to remove because he retained ownership, whereas the
Organization countered that argument by stating that it did not matter who owned
the material that invaded the right-of-way as that did not give the Carrier the right
Form 1 Award No. 40929
Page 4 Docket No. MW-41078
11-3-NRAB-00003-090432
to shed its obligation for maintaining its own right-of-way, which was reserved to
being done by BMWE-represented employees.
The parties offered various Awards for the Board's consideration that,
according to each, should resolve the dispute in their respective favor. A sampling
of the Awards offered by the Carrier for the Board's consideration included Third
Division Awards 39388, 40282 and 40817. Award 40817 stated, in pertinent part,
the following:
"It was effectively undisputed in the record that the fencing in
question was installed on property that was leased from the Carrier
by the local municipality. The local municipality hired the
contractor to install the fencing for its own purpose. Moreover, the
Carrier does not own or have responsibility to maintain the
fencing." (Emphasis added)
Award 39388 ruled as follows:
"The Carrier points out that the work in question consisted of
seating benches installed for the benefit of the Village of Cary,
Illinois, and the Commuter Rail Division of the Regional
Transportation Authority (Metra) . . . .
The Board reviewed the record. We do not find that, under the
circumstances, the Carrier had any control or authority . . . ."
(Emphasis added)
The logic and reasoning of Award 40282 was based upon the prior ruling of
Third Division Award 31013 that determined the following:
"The determinative issue is whether the disputed work of installing
the pipe was contracted out under Carrier's control. This Board has
consistently held that where work is not performed at Carrier's
instigation, nor under its control, is not performed at its expense or
exclusively for its benefit, the Organization cannot claim improper
contracting out in violation of the Scope Rule. Third Division
Awards 23422, 20644, 20280 . . . We find no evidence that Carrier
instigated or retained sufficient control over the disputed work
Form I
Page 5
Award No. 40929
Docket No. MW-4107$
11-3-NRAB-00003-090432
performed . . . or that it was performed at Carrier's expense _or
exclusively for its benefit. Third Division Award 26082 . . . ."
(Emphasis added)
Third Division Award 37901 offered by the Organization determined in
pertinent part:
"Thus, the work performed by the landowner clearly inured to the
benefit of the Carrier." (Emphasis added)
In the Carrier's Dissent to Award 37901 it stated in part:
"The Carrier is not a beneficiary in this case."
One of the recurring themes to the aforementioned Awards "is that if the
work was not exclusively done for the benefit of the Carrier the Organization
cannot prevail." However, in this case the exclusive beneficiary of the contractor's
work was the Carrier, as its right-of-way was cleared. With respect to the Carrier's
contention that the disputed work was tantamount to an "as is, where is" sale that
argument is not persuasive in this instance, nor is its argument that because it did
not pay any monies for the contractor's work it is relieved of any responsibility for
having allegedly violated the Agreement. The Carrier had it within its ability to
advise property owner Klinker that it was going to clear the mud and debris after
ich it could have billed him for the cost of using its own forces. The record
further indicates that the mudslide occurred in September 2007 and was not cleared
until March 31 and April 1, 2008, which substantiates there was no emergency
conditions. The lack of an emergency coupled with a showing by the Organization
that there was a likely probability that the work in dispute was customarily
performed by BMWE-represented employees necessitated the serving of a notice.
The Board finds and holds that because no notice was served and the work in
dispute was done for the sole benefit of the Carrier, the Agreement was violated.
The Claimants are to be compensated as requested in Part (3) of the claim as there
was a showing of lost work opportunities.
Form 1 Award No. 40929
Page 6 Docket No. MW-41078
11-3-NRAB-00003-090432
AWARD
Claim sustained.
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 24th day of March 2011.