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In the Matter of Arbitration
Be teen
Missouri Pacific. Railroad Company
And
American Train Dispatchers Association
OPINION AND AWARD
I.C.C. Finance Docke
No. 27773
3ackaround
On May 11, 1981, the
National Mediation Hoard
appc
undersigned Neutral as Chairman of an Arbitration Committee pursuant
to the Board's authority under Article I,
Section 11 of Ap:endix
of I.C.C. ?finance Docket No. 28250 (hereafter New York Dock (I73).
hearing was held on June 8, 1980 *in Washington, D. C. The Missouri
Pacific Railroad Co. . (her
eaf ter "Carrier") eras represented by
Nina K. cJuestli.^.g, Esc. The American Trait Dispatchers Associatica
(hereafter. "Association") was .represented by Thomas tJCOdlev, -sc.
Post-hearing briefs were filed
on June
22, 1981: and it. was stiruIate
that the Opinion and Award would be rendered on or before July 31, _
Statement of Facts
In 1924, the Carrier acquired
controlling
interest of *6~exas
a
Pacific Railroad Company (hereafter "T
a
P" . ) As a majori ty-cwr.ec
railroad, the T ~~ P was one of pore than a dozen Carriers that
constituted the ~Missousi Pacific Line,-or Sys tent.
According
to ~.~e .
it began an intensive effort to coordinate t?:e activities
o; its subsidiaries in 1956. This grog=am produced, among other
the consolidation of several train dispatching offices. It does rct
appear that any of these train dispatching consolidations combined
T & P offices with Carrier offices. ;n 1967 however, the Carrier
and T & P did swap disptaching territories: the train dispatching
for Longview, Henderson and Mineola was transferred from. Carrier's
Houston office to the T & P's Fort worth office; and train dispatching for Alexandria and New Orleans was transferred from the
T & P to Carrier. The transfer of territory was accomplished in
accordance with the Washington Job Protect=on Agreement of 1936.
Prior to their. merger, Carrier operated train disptaching offices
at Houston and Palestine, Texas; Kansas City, Missouri: and North
Little Rock, Arkansas: the T & P had only one train dispatching
office at Fort Worth, Texas.
Carrier and T & P had, and continue to have, separate collective
bargaining agreements with the Association. The current agreement
between the Association and T
a
P i s dated August 24, 1952.
current agreement between the Association and the Carrier is dated
November 30. 1962. In 1966, the Carrier and T a P signed,
June.16 :Mediation Agreement A-7460 with the Association.
In 1974 the Carrier and T & P filed an application
with the
Interstate Commerce Commission for corporate merger. The Carrier
simultaneously sought merger with the Chicago & East T_llinois Railroad Company. According to the Carrier, the corporate merger represented only a change in corporate identity: Carrier and ^ tr ? had
been. operating as a unified entity =cr about.ten years.
On May 4, 1-976, the T_nte:state Cc.:.ne=ce Commission app:oved
the Carrier, ':
b
P, and Chicago 6. East :1iinois me=gcr. In its
Order, the interstate Cow.^ierce Comnnission recognized the extent
to which
Carrier and T & P already operated as unified entities,
"with
assimilated power and equipment, and common department and
personnel." In accordance with the requirements set forth in §
5(2) (f) of the Interstate Commerce Act, as ,amended (45 U.S.C. S 11347)
the merger was approved
subject
to the application of employeeprotective conditions contained
in New
Orleans Union
Passenger Ter=minal
Case, 282 I.C.C. 498 (1952), as
modified
by the arbitration
conditions set
forth in St. Louis Southwestern Railway - Pur. -
Southern Railwa , 242 I.C.C. 498 (1972), and by certain provisions
of §405 of the Rail Passeng.er Service Act (45 U.S.C. 563). Pursuant
to
a
Petition for Reconsideration filed in :March, 1979 by the
Railway Employees Department, AFL-CIO, the I.C.C. reconsidered
the appropriate level of employee prctection
to be
imposed oz the
izerger. Accordingly, it ordered that "all employees affected in
this transaction shall` be
afforded t
:.e relief set forth in
a;
Pendix
III of New York Dock Railway - Control - 3rocklvn "=astern District,
360 I.C.C. 60 (1979)." The U.S. Court of Appeals for the Second
Circuit has characterized the New Yo=k Dock
conditions as "The
most favorable of the labor protective provisions contained in
both the New Orleans conditions (as clarified in Southern Control
1-I) and Appendix C-1, adopted pursuant to 5405 of the Rail Passenger
Service Act of~1970." New York
Dock Railway v. U.S., 609 F. 2nd 83,
91 (1979).
on. January 21, 1981, Carrier served the Association
with
notice
of a proposal to consolidate its dispatching functions now perfcrr:ed
at Palestine, a'ouston and Fort Worth, Texas into a single new
of f ice located at
Spring, Texas (a suburb o: ;ions ton) .
was served "pursuant to Article 1, Section 4, of Mediation T,g:eener.=
A-7460 of June 16, 1966." The Association responded five days late=
contending that
"(sJince the proposed coordination of the train
dispatching facility and operations of part of Missouri Pacific
Railroad with those
of the former Texas and Pacific Railway is
clearly a result of the merger of those two Carriers approved by
the I.C.C. in Finance Docket No. 27773, the employee-protective
conditions imposed therein (New York Dock III are applicable."
:.'·.: s -ot=ce
issue in Dispute
The Association has
characterized the issue for arbitration as
follows:
Does the consolidation of the train dispatching functions
now being performed in the Fort North, Texas office under
the scope of the former Texas a Pacific Railway Train
Dispatchers Agreement, with those now being performed in
the Palestine and Houston, Texas offices under the
Missouri
Pacific Train Dispatchers' Agreement, as proposed in the Carrier's January 21, 1981 letter and notice
(file 3 246-471), constitute action taken pursuant to
authorizations or approval of the Interstate Cc,-,.nerce
Commission in Finance Docket No. 27 773,' Missouri Pacific
Railroad ComaanY - Merger - The Texas s Pacific Rail·.:av
Comganv, Etc., t~ hug making applicable the employee
protective conditions
imposed in that proceeding jNew.
York Dock (I I) J ?.
The Carrier, on the other hand, has posed the following questicZ
for arbitration:
Whether New
York Dock II employee protective
conditions
imposed in Missouri Pacific Railroad Company - Merger -
The Texas s Pacific Railway Comtany, Etc. , (Z.C.C. F z.^.a.^.ce
Docket No. 27773) are applicable to the transfer of the
train dispatching
office at Fort Worth, Texas?
AcclicabIe ?rovisions
:he parties to this dispute re-'y on languace contaned
4n
--zee
separate employee protection documents to sunoort their respective
positions. In.terms of chronology, the first of these is the
Washington Job Protection Agreement of 1936. That Ag=eenent
provides allowances to employees affected by a "coordination."
A "coordination" is
defined to mean "joint
action by two or more
carriers whereby they
unify, consolidate,
merge or pool in whole
or in part
their separate
railroad facilities or any of the operation:
or services previously perfo .,ed by them through such se:arate
facilities." (Underscoring added.) This Agreement also expressly
provides for coverage during "the period following the effective
date of a coord=nation during which changes consequent upon
coordination are being made effective." The Agreement contains
procedural assurances
and
compensatory allowances for a five yea=
period to affected employees.
The June 16, 1966 Mediation
Agreement
affords : ro tect?
ve
benefits for train dispatchers who are displaced
and
deprived o:
employnent as a result of certain specific ty=es o= changes
%,;;t,
'n
one carrier's ooeration, including the
consolidation or removal
of train
dispatching offices. The
benefits provide for a five year
protective period; allowances earned are
not recalculated to reflect
subsequent wage increases.
It is imvortant td note
that the 1966 Mediation
Agreement dces
not apply to any transactions subject to approval by "-,he interstate
Commerce Commission or to
any
transactions covered by
the Wash:.-.5 _=..
Job P=otection
Agreement of :!ay 2:, 1936."
i · j . L
y, Appendix III of Near York Doe:: (:I) provide; ;.e:;
^: otQct :cans for employees who have 'peen
displaced, disr,;i sseC,
to relocate, deprived of benefits, and so -forth, as a result
o: a
"transaction." A "transaction" is defined as "any action taken
pursuant to authorization of this
Commission on which these provisions
have
been
imposed." Among the provisions imposed by
Appendix
:7-:1
is
a six-year protective period, during which a
dismissed or displaced
employee's allowance is adjusted to reflect subsequent general wage
increases.
FINDINGS
Issues of Arbitrabilitv
The Carrier has challenged the jurisdiction of
the Arbitration
Committee which has been established under the auspices of the
National.
Mediation Board pursuant
to Section
11 of Appendix III
on two
grounds
First, the
Carrier contends that
time limits ;:~:~u~_ : b~ . _ -)n
11 (a) of Appendix III were not cormplied with. - ':hat subsection
provides, in
part:
In the event the railroad and its employees o- their
authorized representatives cannot settle any dispute
,or controversy with
respect
to the inter?retat--on,
application or enforcement of any provision of this
appendix, except sections 4 and 12 of this article
I, within 20 days after the dispute arises, it may
be referred by either party
to an arbitration committee.
The Carrier notes that it gave notice
to the Association of its
intent to nova the Texas dispatching offices on January 23_ 19q'.
By letter
dated April 8,
1981, the Association served notice o=
its intent to arbitrate pursuant to Article I, Section 11 of
AD-jendix III. Thus, the Carrier
contends that by its untimely
invocation of
Section 11, the
Association ?:as waived its right
.%rhi·. ,r_.
This claim is predicated on-reading
Section 11's zeei:ence
to 20 days as a window
within which
a party _lust act to i.^.:o::~
arbitration. When examined in the context of the entire
d0Q..L:re.-)t,
however, it seems clear that the 20 days was meant to provide a
minimum period in which the parties were to attempt to reconcile
their differences, and only after the expiration of that period
could either party invoke arbitration. Obviously, there is a
period of delay in seeking arbitration
that would
constitute
laches, but the two month attempt at settlement here was not unreasonable in light of the importance of the issue.
Second, the Carrier argues .that
"there is
also a substantive
issue of whether Article I,
Section
11, which creates an Arbitration
Committee, also empowers the
Committee
to decide whether this
controversy, applicability of Dock II, is arbitrable." In this
regard, Carrier relies on that part of Section 11(a) which authorizes
re!erral to arbitration any dispute "with respect to the interpretatic
application or enforcement of any' provision" (Underscoring added.)
The Carrier would remove from Section 11 coverage the question of
the
Appendix's overall application to a particular
event. ;/
Aoolication of the tee'"transaction"
The Carrier contends that
Appendix
III is inapplicable because
the proposed action at issue is
not one authorized by the I.C.C. Ord
nor undertakers
pursuant to the I.C.C. Order approving the :verger.
In support of this position the Carrier cites Steelworkers v.
Warrior
Navi
ation Co., 363 U.S. 574 (19601, for the propositic
that questions o arbitrability are for the
courts to decide, :::
the agreement
states
to the
contrary, and Railroad Yardmaster c:
America and
Chesaveake
and Ohio Rv.
and Seaboard Coast Line RR.
(I.H. Lieberman,
March 1981 for the position that Section 11
to the arbitration
and
settlement of disputes which
miSht
arise
under the parties' agreements implementing Dock II.
Ra the.-
D
-roposed c,^, nso1 ' y7
e. . the
C..__er ~ claims
, the , _ a=:cn is a ..__ :cc
result of technological improvemen is and econcrnic ce.^.d: =: ons .
yn support of this
theory-,
the Carrier introd;ced evidence
rec;arding the underlying reasons
for the move to Spring,
Texas.
First, the T & P building in Fort Worth, which houses t'.^.e tra?:%
dispatching office, had been a
financial liability.
During the
years that attempts
were
made to sell
that building, the Carrier
was also
acquiring land in the Houston
suburb of Spring for a
new
yard and office park. In
1978 the Fort tforth
building was sold
with a two
year lease-back for office space. In 1981, the office
building in Spring was
completed and
the
Carrier was prepared
to
consolidate its Texas offices at that
location.
'Moreover,
the
Spring office is equipped with computerized centralized tra!fic
control equipment. The
capabilities of this type of equipment
are superior
to those of
the lever type machines currently in use
at Fort
Worth, Palestine and Houston. Although the new computer
system will produce economies, it
would not be cost
effective to
equip all three offices with
ccmputer-assisted equipment.
The Carrier thus argues that the proposed
consolidation is
a result of economic measures.and technological improvements that
"merely by chance happened
to occur after
the
merger
and not the
direct result of or
in any
way connected to the merger."
(Carrier Brief, p. 26). In this connection
the
Carrier states
that it would have consolidated the train
dispatching offices
even. is the absence of a merger. .
As a corollary to this arg-zment, the Carrie= asserts that it
could have consolidated
the train
dispatching functions wi thouz
I.C.C. approval and that
this
fact distinguishes the case at issue
here
.`=on.
other situations in which .
applied. The Carrier has emphasized
construed the merger of Carrier and
a consolida tion; of torpor a to
In its Order,
the I.C.C. stated:
e than
The :verger
application .here:.z does not involve
significant changes in the rattera of operation
of the MoPac system, but merely represents a
simolification of present MaPac corporate
structure. The proposed merger is nothing more
t::an a consolidation of the corporate identities
of the three applicant railroads, MoPac, T 6 ?,
and C & El. McPac has controlled
the T & P
through
stock ownership :or over
54 years.
Texas &' Pacific Read itst.-~en:, 86 I.C.C. 808
(1924), and has controlled .he C & EI through:
stock ownership for over 10 years, Missouri
?ac.
R. Co.- Control-Chicago
s
=.I.R. Co., 327 I.C.C.
279 (1.965) , MoPac and T s ? ::aye been ooeratin
as a unified entity
with
assimilated
Power and
ecuiement. and common denar -ents and cersonnel
for about 10 years. T.he G : =I has been operated
an
an assimilated
basis witz the other two railroads in the same manner far about 6
years. The
operation of these three rail;cads on an
iatearated
basis means that,
u:~like' a croceedi.^.c inhere one
railroad
seeks to coerce
wit:;
another
unaffiliated
railroad.
the
coordinat'_o- and =mbination o
oartments
and
tersonnel o: -e._c;.-:c railroads
wtil
not result in the customary sicni=icant ecenon=es
involved in the elimin3tica v: cv=licate~ ae,=a=--e.^.ts.
(:..aphasia added), 348 I.C.C. at 419.
The Carrier has contrasted this type of merger with
the
proceedings involving the Chesapeake & Ohio and the Family Line
System (Finance Docket No. 28905) . There, the Carrier claims,
I.G.C. approval was required to acct=plish the wide range c!
o;erational changes proposed by the
=e=ger carriers, including
acquisition of
trackage rights and a'_-a::conment rights. Thus,
decisions to,displace employees
as a result
of the
ccnsolida Lion
of yard's,
interchange
operations, an! clerical forces are attic^s
taken
"pursuant to* Commission au:.hcr:rat_on and "t=a,sac::cns"
~,
under Appendix I:I
. T.
n ~h i s s _ tua tio^ , t.`.e Ca: = ier c=ars _::a c
I.C.C. authorization was necessary :o: t:~e nergez, but
t:iq
:je:ce=
was not necessary to consolidate the d=snatching offices.
Reply Brie!, p.. 19) .
Despite the evidence
in the record
that the
consolidation
was a pre-existing plan, the Association argues that the plan's
consummation would be "pursuant to" I.C.C. authorization i- that
action was in accordance with, consistent with, is con=o ^tance
with or in
furtherance of the approval of the
I.C.C. Phrased
negatively,
the
Association
suggests that a particular act
by a
Carrier can-be
viewed as a ."transaction" unless that act
is not in accordance
with the merger plan, not consistent
with,
presumably, the order of the
I.C.C. or not in
furtherance
of *the objectives of the merger. (Association Reply Brief, p. 10) .
The
Association
argues
that
the action here is, indeed, consistent
w
in accordance with
and in furtherance of
the
merger
since the
C3rricr hopes to realize,
through the planned
consolidation, certain
"additional economies and efficiencies," one of
the purposes exp=essi
in the merger application. Thus, where an action will accor.;plis::
an objective sought by the merger, it is an action taken "pursuan=
to authorization of Ethel Commission."
The
foregoing construction of the
term "pursuant to" does not
include as an ingredient the.concept of causation.
Indeed, t::e
Association suggests that if the Commission had meant to req_ire d:r
causation it would have phrased the definition of transaction to
include the term "caused by". ::ever=heless, 4_--here is considerab_e
distance between the term, "caused by" -and the Association's forr~:a·
of "not inconsistent with." The
former standard would limit t:ans-
actions to those acts regu_-ed
by :.C.C. me=per
amproval
clear
that
the
Cermission has not ;:noosed
this standard.
regard, i t is just as obvious t::a t t:^.e ter-m " tr ansactica" was ..^.c,.
meant
to be l_.mited to
those
issues that were
expressly cove=ed _n
the merger
application and Order, as the Carrier suggests. ne =ac=
that
the I.C.C. did not specifically consider this Carrier's plan:
to consolidate train dispatching office cannot be viewed as dispositive of the issue here (Carrier 3rief, p. 20).
The Carrier's claim that Appendix
III conditions apply only to
actions which
require I.C.C.
approval is problematic.
To begin, it
is not clear from the arbitration cases cited by the Carrier that
I.C.C. approval was necessary for the specific actions taken by
carriers pursuant to Finance Docket ;to. 28905. See, for example,
HRAC and C&O Ry. and Seaboard
Coast Line R.R.
(Lieberman, February
28, 1981) . That case
involved, in
part,
the
coordination of CbO
and SCL clerical forces at Richmond, Vi=ginia; it is not clear.
whether I.C.C. approval was
necessary for such coordination c=
whether it could have been accomplished through the-Washington %22
Protection Agreement.,
it is equally clear, however,. that the Commission has viewed
the imposition of protective benefits as requiring a proximate nexus
between the actual,merger and the Carrier action at issue. Every
action initiated subsequent to a merger cannot be considered, ipso
facto, to be "pursuant to" the merger. There must be a causal connection. As it relates
to
the applicability of New York Dock :S to
a merger, such- nexus is implicit in the
te= "pursuant to. " C t~:e=
wise, ter=s such as "in accordance with", "subsequent to"., "_`ol:c:ri.^.~
and "changes consequent upon" have no meaning:
they become empty
words rattling in a semantic vacu,:m .
av. - C3^trol - Cent=al o: Geo=-_a
Rte.
case, t'.^.e Cc7-riss4cn s:atcA.
" (T) The 'effect' of subsequent internal t-achno-';Dgical
inprovements b: either o: the (two consolidating) ca=
r=ers, even if made possible by improved financial
circ~rmstances partly attributable to the uni=icaton of
control, is too
indirect and remote to be considered
a result o! the transaction; and
i t
is not our _.-. intention
that employees affected by such internal improvements
shall be entitled
to
the benefit of
the
conditions."
(Underscoring
added).
Southern Ry. - Control - Ce.^. t: al
of Georgia Ry:, 317 I.C.C. 729, 732 (1963? , ad='d sub
nom. Railway Labor
Executives Assn. v. United States,
226 F. Supp. 521, (E.D. Va.), vacated on other grounds,
379 U.S. 199 (1964).
It is
the absence of
any such
causal nexus in this case
that
defeats the application of the term transaction.
The Carrier was able to demonstrate
that its plan to
consolidate
the
train
disptaching offices
was
made independently of the
Commission's merger approval. The decision to
convert to a single
train dispatching office in Spring, Texas was based on
the cost of
maintaining the
building in Fort Worth, the,
need to provide central ize,
traffic control
through computers, the
reed to replace outdated
ccuip ment now in use, and the
availability of
Ca=rier pro;e= ty
in Spring. As
the Carrier pointed out, -it is
only
happenstance t::a ;
the
consolidation
is to occur after the
merger: the decision to
consolidate was made well before the merger.
The Association's argument, however,
does not
rest-solely on
the definition of .transaction, as
it is
written.
also points out that "transaction" has been interpreted to include
those
situations which would
be covered under t':e te_-n
"coordinat_cn"
in the
Washington Job Protection
Agreement
of 1936. Since the
carrier concedes that the proposed
consolidation would
have. teen.
accomplished under
the
Washington Job Protection Agreement '.:ad
i t
The Associat'_oz
t=ke.^. ^lace
" _
dc
t~':
wOL.:.'~.
..e
d CDC~..--O.1
':he lssoc? at:on ::as ci Led two statements
--.D
s,_==o=-: its
that any act that would
be a coord_nat::cn
transaction
after a mer Ce= .
c
i=s
t, In
se t.i.-.g cu t the subs Lance e.
Appendix ::I of Dock ::, the I.C.C. stated:
"The labor organizations also request that defini-
tion of the te= a ' transact:.on' in ar t:cle 1, sec Lien
1(a), be modified to encompass the sane situations as
the
complementary term ' coorcination' does in «JPA.
These
terms are the triggering
mechanisms of article
1, section 4 and sec Lions 4 and 5 of WJPA, respectively
Since article I, section 4 here i s i.^, tended to in
corporate the full
protections of sections 4 and 5
o: WJ?A, the term 'transaction'
should be redefined
to set the
notice,
negotiaiton, and arbitration
provisions is motion in the same situations as
does the tern 'coordination.'
the
also note that
the broad
definitior(Dis
necessary is the types
of transactions
for
which
approval is required
under 49 U.S.C. 11343 et saq., because the event
actually affecting the emol.cyees might occur a-
a
'_ater date than the initial
transactior. and
arbitration;
therefore, we
will
:codify the term 'transaction' so
that it will am ply
to any action taken pursuant 'to a
Cor:nission
authorisation upon which
these
conditions
are i;apo s ed . "
"ew York Dock- Railway - Control - 3rookl
Vn
=astern
Diet., 360 I.C.C. 50, 70 (1?i9)
Later. in. a?holding the legality of t'-.e Appendix II cond;t:.cns, :he
Second Circuit expressed the following opinion' as to the tei:as used
by the, I.C.C.:
(8J The definitional provisions contained in the
":Jew York Dock conditions" remain to be discussed.
?etitioners' objections to the ICUs definition of the
term " transac Lion" are without merit. Although this
definition
has no precise ancestor in either the " ew
Orleans conditions" (as clarified in Southern Control 1:)
of in the Appendix
C-1 conditions. -t
is clear :ram the
definition itsel-, as well as from the !CC's ex-mressed
intention in fa:nulatinq this definition itself, as
,4ei:
as
"on
the ICC's expressed intention in :o::.iulat'_^g this
definition, that the goal which the ICC had in
;zinc
was
to encompass in its
definition of
"transnct:.on" t::e~
sa.-.!e situations that were .,rithin the parallel te_^..t
"coordination" employed '_n t:ie adm_ _=ed
all current employee protective nacxages, t::e
do not believe that t::is goal is ~ tevcnd t^e s
authority
con-e=red on t'.^.e !CC
:n _`o_.. formulating
protective
conditions pursuant to 4
9 U . S . C . §Nor do we _ _., t . .
believe that the 10C' s a t:err,-.t t::e ac:::eve
this goal st=ays so far
from the :nark that the term
"transaction" needs
redefinition by us.
New
York Dock
Rv. v. U.S., 609 F.2d 83, 94 (=979).
On the ssr;ace it appears as though both
the Co=ission
and
the Second Circuit have concluded that the terns transaction
and
coordination are interchangeable. A closer analysis of the statements reveals, however. that neither forum dealt with tha situat'_on
encountered heret the lack of
a
causal nexus
between
the merger
and the Carrier's action.
The I.C.C. comments in the
New York Dock II case were made in
response
to
the Organizations' concern that the prior definition
would not
extend protection to actions taken by a Carrier at a
later
date. The Organizations
sought a
redefinition that would cover not
only the initial transaction but "future related actions
made
pursuant to (I.C.C.1 approval." 360 I.C.C. at 65.
responded to that objection by expressly covering situat'_ens where
"the
event actually a.4 f ecting the employees :night occur at. a 'later
date than the initial
transaction yet
still be
pursuant to our
approval..: 360 I.C.C. at 70. Both the objection and response
deal with the timing of a "transaction" and it is in this context
that the Commission equated "coordination" and "transaction."
However, neither the
objection nor the response supports the prcposi
that a causal nexus is unnecessary in a transaction. The Second
Circuit's opinion does
not
elaborate ,on the Cor"fission's earlier
analysis and, in light of the Court's express refusal to reef i::e th
" -"-' I-
at-w-ned
that the Commission's earlier statements a:
cannot be sa=d that t:-.e Cc,.-ii s
"coo: dins tion" was :.mended to defeat
nexus .
In the suz, the association has not shc:rn that t::e : zc= osed
consolidation of main dispatching o=;ices -;s
a "transaction"
within the meaning of
Appendix I_TI, nor
has the Assoc:at;on over
come the Carrier's affizmative presentation that the proposed act--'--.%
is not one that.-was made pursuant to the me=ger of the Texas
Pacific and Missouri Pacific.
Based on the :oreqoiag, the Conm:ttee
renders the follcuing:
.. The employes protective conditions of New York Dock II
imposed
in I.C.C. Finance Docket No. 27773 are not applicable to the prc=used
consolidation of
the train dispatching
functions now being performed
at Fort North, 2alestine, and Houston, Texas.
NEUTRAL ME.MSE
Carrier tSem t
Date:
July 3I, 1981
Orga.zi za ti on Member
W~le
·,1^.e Award was rends: ed on July 31, ? 98I, mr_ti.^.g the rr_z:_e~t^.a
of Sec--i= 11 of Few York Dock IZ, the A_-'itt:or ruled that the ,6.a..-: weld ^ct
beccre eective · ·~ve Session. · · ` desired,
were held.
,n _r.\-ec_,t: ve
~_ until _ art ~1ec,. ~v
e~
Sz.ssica, at t.'^.s re;:nst of tea Union, was held on IQ-_ve:-to_- 3, 1981. ^'a Arri:-a=c=
^aled t!-at ~ e Award woUd stand as .end=-ed. As result of :: e - ···ve _14'ess_c.^.
the Crgrnizat on' s Dissent is attached.
1. iV V
~ S. / ~ ~ --
'::-:e Cci nion a.^.d .'two=d c= t.,-,e Neutral Me^_.e= _s Cased :--.-.
his view that -here
was
no "calasall nexus" tete:een the .-.:e=ge= c:
th a Missouri Pacific Railroad Cc-ipany t"i:a?ac"? a.^.d t::e Texas
and Paci=is Railroad Cc=any ("T;P") , as arprcved by t:.e _.-._e=state
Co=erce
Car»-aission (":CC") , and the transaction at issue he=e;
namely, the
consolidation of the T&P train dispatching
fvnc:ions
at -"c=t worth, Texas
with
those of t.'^.e "!oPac of=ices
at
Palestine
and
Houston, Texas,
and
t:Ze
:zzoveazent of those f·=zct_cns to a .new
facility in Spring, Texas. The Neutral
Mer!:er
tz:.stakenly relies
on i=tzaterial facts, ignores other relevant and c_itical facts,
and misapplies
the
prlncipl es set fort.' in New York Dock Railway-Control-3rooklvn Z'aste=.^. Dist., 360 I.C.C. 60 (1979) , af='_=eC,
609 F.2d 83 (2nd Cir. 1979) .
The Award does not adopt the
carrier's -=aiz
assertion
that it
could have ef=ectuated this cor.so'-idat_en of
se=arat_ :~?
and :rip?ac train dispatching =acilities i.^, the absence o= the _CC's
order approving true
merger of the
two railroads. .:t is well
settled
that
rail carriers are not free to cc .: ine sepa=at_ oper
ations and facilities without :CC" approval,
even i= the carriers
have.a
parent-subsidiary relationship. 49 U.S.C. Section 5(2),
recodified as, 49 U.S.C. 511343 (a) . _See, New York Cent=al
Securities Corm. v. U.S., 287 U.S. 12 932) ; United States v.
Lowden, 308,U.S. 229 (19391. Thus, .::e Award's heavy reliance
on McPac's undocuwented ':: tent_en' to consolidate these =acil;t_=s
prior to
the
merger is iz=a. serial . Clearly, the c^solida ticn
~n.
cou:3 not have taken place - and did :yet take place
the =CC's dec'_sion authorizing the r,.erger.
Indeed,. a critically impor tans =act which is glossed over
in the Award is
the
existence of the
Association's sego=ate
'schedule agreements
governing
the T4P train d.ispatthers and d --'-.a*
MoPac train dispatchers. ' These separate agreements =eserre
tre
train
dispatching duties to the Ts?
and MoPac dispatche=s under
their respective seniority districts. The only way the carrier
could ef=actively disregard these
agreements
and
implersent the
consolidation is*
through the ICUs merger approval - and even
then it could only be accomplished
through
the
collective
bargaining process.
New York Dock -II, Appendix III, Ari. I, Sec. 7
Simply stated, other
than the
merger action, there is ao other
vehicle ' which permits
consolidation of
facilities opera tad by
different
rait -pads and governed
by separate, schedule agreements.
The cause and ef=act relationship in these circu.~stances caw?_ ha=dl
be -more
clear.
Moreover, the Neutral member mistakenly agreed With the
carrier's
contention that its
consolidation action teas
based solely
on financial and technological reasons unrelated to the merger.
in light of this
argument,
the consolidation
occurring after tie
merger tsar
viewed :zerely as a "happens Lance . "
Consolidations Like t.':e one =n cues Lion here axe a? test
always motivated by a desire to inc=ense operational
reduce costs and enhance protitabili ty. To allow a cz.,.-:-ier to
escape his employee ,protective obligations by pointing to '.use
Unf -·::nate?y, t::at
is ,-ec:sely the result
case.
The deficiencies is the Award are best i==us
:rated
tV
the
erroneous reliance on the SouthezZ Rv.-Control-Cent=al cf
Georgia Ry. case - the only authority cited in the decisional
portion of the Award.
The Neutral Member, in apparently adoat_Zg
the arg%:.ment in the carrier's
submission,
quoted at length the
initial ICC decision wh=ch~noted that the effectuation of
technological improvements by the consolidated cart=ers
there
was ". . . too indirect and remote to
be considered a result of the
transaction...", and therefore the labor protective
conditions
did not apply. Southern Rv.-Cont=ol-Central of Georgia Rv.,
317 I.C.C. 729, 732 (1963) , af:!'d'. sub sots, Railway Labor
Executives' Assn. v. United States. 226 F.Sup.P. 521, (?.D.Va.),
vacated on other
grounds,
379 U.S. 199 (1964).Y
On remand
from
the Supreme Court, however, the ICC
:.codified its original decision by expanding the -!a'--or p;otectWe
conditions to cover those situations which the car=cars :alt we=e
outside the protections described by the ICC in the move-cuoted
language. Southern Railway Co.-Control-Central of Georc_a Rv. Co. ,
In the first sentence of the quoted paragraph, the ICC
stated that ." (ij t is plain- under the conditions that an employee
would be entitled to benefits
if adversely
affected by a coo:ci:.a_:c
of the
operations of the applicant and the Central or by the si_°;_::
of functions from one to the other." 317 I.C.C. at 732.
~:thcuc::
this sentence was on? teed, from the quotation is the Award, it otviously applies to the coordination or shifting of
t=air disTatc~:,g
functions from the TsP
to the MoPac.
Of course, the protective
conditions have beet
considerably expanded under New Yv=k Cock _;.
331 -.C.C. 151 (1967).
tcntent? ons into his Award
the :CC' s ruling on
remand
the initial decision a=-the
the
Association's position
ICC, and which actually sup;c=is
is tie instant case.
Finally, the Award.
Is
plaizly inconsistent wit. t'.^.e lan SuaSe
and
intent of
the New York Dock protective conditions. ::se Post
merger consolidation of
train dispatcher facilities
involves ,.:e
"consolidation of employee rosters" which is expressly covered
by the :CC's decision in-New York Dock 11. 360 I.C.C.
at 70, 75 2,/
Furthe=ore,
both the ICC and the
Second Ci=cuit Cou: : of
Appeals sound that the broad te_-=
"transaction"
embodied the same
actions covered by the term "coordination"
under the Washington
Job Protection Agreement (W,TPA) .'
609 F.2d at 95.3 As the Awa=d
itself points out, the carrier conceded that the consolidation
c-A
the Mo?ac and TAP train dispatching -acilities would be a "coordin
ation" under the WJPA if it had not been
for t::e merger. on the
basis of this concession alone, the consolidation should have bee.^.
:ouzd to be a "transaction" as defined in New ":ark Dock
For the foregoing reasons, I vigorously dissent.
1r
an a. o :ns
Organization member
Z/Qnfortunately,
the quotation of the New York Dock ;C decision iz
Award (p.13) mistakenly omits this i-icortant :e:e-ebce to ti:e
consolidation of eamployee rosters.
3/Other Arbitrators have correctly
date^i::ed that the term "t; a.-.saction" should be broadly apclied to enco.-..pass those ac=ions ;?':a
t
constitute a "coordination" =de= .-he WJ?4. Denver s R-o Grande
Westesa R. Go., and Railway Lobo= Ixecutives' Ass':.,
Janua.:y 9,
Neil P.
SpZers)
: New York Dock Rv. Co. & 3rcoic vn -as:·rn
Oatr:._
Tar-Rinal and Brotherzoo o: Lccc-:etjve =na-nears, Dece.^ce=
:5,
l9s