In The Matter of Arbitration )
Between )
NORFOLK AND WESTERN RAILWAY COMPANY)
)
and )
)
ILLINOIS TERMINAL. RAILROAD COMPANY )
VS. )
BROTHERHOOD OF LOCOMOTIVE ENGINEERS)
and
UNITED TRANSPORTATION UNION
OPINION AND AWARD
Background
Finance Docket 29455
This is an arbitration proceeding pursuant to the provisions
of the New York Dock Labor Protective Conditions (under Article
I, Section 4), imposed by the Interstate Commerce Commission in
Finance Docket
Number 29455.
Hearing was held at St. Louis, Missouri on November 11, 1981,
at which time oral argument was heard and exhibits offered and
made part of the record.
In addition to the submissions presented at the hearing,
the parties agreed to file post-hearing submissions and reply
submissions. The post-hearing submissions of Carriers and
UTU were received on November 25, 1981. Because of an incorrect
mailing address, the post-hearing submission of BLE was not
received until December 2, 1981.
Carriers were represented by R. D. Kidwell, System
Director Labor Relations and
M. M.
Lucente, Esq. The UTU was
represented by Vice Presidents C. L. Caldwell and H. G. Kenyon,
and W. G. Mahoney, Esq. The BLE was represented by Vice President E. E. Blakeslee.
Statement of the Case
On June 22, 1981, the Interstate Commerce Commission (ICC)
authorized the acquisition of therIllinois Terminal Railroad
Company (IT) by the Norfolk & Western Railway Company (N & W).
The acquisition authorization was conditioned upon the N & W's
agreement to accept the provisions of the New York Dock II (New
York Dock Railway-Control - Brooklyn Eastern District, 360 I. C. C.
60 (1979).
Article I, Section 4 of the New York Dock Conditions require
that subsequent to Carriers' serving a 90 day notice of the intended
transaction, the parties endeavor to negotiate an .implementing
agreement under which the employees will work after.the implementation of the consolidation.
On July 29, 1981, Carriers' served the required notice on
the Brotherhood of Locomotive Engineers (BLE) and the United
Transportation Union (UTU) of their intent to "unify, coordinate
and/or consolidate their respective operations" on or after
November 1, 1981. After serving the requisite notice, the parties
met on several occasions in an effort to reach agreement under
which the employees would work upon implementation of the consolidation. The parties were unable to reach agreement, and Carriers
then advised the Organizations that all proposals made (except
Carriers' original proposal) were withdrawn; and that
Carriers were
invoking arbitration
pursuant to Article I, Section
4 of the New York Dock
Conditions.
The pertinent portions of the July 29, 1981 Notice by Carriers
read:
"As a result of the Carriers' excercise of the
above-described authority, it is intended to
unify, coordinate and/or consolidate facilities
used and operations and services presently
performed separately by Illinois Terminal Railroad Company and Norfolk & Western Railway
Company.
It is intended that all train and engine service
employees represented by the Brotherhood of
Locomotive Engineers or the United Transportation
Union will, on the effective date of the unification, coordination and/or consolidation, be integrated into an appropriate single seniority
roster and that such employees will be employees
of NW and will be available to perform service
on a coordinated basis subject to currently
applicable NW (former Wabash) agreements."
Carrier's initial Implementing Agreement dated August
1, 1981, was a proposal
involving B
LE only, and excluded UTU.
That Agreement read in pertinent part:
"Article I
Section 1
(a) Except as provided as in (b) below, the names
and seniority dates of the active IT engineers (all
who are working as engineer or hostler either extra
or regular or those who stand to work as such on the
effective date of this Agreement) will be dovetailed
with the active NW engineers (a11 who are working as
engineer, fireman or hostler either extra or regular
or those who
stand to
work as-such on the effective
date of this Agreement) on St. Louis Terminal.
Thereafter, the inactive (not working or do not stand
to work as engineer, fireman or hostler) IT engineers
names will be dovetailed with t)ie inactive NW engineers
on St. Louis Terminal and the
combined inactive
group
will then be placed on the bottom of the previously
dovetailed active group of engineers. This will con
stitute the new NW consolidated St. Louis Terminal
Roster.
(b) IT engineers electing not to have their names
and seniority dates dovetailed into the St. Louis
Terminal Roster will advise the Carrier within ten
(10) days of the effective date of this Agreement
of the NW's Decatur Division road or yard roster,
excluding roster of Forrest District and Hannible
Quincy Yards, on which they elect to have their
names and seniority dates dovetailed, and their
names will be removed from said St. Louis Terminal
Roster.
Article II - Schedule Agreement
Upon implementation of this Agreement, all engineers
in the consolidated seniority districts will be
subject to the applicable Schedule Agreement in
effect on the former Wabash, except as specifically
provided herein.
Article XIV
This Agreement, while bearing the signature of the
United Transportation Union General
Chairman who
formerly represented engineers on the former Illnois
Terminal Railroad Company is hereafter recognized
as an agreement between Norfolk and Western Railway
Company and Brotherhood of Locomotive Engineers only
In summary, Carriers' proposed Implementing Agreement would:
(1) Dovetail the seniority of employees on a two
tiered basis (active with active, inactive with
inactive)
(2) Place the IT employees under the N & W (Wabash)
schedule agreement, and
(3) Transfer the representation of the IT employees
from UTU to BLE. 1 /
1 / Carriers reject the third contention, asserting that the
Board is not being asked to alter representation rights. Carriers
state: "The Illinois Terminal engineers represented by UTU con
stitute a minority of the employees of the craft of engineers in the
post-consolidation NW system. As such, UTU must apply for certifica
to represent engineers of the consolidated NW system, regardless of
which agreements remain in effect."
Issues To Be Resolved
The parties are in agreement that there are two essential
issues to be resolved in this dispute:
1. Does this Board have the authority under New
York Dock Conditions to change the provisions of
existing collective bargaining agreements, i.e.
the authority to terminate the IT - UTU agreement
and remove the IT engineers from UTU's jurisdiction.
2. Is the Carriers' proposal to dovetail seniority
rosters (active with active and furloughed with fur
loughed) a fair and equitable method of combining
the N & W - IT work of locomotive engineers.
Position of the Carriers
Carriers argue that the consolidation proposal, particularly
the provision for the placement of all employees under one N & W
schedule agreement, is the only proposal that will effectively
achieve the purpose and intent of the ICC order. Otherwise,
Carriers argue, N & W will have to live indefinitely with two
separate and distinct work forces -- "One still operating under
N & W rosters and rules and one still dependent on IT's rosters
and rules even though IT and its operations have disappeared."
Carriers argue that the arbitrator's authoritv under
Section 4 of the New York Dock
Conditions includes
the power to
change the provisions of existing collective bargaining agreements.
Carriers assert that the arbitrator's authority is consistent with
the principal enunciated by the ICC in Southern Railway - ControlCentral of Georgia, 331 ICC 165: "That the very purpose of the
first and landmark set of merger protection conditions - the Washington
Job Protection Agreement (WJPA) - was to provide a basis for
'superseding' existing agreements in order 'to avoid... the pro-
hibitions against transfering work from one railroad to another
contained in collective
bargaining agreements
... ' While
Carriers agree that the ICC in Southern Railway-Control that
agreements were not automatically cancelled by a merger order,
they argue that the ICC "prescribed Sections 4 and 5 of the
Washington Job Protection Agreement as conditions of the merger
in order to provide a mechanism by which agreements could be
changed, " and that Sections 4 and 5 (which formed the basis
for Section 4 of the New York Dock
Conditions) "required
Carriers
and labor
organizations to
negotiate over 'each plan of coordination
which results in the rearrangement of forces' "and that in the
event that the parties failed to agree, both Section S of the
Washington Job Protection Agreement and Section 4 of New York
Dock, a 'superseding process' through arbitration "
Carriers refer to the New York Dock decision 2 / (Which
expressly refers to the
consolidation of
seniority rosters as
a change that is subject to its procedures), and quotes the
Commission's statement that "any future related action taken
pursuant to an approval (i.e., consolidation of rosters as a
result of the control) will require full and literal compliance
with the
conditions," and
urge that "where seniority rosters and
work are consolidated, it necessarily follows that rules must
be consolidated and made uniform as well. Otherwise, the
absurd situation of employees working at the same time on the
same crew under a different set of work rules would result."
2 New York Dock Railway-Control-Brooklyn E.D.T..t~360 ICC 60 (1979)
(Underscoring provided.)
Carriers reject the Organizations' contention that Section
2 of the New York Dock Conditions does not allow changes in
agreements through the arbitration process. Section 2 reads:
"The rates of pay, rules, working conditions and
all collective bargaining and other rights, privleges and benefits (including continuation of
pension rights and benefits) of the railroad's
employees under applicable laws and/or existing
collective bargaining agreements or otherwise
shall be preserved unless changed by future
collective bargaining agreements or applicable
statutes."
Carriers argue that the arbitration process set forth in
Section 4 is an integral part of the collective bargaining process
that results eventually in an agreement voluntarily-negotiated
between the parties or an agreement prescribed by arbitration.
Even though arbitration might be required, this does not change
the character of the ultimate product, namely;-a collective
bargaining agreement; thus meeting the reglti cements -of Section. 2
of the New York Dock Conditions with respect to the procedures
for changing, existing collective bargaining agreements. In
support of their argument, Carriers rely on the Seidenberg Award
involving the Yardmasters, Conrail and the Detroit Terminal
Company.
Finally, Carriers argue-that the consolidation of seniority
rosters and the placement of the N & W and IT work forces under
the N & W Wabash agreements are necessary to carry out the transaction authorized by the ICC. Without a consolidation of seniority
rosters and a~unification of schedule agreements, Carriers contend they
could not accomplish the central features of the application
approved by the ICC. Carrier states: "IT positions will not
become NW positions and IT's operations will not be fully consol
idated with NW's operations. Instead, an inconsistent and obstruc
tive aspect of IT's former operations will survive and impede the
consolidation. NW will be forced to manage the physically consol
idated NW-IT properties with an unconsolidated NW-IT work force."
With respect to the question of the method of
consolidating
the seniority rosters, Carriers contend that the dovetailing as
proposed is the most fair and equitable method of putting the
rosters together. Carriers assert:
"It would tend to keep-the same employees working
subsequent to consolidation that are working
today. Furthermore, those presently active engineers who possibly would be furloughed subsequent
to consolidation through a reduction in assignments
would be the first group returned to active status
by atrition of senior engineers or an increase in
total number of assignments."
Carriers reject the "equity proposals" as being too difficult
to administer and creating confusion and ill will among-the involved
employees.
Position of the Organizations
Both the UTU and BLE argue that an arbitrator does not have
the authority to terminate the IT-UTU Agreement and place the
IT engineers under the N & W-BLE (Wabash) Agreement. The Organizations-argue-that--the arbitrator's jurisdiction under Article I,
Section 4 of the New York Dock Conditions is limited to determining
the implementing agreement provisions having direct application to
the basic employee protections arising from the immediate transaction and to the selection and assignments of employees affected
by the transaction. Unless such jurisdiction is specifically and
unequivocally given, an arbitrator may not write an collective
bargaining agreement for the parties.
The Organizations argue that the arbitrators authority in
this case, arising from Article I, Section 4 of the New York
Dock Conditions, is limited. Section 4 requires "each railroad
contemplating a transaction which is subject to [the New York
Dock] conditions and may cause the dismissal or displacement
of any employees, or rearrangement of forces " to give advance
written notice thereof to the employees and their bargaining
agents which notice must "contain a full and adequate statement
of the proposed changes to be affected by such transaction, including an estimate of the number of employees of each class affected
by the intended changes." Before Carriers can consummate the
transaction, the parties are required to negotiate an "agreement
with respect to the application of the terms and conditions of
this appendix", (Appendix III to the Commission's Order in New
York Dock) and further providing "for the selection-.of forces
from all employees_involved on a basis accepted as appropriate
for application in the particular case." Thus, if the parties
cannot agree upon the employee protections contained in Appendix
III or the basis for the selection of work forces, the dispute
may be submitted to arbitration for adjustment. The limited nature
of an arbitrator's authority is further confirmed by Section 2 of
the New York Dock conditions. In Section 2, the Commission preserves
and continues the application of existing collective bargaining
agreements when it states:
"The rates of pay, rules, working conditions and
all collective bargaining and other rights, priveleges and benefits (including continuation of
pension rights and benefits) of the railroads
employees under applicable laws and/or existing
collective bargaining'agreements or otherwise
shall be preserved unless changed by future
collective bargaining or applicable statutes."
(Underscoring added)
When Section 4 is read in
conjunction with
Section 2,
the Organizations argue, "the limitation on an arbitrator's
authority is placed beyond serious argument."
The Organizations argue further that, in addition to the
preservation of existing agreements found under the provisions
of Section 2 of the New York Dock Conditions, Sections
2, Seventh and 6 of the Railway Labor Act prohibit the Carriers
from abolishing bargaining agreements; and that a collective
bargaining agreement subject to the provisions of the Railway
Labor Act cannot be revised except through the procedures of
a Section 6 Notice and the other mandatory provisions of the
Railway Labor Act. Since the
organizations have
not agreed to
any changes in the working agreements of-the employees they
represent or to make such changes an issue in this dispute, it
is contended that this arbitrator is not authorized to adopt
the Carriers proposal that the UTU-represented employees be placed
under the Wabash schedule agreement; rather, they contend, this
arbitrator is limited to imposing an Implementing Agreement that
provides the basic protections and a "fair and equitable method
for the selection of.forces to perform the work-involved._-
The Organizations further argue that neither judicial decisions,
ICC decisions, nor arbitration decisions support the Carriers'
argument that the Interstate Commerce Act gives the ICC the authority
to supersede collective bargaining agreements and change represen-
tation of railroad employees by its approval of a railroad
acquisition. The Organizations further argue that even if the
ICC had such authority as claimed by Carriers, it did not excercise such authority in this case.
With respect to the question of the method of consolidating
the seniority rosters, the Organizations take different positions.
The BLE
is opposed to dovetailing rosters on the basis
proposed by Carriers contending that such method is inequitable
and would do violence to the basic concept of seniority. The
BLE
urges that the seniority rosters for the craft of locomotive
engineers on the combined Carrier be consolidated by dovetailing
the
rosters
for
locomotive engineers on
the N & W and the IT
on the basis of entry into the craft of fireman and engine service
without penalizing senior employees presently furloughed by the
recession. The BLE opposes
the effort by Carriers to consolidate
the engineers' rosters by promotion dates after seperating the
engineers into so-called active and inactive categories. The
Carriers' proposal, BLE contends, creates.runarounds of senior
engineers by junior engineers, and penalizes senior employees on
furlough and those persons who may be on sick leave or in an inactive status through no choice of their own; and is further inequitable because it does not take into consideration the employee's
length of service with his orginal employer, thereby failing to
consider. his work contribution, disregards the different hiring
and promotion patterns and practices on the two Carriers, and
serves to benefit the employee working for an inefficient
Carrier that has not already made economies in operation as
compared with efforts to economize on the other Carrier. The
BLE further oppose the UTU proposal (suggesting that the
N & W and IT rosters be combined on the basis of a work equity
principal) asserting that the UIfU proposal "suffers from much
of the same criticism of the Carriers' proposal" in that it "overlooks the foundational premise of seniority integration-to first
look to the employees length of service with his original employer,"
and to the prior seniority rights of employees to service on their
former seniority district or territory. Additionally, the BLE
argues, that there is little if any data upon which to adequately
consider and apply an equity formula in this case. The BLE suggests
that any figures obtainable are "tainted"
and.cannot serve
as the
basis for
integrating seniority
rosters in a fair-and-equitable
manner. The exclusive engine hour formula proposed by UTU could
benefit the IT engineers and penalize N & W engineers because they
were employees of a more efficient Carrier; and that an equity
formula such as that proposed by UTU fails to take into account
various factors including number of employees, hours worked,
earnings, mileage,
car count and tons carried. Since there is
little uniformity of these factors between the two Carriers, the
formula suggested by the UTU must be "disregarded as impracticable
and inequitable, and other considerations must be used in
combining
the rosters."
The UTU takes the position that its "work equity" proposal
is the most equitable because it recognizes the increase in work
and job opportunities for--all employees contributed to the-combined
operation by IT employees. Since IT employees are comparatively
junior, the straight dovetailing by seniority date method would
result in the IT work being performed by N & W employees. The
UTU further argues that placing all presently furloughed
N & W and IT employees in a sefl crate furlough roster would
eliminate all future job opportunities for those employees even
though some of them may be senior to employees on the active
roster.
The UTU urges that the integration of rosters be made on
the basis of the existing 1972 St. Louis Terminal Agreement;
and that the difficulties in working out the terms of that
Agreement as allegedly experienced by the N & W could be obviated by renegotiating the terms of that Agreement. Otherwise,
the UTU argues, "to sanction implementation of such a [dovetailing] plan would not only violate the provisions of the
Railway Labor Act and NYD but could in no sense be considered the
'fair and equitable arrangement to protect the interests of the
railroad employees affected"'.
Findings and Conclusions
Issue No. 1
After careful examination of the relevant statutory provisions
and their legislative history, judicial and arbitral decisions,
and the ICC imposed Conditions, this Arbitrator is compelled to
conclude that he has no authority to terminate the IT Agreement
and place IT employees under the N & W (Wabash) Agreements.
The ICC, in its decision of June 22, 1981, stateds
"Our approval of NW's acquisition of IT must,
nonetheless be conditioned on NW's agreement
to provide 'a fair arrangement at least as
protective of the interests of employees who
are affected by the transaction' as the labor
protective provisions imposed in control
proceedings prior to February -5, 1976. 49USC
§ 11347. In New York Dock RY.-Control-Brooklyn
Eastern Dist. 360 ICC 60 (1979) (New York Dock
Aff'd Sub. Nom. New York Dock RY. v. United States,
609 F. 2D 83 (Second Cir. 1979), we described the
minimum protection to~be afforded employees under
that statute in the absence of a voluntarily negotiated agreement ...."
Article I, Section 4 of the New York Dock conditions
(Appendix III) provides in pertinent part:
"Each railroad contemplating a
transaction
which is subject to these
conditions and
may cause the dismissal or displacement of
anv employees, or rearrangement of forces,
shall give at least ninety (90) written
notice of such intended transaction...
such notice shall contain a full and
adequate statement of the proposed changes
to be affected by such transaction, including an estimate of the number of employees
of each class affected by the intended
changes. Prior to consummation the parties
shall negotiate in the following manner.
Within five (5) days from the date of receipt
of notice, at the request of either the railroad or reo_resentatives of such interested
employees, a place shall be selected to hold
negotiations for the purpose of reaching
agreement with respect to application of the
terms and conditions of this Appendix, and
these negotiations shall commence immediately
thereafter and continue for at least thrity
(30) days. Each transaction which may result
in a dismissal or displacement of employees
or rearrangement of forces, shall provide for
the selection of forces from all employees
involved on a basis accepted as appropriate .
for application in the particular case and
any assignment of employees made necessary
by the transaction shall be made on the
basis of an agreement or decision under this
Section 4 . ..." (Underscoring added)
Section 2 of Appendix III provides:
"The rates of pay, rules, working conditions
and all collective bargaining and other rights,
priveleges and benefits (including continuation
of
pension rights
and benefits) of the railroad's
employees under applicable laws and/or existing
collective bargaining agreements or otherwise
shall be preserved unless changed by future
collective bargaining agreements or applicable
statutes."
Underscoring added)
Title 4q USC 511347 of the Revised Interstate Commerce
Act (a recodification of Section 5 (2Xf) applicable at the
time the New York Dock matter was pending before the ICC),
provides:
"When a rail carrier is involved in a transaction
for which approval is sought under Sections 11344
and 11345 or Section 11346 of this title, the
Interstate Commerce Commission shall require the
carrier to provide a fair arrangement at least
as protective of the interests of employees who
are affected by the transaction as the terms
imposed under this Section before February 5,
1976, and the terms established under Section
565 of title 45. Notwithstanding this subtitle, the arrangement may be made by the
rail carrier and the authorized representative
of its employees. The arrangement and the
order approving the
transaction must
require
that the employees of the affected rail carrier
will not be in a worse position to their employment as a result of the
transaction during
the
4 years following the effective date of the final
action of the Commission (or if an employee was
employed for a lesser period of time by the
carrier before the action became effective, for
that lesser period)."
Prior to February 5, 1976, the Commission developed a
series of standard employee-protective conditions imposed by
the ICC in approving a transaction involving one or more railroads under Section 5 (2) of the Interstate Commerce Act.3 /
All of these job protection agreements were patterned after
Washington Job Protection Agreement of 1936 (WJPA.) Section 4
of the WJPA requires that employees be given 90 days' notice
of 'a coordination, and that such notice "shall contain a full and
adequate statement of the proposed changes to be effected by such
the
3 The~principal sets of conditions imposed by the ICC under former
Section 5(2)(f) in Stock Control cases were the "New Orleans
Conditions"
and the "Southern - Central of Geor ig a Conditions"
conditions, including an estimate of the number of employees of
each class affected by the intended changes." Section 5 of WJPA
states:
"Each plan of coordination which results in the
displacement of employees or rearrangement of
forces shall provide for the selection of forces
from the employees of all the carriers involved
on basis accepted as appropriate for application
in the particular case; and any
assignment of
employees made necessary by a coordination shall
be made on the basis of an agreement between
the carriers and the organizations of the employees
affected, parties hereto. In the event of failure
to agree, the dispute may be submitted by either
party for adjustment in accordance with Section
13."
The New York Dock
Conditions are
derived from the Washington
Job Protection Agreement, the New Orleans Conditions, and Appendix
C - 1. 4 / In formulating the New York Dock conditions, the ICC
selected the most favorable of the provisions contained in these
conditions. The New York Dock conditions included-a provision
not contained in the WJPA, and that was Section 2, quoted above.
Carriers argue-that this Arbitrator has the authority and the
duty to prescribe N & W's proposal, and that this Arbitrator's power
is not constrained in his authority to prescribe the terms of any
"rearrangement of forces." Since the Commissions authority is
exclusive and plenary under the provisions of Section 11341 of the
Interstate Commerce Act, the Arbitrator's authority is derived from,
and is an extension of, such exclusive and plenary authority .
Carriers argue,:that the Commission's order authorizing the purchase
4 Protective provisions promulgated by the Secretary of Labor
under the Rail Passenger Service Act of 1970.
and consolidation of IT by N & W and requiring arbitration of
disputes
involving the
"rearrangement of forces" supersedes any
other agreements or laws, including the Railway Labor Act. 5 /
Central to the position of the Carriers is the question
of whether the negotiation and arbitration provisions of employee
protection conditions in consolidation cases provide a mechanism
that supersedes Railway Labor Act requirements and permits
an Arbitrator to transfer work and employees despite any such
prohibitions contained in collective bargaining agreements
pursuant to the Railway Labor Act.
This Arbitrator is of the opinion that the question must
be answered in the negative.
An Arbitrator'~s authority under Article I, Section 4 of
New York Dock, where the parties are unable to reach agreement,
is limited to the determination of employee protections contained
in Appendix III, and to provide a basis for the selection of
work forces of the employees involved. Article I, Section 4
does not give an Arbitrator authority to alter rates of pay,
rules, working conditions, or any other collectively bargained
rights or benefits that are "preserved" under Section 2. It
follows that an Arbitrator is not empowered, without mutual
agreement of the parties, to substitute, modify or terminate
agreement-negotiated pursuant-to the provisions of the Railway
Labor Act. Carrier's contention that the
arbitration process
5 / Sections 2 Seventh, and 6 of the Railway Labor Act prohibit
a
Carrier from unilaterally abolishing or revising a bargaining
agreement.
(provided in Section 4) is an integral part of the collective
bargaining process, and as such, an agreement may be changed
(as provided in Section 2) either by negotiation by the parties
or by an arbitration award is, in this Arbitrator's view,
based on the erroneous premise that the ICC mandated involuntary
"interest arbitration" in contravention of the provisions of
the Railway Labor Act. No persuasive authority has been presented
that supports or warrants such a far-reaching result.
Contrary to the contention of Carriers, the ICC.in Southern
Railway Company-Control-Central of Georgia Railway Company (Finance
Docket No. 21400, 331 ICC 151) does not, in the opinion of this
Arbitrator, support the position of Carriers.
A reading of the ICC decision in Central of Georgia warrants
the finding that the ICC, notwithstanding its plenary and
exclusive jurisdiction in these matters, recognizes the need to
preserve the rights of employees under their collective bargaining
agreements; and that those rights may not be abrogated by arbitral
fiat.
At page 169, the Commission states:
"[T]he rights of railroad employees under their
collective bargaining agreements, under the Washington Agreement and under the protective conditions
imposed upon the Carriers under Section 5 (2)(f)
are independent, seperate, and distinct rights.
We have historically recognized the independent
nature of those rights and have distinguished the
employee rights derived from collective bargaining
agreements from those derived from conditions which
we have imposed upon carriers. The rights under
the former are based upon private contracts;
those under the latter stem from our statutory
duty to protect employees."
The Commission goes on to state, at page 170:
"Of equal importance, this contention of
applicants is demonstrably erroneous. By
its terms, Section 5 (11) applies only to
antitrust and other restraints of law from
carrying 'into effect the transaction so
approved***'. Neither the Washington
Agreement nor the specific collective
bargaining agreements between these roads
and their employees is such a restraint,
for indeed Section 5 transactions have been
successfully consummated in full compliance
with such terms.
The designated 'exclusive and plenary power'
of the Commission in Section 5 (11) cannot
be so broadly construed as to brush aside
all laws - be they statutorily created antitrust laws or voluntary contractual agreements
made binding by the force of law." (Underscoring
added) .
In further support of this Arbitrator's holding that
Carriers are in error when they contend that the ICUs exclusive and plenary
authorization of
the purchase and acquisition
of IT by N & W supersedes any other agreements or the Railway
Labor Act, and, by extension, that "an arbitrator has the
authority, under the necessary, 'superseding' authority of
Section 4 of New York Dock, to alter collective bargaining
agreements in order to achieve an effective
consolidation,"
Referee Bernstein in American Railway Supervisors Association
et al vs.-Southern Railway System (Docket No. 141) stated the
following relative to the WJPA (from which New York Dock
conditions are derived) and the Railway Labor Act:
"Section 5(2)(f), enacted in 1940, directs the
Interstate Commerce
Commission
to impose
conditions for the protection of employees in
merger and other cases.
In
intent and practice
those conditions are much like those of the
Washington Agreement. The labor organizations
declared at the hearings on the measure that
they sought to achieve similar employee protections
on railroads which then did not subscribe to the
Washington Agreement
. Other provisions of the
1940 Act relieved the carriers of the threat
of mandatory mergers hanging over their heads
from earlier Transportation Acts. In the
period preceding enactment in 1940 there was no
recalcitrance by railroad labor organizations
which arguably required any limitation upon
their rules agreements and the job ownership
they often were taken to imply; no one contended
that the Washington Agreement was inadequate to its
tasks. Nothing in the legislative history of
Sections 5(2)(f) or 5(11) was presented which even
remotely shows an intention by Congress, or anyone
else, to abrogate the rules arrangements,
including
their merger-barring effect and the
Washington
Agreement's machinery for overcoming them. Indeed,
as noted below, the legislation specifically
recognizes the desirability and validity of such
private arrangements.
Quite clearly Section 5 (11) operates to relieve
carriers involved in a merger approved by the ICC
of any requirement for State agency approval, the
antitrust laws and other Federal, State or municipal
law. Although the claim is made that this section
reaches so far as to overcome provisions of the
Railway Labor Act as applied to the
Washington
Agreement, the context and pattern of the section
suggest otherwise. All of the references are
to corporate, antitrust and State and local reg
ulatory laws - there is no hint that labor-manage
ment relations are involved.. Nothing-in the legis
lative history was brought forward to suggest that
a wholesale change
in
the procedures of the Railway
Labor Act for modifying rules agreements-- assuredly
a fundamental and important change - was intended.
Any such endeavor would have meant a major legis
lative battle on the point; but
no
such thing
occurred. It staggers the imagination that so
radical a change was in fact meant and made with
out anyone noticing at the time. Nor was
such an effect necessary as to mergers because
the
Washington Agreement
provided the mechanism
to accomplish them.
The interplay of the Washington-Agreement and the
Railway Labor Act must be understood. The Agreement
was designed to facilitate mergers, consolidations,
and the like but on stated conditions (notice,
implementing agreement, benefits to those adversely
affected). The Railway Labor Act prevents either
carriers or
unions from
making unilateral changes
in those agreed provisions;- the Agreement also
has limits upon the'termination of is applicability.
Hence when a merger etc. is undertaken before
the required steps to end the Agreement are
taken this Agreement binds the union to permit
the job combinations required by the merger
and requires the carriers involved to follow
its procedures and accord its benefits. The
recognition given the Washington Agreement
in the last sentence of Section 5(2)(f) indicates that Congress regarded such a private
contractural arrangement as harmonious with
the ICC power to imposed employee protective
conditions. That provision should be read
with Section 5(11). The recognition and
encouragement thereby accorded the Agreement
argues that it is not overridden by Section
5(2)(f) nor is the protection accorded to
the Agreement by Section 6 of the Railway
Labor Act vitiated."
The Arbitrator has reviewed the awards cited and relied
upon by Carriers and, with all due respect for their authors,
disagrees with their conclusions.
None of the awards contains any rationale or analysis
that would form any justifiable basis for the result reached.
These awards are not only not instructive but cannot be considered
to have any precedential value. See: Conrail & Detroit Terminal
Company & RYA (August 13, 1981); Chesapeake & Ohio Railway
& BLE/UTU (May 12, 1980); and New York Dock Railway & Brooklyn
Eastern District Terminal & BLE (December 15, 1980.)
The Aribtrator has also reviewed the judicial decisions
cited by Carriers, and has found them to be either irrelevant
or unpersuasive as to the matters involved in this dispute.
None of the cases cited deals directly with the nature and extent
of an Arbitrator's authority to alter or invalidate negotiated
bargaining agreements under the circumstances presented.
Issue No. 2
With respect to the question of the method of consolidating
the seniority rosters for the craft of locomotive engineers on
the combined Carrier, the Arbitrator finds that dovetailing is
fair, equitable and workable; and should be consolidated on the
basis of the date of entry into the craft of firemen and engine
service without penalizing any employees presently furloughed.
Initially, Carriers proposed to dovetail by seniority
date the active engineers of each road, and thereafter dovetailing
the furloughed engineers below the roster of active engineers.
Carriers rejected the BLE contention that dovetailing be effected
on the basis of entry dates as firemen or engine service, and
also rejected BLE's further contention that Carriers' two-tiered
(active and inactive rosters) created a situation where senior
employees were penalized through no fault of their own.
At the hearing, there were indications by the Carriers'
representatives that the BLE proposal was acceptable. In their
post-hearing submission, Carrier expressly agreed, stating:
"The Brotherhood of Locomotive Engineers (BLE)
appears to accept the Carriers' proposal to
dovetail NW and IT seniority rosters, provided
that entry of service dates rather than seniority
dates are used and that limitations are placed
upon the ability of former IT
engineers to
work
in certain areas. In addition, BLE accepts
some unification-of-schedule. agreements.-At the
November 11 hearing, the Carriers stated that
they had no objection to the BLE suggestion
that dovetailing should be on the basis of entry
dates and should not differentiate between active
and inactive employees. This remains the position
of the Carriers."
The Arbitrator is satisfied, considering all of the
circumstances, that the "work equity" proposal of the UTU
is not as equitable over-all as the method proposed by BLE
and agreed to'by the Carriers.
Based on the foregoing, the Arbitrator renders the
following:
AWARD
1. The Arbitrator is not empowered, without
specific authority and mutual agreement by
the parties, to substitute, modify or abrogate
a collective
bargaining agreement
(or any
provisions thereof.) There is, therefore, no
jurisdiction to terminate the IT Agreement
and place IT employees under the N & W
(Wabash) Agreements.
2. The parties are directed and ordered to
consolidate the seniority rosters for the
craft.of locomotive engineers on the combined
Carrier on the basis of date of entry into
the craft of firemen and engine service with
out differentiating between active and
furloughed employees; and the parties
should execute any agreement necessary -to carry
out the direction and order of this paragraph
of the Award.
N,ACHOLAS H. ZUMA'S, /ARBITRATOR
Date. /~
~~f / ~ /?