NE. 'ORK DOCK
ARBITRATION
In the Matter of Arbitration Between
BROTHERHOOD OF RAILWAY AND AIRLINE CLERKS
And
SOUTHERN FREIGHT TARIFF BUREAU
QUESTION AT ISSUE:
FINDINGS AND AWARD
"Were the claimants [Z.H. Williams, G.N. Christopher, J.W.
Whitaker, J.L. Alexander, M.D. Perry, R.J. Smith, D.B. Hollis,
B.J. Harper, T.M. Gann, P.M. George, D.H. Leslie, D.B. Barden,
D.R. Walker, R.Y. Mitchell, C. M. Smithwick, W.T. Gasaway,
R. W. King, J.E. Tate, T. G. Wade, T.D. Spratlin, J.D. Cook,
J.S. Cochran, and R. K. Hughes], or any of them, adversely
affected as a direct result of changes to antitrust immunity
for collective ratemaking effected by Section 219 of the
Staggers Rail Act of 1980?"
BACKGROUND
By letter dated March 14, 1983, the parties to this dispute
jointly informed the National Mediation Board (NMB) of their
desire to provide for arbitration of the above Question at
Issue through establishment of an arbitration committee under
Article I, Section 11 of the New York Dock conditions (New
York Dock Ry.--Control--Brooklyn Eastern Dist., 360 I.C.C.
60 [1979]). The Brotherhood of Railway and .4irline Clerks
(Brotherhood) advised it had selected as their member of the
arbitration committee, Mr. E. J. Neal, International Vice
President of the Brotherhood. The Southern Freight Tariff
Bureau (SFTB) initially advised it had selected as its member
of the arbitration committee, Mr. T. C. Sheller, Senior Vice
President-Labor Relations, Norfolk Southern Corporation.
However, by letter dated May 16, 1983, it named Mr. R.S.
Spenski, Assistant Vice President-Labor Relations, Southern
Railway Company, in place of Mr. Sheller. In its letter the
Brotherhood and SFTB members of the arbitration committee
advised the NMB they had agreed on the nomination of Mr. R. E.
Peterson of Briarcliff Manor, N.Y., as the neutral member of
the arbitration committee, and requested the NMB so designate
Mr. Peterson to sit with the arbitration committee to resolve
the dispute. The NMB complied with the request of the parties,
advising all concerned by letter dated March 29, 1983.
Hearings before the arbitration committee were held in
Washington, DC on May 17, 1983, with the parties being ably
represented by appearances of the following named persons:
BROTHERHOOD:
Ernest W. DuBester, Esq., HIGHSAW & MAHONEY, P.C.
T.P. Stafford, Vice President
M. R. Magnuson, Director Rules
H.F. Hignite, Employee, SFTB
SFTB:
Jeffrey S. Berlin, Esq.
Terrence J. McCartin, Esq.
VERNER, LIIPFERT, BERNHARD & McPHERSON, CHARTERED
Marcellus C. Kirchner, Norfolk Southern Corp.
H.L. Lassetter, Asst. Manager
Prior to the hearing the parties exchanged briefs or submissions in support of their respective positions on the
Question at Issue, At the hearing they introduced additional
documentation and participated in a lengthy exchange of oral
arguments and the
examination of
witnesses. Following the
hearing each party submitted a post-hearing brief to the arbitration committee.
The question we have here calls for a determination as to
whether the Claimants, or any of them, were adversely affected
as a direct result of changes. to antitrust immunity for collective
ratemaking as concerns trailer-on-flatcar (TOFC) and containeron flatcar (COFC) service effected by section 219 of the Staggers
Rail Act of 1980 [Public Law 96-488; 14 Stat. 1895] when the
Southern Freight Tariff Bureau (SFTB) abolished three employee
positions, and, if adversely affected, thereby entitled to the
protective conditions of section 219(g) of that statute.
Section 219(g) of the Staggers Rail Act, in pertinent
part, reads as follows:
"The Interstate Commerce Commission shall require
rail carrier members of a rate bureau to provide
the employees of such rate bureau who are affected
by the amendments made by the section with fair
arrangements no less protective of the interests
of such employees than those established pursuant
to Section 11347 of Title 49, United States Code."
On August 8, 1979, the Interstate Commerce Commission
(ICC or Commission) issued an "Advance Notice of Proposed
Rules" in consideration of the institution of a rulemaking
proceeding which would, amongst other things, exempt from
regulation (under 49 USC 10505) rail transportation of
TOFC/COFC
shipments, either in whole or in part. The purpose
of the proceeding was to determine what the commission could
do, through modification of its regulations governing
TOFC/COFC
service, to improve the intermodal relationship between rail and
motor transportation and to increase the amount of
TOFC/COFC
traffic as related to the conservation of energy, enhancement
of the environment, and more efficient use of transportation
resources.
In its Advance Notice, the Commission took note that Section
207 of the Railroad Revitalization and Regulatory Reform Act
of 1976 (Public Law 94-210, 90 Stat. 31) amended former section
12(1). (now 49 USC 10505) of the Interstate Commerce Act by
adding a new subdivision (b) which permitted the Commission,
upon petition or on its own initiative, to exempt from regulation
any person, class of person, services, or transactions relating
to transportation by railroad if because of its limited scope,
the Commission found that regulation is not necessary to
effectuate the national transportation policy; regulation
would be an undue burden on the persons or class of persons
involved, etc. The Commission also expressed the belief that
it might be possible to encourage greater use of
TOFC/COFC
service by motor carriers by revising rate regulation to
complement or substitute for other ideas suggested in its
Notice, principally, providing the contract motor carriers
with all the flexibility they need to make effective use of
substituted service.
The Commission provided that comments must be filed concerning its Advance Notice of Proposed Rules by October 22, 1979.
Thereafter, on November 19, 1980, the Commission issued a
"Notice of Proposed Rule (Exemption)" in further regard to its
proposal to exempt rail and truck service provided by rail
carrier in connection with
TOFC/COFC
service from Title 49. In
this Notice the Commission stated its proposed exemption was
also based on a finding that regulation is not necessary to
carry out the transportation policy of 49 U.S.C. 10101(a) or to
protect shippers from the abuse of market power by railroads.
The effective date of the Proposed Rule (Exemption) was announced
to be January 27, 1981, with comments due December 29, 1980.
In the above-mentioned November 19, 1980 Notice, the
Commission made reference to the fact that since publication
of its Initial Notice (August 8, 1979), Congress had enacted
the Motor Carrier Act of 1980 and the Staggers Rail Act of
1980. The Commission stated that the new laws have profoundly
affected the content, direction, and procedure of its TOFC/COFC
proceeding and that the Commission's authority related to
transportation provided by railroads had been strengthened
and clarified by such legislation. The Commission also made
particular mention of the fact that the Staggers Rail Act
"authorizes exemption of service provided by carriers in all
instances where regulation is not needed to prevent abuses of
market power" and that the statute had singled out TOFC/COFC
service as a candidate for exemption, noting, "Section 10505(f)
provides, 'the Commission may exercise its authority under this
section to exempt transportation that is provided by a rail
carrier as a part of a continuous intermodal movement.'" The
Commission then next stated: "We believe that a total exemption
for this traffic is appropriate based on the standards of 49
U.S.C. Code 10505."
Among background comments expressed in its Notice, the
Commission said:
"Numerous participants support our views and have
pointed out how regulatory barriers impede the
growth of TOFC/COFC service. DuPont welcomes the
exemption as an opportunity to negotiate for price
and service options which meet its particular needs.
It looks forward to the end of complex and inflexible
rate structures and service plans. DuPont recognizes
that regulation of the competitive service is serving
no useful purpose."
Commenting upon certain of the railroads' expressed intentions, particularly that related to publishing identical singlefactor, joint through rates over competing routes, the Commission said that such action "would completely negate the intended
benefits of the exemption." The Commission then went on to state:
"Railroads and users of TOFC/COFC services have
defined their relationships in certain ways because
of the existence of antitrust immunity. The fact
that certain users or sellers may have to conduct
their businesses somewhat differently is not a good
reason to continue antitrust immunity for TOFC/COFC
service."
On February 19, 1981, the Commission issued its "Notice
of Final Rule (Exemption)" exempting rail and truck service
provided by rail carriers in connection with TOFC/COFC service.
Incorporated into the Final Notice, amongst other statements,
was the following:
"We recognize the limitations on our predictive
powers. Our favorable experience with exemption
of fresh fruits and vegetables -- although not identical to the issues presented here -- encourages our
continued employment of the exemption power. We
believe that exemption of TOFC/COFC service will
benefit the shipping public. We nonetheless stand
ready to monitor the effects of the exemption to
assure that continued regulation is not needed. We
believe that such after-the-fact evaluation is what
Congress intended. See H.R. Rep. No. 96-1430 [96th
Cong. 2d Sess.]."
The Commission also stated that it was confident, notwithstanding troublesome questions which had been voiced by shippers
and others, "that rail managements will respond enthusiastically
when relived from existing regulatory constraints."
In regard to the effective date of the exemption, the Commission stated:
"There is general concern that the SO days which
have elapsed since the effective date of the ex
emption was announced is not sufficient time to
prepare for the exemption. We seriously question
if this is the case. 'Carriers have the option of
continuing their present rates an practices until
they are replaced by new arrangements negotiated
under the exemption. The tra uld not
be that if icu t...Nevertheless, to remove any doubt
about APA [Administrative Procedure Act, U.S.C.
Sec. 553] procedural claims and to give some
commenters including the FMC [Federal Maritime
Commission] additional time to adjust to the
exemption we are postponing the effective date
of the rules until March 23, 1981." (Underscoring
Ad e
In a separate concurring expression, one ICC Commissioner
stated that although he was not satisfied that the Commission's
decision fully clarified the scope of the exemption or was
otherwise totally responsive to concerns raised by all parties,
-he gave the decision his unqualified support "because of the
fact that Congress intended that we pursue partial and complete
exemptions from remaining regulations consistent with the
policies of the Staggers Act (and that] revocation procedures
contained in the first exem Lion rovision are retained in the
Staggers Act and in my view are strengthened by Congressiona
intent that we adopt a policy of reviewing carrier actions
after the fact." (Underscoring Added)
On the day that the Commission's "postponed" deregulation
became effective, namely, March 23, 1981, the SFTB issued
Information Bulletin No. 303, announcing the abolishment,
effective April 1, 1981, of three positions, i.e., Assistant
Executive Clerk and two positions of Rate Clerk. Claimants
Gasaway and Williams were incumbents of the latter two positions
of Rate Clerk. The third position was occupied by Mr. J. Pierce.
The incumbents were advised that they may exercise their seniority rights in accordance with the existing collectively bargained.
working agreement.
The following day, March 24, 1981, the Brotherhood dispatched a mailgram to the SFTB. In pertinent part, this mailgram read:
"Please be advised that in accordance with the
Harley Staggers Act and the labor protective
condition named therein, you are required to give
not less than sixty (60) days notice to this Organization when employment is affected account deregulation.
"Therefore, we demand that the abolishment notices
for the above named employees be canceled and that
appropriate notice be given this Organization; and,
further, that negotiations begin immediately for the
purpose of providing appropriate labor protective
conditions for the affected employees."
The SFTB response to the above mailgram was by letter
dated March 25, 1981, the SFTB's Tariff Publishing officer advising the Brotherhood as follows:
"By letter of March 20, 1981, I advised you that
employees of Southern Freight Tariff Bureau are
not affected by amendments made pursuant to Section
219 of the Staggers Act. Notwithstanding, I will
give careful consideration to the contentions set
forth in your Mailgram and get back to you at an
early date."
Thereafter, by letter dated April 1, 1981, the SFTB's
Tariff Publishing officer again wrote the Brotherhood. In
pertinent part he stated:
"Our Bureau is not a rate bureau that establishes
or has final determination of rates. Therefore,
we are not affected by Section 219 of the Act.
"Your allegation that the three employees affected
by our position abolishments are subject to the
protective conditions of the Staggers Act is not
supported by the provisions of the Act as they are
not employees engaged in the business of making
rates. As your contentions are not supported
by
the amendments made pursuant to Section 219 of the
Staggers Act, we cannot agree that our actions
relative to the three positions at issue are improper.
Accordingly, we are not required to negotiate protective conditions for employees not covered
by
the
law."
In connection with seniority displacements as exercised by
Messrs. Pierce, Gasaway and Williams, the SFTB's Office Manager
posted Bulletins listing assignments made as a result of the
job abolishments as they pertained to the Claimants (Bulletin
Nos. 6867, 6868, 6869, 6870 and 6871).
In response to the claim of record which the Brotherhood
thereafter submitted to SFTB'S Assistant Tariff Publishing
Officer under date of may 27, 1981, the SFTB replied, on June
3, 1981, in pertinent part as follows:
"I am unable to determine any rules violation of the
current working agreement and none was cited in
your statement. Conversely, the abolishments of
the three positions and resultant exercise of
seniority rights by employees affected were accomplished in strict compliance with the provisions
of Rules 13 and 5(b) of the Working Agreement.
"I assume your allegation as to violation of 'the
protective conditions mandated by the Interstate
Commerce Commission known as the New York Dock III
Condition' refers to Section 219 of the Staggers
Rail Act of 1980 dealing with 'Rate Bureaus.'
Southern Freight Tariff Bureau is not a rate bureau
that establishes or has final determination of rates,
and its employees do not come within the purview of
the provisions of that Act. Your allegation that the
employees affected by the position abolishments
should be compensated as set forth in the 'New York
Dock Condition' is not supported by the provisions
of the Staggers Rail Act as they are not employees
engaged in the business of making rates. As your
contentions are not supported by the amendments
made pursuant to Section 219 of the Staggers Rail
Act, I cannot agree that our actions relative to
the abolishment of three positions no longer needed,
with attendant displacement by exercise of seniority
rights, were improper. In this connection, you should
be aware that the abolishment of the three positions
at issue were the direct result of the Interstate
Commerce Commission's decision in Ex Parte No. 230
(Sub. No. 5) - Improvement of TOFC/COFC Regulation -
exempting from regulation rail and truck service
(including the publishing and filing of freight
rates schedules) provided by rail carriers in connection with TOFC/COFC service under Title 49, Subchapter IV of the U.S. Code. This proceeding preceded by several months any action that could be
taken as result of the Staggers Rail Act.
"Finally, your allegation that named employees were
'forced to assume a position which paid (stated
amounts) less than the position he held at the time
of the transaction' is a stark misstatement of fact.
The employees affected exercised seniority rights
on positions of their choice held by junior employees
and in several instances could have obtained positions
of equal or greater monetary compensation. For example, Z.H. Williams could have exercised seniority
rights on any one of several positions with equal or
greater compensation ranging bo an increase of as
much as $179.80 per month.
"All matters carefully considered, your claim is
denied."
By letter dated June 8, 1981, the Brotherhood appealed the
decision of the Assistant Tariff Publishing Officer, stating
in pertinent part the following:
"[T]he term 'rate bureau' as mentioned in the Staggers
Act of 1980, was not intended to be taken literally,
but intended to incorporate all employees of a rate
type bureau who deal with the rate making process.
The employees of your bureau do deal with the rate
making process in that the tariffs that are produced
and which they work with, contain rates. Further, we
cannot agree that the tariff deregulation was not
covered by the Staggers Act. The Staggers Act was
intended to cover these, and other, deregulations.
"Mr. Lasseter also states that we have misrepresented
the facts. I cannot agree with the position he has
taken in that the employees were forced to assume
different positions as a result of the transaction.
His statement is nothing more than self-serving as
there is no proof in the deregulation."
denying the-appeal, the Tariff Publishing officer, on
1981, advised the Brotherhood:
"First, nothing in the collective bargaining agreement forbids abolishments of positions. This fact
was acknowledged by you in conference. Second,
your claims are factually incorrect as the job
abolishments were not a result of the so-called
Staggers Act. Rather, they were the result of an
ICC decision that preceded the Staggers Act by
several months. Third, the claimants through
their own choosing displaced on positions paying
less than their clerical rate when they could have
acquired positions of equal or higher rates. Last
but not least, your claim of any violation of the
Staggers Act is not properly progressed as the
Staggers Act is not a collective bargaining agreement between the parties and thus not a dispute
properly handled via the collective bargaining
grievance procedure."
In
July 20,
The Brotherhood meantime, under date of July 14, 1981, filed
a complaint and request for declaratory relief with the ICC,
alleging that the SFTB failed to comply with the employee protection provisions of section 219(g) of the Staggers Act when
it abolished the three positions. Specifically, the Brotherhood expressed a desire that the Commission order SFTB to
enter into negotiations for an implementing agreement as provided by New York Dock Ry.--Control--Brooklyn Eastern Dist.,
360 I. C. C. 60 (1979), and imposed upon all rate bureaus in
Western Railroads--Agreement, 364 I.C.C. 782 (1981).
In its decision, decided July 14, 1982, (BRAC v SFTB,
366 I.C.C. 390), the Commission held that employees of SFTB
are employees of a rate bureau and are, therefore, entitled
to the employee protective conditions contained in New York
Dock if they can show that they are being adversely affected
b the amendments to 49 U.S.C. 10706 made b section 219 of
t e Sta ers Act. The Commission noted that Section 219
was esigne to protect employees who might be a verse p
affected as a result of the Staggers Act narrow in of antitrust
immunity. In this latter regard, the Commission specifics ly
"Section 219 of the Staggers Act narrowed or
restricted the antitrust immunity previously
enjoyed by rate bureaus and their members for their
collective ratemaking activities. Section 219(9)
was designed to protect employees who might be adversely affected as a result of this narrowing of
antitrust immunity."
The Commission also took note that in its complaint to the
Commission, the Brotherhood had alleged that "as a result of
the deregulation of TOFC/COFC service, numerous employees were
effected." The Commission also noted for the record it was
SFTB's contention that to invoke section 219(9) that the Brotherhood "must show that any adverse effects on [the employees] were
directly caused by the changes to antitrust immunity for collective
ratemaking effected by section 219" and that it was SFTB's further
contention that the Brotherhood had failed to demonstrate "any
causal relationship because the three jobs were abolished as a
direct result of the Commission's TOFC/COFC decision and not as
a result of the narrowing of antitrust immunity by section 219."
Thereafter, the Commission expressed the conclusion "that
SFTB employees are of a rate bureau for purposes of section
219(9) of the Staggers Act and that if they are affected by the
recent changes made by section 219, such employees are entitled
to the employee protective conditions-imposed in New York Dock."
As to the question of whether certain employees have been
affected by actions taken under 219, the Commission said it
believed this specific issue should be resolved by arbitration,
noting "the statute limits protection to recent chap es made b
section 219, an that the dispute re uires a determination
of whether the adverse effects to the emp ogees were directly
causd ~tng y changes to antitrust immunit for collective rate
makefected
by
section 219." Underscoring Added)
CONTENTIONS OF THE PARTIES:
.Basically, here, as before the ICC, it remains the position
of the SFTB that section 219(9) of the Staggers Act has no
-application to the job abolishments, the SFTB maintaining they
resulted from a deregulation action taken by the Commission in
an administrative proceeding having no relationship to section
219 of the Staggers Act. The SFTB likewise continues to urge
that to invoke section 219 (g) that the employees (the Brotherhood) must show that any adverse effects on them were directly
caused by the changes to ahtitrust immunity for collective
ratemaking effected by section 219. It submits that the Brotherhood has failed to demonstrate any causal relationship because
the three jobs were abolished as a direct result of the Commission's TOFC/COFC decision and not as a result of the narrowing
of antitrust immunity by section 219. It states that after
the TOFC/COFC decision was announced, the SFTB evaluated its
reduced needs and decided to abolish three positions because
the number of TOFC/COFC tariffs would be reduced by reason of
the Commission's action.
In support of its position, SFTB submits that the workload
of "two desks" (six employees) responsible for the compilation
of TOFC/COFC tariffs decreased by approximately fifty percent
as the direct result of the Commission's deregulation of TOFC/COFC
service, and not as a direct or indirect result of the narrowing
of the antitrust exemption accomplished by section 219 of the
Staggers Rail Act. It argues that while rate bureau employees
who come under the protection of section 219 (g) are entitled
to New York Dock conditions, that in the particular circumstances of the three job abolishments the affected employees
(Claimants) were not adversely affected by a "transaction" as
defined under New York Dock, i.e., "any action taken pursuant
to authorization of (the] Commission on which these [New York
Dock] provisions have been imposed." SFTB thus maintains,
that in the context of section 219 (g) the Commission has interpreted this definition as requiring that the protective
conditions
be imposed only where "the adverse effects to the employees were
directly caused by changes in antitrust imunity for collective
ratemaking effected by Section 219."
In essence, the SFTB submits that the TOFC/COFC exemption
proceeding was initiated and completed under the Commission's
authority conferred by section 207 of the 4R Act, as amended
and reinforced in section 213 of the Staggers Rail Act; an
action completely unrelated to the restriction of antitrust
immunity imposed by section 219 of the Staggers Rail Act with
regard to the collective ratemaking activity of rate bureaus.
The Brotherhood vigorously
maintains that
the SFTB misconceives the nature and effects of the Commission's use of
its exemption authority under section 10505 of the Act and
-totally misconstrues the Congressional
intent underlying
section 219(g). It urges that fundamental to this dispute is
recognition that the Staggers Rail Act added a new "rail
transportation policy (by) substituting this rail policy
as the new standard to which collective ratemaking agreements must conform; that the "new rail transportation
policy contained in §10101(a) gives the Commission a legislative mandate to promote effective competition, to deregulate the rail transportation system, and to require independent
action by individual carriers."
The Brotherhood states it recognizes "an inherent conflict...
exists between exemptions granted under §10505 and antitrust
immunity under §10706 [and that] the Commission has necessarily
determined that the removal of antitrust immunity under §10706
is the quid Pro quo of deregulation, such as that of TOFC/COFC
service, through the exemption process under §10505." It
maintains that indicative of the interplay between the "§10505
exemption authority" and "§10706 antitrust immunity" is the
manner in which the ICUs authority to grant exemptions was
"expanded" by the Staggers Act.
The Brotherhood submits that under the former revised
ICC Act, in order for the Commission to exempt a transaction
or type of service, it was necessary to show that the trans
action was of limited scope and that regulation was not
necessary to carry out the national transportation policy,
was an unreasonable burden, and would serve little or no
public purpose, whereas the Staggers Act "expanded the commis
sion's authority to exempt rail carrier transportation under
§10505 upon a showing that regulation 'is not needed to protect
shippers from the abuse of market power."' Further, that "by
placing an affirmative duty on the Commission to pursue exemp
tions from remaining regulation so as to 'eventually reduce its
exercise of authority to instances where regulation is necessary
to protect against abuses of market power...', Congress under
stood and intended that coincident with increased use of the
exemption authority under §10505 would be the narrowing or
elimination of antitrust immunity under §10706 to ensure that
the antitrust laws would be available for use." The Brother
hood contends that its view is reinforced by "the consistent
thread throughout all of the Commission's exemption decisions
that the narrowing or elimination of antitrust immunity under
§10706 (as amended by Section 219) is concomitant to the exer
cise of the exemption authority under §10505." It points most
specifically to ExParte No. 346 (Sub. No. 8), Exemlotion-Regula-
tion-Boxcar Traffic (May 2, 1983) as a Commissi~ecision
direct y on
point
with the Brotherhood's arguments.
As concerns the SFTB's argument that the Commission had
begun to exercise its exemption authority pre-Staggers and
that the affected employees are thereby not affected by what
it terms the post-Staggers deregulation of
TOFC/COFC
service,
the Brotherhood avers that to do so "completely overlooks
Congress' understanding of the relationship between §10505
and §10706 and the Congressional intent in modifying §10706
to include the protections of Section 219(g)."
DISCUSSION AND FINDINGS:
This arbitration committee has thoroughly studied the
well-documented and presented hearing briefs of the parties
as well as testimony and arguments offered orally at the
arbitration hearing. Careful examination has also been
accorded the numerous exhibits submitted by the parties,
excluding, of course, those exhibits which were declared
inadmissible at the arbitration hearing.
We will first give consideration to the arguments of
the parties with respect to the Commission's authority. In
this connection, we think it is clear, as the Commission
especially recognized in ExParte No. 346, that although
Congress left in place much of the Commission's regulatory
mechanism when it enacted the Staggers Rail Act, that Act
"sig-' nif cantly limited the Commission's regulatory powers,"
or, as also sometimes expressed, expanded by section 219
amendments the Commission's authority for deregulation of
services. In this regard, we believe the conclusion is
supported by comments enunciated in the Commission's TOFC/
COFC decision, as well as in other ICC decisions cited to
this arbitration committee, that the commission was of the
opinion or belief it was not beyond full utilization of
existing authority to take self-initiated administrative
action specifically embracing 'deregulation of
TOFC/COFC
service absent the expanded amendments or authority.
It is evident from the record, as-the Commission itself
has indicated, that while exemptions previously required
findings that a given regulation was unduly burdensome and
served no useful purpose, the Staggers Rail Act eliminated
the test of burdensomeness, and instead required that ex
emptions be granted whenever it was determined continued
regulation was unnecessary. In effect, deregulation was
hastened by elimination of certain existing procedures and
practices which required exhaustion of various notices,
hearings, etc., with the Commission being given the authority
to exempt a service in all instances where regulation is not
needed to prevent abuses of market power. In this regard,
we note the Commission, in ExParte No. 346, stated:
"Subsequent the Sta~gers Act, the Commission
instituted oNe r procedures to add elements of
market response to the existing system. Today's
ecision represents another step in the direction
of substituting market forces for regulation...
consistent with CongressionHirectives."
(Underscoring Added)
A review of the record also shows that in citing
TOFC/COFC
service as a possible candidate for immunity exemption, the
Staggers Rail Act did not mandate that the Commission exercise
deregulation authority subject to its added or amended authority.
Essentially, the Act stipulated only that the Commission "may"
take action pursuant to its new authority.
We think the contingency wording of this provision of the
Act evidenced an awareness of the Commission's then existing
authority and the action which it had already initiated with
respect to
TOFC/COFC
service. In other words, it would appear
that the Commission had the alternative of completing its action
with respect to
TOFC/COFC
deregulation in continued pursuit of
authority previously conferred upon it by past amendments to
the ICC Act and/or in pursuance of the Staggers Rail Act.
This arbitration committee also believes, in absence of
a clear statement by the Commission holding that the protective
conditions of section 219(g) were specifically applicable to its
TOFC/COFC
decision, that a presumption must be made that by not
giving significance to section 219 (g) the Commission was apparent
ly of the belief that protective obligations were only to be
imposed in connection with job abolishments found to be the
direct result of the Staggers-Rail Act amendments. We say this
in recognition of the language the Commission used in explicit
contemplation of abritration proceedings and its stated awareness, at least in part, concerning the-basic positions of the
parties as to whether protective conditions were imposed by
reason of TOFC/COFC deregulation. Basically, the Commission
limited the grounds for controversy, maintaining that resolution of the dispute required establishment of a determination
that the job abolishments were "directly caused" by changes
to antitrust immunity as related to enactment of section 219.
It must therefore be assumed that if the job abolishments were
not related to other than a change in regulation of
TOFC/COFC
services that the protective conditions of section 219 (g) were
not to be declared applicable to the dispute at issue.
We therefore, believe it quite reasonable to conclude from
both our reading of the Staggers Rail Act and statements by the
Commission, that while protective conditions may flow to actions
which the Commission would take in the future with regard to
deregulation or antitrust immunity made in pursuance of the
staggers Rail Act, in the instant case, since it had taken
administrative action pursuant to other existing authority,
the protective features of section 219 (g) did not attach to
the Commission's TOFC/COFC decision.
We next turn to consideration of the reasons advanced by
the parties to this dispute as to why the three positions at
issue were in fact abolished by the SFTB to determine if such _
action was directly related to enactment of the Staggers Rail
Act. In this connection, the arbitration committee has given
extensive study to arguments, testimony and exhibits regarding
job functions involved with the compiling and publishing of
tariff documents, especially those known as disposition advices,
disposition notices, and independent publication instructions;
changes or fluctuations in the number of tariff pages published
by the bureau; time required for the preparation of the various
types.of data for which the tariff bureau is responsible; etc.
Our review of the documentation as submitted fails to
convince us that there was a decline of work directly attributable to enactment of the Staggers Rail Act with respect
to the three positions at issue. Actually, the data tends
to show that there was no decline in work at the bureau during
the period of time from enactment of the Staggers Rail Act and
the date the SFTB abolished the three positions coincident with
the effective date of the Commission's deregulation of TOFC/COFC
service. We are thus left to conclude, as the SFTB has maintained,
that the decision to abolish the three positions was the direct
result of the deregulation of.TOFC/COFC service and a managerial
determination that such deregulation "would cause a diminution
of approximately fifty percent in the total work required to be
performed by the two desks (six employees] responsible for the
compilation of TOFC/COFC tariffs."
Accordingly, in view of the limitation which the Commission
placed upon this controversy, namely, that as a prerequisite
to an entitlement of protective benefits it must be established
that the job abolishments were "directly caused" by changes to
antitrust immunity as related to the enactment of section 219,
this Board has no alternative but to conclude, absent a probative showing to the contrary, that the Claimants in this
dispute were not adversely affected by job abolishments attributable directly to a decline in work coincident with enactment
of the Staggers Rail Act. As set forth above, the evidence of
record supports the conclusion that abolishment of the three
positions was directly attributable to the Commission's preStaggers Rail Act administrative determination to specifically
deregulate TOFC/COFC service under its then existing authority,
and not the Staggers Rail Act itself. Under these circumstances,
we do not find the Claimants to be entitled to protective
benefits in pursuance of section 219(g) and NY Dock. Their
claims must therefore be denied.
AWARD:
In view of all the facts and arguments offered by the
parties, both in writing and orally, and based upon the findings in the foregoing analysis, it is held that the Question
at Issue must be answered in the Negative; the Claimants
were not adversely affected as a direct result of changes to
antitrust immunity for collective ratemaking effected by
Section 219 of the Staggers Rail Act of 1980.
Loz~' - -_
Robert E. Peterson, Chairman
and Neutral Member
E.J. Neal, Brotherhoo Member-
Washington, DC
August 31, 1983