Arbitration pursuant to Article I - Section 4 of the
employee protective conditions. developed in New York
Dock-Ry.-Control-Brooklyn Eastern Dist., 360 I.C.C.
60 (1979) as provided- in ICC , Finance Docket No. 30,000
PARTIES Union Pacific Railroad Company
Western Pacific Railroad
TO
DISPUTE
and
DECISION
American Train Dispatchers
Association
QUESTIONS AT
ISSUE:
1. Is the transfer of train dispatching work from Sacramento,
California, to Salt Lake City, Utah, as set forth in the
Union Pacific Railroad Company's letter of August 17, 1983,
to the American Train Dispatchers Association subject to
arbitration under Article I, Section 4 of the New York Dock
Conditions?
If the answer to Question No. 1 is in the affirmative, what
provisions shall be contained in an arbitrated implementing
arrangement rendered pursuant to Article I, Section 4 of the
New York Dock conditions with respect to the transfer of
dispatching work as set forth in Carriers' letter of
August 17, 1983?
2.
BACKGROUND:
On September 24, 1982, the Interstate Commerce Commission (ICC)
rendered its Decision in Finance Docket No. 30,000 approving the merger of
the Union Pacific Railroad (UP), the Missouri Pacific Railroad (,HP) and
the Western Pacific Railroad (WP), 366 ICC 362. The ICC in its Decision
imposed conditions for the protection of employees set forth in New York
Dock Ry. - Control - Brooklyn Eastern District, 350 I.C.C. 60 (1979) (New
York Dock Conditions).
By ietter of August 17, 1983, UP notified the General Chairman
of the American Train Dispatchers Association (ATDA) pursuant to Article I,
Section 4 of the New York Dock Conditions of UP's intent:
. . . to transfer all train dispatching work associated
with the territory between the East Switch at Burmester
(approximately M.P. 897.8) and Salt Lake City (both
Union Pacific North Yard and D&RGW Roper Yard), to
the Union Pacific train dispatchers located at Salt
Lake City.
The letter also stated that the dispatching work transferred to the UP
dispatchers at Salt Lake City, Utah, would be taken from WP dispatchers
at Sacramento, California. The notice stated further that although the
territories for which the WP dispatchers in Sacramento are responsible
might be restructured, the Carrier did not intend to transfer any WP
dispatcher from Sacramento to Salt Lake City with the work, nor did the
Carrier anticipate a reduction of train dispatcher positions at Sacramento
or any adverse impact on any train dispatchers as a result of the transfer.
The parties met on September 6, 20, and 21, 1983, concerning the
transfer of dispatching work. However, neither those meetings or substantial
correspondence between the UP and ATDA concerning them produced agreement.
By letter of October 24, 1983, the Carrier requested the Nacional
Mediation Board (NMB) to appoint a referee pursuant to Article I, Section 4
of the New York Dock Conditions. ATDA opposed the Carrier's request on the
ground that the dispute between the parties was not within the scope of
Article I, Section 4, a position ATDA had taken consistently in its meetings
and correspondence with the Carrier. However, by letter of January 23,
1984, the NMB appointed the undersigned as Referee pursuant to Article I,
Section 4.
On January 25, 1984, the UP withdrew its request for appointment
of a Referee for the stated purpose of conducting further negotiations with
ATDA in an attempt to resolve the dispute. However, the dispute remained
unresolved and the Carrier reapplied to the NMB for appointment of a
Referee. On March 26, 1984, the NMB reappointed the undersigned as
Referee.
On April 11, 1984, ATDA requested that this proceeding be
bifurcated in order that the jurisdictional issues raised by the Organization would be heard and decided separately from the merits of the dispute.
By letter of April 19, 1984, the undersigned Referee denied the· Organization's
request on the ground that compliance with such request would make it
difficult it not impossible to comply with the time strictures of Article I,
Section 4. The ruling made clear, ho<<ever, that while one hearing would
be conducted on all outstanding issues, the Decisiot resulting from the
hearing would address and resolve all jurisdictional issues before addressing
issues involving the merits of the dispute if such Decision was necessary.
Hearing was held in this matter in Sacramento, California, on
April 27, 1984.
FINDINGS:
At issue in this proceeding is the transfer of the dispatching
work of one half of one employee. Both the Carrier and the Organization
agree that the transfer is desirable for organizational and operating
efficiency. However, the
Organization vigorously
contests the right of
the Carrier to make the transfer pursuant to Article I, Section 4 of the
New York Dock Conditions without agreement by the Organization.
1. Jurisdiction
The threshold issue which must be resolved is whether the
transfer of dispatching work from WP Dispatchers in Sacramento to UP
Dispatchers in Salt Lake City is properly justiciable under Article I,
Section 4 of the New York Dock Conditions. The Organization maintains
that no such jurisdiction exists, even to decide the jurisdictional
question. The Carrier on thE·. other hand maintains that the proposed
transfer raises issues properly within the,province of a Referee acting
under Article I, Section 4 and seeks an arbitrated implemecting arrangement as provided in Article I, Section 4 in resolution of the parties'
impasse.
a. Organization's Position
The Organization maintains that the transfer of work is excluded
from Article I, Section 4 by the very terms of that provision. First,
Article I, Section 4 applies only to ". . . a transaction which is subject
to these (New York Dock) conditions . . . ." The Organization argues that
the transfer of work is not a transaction defined in Article I, Section 1(a)
of the conditions as ". . . any action taker. pursuant to authorizations
of this Commission on which these provisions have been imposed."
The Organization contends that the Commission never authorized the
transfer of work and in fact excluded the transfer frcm the scope of
the transaction authorized in its Decision in Finance Docket 30,000.
The Organization argues further that the proposed transfer of work, by
the Carrier's own admission in the August 17, 1983, notice, will not
".
. . cause the dismissal or displacement of any employees or rearrangement
of forces, . . ." nor involve a ". . . selection of forces . . ." as
provided in Article I, Section 4. In fact, emphasizes the Organization,
the notice states that no employees will be affected whereas Article I,
Section 4 provides that the notice shall include ". . . an estimate o~F the
number of employees of each class affected by the intended changes."
Citing New York Dock Ry. v United States, 609 F.2d. 83 (2 Cir. 1979)
and Ry. Labor Executives Assr. v United States, 339 U.S. 142 (1949) for the
prcposition that labor protective conditions imposed by the ICC were intended
to protect the interests of employees and not the railroads, the Organization
argues that the use of Article I, Section 4 to implement the transfer of work
would constitute a misapplication of the New York Dock Conditior:s to enhance
the Carrier's position at the expense of the: employees. In essence,
argues the Organization, UP would acquire the right to take action adversely
affecting WP employees which WP did not have prior to the merger.
The Organization maintains that the proposed transfer of work
pursuant to Article I, Section 4 is prohibited by Article I, Section 2
of the New York Dock Conditions which provides:
2. The rates of pay, rules, working conditions
and all collective bargaining and other
rights, privileges 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.
The Organization points to the Mediation Agreement of April 7, 1976,
known as the Sacramento County Agreement, between the ATDA and WP which
the Crganization conrends prohibits the WP from transferring Sacramento
dispatchers or their work without agreement by the Organization. Emphasizing
that the agreement was entered into under the: Railway Labor Act, 45 U.S.C.
4151, et seq., with its statutory scheme of voluntary settlement of
disputes concerning the making or amending of collective bargaining
agreements, the Organization contends that the·. implementation of the
transfer of work in this case under Article I, Section 4 of the New York
Dock Conditions would constitute the imposition of binding or compulsory
arbitration which would violate the Mediation Agreement and contravene
rights guaranteed by the Railway Labor Act. Accordingly, such action
would violate Article I, Section 2 of the New York Dock Conditions.
The Organization also alleges that the transfer of work in this
case would violate Article I, Section 3 of the New York Dock Conditions
providing in pertinent part:
3. Nothing in this appendix (the New York Dock
Conditions) shall be construed as depriving
any employee of any rights or benefits or
eliminating any obligations
which such
employees may hLve under existing
job
security or other protective conditions or
arrangements; . . .
Section 3 also provides that employees may elect the benefits of New
York Dock or any superior protective agreement or arrangement applicable
to them. The Organization points to the provision in the April 7, 1976,
Mediation Agreement for the cancellation of the prohibitions on the
transfer of employees and work in the event the Mediation Agreemera. of
June 16, 1966, Case No. A-7460, a national job security agreement
applicable to dispatchers, is amended.
The
Organization argues that
in view of the interrelationship of the two Mediation Agreements, the
April 7 Mediation Agreement is a job security agreement or arrangement
superior to flew York Dock, protected by Article I, Section 3,which may
not be abrogated by any proceeding under Article I, Section 4.
The Organization maintains that an Article I, Section 4
proceeding implementing transfer of the work in this case would violate
Section 17 of the ICC Decision in Finance Docket 30,000, 366 ICC at 654,
which provides that all authority granted by the Commission in that case
is subject to the: New York Dock Conditions ". . . unless an agreement is
entered prior to consolidation in which case protection shall be at the
negotiated level (subject to our review to assure fair and equitable
treatment of affected employees)." The Organization contends that the
previously negotiated Mediation Agreement of April 7, 1976, was entered
into prior to the consolidation, takes precedence over the New York Dock
Conditions and thus cannot be abrogated by any proceeding under Article I,
Section 4.
As noted above the Organization urges that the proposed transfer
of work in this case was not authorized by the Commission in its Decision
in Finance Docket 30,000 and in fact was excluded by the Commission from
the scope of that Decision. The Organization points to the Carrier's
position tal.en before the Commission in that case specifically disavowing
plans to transfer the work-in the inutant case. The Organization also
points out that in its Decision the Commission denied the Organization's
request for a special notice provision regarding any transfer of dispatchers'
work on the ground that the record contained no evidence such trsnsfer was
is fact planned by the Carrier. Accordingly, the Organization urges,
the Commission's Decision may only be read as specifically excluding such
transfer from any transaction contemplated by the Commission to which
the New York Dock Conditions should apply. Thus, the transfer is not
subject to implementation through an Article I, Section 4 proceedin6.
The Organization urges that in the final analysis the Carrier
has not sustained its burden of establishing jurisdiction uneer Article I,
Section 4 of the New York Dock Conditions for an arbitrated arrangement
implementing the proposed transfer of work from Sacramento to Salt Lake
City. Accordingly, this proceeding should be dismissed.
b. Carrier's Position
The Carrier contends that the trana:fer of work proposed in the
instant case is appropriate,for implementation under Article I,
Section 4 of the Neil York Dock Conditions notwithstanding ATDA's
"jurisdictional/procedural" arguments to the contrary. The Carrier
argues that while it does not anticipate any adverse effect upon employecs,
the transfer of work "may" result eventually in the dismissal or displacement of employees or rearrangement of forces. Accordingly, the transfer
falls within the scope of Article I, Section 4. The Carrier cites
ICC and court decisions which it contends reject the arguments advanced
by the Organization in this case. Specifically, the Carrier alleges
the ICC has affirmed that the Railway Labor Act and existing collective
bargaining agreements and arrangements must give way to a transaction
authorized by the Commission at least to the extent that they block or
Impede implementation of the transaction. Furthermore, the Carrier
contends, in its Decision of September 24, 1982, the ICC specifically
refused to burden the Carrier with notice prcvisions concetnin& the
transfer of. work. at issue in the instant case and actually
authorized such transfer subject to the New York Dock Conditions.
The Carrier argues that Article I, Section 2 of the New York
Dock Conditions is inapplicable to the instant case. The Carrier cites
the history of that Section pointing to its inception in the Amtrak
C-1 conditions. The Carrier contends that Section 2 was meant to apply
to a single carrier assuming the employment, and the employment. contracts,
of many employees from several different carriers. The Carrier
cortands it was not meant to apply to transactions between two carriers
such as the instant case.
With respect to Article I, Section 3 the Carrier der'.es that the
Mediation Agreement of April 7, 1976, is an employee protective agrtement
because it does not specifically preserve the income or employment of the
WP dispatchers. Conceding that the Mediation Agreement of June 16, 1966, is
an employee protective agreement or arrangement,the Carrier contends chat
the April 7, 1976, Mediation Agreement, although conditioned upon
continuance of the 1966 agreement unamended, does not take on the same
character as the latter agreement. Furthermore, argues the Carrier, the
terms of the April 7 Mediation Agreement do not prohibit or restrict the
transfer of work at issue in this proceeding. Nor, urges the Carrier,
does Section 17 of the ICUs Order in Finance Docket 30,000 preserve the
April 7 Mediation Agreement in view of the fact it is not a protective
agreement or arrangement.
Emphasizing the need for finality in merger and consolidation
cases, and the need to prevent organizations from gaining veto power over
such transactions, the Carrier points out that Article I, Section 4 is a
clear statement by the ICC that mandatory arbitration shall be the method
for resolving disputes concerning the failure to agree to procedures :or
implementing transactions under the New York Dock Conditions. Accordingly,
the Referee must exercise jurisdiction in this case in order to facilitate
the scheme of the New York Dock Conditions.
The Carrier denies that it intentionally misled either the ICC
or the Organization with respect to the transfer of work from Sacramento
to Salt Lake City during the proceeding which culminated in the Commission's
Decision in Finance Docket 30,000. It contends that it truthfully
represented no plans existed to transfer the work. However, the Carrier
contends that this should not preclude future transfer of the work which
is involved in this case. The Carrier contends the ICC specifically
recognized this in its Decision.
The Carrier disputes the Organization's contention that the
Carrier would receive powers not previously held by virtue of an Article I,
Section 4 proceeding in this case. The Carrier argues that the same
result could have been accomplished under the Washington Job Protection
Agreement by abandonment proceedings. However, proceeding under New York
Dock affords the employees a higher level of protection.
The Carrier contends that the Organization's construction of the
ICUs Decision and Order in Finance Docket 30,000 renders it a static
rather than the dynamic instrument it was intended to be. The Carrier
contends that the ICC recognizes not all transactions are foreseeable or
contemplated at the time the Commission authorizes a merger or consolidation
and accordingly Carriers are given authority to undertake a transaction
in the future with the protection of the New York Dock Conditions for
affected employees.
The Carrier contends that what the Organization actually seeks
now and has sought from the outset of this proceeding is attrition
protection for WP dispatchers which this Organization and others have
sought unsuccessfully to obtain from the ICC. The Carrier states that
inasmuch as the New York Dock Conditions do not provide for such level of
protection, the Carrier refused to agree. Accordingly, the Carrier urges
that its proposal for an implementing arrangement, which is based on
New York Dock,should be adopted by the Referee in this case.
c. Discussion
Of the arguments advanced and authorities relied upon by both
the Carrier and the Organization with respect to the jurisdictional
question in this case, the most relevant and accordingly the most
persuasive are those based upon or relating to the ICUs pronouncements.
As the author of the New York Dock Conditions the Commission's interpretations of those conditions, if directly on point, are binding upon a
Referee in an Article I, Section 4 proceeding. Even if not directly on
point they are persuasive if relevant.
With respect to the transfer of WP dispatching work or
dispatchers the ICC rejected ATDA's request to condition such transfer
upon prior notice, opportunity for hearing and order of the Commission
saying:
. . . there is no evidence of record that applicants
have any intention of transferring the dispatchers
in question. Moreover, we do not believe it would
be appropriate to fetter applicants' operating
capabilities by precluding it from acting in the
future in ways necessary to enhance labor productivity.
Imposition of a notice and hearing requirement in
this context would be unduly burdensome on these
carriers. Again, in the event employees might be
impacted in the future, as a result of this
consolidation, they will be afforded the protection
we have imposed here. 366 ICC at 622
Thus, while the ICC noted no record evidence that a transfer such as the
one in this case was intended by the applicants, the statement immediately
following that notation clearly establishes that the Commission intended
that such transfers would be allowed with application of the New York
Dock Conditions. The ICUs pronouncement is clear, unequivocal, directly
on point and highly persuasive if not determinative that jurisdiction
exists under Article I, Section 4 to resolve the impass in this case.
In another proceeding involving Finance Docket 30,000 decided
October 19, 1983, the ICC also determined that the Railway Labor Act and
existing collective bargaining agreements must give way to the extent
that the transaction authorized by the Commission may be effectuated.
Given the Commission's ruling noted above with respect to the specific
transfer of work in this case this Referee concludes that neither the
Railway Labor Act or existing protective and schedule agreements, even when
considered in the context of Sections 2 and 3 of the New York Dock
Conditions, impair the Referee's jurisdiction under Article I, Section 4
of the New York Dock Conditions to resolve the impasse concerning transfer
of the work in this case.
Accordingly, Question No. 1 is answered in the affirmative
2. Terms of Arbitrated Implementing Arrangement
There remains the question of what terms should be included in
the arbitrated implementing arrangement applicable to the transfer of work.
This case involves the unique situation, as noted above, whereby
no employees are anticipated to be affected by the transfer of work,
nor will there be a rearrangement of forces. Accordingly, no selection
of forces is involved.
The Carrier contends that the arbitrated implementing arrangement
need provide only for the application of the New York Dock Conditions in
the unlikely event that an employee may be affected or forces may be
rearranged as a result of the transfer of work. However, the Organization
argues that the arbitrated implementing arrangement should provide that no
employee will be adversely affected nor
will
forces be rearranged as a
result of the transaction.
The Organization's proposal is but another version of its
position, argued in greater detail with respect to the jurisdictional issue
in this case, that no work should be transferred without its agreement.
The Organization's position frustrates binding or compulsory arbitration
under Article I, Section 4 to resolve the. impasse between the parties
and thus is not proper for inclusion in the arbitrated implementing arrangement.
The Carrier's proposal is consistent with and would facilitate
the purposes of Article I, Section 4. Accordingly, it will be adopted.
The attached arbitrated implementing arrangement is hereby made
a
part of this Decision and constitutes this Referee's determination
under Article I, Section 4 of the New York Dock Conditions as to the
appropriate arrangement for this particular case. The arbitrated
implementing arrangement is to be treated as if signed and fully
executed by the parties and their representatives. This Decision and the
implementing arrangement are intended to resolve all outstanding issues
in this proceeding as provided in Article I, Section 4 of the New York
Dock Conditions.
William E. Fredenberger, ,Tr.,~
Referee
DATED:
j~ylC~`i~','~G~
ARBITRATED
UiPLEMENTING ARRANGEME::T
Between
UNION PACIFIC RAILROAD COMPANY
(WESTERN PACIFIC RAILROAD)
And
AMERICAN TRAIN DISPATCHERS' ASSOCIATION
The Interstate Commerce Commission (ICC) approved, in Finance
Docket No. 30000, and selected subdockets 1 through 6, the merger of
Union Pacific Railroad Company (UP). Missouri Pacific Railroad Compnay,
(MP), and Western Pacific Railroad Company (WP), effective December 22,
1982. The ICC, in- its approval of the afaresaid Finance Docket, has
imposed the employe protection condition set forth in
New
York Dock
Ry. - Control - Brooklyn Eastern District Terminal
354 ICC 399 (1978),
as modified at
360 ICC
60
(1979)
(New York Dock Conditions).
Therefore, to effect consolidation of all train dispatching
functions now being performed at Sacramento. California by WP train
dispatchers for the trackage from Salt Lake City (including both UP
North Yard end the D&RGW Roper Yard) to the East Switch at Burmrater
to UP train dispatchers at Salt Lake City:
IT IS AGREED:
ARTICLE I - PURPOSE:
All o! the train dispatching now being performed by both UP and WP train dispatchers from Salt Lake
City to Smelter. Utah (UP M.P.
766.4,
WP M.P. 911.44) and by WP train
did
patchers from Smelter, Utah to the East Switch at Burmnster, Utah (WP `i.P.
897.8) will be consolidated into a single combined train diupatctilng operation with all work being performed by UP train dispatchers at Salt Lake
City, Utah.
ART ICLE.II - Any re-alignment of assigned territories or change in assignments with respect to assigned hours, off days, etc., as a result of the
transfer of work described herein will be accomplished ip accordance with
the terms of the existing collective bargaining agreement.
ARTICLE III - The transfer of work described herein will not result 1n the
transfer of any of the train dispatchers at Sacramento, California, to Salt
Lake City, Utah, nor is it anticipated that such Cransfet virii result Xn any
reduction
of
train dispatcher positiccvi at, Cacrencnto.
ARTICLE IV - Employes directly affected by the transfer-of work described
herein V111 be subject to the protective benefits of the New. York Dock
Conditions as prescribed by the Interstate Commerce Co=ission in Finance
Docket No. 30000. It is also understood there .hall be no duplicacion
of benefits under this Agreement and/or any other agreement or protective arrangement. A copy of the New York Dock Conditions is attached
as Attachment "A".