Before ARBITRATION COMMITTEE appointed pursuant to
Article I, Section II of Appendix III, I.C.C. Finance
Docket No. 28250
In the Matter of
UNITED TRANSPORTATION UNION (T)
and
CONSOLIDATED RAIL CORPORATION
DOCKET NO. CRT-1691
SUBMITTED ISSUES
2.
O P I N I O N
A N D
A W A R D
1. Is trainman J. A. Varga entitled to the benefits
described in the "New York Dock
Conditions" as
requested on September 13, 1983 due to the
abolishment of his position on September 12, 1983?
Is trainman S. A. Jankowski entitled to the benefits described in the "New York Dock Conditions"
as requested on September 10, 1983 when claimant
said "because of having been placed in a worse
position with respect to my compensation and benefits as a result of the Conrail-Raritan River
Merger?
BACKGROUND FACTS
On January 11, 1980, the U. S. Interstate Commerce
Commission issued as Finance Docket 29805 a Notice of
Exemption from the requirements of 49 U.S.C.
11343-11347
to the proposed merger of Consolidated Rail Corporation
(CONhALL~) with the Raritan River Railroad Company (Raritan),
the latter wholly owned by Conrail at the .time. This
grant was made "subject to the conditions imposed for the
protection of employees imposed in New York Dock
Ry-Control-Brooklyn Eastern Dist., 360 I.C.C. 60 (1979),
affirmed by slip opinion of U. S. Court of Appeals for
2nd Circuit, November 7, 1979." The latter document provides certain payments to individuals caused to be displaced.or dismissed because of merger. It bears the
designation of Finance Docket No. 28250 and will be referred to herein as New York Dock Conditions or NYDC.
Provisions of this document which are material and pertinent to the instant controversy have been quoted in
our Award for Docket CRT-906.
The Raritan-Conrail merger became effective
April 24, 1980.
CIRCUMSTANCES
Claimant, J. A. Varga, entered the employ of
the Raritan River Railroad as a Trainman on January 30,
1956, claimant S. A. Janowski on April 10, 1961. Because Raritan was a wholly-owned subsidiary of Conrail, its
employees were subject to the protection provided by Title
V of the Regional Rail Reorganization Act of 1973, as
amended (hereinafter, Title V).
Effective September 12, 1983, positions of both
claimants were abolished.
In a letter dated April 17, 1980, Conrail notified
the Raritan employees subject to Title V protection, including claimants, of "certain rights and obligations
you will have in the event you are adversely affected
by the Raritan River-Conrail merger to be effective 12.01
A.M., April 24, 1980." The letter explained that if employees are already protected under Title V, they had the
choice of remaining under such protection or electing to
substitute the ICC-imposed merger protective conditions
commonly known as the New York Dock Conditions. Those
wishing to make such substitution were instructed that
they could do so by notifying Conrail's Manager, Labor
Relations within 7 calendar days of becoming an adversely
affected employee.
It is undisputed that neither of the claimants made
such substitute selection. Instead, claimant Varga submitted his initial application for a Title V monthly displacement allowance for the month of June 19$0; claimant
Jankowski submitted his initial application for a Title V
monthly displacement allowance for the month of May 1980.
They continued thereafter to file for and be paid Title V
monthly displacement allowances until September 1, 1981,
the date when the employee protective provisions of Title
V of the Regional Rail Reorganization Act of 1973 'were repealed.
By letter dated September 10, 1983, claimant
Jankowski requested the benefits of NYDC "because of having
been placed in a worse position with respect to my
compensation and benefits as a result of the ConrailRaritan River merger." In a letter dated September 13, 1983,
claimant Varga requested NYDC benefits "due to the abolishment of my position of trainman on assignment YJRR #10
effective as of September 12, 1983."
POSITIONS OF THF
PARTIES
The basis put forward by Carrier for denying the
claimants NYDC coverage, is their having failed to elect
or substitute NYDC for Title V protective benefits when
they were offered such opportunity. Instead Iboth claimants
continued to file for and receive Title V benefits and
first notice of their desire to receive NYDC benefits
was asserted by them about three and one-half years later.
By failing to elect substitution of NYDC benefits
and availing themselves instead of Title V benefits,
claumants had chosen more favorable protective benefits
payable until age 65 as against the six-year protective
period under NYDC.
Carrier cites Section 3 of NYDC as pertinent and controlling on the circumstances here. That Section obligates the beneficiary to make a choice between NYDC or
"any existing job security or other protective
conditions
or arrangements" and "for so long as he continues to receive such benefits under the provisions which he so elects,
he shall not be entitled to the same type of benefit
under the provisions which he does not so elect."
Attention is called by Carrier to an interpretation
of Section 3 issued by the U. S. Court of Appeals for the
Second Circuit in a matter involving N. Y. Dock Railway &
Bklyn Eastern District Terminal vs. Interstate Commerce
Commission (1979). The Court ruled that employees electing coverage under one set of protective conditions were
ineligible to receive "counterpart" benefits of the same
kind (notwithstanding that they may differ in such aspects as amount and duration) under another set of protective conditions.
It is acknowledged by Carrier that the employee protective benefits of Title V were amended effective September 1, 1981 by Title VII of the Northeast Rail Service
Act of 1981. This, in Carrier's view, nevertheless continued the "Title V" choice which claimants had elected
in April 1980, albeit the amendment eliminated the monthly displacement allowance and provided compensation benefits for employees deprived of employment.
In its denials to claimantsin 1983, Carrier invoked
the so-called "Weston Award". This is an arbitration
award issued on January 6, 1972 by an arbitration board
chaired by H. M. Weston and involving the former Penn
Central Transportation Company and B.R.A.C. The decision
deals with Appendix C-1 of the National Passenger
Corporation Agreement (not involved here) and states
that the election of benefits under C-1 obviates application of the Merger Protective Agreement of May 20, 1964.
Organization regards the Weston Award as inapplicable
to the instant claim, inasmuch as it dealt with the application of Appendix C-1, not involved here.
With respect to Carrier's reliance on Section 3 of
"New York Dock Conditions", Organization calls attention
to the inclusion in that section of this proviso after
the statement cited by Carrier concerning employee's
obligation to elect protective benefit rights: "provided
further, that after expiration of the period for which such
employee is entitled to protection under the arrangement
which he so elects, he may then be entitled to protection
under the other arrangement for the remainder, if any, of
this protective period under that arrangement."
Organization notes that the above quoted language
does not appear in Appendix C-1 to the National Railroad
Passenger Corporation, the document dealt with in the
"Weston Award"; accordingly, said award does not establish
precedence for the instant matter. These words applied,
however, to the situation involved here can mean only
that (1) as long as the Title V protective provisions remained available to claimants for their full "protective
period" they could not become eligible for the New York
Dock protective provisions, but (2) when, as~for the
instant claimants, the Title V protective provisions cease,
NYDC benefits to which eligible may be invoked for the
duration of the statutory life of NYDC (a total of six
years from its origination).
OPINION
Did the "Weston Award" of January 6, 1972 and/or
the U. S. Court of Appeals, 2nd Circuit decision of November 7, 1979 in N. Y. Dock Railway/Bklyn Eastern Dist. Terminal (79-4086) dispose of the kind of controversy presented here? We think not. As Organization points out, both
the Weston Board and the Court had before them only one of
the instruments involved here - the New York Dock Conditions enactment; the other was Appendix C-1 to Section
405 of the National Railroad Passenger Corporation Agreement, not Article V, as in the instant claims. In its decision, the Court was reacting to the prohibition in Appendix- C-1 against the duplication of or "pyramiding"
of benefits (Article 1,3) and, also, to the Weston Bnard's
interpretation thereof. Neither Article V or NYDC make
such a statement as appears in C-1. Article I, Section 3
of New York Dock does require a choice between sets of
existing protective benefits and bars the deriving of "the
same type of benefit" from the unselected provisions while
such benefits are being garnered from the elected set
of arrangements. But it concludes with a proviso permitting the beneficiary to go on to a previously unselected
set of benefits which may have survived the demise of the
benefits originally chosen.
our reading of this proviso in Section 3 (the last
"provided further" statement therein) is that it states
that when the protective arrangement he had chosen "expires",
the employee who had earlier been displaced or removed by
the subject transaction (i.e. the merger) may then be entitled to "protection under the other arrangement" for whatever remains of a benefit period under such "other arrangement." The section makes it clear at its beginning that
"other arrangement" refers to such benefits which might
accrue to the affected employee "under eny existing job
security or other protective conditions or arrangements".
The two subject claimants opted for and received.
Title V coverage; the Title V benefits ran out; they then
exercised their right to receive NYDC benefits - the
"other protective condition" - as long as such would be
in force for them.
We find that they acted within their rights, and are
entitled to those successor benefits.
AWA RD
J. A. Varga and trainman S. Janowski are entitled to the benefits described in the "New York Dock
Conditions"., effective SeFtember 1C, 198.3 for Jankowski
effective September 13, 1983 for Varga. Said "New York
Dock Benefits" shall be available. from the effective
dates set forth to the expiration of the New York Dock
protective conditions computed from June of 1980 when
both elected Title V Benefits. Claims for monthly displacement ~allowance may be submitted on a retroactive
basis from the respective effective dates. Such retroactive claims must be submitted by a date, not later
than thirty (30) days from the date of the issuance of
this award.
LOUIS YAGO Neutral Member
C.
ye.
H ANT~`Organization Member
IL4e~ "'ev
ROBERT O-'NLILL, Carrie membe
Dated
JUN 1 81985