In the Matter of the Arbitration between
SEAFARERS INTERNATIONAL UNION OF NORTH AMERICA
and
Re: New York Dock
Newport News
TBE CHESAPEAKE AND OHIO RAIL14AY CO`IPANY
APPEARANCES
BEFORE
For the
E.mol
over
E. F. Norton, Jr.
A. G. Anderson
For the Union
E. B. Pulver
R. H. Avery
Rodney E. Dennis
Opinion
Award
Manager, Labor Relations
Labor Relations Representative
Regional Director, S.I.U.N.A.
General Ch&irman, S.I.U.N.A.
Arbitrator
BACKGROUND OF THE CASE
On September 25, 1980, the Interstate Commerce Commission
granted Carrier authorization to abandon its carfloat operations
between Newport News, Virginia, and the United States Navel Base,
as well as Sewells Point in Norfolk, Virginia. New York Dock portective conditions were imposed. Proper notice of the abandonment
was given by Carrier and a memorandum of agreement between the Organization and Carrier was entered into. The abandonment became effective on March 15, 1981. When Carrier abandoned its carfloat operation at Newport News, protective benefits were provided to eight
Captains and Engineers who assumed displaced status and eight deck
hands who assumed dismissed status.
In mid-1984, due to a drastic decrease in coal traffic, Carrier
layed off all of its marine employes at Newport News. Carrier subsequently determined that the positions held by the employes receiving
protection due to the elimination of the carfloat operation would
also have been affected by the downturn in business and they, too,
would have been layed off. Given this need to furlough all marine
employees at Newport News, Carrier stopped paying protective benefits
to those employes receiving them. The dispute in this case centers
on Carrier's right to suspend protective payments under these conditions.
THE ISSUE AS STIPULATED TO BY TI1E PARTIES
Is the suspension of protective payments due to a
decline in business unrelated to the transaction
a violation of the New York Dock condition?
AGREEMENT LANGUAGE PERTINENT TO THIS ARBITRATION
Carrier and the Organization entered into a memorandum of agreement, as is required by New York Dock protective conditions, to establish the conditions that would be applicable to Carrier and the
Organization in the event that there was a rearrangement of forces
as a result of abandonment of carfloat operations at Newport News.
That agreement incorporated the protective conditions set forth in
New York Dock.
The conditions of New York Dock apply to this case, but only
in a peripheral way. The general line of cases involving denial to
grant New York Dock protective benefits to employes or cases involving cessation of payment of protective benefits generally turn on
the argument made by the Organization that even though the adverse
effect on the employes may have occurred at a time later than the
transaction, the effect of the transaction was responsible for the
employe being bumped, for his job being abolished, or for his being
required to take a job at another location. The adverse effect was
a result of the transaction, even though the end result of the trans-
action did not develop for many weeks or months--or, in some cases,
for a number of years.
The crux of the instant case, however, is not whether there
is a causal nexus between the transaction and the suspension of
protective benefits, but whether a falloff of business unrelated to
the transaction would provide sufficient basis for suspending those
protective benefits.
POSITIONS OF THE PARTIES
The Carrier
Due to a drastic decrease in the export of coal through Carrier's
Newport News coal piers, all of Carrier's marine employes were layed
off in Mid-1984. That situation exists to this time. Coal dumped
at Carrier's piers decreased from 18,478,513 tons in 1981 to 3,554,882
in 1984.
It was concluded that employes being paid protective benefits
should also have their benefits suspended because they too would
have been affected by the down-turn in business even though the carfloat operation had been abolished. Carrier relied on numerous arbitration awards on New York Dock conditions to support its actions in
this case.
Carrier contends that even though the parent company made money
in 1984, the CIO Railroad lost millions of dollars over the past few
years at the Newport News Coal Pier Operation. Thus, it was justified
in laying off all marine operation employes at that location and
subsequently suspending the protective payments it is paying to
employes at that location. Carrier argues that New York Dock protective benefits are to protect employes from an adverse impact due
to a transaction, as defined in New York Dock, not from the adverse
impact from a decline in business.
The Organization
While it agrees that the layoffs of marine employes was due to
a reduction in coal tonnage and a subsequent drop in coal freight at
Carrier's piers, the Organization does not agree that protective
benefits can be suspended under the conditions that are present in
this case. The CSX Company made money overall during 1984. It should
not be allowed to say that since it had a loss at Newport News, protection at that location should be cut off when the holding Ccspany
is profitable in general. Protective benefits under New York Dock
are designed to protect employes who are affected by transactions
from adverse effect for up to six years. Nowhere in the New York
Dock agreements does it state that Carrier can suspend payments of
benefits because business slows down. New York Dock states that
displacement allowances shall cease prior to expiration of the protective period if the protected employe resigns, dies, retires, or
is dismissed for cause. It says nothing about benefits ceasing if
Carrier's business falls off at an individual location.
The Organization finally argues that it is unfair for Carrier
to suspend protective benefits for the employes involved here. They
are senior employes who can not find work in their craft at this
stage in their lives. Given the fact that Carrier sold Coal piers
to competing companies and allowed them to take over the coal-loading
business, it is not difficult to conclude that Carrier has allowed
the coal-loading business at the Newport News Coal Piers to be taken
over by the competition. This has had a serious effect on Carrier
employment in its marine division. Carrier should not be allowed to
suspend protection under these conditions. It contributed to the
demise of the business and it should be made to continue the protective payments to its employes.
FINDI N'GS
This is not a case that involves a complex fact pattern or
detailed laws or agreement language. This case rests on what rights
Carrier has to suspend protective payments and what language or rights
the Organization has to prevent Carrier from doing so. A careful
reading of the few York Dock labor protective conditions that is a
part of the parties' memorandum of agreement in this case reveals
that no mention is made of Carrier's right to suspend protective
benefits once granted because of a falloff in Carrier's business.
Nor can language to the contrary be found. The fact is that the
New York Dock protective conditions did not mention suspension of
protective benefits for any reason other than resignation, death,
retirement, or dismissal of the protected employe.
Over the years, however, Public Law Boards and Arbitrators
have applied New York Dock conditions in such a way that only employes
affected by a transaction are eligible for protection. Once it is
agreed that a transaction means an action taken by Carrier that is
authorized by the Interstate Com-nerce Commission pursuant to existing
law, it becomes clear who is eligible for protection: Those employes
who are adversely affected by the transaction and who can demonstrate,
if challenged, that a causal nexus exists between the transaction
and their adverse position. Failure to do so has generally meant
that these employes were denied protection.
On the other hand Public Law Boards and Arbitrators faced with
arguments against the suspension of protective benefits have generally
decided that if business falls off at a location, employes, whether
working regularly or covered under protection, who are adversely
affected by declining business due to economic conditions are not
eligible for protection of any type.
These Boards and Arbitrators have not arrived at this conclusion based on language in the New York Dock agreement that specifically authorizes such a position, but rather by concluding that
protective benefits only flow to employes who are adversly affected
by a legitimate transaction. That is what New York Dock states and
that is as far as the Carrier or Arbitrator must go in applying New
York Dock. Equity arguments made on behalf of employes or arguments
that Carrier brought the situation upon itself because it allowed
the competition to take over coal loading at Newport News are interesting, but not persuasive to the degree that they can be used to set
aside the many arbitration awards and Public Law Board decisions
that support Carrier's case in this instance. The facts of the instant case do not support the proposition that because Carrier makes
money overall, it must continue to pay protection in a location where
all employes have been furloughed because of a decline in business.
There is no justification
in
this record to support the Organization's
position. The answer to the question at issue in this case is no.
The Carrier did not violate the New York Dock condition in this instance.
AWAR0
Petitioner's grievance is denied.
E. $. Pu ver, Unldn Member
New York, New York
April 22, 1985
_, .
; 7
E. F. 'Norton, %Jr., Car r' r Member
Rodney
c.
Dennis, Chairman
and Neutral Member