ARBITRATION ESTABLISHED UNDER ARTICLE I, SECTION 11
(a)
OF THE NEW YORK DOCK CONDITIONS
In the matter of arbitration between:
James M. Benham
-and-
Delaware and Hudson Railway Company
ARBITRATION COMMITTEE
Robert M. O'Brien - Neutral Member
Douglas J. Broda -James M. Benham's Member
Daniel J: Kozak - Carrier Member
APPEARANCES
For James. M. Benham - Douglas J. Broda - Attorney
McClung, Peters and Simon
For Delaware and Hudson Railway Company:
Daniel J. Kozak - Staff Officer - Labor Relations
BACKGROUND
The facts evidence that in 1984, Guilford Transportation
Industries (hereinafter referred to as Guilford) acquired the
Delaware and Hudson Railway Company (hereinafter referred to
as the Carrier. In Finance Docket No. 29772, the interstate
Commerce Commission (hereinafter referred to as the ICC)
imposed the labor protective conditions set forth in NEW 'ORK
DOCK RY.- CONTROL-BROOKLYN EASTERN DISTRICT, 360 ICC 60
(1979) (hereinafter referred to as t`..e New York Dock
Conditions ) on this acquisition. It should be noted that the
Carrier had previously assumed control of the Boston and
Maine Corporation, headquartered in North Billerica, Mass.
and the Maine Central Railway Company, headquartered in
Portland, Maine. James M. Benham (hereinafter refered to as
the Claimant) has submitted the instant claim pursuant to ICC
Finance Docket No. 29772.
The evidence reveals that the Claimant entered the
Carrier's service on January 14, 1969. He held a clerical
position and was represented by the Brotherhood of Railway,
Airline and Steamship Clerks (hereinafter referred to as
BRAC) until January 14, 1980, when he was proooted.to Data
Research Analyst in the Sales and Marketing Department. This
position was not represented by any labor organization on
this property. On November 17, 1982, the Claimant was
promoted to the position of Manager, Pricing and MarketingIntermodal. Mr. Benham held this position until he resigned
from the Carrier's service in 1984. This position was also a
non-bargaining unit position on this property.
According to the Carrier, in his capacity as Manager,
Pricing and Marketing -Intermodal, Mr. Benham was responsible
for conducting market analyses and developing marketing and
pricing strategies regarding-intermodal service. The Carrier
contends that Mr. Benham was required to exercise independent
thinking and judgment in this position as well as individual
initiative. However, Mr. Benham, through his attorney, claims
that the Carrier has greatly exaggerated his duties and
responsibilities. The Claimant insists that he
in no
way set
or contributed to Company policy. Rather, he merely plugged
2
raw data into a formula determined by the
Carrier to
arrive
at a price for transactions or shipping. The Claimant
explained that while his job title made it appear that he
held a managerial position, in actuality his duties were
primarily clerical in nature.
On June 15, 1984, Mr. Benham was advised that he was
being transferred from Albany, N.Y. to Guilford's corporate
headquarters located in North Billerica, Mass., effective
July 2, 1984. The Claimants transfer was part of a corporate
and department restructuring brought about by Guilford's
acquisition of the Delaware and Hudson Railway Company, the
Boston and Maine Corporation and the Maine Central Railway
Company. Save for regional sales functions, Guilford
consolidated all of its Marketing Department activity in
North Billerica. The Claimant was one of nineteen (19)
individuals employed by the respective Marketing Departments
of both the Carrier and the Maine Central Railroad who were
transferred to North Billerica. Fifteen (15) of these
employees did, in fact, transfer whereas four (4) elected to
resign- from their positions with the Carrier.
:'- Benham elected to transfer to North Billerica and
aas z=`':rde_
r2=GC3tlOn
expenses in accordance with the
Ca:rer'- "orporation Relocation Policy. However, Mr. Benham
`_1, -.zork=ng conditions at North Billerica
'_ _ -.,_ _ _ an= early August, 1984, he decided to resign
from the Carrier's service. On August 6, 1984, he tendered
his resignation to Mr. T.C. Perry, Vice President - Marketing
& Sales. Mr. Perry agreed to retain the Claimant on the
payroll through October 1, 1984. His resignation was accepted
by the Ca-rrier on August 13, 1984. In mid-August, 1984, Mr.
Benham obtained employment
with Distribution
Unlimited, Inc.
as a sales manager. Approximately four (4) months later, he
was
promoted to the position of Assistant Vice President -
Sales and Administration for this same company.
Approximately one (1) year after his resignation, _aoes
Benham retained the services of Attorney Homer E. Peters of
the law firm of McClung, Peters, Simon and Arensberg. On
September 10, 1985, Mr. Peters wrote to Mr. B. E. Rice, VicePresident - Human Resources for Guilford, ca behalf of the
Claimant. In that letter, Mr. Peters requested a separation
allowance for Mr. Benham pursuant to Se-ctioh 7 of,the New
York Dock Conditions. The Carrier advised Mr. Peters that, in
its opinion, Mr. Benham had been an official of the Delaware
and Hudson Railway Company and, as such, was not entitled to
the protective benefits set forth in the New York Dock
Conditions. Mr. Peters requested that the claim of Mr. Benham
be submitted to arbitration.
On March 6, 1986, the undersigned Robert M. O'Brien was
advised that he had been mutually selected to serve as the
Neutral Member of the Arbitration Committee being established
under Article I, Section 11, of the New York Dock Conditions
to adjudicate Mr. Benham's claim. The aforementioned
Arbitration Committee (hereinafter referred to as the
Committee) met on May 2, 1986, to hear the claim of James
Benham. Mr. Benham appeared at that hearing, represented by
4
counsel, and proffered extensive evidence in support of his
claim for a separation allowance. The Carrier also submitted
voluminous evidence to support its position that as an
official, Mr. Benham was not entitled to labor protection
benefits. In addition, both parties were given the
opportunity to submit Reply Submissions to the Committee. The
respective Reply Submissions were received by the Committee
on or about July 1, 1984. Based on the entirety of the
extensive record before us, this Committee renders the
following decision.
CLAIMANT'S POSITION
Mr. Benham contends that he was an "employee,' of the
Carrier at the time he was relieved of employment on July 2,
1984, notwithstanding Guilford's argument that he was an
"official," not an "employee." The Claimant insists that he
had no supervisory authority or policy making responsibility
whatsoever; he had no authority to hire or fire; he could not
expend funds; he supervised no employees; and he merely set
rates from a formula approved by the Carrier. In Mr. Benham's
opinion, his duties as Manager, Pricing and Marke·.ingIntermodal were more clerical than managerial.
The Claimant further avers that the Railway Labor Act
definition of an "employee" should be rejected by this
Committee since labor protective statutes such as the
Transportation Act of 1940 and its progeny, New York Dock,
have absolutely no relation to the Railway Labor Act. The
Claimant maintains that other Federal statutes have given the
term "omployee" a much broader definition. According to the
Claimant., the-legislative history relating to the
Transportation Act of 1940 clearly demonstrates that Congress
intended labor protective agreements to encompass all those
individuals in its employ, not merely those who are subject
to union representation as claimed by the Carrier. For all
these reasons, the Claimant insists that he was an employee
of the Carrier when his employment terminated and therefore
was entitled to the labor protective benefits mandated by the
New York Dock Conditions.
Mr. Benham further asserts that the Carrier never gave
him advance (i.e. 90 day) notice of his transfer to North
Billerica as required by the New York Dock Conditions.
Rather, it caused him to believe that he had no choice but to
relocate to North Billerica or lose his job. The Carrier
therefore violated Section 4 of the New York Dock Conditions,
in Mr. Benham's opinion.
Mr. Benham stresses that he was entitled to a separation
allowance in accordance with Section 7 of the New York Dock
Conditions . He also contends that he was entitled to the
protective conditions prescribed by the BRAC Master
Implementing Agreement dated October 17, 1984, inasmuch as he
was an employee of the Carrier who was not represented by a
labor organization. Even outside the New York Dock Conditions
and the BRAC Master Implementing Agreement, the Claimant
submits that he was entitled to redress under 49 U.S.C 11347
inasmuch as he was placed in a much "worse position" as a
6
result of his forced transfer to North Billerica in July,
1984.
Based on all the foregoing, the Claimant argues that,
under the New York Dock Conditions; the Washington Job
Protection Agreement; and the BRAC Master Implementing
Agreement, he is entitled to one year's salary less the
$4500.00 voluntarily paid him by the Carrier when he
resigned.
CARRIER'S POSITION
The Carrier interposes three principal arguments to Mr.
Benham's claim for a separation. allowance. Initially, the
Carrier contends that-Mr: Benham is not entitled to a
separation allowance pursuant to Section 7 of the .New York
Dock Conditions since he was not an "employee" as that term
is customarily used in the railroad industry and applied in
the New York Dock Conditions. The Carrier insists that the
degree of responsibility and the level of independent
judgment required of the Claimant in his capacity as Manager,
Pricing and Marketing - Tntermodal made him an "official,"
not an "employee." Yet, according to the Carrier, the ICC
always _:. tended labor protective benefits to be afforded only
to "employees" of a railroad, and not to its "officials."
Even assuming, strictly arguendo, that the Claimant was
pro:ec`ec under the New York Dock Conditions, nevertheless,
he was still not entitled to a separation allowance, in the
Carrier's opinion, since he was not a "dismissed employee" as
that term is defined in Section 1 (c) of the New York Dock
7
Conditions. The Carrier stresses that Mr. Benham
was
no+, a
"dismissed employee" since he voluntarily resigned his
employment.
Finally, the Carrier avers that inasmuch as Mr. Benham
was an official, he was beyond the scope of the BRAG Master
Implementing Agreement. Consequently, the protective
conditions set forth in that Agreement were inapplicable to
him. For all these reasons, the Carrier respectfully requests
this Committee to deny the Claimant's request for a
separation allowance.
FINDINGS AND OPINION
While the underlying question before this Committee is
whether the Claimant is entitled to any. of the protective
benefits mandated by the New York Dock Conditions, there are
actually three (3) issues which must be resolved, namely
whether Mr. Benham was an "employee" or an "official" of the
Carrier; if so, was he a "dismissed employee" as that term is
defined in Section 1 (c) of the New York Dock Conditions; and
finally, was the Claimant entitled to the protective
conditions provided by the BRAC Master Implementing Agreement
dated October 17, 1984 ? Each of these issues shall be
addressed individually in this Opinion.
WAS JAMES M. BENHAM AN "EMPLOYEE" OR AN "OFFICIAL ? "
This determination is crucial since if, in fact, the
Claimant was an offical of the Carrier when he left its
service in August, 1984, then he is not antitled to the
protective conditions provided by the New York Dock
8
Conditions. Conversely, were he found to be an employee of
the Carrier, then Article IV of the New York Dock Conditions
would govern his claim for a separation allowance.
Unfortunately, the ICC has never formulated a precise
definition of either "employee" or "official." However, as a
result of ICC administrative rulings; judicial decisions;
and arbitration opinions under the New York Dock Conditions,
criteria have evolved to assist us in determining whether Mr.
Benham was an employee as he claims, or an official as the
Carrier asserts.
For instance, the ICC has considered the level and the
amount of supervisory authority held
by
one claiming New York
Dock protection significant. Also, whether the position
occupied by one seeking protective benefits was subject to
representation by a labor organization, though not actually
represented by any organization, has been considered
important. Moreover, whether a claimant possessed skills
which were readily transferable was deemed a relevant factor.
Evidently, it was assumed that such individuals enjoy
sufficient skills to enable them to protect themselves from
the consequences of a consolidation and therefore do not
require the protection afforded those employees whose skills
are indigenous to the railroad industry.
An individual's rank and job title have nbt beer,
considered controlling elements when determining whether an
individual claiming protective benefits is an employee or an
official. Rather, it is the nature and job content of his/her
petition that is determinative. However, one's salary has
been deemed a relevant consideration. This Committee wishes
to state that, in our vi.ew, the degree of supervisory and
policy making responsibility required of a position being
evaluated must also be weighed.
This Committee agrees with the reasoning of the U.S.
Court of Appeals for the Fourth Circuit in Edwards
v.
Southern Railway Company, 376 F. 2d, 665, wherein it queted
the ICC as follows:
"... in the final analysis rank and title are
not controlling in defining the work of
subordinate officials, and we are unable to
conclude that there is ariy fixed .outstanding
factor which
will
always control without
exception. We do not believe that as a practical
matter it is feasible to make a definite line
of demarcation between the work of subordinate
officials and that of officials- ....Each proceeding
therefore, must of necessity be decided upon the
record."
Though the precise question before the ICC in the above
referenced proceeding was whether a subordinate official of a
railroad was an employee under the Railway Labor Act,
nevertheless the reasoning of the ICC is equally applicable
to disputes such as the one at hand. In our judgment, the
entire record must be examined to ascertain whether Mr.
Benham was an employee or an-official of the Carrier when he
tendered his resignation in August, 1984.
After thoroughly examining the plethora of evidence and
arguments advanced by both the Claimant and the Carrier what
is clear to this Committee is that the Claimant possessed
attributes of both an employee and those of an official when
he held the position of Manager, Pricing and Marketing -
10
Intermodal . For example, it appears that he did not
supervise any employees; he had no authority to either hire
or fire employees; his salary was less than that earned by
many unionized rank and file employees on the property; and
Mr. Benham's supervisory and policy making responsibilities
were limited. According. to the Claimant, he merely applied
rates based on a predetermined formula calculated by
management. Were our analysis to end here, this Committee
would be inclined to agree with the Claimant that he was an
employee, not an official as claimed by the Carrier.
However, the facts also evidence that Mr. Benham's
position as Manager, Pricing and Marketing - Intermodal, wasnever represented by a labor organization on the Delaware and
Hudson Railway Company. Nor, evidently, did any labor
organization ever attempt to represent this position.
Moreover, the Claimant obviously enjoyed.skills which were
easily transferable. Mr. Benham declared in his Affidavit to
this Committee that he obtained employment with Distribution
Unlimited, Inc. as a sales manager in the middle of August,
1984. It is significant that Mr. Benham obtained gainful
employment approximately two (2) Weeks after he tendered his
res'gnation to the Carrier.
It is also noteworthy, in the opinion of this Committee,
that ;n h_s capacity as Manager, Pricing and Marketing -
In :arroda_, qtr. 3enham was entitled to numerous fringe
benefits which were not granted rank and file employees, or
if they were, were less beneficial than those afforded him.
Moroever, when Mr. Benham transferred to North Billerica, he
was given the relocation expenses that other officials of the
Carrier received. Mr. Benham was also retained on the payroll
for two (2) months after he tendered hio resignation which is
not a benefit afforded rank and file employees.
After weighing and evaluating all of the foregoing
considerations, this Committee is compelled to conclude that
James Benham was not an "employee" of the Carrier and
therefore was not entitled to the protective benefits
prescribed by the New York Dock Conditions.
WAS 3AMES M.
BENHAM A "DISMISSED EMPLOYEE ?"
Even were Mr. Benham deemed to be an employee, not an
official, of the Carrier at the time of his resignation, he
still would not be entitled to the protective benefits of the
New York Dock Conditions, in the opinion of..this Committee,
since he simply was not a "dismissed employee" as that term
is defined in Article I, Section 1 (c), of the New York Dock
Conditions. Article I, Section 1 (c), defines a dismissed
employee as one who is "... deprived of employment with the
railroad because of the abolition of his position ...."
However, it is obvious that Mr. Benham was not deprived of
his employment with the Delaware and Hudson Railway Company.
The Claimant's position as Manager, Pricing and Marketing -
Intermodal was not abolished by the Carrier. Rather, he
voluntarily resigned this position when he found the working
conditions at North Billerica not to his liking.
12
It is clear to this Committee that the separation
allowance provided by Article I, Section 7, of the New York
Dock Conditions was not available to Mr. Benham since he was
not a dismissed employee. By its very terms, Article I,
Section 7, provides a separation allowance only to dismissed
employees. Moreover, there is no claim before this Committee
that Mr. Benham was coerced into resigning his position with
the Carrier. It was entirely a voluntary decision on his part
for the reasons expressed in his August 6, 1984, letter of
resignation which reasons he reiterated in the Affidavit he
submitted to this Committee.
Inasmuch as James Benham was not a "dismissed employee"
as that term is defined in Article I, Sect=on 1 (c), of the
New York Dock Conditions, he would not be entitled to a
separation allowance even were he considered an employee of
the Carrier at the time of his resignation.
WAS JAMES M. BENHAM ENTITLED TO THE PROTECTION PROVIDED BY
THE BRAC 1984 MASTER IMPLEMENTING AGREEMENT ?
It is the considered opinion of this Committee that as
an official of the Carrier, the Claimant was not entitled to
any of the protective benefits provided by the BRAC Master
Implementing Agreement. The provisions of that Agreement were
obviously not extended to officials of the Carrier.
Furthermore, it must be noted that the BRAC Agreement was
executed cn October 17, 1984, two (2) months after Mr. Benham
tendered his resignation to the Carrier. Even were that
Agreement retroactive as he claims, nevertheless Mr. Benham
would not be entitled to its protective benefits since his
13
position as Manager, Pricing and Marketing - Intermodal,
never fel-l-within the scope of the 9RAC collective oargaining
agreements. The Claimant's pocitior.
:-s:.
not. oacocinas-ei
w
'th4n
BRAG's juri-,di,~ticn aven though Mr.
L L
lienham retained
hi:; BRAC seniority while serving as an official of the
Carrier. In our ,,:dement, Mr. B·:nham was simply not
protected employee working under the scope of the hr~;C
Agreement and was therefore not entitled to the protective
conditions which BRAC secured for its members by the October
17, 1984, Master Implementing Agreement.
AWARD
James M. Benham was not entitled to -a separation
allowance under the New York Dock Conditions nor was he
entitled to the protective benefits provided by the 1984 BRAC
Master Implementing Agreement. Accordingly, his claim must be
denied.
z?~
~*- eq-
Ac-c:~
Robert M. O'Brien, Neutral ".ember
Dated : ///*,9~pG
Douglas J. Broda, Claimant's Member
Dated:
Daniel J. Kozak, a r~Jer Mem e
Dated U:
14