In the Matter of the Arbitration bet.een
ALLIED SERVICES
DIVISICN/BRO:'HEVCOD OF
RAILWAY, AIRLINE AND STEAMSHIP CLERICS,
FREIGHT HANDLERS, EXPRESS AND STATION E~T-LOYES
and
WESTERN RAILROAD ASSOCIATION
APPEARANCES
BEFORE
For the
Association
John S.
Godfrey
For the Union
Robert F
. Davis
Rodney E. Dennis
CARRIER'S EXHIBIT "A"
Section 11
New York Dock Cond:___ns
Assistant to the President
and Association
Board "'.ember
General Secretary/Treasurer
and Union
Board
Member
Chairman, Arbitration Bo:
As of October 1, 1982, Claimants were properly-placed on protective status and were to be paid a monthly displacement allowance in accordance with New York Dock Conditions. Claimants L.P.
Wiggins, R. Passarelli, H. Dragisic, and R. Lopacinski were highly
skilled white-collar workers who had been engaged in the processing
of proposals for the establishment of freight rates for member
Carriers. During the months of August and September 1982, Claimants
had also worked for Carrier on a voluntary basis moving furniture,
files, and office equipment into its newly remodeled office space
at 222 S. Riverside Plaza, Chicago, Illinois. They worked nights
and weekends and were paid on a time-and-one-half basis. When
Claimants' displacement allowances were calculated, the Association
did not ~.zclude the money they earned on the moving project. Petitioner claims that this money should be included in the displacement
allowance calculations. A claim was filed that has resulted in
this arbitration.
THE ISSUES PLACED BEFORE THE
ARBITRATION
BOARD
1. Did the Association properly calculate the
1·-1,roment and/or dismissal allowances due
c, R. Passarrelli, R. Lopacinski, and
when it excluded certain payments
aye to -.`.e _..,._. __~a:s =l.:. _n3 _::e _as:. _:e::e
mcn:'-s in :`e-!
per.~r.-_ed ser:i~a _.--ed:a=el,
preceding t::e date
c.4
t`:eir d-splacement and, or
dismissal.'
2. If the answer to the above
question is
.in the
regat_ve, are the clalmants entitled to have their
protected rate recalculated and to be paid the
difference in pay beginning with their protective
period and continuing .throughout its duration?
NEW YORK DOCK PROVISIONS PERTINENT TO THIS DISPUTE
Section 5.a.
So long after a displaced employee's displacement as he is
unable, in the normal exercise of his seniority rights under existing
agreements, rules and practices, to obtain a position producing
compensation equal to or exceeding the compensation he received
in the position from which he was displaced, he shall, during his
protective period, be paid a monthly displacement allowance equal
to the difference between the monthly compensation received by
him in the position in which he is retained and the average monthly
compensation received by him in the position from which he was
displaced.
Each displaced employee's displacement allowance shall be
determined by dividing separately by 12 the total compensation
received by the employee and the total time for which he was paid
during the last 12 months in which he performed services immediately
preceding the date of his displacement as a result of the transaction
(thereby producing average monthly compensation and average monthly
time paid for in the test period), and provided further, that such
allowance'shsll also be adjusted to reflect subsequent general
wage increases..
T`:e Union
The Union contends that the Association should have included
all compensation earned by Claimants during the 12 months prior to
their displacement in the calculation of their respective displacement allowances. In support of its position, the Union presents the following arguments:
(1) The language of Section 5, Paragraph 2. is clear and
unambiguous. It states that the "displacement allowance shall
be determined by dividing separately by 12 the total compensation
received by the employee" during the 12 months he performed service
prior to his displacement. Nowhere in the language pertinent to
this dispute is any exception of any kind made in regard to compensation received during the 12-month period prior to displacement.
(2) Claimants received compensation for work performed as
employees of the Association. The money appeared in their regular
paychecks and it was not designated as money earned while Claimants
ha¢ any status other than employees of the Association. The Assoc
tion's argument that Claimants operated as subcontractors during
the mns ~~-· is not valid.
i 7`:e a:g:.7enc ^resenced -_ :.'.e
Asscc_ac_.n _-a_ _-.e __..
cer:ormed
by
Claimants was not- ·.;ork covered by the Sc:=e ..,._e c:
work related to Claimants' basic position is not relevant. Secci:n
5 does not exclude any work performed by an employee for the Cc;npany in the calculations to establish a displacement allowance.
(4) There are numerous arbitration awards that support this
position.
The Association
The Association contends that the compensation earned by Claimants
while they were engaged in the "moonlighting project" is not compensation that should be included in the calculation of displacement
allowances. In support of its position, it presents a number of
arguments, chief among them are the following:
(1) The Claimants involved*here are highly skilled white-collar
workers who are not called on under any conditions to perform
manual labor. All compensation earned by these men on their basic
jobs were included
in
the calculations of their respective displacement allowances.
(2) The work performed by the Claimants was
on a volun
basis. It was not work covered under the HRAC Scope Rule an
.;o: granted _.. accor:ance ~_=h terms of c`:e :cnc: ._1_::g :,.fir=e-en_ .
work opportunity was offered in or:!er to allow Associaci:n a^ployees clte chance to make extra money on a moonlighting basis.
The fact that Claimants were paid at brae-and-one-half their base
rate and the pay was included in their regular paychecks has no
significance. Despite this, the Association considered these
people to be subcontractors, not regular employees covered under
the Controlling Agreement.
(3) While the Union argues that all moneys earned, regardless
of the conditions under which they were earned, should be included
in the allowance calculations, there are numerous arbitration awards
to the contrary.
FINDINGS
After considerable review of the material presented by the
parties and a detailed reading and study of prior awards submitted
by borh parties, this Hoard is persuaded that the weight of the
probative evidence is supportive of the Association's position.
We have concluded this in spite of the fact that the pertinent
Agreement language appears to support the Union's case.
Tf- ^-^··act language clearly states that when an employee
11
d;sp:ace.,.enc allowance is ~a.eterWined, the salary 'case _c cr _s2for calculation shall be the total compensation earned dur j.-..3 _=e
12 months preceding the date of the employee's displace..^..ent. :'he
critical question here is what constitutes total compensaticn for
purposes of calculating the displacement allowance? Specifically,
should the overtime wages earned by Claimants on the moving project
during August and September 1982 be included in the calculations?
Based on a reasonable application of New York Docket Conditions,
the materials presented at the hearing, and the prior awards on
the issue, we can find no basis for answering yes to the latter
question..
New York Dock Protective Conditions were implemented to save
employees harmless from loss of pay and job status when they were
adversely impacted as a result of a transaction. A practical
interpretation of that app_ication is that an employee should not
be awarded a monthly displacement that would cause him to be
I
financially better off or worse off than if he continued to work
his job. To include one-time windfall earnings in the calculation
of the displacement allowance would tend to inflate the monthly
allowance above what should reasonably be anticipated.
Claimants performed a moving job for the Association.
had : claim to the work nor was the work granted
_~_=_'°?S :,.
zt`:er
_.-.d^ d ..,__.._3-, ~d5_S. -'.'.° _3c_ _.'.~_ _.'._
-.'.pioyer chose to pay the:a at the overtime rate and :r.c:,~de :`:e
wages earned in their regular c::ecks in no -way makes the work ;art
of the Claimants' jobs that were eliminated as a result of the
coordination.
The bulk of the awards cited in the record by both parties
clearly exclude from calculation of the 12-month average earnings
from casual or unassigned overtime as well as most other forms
of compensation received by employees not directly related to their
basic jobs. We see no reason in this case to decide otherwise.
To include the overtime earned on the moving project in the calculation of the Claimants' displacement allowance would be to strain
the definition of the term total earnings beyond what a reasonable
review of the facts could require.
AWARD
The
answer
to question one is yes
A.~o'
a
R. . Dennis, Neutral
Member
S.
~-4
1.V.
ociacy n Member
. F. DOis, nion
lea