IN THE MATTER OF ARBITRATION
before an
ARBITRATION COMMITTEE
under
ICC FINANCE DOCKET NO. 28250
(NEW YORK DOCK CONDITIONS)
APPENDIX III, SECTION 11
HEARING HELD IN ST. PAUL, MINNESOTA, NOVEMBER 2, 1982
PARTIES BROTHERHOOD RAILWAY CARMEN OF
THE UNITED STATES AND CANADA
TO
DISPUTE:
and
BURLINGTON NORTHERN RAILROAD COMPANY
STATEMENT File SCA 82-2-4H
OF (1) That the Burlington Northern Railroad
Company,violated the provisions and intent of.
CLAIM: Sections Six (6) and Seven (7) of Finance Docket
No. 28250 (New York Dock) when they failed to
provide protective benefits forthcoming as a result
of a transaction and Claimants were furloughed at
Kansas City, Missouri.
(2) That the Burlington Northern Railroad
Company, hereinafter called the Carrier, be
required to compensate Carmen;
Phyllis M. Manley
K. 8. Riley
Thomas R. Prichard
David B. Blake
Jeffrey R. Bailey
H. Baptiste, Jr.
J. H. Cheatum
R. J. Utter
B. Cummings
S. R. Peek
M. E. Robinson
C. L. Manley
K. R. Payne
Frank Correnti
J. C. Henderson
M. I. Moore
H. A. Brock
hereinafter called the Claimants, their proper
protective compensation as provided in Section
6 & 7 and all fringe benefits as provided in
Section 8, pursuant to Finance Docket No. 28250
(New York Dock).
C
U
_q S I
0 N
This dispute arose based on the Carrier's action in
reference to change in force levels for Carmen at the
Rosedale and Murray Yards in September 1981. Seventeen
employes, the Claimants herein, were displaced and claimed
that this was as a result of a "transaction", requesting
protective benefits under the New York Dock Conditions.
As background to the dispute, the Burlington Northern
(the Carrier herein) and the St. Louis San Francisco Railway
Company effected a merger as of November 21, 1980. Following
this, on January 29, 1981, the Carrier and the Organization
entered into an Implementing Agreement, recognizing coverage
of New York Dock Conditions (Finance Docket No. 28250). The
Implementing Agreement specifically referred to the locations
at issue here, as follows:
3. Consolidation of St. Louis and Kansas City
facilities and functions:
(a) As a result of this transaction, certain
Frisco Carman assignments at Rosedale yard will be
abolished and consolidated with BN work at Murray
yard, North Kansas City, Missouri; and, thereafter,
all car department functions in the Kansas City
terminal will be performed on a coordinated basis
under the BN collective agreements . . . .
The sole issue for resolution by the Arbitration
Committee is whether the Carrier's action in September 1981 -eight months after the date of the Implementing Agreement -was a "transaction" resulting from the merger, as claimed by
the Organization or whether it was a result of "factors other
than a transaction".
Relevant portions of the New York Dock Conditions are
as follows:
1. Definitions. - (a) "Transaction" means
any action taken pursuant to authorizations of
this Commission on which these provisions have
been imposed. '
Section 1 (c) of the Conditions reads as
follows:
(c) "Dismissed employee" means an employee
of the railroad who, as a result of a transaction
is deprived of employment with the railroad because
of the abolition of his position or the loss thereof
as the result of the exercise of seniority rights
by an employee whose position is abolished as a
result of a transaction.
11. Arbitration ~Lf Disputes . . .
(e) In the event of any dispute as to whether
or not a particular employee was affected by a
transaction, it
shall be his obligation to identify
the transaction and specify the pertinent facts of
that transaction relied upon. It shall then be the
railroad's burden to prove that factors other than
a transaction affected the employee.
The Organization argues that, from the outset of the
merger, the Carrier took advantage of the opportunity to
consolidate the two nearby facilities which were previously
required by the former separate carriers. This is clearly
indicated in the Implementing Agreement. Further reductions
in the Rosedale facility in September 1981 were, in the
Organization's words, "simply one step. . . in the Carrier's
plans, resulting from the merger, to consolidate all Carmen's
work in the Kansas City area in one facility /Murray/". In
its submission, the Organization states that the Rosedale
facility was completely closed by September 1982. The
Arbitration Committee notes that this took place long after
the filing of the claims under review here and thus is of
doubtful relevance; however, it does go to enhance the basic
argument on which the Organization rests its case.
The Carrier, however, takes up the burden of showing
that "factors other than a transaction" formed the basis of
the September 1981 force reduction. This other factor, the
Carrier argues, was purely and simply a decline in business.
The Carrier argues such adverse business condition would have
required a force reduction for both carriers, if no merger
had taken place, or for the merged Kansas City operations.
Such reduction in force as a means to "reduce expenses" is
covered by Rule 22 (a) of the Schedule Agreement, which reads
as follows
(a) When it becomes necessary to reduce
expenses, forces will be reduced. When forces
are reduced, employees will be laid off in reverse
order of their seniority, employees remaining in
service to take the rate of the job to which assigned.
When a holiday occurs in the-assignment of the
employees work week, the work hours for that
assignment
will be thirty-two (32) hours, except for those
employees who are given four (4). calendar days'
advance notice that they will work.
Rule 27 (a) of the St. Louis San Francisco Agreement
reads to similar effect.
Detailed analysis of the statistics provided by the
Carrier is not required here. The following are some
examples of the data:
In the
Springfield District,
of which Kansas City is
a
part, carloadings declined from 62,401 in November 1980
to 46,118 in November 1981, to use comparable figures absent
seasonal fluctuation. This is a decline of 26 per cent.
Train miles declined from 320,249 in February 1981
to,247,744 in August 1981, a decline of more than 22 per cent.
Yet the change in number of Carmen employed at Rosedale
and Murray Yards declined only 13.4 per cent from November 1,
1980 (149 Carmen) to October 1 (129 Carmen),
according to
the
Carrier's figures.
At the arbitration hearing, in response to certain
contentions by
the Organization that statistics supplied
earlier were not directly applicable, the Carrier offered
information specifically related in Kansas City. While such
material had not been presented earlier for Organization
review, it appears to support further the Carrier's basic
contention that the reduction in force which is the subject
of the claim was caused by the effects of a steady decline
in business.
It is obvious, as the Organization argues, that the
merger had its long-range effect as to the consolidation of
operations at Rosedale and Murray and the eventual elimination
of the Rosedale Yard. However, this by itself does not
explain the decline in force beyond that effective at the
time of the Implementing Agreement. The Carrier has
sufficiently proved that the reduction in force in either
or both points at the time of this dispute was rationally
grounded in concern for reduction in expense owing to decline
in.business.
Public Law Hoard No. 3160, Award No. 1,
involving
the same Carrier, is relevant in its argument,
which states
in part:
Changes in volume of Carrier's business, which
results in an employe's loss of earnings or furlough
is not a "transaction" within the meaning and intent
of the Merger Protective Agreement. Lost earnings
or furloughs resulting from a decline in business
is not a direct result of a "transaction", and such
employes who lose earnings or are furloughed do not
qualify for protective benefits under the
definitions in the Merger Protective Agreement.
A W A R D
The Carrier did not violate ICC Finance Docket No.
28250 (New York Dock Conditions) as to the Claimants herein.
The claim is denied.
New York, New York
Dated: January 17, 1983
ARBITRATION COMMITTEE
HERBERT L.
MARX, JR.,
Neutral
and Chairman
R. P. WOJ WICZ, ploye Member
CLEMENT LANE, Carrier Member