In the Matter of Arbitration Between ) OPINION AND AWARD
Before an Article I,
Section 11, Arbitration
BROTHERHOOD OF MAINTENANCE OF WAY EMPLOYEES ) Committee
)
And ) Nicholas H. Zumss,
Neutral
CSX TRANSPORTATION. INC. )
RACKG8S
The undersigned Neutral vas selected as Chairman of an Arbitration
Committee established pursuant to Article I, Section 11 of Appendix I of
I.C.C. Finance Docket go. 28250 (bareinaftor 'Mow York Dock· or 'HID.')
Hearing was hold on October 17, 1990 in Vashinston, D.C. at which time
exhibits veto offered and received into evidence and oral argument was
heard. The parties presented pro-hearing submissions. The Brotherhood of
Maintenance of Vat Employees (hereinafter 'SMVM' or 'Organisation') was
represented by L. Pat VyeN, Esquire with John 0'·. Clarks. Jr., Esquire an
brief, and the CSK Transportation, Inc. (hereinafter 'CSI' or 'Carrier') vas
represented by Robert Kirk with J. t. Villiams on brief.
STATEMENT Or rHS PACTS
On or about October 5, 1911, CSK served notice on the DMVZ that it
intended to sell its line between Bad Axe and Saginaw, Michigan to the Huron
and Eastern Railway Company. Inc. The I.C.C. imposed NYD labor protective
conditions on the Carrier in its order dated December 19, 1988. CSI and the
BMWE entered into an Implementing Agreement dated December 14, 1988 that
provided WO labor protection benefits for employees adversely affected as a
result of the sale of the line. The sale vas effective December 23. 1988.
Both parties agree that effective December 28, 1988. three 5MV!represented positions were abolished as a result of the line sale. The
incumbents in the positions were Frank Huron. Sr., Robert Foster, and
Kenneth Noviski. These three employees displaced into other positions,
which precipitated a series of displacements set forth in the record. The
balance of the 14 Claimants in this case are those employees in the displacement chain.
The Carrier concedes that J. A. Brasfield, W. River& and J.C. Roscoe
were furloughed and C. Kimble was forced to a lover rated position as a
result of the displacements. CSE submitted test period averages ('TPA') to
the AM in order to form the basis of NYD protection benefits. By letter
of December 14, 19·9, the Carrier took the position that the other Claimants
had exercised their seniority to an identical position and therefore did not
meet the criteria for certification as displaced employees under M. The
Carrier further stated that the remaining Claimants had worked in the same
foreman or trackun positions, at the sale rate of pay and in the saw
seniority district both before and after the line sale and were therefore
not entitled to NYD benefits.
In commenting on the TPAs of the 10 Claimants in dispute, the L14WE
notes:
Although a number of the Claimants haw furnished their payroll
statements for a number of the months of the protective period, it
is impossible to precisely calculate their monthly earnings
because the payroll statements do not necessarily coincide with
the end of the calendar month. Also, the payroll statements do
not permit comparison based on test period hours.
NYD Appendix I provides as follows:
1. Definitions. -(a) 'Transaction' means any action taken
pursuant to authorisations of this Commission on which these
provisions haw been imposed.
(b) 'Displaced erployeee means an employee of the railroad
who,
as a result of a transaction is placed In a worse position with
respect to his compensation and rules governing his working
conditions.
(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.
(d) `Protective period` means the period of time during which a
displaced or dismissed employee is to be provided protection
hereunder and extends from the date en which an employee is
displaced or dismissed to the expiration of 6 years therefrom,
provided, however, that the protective period for any particular
employee shall not continue for a longer period following the date
he was displaced or dismissed than the period during which such
employee was in the employ of the railroad prior to the date of
his displacement or his dismissal. For purposes of this appendix,
an employee's length of service shall be determined in accordance
with the provisions of section 7(b) of the Washington Job Protection Agreement of May 1976.
3. Displacement allowances.-(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, 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 deter.
mined by dividing separately by 12 the total compensation received
by the employee and the total tire for which he was paid during
the last 12 months in which M 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 shall also be adjusted to reflect subsequent
general wage increases.
If a displaced employee's compensation in his retained position in
any month is less in any month in which he performs work than the
aforesaid average compensation (adjusted to reflect subsequent
general wage increases) to which he would have been entitled, he
shall be paid the difference, less compensation for time lost on
account of his voluntary absences to the extant that he is not
available for service equivalent to his average monthly tints
during the test period, but if in his retained position he works
in any month in excess of the aforesaid average monthly time paid
for during the test period he shall be additionally compensated
for such excess time at the rate of pay of the retained position.
(a) In the event of any dispute as to whether or not a particular
employee was affected by a transaction, it shall be his obliga.
tion to .identify the transaction and specify the portinanot facts
of that transaction relied upon. It shall then be the railroad's
burden to prow that factors other than a transaction affected the
employee.
The question to be resolved is whether Claimants are ·displaced· or
'dismissed' employees within the meaning of the M conditions. If so, than
the labor protection benefits claimed should be awarded.
POSITION OE 711E ANNA
The BMWE maintains Claimants are entitled to labor protection benefits
according to the MM conditions.
The IMV2 contends that there is no dispute that Claimants chanted
positions as a direct result of an I.C.C.-approved transaction.
The BMWE resets CSX's position that an employee is not placed in a
'worse position' under NYD so long as the employee obtains a position with
the same rate of pay and In the same seniority district as the position from
which the employee vu displaced. Moreover, the IMVR rejects CSI's position
that there is net necessarily an 'adverse affect' as a result of a ·transaction· in a situation where an employee who has been displaced earns less
money per month boom=@ many factors unrelated to the transaction affect the
amount of compensation in any given month.
The bMW6 relies heavily on the so-called Bernstein decisions betwen
the ERAC and the Chesapeake and Ohio Railway Company, which appear in the
record. Particular reliance is placed on Docket No. 62, in which Referea
Bernstein rejected the carrier's argument that, ·...se long as an employee
has a position -- full time position -- with a rate of pay equal to or
greater than that M received at the time of the coordination, he cannot be
eligible for a displacement allowance.'
The BMWE further maintains that the computation referred to in M
Article I, Section 5 for determining lose of compensation is the TPA and any
month's earnings below the TPA makes an affected employee eligible for 111fD
benefits. The WE contends that this interpretation represents the literal
meaning of the language of MM. The EWE, again relying on the Bernstein
reasoning, urges that the focus of the inquiry as to eligibility for N!D
benefits should be lose of compensation, not a negative change in the rate
of pay.
POSITION OF CSZ
CSX contends that Claimants, hereinafter excepting the four specifi.
cally admitted and cited, are net entitled to labor protection benefits
under NYD because they were not adversely affected by any I.C.C.·approved
transaction.
Citing Article I, Section 11(s). the Carrier argues that the burden of
proving that Claimants are in a worse position as to compensation as a
result of a transaction is on the Organization and it has failed to sustain
its burden of proof. CSx rejects the bMVE's position that Claimants were
placed in a worse position as a result of the transaction. and therefore
rejects the Organization's contention that they are 'displaced' or ·dis·
missed' employees under NYD. CSx maintains that Claimants. continued to hold
positions after the transaction with 'tomparabh! earnings' to those hold
before the transaction.
CSX contends that Claimants have not suffered any 'adverse effect' as a
result of a transaction and that the burden has not shifted to CSX to prove
that causes other than a transaction negatively affected Claimants' earn.
in;s, CSX further maintains that the WE has not proved that Claimnta'
`overall earnings potential vas reduced following the transaction... ·
therefore rendering moot the question of causation. The Carrier argues that
the briVE is seeking 'automatic certification for a displacement allowance
and/or test period averages to certain employees merely because an abandon.
sent occurred.'
Finally, the Carrier contends that even if Claimants are found to haw
lost earnings, that loss of earnings vas caused by an intervening factor,
not the transaction at issue. Therefore, Claimants are still not entitled
to NYD labor protection benefits. The Carrier maintains that the lWi has
not sustained its burden of proving a causal name between any presumed
adverse affect and the transaction. CSX argues that an employee's earnings
fluctuate for many reasons not related to a transaction. CSX maintains that
if there vas any fluctuation in the earnings of Claimants, it van due to
'factors such as the number (of) work days in the month. the punt of
overtime required and the overall level of business.' the Carrier also
notes that routine business fluctuations occur regularly and these would
have occurred whether or not the transaction occurred. Nonetheless, these
fluctuations de not give rise to the payment of M labor protection
benefits.
FINDINGS AND CONCIMSIONS
It is clearly settled that the Organization carries the burden for
proving the entitlement to NYD benefits. Hare, the BMfii must show that
Claimants were placed in a votes position by the actions of the Carrier and
that those actions veto related to an identified I.C.C.-approved transaction. Actual harm to Claimants must be shown as wall. 0n the facts
presented in the record, the Organisation has sustained its burden of proof.
Although there is arbitral authority for the Carrier's position that
rate of pay is a valid factor to examine in considering the potential harm
to a claimant and whether or not he is in a wrse position as to eompoesatLon, the more appropriate analysis vas enunciated by Referee Bernstein.
In Docket No. 62, Bernstein found:
'From this discussion it may be seen that neither `rate of
pay' nor the 'test period' average earnings is dispositive. The
Agreement sakes 'compensation' the test of 'vorse(ned) position'
and the test period formula provides the normal and usual yardstick of compensation. But, the eligibility of an employee for an
allowance depends upon whether any of the difference in compensation
is
a result of the coordination. Once the eligibility is
shown all the difference between a month's compensation after the
coordination and the 'test period' average is due the employee.
By adopting the average test, the parties undoubtedly anticipated
that some few windfalls would occur.'
Even the fluctuations inherent in the ordinary course of business, eels
the rate of pay only a useful but not determinative criterion to examine.
It is the compensation filtered through the TPA that shows whether or not an
employee has been placed in a worse position.
The decline in Claimants' compensations coincided in time and place
with the transaction in question which vas approved by the I.C.C. This
proximity, and the absence of proof of an intervening factor, establishes
the causal nexus bomen the transaction and the loss of compensation to
Claimants. The change in compensation clearly constitutes a harm to
Claimants, thus satisfying all the elements necessary for applying the NYD
benefits.
This board finds that the employee protective conditions of NYD
are applicable to Claimants herein and directs that Claimants be
paid the difference between the TPA and their actual compensation,
where applicable. If an exact correlation cannot be established,
the Board directs that the parties make their best efforts to
establish in good faith the amount of compensation owing within 30
days.
G/ 4
-NILch
N. 2us
Chairman and Pout taI
Date: