In
the Matter of
Arbitration, between:
INTERNATIONAL BROTHERHOOD OF ELECTRICAL, WORKERS
Syct ox counci 1 140. 6
and
CSX TRANSPORTATION, I NC.
Decision of Arbitration
Goauaittas
pursuant to Article I, Sect ion 11
of
the
New York Conditions (350 I. C. C. 60 ( 1 979> )
Imposed
by the
Intsratnte Coa=orce Commicalon
in
Finance
Docket No. 28905
(Sub No. 1)
John C. Fletcher, Chairman h Neutral ember
C. A. Meredith
, Employee
Member
IBEV, System Council No. 6
7 NC R OD LX TI ON:
October 9, 1990
R. D. Hiel, Carrier
Ylemb.er
CS'SC Transportation, Ins.
On January 26, 1987, Carrier aQrved notice on the
Organization, pursuant to the provisions of the
September 25,
1964, National Agreement of its
intent to transfer certain
mechanical work f ram It& Louisville, Kent ucky
shops t o Corbin,
Kentucky. Five months
later, to the day, en
IaiplQmonting
Agreement was reached, which provided that New York Dock
Conditions, (Now York Dock RailwnY Goa_S__rol - 9rooklyn Eastern
1V Y0
Arbi t
ra t .
MGxGihan ;
p strict Tertninal. 360 I. C. C. 60 (1979) ), would be applicable t
the transaction.
Mr. C. T. McKeehan, the herein Claimant,
retained
seniority in the
Electrician's Craft at Louisville, Kentucky.
However, at the time of the
transaction he vas working as a
non-agreement
Supervisor at Carrier's Evansville,, Indiana
Locomotive Shop. In late 1987,
Carrier downsized
its non
agreement Supervisory work force. McKeehan, because of his
relatively
low ranking in this group, was
released from his
Supervisory position. On November 12, 1987, he exorcised his
Electrician's Craft seniority.
McKeehan vas allowed to place himself at Corbin.
HQ
vas advised that his Test Period
Average, for protective pay
purposes, would be computed in the following
manner:
I n order t o comput a
what
your protected rate
would have been if
you had bean an electrician
at South Louisville at the tune of the
transfer
of work to Corbin, we
have
requested tho.Tert
Period Averages computed at the time of the
coordination for
the contract employees
im-diately above and
below you on the
seniority
roster. An soon as
that 1 of oraet i on i s
available, tags trill take an average of those
two Test Period
Averages and that amount
will be used as your guarant es rate. Thi s
uri11. not be equivalent to your supervisory
rate of pay.
The Organization filed a protest to this method of
computation of McKeehan's Test Period. It asked that
his Test
Period be
determined
as provided in the
second
paragraph of
Section 5(a) of the Conditions.
It is the parties disagreement on
the
method of
establishing Mr.
McKeehan'c Test Period Average which is the
dispute before
this Arbitration.
Pant
2 of 13 a~i
cPa
QUESTI ON AT I SSUE:
matter to
NYD Arbitratso
XcXeehan TP.
The Organization fashions the Question at Issue in this
be:
(1) Is Electrician C. T. XcKaehen entitled to
a Test Period Average under New York Dock
derived
free his earnings received in the
twelve (12) months i n
which he
performed
services immediately preceding the date of
his displacement?
C2) As en employee
protected
under New York
Dock, what is the amount of the Test Period
Average for Electrician C.
T. 1·lcKaehan?
While Carrier fashions it slightly
different:
Was the Teat Period Average of Corbin, Kentucky,
Electrician C. T. MGXeshan properly arrived at
by the Carrier's
method
of computation?
There are no procedural or jurisdictional i .npeditftents
to an award on these questions.
THE POSITION
OF THE PARTIES:
The Position of the Organization:
The Organization
contends~that the only
proper method
of computing Mr. McKeehan's Test Period Average is to literally
follow the method set forth in Section 5 (a) of the Conditions.
In doing so, it argues,
Carrier
must consider Claimant's earnings
received in the twelve months in which he performed
Carrier
service 1=4diately preceding the Date of
hi: displacement,
which
must include his earnings
as a
non-agreement
supervisor.
The
Organization argues that Carrier's
suggaatad method
of establishing Claimant's Test Period Average, averaging the
earnings of the individuals above and below
McKeehan and
averaging these results to determine his TPA is
arbitrary and
without basis under the Implementing
Agreement or the Conditions.
Po,Te 3 o! 13
'De Qes.
v.
NYD .(rbi t re
I i
McA'eehen i.
7n support of its position the Organization relies upc
n number of Awards of various tribunals, but mainly it
bottoms
its cast on New York Dock Arbitration, TC;U y. LIZ.,-
Stallworth,
Arbitrator, (February 28. 1989), which concluded that:
The proper
method for computing fast period
overages is
to include both egreeme,pt
and non
agreeemnt
compensation earned during the
test period.
The Organization asks that this Arbitration establish
Claimant's TPA
et $3,475.00 per month. (his average
monthly
compensation as a supervisor), plus Increases.
The Position of the Carrier:
Carrier contends that Claimant, (as a promoted employee
returning to the Craft
subsequent to the
Coordination), derivos
entitlement to protective benefits from
language within tht
Implementing
Agreement which only convoys:
,..
whatever rights (he) >any have had if
(he)
had boon present et the tiae of the
coordfnat ion.
The contemplates treating McKeehan as nn Electrician
and not as a
non-agreement
Supervisor when developing his TPA.
It argu" that the way it
.developed McKQehan' s TPA was
consistent with prior arbitration Awards on the subject. Carrier
cites a number
of
decisions on the subject, with particular
emphasis on sward 433, SBA 603, Eischen, Rsfaree, (May 21, 1984>,
stating:
I t 3 r unreasonable to
tho
point of abaurdi ty
to conclude that the official position worked,
irrespective of compensation, should
estebliesh
the protected rate which is the quid pro quo
for continued (rosumed) employability under
the
BRAC Agreement.
Carrier disputes that
the award of Arbitrator
Stallworth,
relied on by IBEW, la
appropriate because if it is
followed non-agreement Supervisory omployoea
returning to thQir
Pe.Te 4 of 13
nnooa.
Craft would receive more than:
... whatever rights they nay have had if
thoy had been present at the tire of the
coordination.
I t contends that the averaging enathod used in
determining Claimant's TPA was equitable and proper in
circumstances present in
this case.
DISCUSSION:
NYD Arb1 tratlon
McXvehen TPA
the
This teat involves the
correct method to be used in
establishing Test Period
Averages of an
Electrician who
performed
no service within his Craft In the twelve month period
irrmedietely preceding his return
to
his Craft and subsequent
inclusion within coverage of New York Dock protection. The issue
is whether his TPA should be based
on
compensation *armed in a
non-agreement
Supervisory position or if it
should be based on nn
average derived from the earnings of the two individuals
~im..^;ediatcly above and below him on the seniority roster.
(Carrier indicates that it has been unable to develop .any earning
data on Mckeahan as an Electrician
because
of the length of time
he has bQQn away from Craft and
the unavailability of payroll
records back
that
tar.) .
It is our opinion
that Hr.
McKeshan's TPA must
be
developed
in
the manner prescribed
in Section 5 (a) of the
Conditions. Support for any other method of development, no
matter how equitable it may appear, to some, simply cannot be
found in the
language of
the Implementing Agreement or in the
provisions of the Conditions, Moreover, as will be discussed
in
more detail below,
prior erbilrstion
authority supports the
contention: of the Organization
on this point end
not those
advanced by Carrier.
The language contained in Section 5(n) has
been in
place since 1979. And even
before that similar, if not
identical, language
appeared in Section 6 of the May 1938,
Washington Job Protection Agreement, which, by all accounts, wet
the precedent establishing forerunner for !ha I. C. C. ' s
earlier,
Oklahoma, New Orleans
and Southern-Contral of Georgia, Employ**
Paz& 5 of 13
DeqAs.
NYD Arbitrats<
HCXBOhan ?'J
Protective Conditions, required to be imposed in abandonment and
merger transactions by Section 5 (2) (f) of the Interstate
Commerce Act. From time to tune negotiators in drafting employe
protective and implementing agreements have altered the formula
established by w.TPA Section 6
and/or sect ions of I. C. C. employee
protective conditions, to Suit their
situations,
byt this we* no,
done
in the
transaction under review here.
The fact that the parties to the Implementing Agreement
did not,
intentionally or
unintentionally, sea fit to alter, what
others have termed "the straightforward language of
Section
5(a)", as it concerns the establishment of Test Period Averages,
!rust be given great weight and precludes subsequsnt alteration,
on our part thru the Arbitration process, on the basis that one
party now considers that a literal
application of a TPA
under the
formula provided would be lacking in equity.
This Carrier and this Organization
spent five months,
frota th! date
notice was
given to the date the Implementing
Agreement was signed, with the Louisville - Corbin transaction in
an active
negotiating
status.
While it !a understood that in
that period full time negotiations did not occur, it ie clear
that considerable thought, nevertheless, went into the process. of
drafting a suitable Implementing Agreement. The resulting .
product of these efforts is
thoroughly detailed
and contains no
less than 23 side letters covering almost every imaginable
subject and/or. contingency. It is notable that while the
negotiators saw
fi't to modify soar provisions of Hew York
Dock,
the
TPA development formula
provided in Section 5
(a) was left
unchanged.
IHEW Letter No. 13 to the Implementing Agreement
clearly provides
that
non-agreement Supervisors who lose their
jobs involuntarily spay exercise seniority rights back into their
Craft and be entitled
to whatever rights they would have enjoyed
if they had
been present at the time the coordination occurred.
When this
provision was included within the
Agreement it should
have been
apparent to
all involved in the negotiations that such
employees were
receiving rates of
pay greater than employees
working exclusively within the Craft. The parties were, we are
certain, also aware of the language of Section 5 (a) of NYD
Conditions on development of TPA's.
Page 6 of 13 pages.
v.
NYD Arbj t
ra t t a
McKeehan TP.
However, they did not see fit to provide new and
different language altering the TPA development formula in such
circumstances. It would be an affront to the Arbitration process
to do
so for
them now. Especially since we are not being asked
to interpret intent of the parties or obviously ambiguous
language. but, instead. are
being
asked to sidestep "straight
forward language" because it is perceived as lacking equity.
Carrier contends that its
development
of Mckeehan's TPA
is consistent with prior arbitration Awards on the subject. It
stress
adherence to the
result of SSA 605, Award
No. 433. We
do
not
find Award No. 433
faulty
or
inappropriate
in the
circumctances present there.
However, we have
difficulty in
accepting it as precedent in our, case because of two critical
factors.
First it
should
be observed that
compensation
guarantees in the February 7, 1965,
Agreement
are bifurcated.
Regularly assigned
employees
are
protected
with regard to their
normal rate
of compensation
as i t existed on
October 1, L964,
(plus increases). Other than regularly assigned employees
are
protected with a monthly displacement allowance. developed
somewhat
similarly
to
those under Section 5 Ca) of NYD. However,
the
parties
to the February 7, 1965, Agreement,
the controlling
instrument involved in Award No. 433, adopted several
interpretative Questions and
Answers which clearly expressed
their intention to exclude certain non-Craft employment which may
rave occurred sarlier. One question,
f.or example was:
credited
seem that
Quest ion No, 9
:
Can employment in sore
than one craft be counted in determining protected
status?
An,ever to Question No, 9; Ordinarily not
however, in cases such as promotion of a
telegrapher to train dispatcher, prosyotion
of a clerk to
yardmaster, etc., where the
seniority in
the craft from
which promoted
is retained, employment in the higher claaaificaiton `rill bs counted.
If service in another craft would not ordinarily be
under the
February 7,
1965, Agreement, it would also
the earnings received in that craft would not be used
RYD Arbitration
McKeehan 7PA
in development of TPA' s, But in those instances where such other
craft service was to be
counted, the parties to the February 7,
1965, Agreement developed n
computation procedure which met
this
contingency.
Their solution is found in the Answer to question
No 1, reading in part:
To thv extant that an employs whose guarantee
is governed by Suction 2 of Article IV has
compensated service in such other craft,
such service will also be included in
determining the base period average earnings
and hours paid for. However, his base period
average monthly earnings shall be computed
by taking his average hourly earnings in
the
base period in the craft in
which he
i s protected (adjusted t
o include subsequent
general
wage increases), multiplying by
the total number
of hours paid for in the
base period in both crafts and dividing by
12.
It is not our purpose here
to
interpret the February
1965 Agreement,
but, it
seems that the Answer to Question No. 1
established a formula.
where the
hours worked in the other
Craft
are added to the hours worked
in
the protected
employees Craft
and
both are used
with the
avarago hourly
earnings frost the Craft
in which protected to develop a TPA. No such similar agreed to
interpretation
exists
with respect to Section 5 Ca) of New York.
Dock or
the Juno 26, 1'987, Implement.ing Agreament, perhaps
because
the Condit-tons and the Implementing Agreement do
not
specifically
exclude Carriar
earnings from sources outside
an
employees
Craft, which appears to be the case, for the most part,
under the
February
7, 1965 Agreement.
Each of the other
awards
from SBA 605, submitted by
Carrier
as support for
its contentions. have been carefully
reviewed. They are determined not to be
controlling because of
the special interpretations
placed on the February 7. 196'5,
Agreement,
and there
are no similar understandings in
plac& for
NYD and the
Implementing Agreement, with regard to Section 5 ca),
which we are aware of.
Page 6
0
f 13
Dd,Q98.
IBEW
v.
NYD
ArbJ t
ra t i i
NcXtchan Ti
Carrier also has aupplied Award
1, SBA 860, Seidenberg
Referee. CNovember
20, 1976), dealing with a dispute over base
period compensation and time paid for
under the 1966
Penn-Centre
Verger Protective Agreement. It is from the novel remedy
generated
in this Award that
Carrier developed its peer
averagir,
concept which it seeks to apply to Mckeehan's situation. Award
t, SSA 860 cannot
stand an precedent
here because language of th,
UTU Merger
Protective
Agreement,
under review
there, detailed
which service would count and provided special considerations on
periods while absent on
leave for
union business as well as time
working as an official, supervisory
or in a fully excepted
position.
For
example the UTU Penn-Central Merger
Agreement
developed
train service employees test periods from
... the individual's average monthly compensation
for the last twelve months in which he
performed
service in ernin service, ...
A similar provisions is
not present in the language of
the
Conditions
being reviewed here.
Carrier
has stressed that by
using
language reading:
shall be entitled to whatever rights
they may have had if they had been .present
at the t ima
of the coordination.
in the
Agreement and Side
Letter 13,
it is manifest
that'it was
the parties
intention to
treat returning
non-agreement
Supervisors as if they had worked in the
Craft in the 12
months
preceding the coordination that they would
only be protected et
the
le=vel
of compensation
they would have received it
they
had
worked in the Craft during
that time.
Evan if this argument were accepted in total as
presented, which i t i s not, TPA's would still have t o be
developed in accordance with the procedures
provided in the
Conditions, which the parties
did not modify. This
procedure
requires
examination
of the earnings and hours
in the
preceding
12 months and taking the "total compensation" received and
divide
Page 9 of 13
DA?At.
NYD Arbs t ra t I o.
McKeehan 7p,
this number by the "total time paid for." This formula does not
provide an exclusion of earnings received in higher rated service
and it d oas not provide for an exclusion of earnings received in
lower classes of service. The formula is arbitrary - providing
for no exceptions of any type, and while some array argue that it
is not equitable to
protect a demoted Supervisor at his higher
rate others may argue that a recently promoted Journeyman
Mechanic is not treated equitably when lower rated helper or
apprentice service would be counted. But, regardless of which
perspective of equity end fairness is considered, the formule is
there, and that
is what must be followed, unless the parties saw
fit to alter
its language.
A situation not present here.
However, if a general
statement indicating that
returning Supervisors are to be entitled to whatever rights they
may have had if they had been present at the time of the
transaction. was intended to provide a different formula for
developing TPA's it would have been quite simple to include this
formula within the text of the Agreement. This of
course was not
done. This omission forces a conclusion that returning
Supervisors are entitled to have their TPA's computed as provided
by the
language of Section 5(a) as if they had been
present at
the time of the coordination. This computation includes
"compensation earned" in the preceding 12 months.
Many of Carrier's arguments here are similar to those
considered and rejected in New York Dock Arbitration T,CIU v. UP,
Stallworth, Arbitrator,
-(February.28,
1949). In that cage the
contentions of the
parties were stated to be:
The Carrier contends that for purposes of
calculating a Claimant's test period earnings,
the Claimants nay not include compensation
earned in non-agreement positions. The
Organization argues,
however, that the New
perk
CQndi t i one require the benefits t o be
based upon
the
total compensation during
the
preceding year including non-agreepent earnings.
The decision of the Arbitrator held:
The Committee concludes that the literal language
of there sections CArticle 1, Sectiona 5(a) b 6ta))
should be applied, and
that
all of Claimant's
Page 10 of 13 pe,4-as.
IBE6,
v.
NYD .1rbi tretsa.
McJCaehen TP.
earnings
with the Carrier during the prior y4ar,
whether from agreement or non-agreement positions,
are to tae included in the teat period
earnings.
As the Organization points out, the language of
these sections sets forth a formula for calculating
monthly allowances
based upon "total compensation"
in the service of the Carrier "during the last
twelve months .., immediately pracAding the
data of his displacement as a result of the
transaction." The Comauttee concludes
that
the literal language of
this
section requires
the Carrier to calculate benefits based upon
ell the gobs, agreement
and non-agreement, held
by an affected employee
in the service of the
Carrier for the year prior to the
transaction.
It
Is our view that this is a correct
interpretation of
the New York Dock
Conditions. As such it will be applied to the
snot t er under review here,
that:
One additional point. TCT.U v.
UP, tsupra), also stated
The Committee is hound to apply the literal
1 enguaga of the
New
`t'or Cond i t 14n,s.
unless the Carrier can shoo a
compelling
reason why this straightforward
interpretation
dons not reflect the actual intent of the
Parties.
Carrier argues that
in our case a'"compelling reason" to use a
different method of computing Claimant's TPA is that by
protecting his non-contract rata of pay he would be
receiving far
more than
whatever rights he may hove had if he had
been
present
at the time of
the coordination.
This contention
is found to be unpersuasive because,
among other
things, it
operates
from
an easumption that it is
"rate of pay" which is the factor bring protected. "Rate of pay,
is not the element of
protection;
"compensation" is the term
that
is used and
that
is
the element an
which protection
must
be
based.
v.
NYD Arbitration
McXeehen TPA
Additionally, notwithstanding Carrier's
contentions
when this wetter was being reviewed on the property and
notwithstanding its arguments before this Arbitration, we have no
persuasive showing that et the time the Implementing Agreement
was under consideration end in negotiations the parties ever
intended that Section 5 ta) ever be applied other than
literally
as written. Accordingly, Carrier has not shaven a compelling
reason why the straightforward
language of
Section 5Ca> should
not be applied to the
development of
Mckeehen'a TPA.
Finally, it should
be
observed that Carrier insists
that the Award in TGIU
v.
UP is in error. However, it does not
city a single other authority in which unaltered NYD Conditions
era scrutinized end a different result is reached. As discussed
above, each authority
submitted by Carrier involved language
which could fairly be interpreted
to support the conclusion
reached.
These
decisions, though, cannot
be viewed as
controlling in this matter because of the existence of _
significant language differences between the Agreem-enta studied
in those case end the
Conditions under review here.
On the
totality of the entire record we are compelled
to cake nn Award in favor of the Organization.
NYD Arb1 t re t 1 on
McXeehen TPA
The Question at Issue posed
by Carrier Is onswer*d, No.
Question 1, posed by the Organization is answered:
Electrician C. T. McKeehan is entitled to haws his
Test Period Average under New York Dock Conditions
include all earnings received in the twelve soonth
period in which ho performed service immediately
preceding the date of his displacement, including
earnings he received while working as
a non-agreomcnt
Supervisor.
Question 2, posed by the Organization la answered:
Electrician C. T. McKeehan shall
have his
'feat Period
Average determined by dividing separately by 12 the
total
compensation received and the total time for
which he was paid during the last 12 months in which
ho performed service
immediately
preceding
the date
of his displacement.
J ohrTCHER,
1 t rat or
Chairro,an end Ne
al
Member
C. ^. Meredith,
General
Chairman
Employsa Member
gated at Mt. Prospect, IL. ,
R. D. Hits!, Manager
Labor Ro:otior,s
Carrier Member
.
this 3rd
Day of October, 1990.