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.