NATIONAL MEDIATION BOARD, ADMINISTRATOR
SPECIAL BOARD OF ADJUSTMENT NO. 1087
In the Matter of the Arbitration
-between-
Brotherhood of Maintenance of OPINION AND AWARD
Way Employes Case No. 15
-and
National Carriers' Conference
Committee
In accordance with the October 25, 1996 Agreement in effect
between the above-named parties, the Undersigned was designated
as the Chairman and Neutral Member of the referenced Board to
hear and decide a dispute concerning these parties.
A hearing was held in Miami, Florida on February 4, 2002 at
which time the representatives of the parties appeared. All
concerned were afforded a full opportunity to offer evidence and
argument and to examine and cross-examine witnesses consistent
with the Agreement that created the Board. The Arbitrator's oath
was waived.
THE QUESTION AT ISSUE
The parties failed to stipulate an issue to be resolved by
the Board. The parties authorized the Board to formulate an
appropriate issue. The organization proposed the following
issues:
1. Was the Carrier permitted to reduce the
"protected rates" of seasonally protected
employees C. A. Moyer and R. M. Pokorney and
other similarly situated employees when they
voluntarily bid from higher rated to lower
1
rated positions?
2. Did the carrier properly compute the
seasonal guarantee for employee C. A. Moyer
for the calendar year 2000?
The Carriers proposed the following issue:
Is the protected rate of a seasonal protected
employee, who voluntarily bids in a job
paying a rate lower than his/her protected
rate, permanently reduced in Article IV,
Section 3, of the Job Stabilization
Agreement?
On the basis of the arguments of the parties and a careful
review of the entire record, the Board deems a fair statement of
the issues to be:
Issue 1
Did the Carrier, the Burlington Northern
Santa Fe, violate the Agreement in Mediation
Case No. A-7128, dated February 7, 1965, as
amended by Article XII of the Agreement in
Mediation Case No. A-12718 (Sub-Nos. 1-8),
dated September 26, 1996, by permanently
reducing the "protected rates" of seasonally
protected employees C. A. Moyer and R. M.
Pokorney and other similarly situated
employees, who each voluntarily bid in a
position paying a rate lower than the
employee's protected rate? If so, what shall
be the remedy?
Issue 2
Did the Carrier, the Burlington Northern
Santa Fe, properly compute the seasonal
guarantee for employee C. A. Moyer for
calendar year 2000? If not, what shall be
the remedy?
BACKGROUND
The Organization filed a claim, dated April 25, 2001, on
behalf of Claimant R. M. Pokorney (and other similarly situated
employees) because the carrier permanently had reduced the
protected rate of the Claimant, a seasonal employee, after the
2
Carrier had awarded the Claimant a position with a rate of pay
lower than the Claimant's protected rate. The Claim specified
that the February 7, 1965 Agreement, as amended, omits any
provision to permit the Carrier to make a downward adjustment to
the protected rate of the Claimant, a seasonal employee. The
Claim requested that the Carrier rescind the disputed action;
restore the Claimant to the proper protected rate; and make the
Claimant whole for the loss of pay for the year 2000.
(organization Tab 2 and carrier Exhibit E.)
The Carrier responded in a letter, dated May 25, 2001. The
Carrier described the Carrier's reasons for denying the Claim:
As to R. M. Pokorney who was originally
considered to be a "Seasonal" employee
protected as an Assistant Foreman. Analysis
of Manpower and Payroll data has revealed
that on February 28, 1998, R. M. Pokorney bid
from an Assistant Foreman position 37481,
Aurora Mtct. Gang., to Sectionman position
37778, Grand Island. When Claimant bid from
a higher rated position to this lower rated
position, protection rate was changed to the
rate of the lower rated position.
R. M. Pokorney is now considered to be a
"Seasonal" employee protected at the
Sectionman rate of pay. His portion of the
claim is declined in its entirety.
As to you [sic] claim for similarly situated
unnamed employees that portion of your claim
is declined in its entirety.
(Organization Tab 2 and Carrier Exhibit E.)
In a letter dated July 5, 2001, the Organization appealed
the Claim. In a letter dated September 21, 2001, the Carrier
denied the appeal. (Organization Tab 2 and Carrier Exhibit E.)
3
The matter proceeded to Special Board of Adjustment No. 1087 for
a final and binding determination.
The Organization also filed a claim, dated March 22, 2001,
on behalf of Claimant C. A. Moyer for a monetary loss because the
Carrier permanently had reduced the protected rate of the
Claimant, a seasonal employee, after the Carrier had awarded the
Claimant a position with a rate of pay lower than the claimant's
protected rate and because the Carrier failed to compensate the
Claimant for the appropriate number of days. (Organization Tab 3
and Carrier Exhibit F.) The Carrier responded in a letter, dated
May 21, 2001. The Carrier described the Carrier's reasons for
denying the Claim:
Analysis of Manpower and Payroll data has
revealed that on March 15, 1999 Claimant bid
from Grinder operator position 37292, Forest
City, to Sectionman position 37342, Clean Up
1. When the Claimant bid from a higher rated
position to this lower rated position, his
protection rate was changed to the rate of
the lower rated position he voluntarily bid
in.
The Claimant is now considered to be a
"Seasonal" employee, protected at the rate of
Sectionman for 263 days.
(organization Tab 3 and carrier Exhibit F.)
In a letter dated July 13, 2001, the Organization appealed
the Claim. In a letter dated September 21, 2001, the Carrier
denied the appeal. (Organization Tab 3 and Carrier Exhibit F.)
The matter also proceeded to Special Board of Adjustment No. 1087
for a final and binding determination.
4
PERTINENT PROVISIONS
MEDIATION AGREEMENT
FEBRUARY 7, 1965
ARTICLE I - PROTECTED EMPLOYEES
Section 1 -
A11 employees, other than seasonal employees, who were in
active service as of October 1, 1964, or who after October 1,
1964, and prior to the date of this Agreement have been restored
to active service, and who had two years or more of employment
relationship as of October 1, 1964, and had fifteen or more days
of compensated service during 1964, will be retained in service
subject to compensation as hereinafter provided unless or until
retired, discharged for cause, or otherwise removed by natural
attrition. Any such employees who are on furloughs as of the
date of this Agreement will be returned to active service before
March 1, 1965, in accordance with the normal procedures provided
for in existing agreements, and will thereafter be retained in
compensated service as set out above, provided that no back pay
will be due to such employees by reason of this Agreement. For
the purpose of this Agreement, the term "active service" Is
defined to include all employees working, or holding an
assignment, or in the process of transferring from one assignment
to another (whether or not October 1, 1964 was a work day), all
extra employees on extra lists pursuant to agreements or practice
who are working or are available for calls for service and are
expected to respond when called, and where extra boards are not
maintained, furloughed employees who respond to extra work when
called, and have averaged at least 7 days work for each month
furloughed during the year 1964.
Section 2 -
Seasonal employees, who had compensated service during
each of the years 1962, 1963 and 1964, will be offered employment
in future years at least equivalent to what they performed in
1964, unless or until retired, discharged for cause, or otherwise
removed by natural attrition.
ARTICLE II - USE AND ASSIGNMENT OF EMPLOYEES AND LOSS OF
PROTECTION
Section 1 -
An employee shall cease to be a protected employee in
case of his resignation, death, retirement, dismissal for cause
in accordance with existing agreements, or failure to retain or
obtain a position available to him in the exercise of his
seniority rights in accordance with existing rules or agreements,
or failure to accept employment as provided in this Article. A
protected furloughed employee who fails to respond to extra work
5
when called shall cease to be a protected employee. If an
employee dismissed for cause is reinstated to service, he will be
restored to the status of a protected employee as of the date of
his reinstatement.
ARTICLE IV - COMPENSATION DUE PROTECTED EMPLOYEES
Section 1 -
Subject to the provisions of Section 3 of this Article
IV, protected employees entitled to preservation of employment
who hold regularly assigned positions on October 1, 1964, shall
not be placed in a worse position with respect to compensation
than the normal rate of compensation for said regularly assigned
position on October 1, 1964; provided, however, that in addition
thereto such compensation shall be adjusted to include subsequent
general wage increases.
Section 2 -
Subject to the provisions of section 3 of this Article
IV, all other employees entitled to preservation of employment
shall not be placed in a worse position with respect to
compensation than that earned during a base period comprised of
the last twelve months in which they performed compensated
service immediately preceding the date of this Agreement. For
purposes of determining whether, or to what extent, such an
employee has been placed in a worse position with respect to his
compensation, his total compensation and total time paid for
during the base period will be separately divided by twelve. If
his compensation in his current employment is less in any month
(commencing with the first month following the date of this
agreement) than his average base period compensation (adjusted to
include subsequent general wage increases), he shall be paid the
difference less compensation for any time lost on account of
voluntary absences to the extent that he is not available for
service equivalent to his average time paid for during the base
period, but he shall be compensated in addition thereto at the
rate of the position filled for any time worked in excess of the
time paid for during the base period; provided, however, that in
determining compensation in his current employment the employee
shall be treated as occupying the position producing the highest
rate of pay and compensation to which his seniority entitles him
under the working agreement and which does not require a change
in residence.
Section 3
Any protected employee who in the normal exercise of
his seniority bids in a job or is bumped as a result of such an
employee exercising his seniority in the normal way by reason of
a voluntary action, will not be entitled to have his compensation
preserved as provided in Section 1 and 2 hereof, but will be
compensated at the rate of pay and conditions of the job he bids
in; provided, however, if he is required to make a move or bid in
6
a position under the terms of an implementing agreement made
pursuant to Article III hereof, he will continue to be paid in
accordance with Section 1 and 2 of this Article IV.
MEDIATION AGREEMENT
SEPTEMBER 26, 1996
ARTICLE
XII - WORKFORCE
STABILIZATION
Part A
Section
1 - The February 7,
1965 Agreement
Entitlement to certain elements of job security, currently
available under the February 7, 1965 Agreement (Agreement), shall
be upgraded, so that employees who have at least ten continuous
years of service will be entitled to the protection.
Section 2
(a) Article I, Section 1 of the Agreement shall be amended
to read as follows:
_ Section 1 - All employees, other than seasonal employees,
who are in active service and who have or attain ten (10) or more
years' of employment relationship will be retained in service
subject to compensation as herein provided unless or until
retired, discharged for cause, or otherwise removed by natural
attrition. For the purpose of this Agreement, the term "active
service" is defined to include all employees working, or holding
an assignment, or in the process of transferring from one
assignment to another (whether or not the date on which such ten
or more years of employment relationship is acquired was a work
day). An employee who is not regularly assigned on the date the
employee is otherwise eligible to achieve protected status under
this section will be deemed to be protected on the first day
assigned to a regular position in accordance with existing rules
of the BMWE Agreement.
(b) Article I, Section 2, of the February 7, 1965 Agreement
shall be amended to read as follows:
Section 2 - Seasonal employees, who had compensated service
during each of the years 1995, 1996, and 1997 who otherwise meet
the definition of "protected" employees under Section 1, will be
offered employment in future years at least equivalent to what
they performed in 1997 unless or until retired, discharged for
cause, or otherwise removed by natural attrition.
(c) Article IV, Section 1 of the Agreement shall be amended
to read as follows:
7
Section 1 - Subject to the provisions of Section 3 of this
Article IV, protected employees who hold regularly assigned
positions shall not be placed in a worse position with respect to
comp-~nsation than the normal rate of compensation for said
regularly assigned position as of the date they become protected;
provided, however, that in addition thereto such compensation
shall be adjusted to include subsequent wage increases.
INTERPRETATIONS
THE FOLLOWING INTERPRETATIONS OF THE
PROVISIONS OF THE MEDIATION AGREEMENT DATED
FEBRUARY 7, 1965 (STABILIZATION OF EMPLOYMENT
AGREEMENT) HAVE BEEN AGREED UPON BY THE
PARTIES TO SAID AGREEMENT AND WILL HAVE THE
SAME FORCE AND EFFECT AS THE PROVISIONS OF
THE AGREEMENT THAT HAVE BEEN THUS
INTERPRETED.
ARTICLE IV - COMPENSATION DUE PROTECTED EMPLOYES
Section 3 -
Ouestion No. 1: f a "protected employe" for one reason or
another considers another job more desirable than the one he is
holding, and therefore bids in that job even though it may carry
a lower rate of pay thLn the job he is holding, what is the rate
of his guaranteed compensation thereafter?
Answer to Ouestion No. 1: The rate of the job he
voluntarily bids in.
AGREEMENT
October 25, 1996
III. Arbitration Procedures
B. The Board, upon its own motion, may accept and consider
evidence relevant to the dispute not part of the handling of the
dispute on the Carrier's property.
POSITION OF THE ORGANIZATION
The Organization asserts that Article IV, Section 3 does not
apply to a seasonal employee's protected rate. The Organization
explains that the present dispute constitutes an outgrowth of the
decision of Special Board of Adjustment 1087 in Award No. 1,
8
Question No. 2. As a result, it is the position of the
Organization that Article IV does not apply to a seasonal
protected employee who voluntarily exercises seniority from a
higher-rated position to a lower-rated position. The
organization reasons that Article IV, Section 3 lacks any effect
on the protected rate for a seasonal protected employee's make
whole remedy at the end of a year. The organization considers
the arguments before Special Board of Adjustment 1087 in Award
No. 1 and the decision by special Board of Adjustment 1087 to
support the organization's analysis.
The Organization recounts that the computation and the
administration of the seasonal guarantee arises under Article I,
Section 2. The Organization refers to Article I, Section 2,
which identifies 1997 as the benchmark year to determine the
employment that the Carrier must offer seasonal employees in
subsequent years. The Organization pinpoints that the Job
Stabilization Agreement lacked clarity about the computation and
the administration of the seasonal guarantee. The Organization
describes that the parties presented different arguments to
Special Board of Adjustment 1087.
The Organization stresses that Special Board of Adjustment
1087 adopted the Carrier's argument that computation of the
protected rate for a seasonal employee does not involve Article
IV, Section 1 or Article IV, Section 2. The Organization
contends that the reference by Special Board of Adjustment 1087
to Article IV, Section 3 lacks significance because Article IV,
9
Section 3 only applies to compensation that arises from Article
IV, Section 1 and Article IV, Section 2. The organization
specifies that Article IV, section 3 perforce cannot apply to a
seasonal employee's protected rate. The organization emphasizes
that the Carrier lacked authority to reduce the protected rate of
seasonal protected employees such as the Claimants.
The organization elaborates that the Claimants tried to
comply with their obligations pursuant to the seasonal guarantee
by filling positions through the exercise of their seniority
rights. The organization criticizes the Carrier for trying to
use the actions of the Claimants to reduce the amount of the make
whole remedy that applies when the Carrier fails to offer
employees their guaranteed work opportunities. The Organization
requests that the Carrier restore the protected rates of the
Claimants and other similarly situated seasonal protected
employees and pay Claimant Moyer a monetary remedy at the Group 4
Machine Operator rate.
The organization adds that Special Board of Adjustment 1087
should direct the parties to conduct a joint check of Claimant
Moyer's payroll records for calendar year 2000 to determine the
computation of the seasonal guarantee. The Organization relates
that such a joint review, which the Carrier refused to conduct on
the property, will reveal the number of days of work that the
carrier had offered to Claimant Moyer. The Organization
highlights certain dates that the carrier improperly computed.
The Organization declares that Special Board of Adjustment 1087
10
has the authority to order such a joint check pursuant
ra
Article
III, Section B and should retain jurisdiction in the event the
parties fail to resolve the matter.
POSITION OF THE CARRIER
The Carrier maintains that the rate of pay for the regularly
assigned job on the day an employee became a seasonal protected
employee constitutes the protected rate for the seasonal
protected employee. The Carrier views Article IV, Section 3 as
authorizing the Carrier to reduce the protected rate of a
seasonal protected employee who bids into a lower-rated position
than the seasonal protected employee's higher original protected
rate.
According to the Carrier, the Organization must prove that
Article IV, Section 3 does not apply to a seasonal protected
employee to avoid the reduction of such a seasonal protected
employee's protected rate. The Carrier confirms that seasonal
protected employees are protected employees pursuant to the
Agreement as supported by Article I, Section 1 and Article I,
Section 2; the application of the Agreement treats seasonal
protected employees as protected employees as supported by
Article II, Section 1 and by Special Board of Adjustment 605 in
Award 278; and the Questions and Answers signed by the parties to
interpret the February 7, 1965 Agreement reflect that Article IV,
Section 3 applies to a seasonal protected employee, who
voluntarily bids into a position that has a lower rate of pay to
calculate the employee's guaranteed compensation.
11
The Carrier discerns that the Claimants voluntary bid into
lower-rated jobs and thereby permanently reduced their protected
rates of pay. The Carrier underscores that Article IV, Section 3
constitutes the key provision to resolve the dispute. The
Carrier urges that the Claims be denied.
OPINION
I. Introduction
This case involves language interpretation. The parties
stipulated that the organization--as the moving party--has the
burden to prove its case by a fair preponderance of the credible
evidence.
In analyzing the record, the Special Board of Adjustment
underscores that Section II (A) of the October 25, 1996 agreement
between the parties that led to the creation of this Special
Board of Adjustment indicates that:
The Board shall not have the authority to add
contractual terms or to change existing
agreements governing rates of pay, rules and
working conditions.
The following analysis reflects these limitations on the
authority of the Board.
II. The Nature of the Dispute
A careful review of the record indicates that the Claimants,
who are protected pursuant to Article I, Section 2 as seasonal
employees, voluntarily bid for positions that paid a lower rate
of compensation than the protected rates of compensation for the
Claimants. The Claimants obtained the positions.
Article I, Section 2, as amended in the September 26, 1996
12
Agreement, established 1997 as the benchmark year for determining
a carrier's obligation to offer employment to protected employees
in future years. Special Board of Adjustment No. 1087
(Hockenberry, Arb.) rendered an Award, dated September 28, 1998,
that addressed certain aspects of the treatment of seasonal
protected employees by carriers. (Organization Tab 1 and Carrier
Exhibit B.) The Special Board of Adjustment commented about the
applicability of Article IV to seasonal protected employees:
The decisions of SBA 605 [the predecessor of
Special Board of Adjustment No. 1087] . .
debate the terms `compensation' and `normal
rate of compensation' found in Sections 1 and
2 of Article IV, but it does not appear that
such an analysis under Article IV applies to
seasonal employees pursuant to Article I,
S=cti:~n 2. In the Questions and Answers for
Article IV, Section 6, specifically Question
and Answer No. 2, there is a clear
distinction between employee's compensation
guaranteed under Article IV, Sections 1 or 2,
and information required "with respect to
seasonal employes covered by Section 2 of
Article I".
(Organization Tab 1 at 15 and carrier Exhibit B at 15.)
This analysis is consistent with a thorough examination of
Article IV. Article IV, Section 1, as amended, refers to
"regularly assigned positions" and Article IV, Section 2 refers
to certain calculations that presuppose an employee had performed
compensated service throughout a twelve-month period. Article
IV, Section 2 explicitly links the language in Article IV,
Section 2 to Article IV, Section 3. Furthermore, Article IV,
Section 3 specifically ties Section 3 to Section 1 and to Section
2 of Article IV. As a consequence, a fair reading of the entire
13
context of Article IV reveals that Article IV lacks applicability
to seasonal employees. This conclusion is consistent with the
position advanced by the Carriers to Special Board of Adjustment
No. 1087 concerning the treatment of seasonal protected employees
by carriers. In particular, the Carriers argued that:
Article IV, Section 1 sets forth the method
of establishing protective benefits for nonseasonal employees who held regularly
assigned positions of October 1, 1964 . . . .
For the reasons that follow, we believe
that Article IV, Section 2 does not apply to
"seasonal employees".
1. Article IV Applies only to Non-
Seasonal Employees.
(Organization Tab 4--Carriers' Brief at 19-21.) The official
Interpretations, dated November 24,1965, of Article IV of the
February 7, 1965 Agreement lack the necessary specificity and
therefore omit any persuasive evidence that Article IV applies to
seasonal protected employees under the present facts and
circumstances.
As a result of Article IV not applying to seasonal protected
employees, the record fails to identify any provision in any
agreement that authorizes a carrier to make a permanent downward
modification of the protected rate of a seasonal protected
employee who bids into a lower-rated position in the normal way
by reason of a voluntary action. Consistent with Section II(A)
of the October 25, 1996 Agreement between the parties that led to
the creation of Special Board of Adjustment No. 1087, the Special
Board of Adjustment lacks the authority to add contractual terms
or to change existing agreements governing rates of pay, rules
and working conditions. The Special Board of Adjustment
therefore lacks the authority to add a section to the Agreement,
as amended, to create language similar to Article IV, Section 3
that would authorize a carrier to make the disputed downward
modification of the protected rate of seasonal protected
employees who voluntarily bid into lower-rated positions than the
positions that the employees occupied during the benchmark year
of 1997.
III. Conclusion
With respect to Issue 1, the Organization proved by a fair
preponderance of the credible evidence that the Carrier violated
the Agreement in Mediation Case No. A-7128, dated February 7,
1965, as amended by Article XII of the Agreement in Mediation
Case No. A-12718 (Sub-Nos. 1-8), dated September 26, 1996, by
permanently reducing the "protected rates" of seasonal protected
employees C. A. Moyer and
;c.
M. Pokorney and other similarly
situated employees, who eac~ voluntarily bid in a position paying
a rate lower than the emploj:_e's protected rate. As a remedy,
the Carrier shall make the adjustments to the protected rates and
shall make the affected erployees whole. The Award shall provide
that the Special Board of Adjustment shall retain jurisdiction to
resolve any disputes that may arise concerning the remedy.
With respect to Issue 2, the record contains insufficient
evidence at present to resolve the dispute concerning the proper
computation of the precise number of days of Claimant Moyer's
claim. In accordance with the authority set forth in Section
15
III(B) of October 25, 1996 Agreement between the parties
concerning the establishment of Special Board of Adjustment 1087,
the parties shall meet and confer within 45 days to conduct a
joint check of the relevant records to identify the facts that
the Carrier relied on to compute the seasonal guarantee for
employee C. A. Moyer for calendar year 2000. The Special Board
of Adjustment shall retain jurisdiction to resolve any disputes
that may arise concerning this interim remedy and to resolve any
dispute that still may exist after the parties conduct the joint
check of the relevant records.
Any other issues not specifically addressed in the foregoing
analysis are not material to the proper resolution of the
disputed matters. Any change to the present arrangement is a
matter for collective bargaining, not arbitration.
Accordingly, the Undersigned, duly designated as the
referenced Board and having heard the proofs and allegations of
the above-named parties, make the following AWARD:
Issue 1
The Carrier, the Burlington Northern Santa
Fe, did violate the Agreement in Mediation
Case No. A-7128, dated February 7, 1965, as
amended by Article XII of the Agreement in
Mediation Case No. A-12718 (Sub-Nos. 1-8),
dated September 26, 1996, by permanently
reducing the "protected rates" of seasonal
protected employees C. A. Moyer and R. M.
Pokorney and other similarly situated
employees, who each voluntarily bid in a
position paying a rate lower than the
employee's protected rate. As a remedy, the
Carrier shall make the adjustments to the
protected rates consistent with the analysis
set forth in the accompanying opinion and
shall make the affected employees whole. The
Special Board of Adjustment shall retain
16
jurisdiction to resolve any disputes that may
arise concerning the remedy.
Issue 2
The parties shall meet and confer within 45
days to conduct a joint check of the relevant
records to identify the method that the
Carrier, the Burlington Northern Santa Fe,
used to compute the seasonal guarantee for
employee C. A. Moyer for calendar year 2000.
The Special Board of Adjustment shall retain
jurisdiction to resolve any disputes that may
arise concerning this interim remedy and to
resolve any disputes that still may exist
after the parties conduct the joint check of
the relevant records.
~ Rbbert L. Do las
Chairman and Neutral Member
Donald F. Griffin
Union Member
Concurring/Dissenting
/2. i3.
(Aj
R. B. Wehrli
Union Member
Concurring/Dissenting
DATED: January 6, 2004
STATE of New York)ss:
COUNTY of Nassau
A. K. Gradia
Carrier Member
Concurring/Dissenting
J hn F. Hennecke
"~'L~arrier Member
Concurring/Dissenting
I, Robert L. Douglas, do hereby affirm upon my oath as
Arbitrator that I am the individual described in and who executed
this instrument, which is my opinion and Award.