the Brotherhood of Maintenance of Wav Ernrloves (Oreawation), on December 5. 200 3. of the Carrier`s plant to assign work crrstomarilV pfforrrred y employees on district tie gangs to sy=stem: rail gang employees of r the former Nlissottri Pacific (MP) property, %Ior a secific:rilv. tlteCalTier ,rot: that, ,m, . . effective January 5, 2'004, Union Pacific will irrrplernerrt an operational acrd organizations than le ,\herebv Nvorthat is customarily performed by employees assigned tar district tip gang seniority .rosters m=il also ire pe.rfrrrrrred lay employees assigned to systern rail gang rosters.°' The Carrier informed the `rrgimizatiorz that, after it isrplernented its :la, emt.Plovees assigned to either the district tie gang seniority roster or the svstrn rail grtnl semio=rite roster may perform the work previously arid customarily performed 1,K= employees on the district tie gang seniority rster. Tire C,ITktr furtberno(rfred the Oroarm_'.at=orr that, inasmuch as its noosed action did.not involve the transfer of employees, ctrl 17ral.etrientrng ageement %.s`as not reaulreC. The Carrier characterized t::? plan fns an operational and organrzatrorrall change.
Can Dec errtber 12. 200 3. the (.bra mrtization vigorously protested the Carrier's proposed action for several reasons which ,vill a related later in this Opinion. Oil Iecernber 19. 200, the Carrier responded ;<o the Orgarrizatiorr's ojec ions and gay°e reasons ire szrppc)rt of its contemplated action. `(iris re:=ulrarr.- of correspondence led the parties to submit their dspute to Special Board of Adjustment No, 1087 (Board). Tire-= stipulated to three issues quoted on t de title page. The. eaer.
BAM. _087: Award No. l S BM WE i;?
This controversy centers on the proper zngerpretation and application ol" Article 111, Section l of the February= 1. 1965 .fob Stabilization Agreement which provides:
On %Jav 3 1, 1984, the MP ,aid the Oraanization entered into a supplements] agreement dividing one tie gang district Into tiicfexas and Southern AstI`>ci; consistent ~xith %II' enalr)CCI°j~5 epartntc:ntaairation. As a ?vsia?t, the NIP I-gad for se at-ate district tie gang territories.
On .,Nugust 26, 1983the MP and the Organization agreed to reinove seniority Innitations for einplcr~ ees on systeiri.ral I galigs. Section 2 ofthe August ~6, 1983 Agreement Che Systern Rall G ang
In a letter dated '= 4x l94. the MP informed the Organization that. effective lure m, 1984. the MP xs-old use district tie gangs to perform rehabilitation of road crossings and the replacement of Ties, switches and surfacing, within the tin-ilts of Lie reneN:°al projects. The Organization did not challene the transfer of this surfacing work from division forces to district tic qns.
The Carrier and the Organisation completely revised anal recodified their property areement effective july I. 2ooo. `rney, incorporated the Sy;=scent Rail Gana Areen-tent and the District Tic Gart2 Agreement into the jly I. 2'000 Agreenrent.' [See Rules 3(a) aid 4s`a) of the July I . -2000 Areeirient]
On Aucust I ~:,, 2001. the Carrier notified the Organization of its intent to cmine the fsrwas iniermissile lbecanse it had foregone the regional and SVSt; r1-,,k-:ide gang rules emanatmg from Presidetial Erneraencv Board No. 219 and the 1991. Imposed Natiomal ,greerei-A in favor of existing rules. The On«anizatioelaorated that the Carrier's preservation of the pre-1991 rules
While the record is not entirely clear. Rule w ofthe,,luI) t. 2000 A greemersc evidently loose red senioru~ restrictions so that a rtsplcsy ees could muse heNw n the sNste sea `sorits and the district seniority rosters ~Aithout for ifeiiing their seniority.
BA No. 1 0': Award No, 1, BNINVv. UP
t-neant that it could not esmblish a s~-stem-xide -Lie gang. Accord =ng to she Organization, the Carrier abndoned its contemplated action to convert tie district tie gangs into system tie gangs.
.A little over two ve xrs later. the Carrier seii-ed its e; ember 5, 200_> notice. which led to the: instant controversy.
The Oraaniration initially argues that the Carrier's proposed action sloes not constitute all operational or organizational change under Article 111, Section l of the February 7, 196-5 Job Stabilization Aureement. The Oranization rises w .o alternative aroam.ents. Even if the Carrier's proposed action is a.a operational and organizational change, the Carrier waived its right to in\ ore article lit. Section 1 try this District Tie Gana and NsterRa14 Gang Agreements and,or its past bargaining positions equitably estop the Carrier frorimplenienting As proposal
The Carrier's proosed ac-Lion is not are operational and organizational charge -on its face. ~,Iorc irriortantly. the Carrier attempts to achieve through article 111, Section l something that is has never before asserted that it leas the authority to do. The negotiating history. the Carrier°s past admissions before 'residumial En..ereenc~ Beards, and apastractice evince that the Carrier cwirnot implement its proposed action a> an operational or organizational change under the auspices, of the ebruar;v '17, 1965 Job Stabilization Apreenjent. 'he Carrier cannot ressin work ire deroualion of the District Tie Gam, and S~stern Rail
BA No. 1087: Award No. I BM WE -,,, UP
provide that rail taking work is performed y_ systerri-xide gacy njemers holding, seniority on tire 6'te.C afl.£...~..`''`''1;Crt`~'i'st.''~'ala ts~'.'%.i_i..C.1`t §t,~9~i.~rmwda ), nie.°b°r9 (.,fiaie distr?ct tic ~a~ gs holtfirg seniority on the applicable district seniority roster. In the extxetne. the Carrier could ro ;Ii tie and zricixn nor lc:ia l Rer l the cistr<ctiprgs to syste-ice c,anQ,,,, sc)txtt thitiit nstacccssftzil\,, tried to accomplish in Z0 l . Ire essence. the Carrier is attempting to combine the district and system seniority rosters. The Carrier lacks the authority to consolidate seniority districts pursuant to Article 111, Section I of the February 7 1965 .lob Stabilization Areerent. SpceialBoari qj'AcIjusimentNo. 605, Aivart/;Vo, 5. Other decisions of Special Board tai Adjustment No. 605 hold that the Mere 1Caassi=-Mirrzent of work is trot an operational change. iu=c°rlc~a-r:~'t=rrcf~r;.~. 60?. Aivar~lXos. 50 30tj and X04. In this case, the Carrier is simply reassigning souse nnovn aic~nt tit tic work front one group of employees tdistrict tic gana-s) to ;rnc>ther -roup of eniplovecs (system rail hangs).
Under the Ca"s'r1eIVs proposed action. the location of the tie work does not change nod so. it is not transferring work. The absence of any work transfer is another indication that tics Carrier is not engaging in art operational or organizational chang).
Durinlo tire previous four decades, the Carrier ne,-erottght to acccmiplisf that which it sleeks to do its its December 5. 2003) notice. Tire negotiating history of the Febmarf_ B 965 R,a
Stabilization A.vrectetn and stab seclctent national agreet-ttents ntani best that the Carrier does not have the right, -under Article Ill, Section I, that it asserts here, Thin C`-- rriur has, over rriany dears, consistentiv takers tine position in national barvainina thaat it. needs the te:xibiIitv to uncian=ditiorafv estalisn svsteni.-tide (zan-s. This position obviotaslv shos that it currently lacks such Eemhdity.
Back ~n 2964 i)efor~ fry sidcnt:al men2enLy Board No. 1 3. the nation's carriers advanced a prooSal to consolidate s,niority districts, A nien-aer of the presidential panel observed that 'he carriers` proposaf could involve a revolutionary change in emloyrnent. Ire a I96Sccti6 notice. the c-arrsers pzoosoclimtnailriw the 1965 Job, Stabilization Agreement. One wonders w'£`-. if the .fob Stahl Iizatin Agreement provided the II \ ihility the Carrier asserts ire ;his case, than the railroads wanted to escape from the 1 965 Job Stabilization Agreement.
n a duly 12, 1984 Section 6 -nofce proposing a litany of w=cork rui-- than-gcse the carriers wanted to eliminate restrictions on which class of erloyees cold perform work and to £ob'ain th. unilateral po-,per to relign arid combine seniority districts. The 3986 report issued by Preside-nual
rnereencv Bord No. dI I did not grant the carriers the authority that they sought bait warned that a future Presidential Board might consider a national rule if local ne-otations over combimn
Ire their submission to 'residential Emergency Board No. 219, the carriers specifically co.napfairied that the 1965 Job Stabilization Agreement had halted self-correcting fetuses that appeared £n earier contracts and so, the carriers needed the ntettered discretion to consolidate scnioritv districts. The Carrier's Vice resident of mJneeri2 testified before Presidential
nlergecy Board -No. `' I 9, that while pangs oil the former k 'nion Pacific territory can a utilized for av t o.f s=t m work. MP gangs \vere ret rictbto tie gangs and nothiu2 else. The Ca--Tier official's representation :S an admission that :he Carrier cannot ci`caLe svstcrn arid regional gangs, fhe statements of a. Carrier official before a Presidential f zneruenc:y Board are admissions hccausc° Ihev are not exa-2erated arcurnentS, but ratber declaratsons fair fact. <5pceict`/ Boar,] £?lA~ju.4r tJ7ent F\ro. 1 08~`. Awarcfc), ?. Thus. as of 91)0. fxistino rules on thu :NIP, including FArciclIII of tile Feruarv
7> 196-i jcb Stabilization Agreeznent> did not c;r;skit te estali~,°lnmef~t of systeni-xvide pie s~amg s which is exacttv what
the arrit~r seeks to accomplish herein. Although Presidential Eme-pency Board :`~<~. _'ir£corr:x-ner£iecx the estabishment c>f reaionai aizd sNszcm-w-ic: ear;os and te 1991ln-ioseNationaAgrcment prDNidd or the establishment of'suc:h ,anL~s. this CarrhLr elected toNo. 219. As a result Of its election, the Carrier withdrm a September ? -5 . 1991 notice to establish re2ional tie Liang's. A month and a half later, on Noveinber f 9. 1991. the Carrier sought to conibine the four tip ,anasbut it did not follow tiirou~gh urn its roposal after the Organization objected to the notice because the Carricrhad opted l'br the savings clause,
In its 1996 presentation to Presidential F-Aergncy Board No. 229. the carriers sought the 1le,~iility to aps1V the pry-Presidential Ertii:rg£ncy Bord o. 2 19 rules as YNvll as rhe £?sr'resientiai Erneracncv Board No. ? 1ruin s. ov,-ever, the 19National ALyreernerst provided. ?11 Article XV1. that the Presidential Emergency Board No,22 19 rules only applied to Lhose carriers ~xho tin£ely ei.ectelo iripi'ement the Presidential Emergency Board No. 219 rules.
hLIs. SinCe I965,, the bar~-aining history show£ that Oie Carrier does not have tic rvg,111 hat ;t seeks iodlav. Fhe Carrier simply cannot reassign vNork from one group of eniplo,,.-ees to another under ci~ee exi4.tim~, agreements or Article .III. Section I ofthe I=eruar~:" 7. 195 .itch Stabilization
prI or rules, which includes s=article 113. Section 1 of the Job Stabilization Agreement. J-he S-stern Rail Oang A2reernent therefore. crams nv jested rights that the Carrier had under Article III. Section 1.
The Carrier's reliance on Award o. 7 of Special Board of Adjjustrnent No. 107 is misplaced. In that decision, the Board dirt not, interret Article III, Section I because the Organization never challen_ c:d the Carrier's r=ht to transform a Liang witlf fiiobile he aeaarte rs into a completely new gang with a fixed heaclUaf-ters. `he Board found that =he Carrier rearranged the niarin-..,r oI'orL°anizin,,,,,riche arid building gangs. 'I'liis actIN-itv cannot i)e extra,)olated to ieaii that the Carrier is nfakina an orL~anizatlonal chance ifs this case.
Even it the Carrier's proposed action is an oenftionad or orgairation al change e underArticle-ana or the System Rail Gars Agreements. lft~e Carrier is COITe0, =hen it could take its proposed action whgwfer Article LII. Section I exists or not.
rcas;Igrunent of work ~vIll impact workers' seniority. Moreover. in conjunction ?with the Southern Pa-cic erger. the parties enterled inter New York Dock in:plerric-nunagreemrerrts granting prior rights to some ernlo-,ccs. .An Impl.-ivting, agreement gust euiav address how =o apply Lire-,e prior ri-hts ire viexv of the overall seniority ir11acts.
In surrirrrarv, the Carrier is trying to obtain thnouh arbitration that vlrich it could not obtain xhrouh co<lCctive bar(,cirri=,. If the Carrier prevrxil,~ herein. the result will undl-t-minc the national agreerraent srovisions overninregional and systern production ganoos as; xvell as negate the District 'Fie Clang. arid ystern Rail Gang A grey rnents. The Carrier simply ~vants to fill tie gang po ist' rrs from rr different seniority roster. Tire creation of such extra gangs is riot an operational or oranizationaehnoe.
In recent years. major track mairrtcriancand rclraiirrrtion is being pcrfonred bN- hi_;hly' .mechanized maintcrrance of '<v:ry gangs. These gangs \~:ork on huge rojectacross ran-· rnfes <;3f ,rack. Trafic-voiurne has increased substantially so drat the Carrier experiences great difficulty i. ~chedling track maintenance and rehabilitation. On busy rail Corridors. track rchabdiiation rrr=;:t be scheduled during o`f.eak seasons (customers will trot tolerate shipment delays during eak seaxons ) and lie completed as quickly as feasible. The district tie gangs cannot possibly satisIN these oeratior>al requirements,
Bv Its December r. _`003 notice. the Carrier seeks to estalAish a Iirrrned number ol'syslenn rail =gangs to splernenr the existing disifct tie teas. Having tl-il suplcnental., sY, sr'mi gangs participate in the work perforreci y the district tie gangs %~ III acccleraae the tune needed tee complete
work to one group of crrrlfo~ees, the Carver Nv:ll reap efficiencies ",)v assigning the vcrrk -o two OrcrUP s %}T emloYees. Changing the method crf perfor-rrrlrrrhe ,vork is much rrwre than an ail .11roC transfer of a frnhe portion of work sucas occurred in Special Boardc#'rMjvstr77e r V'o. 605, ~4avard Yo. j03(h). Rather, the Carrier Nvill enLyae n a material rearran2enre-t in the method ref accomplishing recurring tie. and surfacing wcrrL The change is similar to the type of erpluyce rearrangement adclresscinArsarilAn. `of,1`j)VejrrjBoarclo; 4tjusnnewN0. '087, if changrngothe headquarters c}f a three -rneinher brig; and uildino, gag constitutes an Article 111, section I operational car organizational change. then certainly, a rnassiva reor.-aniza>ic3n of major mil and tip: Maintenance programs a-smeets the criteria for art article ll. Section I change, Furthermore. other awards issued y Special Board of Ajustrnent No. 605 show that transferring %vrk from rte seniority district try anotber (but stav'srrL within craft boundaries) constitutes a transfer ofvvorunder Article III, Section I of the ebruarv ?. 16S Job Stabilization Agreement. Special tzar°d cad 4r jzrsiment."C~r. 005. :Pr~-crr _-'cr.. '06e '-6 crr0 4 117.
A_ereemerts. In l 984_ the Carrier demonstrated that it leas the right to transfer the work under the"Se aoreenmits. IC transferred division Nvork to the district tie gangs vllhout any protest from the Cdr=oaniation. o. the Or-,arrizarion conceded that the Carrier has she autlroriiv to transfer work amorro the eerr>s of mrr.enarrce art -~vav Iorces, In addition. the Carrier is not consolidating seniority districts. All employees ~N-iII maintain their status on the current seniority rosters. The three tiers of seniority ~;vfl rerraaln and endure.
The District Tic Clam and Svsterra Rail C-TanuA_uTreerrrents do not reserve any work e>rclasivei~, to any particular group of enilr3-ews. In the past, the Organization has unsuccessfully
Paue 1'.chailemaed the Carrier's pr-eroga~Ivc tco a~ign systetn rail gazes to p erforan routine track maintenance vvhich. the Organization asserted. belonsas -xclusivelv to division forces. .A°RA3 lhrtl Dr`vis~-on. -l=waro`A'_~. .'99`r. Thus. rafx lak-ir<<w and tie work is not reserved to anNr kind cat env.
The Crrler dial riot \, air°e car bargain away rights, o take the proposed action ire the S\ stem Rail Gana or Dstrkct I`ie Gana Agreements. Neither ofthose contracts inetions the Femarv ?, 1965 Job Stabilization Agreement. Section 3 0 of the Svstem Rail Garaa- A2reerrient only operates to supersede prior rules pertaining to system vangs. The section does, not denigrate rides covering other matters irrcudinopz°i-xlrcra~°iztial changes, The Oranization .swggests that the Carrier's notice of Decemb- r 5. 2003 %s ~iri attempt to
NntlJr2 are the negotiating- histry ten.-Ionstrates that the Carrier el£er xvaived itst-ights under Arfcle III. Section I roc emitted that it ac-s authoritv to et?-,age: iii the proposed operational and. on-anizatzonal changl-. The niernber of Presiential Emergency Boa.rd No. 163 -who skeptically referred to a proposal as rewhitionry -was adclressizxg a proposal shat i.~oulcl have allov.ed tire
.~imcial Boa_`c!i A~,I,"zi5!rne_gt .¢eO.''. Aisar°(I ','r). cleai·lv delMeated that a road interpretation must a given F£) ,23e operational and oirtatsnizationac'iane'e atioaiiat',- found in °'2i title
An implementing, agt°een2ent 15 not required t,°het"Le such an agreenient woulbe tapriecessary on a particular property prior' o the Joii Stahl lizatinn Agreement. :~,Pecial Board r~ :Musrlnenftr. 605, a,fwar°d:~,cr. 43. Since the Carrier i; not transferrino errrplcrvec,;, no loican reason exists for eotiatfnu an implementing agreement.
Both the Oranl7anc>.n and the Carrier proffered extensive extrinsic eviden=ce to support their respective positions. The Organization relies not only on the rlegotitltrng history ofvarious national rrgi-c:c:rnents bw also on an al3e==xed adrnls«crn that a Carr1ier official rncfe =ef0re a Presidential Erarerencv Boar. The Oreanizatio n al,-,o subrrms that the provisions of the District Tic fang ;end SNsterrr Rail GnL, Aereerne n'ts demonstrate that the Carrier wai%-ed its riOit to 1m into effect the
action escrIiein its December 5. 1003 notice,' f or its part. tire Carrier contends Mat its movement (.If %vork frtrrn. division forces tci district tie gangs are 1984 excrnpliies past pnacticb o=f rnaing chanaes sirrafar to tyre rahan2e contemplated ire its ecewnber 5. 4003 notice. ``he Carr er <a'~ err? that staternenis triadeefore Presidential rer-Lency° Boards can hardly ; construed «s acfrnissions and ce.r-tainlv cannot ire r;nllzecf to interpret solemnly negotiated agreements, `fire Organozati Oil replies
More specifically, tire Organization argues that Sostiott 10 of the System Rail Gam-, Agreement r?r)erafes akin to 2 Lipper clause so that tire Carrier relinquished arty tights 6t had in pre-1983 agreements unless evpres0y enunciated in the SNsterrr Rail Gang Agreement. SBA N0. 1 087: :,%varo. I S
attempting to unilaterally amend the District Tic Gang and Systern fail Gant, Agreements in violation of the Railway Labor Act. °I`he Board carefully evaluated thetotality of the extrinsic evidence. '4° cncluCe that, within
While Article Ill expansively recognizes the Carrier's r.i-11t to engage in technolo-ical. o,ertionai and c>roaniztiona1 claanoes. the drafters of the Job Stabilization --k(Ireement did not precisely define those three ty es of changes, flovve-~,er. the express enunicration of 1hree cham,
implies that all otfaer types of changes are outside the ambit of Article ITT, Section I. \14arc.over. it is abundantly CIeaTthat the Carrier is vested with the right to transt'er work or employees throughout its system, without abridging craft ];ties, ln e<ajilntrilt.?3b with a lechriological. operational or organa.-ationl change . As the artfes stipulated., the threshold ~ssueef'ore this Board is whcakle$ the action described in the Carvicr's December 5. 2003 notice constitutes a teclu-iolouical, operational
This Board ertcptt3sizes that extrinsic evidence is not the best e~ -i=9erace co resolew this particular dkinite. Extrinsic etttitttCe is probative and reliable S4'$ren an agreement provision £% unclear and "hen tit rec=atr3 Lacks :any past arrbitt-a3 attehorit,~ on an issue in con_meavy.
grad rest clnvs for- tote ricice and bulling, fan(.,. he Board wrote that a critic al iei:ir~r i~t each case is necessary to ". . , Pinpoint tire proper standard to use to etertraine vflic her -r-t opertiottal and oreanizationa< chanc~e occurred." Without articulating any standard, tie Board ,.vent on to declare that. "Insofar :mss the carriers have tainted wide discretion to me operational and organizational thanes. an oJeC?lve analysis requires that NkIdlatitde must exist to proeect the right ofthe carriers tC) take such operaticttal car ori!tii.autic~nal ehart,,cs." 'Ffie lord's analysis was self-confirning. In essence. the Board stated thl- definition of an operational or organizational change is an operational or oraaniztional change. 'The Board held that since =he Carrier has substantial discretion tot make operational and organizational changes. the same wide latitude must protect that discretion. It is 'Vident that the Board ~xas ?nc.tre concerned about the qnici 1;,ro quo in tire Job Stabilization Aareettterit rather than fratitina reasonable standard or principle for dotermining, what activity
concluded that. inasmuch as the empl-yees receive protective benefits as a result of an operational or ~~c°ganxzatlorraI change, the C.`at-t-itt- must Cs-~ making n change that trieget-s those bCDefitS, NN11ile .'1;Vc1t'dA'o. p failed to articulate a delifinilion of an operational or organizational change, the decision is distinguishable from the case before us. In Ati=<.fl°(] No. ;, the Carrier abolished a £?an2 end established rtew gan;~ ~,vItit revisions to tlte,.~a~'s hours of assian3ent. reht days and headquarters. In this case. the Carrier acknowledges that i2 is rest abolishing any district tie «angs «rtannering with the stottioritv si<?vet-ned ,, ~ eitter the District J'ie ang or the SNstent Rail Gang A-Lt-eetatertts. FlierepOre. this Board concludes that the relevant standards (albeit, not necessarily the complete ct-iteri) for determining ,khether ',he Carrier's proposed :iction constituted an operational or Sick o. 10 i; Award No. 18 BMWE v, UP
Rick VN'ehrli
Union Mernber
Donald Grifflin
Union Memer