MERGER PROTECTION AGREEMENT
Parties to Dispute:
Brotherhood of Maintenance of
Way Employes
and
Illinois Central Gulf Railroad
ARBITRATION COMMITTEE
Joseph A. Sickles Neutral Member
J. S. Gibbins Carrier Member
Hugh Harper Employe Member
STATEMENT OF THE CASE
The parties were unable to resolve a dispute concerning the application of the
1972 Merger Protection Agreement and pursuant to Section 8 of that agreement the'
dispute was submitted to this Committee.
A hearing was held on September 30, 1985, in Chicago, Illinois, at which time all
parties were represented and afforded full opportunity to present pertinent and material
information; all of which has been considered.
QUESTION AT ISSUE
Whether an employee is required to bid on a higher rated position in order to
receive protected benefits from the September 15, 1972, Merger Agreement?
STATEMENT OF FACTS
CLAIMANTS MILLER AND POINDEXTER
Claimant W. A. Miller established carpenter helper seniority on June 17, 1971.
Claimant R. R. Poindexter established carpenter seniority on October 1, 1971. Those
were the respective positions held by the Claimants on the date of the merger. between
Illinois Central Gulf and the Gulf, Mobile and Ohio Railroad in 1972. As employees
CLAIMANT HOPSON
Claimant Hopson established seniority as a Group C Machine Operator on
March 26, 1971 and he held that position at the time of the merger. During the period of
time from November 29 to December 31, 1983, he was only able to hold work as a
Trackman - a lower rated position in the track subdepartment.
Between the date of the merger and November 1983 (when Claimant Hopson was
forced to work the Trackman position), several employees junior to the Claimant bid on
and were promoted to positions above Group C Machine Operator. Specifically, it
appears that four less senior employees currently hold positions of Assistant Foreman or
Foreman within the track subdepartment.
On behalf of all three Claimants, the Organization submitted claims for
protective pay under the September 15, 1972 Meger Protection Agreement for time spent
working in position lower than those held at the time of the merger.
The Claims of Poindexter, Miller and Hobson were submitted in January of 1984
and eventually denied by the Carrier's Director of Labor Relations in ApriL That
declination was reaffirmed in September in a letter in which the Director stated that
"since (the Claimant's) can be working in higher rated positions, (they are) not entitled to
protective pay under the agreement."
POSITIONS OF THE PARTIES
ORGANIZATIONS POSITION
The Organization contends that under Appendix C of the Merger Protection
Agreement, the Claimants are entitled to rates of Carpenter, Helper and Machine
Operator while they occupy the Bridgemen positions. Appendix C reads in pertinent part:
"Upon request, the New Company will furnish the Organizations, for any
employee appearing on rosters in Appendix B, information respecting his
normal rate of compensation."
"Employees entitled to preservation of employment who, on the day prior to
the consumation of the merger, hold regularly assigned positions shall not be
placed in a worse position with respect to compensation than the normal rate
of compensation for said regularly assigned position as of the date of
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CARRIER'S POSITION
The Carrier bases its position on a different reading of Appendix C. The Carrier
asserts that it applies this provision to these Claimants in the same manner it applies
comparable language to other employees. Before any claim under Appendix .C is
approved, the Carrier determines the position that the employee would currently hold if
he had exercised his seniority- at every available opportunity since the merger. In this,
case, for instance, the Carrier has determined that the Claimants could be holding
positions of Foreman or Assitant if they had exercised their seniority and progressed to
these jobs as vacancies in higher levels occurred. Instead, junior employees successfully
bid on higher level jobs and are receiving corresponding higher levels of compensation.
Had the Claimant's exercised their rights they would now be earning what the junior
employees are earning (and perhaps the junior employees would now be working at the
lower positions). In any event, under the Carrier's reading of Appendix C, for purposes of
determining whether protected compensation is owed, each employee is deemed to be
holding the position which he would hold if he had exercised his seniority. Since the
higher level position the employee is deemed to be holding will virtually always pay more
than the position held at the date of the merger, the employee is not viewed as one who
has been "placed in a worse position with respect to compensation. . ."
In support of this interpretation of the language of Appendix C, the Carrier
submitted with its brief, the following:
1. The merger protection agreement between
the Carrier and employees
represented by the Brotherhood of Railway, Airline Clerks signed September 15, 1972;
2. The merger protection agreement between the Carrier and employees
represented by United Transportation Union, signed May 9, 1973;
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two other employee protection agreements negotiated at the time of the merger. For
example, the agreement covering employees represented by United Transportation Union
describes, in Section 3(h), the manner in which protected employees are to be
compensated during adjustment periods:
The first adjustment period will commence on the beginning of the first payroll
period for former IC employees following the date of merger. . .and for purposes of
determining whether, or to what extent, a protected employee has been placed in a
worse position with respect to his compensation and total time paid for during the
corresponding base period adjusted compensation, he shall be paid the
difference. . .
provided however, that in determining compensation in his current
position, the employee will be treated as occupying the position producing the
M
e of pay and compensation to which his seniority entitles him under the
Wreement and which does not re wire a char a in his lace of residence.
However, while holding a position in a class o service in which he established his
base period guarantees, an employee will not be charged with the earnings of a
higher paying position in a class of service in which he did not establish his base
period guarantee. (emphasis added).
It should be noted that in this provision, the term "current position" is used to
describe the position of an employee
after the merger.
In Section 4(a) f(S the ICG-BRAC agreement, the language is even more specific on
this point:
(a) In the exercise of seniority with the New Company a Protected Employee shall
be expected to occupy an available position in his home zone rated equal to or in
excess of his daily guarantee.
If a Protected Emplo, ee fails to exercise his
seniority rights to which he has the seniority and qualMications or has-been notified
in writing that he has the fitness and ability to become qualified) which carries a
rate of a exceedi the rate of a of the osition he elects to retain he shall
erea ter be treated as occu i the
PR_ which he elects to decline. The
New Company will notify a Protected Employee occupying a regular position rated
at less than his guarantee of the availability of a higher rated regular position. i
(emphasis added
Certainly, neither agreement quoted above is binding on the dispute in this case.
However, these provisions are relevant in interpreting Appendix C in that the other
merger agreements (1) are contemporaneous documents; (2) show an Intent on the part of
the Carrier that is consistent with the interpretations asserted here; and (3) illustrate the
manner in which other merger protection plans have been implemented in other parts of
Ithe Carrier's operation.
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AWARD
Claim denied.
g
Poseph
A.
Sickles
air an and Neutral ember
J. S.Fb ins Hugh per
H.
Carrier Member Organization Member
. Date
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