SPECIAL. BOARD OF ADJUSTMENT NO. 605
PARTIES ) St. Louis-San Francisco Railway Company
TO THE ) and
DISPUTE ) Transportation-Communication Employees Union
QUESTION
AT ISSUE: Do the provisions of Agreements made
prior to February 7, 1965 nullify any
provisions of the February 7, 1965
Agreement?
s
OPINION
OF BOARD: Claimant had been Manager and ,dire Chief, St. Louis
Relay Office for four years preceding September 25,
1964. On that date a memorandum of agreement was executed which provided that the position could be abolished whenever
Claimant vacated it or within twenty days after May 18, 1965,
whichever occurred first. As a consideration for this, Carrier
granted 8G per-hour increases, effective October 1, 1964, to
three positions at Lyndenwood, Missouri.
The position of Manager and Wire Chief was abolished,
pursuant to the agreement of September 25, 1964. Claimant bid
for and was assigned the position of Telegrapher. The rate of
the new position was 36.4 per hour less than his former position.
Claimant was a protected employee and seeks compensation for the
difference between the two rates.
According to Carrier, Claimant's "normal rate of compensation" was the lower rate once the September agreement was
executed, although the change did not become effective until.
many months later. The Organization contends that on October 1,
1964, the normal rate of compensation of. Claimant's regularly
assigned position was that of manager and Wire Chief.
The FeiDruar y 7, 1965, Agreement is clear in fixing
the guaranteed co-.apensati·)n as that which was the normal rate of
tile regularly assigned position on October 1, 1964. Although
Award No.
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Case No. TCU-42-_
Carrier asserts that' it included the 8(~ increase in the normal
rate of compensation for the Telegrapher positions, which was
given pursuant to the September 25 agreement, and therefore
should be entitled to anticipate Claimant's subsequent rate,
the fact is that the actual rate of the other employees on
October 1, 1964, was 8r,~ higher than it had previously been.
' If the September agreement had provided the 8(~ increase
effective October 2, Carrier surely would not have considered
it in the normal rate of compensation which must be preserved
thereafter. Why, then, should an anticipated decrease in Claimant's rate of compensation alter the October 1 rate to which he
is entitled?
The converse of this situation illuminates the proper
approach to it. If a September 25, 1964, memorandum provided
for a 1965 promotion and an increase in salary, rather than
an abolishment of a position and a decrease, there is no doubt
that a carrier with perfect propriety and success would maintain that the normal rate of compensation is that which the
employee enjoyed on October 1, 1964, regardless of prospective
increases.
A W A R D
In connection with this case, the Answer
to the Question is No.
Mil on Friedman
Neutral Member
Washington, D. C.
November/,/ , 1970
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