SPECIAL BOARD OF ADJUSTMENT NO. 605
PARTIES ) Brotherhood of Railway, Airline and Steamship Clerks, Freight
TO ) Handlers, Express and Station Employes
DISPUTE ) and
Western Warehousing Company
QUESTIONS 1. Did the Carrier violate the provisions of the February 7,
AT ISSUE: 1965 Agreement when it failed and refused to compensate
protected employes hereinafter named, when they were fur
loughed by the Carrier?
2. Shall the employes named herein now be paid in accordance
with provisions of February 7, 1965 Agreement from date of
furlough?
W. B. Peters W. J. Page
P. J. McGeever A. iI. Borowiak
W. J. Lloyd E. Richardson
J. M. Sliwinski A. Kodykowski
C. L. Papciak S. J. Perry
F. F. Swiercinski K. J. Kocher
W. J. Trzeciak J. E. Banister
J. S. Swiercinski S. Palmisano
Ralph De Bartolo B. J. Callaghan
0. J. Farrington
3. Shall Respondent be required to pay each employe named
above interest at the rate of five percent per annum, from
date of furlough, on the month the wage is due them under
the provisions of February 7, 1965 Agreement?
OPINION
OF BOARD: The Organization filed the instant Claim on behalf of the office
and warehouse employees who were engaged in receiving, storing
and distributing freight at the Chicago facility. The Carrier
was a subsidiary of the Penn Central Transportation Company and
operated two warehouses -- the one in Chicago and the other in Harrisburg. As
a result of a total decrease in business at the Chicago facility, the Carrier
closed that warehouse early in 1971, and furloughed the Claimants. Prior there
to, the parties had negotiated a substitute formula for that provided in Article
I, Section 3 of the February 7, 1965 National Agreeement, inasmuch as the
Carrier did not have data containing net revenue ton miles or gross operating
revenue. Although the substitute formula is identical for both facilities, the
one pertaining to the Harrisburg warehouse was executed on November 11, 1965;
and the one applicable to the Chicago facility was consummated on September 1,
1966. The agreed substitute criteria is hereinafter quoted, viz:
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Case No. CL-93-W
Iwo
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"
Section 3
"In the event of a decline in the
business of the Company in excess of 5%
in the average percentage of both inbound and outbound tonnage in any 30day period compared with the average of
the same period for the years 1963 and
1964, a reduction in forces may be made
at any time during the said 30-day
period below the number of employees
entitled to preservation of employment
under this Agreement to the extent of
one percent for each one percent the
said decline exceeds 5%. The average
percentage of decline shall be the
total of the percent of decline in inbound tonnage and percent of decline in
outbound tonnage divided by 2. Advance
notice of any such force reduction
shall be given as required by the current Schedule Agreement. Upon restoration of the Company's business
following any such force reduction, employees entitled to preservation of employment must be recalled in accordance
with the same formula within 15 calendar days."
In denying the instant Claim, the Carrier interposed a number
of defenses - procedural, as well as on the merits. One of the procedural
defenses is directed at the failure of the Organization to discuss the instant
Claim on the property. Although the Carrier concedes that the parties met in
conference, it asserts that the discussion was centered only on the alterna
tive Claim which arose out of an alleged violation of an Agreement negotiated
on January 22, 1968, rather than the alleged violation of the February 7, 1965
Agreement and the substitute formula. Furthermore, the Organization is ac
cused of raising a new issue before our Board which was not discussed on the
property -- i.e., both facilities, Chicago and Harrisburg, should be treated
as one entity.
In this posture, it is apparent that the parties met in con
ference and failed to reach an Agreement on the disposition of the matters
pertaining thereto: We should not be placed in a position of determining what
items were discussed at that conference, absent clear and convincing proof.
Hence, we must assume that the Claim before our Board was discussed -- whether ~_rr
perfunctorily or in depth is beyond our powers of discernment. Thus, we are
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Case No. CL-93-W
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compelled to reject the procedural attack on our jurisdiction and proceed to
an analysis on the merits.
The substance of the organization's thrust is directed primarily to the affirmation that both warehouse facilities comprised one entity
and, therefore, any decline in business which would permit reduction in
forces must include data pertaining to both facilities -- and not confined
solely to the Chicago warehouse. In turn, the Carrier argues that separate
Agreements for a substitute formula were negotiated; separate General Chairmen were involved; separate system committees were consulted; and separate
Officers represented the Carrier. In essence, it was the intent of the parties
to reach an Agreement for two separate entities and two separate Agreements
were executed; and at separate intervals, as well as involving two separate
seniority rosters.
Previously, we indicated that a substitute formula was executed
for the Harrisburg facility on November 11, 1965. The correspondence exchanged
between the Carrier and Harrisburg General Chairman during the negotiations for
a substitute formula, in our view, gives credence to the Carrier's insistance
that two separate entities were involved. In this regard, we quote a portion
of a letter addressed to the Carrier from the General Chairman, viz:
"Based on the information you have furnished,
we concur. We would appreciate your preparing a proposed agreement setting forth
this proposed criteria for the Harrisburg
Division of this Company." (Employees'
Exhibit No. 10 Pp2 of 2). (Underline added).
One other aspect requires further comment. It is the Carrier's
position that where a facility is completely closed down, protective benefits
are not applicable. In support of this argument, it cited the Organization's
concurrence in said position as reflected by an affidavit submitted by the
Organization in the U.S. District Court for the Northern District of Oklahoma,
in a case involving the Tulsa Union Depot Company.
Before our Board, however, the Organization adamantly insisted
that even if there were a 100% decline in business, the Carrier would still be
required to retain at the minimum, 5% of its force, predicated on Article I,
Section 3, viz:
"In the event of a decline in a
Carrier's business in excess of 5%---."
Necessarily, in construing said Section, we are required to give meaning to all
the words contained therein and to draw the essence from the four corners of
said Section. In the last sentence of Section 3, as well as in the substitute
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Case No. CL-93-W
formula, there is contained the following language, to wit:
"Upon restoration of a Carrier's
business following any such force reduction, employees entitled to preservation of employment must be recalled in accordance with the same
formula within 15 calendar days."
In a situation where a facility is completely shut down, how
could the recall provision apply? Thus, it is evident that the parties did
not contemplate a complete cessation when they negotiated Section 3 of Article
I. In this posture, therefore, we are prepared to accept the interpretation
which was presented in an analagous dispute by the Organization in the U. S.
District Court for the Northern District of Oklahoma, supra.
Award:
The answer to the questions is in the negative.
Murray M. Rohman
Neutral Member
Dated: Washington, D. C.
April 18, 1973