SPECIAL BOARD OF ADJUSTMENT N0. 605
PARTIES ) Transportation-Communications International
TO THE ) Union
DISPUTE ) and
The Atchison, Topeka and Santa Fe Railway Company
QUESTIONS 1. Did Carrier violate the provisions of the February
AT ISSUE: 7, 1965 Mediation Agreement, as amended, when it
refused to compensate D. L. Hladky a daily make-up
allowance based upon the position he held on March
3, 1985 when he obtained five (5) years of service
(Freight Bill Clerk Position No. 6985 - $94.77 per
day), plus subsequent general wage increase, after
being displaced prior to April 1, 1985 and
titleholder of Assorter Position No. 6940 - $89.71
per day on April 1, 1985?
2. Shall Carrier be required to compensate D. L.
Hladky a daily make-up allowance of $5.06 for each
workday commencing April 1, 1985, continuing until
such time Claimant is titleholder of a higher rated
position?
3. Shall Carrier now be required to pay an appropriate
per annum interest rate on the amounts wrongfully
withheld beginning thirty (30) days after date of
claim?
OPINION
of THE BOARD: Claimant acquired a March
3,
1980 seniority date in
the Revenue and Customer Accounting Seniority
District. Thereafter, Claimant performed five years of continuous
service for the Carrier. On his fifth anniversary (March 3, 1985),
Claimant was a regularly assigned Freight Bill Clerk. The daily
rate of pay for the Freight Bill Clerk position was $94.77. Prior
to April 1, 1985, Claimant was displaced from the Freight Bill
Clerk job and he exercised his seniority to Assorter Position No.
6940, which was the highest rated position available to him, paying
AWARD NO. 457
CASE NO. CL-147-W
$89.71 per day. Claimant was regularly assigned to the Assorter
job on April 1, 1985. moo
Claimant initiated claims for protective benefits under
the February 7, 1965 Mediation Agreement, as amended, for the
difference in pay between the Freight Bill Clerk position ($94.77)
and the Assorter position ($89.71) for the months of April and May,
1985. Contending that Claimant's daily protective rate was $89.71,
the Carrier denied the claims.
The parties concur that Claimant attained protected
status under the February 7, 1965 Mediation Agreement, as amended,
but they disagree over exactly when Claimant became a protected
employee. The organization submits that Claimant became a
protected employee on March 3, 1985 while the Carrier asserts that
Claimant did not attain status as a protected employee until April
~r/
1, 1985.
Article I, Section 1(e) of the amended February 7, 1985
Job Stabilization Agreement reads:
"Employes hired on or after January 1,
1980, who acquire five (5) years continuous
employment relationship in the clerical
craft will become protected employes on the
first of the month immediately following
the month in which they acquire five (5)
years continuous employment relationship in
the clerical craft, unless they are not
regularly assigned on the date they are
eligible to become protected employes, in
which event they will become protected
employes on the first of the month
immediately following the month when
recalled to service and assigned to a
regular position in accordance with
existing rules of the Clerks' Agreement."
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AWARD N0. 457
CASE NO. CL-147-W
The Organization argues that Claimant satisfied the two
qualifying criteria for becoming a protected employee on March 3,
1985. The organization points out that on March 3, 1985, Claimant
had accumulated five years of continuous service and was assigned
to a regular position. The organization focuses on the Article I,
Section 1(e) language stating "...the date they are eligible to
become protected employes... " as the time for determining the
amount of an employee's protective guarantee. The Organization
submits that the language referring to the first month following
the time an employee becomes eligible for protection governs the
time he begins to receive protective benefits as opposed to the
time he acquires protected status. The Organization concludes that
an employee's protected rate is the rate of the regular assignment
which the employee holds on the date he becomes eligible for
protection, in this case, March 3, 1985.
The Carrier contends that the Organization's
interpretation of Article I, Section 1(e) renders superfluous the
clause reading "...will become protected employes on the first of
the month immediately following the month in which they acquire
five (5) years continuous employment..." An employee becomes
protected on the first of the month immediately following the month
that he completes five years of continuous service provided he
holds a regular position on the first of the month after the month
he accrues a five year employment relationship. In this instance,
Claimant accumulated five years of service as of March 3, 1985, and
based on that service, he became a protected employee on the first
of the next month, that is, on April 1, 1985.
The superficial question in this case is what is the
amount of claimant's protective guarantee? However, Claimant's lowe
protective rate is predicated on the rate of the position he
occupied on the date he became a protected employee. See Article
IV, Section 2 of the February 7, 1965 Mediation Agreement, as
amended. Thus, as discussed above, the underlying contract
interpretation issue is when did Claimant become a protected
employee: March 3, 1985 or April 1, 1985? To properly interpret
the Agreement and to answer the questions at issue, we must
carefully dissect the very precise language adopted by the parties
in Article I, Section 1(e).
Under Article I, Section 1(e), employees who are hired
on or after January 1, 1980 (like Claimant) must meet a single
threshold requirement before they have an opportunity to be
eligible to become protected employees. They must accumulate five
years of continuous service with the Carrier. Article I, Section
1(e) also contains a condition precedent to an employee's
acquisition of protected status. The proviso is that the employee
must be regularly assigned. However, it can only be determined if
the employee has satisfied the condition precedent after
ascertaining the date he is "...eligible to become protected..."
(In any event, there is no doubt that Claimant herein satisfied the
condition precedent inasmuch as he held a regular assignment on
both March 3, 1985 and April 1, 1985.) Once employees meet the
threshold criterion, they become eligible to be a protected
employee "...on the first of the month immediately following the
month in which they acquire five (5) years continuous employment
1400
AWARD NO. 457
CASE NO. CL-147-W
relationship..." Thus, the operative eligibility date or the
earliest date a worker can actually attain protected status is the
first day of the month immediately after the month in which an
employee reaches his fifth anniversary of continuous employment
As the Carrier persuasively contends, any other construction of
Article I, Section 1(e) would render superfluous the above quoted
clause. The parties do not write precise and detailed contract
terms only to have arbitration boards disregard their language.
Contrary to the Organization's argument, Section 1(e) does not
address the time an employee begins receiving benefits. Section
1(e) only specifies when an employee is vested with protective
status. The Organization's interpretation of Section 1(e) confuses
potential eligibility for becoming a protected employee with the
actual attainment of protected status.
Applying our analysis of Section 1(e) to the facts
herein, Claimant was eligible to become a protected employee on
April 1, 1985 which was the first day of the month following the
month (March, 1985) in which he accumulated five years of
continuous service. since-Claimant was regularly assigned on April
1, 1985, he became a protected employee on his earliest eligibility
date. His protective rate was fixed according to the rate of the
regular position he held on April 1, 1985, i.e., the Assorter job.
The drafters of protective agreements must set an
arbitrary date for a worker to become a protected employee. In all
probability, the negotiators wanted to avoid cumbersome
administrative and bookkeeping chores that would arise if workers
became protected employees in the middle of the month. Thus, the
parties agreed to a reasonable system whereby no worker could
actually attain protected status except on the first day of a r,/
calendar month.
AWARD
1. The Answer to Question No. 1 is No.
2. Question No. 2 is moot.
3. Question No. 3 is moot.
John B. LaRocco
Neutral Member
Dated: November 7, 1988
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