ALB
No. k
PROCEEDINGS PURSUANT TO PUBLIC LAW
89-?.x.56
In the Matter of Issues in Dispute
between
Southern Pacific Company
and
Switohmenee Union of North America
Opinion
a
Award
DETERMINATION OF.QUESTIONS C`ONCERNING ESTABLISHMENT AND
3tTATUICTION OF UBL s A A s i A~
,ER APFUNTHETZ7 -A NEUTRAL BY
MUM ON
APPEARANCES:
For the Carrion:
Willies Ra Demons General Attorney
PUBLIC LAW BOARD N0. 1:
Mr, John Ro Burge& Pasty Member designated by Switchmen's
Union of North America.
Mr, L. D. Buahp Party Menbar designated by
Southern
Pacific Company
Mr, d. Keith, Piaxinm Neutral Member appointed by the
National Mediation Board
PUBLIC LAW BOARD N0. 3.
Between
Southern Pacific Company
and
Switchraenes Union of North America
OPINION BY NEUTRAL MEMBER MANN
to
Introductiono
The Board
convened in
Stanford, California on October 25®
2966, and in
Sara Frahaiseog California
on December 19p 1966,
January fig 9.967 and January AO® 1967 with alb. -members present
at all sessions of the Board as follWs
Jo.n
R. Burgop Germpal Chairman,, Switchmen`s Union
of North. America, Member designated
by Represexitativa (Organisation)
L: D® Bush® Assistent , tR-anager of Personnelt.
S®uthexn Pacific Companye Member
deoignate4 ivy Carrier
3. Keith Nanny
Neutral
Xem~era appointed by the
National Mediation Board
The persons listed below appeare.d 'b®fore the ' Board ,,made
statente regarding the question of ineludiaig on
the
Docket of
the special board of adjustment certain cases which may involve
the interests of third parties and, t® tine extent developed
hereafter, requested or caamenhod upon the provisions in any
agreement establishing such board which they deemed necessary
for the protection of third
parties:
PLQ NO · 1
po
2
January 4p1967m A.M.
ha-,, George P. Lechners Vice Presidents
Order of Railway
Conductors and Brakemen
Mr, Jewell Edgar
Teague# Sertretaryn
General Grievance
Committees SP-Pacific Lines*
Representing Brotherhood of
Railway Trainmen
. TartuarY 4.8r 1967, P.M.
Mr. Robert C® Inman, General Chairmans Railroad Yard
masters of North Americas Inc.
Mr. John B. Blazfnp General' Secretary-T'i
easurera Railroad Yardarasters' of North
America. Tnco
Pursuark,. to fblic Law 89-456,. 89th. CongressD
HM
o
706D
June 2U
D
19668 Switahmong s Union a$ North America rec,(uested .
Southern Pacf is Company to join its'.
an
'hgreeuant establishing a
special adjustment board to consider arid dispose of a large sumbar of claims pending before the National Railroad*Adjuatment .
Boar (hereinafter referred to as NRAB) o?, referable thereto.
The parties were in agreement with respect $o the basic
procedure to be followed by the board and to including in the
docket to be submitted to the board approximately taro hundred forty
cases whidh had been pending before the NHAB for more than, one
gears some for as long as seven years. However, they were unable to agree with regard to certain utters and under the provisions of the Act they requested the appointment of a neutral
by the National Mediation Boardo The disputed matters concerned
p~ No.v
po
the consideration of five cases in which the interest of third
parties are allegedly involved. It was the Carriers view that
the special adjustment board could not consider these latter
five cases unless the agreement setting up the board permitted
the entire dispute, including the interests of the third party,
to be determined in the same proceedingo The Carrier further
contended that in order to bind the third parties such parties
had to
have notice
and full opportunity to appear and present
their oases.
The Union originally
took the position that the cases in die=
puts did not involve third party interests and therefore did not
require special proceedings. St is the Unions contention
that in
any event all
cases that have
been pending at the NRAB for more than
one year must be brought back for determination by a special adjustment
board upon the request of either party, Prom the outset, however., the
Switchmen have consented that the underlying agreement provide'that
third parties receive notice and be afforded an opportunity to be heard
if their interests are found t® be involved when the Board is constituted am hear disputes on their merits.
Officials of the Order of Railway Conductors and Brakemen,
the Railroad Yardmasters of North Americas
and
the Brotherhood of
Railroad Trainmen wrote to this Board expressing their view that
the interests of their Unions were involved
an
the disputed caseso
PL5
No
. I
pak
The first two Unions requested the right to appear
before this
Board and express their views.
The third Union requested that
the claim of the Switchmen
not be considered without provision
being first made for the protection of all interested parties.
Representatives from each of these
Unions were
given an opportunity
to
appear before this "procedural" Board and present
their
respeotive positions as
to what provisions they would wish
to be
included
for
the
protection of all
interested parties if .
the disputed cases were docketed.
Representatives
of
the
Order of Railway Conductors and
Brakemen and the Brotherhood of Railroad Trainmen were agreeable
to the
docketing
of cases involving what they consider to be the
interests ®f their Unions provided the rules of the Board granted
third parties ad4quate notices the
right
to appear and an opportunity to be heard. They indicated
an intention to participate
in the proceeding on
the merits and to present evidence and argument in support of their claims. The separate presentations
by ORCB and BRT Representatives also
referred
in part to the considerations that leaving cases at the First Division of the NRAB
does not solve the problems of delay
and
running claims and to a
preference for having disputes determined by boards on, the
property closer to the facts and circumstanoeso
However, the Representatives of
the Railroad
Yardmasters of
PL(3
Nb. 1
p o
5
North America took
the position that the disputes which involved
their Union
should
not be heard. by the special adjustment board.
They maintained that. under the circumstances, the
cases involv
ing the Yardmasters should be
decided only by the
appropriate
Division of the NUB,
No inference should be or was draamm bpi this Board that
these
helpful discussions constituted consent to joinder in. these pros
ceedings
on
the part of the third. party.Organizations appearing*
During these proceedings the three Members of the Board unani
mously agreed upon paragraphs l through
6
of the attached proposed,
Agreement establishing a special adjustment board. Paragrap?3 four
is of special relevance to so-called "third party disputes.,,
tyo
The Board shall bold hearings on each claim or
grievance submitted to it and due notice of the hearings
shall be given. The determination
that a third. or addi
tional party may have an interest in a dispute may sae
made by the
Beard as constituted with the procedurQI
Neutral Member or as constituted with the Neutral Member
to
consider and dispose of
the dispute.
Where it is de®
termined
that a third or additional
party may have ors
interest in a dispute, such
third. or
additional party
will be
given notice of the time
arid
date the dispute will
be heard and an.opportunity
to
appear before
the Board on
'such date and
present
their
case in a manner consistent
iiith the
procedures adopted by
the Boaxtdo The Neutral
Member of the Board shall be one 'of the two or
more
Mom
be rs
of the Board determinirrg.4hether
a
notice of
hearing
'will
be given
to third or%
sdditioneal parties arid shall be
ono of. the two ear more members of the Board rendering an
a4ard in . dispute where notice of hearing has been given
to,third or additional
parts®oo
With respect, to the problem of consideration of disputes involving
third party interests, the members of the Board designated by the
Carrier and Union were in disagreement regarding the inclusion of
. Pie
Ob.l
po
6
paragraph ? of the Carrier's proposed agreement. The paragraph
proposed by the Carrier is as follows:
o
No decision shall be randered 3n. a dispute
involving -one or more third.
parties unless it is re
solved completely as to all parties involved. The
decision shall interpret each arid every agreement involved ire a manner consistent with each and every
other agreement involved. The decision must be binding upon all parties to be valid. A third party shall
not be bound by a decision unless it has had notice
and an opportunity to appear and present its case era
an equal basis with all other parties,
There are essentially two basic problems raised by paragraph
four on
which the Board has reached tentative agreement
and by the specific language proposed by the Carrier quoted above.
First 3.s the question, of whether or not
a
special adjustment' board
established under Public Law c09-4$6 has authority to bind third
partiosa and if sop whether such,
powers
m~ be .exercised c6nsti~-
tutionallyo Second,
there is
the a_ue'stion of whether
os
note .
assuming third party cases are determined, the special adjustment
board oar be ordered in advance to interpret each union-;management
eontiiact "in a manner consistent with
each and
every other agreement involved". A third possible problem raised by the Carrier s
proposed paragraph seven, tile requirement of notice and app®x~-
tunny
to
be heard., seems clearly to have. been resolved by the
agreed upon paragraph
v4
above.
21, Discussion
Aa Doeketi~and DisPOsition.of Disputes involving Third Parties,
The basic question presented
here is whether or not the special
pL(3 No.
po
a
adjustment board established in this agreement may be given power
to deal with the rights of third partieso If the answer to this
question is "yes", a statement that third parties will be bound
by the decision of the Boards as proposed by the Carriers would
be desirable if not mandatory. There is no reason not to make it
clear to all concerned that third party interests may be bound if
consideration of such cases would require this result. Zndeedo
if a third party is given notice and appears, but is not made
aware of the intention of the Board to bind him® the notification
might be insufficient to meet the standards of due process. A
party who believes he is appearing merely as a witness may prepare
and present information in a far different manner than ore who comes
before the Board as a party who may be bound by the decision.
This brings us to the crucial issue of whether this Board
can take and decide these third. party cases, a question which
does not appear to have been directly decided under Public Lair
89=456
(gee also federal Register Title 2% Chapier' Xa part 1207),,
and which may have far-reaching consequences as to the nature arid
forum for adjudication of this type of so-called minor dispute
in the railroad industry.
At the outset it
ahsuld.be recognised that when there is a
dispute regarding assignment of work presented., a. special adjustment board must either have the power to bind all disputants
in a single. proceeding or it cannot consider the dispute at all.
p~ Na. i
po
s
This conclusion follows directly from Transportation-Communica-
tion Employees Union
vo
Union Pacific Railroad
Coo, 385U.Sm 157
(December 5,
1966)9 which held that when presented with a juris=
dictional dispute under en existing contract the NRAB must join
the third party union in the proceeding before it anal dispose of
the entire matter. A special adjustment board to be established
under Public Law 89-4.56 provides nothing more than an alternative
forum for disputes which have heretofore gone to the
NRABo
and is
intended to alleviate the huge backlog of cases pending before
the NRAB. That the latter was the
intent o£
Public Law 89®456.
seems clear from the House and Senate Reports ff.Ro 1314.0
ppo
39130
89th
Gong., lst Sesso (1965)3 S.Ro 1201b
ppm
1®3s 89th Congox 2nd.
Bess. (1966). In this sense a special adjustment board is deriva
tive of the NRAB. Its decisions have the same binding effect and
are subject to the same limitations on review as those of the NRAB
itself. H.Ro lllkt, gupra at 160
The legislative history of Public Lass 89 4#.,56 seem clearly to
indicate that there was no intent on the
part
of Congress to grant
a special, adjustment board posers in excess of those which the NMB
itself can exeroisea It would seem to follow directly from the
T.~ case that
a
special adjustment board. does not have the power
to decide such a case between only two of thm parties, leaving the
third. party rights to be determined 3.n an independent proceedings
If Public Law a9-456 is interpreted to prohibit final adjudication
of rights other than those of,tho carrier and
the particular
PL13
Nai
orgmization which. set up the special, board,, the T-9EU ease
t-=o11.ld
require a holding that the special adjustment board. could.not consider the case at all. Otherwise the special. board. mould have the
,rower to malee determinations which the iWB now has no power to
wake& and could thus thwart the Supreme Court^s articulated policy
favoring eseditious settlement of the entire dispute,
A.
While Congrassu intent seems obviously not to give special
adjustment boards more power than the KtR$ itself, there in little
indication that
Congress intended special. boards. to have any less
power than. the KRA8. The basic justification
for
establishment of
special boards is the fact that there is such a long delay before
. c.p~
The question of whether or not
jurisdictional
disputes
am
rising under contracts which have
voluntary
arbitration clauses
should be decided. in
2.
single proceeding requiring the presence of
a third party union has recently been.
the
subject of considerable
debate in legal. periodicalso See ,Tones, Autobiography of $ Decision:
The Function
of
Innovation in
Labor
Arbitraan.National
t©®ders o oinder an nvaV)-,ea erg
b
sees
~ar~s°~aaa~.~u~`d~
ing
n.a'taovin~.#.l Parties to a Jurisdic
tional. Dispute into"77tra"`ou-.~"'Me
bM5ious
race u_re of
a=nal
8v" -' Leo ''T;o7® ; onese n udgaaag and oven
thational Steel Arbitration into a Dubious ocedurem 779 'avvo Lo
even
rd
essor E gar ones as an a positioxi that
an arbitrator presented with what is essentially a three
party
dis
pute should exert substantial pressure on the contracting union to
seek. a court. order joining the non-participating anion. Whether or
not
the
procedure suggested any Profes6or Jones is sound for the
situation with othich he was confronted. ire the substantially differ
ent context of grievance settlement in this industry the Supreme
Court has construed the Railway Tabor Act to be best effectuated by
determination of these conflicting claims in a. single brcceedingo
PL 6
rib-
1
po
10
an NRAB determination can. be obtained, The need to eliminate
delay in cases involving jurisdictional disputes is certainly
no less than that in eases involving other disputes over which
the special board has power,
There are two decisionsg Sadler
ro
Union
Ro Gooo 223 Fo
suppo 625 (w©D, Pa.
1954)®
and Sadler
vo
union
Ro Coo, 125 F.
Suppu
912 (W.D. Pa. 195J~-j.?6 which might be cited as indicating
that a special adjustment board should not
have jurisdiction
over disputes involving
third parties, The
board ins the Sadler
cases dyad been set up by voluntary agreement under Railway Labor
Act §3 SsnondD and
the Court felt that
one not a party to
the
agreement could not be bound by it. The court stressed the
fact that there was no mutuality of
contract with
regard to the
third party. In the present case the
board is
established under
express statutory authority& reflecting m, new Congressional
policy regarding on.-the-property determination of minor disputes pending befores or referable top the NRABn A special adjustment board will be set up
at the
request of either party.
If., as in the instant case. the parties cannot agree as to rules
of procedure,, those matters
are to be
determined by a Neutral6
Under these circumstances
it
can hardly be said that the Sadler
decisions
which,
turned on
contract lair are controlling. Further
mores it is important to note that much of the Sadler opinions
was concerned
with
the fact that the third party had received
PL6
No.
pa
11
inadequate notice of the proceedings anal had no notion that i t
could conceivably be bound by theme These latter infirmities
would not
be present under the procedure to be adopted in the
present agreement.
It is true that the language of Public Lays
89=x.56
could be
interpreted as providing that the disputes to be heard by a
special board will be between the parties to the agreement only.
For example the Act atatesD "Such awards (of the special
adjust
ment beard) shall be final rind binding upon
both
parties to the
dispute
o
0
o"
(Emphasis added.), It must be rotede hovrevere
that
when Public Law 89-x.56
was passed the T-CEO' ease had not
been decided. At that time disputes before the NRAB regarding
work assignment could, axed normally werem decided between management and only one union even though the other union wood not
be bound by the proceeding and could later seek an inconsistent
determination. (See the dissenting
opinion of Justice Fortes in
T=oEcr
case; see also 65 Mich Lo Revo 386, 387°388 (1966)0) Thus
when Public Law 89-456 was considered Congress
had
no reason to
focus specifically on the problem now before this Boarde
Furthermores
63
First (m) of the Railway Labor Act provides
for awards to be "final and
binding
ova both parties to the dis=
puteo
(Emphasis
added.) This wording clearly seems to envision
only two parties. Yetm the Supreme Court in the T-cEU case did
not consider the presence of the word "both" as an obstacle t®
PL~3
No.)
po
22
its decision.. The Court was aware of Public Law 89°!(-56 since
the majority, In footnote
4.
of its opinion, referred., to certain
changes which the Act had brought abouta Because the statutory
use of the word "both" posed ago problem in the T®CEU case it
should not be read to present an obstacle here.
Legislative history on the question of whether Congress In
tended special adjustment boards to consider these three=part
disputes is sparse, Neverthelessg what there is indicates that
the members of Congress assumed that such disputes would arise
and be dealt with by special adjustment boards. In the House
Report it was stated:
o o o
Sores concern. eras expressed during the hearings
by witnesses representing the carriers that the mechanism established by the bill could be used by one union
fogy the purpose of raiding the membership of another.
The committee feels that there is no cause
for
apprehension on this score, since all persons involved a_-we
expected to utilise and apply this legislation in
good faith in accordance with its purpose and intent.
This weans that neither a union nor a carrier can. properly demand the establishment of a special board with Jurisdiction so broad as to invade the jurisdiction of another
union as heretofore customarily respected in the establishment of special boards by voluntary agreement; should
any party do so the party
upon whom
demand is made would
be expected.to refuse to agree to such jurisdiction.
Such refusal could then force a jurisdictional determination by a neutral designated as provided in, the bill*
The neutral, in turn, would be expected to determine
the jurisdiction of the board so as not to invade the
established jurisdiction of another union., Ii,R. 1114
sBpra at l1.o
While one way of reading this language
would suggest a
pl.l3 No .1
po
13
decision against consideration by a special adjustment board of
cases involving the interests of a thirty party unions a careful ex.
aminiation of the House hearings and the testimony upon which the
quoted statement apparently is based indicates that what the Com~
mittee was concerned with was not eh problem of Jurisdictional
disputes involving assignment of the work,, but rather the ques
tion of unions with overlapping
memberships
competing with each
other
for
members by establishing special boards t9 deal with ln-~·
dividua! claims. The difficulty envisioned is the raiding of mem
bership because-only the statutory representative can present the
claim of an employee to its special boards
kra J, 'E. Wolfe' Chairman of the National. Railway Labor
Conference, stated, the problem. to one Committees using the fol
lowing hypothetical situation:
.,..The Order of Railway Conductors and Brakemen is
the duly accradited bargaining agent on railroad A. But
4.0 per cent of the conductors ova railroad A are affilkat;ed
with the Brotherhood of Railroad Trainmen. Of course4'
this is .hypothetical® but nevertheless. eircumatances just
exactly similar to this are prevalent throughout this industry on practically all railroads'. Now, the ORCB, the
bargaining agent could request
a
special board, The
carriers ecauld have a mandatory statutory obligation to
agrse
o e o
That means that all the claims that the BET
is hard
1
ins
for their conductor members would have t® go t® the
Adjustment Board
because the BHT is n®t
the statutory
bargaining agent for conductors'.
Nee.t.e ORCB would got expeditious handling of its
claims to the great
disadvantage
of the other organizationo Hearings on H®Pm 701. 704, ?fibs before the Subcommittee on Transportation and Aeronautics of the Committee on Interstate and Foreign Commerce; ?louse of
Representatives'. 89th Congrasap
ast
Sasso $9.96,5) 1990
PLB NO
P. po
14
When read in light of the problem
which
was placed before that
Committee it is clear that the statement ire the House Report is
not intended to prohibit special boards from dealing with juris~-
dictional disputes regarding work assignment.. See Note,,
48
Ind.
170 je
109, 119°1CV (1966),
This position is further supported
by the fact that the issue vas raised by the carriers,-
t-Thon
with regard to jurisdictional disputes, have continually pressed
for
a system requiring a12 such disputes to be determined in, a
single action binding all parties affected. See
65
riUcha . LA
Reeo
386a 388390 (1966)0
Thus it is.evident that. two strong policies have recently
developed
which must
be taken into consideration in attempting
to decide how Public Law 89=456 should be interpreted: first,
she legislative
intent to
cut down the long delay in determinng
these labor disputes generallk, and. second., the Supreme Gourtus
construction of the Railway Labor Actin the T°=SEi case requiring resolution of Jurisdictional dispute cases in one proceedings
These two policies ears only be effectuated in cases involving
jurisdiotional- disputes brought before ibis Board by interpreting
Public Lava 89-456 to allow this Board to bring all parties , before
it and t® decide the rights of all parties in a .single proceeding.
The only issue which then must be considered is whether
there is some constitutional objection to requiring a third
party union to join in the proceedings before the Board as constituted
P1-a No. I
p. 15
under the agreement, The most frequently raised constitutional
question in cases of this type is whether or not the third party
had adequate notice of the proceeding and a full opportunity to
be heard. C2early® where no notice is given the third party
cannot be bound. Hunter vo Atchison T. & S. F. Fly., 171 Fo2d59L, (7th C3ro 1948). As has previously been pointed. out, Paragraph
4.
of,the agreement of the.partiezs herein fully provid®s.
for notice and opportunity to lie heard.
A final constitutional problem, and a crucial ones stems
from the fact that the third party has no official poser over
the selection of the board or the determination of its proce~-
dares; and further than one member of the board will be the ropre-n
sentati®e of a
union
at least rival.
to
the particular dispute and
charadterized as a "party" or "partisan" member. (Fed. Peg, Title
298 Ch. Xs
part 120701 (a))
It is obvious that a carrier and a .union- cannot voluntarily
set up o, board with powers betiaeen them to adjudicate the rights
of third parties, Seep eogoH Edwards vo Capital Airlines,. 176
F.2d 755 (19491, cart. denied,
338
U.S. 885 (1950). Even if the
third party has full right to appear and to be heard& the fact that
the only members of the board. represent participants
in
the case.
robs the proceeding of objectivity and vendors
it
void, much in
the same easy that a jury iii a courtroom proceeding cannot be
composed of relatives of one of. the parties. Ova the other hand,
PL43
N~·
f
p, 16
if aboard is set up in a manner which preserves objectivity, the
fact that a party, although appearing at the procedural stage,,
did not have a vote in the establishment of the board is not
necessary to its jurisdiction over him,
In the present ease the rights of third parties in costrom
verdies before the Board are sought to be protected by that clause
of paragraph 4 of the agreement providing
The Neutral Member of the Board shall be one of the
two pr more members of the Board determining whether
a notice of hearing will be given to third or additional parties and shall be one of the two or more
membora'of the Board rendering
an.
award in a dispute
where notice of hearing has been given to third or,
additional parties.
Under this provision no decision may be rendered adjudicating the
rights of thi-Vd parties unless the neutral member of the three:mane board is a ,amber' of the majorityo ' In this respect the case
is elparig.distinguishable from Edwards vo Capital Airlines,
supra in which there was no neutral member of the panel anal the
outside party had no representative on the panel, or a case in
which# although a neutral is a merber of the panel® the neutral's
vote is not required for a decision as to the third party rights,
Compare the fact that a court_ for example,, may obtain
power over any person who sets foot within the state in which it sits
even though the persona does not live in that state and had no power
to vote for or against the ,judge or to determine the manner of his
selection or the procedures of his court, .Tames, Civil Procedure
§12,2 (1965),
JP1-
19 /Va.
pa
17
In the latter situation management and the union could combine to
defeat the rights of third parties, This problem could not arise
under the plan in the instant case, In other words, whenever a
third party's interests are at stake the neutral member of the
Board controls the decision.
The case of Arnold
vo
United Air Lines, Inc. 296 Fo2d 191
(7th
Ciro 1961 D, supports the validity of the procedure adopted
herein, There' the Carrier
and
the Union each had representatives
on a special board established under Railway Labor Act, Title Its
See.
20.,
pursuant to an agreement which provided for a neutral in the
case of a deadlock. In order to preserve
the rights of a
third party,
the representatives of the Carrier and the Union
agreed
at the outset
of the hearing to
deadlocks and
immediately requested the appointment
of a neutral to whom
they left
the decision,. The Court held that the
procedure met the requirements of ;due process,
In voluntary industrial, arbitration situations involving a
third party, tradition and prudence dictates the more conventional
view that a party can only be bound by
consent, moreover, it is
the
practical as well as waatomarg function of grievance adjudication to
settle disputes, not
create them, However,, in evaluating the validity
and sense of the procedure adopted in this case, one must consider as
well the alternative method of
adjudication
were the special adjust
maent board to fail to take jurisdiction over any cases involving
asserted third party interests. Such cases would theca have to be decided
by the NRAB in a single proceeding pursuant to the T-fEU case, Unless
special procedures are adopted following T-GFU, the NRAB panel
which
would hear such a case
(~Gg
No. /
P. 28
would consist of an. equ~il number of representatives from the
carriers and the union
members
selected from the crafts
over
which the particular division has jurisdiction. No neutral
member is
required in
the absence of a deadlock. Furthers and
most significanta is the fact that the structure of the NRAB is
such that one of the unions could have a representative on the
panel while the other might not due to its classification in a
different division.
Although some writers in criticizing the lower court ins
the 'f---CEU case had argued that such a proceeding would be in-
equitable&
o~
6$ Mich, Lo Rev®a
sues
at 389®390,, the
Supreme Court upheld the District Courtss decision. holding that
joinder of the third party seas required,. Under these circum
stances it would seem that the procedure to
be
adopted in the
instant case is at least as objective with regard to third parties
as that before the NRAB itselfs and thus is clearly constitutionalo
With the inclusion of the special provision giving send
tml the neutral 3n canes involving thirst
party rights
the situ-
ation hemb©comes strikingly parallel to implead®r actions under
Rule
14
of the Federal. Rules of Civil Procedure, Under this rule a
defendant to an. action can loin a third party whom the defendant
claims 3s liable for any claims defendant 3.s ordered to pay plain
tiff. If defendant could not bring in such a third party but had
to
pursue him in an independent action., defendant would be faced
with the possibility of inconsistent decisions. The federal courts,,
recognizing the
necessity
of sash a procedure to protect defendants
have permitted such third parties to be brought in peen when the
normal rules of jurisdiction would prohibit defendant from, bringing
his claim against the
third
party as an Independent action,
3
PSoorea
Federal Practice, qlt(.v26o
- PL
13
iva.
J
po
19
A possible objection to the special provision adopted. herein
is that Public Law 89-1-ta5b specifically provides: "Any two mem.
bers of the board shall be competent to render an award." Although the provision could be read to permit any two members, regardless of whom they represent, to render a decision, thus prohibiting the plan set out in this casein it seems more reasonable
to read the words simply to make it clear that unanimity is not,
required. Tile ordinary dispute to which this Act was directed is
bilateral in character. it
is
obvioub that if organisation. and ,
carrier
representatives can agree in such cases, the
need for
the
special-wording is
eliminated
because.there is no need whatsoever
for a. neutral. It follows then
that Congress
wanted to make it
clear that the neutral and any one of the parties could decide a
dispute, even though the other party
representative on the
panel
did not agrees Finally, the fact that the provision states
that
any two members are competent to render an award need not necessarily preclude the parties from naming one of the members who
must be includedo The provision on
which all Members of
this
Hoard are agreed seems in complete harmony with the intent of
Congress,
Therefore the special adjustment
board, under
the procedures
set out in the agreement, has the statutory and constitutional
power to bind third
parties in cases where this action is necess
ary t® s. complete determination of the rights of the Switchmen's
PL
6 No.1...
po
20
Union and the Southern Pacific Company; hence the agreement should
contain the following provision:
7o Decisions or Awards of.'
the Board shall be
final and binding on
the parties subject to the pro
visions of the Railway Labor Act, as amended by
Public Law 89
°~06o
No decision shall be rendered 3.n
a dispute involving one or more third parties unless
it is resolved as to all parties Involved.
If
in, a
judicial proceeding
an award is held not binding 'on
one or more of the
parties
to the dispute, including
third
partiest
the award shall be deemed not binding
on any of the parties. Its addition to the notice
required by paragraph four, copies of the agreement
establishing this special
board of adjustment and
any accompanying opinions shall be sent
dithin tea
days of execution. to all. parties alleged to have a
third party interest in docketed aaseso
This provisionp coupled with the provision requiring the Neutral
to be one of the majority rendering a decision would a'4 so aglow
the Neutral
to
determine that the matter was sash that the special
board of adjustment should not decide a case because in his vies
the third party's rights could not adequately be protected.
Whenever a dispute Involving third parties cannot be determined by
the Board tinder its agreed males the case would be returned to the
NRAB for adjudicationo
Bo Inter retatioza of Agreements
The Carrier proposes that the agreement setting up the
special adjustment board contain a provision requiring that in
cases involving third parties "The decision shall interpret each
and every agreement involved in a mariner consistent with each and
every other agreement involved."
This quoted
provision is too
P1,
a
Na . ~_
p o
21.
broad in its terms, The basic reason for a rule permitting all
rights to be determined
an
a single proceeding is to prohibit
two totally inconsistent determinations' botch of which cannot
possibly be enforced, Thus, as pointed out in the T-G°EU cases
the evil to be eliminated
is
separate determinations that two
unions are each entitled to do the same work, Prior to the
T-CEB case the carriers were subject to such conflicting orders
and then faced the dilemma of violating one of the orders no
matter what they did unless they could renegotiate with one of
the unions. see 65 rich
o
Lo Rev- 389®90 (1966)
o
The T-CEU
case prevented
this
kind of a conflict, tic the same time the
T-CEU case recognised the possibility that that management might
ha®e obligated itself £n such a manner that two unions were entitled t® do the same wcok under their contractso The irreconcilable cannot be reeoneiledo In such a case the Court specifi4
caliy stated that the carrier aright be responsible to pap for
idleness caused by awarding the work to another union. In other
words the contracts between the Carrier and each of the Unions
need not, and indeed should not, necessarily be read to be consistent completely with one another, Otherwise the Carrier coup!
avoid liability clearly called for by one of its contracts. There
fore the clause in question should not be included, It would seem
that the T-CEU case properly established the lam in this area and
that no provision is required,
PL
8 No
111, z~
11x® AWARD
10
The following cases shall be included on the Docket ®i°
Public Lair Board No,
Is
a Special Adjustment Board established
by the attached agreement:
Docket Idol, 37 481
38
359
39 3?3
b.O 619
40 743
2, The.agreement establishing such Board shall include
the following provision:
Decisions or Awards of the Board shall be .
final,
and
binding on the parties subject to the
provisions of the Railway Tabor Mate as amended
by Public Law 89-4560. No decision shall be rendered. in a dispute Involving one or more third
parties unless it is resolved as to all parties
involved, If in a judicial proceeding an award
is held not binding on one or more of the parties
to the disputes including third partiese the
award shall be deemed not binding on any of
the
parties. In addition to the notice required by
clause four, copies of the agreement establishing this special board of adjustment
and
any
accompanying opinions shall
be
sent within fifteen days of execution to all parties alleged to
have a third party interest in docketed cases.
/s/
John
c~6~.'1%D.
Rfos ~aarga
I3ldrge
L,m Do Bush
u~hs
/s/
a"o
Keith Mart
-36-
Kerty, ME
Attachments: Agreement anal
~F7Pi LAW y~7~T
~
Attachment °°A" PUBLIC BOARD NO, g
Dated at San Fraiseoa
California,, this 17th day of March. 1967.