PUBLIC LAW BOARD N0. 1207
UNITED TRANSPORTATION UNION
VS
BURLINGTON NORTHERN, INC.
STATEMENT OF CLAIM: Request of former Chicago Yardman E. J.
Riddle for reinstatement to service,
with seniority unimpaired and pay
for all time lost until reinstated
to service with the Burlington Northern.
PREFACTORY STATEMENT: This award replaces that rendered by
this Board on December 3, 1973, the instant matter having
been remanded to this Board by order of the United States
District Court of Minnesota, Fourth Division, which order
was declared by the United States Court of Appeals for the
Eighth Circuit to be not subject, to appeal.
Our original decision was worded as follows:
"Mr. Riddle was discharged because he was engaged in employment as an investigator for a law
firm specializing in damage suits against railroad companies. In such capacity he helped prepare the cases of two fellow employees, marking
off duty for such purpose.
"The conflict of interest is readily apparent,
and we find it irreconcilable.
"Claim denied."'
.PLB No. 1207
Award No. 8
Page 2
Subsequent to our rendition of such award, Claimant
Riddle filed suit in the aforementioned trial court to
vacate such award. In 'his opinion, U. S. District Judge
Miles W. Lord acknowledged that the range of judicial review of Public Law Board Awards is "among the narrowest
known to the law" but
found
basis
for feview because o£
the "failure of the Board . . . to confine itself to
matters within its jurisdiction", citing 4S U. S. C. Sec.
153 First (q):
The Court held, ,.
"Accordingly, this court finds that the decision
-- of Public Law Board No. 1207 in Award No. 8
denying a claim for reinstatement on the grounds
of an irreconcilable conflict of interest due to
employment as an investigator for a law firm
specializing in damage suits against railroad
companies is without foundation in reason or fact
and cannot be a logical means to further the aims
of the cojlective bargaining agreement. Therefore,
the award given is beyond the jurisdiction of the
arbitrator and must be set aside."
We apprehend that the Court meant that the award is
beyond the jurisdiction of the
Board
since the award was
unanimous and since a neutral member is only one of three
co-equals on a Public Law Board.
Carrier appealed Judge Lord's order, but the Court
of Appeals held that the order was not a final order sub
ject to appeal and therefore dismissed the appeal for lack
of jurisdiction.
PLB. No. 1207
Award No. 8
Page 3.
We reconsider the case pursuant to the U. S. District
Court order.
RULES ALLEGEDLY VIOLATED: Carrier's letter of dismissal ad
dressed to Claimant and dated September 20, 1972 cites as the
basis for discipline Rules 700, 700 (A) and 702 (C) Consoli
dated Code of Operating Rules, which follow:
RULE 700
"Employees will not be retained in the service
-who are careless of the safety of themselves
or others, disloyal, insubordinate, dishonest,
immoral, quarrelsome or otherwise vicious, or
.who do not conduct themselves in such a manner
that the railroad will not be subject to criticism and loss of good will, or who do not meet
their personal obligations."
RULE 700 (A)
"Employees who withhold information, or fail to
give factual report.of any irregularity, accident or violation of rules, will not be retained
in the service."
RULE 702 (C)
"Employees must not engage in other business or
occupation unless they have applied for and
received written permission from the proper
authority."
FINDINGS: Both the Organization and Carrier call attention
to the alleged procedural errors. Carrier maintains that in
PLB No. 1207
Award No. 8
Page 4
the appeal process the claim for lost earnings was abandoned,
rendering this claim one for leniency over which the Board
has no jurisdiction. The Organization contends that Carrier
failed to schedule the formal investigation within five
days of its knowledge of the circumstances resulting in
discipline. We find neither assignment of error to be valid
and conclude that the matter is properly before us for all
purposes. _.
We examine each of the rules which Claimant is asserted
to have violated, the violation of such rules being the only
valid basis for his discharge..
Rules 700 authorizes-Carrier to discharge employees
who are ". . . disloyal, . . . (or) . . . dishonest . . . ."
We interpret the U. S. District Court holding to mean
that this Board exceeded its jurisdiction because of the
fact that our original award detailed no specific violation
of the Agreement by Claimant as a basis for discipline,
such award simply justifying the discharge of Claimant because of "an irreconcilable conflict of interest".
One of the reasons for the narrow scope of judicial
review of the decisions of public law boards is that we
operate in an esoteric field. Our original award was very
brief, unlike many judicial opinions. But neither in its
brevity nor in its failure to render a point by point dis-
PLB 1o. 1207
Award 1o. S
Page 5
cussion of issues was it unlike the thousands of other
similar decisions that go unchallenged in the judicial
system.
We found "an irreconcilable conflict of interest".
The transcript of the investigation was before us as were
the rules which Claimant Riddle was found by Carrier to
have violated: Our finding, to the initiated, simply
meant that Claimant's disloyalty, a violation of Rule 700,
was so palpable as to make further comment unnecessary.
The distinguished employee member of this board obviously
understood, for the decision was unanimous.
We herenow reaffirm our holding that an irreconcilable
conflict of interest resulted from Mr. Riddle's acceptance
of "employment as an investigator for a law firm specializing in damage suits against railroad companies". We
respectfully disagree with Judge Lord's contrary finding
and apprehend that restatement of our holding is essential
to preservation of the principle as a point for higher
appellate courts to consider in the event of further appeal.
We do not believe that when an employee accepts
remuneration from a perennial adversary of his employer
such employer should have to prove actual harm before discharging the employee for disloyalty. The law firm using
her.
Riddle's investigative product is a constant adversary .
of Burlington Northern. It is as if an officer of Macy's
PLB No. 1207
Award No. 8
Page 6
accepts covert employment with Gimbel's. (Mr. Riddle's
association was covert for many months and never voluntarily
revealed by him.to carrier.)
In persevering in the principle of our original holding we do not endeavor to break new ground; we simply restate the uniform holding of all known prior awards.on the
subject.
Decision No. 3310 of Special Adjustment Board No. 18
was authored by the distinguished referee, Thomas J. Mary,
a former Arizona Supreme Court Justice as well as Governor
of that State. The case involved a fireman on the Southern
Pacific who was also a licensed attorney. Fireman (Lawyer)
Waag undertook to participate in an F. E. L. A. case'on
behalf of a fellow employee doing the investigative work
and 'assisting the attorney who tried the case. There was
no showing that he engaged in any shady tactics. Yet solely
on the basis of such undertaking he was found to have violated the following rule:
"Any act of hostility or willful disregard of the
Company's interest will not be condoned."
Judge Mabry wrote,
"We can think of no more willful violation of .·.
(the rule). This is certainly to be classified as
`willful disregard of the Company's interest,' and
therefore an act of disloyalty to the company."
Award No. 3253 of the Second Division, NRAB, upheld
discharge of a car cleaner who was also a licensed attorney
PLB No. 1207
Award No. 8
Page 7
and who brought F. E. L. A. actions on'behalf of two employees.
Decision.No. 3194 of SBA 18 and Second Division
Award No. 1884 upheld in each instance discharge of an employee who solicited business for attorneys specializing
in F. E. L. A. cases.
A most interesting case is reported as Brotherhood
of Railway Clerks v. Atlantic Coast Line Railway Co.,
154 F. Supp. 71 (D.C., E.D.N.C., 1957), aff. 253 F 2d 753
(4th Cir., 1958). The discharged employee was a clerk who,
after hours and in the company of various outsiders, entered
the office building where he worked. The incursion was for
the purpose of taking photographs and developing evidence
in a suit pending against the employer. It was admitted
that the clerk violated no rule of the agreement. For the
latter reason the Third Division, in Award No. 6116,
ordered him reinstated. But the Federal Courts upheld the
carrier's refusal to comply with the Award, citing the
grievant's "gross disloyalty".
"No man can serve two masters." No man can loyally
`serve both Burlington Northern and the law firm which employed Claimant and for whom he worked on many days when he .
should have been protecting the service of his first employer.
Yet while our original award might appear to he based
PLB No. 1207
Award No. 8.
Page 8.
upon a finding of conflict of interest in dual employment
alone, nevertheless our denial award was actually based
upon an abundance of evidence which convicted Mr. Riddle
of violation of the cited rules. In Decision 3310 of 5BA
18 Judge Mabry apologized for the length of his (5 page)
opinion. The neutral now deems it appropriate to apologize
for the brevity of our original opinion. Let us summarize
the record before this Board.
The record reflects that over a period of 32 months,
January 1970 through August 1972, when the normal railroad
employee would be zealously seeking 22 starts a month at .
least, Mr. Riddle averaged slightly over 11. Much of the
time while he was refusing service of his primary employer
he was engaged in the disputed work. But his fringe benefits, paid by Carrier, were as though he were working full
time.
We find that Mr. Riddle '.s excessive absence from duty
reflected a disloyalty squarely within the purview of
Rule 700 and that such violation of such rule was of sufficient gravity to support discharge.
At all times while he was engaging in his dual employment Mr. Riddle earned more working for the law firm's
investigative service than he did working for Carrier. In
making his investigative work his principal employment Mr,.
Riddle displayed disloyalty to the extent that,such consti-
PLB No. 1207
Award No. 8
Page 9.
tuted violation of Rule 700. Such violation of the Consolidated Code of Operating Rules was of sufficient gravity to
support the penalty assessed by Carrier.
We further find from the record that Claimant violated Rule 700 in that he was not only disloyal but dishonest
in doing investigative work whiZe under pay and on duty in
Carrier's service. Such disloyalty and dishonesty justify
the discipline assessed by Carrier.
The_record reflects further that Claimant engaged in
barratry to the detriment of Carrier and in violation of
Rule 700 and engaged in dishonesty in violation of such rule
.in framing the statements of numerous of his "clients".
Rule 700 (A) requires an employee to make known to
Carrier all information relating to any irregularity, accident
or violation of rules.
. Claimant consistently violated such provisions in
withholding information and failing to give factual reports
of irregularity and claimed accidents. Such violation was
persistent and detrimental to his employer to such an extent
as to constitute gross disloyalty to Carrier within the
proscription of Rule 700. Such transgressions alone would
support discharge.
Additionally, the record is indisputed that Earl J.
Riddle violated Rule 702 (C) in failing to apply for and
receive written permission for pursuing another business or
PLB No, 1207
Award No, 8. .
Page 10.
occupation. We find that Rule 702 (C) (as well as Rule 700
and Rule 700 (A)) is a reasonable rule·'which must be en
forced and that because of his flagrant violation of such
rule Claimant was deserving of the discipline assessed.
We deem it appropriate to comment on Mr. Riddle's
lawyers' arguments before the Federal Courts to the effect,
that Carrier's discipline of Riddle, and this Board's sustention of such discharge, constitute an unfair circumscription
of the right of Claimant, a vice local chairman, to aid his
brothers. The facts in the record wholly fail to support
such position. In pursuing the activity which resulted in .
his discharge Mr. Riddle was not ministering to his union
charges. Instead, he was ranging far away from hi's local,
soliciting business from strangers on behalf of his lawyer
employers, at the same time neglecting his duty to Carrier.
Such argument by counsel constituted a demagogic cheap shot
at the General Chairman who ably and diligently presented
Mr. Riddle's grievance to this Board.
/ Just cause existed for Mr. Riddle's discharge. His
violation of the three rules was clearly shown.
AWARD: Claim denied.
AI . BR WN, airman an
Neutral Member
~' ,/j.
~ ~ fir
T. C. DeBUTTS, Carrier Mem er
.., y. McCOY, rganization Afem er
April 1, 1977