PUBLIC LAW BOARD NO. 4402
PARTIES
) BROTHERHOOD
OF MAINTENANCE OF WAY EMPLOYES
TO )
DISPUTE ) BURLINGTON
NORTHERN RAILROAD COMPANY
STATEhIENT OF CLAIM
1. The Carrier violated the Agreement when it assigned outside forces
to construct and repair right-of-way fence between Glendo and
Guernsey, Wyoming beginning May 15, 1986 (System File #10
Gr./DMWA 86-10-28).
2. The Carrier violated the Agreement when it assigned outside forces
to construct a right-of-way fence between Fort Laramie and
Guernsey, Wyoming beginning June 23, 1986 (System File #10
Gr./DMWA 86-10-27A).
3. The Carrier violated the Agreement when it assigned outside forces
to construct a right-of-way fence between Bayard and Bridgeport,
Nebraska beginning June 23, 1986 (System File #10 Gr./DMWA
86-10-27B).
4. The Carrier violated the Agreement when it assigned outside forces
to build and repair right-of-way fence from Mile Post 737 to Mile
Post 745, within the Parkman, Wyoming section territory,
beginning July 31, 1986 through September 29, 1986 (System File
#17 Gr./DMWA 87-1-14C).
5. The Agreement was further violated when the Carrier failed to give
the General Chairman timely and proper advance written notice of its
plans to contract out any of the afore-described work, as stipulated
in the Note to Rule 55.
6. As a consequence of Parts (1) and (5) hereof, Section Foreman R
E. Silsby and Laborer M. L. Jensen shall each be allowed eight (8)
hours' pay at their respective straight time rates for each work day
the outside forces performed the work described in Part (1) above,
beginning May 15, 1986 and continuing.
7. As a consequence of Parts (2) and (5) hereof, Section Foreman A.
R Marez and Sectionmen M. D. Misner and H. E. Schillereff shall
each be allowed pay at their respective rates for all straight time and
overtime work performed by the outside forces in connection with
the work described in Part (2) above, beginning June 23, 1986 and
continuing.
8. As a consequence of Part-, (3) and (5) hereof, Foreman D. E. Didler
PLB
4402,
Award
21
Contracting of Fence Construction and Repair
Page 2
and Sectionmen D. J. Neely and J. G. Sanchz shall each be allowed
pay at their respective rates for all straight time and overtime work
performed by the outside forces in connection with the work
described in Part (3) above, beginning June 23,
1986
and
continuing.
9.
As a consequence of Parts (4) and (5) hereof, Section Foreman J.
G. McCasland, Truck Driver R. S. Castro and Sectionmen R. E.
Kobielusz and W. L. Leatherwood shall each be allowed eight
(8)
hours' pay at their respective straight time rates for each work day
the outside forces performed the work described in Part (4) above,
beginning July 31,
1986
through September
29, 1986.
OPINION
OF BOARD
Four separate claims arising from the Carrier's use of outside forces to perform
fence construction and/or repair have been consolidated in this dispute. All of the named
Claimants hold seniority in the Carrier's Track Sub-Department of the Maintenance of Way
Department.
The undisputed facts relevant to the individual claims are summarized by the
following table as alleged by the Organization and discussed by the Carrier:
Date Fencing Location of Work Work Performed By Notice Given
Work To
Commenced O anization
05/15/86 Between Glendo and Two individuals No
Guernsey,
W omin
06/23/86 Between Fort Laramie P & D Service (3 No
and Guernsey, W min employees)
06/23/86 Between Bayard and Panhandle Fence No
Bri Nebraska Company 3
employees)
07/31/86 Between MP 737 and Carrico Fencing Yes, but was
745 within the Parkman (minimum of 4 received by the
section territory employees) Organization on
08/01/86
The Organization supplied numerous statements from employees to the effect that
over the years in the course of their duties, the Carrier's employees have performed fence
construction and/or repair.1 From the Carrier's perspective, its Submission at 3 sutras up
t Portions of those statements provide: "While laboror [sic] and foreman during my 15 yr. plus on
the railroad, I have build [sic] or helped repair fence at these locations ... Without exception section forces
and fencing gangs have always mended right of way fences, rejuvenated old fencing, and removed and
completely built new sections of fence... On every section crew that I have been on it has always been our
responsibility to inspect and maintain right of way fence, as well as to build new fence where needed... On
every section or gang I've been on or around it has always been the responsibility of the section crew,
PLB 4402, Award 21
' Contracting of Fence Construction and Repair
Page 3
the relevant facts:
In this case there is no dispute as to the facts: Contracts were
entered into between the Carrier and property owners, lessees of
railroad property or fence contractors to either build or repair rightof-way fences, or in some instances provide fencing materials to
property owners or lessees to build or repair fencing on Railroad or
privately owned or leased premises. The history on this property
has shown that Maintenance of Way Employes have shared this
work when called upon with outside contractors and others.
In Award 20 of this Board, we set forth in detail the underlying rules for how we
view the implications of the Note to Rule 55 and the Letter Of Agreement dated December
11, 1981 (Appendix Y). As that award relates to the issues in this dispute, we held that the
Organization need not demonstrate that the work performed
by
outside forces had
previously been "exclusively" performed by the covered employees, but the Organization
must show that work was "within the scope"
of
the Agreement and "customarily
performed"
by
the employees.
Applying that rationale to this case, we find the fact that the employees may not
have exclusively performed fence construction and/or repair in the past does not defeat the
claims. Under the Note to Rule 55, these employees "perform work in connection with the
construction and maintenance or repairs of... structures or facilities located on the right of
way
..."
and fence construction and/or repair clearly
falls
within that phrase? The extent
bullentined [sic] fence crew or a maintenance crew to build, repair and maintain the right of way fence
...
Mhe responsibility of repairing fence and building new fence along the railroad right-of-way, was that of
the section crew
...
When I have fence to be repaired, it is and always has been the section force's, in that
area, responsibility to repair the fence along the right-of-way . ... During the past ten years, the
responsibility of maintaining and building right-of-way fences for the railroad has been the sections or
maintenance gangs
....
I have been with the B.N. since April 9, 1976 and have done fences on the following
sections
...
[I] t has always been my experience to build or repair any right of way fences on the sections I
have worked on . ... On all of these sections I have built or repaired right of way fences . ... I went to work
May 5, 1955. Every section I worked on, we repaired, maintained or built new fence which ever was needed
as part of work performed."
The Carrier does not dispute that covered employees have performed this work.
See e.g.,
the
Carrier's letter of August 31, 1987 (Carrier's Exh. 7 - "It is not denied that Maintenance of Way employees
have also constructed and repaired some fences
...."). See also,
Carrier Submission at 8 [emphasis in
original] ("The statements which are general in nature merely attest to the fact that the individual writing
the statement performed construction, maintenance and repair of right-of-way fences at
some
time, at
some
location on the Railroad. Carrier does not deny this fact.").
See also,
Rule 5, Track Sub-Department, Roster 1, Rank C governing "Fence and Tile".
PLB 4402, Award 21
Contracting of Fence Construction and Repair
Page 4
and duration of the prior performance of such work by the covered employees as evidenced
by the letters submitted with the claims, while not demonstrating that the employees
"exclusively" performed such work, are sufficient to establish that the covered employees
"customarily performed" this work.
Therefore, under the terms of the Note to Rule 55, the Carrier was obligated to give
at least 15 days prior notice to the Organization of its intent to contract out the fencing work
to outside forces. By failing to given any notice in three of the cases and by giving notice
less than "fifteen (15) days prior theretd' in the fourth case, the Carrier violated the Note to
Rule 55. Because of the reaffirmation of the notice requirements contained in the Note to
Rule 55 as found in Appendix Y, that provision has also been violated.
With respect to the reasons for contracting out the work at issue, the Note to Rule
55 is specific. The Carrier can contract out work customarily performed by covered
employees "provided that special skills not possessed by the Company's employes, special
equipment not owned by the Company, or special material available only when applied or
installed through supplier, are required; or when work is such that the Company is not
adequately equipped to handle the work, or when emergency time requirements exist which
present undertakings not contemplated by the Agreement and beyond the capacity of the
Company's forces." No evidence in this record demonstrates that the reasons for
contracting out the fence construction and/or repair work fell within those stated
exceptions. Therefore, we also conclude that by contracting out the fence construction
andlor repair work, the Carrier violated the Agreement
The Carrier's arguments do not change the result. First, Third Division Award
10937 did not address the language found in the Note to Rule 55 concerning the
applicability of the contracting out limitations to work "customarily performed" rather than
"exclusively performed" and that award issued in 1962 - long before the language
PLB 4402, Award 21
Contracting of Fence Construction and Repair
Page 5
determinative of this dispute was negotiated by the parties.3 Therefore, the doctrine of res
judicata urged by the Carrier cannot apply when subsequent to the issuance of Award
10937 the parties negotiated language that ran contrary to the exclusivity principle relied
upon in that award that the Carrier asserts is determinative of this dispute.
Second, the result of PLB 2206, Award 8 is not persuasive. That award is
consistent with the Carrier's position that exclusivity must be demonstrated in these types
of cases. In Award 20 of this Board we stated that we were aware of the split in authority
on the question of whether the doctrine of exclusivity applies to contracting disputes under
the Note to Rule 55. We stated at footnote 2:
We recognize that-there is a split in authority on this question and
that awards exist requiring a demonstration of exclusivity.
However, we believe that the basic principle of contract construction
discussed above concerning manifestation of intent through the clear
language of "customarily" rather than "exclusively" along with the
rationale of those awards that do not adopt the exclusivity
requirement are the better reasoned approaches to this question.
The rationale of PLB 2206, Award 8 and those awards of a similar result effectively
reads the language "customarily performed" out of Note to Rule 55 and replaces that
language with "exclusively performed". It is not our function to change the language of the
parties' carefully negotiated Agreement. Therefore, we cannot agree to apply the rationale
of PLB 2206, Award 8 to this case.4
In reaching this conclusion, this Board, and particularly this neutral member, is
most cognizant of the effect that differing awards can have on parties to a collective
bargaining relationship. Simply stated, opposite results from different referees can lead to
chaos because the parties are without guidance as to how to order their actions under their
agreements. Often, although a
referee might have reached a different conclusion on an
See
Cagier Submission at 10 ("...Rule 55, and Appendix Y (said rules cited in support of
Organization's position) ... were entered into with both parties in execution of the present Schedule
Agreement dated June 16, 1982 ...:').
4
Third Division Award 24853, involving a different carrier, is not persuasive for the same reasons.
PLB 4402, Award 21
Contracting of Fence Construction and Repair
Page 6
issue had that referee had the opportunity to address the question in the first instance, in
order to promote stability in the relationship and preserve the finality of prior awards, the
correct decision is to defer to a previously decided case which goes contrary to the referee's
own thinking on the subject. That deferral is appropriate - indeed, required - because the
prior decision is the prevailing precedent on the property and that deferral must be made so
long as that prior decision is not clearly erroneous. But, that line of thought is not
applicable on this issue between these parties. The split in authority on the Organization's
need to demonstrate exclusivity exists between these parties. Compare PLB 2206, Award
8, supra, holding that exclusivity must be shown with the awards discussed in this Board's
Award 20 at 4-6 [footnote'omitted]:
Third, we disagree with the Carrier that in order to
demonstrate a violation of the contracting provisions in the Note to
Rule 55 and the December 11, 1981 letter that the Organization must
show that work that has been contracted out has been previously
performed exclusively by the covered employees. The negotiated
language governs work "which is customarily performed by the
employees" - not work that is "exclusively" performed [emphasis
added]. The analysis on this question is similar to the resolution of
the Organization's arguments concerning the notification
requirements. Had these sophisticated negotiators intended that
these disputes were to be governed by the exclusivity doctrine, they
could have easily said so.
See e.g.,
Third Division Award 20633
between the parties (quoting Third Division Award 20338) "`...
Additionally, we observe that the Note to Rule 55 specifically
alludes to work which is customarily performed by the employes
rather than the frequently argued doctrine involving work
exclusively
performed."' [emphasis in original]); PLB 4370 Award
21, quoting Third Division Award 24280 ("... [T]he Organization
need not meet the burden of exclusivity of work assignment ....").
Of particular interest is PLB 4768, Award 1 and awards cited
therein, which, although discussed in a notice context, makes the
correct analysis [emphasis in original]:
...[Tjhe Board takes guidance from Awards which
distinguish "customarily performed" from "exclusively".
Citation of only a few of these will suffice.
Third Division Award No. 26174 (Gold) states:
... While there may be a valid disagreement
as to whether the work at issue was exclusively
reserved to those employes, there can be no dispute
PLB 4402, Award 21
Contracting of Fence Construction and Repair
Page 7
that it was customarily performed by Claimants.
Third Division Award No. 27012 (Marx) states as
follows:
The Board finds that the Carrier's insistence
on an exclusivity test is not will founded. Such may
be the critical point in other disputes, such as
determining which class or craft of the Carrier's
employees may be entitled to perform certain work.
Here, however, a different test is applied. The
Carrier is obliged to make notification where work to
be contracted out is "within the scope" of the
Organization's Agreement. There is no serious
contention that brush cutting work is not properly
performed by Maintenance of Way employes, even if
not at all locations or to the exclusion of other
employees . ...
Therefore, we find that the Organization need not
demonstrate exclusivity to prevail under the Note to Rule 55 and the
December 11, 1981 letter. The exclusivity principle is for analysis
of disputes determining which class or craft of the Carrier's
employees are entitled to perform work and is not relevant to
contracting out disputes. The Organization must, however,
demonstrate that the employees have "customarily performed" the
work at issue.
Therefore, given that between these parties there is a decisive split of authority on
the question of whether or not the Organization must demonstrate exclusivity in these
contracting out cases, this Board is not required to defer to prior awards which hold on
either side of the question, but we must decide which line of authority is the better
reasoned. For reasons set forth in this award and in Award 20 of this Board, we agree
with the Organization that those awards finding that exclusivity need not be demonstrated
are the awards that appropriately analyze the questions on this issue.
Third, the fact that the Carrier may have entered into lease arrangements with
individuals that require those individuals to keep fences in good repair (e.g., Carrier Exh.
7(a), p. 1 - "Lessee agrees to keep in good condition and repair any and all necessary and
lawful fences which may be required around said demised premises ...: '), or that contracts
have been made having strangers to the Agreement perform that function also cannot
PLB 4402, Award 21
Contra-Icing of Fence Construction and Repair
Page 8
change the result. The Organization was not party to those arrangements or contracts and
the only relevant concern before us is the parties' negotiated language which obligates the
Carrier to limit contracting in accord with the terms of the Note to Rule 55 and Appendix Y.
The question now becomes how to remedy the proven violations of the Agreement?
Several factors stand out to dictate that no affirmative monetary relief can be awarded in this
case. Initially, from what we can discern, this is the first series of claims by the
Organization concerning the Carrier's use of outside forces to perform fence construction
and/or repair under the language in the Note to Rule 55 and Appendix Y. While we have
found that the Carrier's main exclusivity argument is not compatible with the language in
the Note to Rule 55 and Appendix Y, we note that the Carrier has established that the
actions complained of by the Organization in these claims have gone on for some time,
even after the applicable language at issue became effective, without objection by the
Organizations While the Organization's inaction in this regard does not change the clear
language of the Agreement or the Carrier's obligations under that language, we believe that
the Organization's prior lack of protest can be considered in determining the appropriate
remedy for demonstrated violations of the Agreement in this case. Further, the Carrier has
operated under the rationale of previously decided awards requiring a showing of
exclusivity. See PLB 2206, Award 8, supra. Weighing those factors in this case against
the demonstrated violations of the Agreement, we therefore decline to impose affirmative
monetary relief in this particular case.6
See Carrier's Exh. 7 (Carrier's August 31, 1987 letter) which states "Further, in this regard,
attached are copies of several lease contracts, statements, and invoices wherein the Carrier has contracted this
work over the years with no objection from your Organization until the instant claims were filed." See,
also, Carrier's Exh. 7(f):
We then made a practical deal in where we supplied the fence materials and paid a
fair labor price to have the fence repaired
This type of negotiated practice is well established with land owners or their
leasors [sic] adjacent to our right of way. They are more satisfied doing i« his
way and it is less expensive.
In light of the above, it is therefore unnecessary to address in tiffs case the impact of the fact that
Claimants were employed during tire time the outside forces performed the disputed work.
PLB 4402, Award 21
Contracting of Fence Construction and Repair
Page 9
AWARD
Claim sustained as set forth in the Opinion. No affirmative monetary relief shall be
required.
win H. Berm
Neutral Member
. Kallinen . . Swanson '
Carrier Member ~~Organization Member
Denver, Colorado
March 11, 1991
DISSENT TO AWARD 21 OF PUBLIC LAW BOARD NO. 4402
This Award vividly illustrates the unfortunate consequences which flow from the
analytical errors pointed out in our Concurrence to Award 20 of this Board.
First of all, the term "railroad right-of-way fence" to describe the work involved in this
dispute, is a misnomer, because such fences are not intended in any way to fence in the
right-of-way or to protect railroad property from trespass. Obviously, such fences could
not perform that function, because they are not continuous. In fact, none of these
fences would be built at all if it were not for state Iitws which, while not identical,
generally require that the railroad bear the burden of providing a fence along the
property line, if the adjoining landowner fences the other three sides of his property.
Even the type of fencing is governed by the type of fence erected by the adjoining
landowner, as for example, under the Iowa statute a "hog-tight" fence must be provided
if the adjoining landowner erects such a fence on three sides of his property. Therefore,
these fences are for the sole purpose of fencing in the crops and livestock of the
adjoining landowner, and erection and repair of the fences fall outside of the work
covered by the NOTE to Rule 55, which is confined to ". . tracks, structures or facilities
located on the right of way and used in the operation of the Company in the performance
of common carrier service . ." Unfortunately, this aspect of the case was not fully
developed in the Carrier's presentation to the Board, and we bring it up here primarily to
call to the attention of persons dealing with future claims, that this award does not deal
with the fundamental "scope" issue involved in right-of-way fence work.
With respect to those issues which were fully presented to the Board, there does not
appear to be any dispute as to the facts. As the Award describes, the BMWE presented
certain employee statements to the effect that they had built or repaired some right-ofway fences, sometimes, and those facts were admitted by the Carrier. However, none of
the BMWE's evidence established that BMWE-represented employees had performed any
significant proportion of the right-of-way fence work, not to mention exclusively. In
fact, the record included conclusive evidence to the contrary, in the form of Third
Division NRAB Award 10937, a decision issued in 1962 involving the same geographic
area as the claims in the instant case, which trackage was then located on the former
Chicago, Burlington & Quincy Railroad. The Third Division made the following
1 `
~fua~.-a r
observation in holding that maintenance of way employees had no claim to right-of-way
fence work:
"That during that entire period (from 1922 through 1957), Carrier has contracted out
the major portion of construction of right-of-way fence and during that period no
claims have been progressed against the Carrier by Employees of the Maintenance of
Way Department."
Can there be better evidence of what has, and has not been "customarily performed"
than the Organization's failure, over decades, to object to the contracting out of "the
major portion of construction of right-of-way fence?" Nevertheless, Award 21 of this
Board rejects both the evidence of past practice and the holding of Third Division Award
10937, on the incorrect assumption that the existing language of the NOTE to Rule 55
has eliminated the exclusivity principle. However, the Board also ignored the
implications of even its own statement on page 8, that recognizes such practices as
having continued after the alleged change in agreement language:
".
. we note that the Carrier has established that the actions complained of by the
Organization in these claims have gone on for some time, even after the applicable
language at issue became effective without objection by the Organization."
Should not the Organization's !'prior lack of protest" have been a warning that "the clear
language of the Agreement" was not quite so uncomplicated and unambiguous?. The
Board's treatment of the parties' respective evidentiary showings is troubling because a
minimal production of practice evidence was considered sufficient to establish that the
covered employees "customarily performed" this work. More damaging, however, is theproposition that, because BMWE-represented forces had "customarily performed" some
small part of this work, they thereby have by some unexplained process acquired rights
to
"customarily perform" all of it, and that, as a consequence, none of it could, now or
hereafter, be contracted unless notice is served and one of the criteria for contracting is
demonstrated. This turns the parties' own practices, which should be the best evidence
of what has indeed been "customarily performed," on their head.
The Board seems to be of the impression that the parties' 1982 Agreement had
added some new language on the matter of contracting. This is wrong. Instead, the
Organization has, over the years, elected to retain the 1952 NP agreement, without any
- L/L'a;l
al
changes of consequence, throughout the rest of the Fifties and Sixties;. and then in
preference to Article IV of the May 17, 1968-National Agreement; and then in the -
Agreement effective May 1, 1971 (which came after the merger that created BN,
including both the NP and the CB&Q); and then in the most recent Agreement, reached
in 1982, which came after the 1968 National Agreement and the 1981 Hopkins-Berge
letter and the Awards of PL Board No. 2206, among others. Thus, by repudiating Awards
which have been the governing authority as to the meaning of this unchanged contractual
language for upwards of a dozen years, this Board is electing to "remedy" a situation that
the parties themselves chose not to remedy when the 1982 Agreement was reached.
Where there is a genuine split of authority in the Awards, each arbitrator is
necessarily left to determine which line of authority is, in his or her own view, the better
reasoned. But here, the split seems a recent discovery, deriving solely from Award 1 of
PL 4768, and Award 20 of this Board, while ignoring a uniform, unbroken pattern of
earlier Awards from a variety of well-regarded neutrals. There had-been no split
whatsoever for well over a decade before the issuance of these most recent Awards Of
the Awards cited in the quotation of pages 6-7 of this Award, 3-24280, 3-26174 and 327012 are all from foreign carriers with different contracting agreements; Award 21 of
PL 4370 is from another segment of BN that is a party to its own, distinct BMWE
agreement and not the 1982 Agreement or the 1952 NP agreement; and 3-20633 and 320338 have been addressed at page 4 of our Concurrence to Award 20. This is a thin
foundation upon which to divine a supposed split of authority on this carrier, under this
Agreement.
While perhaps minor, there other troubling matters in Award 21. The Board's description
of the lease arrangements overlooks the significant and pertinent principle that BNBMWE agreements do not extend to others--they cannot control actions on land over
which we have no ownership or control. Also, the Board finds significant the listing of
"fence and tile" in the seniority roster rule. That listing is a holdover from Supplement
No. 8 to General Order 27 of the Director General of Railroads issued on September 1,
1918, during World War I, and such listings have been recognized as meaningless in
innumerable awards.
We must respectfully dissent.
Eino J. Kallinen, Carrier Member
3