PUBLIC LAW BOARD NO. 6776
INTERNATIONAL LONGSHOREMEN'S )
ASSOCIATION LOCAL NO. 2052 )
AWARD NO.1
and ) CASE NO. i
THE PITTSBURGH & CONNEAUT )
DOCK CO. )
STATEMENT OF CLAIM:
The Organization requests that the Carrier assign the appropriate number
of employees back to the minimum standard seniority pool and pay each employee
improperly placed in the shop a day's pay at the applicable operating rate in
addition to all other earnings the grievants may have received for the period of the
Agreement violation.
FINDINGS:
Public Law Board No. 6776, upon the whole record and all the evidence,
finds that the parties herein are Carrier and Employes within the meaning of the
Railway Labor Act, as amended; that the Board has jurisdiction over the dispute
herein; and that the parties to the dispute were given due notice of the hearing and
did participate therein.
This is the first in a series of three interrelated claims pertaining to the
furloughs, force assignments and recalls of several employees.
The Carrier operates a dock facility on Lake Erie at Conneaut, Ohio.
Primary commodities such as iron ore, coal and stone are transferred between lake
vessels and rail cars. The work at the dock is performed by two groups of
employees. Production employees who work in the Machine Division operate the
machines used to load and unload vessels and rail cars. Maintenance employees
who work in the Shop Division maintain and repair the equipment used to run the
dock.
The parties agree that the seniority lists for the two divisions are separate
and distinct. While all employees have a seniority date on the Master roster which
representstheir date of hire, the seniority date which primarily governs their rights
to bid on assignments, and by which they are furloughed and recalled, are those
dates they have acquired on the Department Rosters. Under the parties'
Agreement, Machine Division employees cannot work in the Shop Division, nor can
Shop Division employees bid to a Machine Division position, without forfeiting their
Division seniority.
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Much of the activity at the dock fluctuates with the season. In the winter
months, the need for production employees subsides and Machine Division
employees are furloughed as the work activity decreases. At the same time,
maintenance work in the Shop Division increases as the machinery is idled. Often
times there have been insufficient numbers of maintenance employees available, and
additional workers were needed, but production employees had no way to transfer
to the Shop Division without forfeiting their Machine Division seniority.
The Carrier and the Organization addressed this issue in a January 7, 1972
Memorandum of Understanding (MOU )set forth in Section XXV of the Agreement.
It stated in pertinent part:
The present Labor Agreement, effective October 27,1971, does not permit
employees to hold seniority on skill occupation rosters outside their
respective division, department, or shop; therefore, an operating employee
bidding into a shop forfeits his rights in the Machine Division Roster.
This restriction presents a problem in that the Company has need, as in past
years to add skilled help to the shop force during the winter repair season
but cannot utilize available operating employees. To permit skilled operating
employees to bid into the shops during the winter repair season, the
Company and Union agree to establish a Memorandum of Understanding
that operating employees, who are qualified, may bid into shop jobs on a
temporary basis without losing Machine Division rights nor establish shop
roster rights.
Whenever it is necessary to post a notice for temporary winter repair help in
the shops, the notice will so state that it is a temporary job and not subject to
the conditions of a regular job occupation.
On February 1, 2001, the Carrier posted a notice for bids for ten temporary
shop jobs. No bids were received for these positions.
On February 9, 2001, the Carrier posted a layoff and transfer bulletin,
stating that ten Machine Division employees would be transferred to the Shop
Division effective February 11, 2001. These employees worked the temporary
assignments until March 12 when five were recalled to the Machine Division. The
remaining five employees were recalled to the Machine Division at the end of
March.
The instant claim seeks a day's pay for each day the Claimants were assigned
to the temporary assignments in the Shop Division. It is the Organization's position
that the Carrier violated the Agreement by force assigning the Claimants to
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positions that they had no obligation to protect. Because they had no Shop Division
seniority, the Organization argues, they were under no contractual obligation to
protect Shop Division jobs.
During the on property handling of the case, the Carrier contended that it
properly filled the jobs that were not bid by eligible employees in accordance with
Section IV of the Agreement, the Management Rights provision. That provision
gives the Carrier discretion to manage the direction of the working force, the
Carrier argued, and thus the assignment of furloughed employees to the unfilled
shop jobs was within the right and responsibility of management.
Before addressing the merits of the parties' respective arguments, the Board
first considers two matters raised by the Carrier in its submission and before the
Board. First, the Carrier contended that the Organization breached the time limits
set forth in Section VII of the Agreement by failing to timely file its Step 4 appeal to
arbitration. On that basis, Carrier argues that the claim should be dismissed.
Normally, procedural arguments are waived if they are not asserted on the
property. In this instance, however, the parties had exhausted all steps of the claims
appeal process. The Carrier's first opportunity to raise its timeliness objection was
before the Board. Nevertheless, as the evidence developed, it became clear that the
objection was without merit. An October 22, 2001 letter from the Carrier expressly
granted the Organization's request for an extension on the time limit until
November 6, 2001. Since the Organization's November 4, 2001 appeal statement
was within the agreed upon extended time line, the Carrier's argument is
unfounded.
The second argument raised by the Carrier in its submission does not
withstand a waiver challenge. Carrier argued for the first time before the Board
that, when there were no bidders from the Machine Division for the temporary
positions, the next step was to go to the Minimum Standard Seniority Pool in
accordance with Section XIV 9 (c ) of the Agreement. We may not consider
argument de nova. Our function is essentially that of an appellate body. The scope
of our review is limited to the arguments and evidence that have been developed
during the handling of the claim on the property. Significantly, the parties have
incorporated this fundamental principle in the public law board agreement
establishing this Board. Our adherence to that basic tenet requires that the
Carrier's argument be rejected.
Turning to the merits, we find after careful review that the Carrier's reliance
upon its management rights provision is misplaced. Carrier's rights are not
unfettered but are limited by the specific provisions of the Agreement. For purposes
of this case, that means that the general management rights provision must give way
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to the specific provisions of the January 7,1972 MOU. Therein, the parties have
agreed that "operating employees, who are qualified, ma bid into shop jobs on a
temporary basis..." The MOU further states that such temporary jobs are "not
subject to the conditions of a regular job occupation."
Machine Division employees have no contractual obligation to protect the
work at issue. They have no seniority in the Shop Division. The use of the word
"may" in the MOU indicates that bidding to Shop jobs is voluntary and not
mandatory. We are of the view that the Carrier cannot agree to a voluntary
acceptance by Machine Division employees of Shop jobs on the one hand, and then
force assign them on the other. This is particularly true in light of the language
contained in the MOU which recognizes that operating employees who elect to bid
into shop jobs are not subject to the conditions that would apply if they were
regularly occupying the positions. Based on these factors, we find that the
Agreement was violated when the Machine Division employees were force assigned
to the shop jobs.
The remaining question concerns the remedy. The instant claim asks that the
Board order an appropriate number of employees back to the Minimum Standard
Seniority Pool. This portion of the requested remedy is beyond the Board's
jurisdiction. To that extent, the claim is denied.
The Organization also requests that the Board redress the improper force
assignment by awarding a day's pay to each of the employees who were force
assigned to the Shop jobs. The Organization contends that the claim for a day's pay
in addition to earnings is essential if the Agreement is to retain its meaning. This is
particularly true in view of the element of intent present. The Organization submits
that the Carrier decided to take an expedient approach when its job posting was not
enthusiastically received. If no monetary remedy is awarded, the Carrier would
have license to continue to violate the Agreement at will.
In support thereof, the Organization cites a long line of arbitral authority
under the Railway Labor Act which holds that the appropriate remedy where an
employee wronged may not have suffered an earnings loss is to award a day's pay
until the violation is ended. See, e.g., Third Division Award Nos. 26593; 29068; First
Division Award Nos. 17600; 20122; 23996; 24280; 24481.
Carrier contends that the Organization's remedy request is excessive,
punitive and impermissible because the employees suffered no economic loss as a
result of the Carrier's action. On the contrary, they earned more by virtue of the
force assignment than they otherwise would have had they remained furloughed.
Moreover, the Carrier argues that there is no practice on the property to award
penalty payments. See, Public Law Board No. 6020, Award No. 2.
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In considering the foregoing arguments, we note that the Carrier is correct
when it states that the traditional justification for compensatory damages is to put
the affected employee in the position he would have been in had the Carrier not
breached the agreement. This principle, cited in Public Law Board No. 6020,
Award No. 2 involving these same parties, is based on the notion that the employee
should be made whole for losses suffered.
But this analysis has its own problems in a case such as this, where the
Agreement has been violated, apparently with impunity, but no loss of earnings can
be shown. Although the employees may not have suffered direct harm, the
Organization has - a provision negotiated by it and for which concessions in other
areas may have been made was ignored. Even a well-intentioned carrier has no
incentive to work harder to prevent misassignment of work under these
circumstances, and a carrier seeking to avoid in practice what it cannot eliminate in
bargaining is undeterred from efforts to shirk its bargain.
In addition, where work is wrongfully assigned, a monetary award is
justified on the theory that even though the Organization cannot show a loss of
earnings, such a loss may well have occurred. The Carrier, if required to assign the
work within the proper classification, might have had the work done on an overtime
basis. Work opportunities have been lost. Alternatively, the Carrier's action in
misassigning the work might mean at some indefinite date in the future, an
employee in the shop will be laid off sooner than he would otherwise have been. It is
extraordinarily difficult for the Organization to prove either of these scenarios. Yet
the difficulty of proof does not wholly negate the possibility that there either was or
will be a loss of work for the Organization employees. That is why there is
longstanding authority for the award of a day's pay in circumstances such as these.
The assessment of a day's pay for each day there was a breach of the specific
Agreement provision herein shall be sustained.
AWARD
Claim sustained in accordance with Findings.
ANN S. KENIS
Neutral Member
Carrier Member Organization Member
Douglas Mandalas Richard K. Radek
Dated this day of January, 2005.