Award No. 7
Case No. 7
PUBLIC LAW BOARD NO. 7098
(BROTHERHOOD OF MAINTENANCE OF WAY
PARTIES TO DISPUTE: (EMPLOYES DIVISION
(
(UNION PACIFIC RAILROAD COMPANY
STATEMENT OF CLAIM:
"Claim of the System Committee of the Brotherhood that:
(1) 'The Agreement was violated when the Carrier assigned outside forces
(Wyoming Efficiency Contractors) to perform Maintenance of Way and
Structures Department work (construct concrete pads, remove and dispose
of existing pads, raise height of existing containment wall) at Eagle Grove,
Iowa beginning on October 28, 2004 and continuing through November
18, 2004, instead of Seniority District B-2 employes D. Murphy,
E.Lindloff, P. Asleson and D. Austin (System File 2RM-9624B/1414636
CNW).
(2) The Agreement was further violated when the Carrier failed to furnish the
General Chairman with proper written notice of its intent to contract out
the above-referenced work or make a good-faith attempt to reach an
understanding concerning such contracting as required by Rule I and the
December 11, 1981 Letter of Understanding.
(3) As a consequence of the violations referred to in Parts (1) and/or (2)
above, Claimants D. Murphy, E. Lindloff, P. Asleson and D. Austin shall
now `*** each be compensated for an appropriate share of 480 hours of
straight time that the contractor's forces spent performing Maintenance of
Way work, at the applicable rates of pay."
FINDINGS:
Public Law Board No. 7098, upon the whole record and all the evidence, finds that:
The carrier or carriers and the employee or employees involved in this dispute are
respectively carrier and employee within the meaning of the Railway Labor Act, as approved
June 21, 1934.
The Board has jurisdiction over the dispute involved herein.
Parties to said dispute were given due notice of hearing thereon.
On October 4, 2004, by Service Order No. 30109, the Carrier sent notice by email to
General Chairman Kent L. Bushman of its intent to contract out the following work at or near the
PLB No. 7098
Page 2 Award No. 7
Case No. 7
Carrier's yard located at 620 10t' Street, Eagle Grove, Iowa:
Specific Work: providing labor materials, supplies and equipment necessary to
construct two (2) concrete truck transload pads approx 17' x 44' (sheet#-1.2), install
drains and associated plumbing in the center of the pads; construct one (1) concrete tank
pad approx 9' x 34' (sheet# -1.4); remove and dispose of existing concrete pad and move
existing 5,000 gallon tank onto the new concrete pad; raise the height by 1-1/2' for
existing concrete containment wall measuring approx 27' wide x 54' long (sheet#-2.1);
install security fencing (sheet#-1.3); modify/replace stairs to allow entry into concrete
containment wall that was raised 1-1/2' (sheet#-1.3)
General Chairman Bushman replied by letter on the same date requesting an immediate
conference regarding the notice "in an effort to reach an understanding in accordance with Rule 1
Scope, Section (b), Paragraph 3. It is imperative," the letter continued, "the Brotherhood be able
to present its position BEFORE the Carrier commits itself to using outside contractors." The
letter quoted from Rule I B regarding the circumstances under which work included within the
scope of the Agreement may be contracted out and asserted, "The October 4, 2004 Notice has
failed to identify any circumstances or positions which legitimately falls within these five
enumerated exceptions."
A conference between the parties in connection with the contracting out notice was held
on October 19, 2004. Following the conference the Organization by letter dated October 22,
2004, to the Carrier's representative at the conference reiterated the Organization's position
regarding the work:
The Brotherhood did indicate that this is basic concrete work covered under Scope Rule
and Rule 39(c) of the CBA. Carrier has failed to cite any exceptions that would
necessitate contracting out of this work. Carrier possesses backhoes, graders, dozers,
loaders and trucks as well as experienced forces fully capable of performing this work.
Contrary to your expressed opinion, Carrier forces have performed work on projects of
this magnitude previously and are fully capable of performing this project.
Carrier has indicated that a contractor has already submitted the low bid and has been
selected to perform this work. This clearly demonstrates Carrier failure to discuss in
good faith.
No agreement was reached during this conference.
PLB No. 7098
Page 3 Award No. 7
Case No. 7
Between October 28, and November 18, 2004, a contractor, Wyoming Efficiency
Contractors, performed the work described in the Carrier's October 4, 2004, notice of intent to
contract. The Carrier contends that the Claimants did not have the skills to perform the work
because they do not perform, and have never performed, plumbing work, and specifically not of
the kind performed by the contractor in this case. In addition, the Carrier argues, the work had to
be completed before the onset of winter. Eagle Grove, Iowa, the Carrier notes, is located in
north-central Iowa near the Minnesota border, and beginning in November, through March,
experiences large amounts of snow and very cold temperatures with gusty winds. Time was
therefore of the essence, the Carrier asserts. Further, the Carrier contends, the Claimants have
never performed work of the magnitude of the project here involved, and it was not required to
portion out the work on a piecemeal basis. The Carrier also asserts in its submission, "The Board
will note that the Organization has failed to present any probative evidence during the onproperty handling in support of their contentions that the work was historically, customarily and
exclusively performed by the claimants, that the Carrier owned such equipment, that the
claimants were qualifed to do the alleged work, that claimants could have performed the work in
a timely manner or that the claimants had lost any compensation during the time-frame alleged."
The Organization contends that the disputed work is reserved to BMWE forces by the
clear language of the Scope Rule (Rule 1) and that Claimants were fully qualified to perform all
of the work done by the contractor's employees and were readily available for the work. The
Carrier violated the December 11, 1981, Hopkins-Berge letter of agreement, the Organization
argues, because it did not give any reason for letting the subject work. In addition, the
Organization maintains, the Carrier displayed bad faith by selecting a contractor to perform the
work before the conference on the notice of contracting out was held. Further, the Organization
contends, none of the exceptions permitting the use of outside forces to perform Rule 1-covered
work are present in this case. The contracting out of the disputed work, the Organization argues,
was therefore a contract violation.
PL13 No. 7098
Page 4 Award No. 7
Case No. 7
In the Board's opinion the record clearly establishes that the Claimants normally perform
concrete work, including the construction of concrete pads. This is clear from Rule 3 E which
expressly includes "the building of concrete forms" in the description of work performed by the
B&B [Bridge & Building] Carpenter classification. In addition, the Organization provided the
Carrier on the property with a written statement by the Claimants, not challenged by the Carrier,
that they set up the forms and poured a concrete pad of the dimensions 10' x 36' in the Carrier's
Eagle Grove, Iowa, yard and completed their work on the same day that Wyoming Efficiency
Contractors pulled into the yard to do the rest of the work. Plainly then to the extent that the
Carrier contends that the Claimants were not qualified to perform the concrete work, the
evidence indicates otherwise with regard to any concrete work not also involving phunbing work.
The record establishes, however, that the majority of the work contracted out in this case
was not Scope work. In his reply to the appeal of the Carrier's denial of the Organization's
claim, Director Labor Relations Ring asserted that "the greater preponderance of the project
involved plumbing, piping and setting of appurtenances, which is not BMWE work to begin
with." The source of the statement by the Director was a memorandum written by Manager
Bridge Maintenance James M. McQuitty dated January 17, 2005. The Organization has the
overall burden of proof in a contract violation claim, which, in the present case, includes the
burden of establishing that the protested work was Scope work.
The Carrier's notice of intent to contract out dated October 4, 2004, specifically
mentioned plumbing work, thereby lending support to the Director Labor Relations's assertion
that the greater preponderance of the project was not BMWE work. The assertion was clearly
material and was not denied or even addressed on the property by the Organization. It is
therefore accepted as factual by the Board. See Third Division Awards Nos. 29859 and 30460.
The Board finds that the plumbing, piping, and setting of appurtenances perfortned by the
contractor in this case was not Scope work and constituted a majority of the work performed by
the contractor.
Page 5 Award No. 7
Case No. 7
Although the Organization has the overall burden of proof in this case, the Carrier has the
burden of going forward with sufficient evidence to establish that the Scope work that it
contracted out met at least one of the five conditions listed in the second paragraph of Rule 1 B
that must be met in order for the Carrier to be allowed to contract out the work. See, for
example, Third Division Award No. 29310 (Elliott H. Goldstein, 1992), involving these same
parties where the Board found that the carrier's contracting out of work violated the parties'
agreement because the "Carrier failed to meet its burden of establishing [its] affirmative defense"
that the claimants did not possess the skills required to complete the project.
See also Third Division Award No. 15497 (Daniel House, 1967), where the Board found
that the carrier failed to prove that it was beyond its capacity to complete the required work on
time with the use of its own employees. The Board declared, "Thus Carrier has failed to sustain
the burden of proving the reasons it asserted to justify an exception to the Scope Rule in this
case."
In the present case the Carrier relies on the language of Rule I that permits contracting
out where "time requirements must be met which are beyond the capabilities of Company forces
to meet." The particular time requirement claimed by the Carrier here is that the work had to be
performed before the winter freeze. The Carrier, however, failed to meet its burden of showing
that it was not practicable to schedule the Claimants to perform the minority of work that
constituted Scope work in this case before the winter freeze set in. For example, it has not shown
that such work could not feasibly be done by the Claimants consistent with the demands of
operating the business in a safe, orderly, and efficient manner by assigning the work to them on
their regular days off or by putting off some of the work that was assigned to them during the
three weeks in question until after they completed the Scope work that was contracted out.
The Board does not subscribe to the position that the Organization appears to take in this
case that once it is established that Scope work is involved, the Carrier can never prevail in a
contracting out case on an argument based on time requirements. Thus the Organization asserts,
PLB No. 7098
Page 6 Award No. 7
Case No. 7
"The NRAB has consistently held that a carrier's failure to assign employees to a particular
project does not mean that the employees were unavailable to perform that work." No case is
cited, however, where the Board so held in a situation where it was shown that time requirements
necessitated contracting out the work. Followed to its logical conclusion, the Organization's
argument would read the "time requirements" clause out of Rule l B of the Agreement. The
time requirements defense is rejected by the Board here not because it is not a viable reason to
justify contracting out work but because the Carrier failed to meet its burden of showing that the
defense applied in this case.
The only estimate in the record of the amount of Scope work involved as a percentage of
the contracted out work is 30 percent. The figure appears to be reasonable, and in the absence of
any other estimate, the Board will accept it as reasonably accurate. The Board finds that the
Scope work could stand alone and was not an integral part of the remaining work contracted out.
According to the terms of the Agreement the Scope work was required to be assigned to
bargaining unit employees. Thus the Claimants were deprived of 30 percent of 480 hours of
work, or a total of 144 hours of work.'
The Board agrees with the Organization's position that the more recent awards on the
issue require a monetary remedy where work is wrongfully contracted out even though the
claimants were fully employed on other assignments during the period in question. See Third
Divisions Awards Nos. 32878 and 32862. The Board finds therefore that each of the four
Claimants is entitled to be compensated at his applicable straight-time rate for one-fourth of 144
hours. The fact that two of the Claimants were on vacation or other leave for part of the three
weeks when the contracting out occurred is not a reason for reducing their proportionate share
'The Board finds no merit to the argument made in the Organization's submission that
the 480-hours figure applied only to the concrete work performed. The Board is convinced that
the 480-hours number proffered by the Organization on the property applied to all of the work
performed by the contractor. The Carrier did not provide a specific figure as to the number of
hours involved.
PLB No. 7098
Page 7 Award No. 7
Case No. 7
since there is no basis for finding that the Scope work involved in the project, which constituted
less than half of the entire project, would have been performed on their vacation or leave days
had the Carrier assigned the work to its own employees.
AWARD
Claim sustained in accordance with findings.
ORDER
This Board, after consideration of the dispute identified above, hereby
orders that an Award favorable to the Claimants be made. The Carrier is ordered to make
the Award effective on or before 30 days following the postmark date the award is
transmitted to the parties.
Sinclair Kossoff, Chairman & Neutral Member
Dominic A. Ring, C ier ember Roy C. obinson, Employe Member
~:.>~.PLm-~.
ids
- 3
Chicago, Illinois
Dated: October 6, 2008