Almost before the ink was dry on the National Agreement
signed on September 26, 1996, the railroads began welshing on the deal which had taken two
struggle-filled years to reach. But the railroads' lack of integrity was more than met by
the rock solid determination of the BMWE membership to never give up. Because of true
solidarity and commitment, the BMWE gained victory at last when Arbitrator Richard R.
Kasher fully sustained the BMWE's position that Article XIV of the National Agreement
applies to all traveling employees. The Award was issued on June 20, 1999, just short of
three years after the agreement signing.
Voting in record numbers, BMWE members overwhelmingly (nearly 90 percent) ratified the
National Agreement in October 1996. The 61 percent response rate was nearly fivefold the
number of members who voted in the previous round, a tribute to the increased involvement
and solidarity the '95 bargaining round helped to build.
But the wave of positive feeling came crashing down when the railroads refused to abide
by the agreement, saying that only regional and system gangs were entitled to the travel
allowance. The BMWE immediately (early in November 1996) threatened to strike and
simultaneously filed suit in the Federal District Court for the Central District of
Illinois (Peoria) against all the major railroads (BNSF, Conrail, CSX, NS, UP) to force
them to pay the travel allowance as required under the agreement.
At the time President Mac A. Fleming described the railroads' refusal to honor their
written word as "one of the greatest disappointments I have had as President of the
BMWE." He said he understood the railroads' "reflex to sharpshoot; to play games
of upmanship. It is a reflex that needs to be broken if the railroad industry is to move
into the next millennium." He urged the railroads to "just do what you agreed to
do--provide the travel allowance to all BMWE members working away from home."
On December 17, 1996, the Peoria Court issued a preliminary injunction to stop the BMWE
from striking the nation's railroads after it agreed with the BMWE that travel allowance
payments are a major dispute under the Railway Labor Act. The court found that the travel
provisions were in "plain and unambiguous language," and that the carriers had
no "arguable justification" for ignoring the contract or demanding arbitration
on the issue.
"The carriers think they can just pick and choose among the contract provisions
they want to implement," said President Fleming at the time. "They thought they
could just arbitrate a different agreement from the one they signed. They were
wrong."
The railroads immediately filed an appeal with the Seventh Circuit Court of Appeals and
the BMWE was granted their motion to expedite the appeal.
The BMWE then also filed separate lawsuits against the BNSF and CSX over those
railroads' refusal to pay weekend meal allowances when workers collect the national travel
allowance. The National Agreement coupled with the recommendations of Presidential
Emergency Board 229 made the national travel allowance an amendment to the away-from-home
expense provisions of the agreement (Award 298).
BNSF argued that if they had to pay the travel allowance, they were no longer required
to pay the seven-day meal allowance under Award 298, but only had to pay meal allowances
for the number of days worked. Arbitrator Das rejected the railroad's argument in a
decision issued in 1998.
Oral arguments on the PEB 229 travel allowance was heard in the federal court at the
end of February 1997 but a decision wasn't rendered until December 1997 and it was a hard
punch in the stomach for the BMWE. The U.S. Court of Appeals for the Seventh Circuit, by a
2-1 vote, reversed the judgement of the District Court which held that the BMWE's dispute
with the carriers over the payment of travel allowances was a major dispute.
All three judges agreed that if you looked only at the plain language of Article XIV of
the Agreement, the dispute is major. "We would hold the railroads' view 'frivolous or
obviously insubstantial' and affirm the district court--if the act of interpretation were
to stop at the four corners of the Agreement." But the majority held there might be
some "latent ambiguity" and that they must look at evidence outside the
agreement even if the agreement language is clear.
The dissenting judge stated that "Article XIV makes no distinction between
employees who travel with a district gang and those who travel with a regional and system
gang. Either type of gang can travel considerable distances as the majority notes and as
the record amply demonstrates. ... I agree with the district court that the railroads are
trying to obtain a new and materially different travel allowance in the agreement."
When the Court of Appeals found the dispute to be minor it meant that under law the
BMWE had to go to arbitration and couldn't strike over the issue. The BMWE did appeal to
the U.S. Supreme Court but the Court denied a writ of certiorari (refused to hear the
case).
At this juncture, CSX stood out. CSX generally chooses to negotiate rather than
arbitrate as most recently demonstrated in the agreement they made over the Conrail
carve-up. This was true at that time also and the BMWE was able to reach an agreement with
CSX providing all traveling employees with a travel allowance, which was ratified by the
membership of the BMWE on CSX.
Now, following a year and a half of arbitration, BMWE members have finally been awarded
what they have struggled for so long to achieve. This is a major victory for the BMWE,
worth millions in retroactive expenses and more millions into the future. However, the
failure of the railroads to honor their clear commitment under the 1996 National Agreement
and force these issues to strike, court and arbitration, makes it difficult to believe
anything they say, even at the bargaining table.
Each involved system is in the process of working out arrangements to implement the
Kasher Award on the various railroads. We hope the railroads will implement the
arbitration decision immediately.
In a letter to all general chairmen explaining the process of the implementation of the
travel allowance award, President Fleming said, "I would like to take this
opportunity to thank all of the people who worked so hard to right the wrong the carriers
committed when they welshed on the travel allowance agreement they made with the BMWE. Our
victory was made possible by a true showing of solidarity that involved the membership and
system officers who religiously filed thousands of travel allowance claims and the Grand
Lodge officers and staff who doggedly pursued this matter through years of litigation and
arbitration. My thanks goes out to each and every one of you who never gave up despite the
carriers' years of stonewalling and legal maneuvering." |