American Train Dispatchers Association v. Interstate Commerce Commission and United States of America, Csx Transportation, Inc., Intervenor

26 F.3d 1157, 307 U.S. App. D.C. 93, 29 Fed. R. Serv. 3d 565, 1994 U.S. App. LEXIS 16162
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 28, 1994
Docket92-1397
StatusPublished
Cited by37 cases

This text of 26 F.3d 1157 (American Train Dispatchers Association v. Interstate Commerce Commission and United States of America, Csx Transportation, Inc., Intervenor) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Train Dispatchers Association v. Interstate Commerce Commission and United States of America, Csx Transportation, Inc., Intervenor, 26 F.3d 1157, 307 U.S. App. D.C. 93, 29 Fed. R. Serv. 3d 565, 1994 U.S. App. LEXIS 16162 (D.C. Cir. 1994).

Opinion

Opinion for the court filed by Circuit Judge BUCKLEY.

*1159 BUCKLEY, Circuit Judge:

The American Train Dispatchers Association (“Union”), a union of railroad employees, petitions for review of an order of the Interstate Commerce Commission exempting CSX Transportation, Inc. (“CSXT”) from provisions of the collective bargaining agreement (“CBA”) between the Union and CSXT. Under its authority to oversee railway consolidations, the ICC granted the exemption as a follow-up to its 1980 approval of CSXT’s acquisition of several railroads. The exemption allows CSXT to transfer train dispatching work performed by four employees at its Corbin, Kentucky, property to its facility in Jacksonville, Florida, where non-union management employees will absorb the work. The Union claims that the four union employees were entitled to follow their jobs to Jacksonville and that the work transfer was unnecessary and beyond the scope of the 1980 approval of CSXT’s acquisitions.

We affirm the ICC’s decision but rely on different grounds. The ICC failed to inquire whether the work transfer deprives the four employees of any “rights,” “privileges,” or “benefits” in the CBA, an inquiry required by our recent decision in Railway Labor Executives’ Ass’n v. United States, 987 F.2d 806 (D.C.Cir.1993) (“Executives”). Because the Union has conceded that no rights, privileges, or benefits were infringed, however, we see no reason to remand. In addition, we agree with the Commission’s determination that the work transfer stemmed from the 1980 approval of CSXT’s acquisitions and was necessary to effectuate them.

I. BACKGROUND

A. Statutory Scheme

The railroad industry emerged from World War I in a precarious condition. Norfolk & Western Ry. Co. v. Am. Train Dispatchers, 499 U.S. 117, 118, 111 S.Ct. 1156, 1158, 113 L.Ed.2d 95 (1991). As a consequence, in 1920 Congress passed legislation to encourage railway consolidations that would enhance economy and efficiency in the industry. Id. at 118-21, 111 S.Ct. at 1158-59. In its current form, this policy appears in Chapter 113 of the Interstate Commerce Act (“ICA”), which authorizes the ICC to examine, condition, and approve railway mergers and consolidations. 49 U.S.C. § 11301 et seq.

ICC approval of a consolidation frees railroad companies from various legal constraints. In particular, section 11341(a) of the ICA provides, in pertinent part:

A carrier, corporation, or person participating in that approved or exempted transaction is exempt from the antitrust laws and from all other law, including State and municipal law, as necessary to let that person carry out the transaction, hold, maintain, and operate property, and exercise control or [sic] franchises acquired through the transaction.

49 U.S.C. § 11341(a) (emphasis added). In Norfolk & Western, the Court held that “the term ‘all other law5 in § 11341(a) includes any obstacle imposed by law,” including “the substantive and remedial laws respecting enforcement of collective-bargaining agreements.” 499 U.S. at 133, 111 S.Ct. at 1166. The Court declined to decide, however, the issue whether “the scope of the immunity provision [i.e., section 11341(a) ] is limited by § 11347, which conditions approval of a transaction on satisfaction of certain labor-protective conditions.” Id. It is this issue that confronts us here.

Section 11347 is intended to insulate railroad workers from the jolts of the corporate restructuring sanctioned by the ICC. It provides:

When a rail carrier is involved in a transaction for which approval is sought ... the [ICC] shall require the carrier to provide a fair arrangement at least as protective of the interest of employees who are affected by the transaction as the terms imposed under this section before February 5,1976, and the terms established under section 405 of the Rail Passenger Service Act (45 U.S.C. [§] 565).

49 U.S.C.-§ 11347. This provision incorporates by reference two sets of standards. The first is “the terms imposed under this section before February 5, 1976.” Before that date, the Washington Job Protection Agreement of 1936 (“WJPA”) governed labor-management negotiations over workers’ rights in railway consolidations. CSX *1160 Corp. —Control—Chessie Sys., Inc. and Seaboard Coast Line Indus., Inc., 6 I.C.C.2d 715, 732-33 (1990). In Executives, where section 11341(a) did not apply, we adopted the ICC’s view that the history of negotiations under the WJPA shows “that arbitrators were authorized ... to make certain changes to CBAs.” 987 F.2d at 813. Thus, we found that “it was reasonable for the Commission to interpret the reference in § 11347 to the pre-1976 terms as carrying forward into the present version of § 11347 its authority to change CBAs.” Id.

We went on to note, however, that the second set of standards incorporated by reference in section 11347, section 405 of the. Rail Passenger Service Act, limits the power to override CBAs. Id. at 813-14. Section 405 provides, in pertinent part:

(a) A railroad shall provide fair and equitable arrangements to protect the interests of employees....
(b) Such protective arrangements shall include ... such provisions as may be necessary for ... the preservation of rights, privileges, and benefits ... to such employees under existing collective-bargaining agreements....

45 U.S.C. § 565(a), (b) (emphasis added). Construing this language, we commented:

The statute clearly mandates that “rights, privileges, and benefits” afforded employees under existing CBAs be preserved. Unless, however, every word of every CBA were thought to establish a right, privilege, or benefit for labor — an obviously absurd proposition — § 565 (and hence § 11347) does seem to contemplate that the ICC may modify a CBA.

Executives, 987 F.2d at 814 (footnotes omitted).

To implement section 11347, the ICC has devised a package of arbitration procedures and employee benefits, known as the New York Dock conditions, see New York Dock Ry. —Control—Brooklyn E. Dist. Terminal, 360 I.C.C. 60, 84-90 (1979), aff'd sub nom. New York Dock Ry. v. United States, 609 F.2d 83

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26 F.3d 1157, 307 U.S. App. D.C. 93, 29 Fed. R. Serv. 3d 565, 1994 U.S. App. LEXIS 16162, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-train-dispatchers-association-v-interstate-commerce-commission-cadc-1994.