Barry v. Smith

285 F. Supp. 801, 1968 U.S. Dist. LEXIS 8615
CourtDistrict Court, D. Massachusetts
DecidedJune 21, 1968
DocketCiv. A. No. 67-274-J
StatusPublished
Cited by4 cases

This text of 285 F. Supp. 801 (Barry v. Smith) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barry v. Smith, 285 F. Supp. 801, 1968 U.S. Dist. LEXIS 8615 (D. Mass. 1968).

Opinion

OPINION

JULIAN, District Judge.

This is an action brought by a veteran against his employer contesting an alleged denial of full reemployment rights guaranteed by Section 8 of the Selective Training and Service Act of 1940, as amended, former 50 U.S.C.App. § 808, recodified as 50 U.S.C.App. § 459 (hereinafter the “Act”). The United States Attorney appears for plaintiff pursuant to 50 U.S.C.App. § 459(d). The parties have submitted the case to the Court upon an agreed statement of facts and upon briefs.

The factual basis of plaintiff’s claim can be briefly stated. Plaintiff entered the employ of the New York, New Haven, and Hartford Railroad Company (hereinafter the “Railroad”) for the first time [803]*803here relevant1 on May 9, 1944, in the capacity of car cleaner. He left that employment just short of three months later, on August 5, 1944, to enter the military service of the United States. He served in the Navy from September 4, 1944, until March 25, 1946, when he was honorably discharged. Two weeks later, on April 8, 1946, he resumed employment with the Railroad and, with the exception of sick-leave absences not here relevant, has continued in that employment to date.

Plaintiff is a member of the Brotherhood of Railway Carmen of America. At all times pertinent his annual vacations have been governed by the terms of an Agreement dated December 17, 1941, as amended, between certain rail carriers (including the Railroad) and certain railroad unions (including plaintiff’s union). That Agreement and its subsequent amendments 2 are hereinafter referred to as the “Agreement.”

Under a 1964 amendment to the Agreement,3 employees with 20 or more- years of continuous service who, during those years, had rendered specified numbers of days of “compensated service” were entitled beginning in 1965 to receive an annual paid vacation of 20 consecutive work days. Plaintiff in 1965 was given a paid vacation of only 15 consecutive work days, which represented the length of paid vacation to which, under the Agreement, employees who had accumulated at least 15 but less than 20 years of continuous service were entitled.

Plaintiff claims that under Section 8 of the Act he is entitled to credit for the period of his military service, and that if given such credit he would have completed 20 continuous years of service in the Railroad’s employ on May 9, 1964, and thus be entitled in 19654 to an additional five days of paid vacation.

The relevant parts of Section 8 of the Act, 50 U.S.C.App. § 459, are set forth in the margin.5 The Railroad contends that under subsection (c) thereof vacation pay is not an element of seniority but, rather, one of the “other benefits” [804]*804mentioned in that section. Thus, the Railroad argues, plaintiff’s vacation eligibility is governed by the “established rules and practices” of the Railroad regarding “employees on furlough or leave of absence.” “Established rules and practices,” the argument continues, in this case means the Agreement, which in turn conditions the length of paid vacation on the number of years during which the employee performed “compensated service.” “Compensated service” is said to mean actual time on the job for which the employee is paid. Therefore it is said to follow that, since those on furlough do not perform “compensated service” in that sense, and since plaintiff’s military service is to be so treated, his period of military service should not be included when calculating the length of paid vacation to which he is entitled.

The Railroad’s argument is irreconcilable with the provisions and purpose of the Act as construed by the Supreme Court and must be rejected. That purpose was to ensure that “[h]e who was called to the colors was not * * * penalized on his return by reason of his absence from his civilian job.” Fishgold v. Sullivan Drydock & Repair Corp., 1946, 328 U.S. 275, 284, 66 S.Ct. 1105, 1111, 90 L.Ed. 1230. The method incorporated in the Act to accomplish that goal has sometimes been termed the “escalator principle,” first expressed by the Supreme Court in Fishgold, supra, at 284-285, 66 S.Ct. at 1105. The honorably discharged veteran returning to civilian employment

“must be restored to his former position ‘or to a position of like seniority, status, and pay' * * * he does not step back on the seniority escalator at the point he stepped off. He steps back on at the precise point he would have occupied had he kept his position continuously during the war.” Id. at pp. 284-285, 66 S.Ct. 1111.

The Railroad contends that this “escalator principle,” which in 1948 was codified in the Act,6 applies only to a narrow conglomeration of rights labelled “seniority” but not to so-called “fringe benefits,” such as vacation pay. The language of § 459(c) (2), however, is not so limited. Nor does such a restricted interpretation appear in the Supreme Court’s subsequent restatements of the rule.7

Any lingering doubts on this point were resolved, in any event, by a recent pair of Supreme Court decisions. Two earlier Second Circuit decisions had held that vacation pay did

“not come within those provisions of [§ 459(c)] ensuring restoration of a veteran’s rights without loss of seniority, but within the provision that a veteran ‘shall be entitled to participate in insurance or other benefits [805]*805offered by the employer pursuant to established rules and practices relating to employees on furlough or leave of absence * * * ’ ”8

Thus the “escalator principle” was held inapplicable to vacation pay. Both decisions rested on the notion that vacation rights represented compensation for work actually performed. Directly conflicting with the Alvado and Siaskiewicz cases were two Third Circuit decisions which held that vacation rights created by collective bargaining were protected by the “escalator principle” of the Act.9

These conflicting viewpoints came to a head in Accardi v. Pennsylvania Railroad Co., 1966, 383 U.S. 225, 86 S.Ct. 768, 15 L.Ed.2d 717. In that case World War II veterans discharged by the railroad claimed that the amounts of separation allowances paid to them were too small. The amount of severance pay was determined, under the agreement, according to each employee’s “length of compensated service.” The railroad, however, had refused to treat the years plaintiffs had served in the armed services as years of “compensated service.” The Court of Appeals, citing Alvado, supra, upheld the railroad’s position that separation benefits were fringe benefits rather than the “seniority, status, and pay” protected by the “escalator principle” of 50 U.S.C.App. § 459(b) (B) and (c).

The Supreme Court reversed, noting that

“The term ‘seniority’ is nowhere defined in the Act, but it derives its content from private employment practices and agreements. This does not mean, however, that employers and unions are empowered by the use of transparent labels and definitions to deprive a veteran of substantial rights guaranteed by the Act.

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285 F. Supp. 801, 1968 U.S. Dist. LEXIS 8615, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barry-v-smith-mad-1968.