Csx Transportation, Inc. v. United Transportation Union

950 F.2d 872, 139 L.R.R.M. (BNA) 2061, 1991 U.S. App. LEXIS 29859, 1991 WL 268219
CourtCourt of Appeals for the Second Circuit
DecidedDecember 16, 1991
Docket488, Docket 91-7675
StatusPublished
Cited by18 cases

This text of 950 F.2d 872 (Csx Transportation, Inc. v. United Transportation Union) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Csx Transportation, Inc. v. United Transportation Union, 950 F.2d 872, 139 L.R.R.M. (BNA) 2061, 1991 U.S. App. LEXIS 29859, 1991 WL 268219 (2d Cir. 1991).

Opinion

IRVING R. KAUFMAN, Circuit Judge:

Congress enacted the Railway Labor Act (the “RLA”) in 1926 to bring stability to the fractious world of labor-management relations in the railroad industry. That stability has largely been achieved because of procedures that replace unilateral actions by management and crippling strikes by labor with mandatory bargaining in cases where relations between the parties change. It is not always clear, however, what sorts of changes in carrier-union relations require appropriate bargaining. Today, we are asked to decide whether a sale by a railroad of some of its tracks to another carrier is a change in the “rates of pay, rules, or working conditions” of union workers employed on those tracks according to Section 6 of the RLA, 45 U.S.C. § 156 (1982) (“§ 6”). If it is, then a railroad like appellant CSX Transportation (“CSX”) cannot sell its track until it has agreed with unions like appellee United Transportation Union (“UTU”) on new arrangements for employees affected by the sale. If it is not, then the railroad may sell without bargaining beforehand. We join all other .circuits to have considered the question in holding that such sales are not changes in salaries, rules or job conditions, but rather are matters of management prerogative that may proceed without previous § 6 bargaining.

BACKGROUND

We are no strangers to the dispute between CSX and UTU, having decided an earlier question between the parties in CSX Transportation, Inc. v. United Transportation Union, 879 F.2d 990 (2d Cir.1989), cert. denied, 493 U.S. 1020, 110 S.Ct. 720, 107 L.Ed.2d 740 (1990) (“CSX I”). As that decision so thoroughly explicated the factual background underlying this on-going controversy, a brief review will suffice here.

Appellant CSX owns and operates over 21,000 miles of railroad tracks in the U.S. and Canada. As such, it is subject to the RLA. Likewise, appellees are labor organizations and their officers who are “representatives” under that statute. See 45 U.S.C. § 151 First, Sixth (1982). During the late summer of 1987, CSX sought to sell 369 miles of its railroad lines between Buffalo, New York and Eidenau, Pennsylvania to the Buffalo and Pittsburgh Railroad (“B & P”) because decreased traffic on the route had shrunk CSX’s profits. *874 The proposed sale agreement obligated B & P to retain 160 of the 226 CSX employees on the line, but B & P was free to reach new labor agreements with retained employees. Several unions representing CSX workers responded to the proposed sale by serving notices on the railroad pursuant to § 6, hoping to change their “agreements affecting rates of pay, rules or working conditions.” After a union or a carrier gives § 6 notice of an intended change in their agreement to the other, that provision, as noted above, commands that “rates of pay, rules or working conditions shall not be altered by the carrier until the controversy has finally been acted upon.” The union cannot strike during this period, either. Detroit & Toledo Shore Line Railroad Co. v. Transportation Union 396 U.S. 142, 149-150, 90 S.Ct. 294, 299, 24 L.Ed.2d 325 (1969) (“Shore Line ’!) Hence, what has been called the “status quo” between labor and management is preserved while negotiations over the proposed change take place. This process “provides time for tempers to cool, helps create an atmosphere in which rational bargaining can occur, and permits the forces of public opinion to be mobilized in favor of a settlement.” Id. at 150, 90 S.Ct. at 299.

By the end of October, 1987, the dispute between CSX and UTU was before the United States District Court for the Western District of New York, after removal from New York State Supreme Court and certain actions by the Interstate Commerce Commission. See CSX I, 879 F.2d at 993. CSX sought a declaratory judgment that it need not engage in pre-sale § 6 bargaining with the unions, and an injunction prohibiting strikes to impede the sale. UTU sought an injunction proscribing the sale pending the outcome of § 6 negotiations and maintaining the status quo in the meantime.

On May 26, 1988, the district court ruled. Decker v. CSX Transportation, Inc., 688 F.Supp. 98 (W.D.N.Y.1988), aff'd sub nom., CSX I, 879 F.2d 990 (2d Cir.1989). It first considered whether the CSX-UTU dispute was “major” or “minor” under the RLA. 1 Major disputes are controversies over the formation of, or the addition of new terms to, a collective bargaining agreement. They are governed by § 2, Seventh, and § 6 of the RLA. Elgin, Joliet & Eastern Railway Co. v. Burley, 325 U.S. 711, 723, 65 S.Ct. 1282, 1290, 89 L.Ed. 1886 (1945). Minor disputes are disagreements over the meaning of terms already present in existent collective bargaining agreements, and are governed by RLA § 2, Sixth and § 3 First© (1982). Id. Put another way, “major disputes seek to create contractual rights, minor disputes to enforce” ones that already exist, though they may be in dispute. Consolidated Rail Corp. v. RLEA, 491 U.S. 299, 302, 109 S.Ct. 2477, 2480, 105 L.Ed.2d 250 (1989). Applying the Supreme Court’s rule of Consolidated Rail that a carrier need only proffer an “arguable” contractual justification for its proposed action in order to classify the dispute as minor, id. at 307, 109 S.Ct. at 2482-83, the court held that CSX had offered a plausible interpretation of their agreement with UTU that would authorize line sales without pre-sale bargaining to protect lost jobs. Decker, 688 F.Supp. at 112. 2 The case was therefore sent to the RLA-mandated repository of all minor disputes: binding arbitration before a National Railroad Adjustment Board or a special adjustment board established by the parties. RLA § 3, 45 U.S.C. 153, First and Second (1982). The arbitrators would determine *875 whether CSX’s contractual justification is more than just plausible, i.e. whether the agreement actually allows the sale and force reduction. On the court’s order, the sale was allowed to proceed, but was stayed pending expedited appeal. We lifted that stay after oral argument in CSX I, and the sale was completed on July 19, 1988.

UTU appealed the court’s decision in Decker. While that appeal was pending, the parties established Special Board of Adjustment No.

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950 F.2d 872, 139 L.R.R.M. (BNA) 2061, 1991 U.S. App. LEXIS 29859, 1991 WL 268219, Counsel Stack Legal Research, https://law.counselstack.com/opinion/csx-transportation-inc-v-united-transportation-union-ca2-1991.