Decker v. CSX Transportation, Inc.

688 F. Supp. 98, 128 L.R.R.M. (BNA) 2620, 1988 U.S. Dist. LEXIS 4865, 1988 WL 52408
CourtDistrict Court, W.D. New York
DecidedMay 26, 1988
DocketCIV-87-1147C, CIV-87-1391C
StatusPublished
Cited by7 cases

This text of 688 F. Supp. 98 (Decker v. CSX Transportation, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Decker v. CSX Transportation, Inc., 688 F. Supp. 98, 128 L.R.R.M. (BNA) 2620, 1988 U.S. Dist. LEXIS 4865, 1988 WL 52408 (W.D.N.Y. 1988).

Opinion

CURTIN, Chief Judge.

This case presents an important question, still unsettled by prior precedent, as to the interaction of two federal statutes: the Railway Labor Act, 45 U.S.C. §§ 151-188 [RLA], and the Interstate Commerce Act, 49 U.S.C. §§ 10101-11917 [ICA]. The issue arises in the context of the pending sale by CSX Transportation, Inc. [CSXT], plaintiff in this action for injunctive and declaratory *100 relief, of a line of railroad between Buffalo, New York, and Eidenau, Pennsylvania, to the Buffalo and Pittsburgh Railroad, Inc. [B & P], a newly formed corporation. Specifically, the question presented is whether a railroad has a duty to refrain from completing a sale of one of its rail lines pending bargaining under the RLA over the effects of that sale on the employees of that line when the Interstate Commerce Commission [ICC] has granted expedited approval to the proposed sale without imposition of labor protective conditions. In order to properly resolve this question, it will be helpful to the court to review the relevant statutory background, the factual and procedural background of the instant case, and the status of the relevant case law before addressing the specific areas of dispute between the parties.

Statutory Background

The RLA was enacted in 1926 to regulate labor relations on the nation’s railroads by establishing an “elaborate machinery for negotiation, mediation, voluntary arbitration, and conciliation.” Detroit and Toledo Shore Line Railroad v. United Transportation Union, 396 U.S. 142, 148-49, 90 S.Ct. 294, 298, 24 L.Ed.2d 325 (1969). Central to the RLA’s purposes is the duty imposed on rail labor and carriers by § 2 First,

to exert every reasonable effort to make and maintain agreements concerning rates of pay, rules, and working conditions, and to settle all disputes, whether arising out of the application of such agreements or otherwise, in order to avoid any interruption to commerce or to the operation of any carrier growing out of any dispute between the carrier and the employees thereof.

45 U.S.C. § 152 First; see Chicago & N. W. Railway Co. v. United Transp. Union, 402 U.S. 570, 574-75, 91 S.Ct. 1731, 1733-34, 29 L.Ed.2d 187 (1971). The disputes to which § 2 First refers fall into two categories— “major” disputes, which involve efforts to formulate new collective bargaining agreements or proposals to change existing agreements, and “minor” disputes, which involve the interpretation or application of a specific provision of an existing collective bargaining agreement. 1

Minor disputes are resolved through a formal grievance process that culminates in binding arbitration performed by the National Railroad Adjustment Board, as set forth in § 3, 45 U.S.C. § 153. When a minor dispute arises, the parties are not precluded from changing the status quo while arbitration is pending. See, e.g., United Transp. Union v. Penn Central Transp. Co., 505 F.2d 542, 545 (3d Cir.1974). However, strikes over minor disputes are prohibited, and may be enjoined by the district court to preserve the jurisdiction of the Adjustment Board. Brotherhood of Railway Trainmen v. Chicago River & Indiana R.R. Co., 353 U.S. 30, 77 S.Ct. 635, 1 L.Ed.2d 622 reh’g denied, 353 U.S. 948, 77 S.Ct. 823, 1 L.Ed.2d 857 (1957). Major disputes, on the other hand, invoke a status quo obligation until the RLA bargaining processes have been exhausted. 45 U.S.C. §§ 152, 156; see Detroit & Toledo Shore Line, 396 U.S. at 150-53, 90 S.Ct. at 299-301.

Courts have the power to grant injunctive relief when a party violates the RLA procedures by unilaterally altering the status quo. Detroit v. Toledo Shore Line, 396 U.S. at 150, 90 S.Ct. at 299. Once the RLA processes are finally exhausted and it becomes clear that the parties will not reach an agreement, the status quo obligations are removed and the parties are free to resort to self-help. Brotherhood of R.R. Trainmen v. Jacksonville Terminal Co., 394 U.S. 369 at 378-80, 89 S.Ct. 1109 at 1115-16, 22 L.Ed.2d 344 (1969).

The ICA was enacted in 1887 and has been substantively amended several times since. 2 It vests in the ICC exclusive juris *101 diction to approve and regulate acquisitions of rail lines. See, e.g., 49 U.S.C. §§ 10901(a), 11343(a); see also Chicago & N.W. Transp. Co. v. Kalo Brick & Tile Co., 450 U.S. 811, 319-20, 101 S.Ct. 1124, 1131-32, 67 L.Ed.2d 258 (1981). Section 10901 governs the acquisition of rail lines by newly formed carriers and sets up a procedure whereby the new carrier may obtain prior approval of the transaction only upon a finding by the ICC “that the present or future public convenience and necessity require or permit” the transaction to proceed. 49 U.S.C. § 10901(a). The ICC has discretion to condition its approval on the provision of “a fair and equitable arrangement for the protection of the interests of railroad employees who may be affected [by the transaction.].” § 10901(e). Compare with 49 U.S.C. § 11347 (regulating consolidations, mergers, or acquisitions involving existing rail carriers) (“Commission shall require” labor protective conditions) (emphasis added). Pursuant to § 10505, the ICC may exempt any § 10901 transaction from the prior approval requirements when it finds that such regulation “is not necessary to carry out” national rail transportation policy and is “not needed to protect shippers from the abuse of market power.” 49 U.S.C. § 10505(a).

As a means of facilitating entry into the railroad business, the ICC, in a 1985 rule-making proceeding, decided to exempt from regulation under § 10901 the entire class of transactions involving acquisitions by non-carriers. See Ex Parte No.

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688 F. Supp. 98, 128 L.R.R.M. (BNA) 2620, 1988 U.S. Dist. LEXIS 4865, 1988 WL 52408, Counsel Stack Legal Research, https://law.counselstack.com/opinion/decker-v-csx-transportation-inc-nywd-1988.