Richard M. McQuestion v. New Jersey Transit Rail Operations, Inc., Louis A. Hart v. New Jersey Transit Rail Operations, Inc.

30 F.3d 388
CourtCourt of Appeals for the Third Circuit
DecidedAugust 11, 1994
Docket93-5515
StatusPublished
Cited by5 cases

This text of 30 F.3d 388 (Richard M. McQuestion v. New Jersey Transit Rail Operations, Inc., Louis A. Hart v. New Jersey Transit Rail Operations, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richard M. McQuestion v. New Jersey Transit Rail Operations, Inc., Louis A. Hart v. New Jersey Transit Rail Operations, Inc., 30 F.3d 388 (3d Cir. 1994).

Opinions

OPINION OF THE COURT

WEIS, Circuit Judge.

In this appeal, we hold that under the Railway Labor Act, 45 U.S.C. § 151 et seq., grievances arising from the discharges of two employees should be arbitrated by the National Railroad Adjustment Board. We conclude that, despite the absence of a formally ratified collective bargaining agreement, a de facto agreement existed and that the Adjustment Board erred in declining to exercise jurisdiction over the grievances. Accordingly, we will reverse the district court’s judgment sustaining the Adjustment Board’s position.

Police Officers Richard M. McQuestion and Louis A. Hart were employed by New Jersey Transit Rail Operations, Inc. until they were discharged on June 20, 1985 and August 2, 1985, respectively. At the time of their discharges, they were members of the New Jersey Transit Policemen’s Benevolent Association. Although the Benevolent Association was actively negotiating with N. J. Transit, no collective bargaining agreement had yet been ratified by the union membership at the time when the employees were discharged. During the pendency of negotiations, however, employee conduct and grievance procedures followed work rules derived from an earlier, non-ratified draft of an agreement.

After unsuccessfully pursuing in-house grievance procedures, the Benevolent Association petitioned the Adjustment Board to arbitrate the employee discharges. The Adjustment Board dismissed both claims on the ground that it lacked jurisdiction, stating: “In the absence of a ratified contractual agreement between the parties that covers Claimant’s employment, the Board has no contractual basis upon which to rule.”

The employees then filed petitions for review in the United States District Court for the District of New Jersey. The court dismissed the petitions on the ground that the employees lacked standing to contest the Adjustment Board’s rulings on claims filed on their behalf by the union. We reversed. See McQuestion v. New Jersey Transit Rail Operations, 892 F.2d 352 (3d Cir.1990).

On remand, the district court again denied the petitions for review. The court concluded that the Adjustment Board’s jurisdiction under 45 U.S.C. § 153 First (i) is limited to “resolve only ‘minor’ disputes which have come to be defined as those arising out of the interpretation and application of the collective bargaining agreement.” Rejecting the employees’ argument that the interim operating procedures implemented by N.J. Transit governed the dispute, the court decided that they were “not the same as procedures which are the ratified product of the collective bargaining process.” The employees then filed a second appeal with this Court.

I.

We exercise plenary review over the sole issue before us — whether the employee discharges in this case are subject to the exclusive jurisdiction of the Adjustment Board. See Miklavic v. USAir, Inc., 21 F.3d 551, 553 (3d Cir.1994).

One of the primary purposes of the Railway Labor Act is to avoid disruptions to commerce caused by interruptions in the operations of rail and air carriers as the result of labor unrest. The method of resolution of disputes between a carrier and its employees depends on whether the conflicts are classified as either “major” or “minor.” “Major” disputes are those concerning the formation or modification of collective bargaining agreements. See id. “Minor” disputes cover those more-or-less routine employee griev-[391]*391anees that arise daily within the railway industry. Union Pac. R.R. v. Sheehan, 439 U.S. 89, 94, 99 S.Ct. 399, 402, 58 L.Ed.2d 354 (1978) (per curiam).

There is no serious contention here that we are confronted with a “major” dispute, and the real issue is whether the discharges are “minor” for purposes of establishing the exclusive jurisdiction of the Adjustment Board. The pertinent statutory provision, codified at 45 U.S.C. § 153 First (i), reads in pertinent part:

“The disputes between an employee or group of employees and a carrier or carriers growing out of grievances or out of the interpretation or application of agreements concerning rates of pay, rules, or working conditions ... may be referred by petition of the parties or by either party to the appropriate division of the Adjustment Board....”

In Elgin, Joliet & E. Ry. v. Burley, 325 U.S. 711, 723, 65 S.Ct. 1282, 1289, 89 L.Ed. 1886 (1945), the Supreme Court described the statutory arrangement for the Adjustment Board’s role as contemplating

“the existence of a collective agreement already concluded or, at any rate, a situation in which no effort is made to bring about a formal change in terms or to create a new one. The dispute relates either to the meaning or proper application of a particular provision with reference to a specific situation or to an omitted case. In the latter event the claim is founded upon some incident of the employment relation, or asserted one, independent of those covered by the collective agreement, e.g., claims on account of personal injuries.”1

Later in the opinion, the Court noted that the Adjustment Board had authority to determine what the employer and union had “agreed upon previously or, outside the scope of a collective agreement, what rights the carrier and its employees may have acquired by virtue of other incidents of the employment relation.” Id. at 747-48 n. 44, 65 S.Ct. at 1301 n. 44.

In Consolidated Rail Corp. v. Railway Labor Executives’ Ass’n, 491 U.S. 299, 109 S.Ct. 2477, 105 L.Ed.2d 250 (1989), the parties had entered into a collective bargaining agreement, and the issue was whether the dispute should be classified as “major” or “minor.” After reiterating the Burley test, the Court observed that neither party relied on any express provision of the agreement. Commenting that the parties based their arguments instead on implied contractual terms, the Court concluded that “‘practice, usage and custom’ is of significance in interpreting their agreement.” Id. at 311, 109 S.Ct. at 2477. Accordingly, although the collective bargaining agreement was completely silent on the issue at hand, the Court held that the dispute between the union and the railroad was a “minor” one and within the exclusive jurisdiction of the Adjustment Board. Id. at 312, 109 S.Ct. at 2485.

The purpose of the Railway Labor Act and the role of the Adjustment Board was set out in Sheehan, 439 U.S. at 94, 99 S.Ct. at 402. Describing the Adjustment Board as a tribunal for workers and management to secure the prompt, orderly, and final settlement of day-to-day grievances between employees and carriers regarding rates of pay, rules, and working conditions, the Court observed that “Congress considered it essential to keep these so-called ‘minor’ disputes within the Adjustment Board and out of the courts.” Id.; see also Pennsylvania Fed’n of Bhd.

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30 F.3d 388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richard-m-mcquestion-v-new-jersey-transit-rail-operations-inc-louis-a-ca3-1994.