Southern Pacific Transportation Co. v. International Brotherhood of Locomotive Engineers

752 F. Supp. 400, 1990 U.S. Dist. LEXIS 16371
CourtDistrict Court, D. Kansas
DecidedNovember 13, 1990
DocketBankruptcy 90-4178-R, 90-4186-R
StatusPublished
Cited by3 cases

This text of 752 F. Supp. 400 (Southern Pacific Transportation Co. v. International Brotherhood of Locomotive Engineers) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Pacific Transportation Co. v. International Brotherhood of Locomotive Engineers, 752 F. Supp. 400, 1990 U.S. Dist. LEXIS 16371 (D. Kan. 1990).

Opinion

MEMORANDUM AND ORDER

ROGERS, District Judge.

This court is once again confronted with the battle between certain railroads and a union representing locomotive engineers over the operation of trains between Kansas City and Chicago pursuant to a track-age rights agreement. The railroads involved are the Southern Pacific Transportation Company; St. Louis Southwestern Railway Company; Denver & Rio Grande Western Railroad Company; and SPCSL Corporation (collectively referred to as “the railroads”). The railroads are rail carriers under the Railway Labor Act (RLA) and Interstate Commerce Act (ICA), engaged in the transportation of freight in intrastate, interstate and foreign commerce. The involved union is the International Brotherhood of Locomotive Engineers (BLE). The BLE represents certain of the railroads’ *402 employees working throughout the railroads’ systems.

This matter is presently before the court upon the following motions: (1) BLE’s motion for order holding SPCSL in contempt of the court’s order of October 25, 1990, or, alternatively, for modification of the October 25th order; (2) BLE’s motion to amend preliminary injunction order so as to provide for posting of nominal bond; (3) railroads’ motion for temporary restraining order and preliminary injunction; and (4) railroads’ motion to stay order of October 25. On November 5, 6 and 7, 1990, the court held a hearing on these motions. During the hearing, the Interstate Commerce Commission filed a motion to intervene in this action. The court orally granted that motion. The court shall provide some additional background as we consider the various issues, arguments and evidence related to the pending motions. This memorandum and order shall constitute the court’s findings of fact and conclusions of law.

The court’s initial discussion shall focus on the railroads’ motion for TRO and preliminary injunction and the BLE’s motion for contempt. In order to begin the discussion of these motions, the court shall first set forth some factual background. These facts will include facts demonstrated at the prior hearing.

In 1987, the Chicago, Missouri & Western Railroad Company (CMW) purchased the railroad line from Chicago, Illinois to St. Louis, Missouri. The CMW also operated a line from Kansas City, Kansas to Springfield, Illinois. BLE entered into a collective bargaining agreement with the CMW to provide engineers for these lines. The CMW subsequently went into bankruptcy. SPCSL purchased certain rail assets of the CMW, including the Chicago to St. Louis line, from the bankruptcy court. On January 22, 1990, SPCSL and the BLE entered into an agreement to adopt the existing collective bargaining agreement between the CMW and the BLE. The agreement provided that the existing collective bargaining agreement would be applied to the SPCSL “except as provided for on Attachment B.”. Attachment B contained several amendments and supplements to the collective bargaining agreement. On October 4, 1990, SPCSL and the BLE agreed to some additional supplements and amendments to Attachment B.

In 1990, SPCSL and the other railroads entered into a trackage rights agreement with the Burlington Northern Railroad Company and the Norfolk & Western Railway Company. This agreement allows the railroads in this litigation use of the tracks between Kansas City, Missouri and Chicago, Illinois. The trackage rights agreement among the parties provides that only one of the railroads may operate over the tracks at a given time. Prior to acquisition of the trackage rights, the railroads here had never operated on the Kansas City to Chicago line. SPCSL was provided with initial use of the tracks.

As required by statute, SPCSL sought authorization from the Interstate Commerce Commission (ICC) to implement the trackage rights agreement. The trackage rights agreement fell within reach of the ICC’s expedited procedure for receiving approval of certain rail transactions. In early September 1990, the SPCSL sought a waiver from the BLE of the twenty-day notice requirement set forth in the labor protective conditions required under transactions controlled by the Interstate Commerce Act (ICA). SPCSL sought the waiver in order to proceed immediately under the trackage rights agreement. Jim McCoy, General Chairman of the BLE, responded by letter on September 6, 1990 and refused to agree to such a waiver. Mr. McCoy indicated that he understood that the ICC had not granted the SPCSL the trackage rights over the Kansas City to Chicago line, and the BLE would be “vehemently opposed to the granting of these trackage rights.” Mr. McCoy further stated the following:

In the event SPCSL acquires the track-age rights over Burlington Northern and Norfolk Southern Railroads between Kansas City, MO and Chicago, IL at a later date, it will be this General Committee of Adjustment’s position that the present SPCSL Operating Agreements must be updated to be comparable to the *403 National Schedule Operating Agreements, so that Engineers on the SPCSL will be paid no less than Engineers on any Class 1 railroad.

The trackage rights agreement was subsequently approved by the ICC. On September 27, 1990, Mr. McCoy served a Section 6 notice under the Railway Labor Act (RLA) upon C.R. Huntington, Director of Labor Relations for the SPCSL. The notice was an indication that the BLE believed that the trackage rights agreement entered into by the SPCSL constituted a unilateral change in the collective bargaining agreement between the parties. The Section 6 notice requested bargaining over the assignment of work among the employees of the BLE and the railroads who were parties to the trackage rights agreement. Mr. Huntington responded that bargaining under the RLA was not required. He stated that the preemptive jurisdiction of the ICC precluded mandatory bargaining under the RLA. He did indicate that the railroad was willing to negotiate an implementing agreement concerning the mandatory labor protective conditions required in exemption cases under the ICA.

On October 17, 1990, Mr. McCoy wrote Mr. Huntington to again suggest negotiations under Section 6 of the RLA. In support of his request, he stated:

That this new service will involve new rules and working conditions is obvious because the implementation of the Kansas City — Chicago service will involve establishment of a new home terminal at Quincy, IL and away terminals in Kansas City and Chicago. The establishment of such new terminals is clearly subject to collective bargaining under our Section 6 Notice and the RLA. Lest there be any misunderstanding on this point, please be advised that in negotiations concerning this Committee’s Section 6 Notice, this Committee will seek to negotiate with regard to the establishment of these new terminals. Once again we reiterate that the unilateral establishment of such terminals would violate Section 6 of the RLA.

The BLE then indicated that its members would strike if the railroads proceeded to implement the trackage rights agreements as proposed. Subsequently, after both the railroads and the BLE had filed actions in this court, the court held a hearing on the railroads’ motion for a temporary restraining order. The railroads sought to enjoin the BLE from engaging in the threatened strike. The court converted the railroads’ motion to one for preliminary injunction and denied the railroads’ motion.

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752 F. Supp. 400, 1990 U.S. Dist. LEXIS 16371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-pacific-transportation-co-v-international-brotherhood-of-ksd-1990.