United Transportation Union v. United States of America, Interstate Commerce Commission, Norfolk Southern Corporation, Illinois Central Railroad Company, Intervenors. United Transportation Union v. United States of America, Interstate Commerce Commission

905 F.2d 463
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 15, 1990
Docket89-1216
StatusPublished

This text of 905 F.2d 463 (United Transportation Union v. United States of America, Interstate Commerce Commission, Norfolk Southern Corporation, Illinois Central Railroad Company, Intervenors. United Transportation Union v. United States of America, Interstate Commerce Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Transportation Union v. United States of America, Interstate Commerce Commission, Norfolk Southern Corporation, Illinois Central Railroad Company, Intervenors. United Transportation Union v. United States of America, Interstate Commerce Commission, 905 F.2d 463 (D.C. Cir. 1990).

Opinion

905 F.2d 463

134 L.R.R.M. (BNA) 2511, 284 U.S.App.D.C. 358,
115 Lab.Cas. P 10,138

UNITED TRANSPORTATION UNION, Petitioner,
v.
UNITED STATES of America, Interstate Commerce Commission, Respondents,
Norfolk Southern Corporation, et al., Illinois Central
Railroad Company, Intervenors.
UNITED TRANSPORTATION UNION, Petitioner,
v.
UNITED STATES of America, Interstate Commerce Commission, Respondents.

Nos. 89-1216, 89-1662.

United States Court of Appeals,
District of Columbia Circuit.

Argued April 13, 1990.
Decided June 15, 1990.

Gordon P. MacDougall and William G. Mahoney, Washington, D.C., for petitioner in Nos. 89-1216 and 89-1662.

Laurence H. Schecker, Atty., I.C.C., with whom Robert S. Burk, Gen. Counsel, and Henri F. Rush, Deputy Gen. Counsel, I.C.C., Washington, D.C., were on the brief, for respondent I.C.C. Robert J. Wiggers, John J. Powers III and Andrea Limmer, Attys., U.S. Dept. of Justice, Washington, D.C., entered appearances, for respondent U.S.

Jeffrey S. Berlin, Washington, D.C., with whom W.P. Stallsmith, Jr., Atlanta, Ga., and R.J. Cooney, Norfolk, Va., for Norfolk Southern Corp. et al., Robert H. Wheeler and William C. Sippel, Chicago, Ill., for Illinois Central R. Co., were on the joint brief, for intervenors.

Before EDWARDS, SENTELLE and THOMAS, Circuit Judges.

Opinion for the Court filed by Circuit Judge HARRY T. EDWARDS.

HARRY T. EDWARDS, Circuit Judge:

This case presents challenges by the United Transportation Union ("UTU") to two orders of the Interstate Commerce Commission ("ICC" or "Commission"). One of the Commission's orders approved an agreement between Illinois Central Railroad ("Illinois Central") and Southern Railway Company ("Southern"), in which Southern acquired from Illinois Central a stretch of line and some trackage rights. The second Commission order rejected a claim that, under the applicable New York Dock labor-protective provisions, the Illinois Central employees who elected to go to work for Southern were entitled to carry with them all of the terms and benefits of the collective bargaining agreement between UTU and Illinois Central. On this latter point, the ICC upheld the judgment of an arbitrator, who ruled that the employees from Illinois Central who opted to work for Southern should be covered by the terms of the existing collective bargaining agreement between Southern and UTU, and not the separate collective bargaining agreement between Illinois Central and UTU.

The heart of the UTU's claim is that, under section 2 of the applicable New York Dock labor protective conditions, the Commission must ensure the continuation of the terms and benefits of existing collective bargaining agreements pursuant to railroad transactions of the sort at issue here. The ICC found no application for section 2 because the transaction between Southern and Illinois Central did not result in the abrogation of any rights under existing collective bargaining agreements. The transaction merely involved a purchase of assets, not a merger or an acquisition of an entire operation. As a consequence, both Southern and Illinois Central remained in existence as separate, independent and unaffiliated companies. In addition, the existing collective bargaining agreement between Illinois Central and UTU remained in force, as did the separate agreement between Southern and UTU. Thus, any employee who was affected by the transaction and who elected to stay in the employ of Illinois Central received labor protections plus the full benefits of the Illinois Central-UTU labor agreement; and any Illinois Central employee who opted, instead, to go to work for Southern received labor protections plus the full benefits of the Southern-UTU collective bargaining contract.

Under the foregoing circumstances, the ICC ruled that section 4, not section 2, of the New York Dock conditions applied. Under section 4, the railroads were required to give notice of their proposed transaction, negotiate with the employees' bargaining agents over labor protections, and then submit any unresolved issues to a neutral referee for final and binding arbitration. Because these conditions were met, and because the arbitrator's award was found to be fully consistent with the law, the Commission denied the UTU's challenges. We can find no basis to overturn the judgments of the Commission in this case. Accordingly, the petitions for review will be denied.

I. BACKGROUND

The principal facts in this case are fully summarized in the Commission's decision in Southern Ry. Co., et al.--Purchase-- Illinois Cent. R.R. Co., 5 I.C.C.2d 842 (1989) ("Arbitrator Affirmance Decision "), as follows:

On June 8, 1987, IC Industries (IC), the parent company of Illinois Central Gulf Railroad (ICG) issued a press release reporting that an agreement in principle had been reached for the sale of certain ICG lines and grant of trackage rights to Southern Railway Co. (Southern). In anticipation of acquiring and operating the IC lines and trackage rights at issue, officials of Southern and the UTU (representing certain employees of Southern) entered into an agreement on July 29, 1987 that modified their existing collective bargaining agreements. The agreement essentially specified the operating divisions to which the lines would be assigned, the number and type of crew members that would operate trains after the acquisition, the allowances that the crew members would receive, the applicability of Southern collective bargaining and schedule agreements to the line of railroad and trackage rights to be acquired, and several other matters. On July 30, 1987, Southern and [Norfolk Southern Corporation, the parent company of Southern] filed with [the Commission] their notice of intent to file an application seeking approval of the transactions, as required by 49 C.F.R. Sec. 1180.4(b). They concluded an agreement with IC on August 17, 1987, regarding the proposed line sale and grant of trackage rights and filed an application for approval of these transactions on October 30, 1987. Southern and IC gave notice of the proposed transaction to their affected employees on November 2, 1987. On November 19, 1987, representatives of Southern and IC met with UTU General Chairmen representing both Southern and IC employees in an attempt to negotiate an implementing agreement in anticipation of ICC approval of the transaction.

Failure to reach an implementing agreement led to the voluntary submission by all parties to an arbitration hearing on March 17, 1988, as required by Article I, Section 4 of the New York Dock ... labor protective conditions. During the arbitration process, UTU questioned the validity of the July 29 collective bargaining agreement. In addition, by petition filed March 28, 1988, UTU sought reopening of the record ... and a ruling that the arbitrator had jurisdiction over the July 29 agreement. In Southern & Norfolk, [Purchase Decision, Finance Docket No. 31088, rendered May 9, 1988, reprinted in Joint Appendix ("J.A.") 206], approving the transaction, [the Commission] denied the petition as premature.

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