An Appeal

To Reason

Special Norfolk Southern New York Dock Issue

Newsletter of the Pennsylvania Federation                                                August 2002

 

Major New York Dock Arbitration Victory Won By BMWE

Employees Collecting New York Dock Entitled to Payments Even When The Average Monthly Compensation (“Guarantee”) Is Exceeded By The Employee

Decision Is Calculated to Be Worth An Average Of $175.00 Per Month Per Employee For Employees Who Exceed Their Monthly Guarantee On Norfolk Southern

            The Pennsylvania Federation recently won a claim for one of our Norfolk Southern members regarding the calculation of test period hours that should have far reaching consequences for all of our members who are collecting New York Dock.  This will have a particular effect on Norfolk Southern’s campaign to work everyone as many hours as possible because of the high monthly displacement allowances that many of our members enjoy.  Norfolk Southern will now have to pay a penalty when working employees excessive hours when in the past they did not have to pay a penalty.      

            The award, by Referee Ed Benn, held that if a displaced employee did not earn his “monthly test period average compensation” (“AMC”) within his “monthly test period hours” (“AMH”) Norfolk Southern owed the employee the difference between his AMC and his actual earnings during the AMH, even if, the employee eventually worked more hours and earned more than his AMC during the month.

             In this situation the claimant had an AMC of $3,842.80 and an AMH of 202.86.  In December 1999 he earned $4,434.32 and worked 241.5 hours to obtain this amount.  Although he earned more than his AMC  for December 1999 the claimant calculated that by the time he worked his AMH of 202.86 he earned $192.78 less than his $3,842.80 AMC.  The arbitrator ruled that the claimant was also entitled to $192.78 shortfall he did not earn when he worked all of this AMH even though in that particular month he earned more money than his AMC by working more hours. 

            The arbitrator ruled as follows in this case:

“Because Claimant did not earn his average monthly compensation of $3,842.80 after working his 202.86 average monthly hours in December, 1999, as part of his displacement allowance and in addition to what he actually earned during that month, Claimant is entitled to the difference between $3,842.80 and what he actually earned upon working 202.86 hours during that month – in this case, $192.78.

            This award has the potential to increase the actual displacement allowances by all employees receiving New York Dock benefits.  What follows are some examples illustrating the principle of this award.  For all of the examples, consider employee John Doe has an AMC of $2000 and an AMH of 150 hours.

            Example 1:     John works 150 hours and earns $1700.  In that case, the Carrier owes John $300 in displacement allowance for the month.

            Example 2:     John works 130 hours and earns $2000.  The Carrier owes John nothing because he earned his AMC within his AMH.

            Example 3:     John earns $1900 in the first 150 hours worked in the month.  However, John works an additional 50 hours and earns $500 during that time for a total of $2400 earned working 200 hours.  The Carrier owes John $100 because he earned only $1900 within his AMH.  The earnings made after John worked 150 hours are his and cannot be used by the Carrier as an offset against his displacement allowance.

            This award will cause many of the monthly payments that were made on Norfolk Southern to be recalculated because this situation speaks directly to the wage cuts that were suffered as a result of the Norfolk Southern takeover of the Conrail property.  On the attached sheet is a form you can use to calculate what is owed to you if you did not earn your AMC by the time you worked your AMH in any given month.

Work Sheet Calculation

Norfolk Southern Now Paying Current Claims Where Employees Do Not Obtain Their Guarantee With Their Hours But Exceed Their Guarantee For The Month

Make Sure You Submit Your NYD Claim Even When You Exceed Your Monthly AMC (“Guarantee”)

            Norfolk Southern has programed their computers and are now able to automatically pay members who submit their claims for the loss when the AMC is not earned in the AMH but earned after the AMH is exceeded by the member.   Members  who exceed their monthly guarantee should now be able to submit their New York Dock claim in the usual way and obtain this additional payment.  Make sure that you submit your claims when you exceed your monthly guarantee to ensure that this payment is obtained.

BMWE and Norfolk Southern To Work Out Payment Method

 For Claims From June 1999 to July 2002

            BMWE and Norfolk Southern are in the process of attempting  to work out the method the claims will be handled for the payments that were not made back to June 1999. Information regarding how these claims are to be handled should be forthcoming in about six to eight weeks.  New York Dock covered members  who have claims of this nature should put their information in a safe place and wait until we have worked out the manner in which they will be handled.

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Pennsylvania Federation BMWE

121 North Broad Street - Suite 503

Philadelphia, PA   19107