SHP - 8




(the "Company")



(the "Union")



SOLE REFEREE: J. F. W. Weatherill



J. H. Clarke



J. H. Clarke









A hearing in this matter was held in Montreal on October 13, 1972.


AWARD OF THE referee

This is a claim brought on behalf of some 30 employees who transferred from Drake Street Yard, Vancouver, to Coquitlam Yard, Port Coquitlam, British Columbia, commencing on or about October 17, 1967. The claim is for payment of the $25.00 per month allowance provided for in article VII, clause 7 of the job security agreement. Such payments were to be effective February 1, 1969.

In June, 1967, the Company served notice on the various Unions involved of its intention to transfer certain facilities from Drake Street Yard to Coquitlam Yard on a progressive basis starting on or about October 17, 1967. This notice was given pursuant to Article VIII of the master agreement of August 15, 1967, the material portions of which are as follows:

Article VIII – Technological, Operational or Organizational Changes

1. Effective August 15, 1967, it is agreed between the parties that on the introduction by the Company of the technological, operational and/or organizational changes the following provisions will apply:

(a) the Company will not put into effect any such change which is likely to be of a permanent nature and which may effect a material change in working conditions with adverse effects on employees covered by this agreement without giving as much advance notice as possible of any such proposed change to the Unions concerned and, in any event not less than 90 days if a relocation of employees is involved and 60 days’ notice in other cases with a full description thereof and with appropriate details as to the consequent changes in working conditions and the number of employees who would be adversely affected;

(b) that it will negotiate with the affected Union, or Unions, signatory hereto, measures to minimize the adverse effects of the proposed change on employees, which measures may, for example, be with respect to severance, loss of wages, expenses of moving and travelling of employees required to relocate, retraining and the merging of seniority lists within a craft and/or such other measures as may be appropriate in the circumstances.

Negotiations were held pursuant to the notice and a memorandum of agreement was signed on October 4, 1967. The terms of this memorandum may be set out in full.

1. It is agreed that effective October 16th, 1967 the Company will provide bus transportation at no cost to the employees for such Carmen, Carmen Helpers, Pipefitters, Sheet Metal Workers, Electricians ad Painters who are transferred by the Company from Drake Street Yard to Coquitlam Yard.

2. The bus transportation referred to will commence at Drake Street with intermediate stops enroute as mutually agreed to and will be based on one return trip daily for each of three shifts in a 25 hour period.

3. It is further agreed that the Company will provide bus transportation daily up to and including March 31st, 1969, only. However, during the interim period of the effectiveness of this agreement between October 16th, 1967 and March 31st, 1969, the parties will periodically make a joint check on the necessity of such transportation and if by mutual agreement it is found unnecessary, it will be discontinued before the termination date of March 31st, 1969.

4. The Company will continue to provide free parking space on the Company’s property at Drake Street for those employees who are transferred from Drake Street Yard to Coquitlam Yard until March 31st, 1969, or on the same date that the bus service is terminated if it is terminated before March 31st, 1969.

5. In respect of the employees referred to herein, this Memorandum of Agreement discharges in full the obligations of the Company under the provisions of Article VIII of the Master Agreement between the Railway Association of Canada and the Railway Employees’ Department, Division No. 4, AFofL–CIO representing the Railways and the employees respectively.

6. Dated at Vancouver, October 4th, 1967.

The Company provided bus transportation pursuant to this agreement until March 31, 1969. It will be noted that the agreement by its terms discharged in full the obligations of the Company under the provisions of Article VIII of the master agreement.

On January 27, 1969, more than a year after the transfer in question had taken place and while the memorandum of agreement was still in effect, a letter of understanding was signed between the parties, the material provisions of which were as follow:

It is agreed, consequent upon the execution by the parties of the Job Security Supplemental Agreement effective February 1, 1969 the provisions of any agreement reached between the parties pursuant to Article VII or Article VIII of the respective Master Agreements referred to are hereby rescinded effective February 1, 1969, except that:

(a) the provisions contained in any agreement consummated between the parties prior to February 1, 1969 which concerns matters which are not provided for in the aforesaid Job Security Agreement of February 1, 1969 shall continue to apply;

It will be noted that this letter of understanding referred to a job security supplemental agreement effective February 1, 1969, which was in effect a revision of the job security agreement under which notice had been given to the employees in question here and pursuant to which the memorandum of agreement of October 4, 1967, had been made. It is the Union’s position that the letter of January 27, 1969 had the effect, among other things, of rescinding the memorandum of agreement dated October 4, 1967. Under clause (a) of the letter of January 27, 1969, however, an exception is made for agreements which concern matters which are not provided for in the job security agreement of February 1, 1969. The provision of bus service is such a matter. Thus, the provisions of the memorandum of agreement of October 4, 1967, came within the exception set out in clause (a) of the letter of understanding of January 27, 1969 and so continued to apply. In fact, as has been noted, bus service was provided until March 31, 1969. There was no complaint about that and indeed the Union sought to have such service provided even after the agreement had expired.

It will be seen that the Company complied with the agreement of October 4, 1967; that agreement was not rescinded by the letter of January 27, 1969; and the agreement which was complied with discharged in full the obligations of the Company under the master agreement. It is my conclusion that the claim of the employees in the instant case is not well founded.

Even if it be assumed, however, that the job security agreement which became effective February 1, 1969 applied in the case of the transfer in question, it is noteworthy that by the very terms of the article on which the Union relies, no payment could be made. The claim, it will be remembered, is made under Article VII, clause 7 of the agreement effective February 1, 1969. That clause provides for a monthly allowance payable in certain cases "for a maximum of 12 months from date of transfer to his new location". The claims in the instant case were made well after that maximum period had expired. In any event, therefore, the claims could not succeed.

For all of the foregoing reasons, the claims must be disallowed.

DATED this 26th Day of October, 1972.

(signed) J. F. W. Weatherill