Opinion for the court filed by Circuit Judge BUCKLEY.
The American Train Dispatchers Association (“Union”), a union of railroad employees, petitions for review of an order of the Interstate Commerce Commission exempting CSX Transportation, Inc. (“CSXT”) from provisions of the collective bargaining agreement (“CBA”) between the Union and CSXT. Under its authority to oversee railway consolidations, the ICC granted the exemption as a follow-up to its 1980 approval of CSXT’s acquisition of several railroads. The exemption allows CSXT to transfer train dispatching work performed by four employees at its Corbin, Kentucky, property to its facility in Jacksonville, Florida, where non-union management employees will absorb the work. The Union claims that the four union employees were entitled to follow their jobs to Jacksonville and that the work transfer was unnecessary and beyond the scope of the 1980 approval of CSXT’s acquisitions.
We affirm the ICC’s decision but rely on different grounds. The ICC failed to inquire whether the work transfer deprives the four employees of any “rights,” “privileges,” or “benefits” in the CBA, an inquiry required by our recent decision in
Railway Labor Executives’ Ass’n v. United States,
I. BACKGROUND
A. Statutory Scheme
The railroad industry emerged from World War I in a precarious condition.
Norfolk & Western Ry. Co. v. Am. Train Dispatchers,
ICC approval of a consolidation frees railroad companies from various legal constraints. In particular, section 11341(a) of the ICA provides, in pertinent part:
A carrier, corporation, or person participating in that approved or exempted transaction is exempt from the antitrust laws and from all other law, including State and municipal law, as necessary to let that person carry out the transaction, hold, maintain, and operate property, and exercise control or [sic] franchises acquired through the transaction.
49 U.S.C. § 11341(a) (emphasis added). In
Norfolk & Western,
the Court held that “the term ‘all other law5 in § 11341(a) includes any obstacle imposed by law,” including “the substantive and remedial laws respecting enforcement of collective-bargaining agreements.”
Section 11347 is intended to insulate railroad workers from the jolts of the corporate restructuring sanctioned by the ICC. It provides:
When a rail carrier is involved in a transaction for which approval is sought ... the [ICC] shall require the carrier to provide a fair arrangement at least as protective of the interest of employees who are affected by the transaction as the terms imposed under this section before February 5,1976, and the terms established under section 405 of the Rail Passenger Service Act (45 U.S.C. [§] 565).
49 U.S.C.-§ 11347. This provision incorporates by reference two sets of standards. The first is “the terms imposed under this section before February 5, 1976.” Before that date, the Washington Job Protection Agreement of 1936 (“WJPA”) governed labor-management negotiations over workers’ rights in railway consolidations.
CSX
*1160
Corp.
—Control—Chessie
Sys., Inc. and Seaboard Coast Line Indus., Inc.,
We went on to note, however, that the second set of standards incorporated by reference in section 11347, section 405 of the. Rail Passenger Service Act, limits the power to override CBAs. Id. at 813-14. Section 405 provides, in pertinent part:
(a) A railroad shall provide fair and equitable arrangements to protect the interests of employees....
(b) Such protective arrangements shall include ... such provisions as may be necessary for ... the preservation of rights, privileges, and benefits ... to such employees under existing collective-bargaining agreements....
45 U.S.C. § 565(a), (b) (emphasis added). Construing this language, we commented:
The statute clearly mandates that “rights, privileges, and benefits” afforded employees under existing CBAs be preserved. Unless, however, every word of every CBA were thought to establish a right, privilege, or benefit for labor — an obviously absurd proposition — § 565 (and hence § 11347) does seem to contemplate that the ICC may modify a CBA.
Executives,
To implement section 11347, the ICC has devised a package of arbitration procedures and employee benefits, known as the
New York Dock
conditions,
see New York Dock Ry.
—Control—Brooklyn
E. Dist. Terminal,
In addition, section 4 of the conditions provides, in pertinent part:
Each transaction which may result in a dismissal or displacement of employees or rearrangement of forces, shall provide for the selection of forces from all employees involved on a basis accepted as appropriate for application in the particular case and any assignment of employees made necessary by the transaction shall be made on the basis of an agreement or decision under this section 4. If at the end of thirty (30) days there is a failure to agree, either party to the dispute may submit it [to arbitration].
B. Factual and Procedural History
In 1980, the ICC approved the first of a series of mergers and acquisitions that enabled CSXT to expand its rail capacity.
See CSX Corp.
—Control—Chessie
Sys., Inc. and Seaboard Coast Line Indus., Inc.,
In 1987, CSXT proposed to centralize all train dispatching activities for locomotives, known as “power distribution,” at its property in Jacksonville, Florida. On January 9, 1988, CSXT and the Union agreed on the details for shifting dispatching operations from Corbin to Jacksonville. In accordance with New York Dock, the agreement provided for compensation and other benefits for the affected Corbin employees.
The agreement, however, did not cover four employees who held the rank of “Assistant ChiefiPower.” The CBA’s “scope” provision defined the duties of these four employees to include
the movement of trains on a Division or other assigned territory, involving the su *1161 pervision of train dispatchers and other similar employees; to supervise the handling of trains and the distribution of power and equipment incident thereto; and to perform related work.
Petitioner’s Appendix at 13. In the railroad industry, “scope provisions ... commonly are regarded as defining jurisdiction and job ‘ownership’ which prohibit the transfer of work from employees under one agreement to employees — even in the same craft — under another rules agreement.”
Southern Ry. Sys. and Am. Ry. Supervisors Ass’n,
WJPA Docket No. 141 (1966),
quoted in CSX Corp.
—Control—Chessie
Sys., Inc., and Seaboard Coast Line Indus., Inc.,
On February 12, 1988, CSXT notified the Union that it would abolish the four Assistant Chief/Power positions and that non-union, management personnel in Jacksonville would assume the dispatching work. The Union objected and claimed that the CBA entitled the four employees to follow their jobs to Jacksonville. Pursuant to section 4 of New York Dock, the parties submitted their dispute to arbitration.
The arbitrator approved CSXT’s transfer of the dispatching work of the four Assistant Chiefs/Power to Jacksonville and ruled that the four employees were limited to the same New York Dock benefits that the other Cor-bin dispatchers had received. On September 15, 1989, the ICC affirmed. CSX Corp.—Control —Chessie Sys., Inc. and Seaboard Coast Line Indus., Inc., Finance Docket No. 28905 (Sub-No. 23).
The ICC rejected the Union’s argument that the arbitrator lacked the power to modify the CBA between the Union and CSXT in order to permit the work transfer. Id. at 4. Relying implicitly on its authority to fashion labor-protective conditions under section 11347, the ICC asserted that the history of arbitration under New York Dock and its precursor, the WJPA, showed that arbitrators could override CBA provisions to the extent necessary to allow the rail company to carry out an approved transaction. Id. at 5-6.
The Union petitioned for review in this court; but before briefing, the Supreme Court handed down the Norfolk & Western decision, which ruled that section 11341(a) empowers the ICC to override CBA provisions. Because the Norfolk & Western Court reserved several questions, including whether section 11347 limited the ICC’s override authority, we remanded the petition, along with three other cases, to let the ICC address the issues remaining after the Supreme Court’s decision.
The three other cases, in which public comments have been solicited, are still before the ICC.
See CSX Corp.
—Control-Chessie
Sys., Inc. and Seaboard Coast Line Indus., Inc.,
While the arbitrator ruled against the union, he did not specify whether he was doing so because: (1) there was no impediment preventing the transfer of work or (2) there was an existing impediment (due to an existing contract or the [Railway Labor Act] or both) but that it was necessary to override the obstacle(s).... We will assume that either the existing contract or the RLA or both, would have barred the transfer unless some other provision of law overrode the barrier(s).
In light of [Norfolk & Western], there is no longer any dispute that under § 11341(a) the Commission may exempt approved transactions from certain laws, such as the RLA and collective bargaining agreements ... that would prevent the transactions from being carried out.
Id. at 720.
II. Discussion
We must first dispose of a motion to intervene in support of the petition to review filed *1162 by the Railway Labor Executives’ Association (“RLEA”), a voluntary, unincorporated association of the chief executive officers of the major rail labor unions. CSXT urges us to deny the motion because RLEA did not participate in the proceeding before the ICC. The statute that governs our review of ICC orders provides, in pertinent part:
The agency, and any party in interest in the proceeding before the agency whose interests will be affected if an order of the agency is or is not enjoined, set aside, or suspended, may appear as parties thereto of their own motion and as of right.... Communities, associations, corporations, firms, and individuals, whose interests are affected by the order of the agency, may intervene in any proceeding to review the order.
28 U.S.C. § 2348 (1988). This provision, which was enacted in 1966, Pub.L. No. 89-554, 80 Stat. 623 (1966), is virtually identical to its predecessor in the Judicial Review Act of 1950.
We construed the predecessor provision in
Montship Lines, Ltd. v. Fed. Maritime Bd.,
CSXT also contends that RLEA lacks Article III standing to intervene. We need not address this argument because RLEA raises the same issues as the Union, which plainly has standing to champion the interests of the four Corbin employees, who are all Union members.
See Hunt v. Washington Apple Advertising Comm’n,
Turning to the merits, we confront the issue reserved by the Supreme Court in
Norfolk & Western:
What restraints, if any, does section 11347 impose on the ICC’s authority under section 11341(a) to override CBA provisions? In
Executives,
we held that section 11347 shields those CBA provisions that create “rights, privileges, and benefits” from the ICC’s override power. Although section 11341(a) did not apply to the transaction before us in that case — a lease of rail lines and trackage rights — ,
In
Executives,
we remanded to let the ICC define the “rights, privileges, and benefits” language of section 405 of the Rail Passenger Service Act and determine if the CBA provisions involved in that case — rates of pay, rules, and working conditions — came under the protection of that statutory rubric.
Unlike the
Executives
court, however, we need not remand because it is clear that the work transfer infringes no “rights, privileges, [or] benefits” in the CBA. A remand is unnecessary where, as here, the outcome of a new administrative proceeding is preordained.
See NLRB v. Wyman-Gordon,
At oral argument, the Union’s counsel conceded that New York Dock empowers arbitrators to override scope provisions in CBAs; by implication, he admitted that the scope clause assigning power distribution work at Corbin to the Assistant Chiefs/Power did not create any “rights, privileges [or] benefits.” He insisted, however, that the arbitrator exceeded his authority by stripping the employees of a contractual “right” to bid on the work in Jacksonville.
But in a brief filed after oral argument, CSXT denied that the four employees had a right under the CBA to bid on vacant positions in Jacksonville and asserted that the only CBA provision overridden by the arbitrator was the scope clause. Although the Union filed a brief responding to CSXT’s post-argument submission, it does not challenge these statements. Instead, the Union argues that section 4 of the
New York Dock
conditions entitles the four employees to follow their work to Jacksonville. Section 4 requires that “[e]ach transaction which may result in a dismissal or displacement of employees ... provide for the selection of forces from all employees involved on a basis accepted as appropriate for application in the particular case_”
We disagree. Section 4 does not provide a formula for apportioning the “selection of forces.” Instead; it frees the hand of the arbitrator to fashion a solution that is “appropriate for application in the particular case.” In this case, existing management employees will absorb the transferred work; CSXT does not need additional workers. We thus cannot say that the arbitrator abused his discretion by selecting forces solely from Jacksonville.
See, Chicago & North Western Transp. Co.
—Abandonment,
We turn next to the ICC’s application of section ■ 11341(a). Section 11341(a) exempts “approved ... transaction^] ... from the antitrust laws and from all other law ... as necessary to let [the railway] carry out the transaction.” 49 U.S.C. § 11341(a). In
Norfolk & Western,
the Supreme Court reserved
*1164
the questions whether the action challenged in that case — the carrier’s proposed consolidation of locomotive dispatching functions in the wake of an acquisition approved by the ICC — was “necessary” to implement the acquisition and whether it was part of the original “approved transaction.”
Continuing where
Norfolk & Western
left off, the ICC in its 1992 decision focused on the “necessity” and “approved transaction” predicates of section 11341(a). It decided that “the ‘necessity’ predicate is satisfied by a finding that some ‘law1 (whether antitrust, [the Railway Labor Act], or a collective bargaining agreement formed pursuant to the [Railway Labor Act]) is an impediment to the approved transaction.”
CSX
Corp.—
Control
—Chessie
Sys., Inc., and Seaboard Coast Line Indus., Inc.,
In its opening salvo against these findings, the Union contends that the ICC lacks jurisdiction to determine whether a transaction is “necessary” or whether it is incident to the original “approved transaction.” The Union’s only real ammunition, however, is a single sentence in a footnote in Justice Stevens’ concurrence in
Interstate Commerce Comm’n v. Bhd. of Locomotive Eng’rs,
This sentence is somewhat ambiguous because Justice Stevens also notes that “[a]ny tribunal that is faced with a claim that a party is violating some ‘other law’ has the responsibility of determining whether an exemption is ‘necessary ...,’”
id.
at 300 n. 13,
In any event, we made clear in
Railway Labor Executives’ Ass’n v. ICC,
The Union next attacks the ICC’s necessity finding on the merits, arguing that the four Corbin employees were capable of performing the work in Jacksonville and that there was thus no need to give it to nonunion employees. The argument misapprehends the standard for necessity. In
Executives,
we held that to satisfy the “necessity” predicate for overriding a CBA, the ICC must find that the underlying transaction yields a transportation benefit to the public, “not merely [a] transfer [of] wealth from employees to their employer.”
Technically,
Executives
articulated the necessity standard for section 11347 rather than section 11341(a), which did not apply in
*1165
that case. Both provisions apply here, however, and because section 11347 “on its face provides more, not less, generous labor protection than does § 11341(a),”
In light of
Executives,
the ICC’s assertion in its 1992 decision that “the ‘necessity1 predicate is satisfied” whenever a CBA is “an impediment” to a transaction clearly misstates the necessity standard. Nonetheless, the record reveals transportation benefits from CSXT’s proposed work consolidation sufficient to pass the
Executives
test; thus a remand is unnecessary.
See Wyman-Gordon,
Finally, the Union assails the ICC’s ruling that the work transfer was incident to the “approved transaction” — CSXT’s 1980 acquisitions — under section 11341(a). The Union contends that the ICC’s definition of “approved transaction” is overbroad and that the Commission never envisioned a transfer of work from union to non-union employees when it approved CSXT’s acquisitions in 1980.
We find reasonable the ICC’s view that the section 11341(a) exemption for “approved ... transaetion[s]” extends to subsidiary transactions that fulfill the purposes of the main control transaction.
See Chevron U.S.A. Inc. v. Natural Resources Defense Council,
Moreover, the ICC’s 1980 approval of CSXT’s acquisitions contemplated the possibility of future worker dislocations: “It is certainly possible that as .the two systems mesh their operations, additional coordina-tions may occur that could lead to further employee displacements.”
CSX Corp
.—Con
trol
—Chessie
Sys., Inc., and Seaboard Coast Line Indus., Inc.,
We have no reason to believe that the work transfer in this case is anything but one of the “additional coordinations” the ICC had in mind. Indeed, as the ICC’s 1992 decision notes, “coordination of locomotive power is precisely the type of action that might reasonably be expected to flow from the [1980] control transaction,”
CSX Corp.
—Control—
Chessie Sys., Inc., and Seaboard Coast Line Indus., Inc.,
III. CoNClusion
Although Executives has superseded some of the language in the ICC’s decision, we deny the petition for review because the ICC clearly had the authority to approve the work transfer and because the transfer was necessary and incident to CSXT’s 1980 acquisitions.
So ordered.
