Lead Opinion
The nation’s major railroads unite in this appeal to confront the union of rail mainte-naneé workers, the Brotherhood of Maintenance of Way Employees. The issue is the extent to'which the railroads must compensate their maintenance workers for travel expenses; the governing instrument is the collective bargaining agreement (the Agreement) of September 26, 1996. The union believes that the Agreement obliges the railroads to pay travel expenses for all “traveling employees.” The railroads counter that they need only pay travel expenses for employees in roving “regional and system gangs.”
For the most part, American labor law leaves the resolution of industrial- disputes to the parties’ own devices, subject to procedural safeguards of fairness.: But the legal milieu for railroads and airlines is different. A strike that halted traffic along these arteries of commerce could traumatize the nation’s economy. The specter of such labor unrest led Congress in 1926 to establish a two-track regime to govern the course of a dispute. Railway Labor Act (RLA or the Act), 44 Stat. 577, as amended, codified at 45 U.S.C. §§ 151-188; see Texas & N.O.R. Co. v. Brotherhood of Ry. & S.S. Clerks,
This dispute arose soon after the Agreement was concluded. The railroads insisted that they had no obligation to pay the travel expenses of employees beyond those in regional and system gangs. Within a month (October 24, 1996) the union had filed suit in the Central District of Illinois, requesting a declaration that the railroads had tried to amend the Agreement unilaterally, which is to say that the dispute was major. Four of the railroads counter-claimed, urging that the dispute was minor. (The District Court for the Western District of Virginia transferred a parallel proceeding brought by the remaining two railroads, Norfolk Southern Railway Co. and Norfolk and Western Railway Co-., and the, suits were consolidated.) The railroads sought a prehminary injunction against any strikes, work stoppages or pick
The case turns on a question of interpretation: to which sources may a court look in interpreting a collective bargaining agreement under the RLA? We hold that a court may refer to the official, formal bargaining history when it construes an agreement under the RLA We reverse.
I. History of the dispute over travel expenses
The controversy between the parties turns on two views of the classes of employees that are entitled to have their travel expenses reimbursed. The union takes the broader view — the Agreement encompasses all “traveling employees.” A “traveling employee” is one whose work travels and who does not report to a fixed headquarters. An employee who commutes long-distance daily to a particular fixed site does not fit in this group. From what we can glean from the record, there are two kinds of traveling employees: those attached to district gangs, and those associated with regional and system gangs. The district gangs work within just one of the geographical units into which the railroads divide their workers, the seniority districts. Regional and system gangs, on the other hand, may traverse two or more seniority districts in the course.of their work. Because the seniority districts can stretch over hundreds of miles, an employee from either a district gang or a regional and system gang may have to work a considerable distance from his or her home.
The history of the instant dispute reflects the unique legal setting of labor strife in the rail industry — a setting on which the disposition of this ease depends. Railroad maintenance by its very nature demands that workers travel. The union, however, has bitterly opposed the use of regional and system gangs, which tends to impose an extraordinary travel burden on the gang members. The railroads refused to give up the regional and system gangs, and in 1991, the conflict impeded a negotiated agreement. With a strike looming, President Bush invoked the RLA 45 U.S.C. § 160, to appoint Presidential Emergency Board No. 219 (PEB 219). PEB 219 investigated the discord and rejected the union’s proposal to eliminate the regional and system gangs. The union opted to strike, but Congress intervened and imposed PEB 219’s recommendations wholesale on the railroads and the union. Pub.L. No. 102-29,105 Stat. 169 (1991).
The 1991 agreement allowed for re-opening negotiations in November 1994. The issue of regional and system gangs got the limelight again as the union once more sought to cut them back. The contentious issue stalled agreement a second time. President Clinton appointed Presidential Emergency Board 229 (PEB 229), which issued its report on June 23, 1996 (PEB 229 Rep.). Perhaps spurred by the memory of Congress’ intervention in 1991, this time the railroads and the union averted a strike. With regard to travel expenses (the issue before us), the union and the railroads could not agree on implementing language. They chose instead to copy verbatim the pertinent recommendation of PEB 229 as Article XIV (Travel Allowance) of the Agreement.
II. Article XIV viewed alone
We turn then to Article XIV to see whether the dispute is major or minor. The distinction hinges on whether old rights are being enforced or new rights created. Elgin, J. & E. Ry. Co. v. Burley,
Were we to view Article XIV in a vacuum, we would conclude, as the district court did, that the railroads’ position is feeble. Article XIV has two substantive sections, each pulled from PEB 229’s report. The first section lays out a schedule of payments to workers based on distances traveled ($25 per 100 miles). The second provides the option of air transport for workers going more than 400 miles from their homes. Neither section defines which employees are to be covered. The first opens as follows:
At the beginning- of the work seasonf,] employees are required to travel from their homes to the initial reporting location, and at the end of the season they will return home. -This location could be hundreds of miles from their residences. During the work season the carriers’ service may place them hundreds of miles away from home at the end of each work week.
The second section is no more specific. The benefits for air travel, it states, accrue to “employees required to work over 400 miles from their residences.”
The union-says “employees” refers to all traveling employees (as defined above). The railroad says the term should be construed to cover only regional and system gangs. Either view is logically possible; neither is barred by the explicit terms of Article XIV. But while the term “employees” could refer solely to regional and system gangs, there is no hint in Article XIV that “employees” actually bears the narrower meaning. The railroads reply that Article XIV also gives a special allowance to employees “[a]t the start up and break up of a gang.” Again, the hitch for the railroads is that the word “gang” could refer just to regional and system gangs, or to both district gangs and regional and system gangs. The railroads propose a theoretically plausible distinction, but one that has no basis in the text. We would hold the railroads’ view “frivolous or obviously insubstantial” and affirm the district court— if-the act of interpretation were to stop at the four corners of the Agreement.
III. Bargaining history: the Presidential Emergency Boards
So the railroads’ position would be frivolous, if we could not incorporate sources of meaning beyond the Agreement itself. But we can; in fact, we must. The Supreme Court long ago ruled that courts should interpret collective bargaining agreements with a keen eye for the nuances of context. “A collective bargaining agreement is not an ordinary contract for the purchase of goods and services, nor is it governed by the same old common-law concepts which control such private- contracts.” Transportation-Communication Employees Union v. Union Pac. R.R. Co.,
The notion of a “meeting of the minds” breaks down still further under the Railway Labor Act. The RLA takes as its “primary goal” “to settle strikes and avoid interruptions to commerce.” Burlington Northern R.R. Co. v. Brotherhood of Maintenance of Way Employes,
The railroads and the union did not negotiate Article XIV in a vacuum, and we will not act as if they had. For collective bargaining agreements under the RLA, we must look beyond the document itself. We must took to the parties’ “practice, usage and custom.” Union Pac. R.R. Co.,
Here the railroads point to a single slice of the bargaining history, the hearings and report of Presidential Emergency Board
In a moment we will consider what this extrinsic evidence reveals; but first we must explain why we cannot adopt the railroads’ rationale for consulting it. The issue before us is whether the tussle .over travel allowances is a major or minor dispute. The railroads say that the way to resolve this question is to ask what an arbitrator might do. If an arbitrator might rule for the railroads, then that’s it — the dispute is minor and it must go to arbitration. That a court should put on an arbitrator’s hat has some intuitive appeal. The content of . an agreement depends as a practical matter on who is going to interpret it and how she will do so. If an agreement’s drafters know that arbitrators will likely interpret things in way X (say, by looking at bargaining history) and not way Y, then that knowledge will inform what the drafters set down on paper and how they expect it to be seen.
Yet mimicking arbitrators is not what Congress commanded us to do. • Congress committed the classification' of RLA disputes to federal judges, not to arbitrators; and we have no warrant to cede that commission de facto. Nowhere do we find a suggestion by Congress or the Supreme Court (or the inferior courts, for that matter) endorsing the railroads’ proposal. This absence is telling, for the initial charm of the railroads’ position dissolves on further inspection. The rulings of arbitrators are subject to judicial review of an especially narrow kind. Brotherhood of Locomotive Engineers v. Atchison, Topeka & Santa Fe Ry. Co.,
But even if for the wrong reasons, the railroads are right: the district court should have examined the bargaining history of PEB 229. That history comprises the Presidential Emergency Board’s report and the parties’ written and oral submissions. There the railroads claim to find proof positive that when the PEB drafted the future Article XIV, the Board thought that the union’s overarching concern was regional and system gangs. With this we readily agree. When PEB 229 pronounced its understanding of the union’s general contentions, it explicitly linked the issue of travel allowances to regional and system gangs, not all traveling employees. See JA-0362. The PEB also explained the union’s specific proposal on travel allowances in terms of regional and system gangs.
From this the railroads would have us infer that the PEB’s recommendation .about travel allowances referred strictly to regional and system gangs. This one is harder to swallow. The PEB’s recommendation is, of course, silent on this point. The railroads’ submissions to the PEB themselves do not support their case: they sometimes speak in the broad language the unions urge today, as if allowances for all traveling employees were at stake. JA-0661-63; 0673-78; 0714; 0726-27. The union’s brief to the PEB on “Expenses Away from Home” seems to encompass all traveling employees on the issue of travel allowances, albeit with some ambiguity. JA-0411, 0414. But see JA-0444.
That the PEB’s recommendations, as swept into Article XIV of the Agreement, referred to all traveling employees (and not just regional and system gangs) seems to us plausible, maybe even probable. For the union to prevail under the RLA, however, the evidence must do more than tilt; it must slide into a heap on one side. Railway Labor Executives Ass’n v. Norfolk and W. Ry. Co.,
Notes
. The dissent presents thoughtful policy arguments against considering any extrinsic evidence when the plain language of an agreement seems clear. But the Rubicon has been crossed by the Third Circuit in SEPTA. See generally SEPTA,
. The dissent observes that."[t]he recommendations regarding travel allowances and those re
Dissenting Opinion
dissenting.
No one would say that the distinction between major disputes and minor disputes created by the Railway Labor Act (RLA), 45 U.S.C.- § 151 ét seq., is easy to draw, even after the Supreme Court’s effort to provide guidance in Consolidated Rail Gorp. v. Railway Labor Executives’ Ass’n,
As the majority rightly notes, this case turns, on the principles of interpretation we apply to the task of characterizing the dispute,as major or minor. The Supreme Court explained the difference between the.two in Elgin, Joliet & Eastern Railway Co. v. Burley,
[The major dispute category] relates to disputes over the formation of collective agreements or efforts to secure them. They arise where there is no such agreement or where it is sought to change the terms of one, and therefore the issue is not whether an existing agreement controls the controversy. They look to the acquisition of rights for the future, not to assertion of rights claimed to have vested in the past.
[The minor dispute category] contemplates the existence of a collective agreement already concluded or, at any rate, a situation in which no effort is made to.bring about a formal change in terms or to create a new one. The dispute relates either to the meaning or proper application of a particular provision with reference to a specific situation or to an omitted case.
Id. at 723,
I agree entirely with the majority’s reasons why a court charged with deciding whether a dispute is major or minor should not attempt to put itself in the position of a potential arbitrator. See Majority Op. at 642. To what, however, may we look to decide whether the Railroads’ position on the agreement is “arguably justified”? The answer turns in large part on our understanding of the Supreme Court’s decisions in United Steelworkers of America v. Warrior & Gulf Navigation Co.,
[i]n order to interpret such an agreement it is necessary to consider the scope of other related collective bargaining agreements, as well as the practice, usage and custom pertaining to all such agreements.
Id. at 161,
This court, sitting en banc, has already had occasion to speak to this issue in the closely related situation of collective bargaining agreements governed by the National Labor Relations Act. See Bidlack v. Wheelabrator Corp.,
[T]here must be either contractual language on which to hang the label of ambiguous or some yawning void, as in [Wood v.] Duff-Cordon [
Id. at 608 (opinion of Posner, J.); see also id. at 616 (opinion of Easterbrook, J.) (“[Ejxtrin-sic evidence cannot create an ambiguity in otherwise clear documents.”); Johnson v. Georgia-Pacific Corp.,
That type of risk is precisely why I disagree with the majority’s approach here. After reviewing the agreement, the majority concludes that the Railroads’ view is frivolous or obviously insubstantial if one looks only at the agreement’s four corners. Majority Op. at .640. So far, so good. Both the language of Article XIV of the agreement, which deals with the subject of travel allowances, and the agreement taken as a whole, support this conclusion. Article XIV makes no distinction between employees who travel with a “district gang” and those who travel with a “regional and system” gang. Either type of gang can travel considerable distances, as the majority notes and as the record amply demonstrates. See Majority Op. at 639. Article XIV sets forth a minimum travel allowance that increases depending on the round-trip distances traveled by the gang, which basically gives an allowance of $25 for each 100 miles traveled after the first 100. Literally two pages later, the agreement turns to the subject of “production gangs,” in Article XVI. In contrast to Article XIV, Article XVI contains language specifically addressing the issue of the regional or system-wide gangs. Thus, as we all agree, it is practically impossible in the face of this language to conclude that the Article XIV travel allowances are payable only to members of regional and system gangs, rather than to all employees who travel the prescribed distances.
Despite recognizing this textual clarity, the majority turns to the bargaining history of the collective bargaining agreement, which is reflected to a considerable degree in the submissions the parties made before the Presidential Emergency Boards (PEBs) that developed the language eventually incorporated in the agreement. In so doing, the court confusingly seems to draw a line between acceptable extrinsic evidence (i.e., the PEB submissions) and unacceptable extrinsic
Although I would not resort to the PEBs or other extrinsic evidence in the absence of a finding of some ambiguity or vagueness in the agreement, see Bidlack,
At the beginning of the work season employees are required to travel from their homes to the initial reporting location,- and at the end of the season they will return home. This location could be hundreds of miles from their- residences. During the work season the Carriers’ service may place them hundred of miles away from home at the end of each work week. Accordingly, the Carriers will pay each -employee a minimum travel allowance as follows for all miles actually traveled by the most direct highway route for each round trip[.]
Both parties agree that many employees other than those in the regional and system gangs are required to travel great distances.
In the end, the slender reed on which the Railroads have pinned their hopes is evidence tending to show that the union negotiators made it clear to the PEBs that their primary concern was with members of the regional and system gangs. Even if we believed this was true, however, it in no way indicates that the negotiators were disclaiming an interest in the other employees who needed to travel.. It is not unusual in negotiations to point to one’s strongest example of a problem, while at the same time seeking language that would cover a broader constituency. I am therefore unconvinced even looking to the PEB evidence that the Railroads have found anything to make “arguably justified” their reading of Article XIV as providing travel allowances only for regional and system gang members.
I would expect employers always to argue that they are “interpreting” an agreement rather than trying to change its terms, so that they would receive the considerable benefits that attend characterization as a minor dispute. It is the court’s responsibility, however, to draw the line between interpretation and change. That task in turn requires the court first to decide what the agreement covers and what it does not. If every word in the English language required interpretation with the use of extrinsic evidence, the distinction between interpreting an agreement and changing it would vanish. I am not so pessimistic about the ability of words to convey meaning, nor do I think the “plain meaning” concept plays no role whatsoever in the context of collective bargaining agreements.. On this record, I agree with the district court that the Railroads are trying to obtain a new and materially different travel allowance article in the agreement — one that will provide allowances only for the regional and system gang members rather than the
