Congress enacted the Railway Labor Act (the “RLA”) in 1926 to bring stability to the fractious world of labor-management relations in the railroad industry. That stability has largely been achieved because of procedures that replace unilateral actions by management and crippling strikes by labor with mandatory bargaining in cases where relations between the parties change. It is not always clear, however, what sorts of changes in carrier-union relations require appropriate bargaining. Today, we are asked to decide whether a sale by a railroad of some of its tracks to another carrier is a change in the “rates of pay, rules, or working conditions” of union workers employed on those tracks according to Section 6 of the RLA, 45 U.S.C. § 156 (1982) (“§ 6”). If it is, then a railroad like appellant CSX Transportation (“CSX”) cannot sell its track until it has agreed with unions like appellee United Transportation Union (“UTU”) on new arrangements for employees affected by the sale. If it is not, then the railroad may sell without bargaining beforehand. We join all other .circuits to have considered the question in holding that such sales are not changes in salaries, rules or job conditions, but rather are matters of management prerogative that may proceed without previous § 6 bargaining.
BACKGROUND
We are no strangers to the dispute between CSX and UTU, having decided an earlier question between the parties in
CSX Transportation, Inc. v. United Transportation Union,
Appellant CSX owns and operates over 21,000 miles of railroad tracks in the U.S. and Canada. As such, it is subject to the RLA. Likewise, appellees are labor organizations and their officers who are “representatives” under that statute.
See
45 U.S.C. § 151 First, Sixth (1982). During the late summer of 1987, CSX sought to sell 369 miles of its railroad lines between Buffalo, New York and Eidenau, Pennsylvania to the Buffalo and Pittsburgh Railroad (“B & P”) because decreased traffic on the route had shrunk CSX’s profits.
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The proposed sale agreement obligated B & P to retain 160 of the 226 CSX employees on the line, but B & P was free to reach new labor agreements with retained employees. Several unions representing CSX workers responded to the proposed sale by serving notices on the railroad pursuant to § 6, hoping to change their “agreements affecting rates of pay, rules or working conditions.” After a union or a carrier gives § 6 notice of an intended change in their agreement to the other, that provision, as noted above, commands that “rates of pay, rules or working conditions shall not be altered by the carrier until the controversy has finally been acted upon.” The union cannot strike during this period, either.
Detroit & Toledo Shore Line Railroad Co. v. Transportation Union
By the end of October, 1987, the dispute between CSX and UTU was before the United States District Court for the Western District of New York, after removal from New York State Supreme Court and certain actions by the Interstate Commerce Commission.
See CSX I,
On May 26, 1988, the district court ruled.
Decker v. CSX Transportation, Inc.,
UTU appealed the court’s decision in Decker. While that appeal was pending, the parties established Special Board of Adjustment No. 1018 (the “board”) to decide their minor dispute. The board found on December 15, 1988 that, because the agreement between CSX and the unions and past practice were silent on the question, CSX was not contractually authorized to sell lines without first bargaining over additional protections for displaced workers. Award dated December 15, 1988 at 18-20. But since the agreement did not forbid CSX’s actions either, the board could conclude only that the unions had not contractually waived whatever rights to pre-sale bargaining they might have had under the RLA. Award at 21. The question then became: what are those RLA rights? As that statutory issue is beyond arbitral, contractual jurisdiction, the “award” contained no remedy.
On June 7, 1989, we issued
CSX I,
our opinion in UTU’s appeal of
Decker.
There we affirmed
Decker’s
finding that the CSX-UTU dispute was a minor one, and denied UTU’s motion, argued on grounds that the board’s decision somehow vitiated the court’s preceding decision that the dispute was minor, to vacate
Decker.
We found no “conflict between the district court’s conclusion that CSX’s position was ‘plausible,’ and the Board’s conclusion that CSX should nonetheless not prevail.”
CSX I,
Following
CSX I,
this dispute — “minor” for RLA purposes but by now enormous in terms of the time and procedural maneuvering expended on it — continued back in district court, where UTU asked for a remand to arbitration instructing the board to fashion a remedy, and CSX sought to vacate the board’s decision on grounds that its jurisdiction was exceeded. The court first held that arbitral jurisdiction had not been transgressed.
CSX Transportation Inc. v. United Transportation Union,
DISCUSSION
I. Jurisdiction
Appellees argue that we lack jurisdiction to hear this appeal, since it comes to us from an order by the district court remanding their dispute with CSX to arbitration to consider what remedy is due workers displaced by the sale. They rightly point out that, because additional issues may unfold during arbitration, remands to the board are usually not deemed final and appealable under 28 U.S.C. § 1291.
See, e.g., Liberian Vertex Transports, Inc. v. Associated Bulk Carriers, Ltd.,
The propriety of the remand in this case hinges on the correctness of the district court’s view of § 6. If the court had been right in holding that § 6 imposed pre-sale bargaining obligations on CSX that were not complied with and, as the board held in its first decision, were not justified by the agreement or past practice, then the remand would have been the proper means to compensate the workers for. actions allowed neither by statute nor by contract.
3
We would then lack jurisdiction, as additional, remedial issues awaited arbitration. But here, we hold that CSX was under no such § 6 obligation. Since the board has already determined that the agreement’s only relevance to the post-sale job loss is its retention of workers’ § 6 status quo rights, and since we decide today that employees hold no such rights in cases of line sales, the board cannot award a remedy. There is no basis for it, contractual or statutory. Hence “the usual justification for appeala-bility — that nothing remains to be done in the action” — underscores our review here.
Liberian Vertex Transports,
For purposes of review, we cite our decision in
International Produce Inc. v. A/S Rosshavet,
II. The Board’s Findings
CSX first urges us to reverse on grounds that CSX II erred in confirming the board’s finding. It argues, as it did below, that the board exceeded its mandate. We are unpersuaded, but need not belabor the issue since we reverse on statutory grounds that are elucidated below.
Before discussing the board’s decision, we note that our review of it must be extremely limited. The RLA commands that an arbitral decision “shall be conclusive on the parties,” unless,
inter alia,
the board fails “to conform, or confine itself, to matters within the scope of [its] jurisdiction.” RLA § 3, 45 U.S.C. § 153, First (q) (1982).
4
The Supreme Court has characterized review of arbitral awards as “among the narrowest known to the law.”
Union Pacific Railroad Co. v. Sheehan,
CSX claims that the board here acted beyond its jurisdiction in three ways. First, it argues, the board decided an issue not put before it. CSX submitted the following question to the board:
Have the Organizations sustained their burden of proof that the Carrier does not have the unilateral right, under its existing collective bargaining agreements and past practices, to dispose of its rail lines ... ?
CSX II,
Did the Carrier have the unilateral right, under existing collective bargaining provisions or past practice, to abolish its positions in connection with the sale of the Buffalo-Eidenau Line without first negotiating with the Organizations as to the affected employees?
Id.
The court found “no essential difference between” these questions.
Id.
at 805. Nor do we. CSX’s inclusion of the word “unilateral” indicates that its submission encompasses the question of whether CSX had obligations to the unions. CSX wished to learn whether it could sell without first bargaining with UTU, and the board answered that the agreement and past practice neither permitted nor prohibited it from doing so. While parties, not the arbitrators, define the issues to be arbitrated,
AT & T Technologies, Inc. v. Communications Workers of America,
CSX also argues that the board based its decision not on the agreement but on an extra-jurisdictional analysis of the RLA. But the board was careful to confine itself to the question of whether the agreement waived the unions’
“asserted
statutory right,
if any,
to bargain.” Award at 16 (emphasis added). It noted that the issue
*878
of whether those rights exist is a “determination [that] is properly before the courts.”
Id.
There is a difference, of course, between interpreting a statute, and interpreting a contract’s relationship to that statute. While the former is not allowed, the latter—especially in cases like this where “issues of statutory interpretation and of contractual interpretation ... seem inextricably intertwined,”
CSX II,
Finally, CSX contends that the board exceeded its jurisdiction by rewriting the parties’ contract. It relies on the agreement’s failure, in its reduction-in-force provisions, to specify the circumstances under which employees may be laid off.
5
To CSX, this silence connotes the provisions’ applicability to firings made for any reason, including line sales. To the board, “nothing in the terms of these provisions ... would in any way allow a conclusion that the parties intended or contemplated that the RIF or furlough provisions would apply to a line sale.” Award at 17. Given the deference we attach to arbitrators’ contractual conclusions, and in recognition of the fact that the provisions in question are hardly unambiguous, we find no violation of the board’s jurisdiction.
See United Food and Commercial Workers Union, Local 1119, AFL-CIO v. United Markets Inc.,
III. Line Sales and the Status Quo Requirement of RLA § 6
The central issue raised by CSX on appeal is whether the § 6 requirement of a carrier to maintain the “rates of pay, rules [and] working conditions” of its employees, after the unions file notices to amend the agreement, applies to a line sale. Put simply, when a railroad sells its tracks, is it changing the salaries, rules or conditions of employment for workers on those tracks? The district court answered affirmatively; we disagree and reverse.
Any discussion of § 6’s applicability to line sales must begin with the Supreme Court’s recent decision in
Pittsburgh & Lake Erie Railroad Co. v. RLEA,
the decision to close down a.business entirely is so much a management prerogative that only an unmistakable expression of congressional intent will suffice to require the employer to postpone a sale of its assets pending the fulfillment of any duty it may have to bargain over the subject matter of union notices such as were served in this case. Absent *879 statutory direction to the contrary, the decision of a railroad employer to go out of business and consequently to reduce to zero the number of available jobs is not a change in the conditions of employment forbidden by the status quo provision of § 156.
Id.
at 509,
The District Court relied, as it had to, on the distinction between the total line sale at issue in
P & LE,
and the partial sale of track engaged in by CSX.
6
CSX II
at 812-814. It made much of the Supreme Court’s decision in
Order of Railroad Telegraphers v. Chicago & North Western Railway Co.,
We do not think
Shore Line
and
Telegraphers
extend so far.
P & LE
“plainly limited their application,”
RLEA v. CSX Transport,
The decision to sell a line is not a decision about the utilization of labor or about wages, work rules, working conditions, *880 job rights, etc. It is a decision to reduce the extent of the railroad’s business, akin to a manufacturer’s decision to curtail its output or to retire unneeded capacity without replacing it. It is not a decision about labor inputs. It has of course consequences for the workers — any major business decision does. But if this were enough to make it a change in pay, work rules or working conditions, then every significant business decision that a carrier made would be a mandatory subject of collective bargaining; there would be no management prerogatives; and Pittsburgh & Lake Erie, which holds that the carrier is not required to bargain over the sale of its business, would be incoherent.
C & NW v. RLEA,
We agree that the central message of
P & LE
is that line sales are decisions committed to management prerogative, irrespective of whether the railroad is only partially or gradually leaving the market, as here, or is exiting it fully and immediately. That distinction is the essence of the district court’s opinion, but we think it foreshadows an unworkable regime of railroad management and carrier-union relations. Unless we were to hold that even a sale of virtually all lines did not bring
P &
LE’s management prerogative rationale into play — which we shun “since it would be absurd to make a railroad bargain over the sale of 99 percent of its lines but not over the sale of 100 percent,”
C & NW v. RLEA,
In sum, application of § 6 cannot be made to turn on the number or length of lines sold in a given transaction. A line sale is either a matter of management prerogative or it is not. We hold that it is. Section 6 was intended to govern decisions by the railroad that alter labor conditions after a proposal to amend the agreement is filed. The decision to sell a line, however, is one primarily about the use of business assets, and only affects labor conditions indirectly. Therefore, a railroad has no obligation to await the outcome of bargaining over proposals to amend its agreements with labor, as part of its duty to maintain rates of pay, rules and working conditions under § 6, before it completes a line sale.
CONCLUSION
Because CSX had no duty to delay its sale of the Buffalo-Eidenau Line to B & P, there are no grounds on which the board can remedy workers adversely affected by the sale. The agreement, found by the board to be silent as to job protections after line sales, was not violated. And we hold today that the RLA was complied with as well. Consequently, there is nothing remaining for the board to do.
Accordingly, we reverse the order of the district court, and dismiss the case.
Notes
. Nowhere are these terms found in the RLA itself. Rather they are linguistic creations of the Supreme Court.
See Elgin, Joliet & Eastern Railway Co. v. Burley,
. This decision was based on the court’s belief that the agreement’s reduction-in-force provisions and past CSX practices might authorize job losses following track sales.
Decker,
. We reject CSX's contention that the board would be powerless to remedy workers aggrieved by the sale, just as it was dismissed when made by the unions in CSX I. There we said that:
Appellants' remedy for any perceived inadequacy in the Board's determination, however, is provided by RLA § 3 First (q), 45 U.S.C. § 153 First (q) (1982), which establishes a judicial remedy for "any employee or group of employees ... aggrieved by the failure of any [adjustment board] to include certain terms in [its] award.” Id. The reviewing court “shall have jurisdiction to affirm the order ... or to set it aside, in whole or in part, or it may remand the proceeding ... for such further action as it may direct.” Id.
CSX I,
. We may set aside or remand to further arbitration an award only:
for failure of the division to comply with the requirements of this chapter, for failure of the order to conform, or confine itself, to matters within the scope of the division’s jurisdiction, or for fraud or corruption by a member of the division making the order.
RLA § 3, 45 U.S.C. § 153, First (q) (1982).
. As the district court noted, a typical reduction-in-force clause reads:
(a) When it becomes necessary to reduce expenses, the forces at any point or in any department or subdivision thereof shall be reduced, seniority to govern; and employees affected to take the rate of the job to which they are assigned.
(b)(1) Five working days' advance notice will be given to employees affected before the abolishment of positions or reduction in force, and list of employees affected will be furnished to the local committee....
CSX II,
. The district court also relied on our statement in
CSX I
that, "[h]ad the district court reached this conclusion [that CSX’s plausible contractual justification actually had no merit] at the outset, it would presumably have treated the controversy as a major dispute,
and CSX would have been required to maintain the status quo as to the affected employees." CSXII,
