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Memoranda of understandings in connection with the memorandum of the director general, dated November 15, 1919, in regard to conditions under which time and one-half for overtime would be granted in f online

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Online LibraryUnited States Railroad AdministrationMemoranda of understandings in connection with the memorandum of the director general, dated November 15, 1919, in regard to conditions under which time and one-half for overtime would be granted in f → online text (page 1 of 3)
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DOCUMENTS
DEPT.



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UNITED STATES RAILROAD ADMINISTRATION.

^ DIRECTOR GENERAL OF RAILROADS.



WASHINGTON, DECEMBER 17, 1919.



JIEMQRANDA

of understandings in connection with the memorandum of the Di-
rector General, dated November 15, 1919, in regard to conditions
under which time and one-half for overtime would be granted in
freight service :

ISlEilOIJANDUXI OF THE DiKECTOK GENERAL OF NOVEMBER 15, 1919.

The argiiiuent which at all times has been urged as a basis for time and one-
half for overtime in road service is that since other classes of employees are
allowed time and one-haif after either 8 hours or 10 hours, it is an unjust
discrimination to deny employees In road service time and one-half for over-
time.

I have given the most careful consideration to this contention and I am
satisfied it is not well founded. Erc.ployees in road service enjoy a method of
pay which is entirely different from the method enjoyed by all other employees,
because all others work exclusively on an hourlj^ basis. Employees in road
freight service have the privilege of earning their clay's pay in less than the
standard day, provided their train makes a better speed than 12^ miles per hour.
I believe this fundamental difference in the method of allowing compensation
relieves the situation of any claim of unjust discrimination in the respect
indicated.

Along with this argument there is also the contention that the time and one-
half for ovei-time is necessary as a ptinitive share to compel trains to be
operated at a speed of not less than 12i miles per hour. I do not believe this
contention is well founded. It seems reeisonably clear that a large proportion
of freight trains can not be operated ecc comically on as high an average speed
basis as 12-J miles per hour, and I do net believe an absohite unqualified penalty
should be imposed for failing to do a thing which can not reasonably be done.

If this matter had to be decided exclusively on the contentions which have
been presented to me, I could find no justification for deciding otherwise than
that time and one-balf for overtime ought not to be allowed in road service.

But there is another phase of this matter which has not been presented to me
in any definite way by anyone interested either for or against punitive over-
time. My study of the matter, however, has brought this entirely distinct
feature clearly to my attention, and I can not conscientiously dispose of the
matter without giving full weight to this entirely distinct consideration.

It seems to me that those freight train employees who are habitually em-
ployed in freight service which does not rise above and generally falls below
a speed basis of 12* miles per hour do not I'eceive a compensation which is
relatively sufficient as compared with train service employees in freight service
whose trains habitually make a speed of not less than 12* miles per hour with a
general tendency to make a higher basis, or as compared with employees in
passenger train service. It is evident that in order for these employeesin this
slower freight service to earn anything like the compensation obtained in this
faster freight service they must in general work exceedingly long hours, and
hence that their position is relatively unfavorable.



155703°— CO



It seems to me that the best wny to* accomplish the siving of reasonable ad-
ditional compensation to the employees in this slower freight service so as to
remove tlie im.iust discrimination which in a broad and general way it seems
to me exists between them and the employees in this faster freiglit service, is on
the one hand to allow time and one-half for overtime, and on the other hand to
cut out in all freight service all special arbitraries and allowances of every
character, including initial terminal delays and final terminal delays. I believe
these steps will substantially correct the inequalities which now exist and will
put the compensation for freight train service upon a much fairer basis than
now exists.

I am therefore willing to establish December 1, 1919, the time and one-half
for overtime in road freight service provided the train and engine men will
accept such a basis in lieu of all special allowances and arbitraries of every
character and will do this for the railroads as a whole.

I have no doubt that an incidental benefit arising from this course will be
that it will tend to correct extreme cases of unnecessarily slow trains, although
I do not believe it can or ought to result in raising all trains to the 12i-mile
speed basis.

The proposition herewith made is shown in detail by the amendments on the
attached copies of Supplements Nos. 15 and 16. It is the purpose of the Railroad
Administration, by these amendments and by any necessary instructions, to pl'o-
hibit abuses which might otherwise arise by reason of the elimination of the
various arbitraries, special allowances, etc.

Time and one-half for overtime is not to be so applied as to increase the pay-
ments which will be made as a result of any held-away-from-home-terminal
rule.

Quotations from letter of Director General, dated November 24,
1919, covering questions submitted by tlie chief executives of the four
train service organizations and answers of the Director General :

Question 1. Does the proposition you gave us in any way apply to or have any
effect in passenger service?

Answer. No.

Question 2. Are arbitraries and special allowances, including initial and final
terminal delay, now applicable to passenger service continued?

Answer. Yes. .

Question 3. Supplement No. 15, engineers and firemen, Article VII; Supple-
ment 16, conductors and trainmen. Article VI. Will time and one-half time for
overtime be paid to engine and train men in mixed service?

(a) Where employees are paid on passenger basis?

(?)) Where employees ai*e paid on other than passenger basis?

(c) Will it be paid to men in branch Une service?

id) Will it apply to other than Class I roads?

Answer, (a) No. (b) Under Supplement No. 15 where mixed service is
paid freight rates and on the bases of mileage and overtime provided in revised
Article VII, overtime will be paid at time and one-half.

Under Supplement No. 16 where mixed service is paid freight rates and on-
the bases of mileage and overtime provided in revised Article VI, overtime will
be paid at time and one-half.

These answers apply to main-line service.

(c) (As revised Dec. 12, 1919.) It is understood that where the overtime in
mixed service is calculated on the freight basis and the rates are other than
passenger, overtime will be paid at the rate of one and one-half time.

(d) (As revised Dec. 12, 1919.) Article IX, section (c), applying to other
than Class I roads, provides :

«« * * * HQ change is required in the miles, hours, or service for which
the former rates compensated."

It is understood that in other than passenger service overtime under the
former rules accruing after the limits of a day of eight (8) hours or more w^ill
be paid at the rate of one and one-half time.

Question 4. Some railroad companies claim that work train is neither pas-
senger, freight, nor road service. Will time and one-half be paid in work ti-ain
and every other service, except passenger, regardless of name?

Answer. Revised Article XXI, Supplement No. 16, and revised Article XXII,
Supplement No. 15, provide that the bases of pay which conflict with the basis
provided in revised Article VI, Supplement No. 16, and revised Article VII, Sup-



plement No. 15, respectively, shall be changed to conform therewith. Work-
train service or any other service, excepting passenger, which is paid under
the bases provided in the two last-mentioned articles would receive time and
one-half time for overtime.

Question 5. May three-crewed locals be retained on roads where the pay on
one trip or day for 100 miles or less is equivalent to one and one-half day's pay
(12 hours)?

Answer. The articles as revised are without prejudice to the manner in which
local freight trains may be operated, and it is assumed that satisfactory local
agreements can tre reached as to the manner of operation. The basis of payment,
however, must conform to the basis set forth in revised Articles VII and XXII
of Supplement No. 15 and revised Articles VI and XXI of Supplement No. 16.

Question 6. Many western roads allow constructive mileage for mountain
division or desert territory over valley rates instead of specified amounts of
money. Are such differentials retained?

Answer. So-called mountain differentials are subject to different bases under
the several schedules where they exist. Differentials expressed in miles appear
to be more directly connected with the rate of pay than the limits of the day for
computing overtime. In such cases it is not intenided that they should be con-
sidered as arbitraries coming within the scope of revised Article X, and it is
anticipated that the matter can and ougJit to be reviewed in each case in ac-
cordance with this general principle, but pending such review the mileage
differentials will be continued as heretofore.

(Note. — Article XXII of Supplement No. 15 and Article XXI of Supplement
No. 16 were later revised to provide for these differentials.)

As to the held-away-from-home-terminal rule inserted in revised Supplements
Nos. 15 and 16, you of course recognize that the language of that rule will
need correction in order to make it conform with the last paragraph of the
memorandum which I handed you on November 15. This can be done when the
revised orders are finally drawn, in the event the proposition is acceptable.

It also appears that section (a) of Article X will need to be so worded as to
apply only to road service other than passenger. Siich correction can also be
made when the orders are finally drawn.

Quotations from letter of the Director General, dated November
25, 1919:

Aeticues IV AND VII, Supplement No. 15 — Articles V and VI, Supplement

No. 16.

Question (a). Is there any basis other than 12* miles per hour in freight
service?

Question (&). Is there any other day than 100 miles or less?

Answer (a) and (b). Section (a) of revised Article XXII of Supplement No.
15 and of revised Article XXI of Supplement No. 16 provide that in considera-
tion of granting overtime on the bases provided in revised Article VII. Sup-
plement No. 15, and revised Article VI, Supplement No. 16, all rules, regula-
tions, practices, etc., applicable to freight service which conflict with the ap-
plication of the rules contained in the orders shall be changed to conform
therewith. Accordingly the proposition intends that there shall be no other
basis than 12* miles per hour in freight service ; and no other basis for a day
than 100 miles or less.

Question (c). Is there any constructive mileage aside from 100 miles or
less for level territory?

Answer. No. (This answer superseded by Article XXII, Supplement No.
24, and Article XXI, Supplement No. 25.)

Question (d). Is Boston & Maine 75-mile local abrogated?

Answer. For reasons stated under (a) and (&), yes.

Question (e). "Will note as to final terminal delay and instructions against
abuse thereof apply to initial terminal delay as well?

Answer. It has l3een considered tliat the conditions at final terminals differ
materially from those at the initial terminals, and that there were not as great
possibilities of improper requirements at the initial terminals as at the final
terminals. Any extraordinary delay at the initial terminals would in the
great majority of cases result in overtime, and the payment of overtime at
time and one-half would in all probability serve as a corrective. However,
should it develop that improper conditions result it will be agreeable to at-



tempt to work out a reasonable rule, atlhough it must not be overlooked that
in each arbitration under which an initial terminal delay rule was requested
the request has been declined and tlie arbitration boards have taken the posi-
tion that by requiring the time to begin at the time required to report for duty
the employees were assured of compensation for all the time that they con-
tributed.

Question (/). Will highest rate for day be paid when two or more classes of
service are performed on same day or trip?

Answer. When two or more classes of road service are performed on same
day or trip there is no objection to applying the rate applicable to the highest
class of service performed, with the overtime basis for entire trip applicable
to the rate paid.

Eeply of the chief executives of the Brotherhood of Locomotive
Engineers, Brotherhood of Locomotive Firemen and Enginemen,
Order of Railway Conductors, and Brotherhood of Railroad Train-
men, dated December 3, 1919, as follows:

The following resolution was adopted by chairmen of general committees of
the Order of Railway Conductors, Brotherhood of Locomotive Engineers, and
Brotherhood of Locomotive Firemen and Enginemen, and rejected by the gen-
eral chairmen of the Brotherhood of Railroad Trainmen, assembled at Cleve-
land, Ohio, November 27, 1919.

The time and one-half proposition, held-away-from-home-terminal rule, and
the use of yard crews in road service in emergencies are subjects that have
been pending since about October, 1918, since which time some of these or-
ganizations have filed with the Board of Railroad Wages and Working Condi-
tions propositions for increased wages and changed working conditions, in-
cluding the unsettled questions above referred to.

The Brotherhood of Railroad Trainmen at the Cleveland meeting recorded a
vote of 106,726 against to 19,499 in favor of the adoption of the resolution,
which follows:

•' Be it resolved, That our chief executives be directed to notify the Director
General that we are willing to accept his proposition for the payment of time
and one-half for road overtime in freight service on all roads under Federal
control ; provided, that all initial and final terminal allowances or rules of
every description in individual schedules, together witli mountain differentials,
and all constructive mileage allowances of every description be preserved. Ter-
minal allowances to be paid at pro rata when the trip, including time at ter-
minals, does not entail overtime. If overtime accrues (terminal and other time
to be measured continuously), overtime at one and one-half time to be paid."

It has been the custom in the past in dealing with collective movements,
.such as the one in October, 1918, that a majority of the organizations voting in
favor of a proposition determined the issue for all organizations parties to the
cooperative movement. With that understanding, the vote of the Brotherhood
of Railroad Trainmen can be considered in favor of the adoption of the reso-
lution, because the three associated organizations voted in favor of its adoption.

As explaining the resolution quoted, the chief executives on De-
cember 2, 1919, submitted the following :

All initial and final terminal allowances of all kinds now paid independent
of the trip will be continued as now ; paid separately and at pro rata rate.

All initial and final terminal allowances of all kinds which ax'e coupled with
and may be absorbed by train movement exceeding the speed basis "\\'ill be paid
at pro rata rate when train reaches final terminal before overtime from time
of going on duty accrues ; if on overtime on arrival at final terminal time will
be computed from time required for duty until final release and all overtime
will be paid at one and one-half time. Time at final terminal up to period
when overtime commences will be paid pro rata and thereafter at time and
one-half time.

Understandings reached at conference held at Washington, D, C,
from December 2 to 13, 1919, between the Directors of the Divisions
of Operation and Labor of the United States Railroad Administra-
tion and the chief executives of the Brotherhood of Locomotive Engi-
neers, Brotherhood of Locomotive Firemen and Enginemen, Order



of Railway Conductors, and the Brotherhood of Railroad Trainmen,
accompanied by a special committee composed of general chairmen of
tlie respective organizations.

The following answers show application of the proposition to the
rules as quoted or the question as submitted :

Article V, Supplement, No. 24.

Question 1. Give examples or application of the combination of service rule
as contained in the proposition submitted, as set out in the following combina-
tions of service between terminals, which heretofore have been recognized as
two services or for which special allowance has been i)aid.

Answer. In view of the introduction of time and one-half for overtime in
freight seiwice it is felt that Article V (c) of Supplement No. 24 will have to be
changed. It provides that where engineers and firemen are required to perform
a combination of more than one class of road service they will be paid at the
rate and according to the rules governing each class of service, etc. Under this
rule service may consist of passenger and freight and overtime would be paid
after fractions of a day. It is not the intent to pay time and one-half in freight
service prior to 8 hours on runs of 100 miles or less, or prior to the hours deter-
mined by dividing by 12| the miles run when in excess of 100. To preserve
Article V (c) would necessitate continuance of pro rata overtime for freight
portions of the trip where less than 100 miles were run, and all passenger
overtime be paid at pro rata rates. Rather than have such a complicated con-
dition it is believed that the rule should be changed to provide that where two
or more classes of road service are performed in continuous service the highest
I'ate applicable to any class of service or to the heaviest locomotive used shall
apply for the entire service, and the overtime basis applicable to such rates
shall be applied. Under such a rule the through or the local freight rate being
higher than the passenger rate, they would be applied according to the class of
freight service performed, and the freight overtime basis would apply.

(a) A crew starts out in through-freight service and is called upon to do
work-train service en route, or vice versa.

Answer. Two classes of service can only be involved where different rates are
paid. Where the through freight and work train rates are the same, two classes
of service are not involved ; therefore, through-freight rates with the through-
freight overtime basis would apply; where the rates are not the same, the higher
rate shall apply for the entire trip.

■(&) A crew starts out in passenger service and is called upon to do freight,
work, or switching en route, or vice versa.

Answer. As will be explained imder item (c), question 1, there is no intent
to consider that switching en route will change the classification of a train.
Where two or more classes of road work are performed, the passenger, freight,
or work service would be combined and the entire service paid on the basis of
100 miles or less, 8 liours or less, to constitute a day ; miles in excess of 100 to
be paid pro rata and overtime accruing to be paid at the rate of time and one-
half.

(c) We understar.d that under the combination service rule, that heretofore
where switching en route has been paid for, if crews on same railroad are now
called to perform switching it converts a through freight train to a local freight
basis, or if heretofore through freight crews called upon to do switching at
terminals, or in yards en route, and under circumstances which heretofore ob-
tained, are called upon to do such work, that the combination service will be
for each member of the crew, that which brings the most compensation ; for
example, the conductor would be paid the local fi'eight rate: the brakeman on
the train the yard rates.

Answer. The arbitrary and special allowances for switching at terminals
are definitely dealt with under Article X as revised. Arbjtraries or special al-
lowances for switching performed on road, whether switch engines are main-
tained at the stations or not are intended to be eliminated, as provided in
Article X (a), as revised. Excepting as provided under item (d), question 1,
there is no intent that the performance of switching en route shall convert a
through freight into a local freight.



The case originally submitted was as follows:

" Rules applicable to changing service en route, or two classes of service for
which two days are now paid, or one day plus varying allowances, are ab-
sorbed ; take the highest rate for the trip or day."

No question was presented concerning through freight crews doing switch-
ing on road or at terminals. The Baltimore & Ohio rule was mentioned, imder
which, if a local freight train was xinable to complete its trip and a through
freiglit train was required to do the work of the local, it receives a minimum of
a day for the through freight service plus, certain allowances for the local
freight service. Later the following question was presented to the Director
General, to which he replied as shown :

" Question if). Will highest rate for day be paid when two or more classes of
service are performed on same day or trip?

" Answer. When two or more classes of road service ai*e performed on same
day or trip there is no objection to applying the rate applicable to the highest
class of service performed with the overtime basis for entire trip applicable to
the rate paid."

It is felt that these questions and answers clearly indicate that at no time
Avas there any thought that the performance of switching en route would
change the classification of a train for purposes of pay.

(d) Are rules which convert a through-lreight crew to a local freight basis,
making 3, 4, 5 or other stops, or by doing a given amount of switching,
continued?

Answer. Yes.

Article VII, Supplement No. 24 — Article VI, Supplement No. 2.5.

Question 2. A schedule provides that work-train -crews will be paid mileage
going to or returning from point whore work is located if cars are handled
wliich do not belong to that service.

Answer. Article XXII, section (a), Supplement No. 24, and Article XXI,
section (o). Supplement No. 25, as revised, provide that all rules, etc., which
conflict with the application of the rules contained in the order shall be
changed to conform therewith ; therefore, the basic day and overtime would
be subject to Article VII of Supplement No. 24 and Article VI of Supplement
No. 25, as revised.

Question 3. A certain schedule provides that in local freight service 75
miles constitutes, a day.

Answer. Article XXII of Supplement No. 24 and Article XXI of Supplement
No. 25, as revised, provide that all rules, etc., which are in conflict with the
application of the rules contained in the order shall be changed to conform
therewith. The service would be paid for under the provisions of Article VII
of Supplement No. 24 and Article VI of Supplement No. 25, as revised.

Question 4. A schedule provides for actual miles to and from place of work
and payment by hour while at work. This allowance in addition to compensa-
tion as firemen on wox'k train.

Answer. It is our understanding that the following statement in the ques-
tion : " This allowance in addition to compensation as firemen on work train "
refers to the time at place of work being paid separately from the mileage or
time going to and returning from place of work.

The proposition intends that such rules shall be superseded by the provisions
of Article VII, Supplement No. 24, and Ariicle VI, Supplement No. 25, as
revised.

Question 5. A schedule provides that freight overtime paid on schedule of
train. For example, if train is scheduled for 10 hours on run of 150 miles,
overtime would be paid after 10 hours.

Answer. Kule superseded. Article XXII, Supplement No. 24, and Article
XXI, Supplement No. 25, as revised, require that all rules, etc.. which conflict
with the provisions of the orders shall be changed to conform therewith. There-
fore overtime basis (if Article VII, Supplement No. 24, and Article VI, Supple-
ment No. 25, as revised, would apply.

Question 6. A schedule provides that firemen on freight runs over 150 miles
are paid overtime after 12 hours. For example, on runs of 175 miles actual
mileage would be allowed, with overtime after 12 hours.

Answer. Rule superseded. See answer to question 5.

Question 7. A schedule provides that engineers exclusively assigned to
helper service when used for any service other than assignment will be paid


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Online LibraryUnited States Railroad AdministrationMemoranda of understandings in connection with the memorandum of the director general, dated November 15, 1919, in regard to conditions under which time and one-half for overtime would be granted in f → online text (page 1 of 3)