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Title II of the Railway Labor Act, placing the airlines of the United States thereunder, was approved April 10, 1936. During the first few years thereafter, very few cases arose among airline employees requiring the mediatory services of this Board, or its services in connection with representation disputes. Organizational activity among certain employee groups in the airline industry is still in progress and numerous individual labor organizations are involved.

Recent introduction of heavier and faster planes generally results in approaches by the flight personnel for revised rules and increased compensation. The pilots' organization has continued its efforts to secure larger compensation for its members on the theory that they should participate to a greater extent in the potential earning capacity of the larger and faster planes. These efforts have been stepped up to a marked degree with the introduction of jet planes in transport service.

Other classes of airline employees, including the clerical, communications, and mechanical crafts or classes have also pressed their demands for higher pay scales, the union shop, increased shift differentials, more holidays, and similar benefits.

The establishment of new routes or changes in established routes have resulted in approaches for changes in agreements, which included rules and rates for handling joint routes and interchange service.

Consolidation of established airlines by purchase and merger has resulted in disputes involving the status of the personnel of the affected units including integration of seniority lists, severance pay formulas, etc. The airline industry, although expanding, is still in a “shakedown" period of mergers and consolidations under authority of the Civil Aeronautics Board, and many problems will arise in connection with this phase of airline operations.

Except for the pilots, who are represented by a single labor organization, other groups on the airlines are represented by many different organizations, which has resulted in a divergence in the terms of agreements on rates and rules. Many of the classes of ground service employees are still unrepresented, and with organizing campaigns in progress among them by various organizations, we do not anticipate a decline in the number of representation disputes among airline employees.

REVIEW OF OPERATIONS During the past fiscal year activities in the railroad industry continue to be dominated by the report and recommendations of the Presidential Commission pertaining to the operating employees as well as the movement among various nonoperating organiaztions to obtain job security benefits for their members. Public Law 88–108 approved on August 28, 1963, referred the fireman and crew consist issue to an arbitration board while the remaining issues were remanded to the parties for further handling. Arbitration Board No. 282 created by Public Law 88-108 issued its award on November 25, 1963. An agreement resolving the remaining issues was reached on June 25, 1964. Problems pertaining to the implementation of this award and agreement on individual carrier continue to perplex the industry.

In the airline industry all organiaztions continue to press for more favorable contracts covering issues involving job security, union shop, and wage increases. The Board does not anticipate any decline in its workload but rather expects an increase as the organizations' efforts continue to be directed toward more favorable agreements.

Representation disputes in both the airline and railroad industries are increasing due to the abrogation of a no-raid policy among railroad operating employees and a movement among the organized airline employees to obtain representation rights.

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The amount requested for this activity $767,000 is 3,000 more than requested for fiscal 1966 in order to meet within-grade salary advancements.

Promotions and adjustments in GS salary grades are made in accordance with the Board's promotion policy and approved by Civil Service Commission.

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Activity: Voluntary arbitration and emergency disputes

Despite the labor unrest in the industries subject to the Railway Labor Act the number of legal work stoppages in the airline and railroad industries has been relatively few as compared to other industries. While there have been many incidents which potentially threaten to interrupt rail and air traffic, the Board feels that the whole record of this performance indicates that its efforts have, in the main, succeeded in keeping the wheels of the transportation industry moving. In many instances the efforts of the members and staff of the National Mediation Board are successful in achieving peaceful settlements of labor disputes through the procedures financed under this activity establishing emergency and arbitration boards as well as special boards of adjustment.

A total of $460,000 is requested for this activity to finance operations in the fiscal year 1967. This is the same amount as available for the fiscal year 1966 and for which a total of $361,137 was expended in fiscal 1965.

Emergency Board.—Under the terms of section 10 of the Railway Labor Act, if a dispute between a carrier and its employees is not adjusted through mediation or the other procedures prescribed by the act, and should, in the judgment of the National Mediation Board threaten to interrupt interstate commerce to a degree such as to deprive any section of the country of essential transportation service, the Board shall notify the President, who may thereupon, in his discre tion, create an emergency board to investigate and report to him respecting such dispute. Any emergency board may be composed of such number of persons as the President designates, and persons so designated shall not be pecuniarily or otherwise interested in any organization of employees or any carrier. The compensation of emergency board members is fixed by the President. An emergency board is created separately in each instance, and is required to investigate the facts as to the dispute and report thereon to the President within 30 days from the date of its creation.

During the past fiscal year there were four emergency boards appointed by the President. One board created in the previous fiscal year completed its work in fiscal year 1965. A total of $62,953 was obligated for emergency boards in fiscal 1965.

Arbitration Board.-Section 5, 3(a), of the Railway Labor Act provides in the event mediation of a dispute is unsuccessful, the Board shall endeavor to induce the parties to submit their controversy to arbitration under the provisions of section 7 of the act. Generally, arbitration boards consist of three members, a representative of the carrier and of the organization and a third neutral member. The compensation of the neutral member is fixed by the Mediation Board.

During the past fiscal year two arbitration boards were created, two boards created in the prior fiscal year met during the past year; thus four boards were financed during the past fiscal year. For this a total of $11,111 was obligated. Of this amount, $8,550 was obligated for Arbitration Board 282. This Board was created by Public Law 88–108 approved on August 28, 1963, to consider the fire man issue and the crew consist problems arising out of the "national rules" dispute. This Board, which consisted of seven members, three of whom were public members, continued to meet from time to time through fiscal years 1965 and 1966 for the purpose of interpreting the award it rendered on November 25, 1963.

Special boards of adjustment.-Special boards of adjustment, a form of arbitration, may be created during mediation by carriers and organizations as a procedure to dispose of claim and grievance dockets, or in many instances, by voluntary agreement between rail carriers and organizations. The latter procedure has continued to increase during the past year as a result of the decision of the U.S. Supreme Court, BRT v. CRI RR Co. (352 U.S. 864) which held in effect that compulsory arbitration applies to grievance matters. Another factor which encourages the parties to resort to this procedure for disposing of griev. ances is the fact that special boards of adjustment can be set up promptly to dispose of disputes which if sent to the Adjustment Board in Chicago would be held for a considerable period of time before adjudicated. This has a salutary effect on employee morale and permits the carrier to adjust practices which if continued may impose a heavy financial burden.

In the past fiscal year 59 new special boards of adjustment were created and during this period a total of 105 boards convened. This represents an increase from the number, 36, or boards created in fiscal year 1964, and a decrease in the number, 108, of boards which convened in that year. A total of $265,194 was obligated for these boards in fiscal 1965. The level in operations of special boards of adjustment during the past fiscal year is considered temporary and an increase of such operations is anticipated for fiscal 1967

It is not possible to forecast precisely the total expenditures needed for this activity nor to determine exactly the amount needed for the various types of boards established. The estimate is based on past experience, knowledge of the industry problems and a reasonable reserve for contingencies. In summary the expenditures for 1965 were as follows: Emergency boards. Arbitration boards.. Special boards of adjustment.. Communication services Taxes and assessments_--

$62, 953

11, 111 265, 194 16, 995 4, 884

Total--

361, 137

Activity analysis by object classification

Activity: Voluntary arbitration and emergency disputes

Estimate,

Actual,

1965

Estimate,

1966

1967

11 Personnel compensation: Positions other than permanent.
12 Personnel benefits.
21 Travel and transportation of persons.
23 Rent, communications, and utilities.
24 Printing and reproduction.
25 Other services.

Total obligations.

$280, 450

4. 884 41, 976 19, 821

2,379 11, 627

$364, 000

6,500 60,000 15, 000

4, 500 10.000

$364.000

6,500 60,000 15,000

4, 500 10,000

361, 137

460,000

460,000 Rents, utilities

Emergency boards, 1965

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Salaries Per diem

Other

contractual service

Printing

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$5, 175 $1,635.16 $376.79 $332. 75 8, 125 3,555.42 506.547, 254. 46 8, 8001, 333. 43

162

163

7,800

950.91

164

8,800 1,891. 72

356.10

3, 233.74

Total...

38, 700

9,366. 64 1,239.43 10, 820.95

Arbitration boards, 1965

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Total

$305. 37

$7, 825. 07

1, 455.66 20, 897. 08

10, 133. 43

8, 750. 91

1,064.97

15, 346. 53

2, 826.00

62, 953. 02

Rents, utilities

Total

$8, 549. 51

368.00

1, 515. 04

678. 90

7,875 3,090.25

146. 20

11, 111. 45

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Boyd and Donaldson - Parties.-
Coffey

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300 85.05 385. 05
3, 325 1,035.55 4, 360. 55
3,625

184.85 3, 809.85
2, 150 183. 87 2, 333. 87
6, 050 483. 89 6, 533. 89
1,575 329.71 1, 904.71
20, 300 2,226. 90 | 22, 526. 90
1,900 578. 57 2, 478.57
3,175

719. 19 3,894. 19
850 147.68 997.68
3,075

787.34 3,862. 34
1,600

248. 28 1, 848. 28
500

500.00
6,950 189.62 7, 139. 62
2,025
273. 89

2,298.89

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387 New York Central-BRT 389 Union Pacific-B.L.F. & E

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