The New York herald., 1922-05-11
OUTSIDE RAIL SHOP
CONTRACT ILLEGAL
Agreements Conflicting With
Labor Boards Wage Rule
Are Banned.
GOES TO 'VITALS OF ACT
Thousands Of Former Railway
Employees Brought Under
Boards Jurisdiction.

CHICAGO, May 10 (Associated Press)
Contracting shop repair work to
outside firms by a railroad company
was declared violation of the trans
portation act and contract provisions
conflicting with the wages and work.
ing rules laid down by the Railroad
Labor Board were declared Illegal in
decision handed down by the board
to-day.
The decision. which is the first of a
series on disputes over farming out"
railroad labor, was made in the con-
troversy between union shop crafts
and the Indiana Harbor Belt Rail-
road. The board declared its pro-
nouncement went ito the vitals of the
transportation act"
mo moro important dispute" the
decision added, has ever come before
this board for adjudication
While the decision applied only to the
one road. which last September con-
tracted its repair work to the Burnham
Car Repair Company. the general prin-
ciples established will govern all subse-
quent decisions. There now are thirty
six such cases pending before the board.
involving seventeen railroads.
Thousands Affected.
Under the decision. thousands OF
former railway employees working for
contractors at wages varying from the
Labor Board scale are brought back
under the boards Jurisdiction. Rules
varying from those laid down by the
board are likewise. in effect declared IL
legal. and the contractors employees
restored TO the working rules promul-
gated by the board.
The board declared that IL a railroad
company could remove its employees
from the Jurisdiction OF the board. as
was contended in the Indiana Harbor
Self case. then the entire transporta-
ton act can be nullifled and the will OF
the Congress set at naught."
At the present many roads have con-
tracted 60 Independent companies the
work Of shopmen, maintenance OF way
laborers, clerks. firemen and oilers. host
lers and signal men. and the board de-
clared that II one class could be taken
out from under the transportation act,
there is no sound reason why each and
every railroad employee In che United
States cannot be given like treatment"
"A strike by the employees Of a con-
tractor or contractor agent OF car
rier would as effectually result In che
interruption OF traffic as II the men
were the direct employees OF che
carrier" said the decision.
strikes Resulted.
The Indiana Harbor Belt case was one
OF the first 10 come before the board.
the first contract being let by the road
January 20. 1921. Subsequent agree
ments extended operations OF the re-
pair company until contract on Sep
tcmbcr l6. 1921, gave the repair work
to the Burnham company. Meanwhile,
similar cases appeared on the Erie. New
York Central, Missouri. Kansas and
Texas, Michigan Central and other
roads Some Of the contracts have re-
suited in strikes and all have brought
protests 10 the board.
The Burnham company put its em-
ployees on n piece work basis the
company contending that the employees
earned more money thereby than under
the hourly rate fixed by the board The
unions admitted that the compensation
amounted 20 about the same. although
they claimed losses in elimination of
punitive overtime and the advants ges
Of certain working rules granted by the
board. The union complained that the
Burnham contracts were merely sub
I terfuges TO evade the transportation act
and the decisions OF the board and were
\ not made in good faith. The board
stated. however. that these charges were
not substantiated.