Employe Representation “ 7 - ~P I r/Os^l ~ — (v-a , - Vf^asport. ~ ' . . ' A The Pennsylvania Railroad Plan What It Is What It Is Not How It Works Employe Representation The Pennsylvania Railroad Plan The Joint Work of Its Officers and Employes Published by The Pennsylvania Railroad Company Broad Street Station Philadelphia CONTENTS 1. Cooperation Instead of Conflict Between Management and Men. 2. Employe Representation on the Pennsyl- vania Railroad. 3. How the Pennsylvania Plan Actually Works. 4. Court Decisions Affecting the Pennsyl- vania Plan. Appendix. Digitized by the Internet Archive in 2015 https://archive.org/details/employerepresentOOpenn FOREWORD The purpose of this pamphlet is to present briefly the facts about the rela- tions between the employes and the man- agement of the Pennsylvania Railroad System. It is published for the informa- tion of officers and employes and others who may be interested. This cooperative plan of settling peace- fully and by joint action all matters that mutually concern employes and manage- ment has occasioned, during the last four years, a great deal of comment. Much of it has been favorable. Some of it has been controversial and obviously due to mis- understanding. Some of it, just as obvi- ously, has been prompted by a desire to misrepresent the real situation. As a successful method of establishing and maintaining cooperation between management and men the Pennsylvania Railroad plan is an accomplished fact. It is no longer an experiment. Details of its origin and purposes, its fundamental principles and actual operation will be found in the following pages. Under the Pennsylvania plan wages and working conditions have been peace- fully negotiated with employe represent- atives in all branches of the service and machinery has been set up for the joint handling of all questions affecting the employes in their relations with the man- agement. It is not necessary for Pennsylvania Railroad employes to resort to a strike in order to get a square deal. The highest authority on the railroad, in deciding con- troversial matters, is a joint committee in each branch of the service equally repre- sentative of officers and employes, all members having equal voting power and two-thirds vote being required for a decision. 9 • • In publishing this booklet the manage- ment desires to express its appreciation to the officers and employes who, with loy- alty and sincerity, have cooperated in making this plan a working success. The service of this company to the public ^s the first concern of its officers and employes and the management regards this cooperative plan of employe repre- sentation as a means of enabling the com- pany to perform an increasing measure of public service. I COOPERATION INSTEAD OF CONFLICT BETWEEN MANAGEMENT AND MEN This year — 1925 — will be the fifth year in which the officers and employes of the Penn- sylvania Railroad System have practiced the plan of sitting down around a table as friends and partners to discuss and decide jointly the things that most vitally concern their mutual interests. For lack of a better name, perhaps, this plan is known as Employe Representation. The name, however, is far less important and signif- icant than the purpose for which it was under- taken, the spirit in which it has operated and the success which has attended it in a period of four years that has put it to tests of undoubted severity. During the same period and for some years earlier the subject of industrial relations has been widely considered. Progressive leaders of both capital and labor, the government, the press and other agencies, recognizing that industrial peace is an important factor in making for national progress and the public welfare, have become more actively interested in methods to bring it about. 1 9 ] EMPLOYE REPRESENTATION ON Effort to Substitute Cooperation for Conflict Inevitably the efforts to find a workable substitute for the outworn and wholly unsat- isfactory system of resorting to force to settle industrial disputes has provoked a great deal of misunderstanding and misrepresentation as well as some unsound theories. Whole vol- umes have been published devoted entirely to the terminology of labor relations. Unfortu- nately, too, the real issue is frequently camou- flaged by a phrase or term, supposedly expres- sive of inalienable rights which somehow are conceived to be in jeopardy. One of the two conferences on industrial relations assembled by President Wilson split hopelessly on the definition of one of these terms — “collective bargaining” — although the fact is that few enlightened employers of labor fail to recognize collective bargaining not only as the right of their employes but also as a benefit to the industry, its stockholders and the public which it serves. The difficulty arises in interpreting what the term means. Confusion of Thought on Industrial Relations So much of the history of industrial rela- tions is concerned with warfare that it has produced several distinct schools of thought 1 10 ] THE PENNSYLVANIA RAILROAD whose very attitude toward the subject places an obstacle in the way of reaching the solution that they seek. There are some who seem to think that the natural relationship between men and management is one of inevitable strife and that the solution lies in the formulation of rules for carrying on this perpetual war- fare. It is difficult, apparently, for them to realize that the way to make peace is to make peace. It is difficult for them to conceive that management and men can get down to a basis of real sincerity and mutual good faith. P. R. R. Plan Based on Real Collective Bargaining 1'here is still another school which is not confined by any means to what might be called the hierarchy of organized labor. It has its disciples in the church, in the press and in other agencies that concern themselves with social and industrial reform. Its funda- mental tenet seems to be that there is no middle ground between an autocracy of man- agement on the one hand and an autocracy of national labor unions on the other. It is difficult for them to see any sincerity in the purpose of management not to struggle against or triumph over its employes but to secure their loyalty and cooperation through a policy of square dealing and mutual confidence. [ 11 1 EMPLOYE REPRESENTATION ON Much of this confusion of thought sur- rounds the development of employe represen- tation. It has been falsely branded as a weapon with which to destroy existing union labor organization. It has been erroneously called industrial democracy. On the Penn- sylvania Railroad it is neither. It may be well to point out now, what will be explained in more detail later, that on the Pennsylvania, employe representation not only recognizes the right of collective bargaining, but is pri- marily based on that very principle. Trend of Times Is To Employe Representation In presenting, therefore, a description of the Pennsylvania Plan, with which this booklet concerns itself, it may be enlightening to sketch briefly some of the main background of public discussion of the subject of employe relations bearing significantly upon what the officers and employes on this railroad have actually accomplished. Apparently the only interpretation of the term “collective bargaining” which is accept- able to organized labor as represented by the American Federation of Labor type of union, is that collective bargaining is only genuine when one party to the collective bargain is a national labor union. t 12 ] THE PENNSYLVANIA RAILROAD On the other hand, common sense would seem to show that real collective bargaining actually exists — regardless of unions — when the employes in a given industry are recog- nized and dealt with collectively through democratically nominated and elected repre- sentatives chosen by secret ballot and author- ized to speak and act for those who elected them. Such an application of the principle of collective bargaining gives every employe, whether he is a member of a labor union or not, equal opportunity to participate in what- ever collective bargain is made and to have a voice in making it. The other confines that privilege to the members in good standing of an organization which may or may not, and probably does not, include all the employes of a given group. It is in the broader sense of the term collective bargaining that the principle is applied on the Pennsylvania Railroad. When Is a Shop “Open” or “Closed”? Somewhat the same reasoning surrounds the use of the term “closed shop” and “open shop” which constantly arise and often becloud real honest efforts to promote industrial harmony. Following out logically the mistaken theory of collective bargaining just referred to, the aim 1 13 ] EMPLOYE REPRESENTATION ON is, of course, to make all the employes in an industry “members in good standing.” In some industries collective bargaining means just that, either actually — as in the case where only union men are employed — or effectually — as in the case of the check-off in the mining industry. Such a condition is known as the closed shop. Only union men need apply, A man’s right to work hinges on his union membership. By contrast, what is anathema to certain unions is what is known as the open shop, one in which a man’s membership or non- membership in a labor union is of no concern to the employer, where union and non-union men work side by side on equal terms and with equal rights and privileges. In this sense the Pennsylvania Railroad’s plan is an open shop. It is not open shop, however, in the sense in which the principle is some- times abused — namely, a shop which is open only to non-union men. As far as man’s inherent right to labor is concerned, such a shop is, of course, in the same category as the shop which is closed to the non-union man. * -* * Since the war, leaders of thought in the various churches have given no less consider- ation to the subject of industrial peace and the principles underlying its attainment than leaders of labor and industry. Perhaps the [ 14 ] THE PENNSYLVANIA RAILROAD best compilation of the views of leading churchmen in this country is contained in “The Annals of the American Academy of Political and Social Science” for September, 1922, under the general title, “Industrial Relations and the Churches.” Views of Churchmen on Industrial Cooperation This volume gives an exhaustive presenta- tion of views on this subject and embodies the official teachings of the Catholic and Prot- estant Churches and of Judaism. Its prepa- ration was in the special charge of the Rev. Dr. John A. Ryan, Director of the Depart- ment of Social Action, National Catholic Welfare Council, and the Rev. Ernest John- son, Research Secretary, Federal Council of Churches of Christ in America. In their “Summary and Afterword,” among other views, these two editors say: “The first step in this approach to a more democratic industrial order is found in the simple machinery of employe representation where a joint committee of management and men meets for a discussion of matters of mu- tual concern ” Speaking for the Protestant Churches, Dr. Johnson says in part that the church “calls upon Christian employers to give new recog- nition to the spiritual worth of their employes [ IS 1 EMPLOYE REPRESENTATION ON and particularly to the principle of collective bargaining and the sharing of the management of industry . . . Viewed in the light of the fundamental principles embodied in the Pennsylvania plan, the following excerpt from the Pastoral Let- ter of the American Catholic Hierarchy may also be of interest. Under the heading “Benefits of Association,” this letter says: “While the labor union or trade union has been, and still is, necessary in the struggle of the workers for fair wages and fair condi- tions of employment, we have to recognize that its history, methods and objects have made it essentially a militant organization. Benefits Derived from Closer Cooperation “The time seems now to have arrived when it should be, not supplanted, but supplemented by associations or conferences, composed joint- ly of employers and employes, which will place emphasis upon the common interests rather than the divergent aims of the two parties, upon cooperation rather than conflict. “Through such arrangements, all classes would be greatly benefited. The worker would participate in those matters of indus- trial management which directly concern him and about which he possesses helpful knowl- edge; he would acquire an increased sense of personal dignity and personal responsibility, take greater interest and pride in his work, and become more efficient and more contented. [ 16 ] THE PENNSYLVANIA RAILROAD “The employer would have the benefit of willing cooperation from, and harmonious re- lations with, his employes. The consumer, in common with employer and employe, would share in the advantages of larger and stead- ier production. In a word, industry would be carried on as a cooperative enterprise for the common good, and not as a contest between two parties for a restricted product.” Of the same tenor is a statement by a min- ister whose views are known to be favorable to the cause of organized labor. In his book entitled “Fair Play for the Workers,” the Rev. Percy Stickney Grant, of New York, says : “But trade-unionism cannot solve the Labor Question; for if it were to go to the limit of complete organization we should have this picture: On one hand, organized capital; on the other hand, organized labor — the two re- lated to each other by trade agreements or contracts. Can an industrial system be final in a democracy which separates citizens, who are supposed to be equal before the law and at the polls, into two opposing industrial camps ?” * * * More recently two authoritative reports on the subject of industrial cooperation have been published. One of these is the report of a special committee of the National Eco- nomic League on “Readjustment in Industrial Relations.” This report was the result of a [ 17 ] EMPLOYE REPRESENTATION ON vote taken among 500 members of the League on the following question : “Should there be active participation by employes or representatives of employes in all problems of management affecting the worker ?” 1,000 Concerns Have Employe Representation The report says in part: “Your committee finds that the movement for representation of employes in the discus- sion and adjustment of working conditions in business and industrial establishments through- out the United States has spread rapidly and that there are today about 1,000 concerns which have such plans in operation. These plans are distinct and apart from trade union agreements. “We find that experiments with employe representation, particularly since the war, have convinced managements, in the majority of cases where such plans have been tried, that it is highly desirable and valuable to give employes the opportunity to be heard when conditions affecting their immediate in- terests are under consideration. . . . “The best results were secured where the plans were voluntarily adopted by joint effort of managements and employes.” The Committee found that “industrial democracy” is an unsatisfactory term to apply to this development, as misleading, vague and not adequately expressive of conditions of 1 18 ] THE PENNSYLVANIA RAILROAD improved relationship between employer and employe. In this connection the Committee says : “In the opinion of the Committee it is un- wise to label current plans for improving re- lations with employes as ‘democratic.’ It would be much more desirable to speak of them as ‘cooperative plans,’ or ‘mutual plans.’ Where employes are given an opportunity to be heard through representative committees on ques- tions personally affecting them, it would be de- sirable to use the term ‘employe representa- tion.’ The real thing sought, however, is co- operation in management.” The second recent pronouncement is the report of the Committee on Employe Coopera- ation of the American Management Associa- tion, adopted at a convention of the Associa- tion in New York. This report also refers to the wide variety of literature on the gen- eral subject and the discussion of its terminol- ogy and progress. Principles Enunciated by Management Association By whatever name a plan of obtaining har- mony may be called, this Committee recom- mended that it should be built upon the follow- ing principles: 1. Employes should have opportunity to nominate and elect by secret ballot represent- atives from their own number. [ 19 ] EMPLOYE REPRESENTATION ON 2. The election of representatives should be so safe-guarded as to insure a free and uninfluenced choice. 3. These elected representatives should have regular meetings with representatives of the management. 4. Adequate methods should be provided for prompt settlement of any matters that fail of adjustment in local joint conferences. 5. The attitude of all those in managerial positions should be such as to permit fair, frank, open-minded consideration of any mat- ter coming within the scope of the plan. 6. No discrimination against any employe on account of race, sex, political or religious affiliation or membership or non-membership in any association, society or labor organiza- tion. 7. The employe representatives should be free to discharge their duties in an independ- ent manner. 8. Executives should not be relieved of their executive responsibility for carrying out deci- sions of the Joint Conferences as well as all other policies, principles and practices of the company. 1 20 ] THE PENNSYLVANIA RAILROAD From this necessarily brief and incomplete symposium of the views of individuals and groups who have in recent years devoted a great deal of thought to this subject of meth- ods whereby industrial peace may be assured, several considerations are of outstanding interest : Increasing Realization that Interests Are Mutual Far more important than the mean- ing of terms or the discussion of respec- tive rights is the spirit in which both employers and employes approach the recognized necessity for establishing means of living and working together in a peaceful, harmonious relationship. Instead of militant “sides” and con- flicting “parties,” it is essential that man- agement and men, realizing that their industrial interests are mutual, should enter upon the discussion and settlement of them in a co-operative rather than a combative spirit. As a means of putting such a spirit into practice more than labor union organization on a national scale is necessary, and employe representation in industry has come to be recognized as a successful method. [ 21 ] EMPLOYE REPRESENTATION ON II EMPLOYE REPRESENTATION ON THE PENNSYLVANIA RAILROAD Employe representation on the Pennsyl- vania Railroad is an accomplished fact. It is no longer an experiment. During the four years in which it has been in successful opera- tion, this plan of joint action between man- agement and men in all matters that mutually concern them, has become established as a going concern. It is now as vital and integral a part of this railroad as any section of the main line. Essential Features of Pennsylvania Plan In its essentials, the Pennsylvania policy and practice can be reduced to very simple terms : The management deals collectively with the men through employe representatives. These representatives must be bona fide employes. They are nominated by the employes themselves. They are elected by secret ballot by the votes of the employes. [ 22 ] THE PENNSYLVANIA RAILROAD Every employe, regardless of his member- ship or non-membership in any organization, is entitled to vote. Every employe, regardless of his membership or non-membership in any organization, is eligible to election. Any employe can belong to any union he desires. No employe is disqualified to vote, to be nominated, or to be elected because he happens to be a member or officer of any organization. The management simply insists upon deal- ing with the employes themselves through employe representatives and not with repre- sentatives of absentee organizations to which they may belong. Every important question affecting the employes’ wages and working conditions is settled by joint action of management and men. The highest authority on the railroad in the settlement of any question, whether it is between an individual employe and his imme- diate supervisory official or between any group of employes and the management as a whole, is a joint reviewing committee in each of the various departments of the service, equally representative of management and men. In these committees all members are on 1 23 ] A Pennsylvania Railroad Reviewing Committee in session. THE PENNSYLVANIA RAILROAD equal terms and a two-thirds vote is necessary to decide any question. In order that the questions which inevitably arise in such a large organization may be set- tled promptly and justly, regular monthly meetings are held between committees of employe representatives and representatives of the management, from the local supervisory official on up through division superintendents, general superintendents, general managers and the reviewing committees. The whole plan thus enables any individual employe to get a fair hearing by responsible officers, a prompt decision and if necessary a review and decision by a joint board of officers and duly elected repre- sentatives of the employes which has final authority to dispose of the case, without interference or veto by any executive officer of the company. Mutual Trust, Joint Facts and Fair Play In other words, the principle adopted by the Pennsylvania Railroad in dealing with its employes is just the time-honored method of discussing around a table, as friends and partners in a common enterprise, the facts of [ 25 ] EMPLOYE REPRESENTATION ON a situation for the purpose of reaching a common understanding. It is based on three things: Faith in each other, facts jointly established, and fair play. It substitutes these for industrial strife in the belief that mutual confidence, sympathetic understanding and real cooperation between management and men will not only directly benefit all who are connected with the railroad but also will effect a higher standard and a larger measure of service to the public. The fundamentals of the plan in actual practice are these : 1. An opportunity for all employes to have a voice in the management in matters in which they are directly concerned through employe representatives elected by them- selves regardless of whether they are union or non-union members. 2. Establishment of a mutually satisfactory method of promptly settling all controver- sial questions arising between management and men. 3. Establishment of a joint tribunal for each class of employes equally representative of employes and management, which is the final arbiter in the disposition of industrial disputes. The object is to develop on this rail- road such a spirit of cooperation be- tween the officers and the employes as [ 26 ] THE PENNSYLVANIA RAILROAD will result in good service to the public and at the same time give the employes all they can reasonably and fairly expect in wages, working conditions and in other surroundings that would satisfy a man’s ambition for himself and his family. Both management and men have come to realize that the way to make peace is to make peace- — not rules for a fight — and that there can be no misunderstanding between friends and partners. Responsibilities of Both Men and Management When this plan for joint handling of the relations between management and men was first discussed at a meeting with representa- tives of the engineers, firemen and hostlers, conductors, baggagemasters, brakemen and switchtenders on December 21, 1920, the mutual responsibilities of officers and employes were outlined as follows : “The duty of the management is threefold: “It has a direct duty to see that the cap- ital already invested shall be given a fair return. Surely that duty is owed to those who have intrusted their money to our care. Fur- ther, if a fair return is not paid, new capital for improvements, extensions and betterments cannot be obtained. [ 27 ] EMPLOYE REPRESENTATION ON “The management also has a duty to the public. If the railroad is granted reason- able and fair rates, the public in return is entitled to efficient and satisfactory service. “Last but not least, is the duty of the man- agement to the employes — that is, good wages, good working conditions and discipline impar- tially and fairly maintained. “Kindness, courtesy and consideration are not incompatible with good discipline. “The employes, equally with the management, have their responsibilities. “Given fair wages and fair working condi- tions the management has the right to expect and exact from employes an honest day’s work, prompt, willing and cheerful observ- ance of orders, economical use and care of the property intrusted to them. “The management has the right to ask the same kindness, courtesy and consideration to the officers and to the public on the part of the employes which the employes have the right to expect from their officers.” Referring to the Pennsylvania plan a few years ago the general chairman of one of the train service brotherhoods expressed very clearly the underlying purposes of it when he said : “Ignorance is the great cause of suspicion. It is not the known that is terrible, but always the unknown “Only by better acquaintance can a recog- nition of our mutual responsibilities be re- established. . . . [ 28 ] THE PENNSYLVANIA RAILROAD “One of the great defects of industry to-day is not that it is inhuman, but that it is un- human. One of the great needs is to human- ize industry; to deal with individuals not as cogs in a vast machine, but as human beings whose reserve, initiative and individuality are infinitely more valuable than the routine of a corps “The other great basis of our plan is that if two parties make an agreement, neither has the sole right of deciding what it means. “This plan is a recognition that the two parties who make these agreements have an equal right to decide what they intended by them “Every day it is bringing a clearer recog- nition to both the employes and the supervis- ory employes who are representing the man- agement of their mutual or cooperative respon- sibility because we are handling questions that vitally involve many of the functions of the management “The handling of the employe questions in this intimate manner brings closely to the rep- resentatives of the management many of the desires of the employes in a way that they could not get in any other manner.” Direct Dealing With P. R. R. Employes In order to make such a relationship a real- ity instead of a theory it is essential that the committees representing the employes get their orders from the bottom, from the employes themselves, from the men at work on this railroad, and do not have them handed down from the top or from outside individuals or [ 29 ] EMPLOYE REPRESENTATION ON interests that the management knows nothing about. Direct, frank and friendly relation- ships between employes and management can- not be maintained while there is interference on the part of persons or organizations having interests to serve other than those of the rail- road, its employes and the public. To give an adequate conception of the Pennsylvania plan it is necessary to trace briefly its origin against the background of what transpired prior to and during the time the railroads were operated by the govern- ment. Prior to federal control one of the distin- guishing features of the Pennsylvania Rail- road was its reputation of always treating its men fairly. It had an enviable esprit de corps. For many years there had been no serious strike or disagreement between the officers and the men. Every employe had the right of appeal to the general manager. Substantial justice was done to all and employes as a body Avere satisfied and Avorked in close co- operation Avith their officers. Employe Relations Prior to Federal Control Most of the employes of the Pennsylvania Railroad Avere not affiliated Avith any labor organizations. While many of the engine and train service employes Avere members of the [ 30 ] THE PENNSYLVANIA RAILROAD four brotherhoods, their committees had been well established on this railroad as far back as 1894. During all these years committees selected by the engine and train service employes were recognized as empowered to speak and act for them in all matters pertaining to wages, work- ing conditions and grievances. These com- mittees at all times were composed of actual employes. The management had satisfied itself that these committees actually repre- sented the Pennsylvania Railroad employes. It was also well known that the four brotherhoods were not affiliated with any or- ganizations committed to the closed shop, the sympathetic strike and limitation of output. Furthermore, at the end of federal control the same committees representing engine and train service employes continued practically intact and nothing had transpired to affect the rela- tionship already established between them and the management. On the other hand, although it had been understood that the status quo, as far as labor organizations were concerned prior to federal control, would be maintained on railroads dur- ing federal control, the fact is that organiza- tion of railroad employes of all departments into national and international unions was promoted under the Railroad Administration and railroad officers were practically ordered to keep their hands off. [ 31 ] EMPLOYE REPRESENTATION ON Federal Control Estranged Employes Under the Director General’s Order No. 8, active organization of railroad employes into trade unions was undertaken. No doubt a great many railroad employes were led to believe that federal control would be perma- nent. Their allegiance was transferred from the railroad companies by which they had been employed, to the Railroad Administration, and to national unions with headquarters in Washington. The result was that the management of the Pennsylvania Railroad at the end of federal control found national and international unions which countenanced and practiced the sympathetic strike, the closed shop and restric- tion of output superimposed upon Pennsyl- vania Railroad employes regardless of the employes’ desires. Representatives of these organizations assumed to speak and act for the Pennsylvania men. There was abundant evidence, however, that these organizations did not really repre- sent the sentiment and wishes of all the em- ployes on this railroad. Furthermore, the management was convinced that it was not in the interest of its service to the public which requires adequate, efficient, economical and un- interrupted transportation, to recognize or deal [ 32 ] THE PENNSYLVANIA RAILROAD with organizations which adhere to the three principles referred to in the preceding para- graph. Transportation Act Required Amicable Relations Meanwhile the Transportation Act of 1920 had become law. It required employes and management to get together and to adopt every reasonable means of settling amicably all con- troversial matters likely to interrupt transpor- tation. The management believed that it was impossible to carry out that injunction under existing conditions which constantly jeopar- dized amicable relations with its employes. The Transportation Act also established the United States Railroad Labor Board which found on its doorstep not only requests on the part of railroad unions for increases in wages, but also the so-called “national agreements.” The public had become convinced that these “agreements” were subversive of economical operation. The railroads in exhaustive hear- ings impressed upon the Labor Board the necessity of modifying them and after settling the wage question the Labor Board directed railroad managements and railroad employes to get together for the purpose of devising new regulations to take their place. Some months prior to the Labor Board’s de- cision respecting the so-called “national agree- [ 33 ] EMPLOYE REPRESENTATION ON merits,” the Pennsylvania management and the representatives of the employes of engine and train service, as a result of conferences between them, had established for these employes the basis of the Pennsylvania plan of employe representation which has since been extended to employes in all branches of the service. Formal Announcement of P. R. R. Plan In connection, therefore, with the Labor Board's decision, the management undertook to find out who the employes in all other branches of the service actually desired to have represent them in negotiations with offi- cers of the company. In a formal notice to the employes the management stated its belief: That it was the right of an employe to have a voice in determining the rules and regula- tions under which he shall work; That the so-called national agreements de- prived the employes of that right and the officers of the privilege of dealing with their own employes; That the aim of the Pennsylvania Railroad was to re-establish with its own men a happy and harmonious relationship; [ 34 ] THE PENNSYLVANIA RAILROAD That the decision of the Railroad Labor Board now made that possible and that while the immediate emergency to be covered was the negotiation of mutually satisfactory work- ing rules and regulations, it was the hope of the management that the men thus chosen as rep- resentatives might serve as the nucleus of com- mittees to confer frequently with the officers on all matters not only affecting the welfare of the employes but also the welfare of the railroad and the public. The management also announced the prin- ciples under which elections would be held and in order to work out the details, called into conference those who had been acting as spokesmen for the various classes of em- ployes. It was already evident to many of the Pennsylvania personnel that the plan adopted by the officers and the representatives of the engine and train service employes held out real advantages to all concerned. As a result of these conferences, details of the election machinery to be set up were worked out. Elections were held. Repre- sentatives were elected. New schedules cov- ering working conditions were negotiated. Joint committees were established. Procedure for subsequent elections was formulated. Step by step the whole system of employe repre- sentation was put into effect. 1 35 ] EMPLOYE REPRESENTATION ON III HOW THE PENNSYLVANIA PLAN ACTUALLY WORKS In actual practice the operation of the Pennsylvania Railroad Plan accomplishes two results. First, it provides a quick, orderly es- tablished method of settling the inev- itable differences of opinion that arise between management and men in any large organization. A fair hearing by a responsible officer, a prompt decision and, if necessary, an appeal to a final court, half of whose membership is composed of his fellow employes, are assured to every man who has an actual or fancied grievance. Second, the operation of the plan pro- vides means for constructive coopera- tion between officers and employes throughout the entire railroad organi- zation. The end may be simply better acquaintance, more sympathetic understanding of each other’s problems and point of view and confidence in each other’s sincerity. It may, in addition, be l 36 ] THE PENNSYLVANIA RAILROAD a real contribution toward improvement in service or more economical operation. Whether the one or the other, it must be conceded that both are worthwhile. There is growing evi- dence, too, of their actual attainment. Pennsylvania Plan a Joint Product From its inception the organization of the Pennsylvania Plan has been the joint product of conferences in which both management and men have participated. Essentially, the principles followed have been the same for all departments of the service although there are certain differences in their application. These differences result largely from the fact that in each department of the service representa- tives of men and management have jointly negotiated what seemed to them best consid- ering the conditions peculiar to their particular kind of work. For instance, the number of members of reviewing committees varies, as well as the times of election and terms of office of employe representatives. The whole plan is so conceived and carried out that every employe has an opportunity to exercise a voice in determining matters that affect his wages, working conditions and wel- fare as a Pennsylvania Railroad employe. In other words, under this plan, the employe down the line has an avenue C 37 ] EMPLOYE REPRESENT A 1' ION ON for the expression of his own views in negotiations on his behalf instead of having his views imposed upon him from the top down or by outside influ- ences. How Employe Questions Are Jointly Settled How the plan works may perhaps best be described by detailing the steps which are taken in the consideration of any question brought up by an employe. First : The individual employe with his immediate supervisory officer. Obviously, unless harmonious relations exist here on the ground, it is inconceivable that they can be brought about on a large scale. The policy of the Pennsylvania Railroad Com- pany is to encourage square dealing, first of all, in the closer and more intimate contact of the employe and his immediate superior. Therefore the first step to be taken by the employe is to place his case before the man- agement on the ground. Second: The local committee with the divi- sion superintendent. On each division there are local committees of employe representatives for all classes of employes. Usually the committee consists of three men, one of whom is the chairman, [ 38 ] THE PENNSYLVANIA RAILROAD elected as such either by the two other com- mitteemen or by the employes themselves at general elections. The local committee may act, of course, on behalf of an employe in the first step, that is, with his immediate supervisory official. But in the handling of employes’ matters the local committee’s relations are ordinarily with the division superintendent. Third : The general committee ivith the general superintendent. Matters carried beyond the division super- intendents are handled by what is known as the general committee. The general commit- tee in each class of the service is usually chosen by the local committeemen of the region or of the entire system. In some departments of the service there is a general committee for each of the four operating regions into which the Pennsylvania Railroad System is divided. In other departments the general committee is a system body. The general committee meets the general superintendents who have jurisdiction over two or more divisions. Fourth : The general committee with the general tnanager. The highest operating officer charged with direct responsibility in matters affecting employes is the general manager, who has l 39 ] EMPLOYE REPRESENTATION ON jurisdiction over an entire region and the Works Manager who has jurisdiction over Altoona works.f There are four general managers. If it is desired to carry an employe’s ques- tion beyond the general superintendent, the general committee takes it up with the gen- eral manager.^; Joint Committee Has Final Authority Fifth: The reviewing committee. This very properly has been referred to as the keystone of the arch of employe repre- sentation on the Pennsylvania Railroad. fThe General Committee of the Altoona Works, in settling any question among themselves, settle it in any way they see fit. After they arrive at an opinion, they try to negotiate that view of the subject with the Works Manager and, after meeting with him, either persuade him that they are right, or he persuades them that they are wrong. Up to this time that method of settling questions at issue has been satisfactory, not only to the railroad but to the General Committee. They have been told that whenever they are ready to form a Joint Reviewing Board for the Altoona Works the management would be glad to join with them. The employes have not seen fit to avail themselves of this privilege. They could have exercised it in the past and may exercise it in the future at any time they wish to do so. JIf an individual employe so desires he himself may handle his own case on appeal to the Superintendent, General Superintendent and General Manager. [ 42 ] THE PENNSYLVANIA RAILROAD Questions carried beyond the general man- ager go to the reviewing committees. These are joint committees in the respective classes. They are composed of an equal number of officers and employes, the latter being chosen by the employes themselves, usually through the general committees. The chairmanship alternates between the employe and manage- ment members. All members of a reviewing commit- tee have equal voting power. A two- thirds vote is necessary to decide any issue. The wisdom and fairness of the two-thirds vote provisions are obvious. If merely a majority vote were necessary to’ decide a mat- ter and the division in the committee was at all along partisan lines, the onus of the deci- sion would fall upon a single individual. If he were one of the employe representatives there might be insinuations of coercion. Under the two-thirds rule, however, if there is a division along “partisan” lines, the majority must convince at least three members of the other group before a decision can be reached. It is manifestly impossible for anyone to coerce almost half of such a unit. The reviewing committees are the highest authority on the railroad in the settlement of matters in dispute be- 1 43 ] i I a I 2 fa EMPLOYE REPRESENTATION ON tween employes and management. Their decisions are final. If the committee cannot, by a two-thirds vote, decide any question, it determines how the question shall otherwise be settled. This procedure takes various forms. The commit- tee may, for instance, name arbitrators or in- vestigators to go further into the matter and return their findings to the committee. Only six cases in four years have arisen which necessitated action beyond the routine procedure of the reviewing committee. In every one of these cases, however, the findings of the arbitrators or investigators named by the committee have been adopted by the committee by the neces- sary two-thirds vote. In four of these cases a sub-committee of the reviewing committee itself was named to report on the matter and decision was finally reached by the whole com- mittee as a result of the sub-committee’s report. Analysis of Decisions of a Joint Committee One of the employe members of the joint reviewing committee for the engine and train service employes recently made an analysis of the disposition of cases handled by this conv- [ 46 ] C/} u OS q q si 3 u in u. ZO a$ D j O'u JJ s< g* > on 0~ as q o < U n O on Z ' ^ £2 , < O a. fc< in> Oj 5| u 0. *>■> Q) I < E-N Ki. to ma, t^EO to in • c v ^ r to £ p o g o-S .S gwS w C m - Lh .« CO i— l— (j QJ d> uS rf i^rfco on «-h CO OO CO to ON tio rN (\i o cvi O 00 CO to ^J- MO OJ to s ^ S”H O 5 la a -s; 2^ o £ v o ^ ^ g* "a s 'GUJ <3 S Q O (_) S 2 Qs to e (0^3 s O Si^ 1 . .5 ^ r- a fcl p *o o o o o • « ° 03 to -*-* O Q* •5 £.2 « 0-0 s -J_ c cn |S ,2 "in -*-* O ■goo u C -- 3 *~ c/5 ’*■* 03 .5 > 00 »' IT) . H-2 I 0 00 &£ EMPLOYE REPRESENTATION ON mittee over a period of three years, which showed that practically all of the important decisions of the Reviewing Committee have been made with little or no dissenting votes. In the three years— 1921, 1922 and 1923, there were 808 cases docketed with the Joint Reviewing Committee. The Joint Committee rendered 579 decisions, the rest having been returned to be handled locally or disposed of locally. Of those 579 decisions, 302 or 52 per cent were in favor of the management; 201 or 35 per cent were in favor of the employes. Seventy-six or 13 per cent were neutral decisions, which did not support either the employes or the management. In making these 579 decisions, 243 or 42 per cent of them were by unanimous vote ; 104 or 18 per cent with but one dissenting vote; 72 or 12.4 with but two dissenting votes; 73 or 13 per cent were with but three dissenting votes; 55 or 9 per cent, with but four dissenting votes; 28 or 4.8 per cent were with five dissenting votes. A decision is rendered only by a two-thirds vote. Therefore, the committee having 16 votes, it requires 1 1 or more voting for one side. In the 579 cases handled, but 23 of them * were discipline cases, such a small number [ 48 ] THE PENNSYLVANIA RAILROAD that the total result, or its effect on the total number of cases, was entirely negligible. Notice that 60 per cent of the decisions were made with not exceeding one dissenting vote and only 14 per cent with four or more dis- senting votes. Referring to these and other facts about the reviewing committee’s work, he added : “That can not do other than convince every man of the absolute sincerity of both the management and the men in the application and working out of the Pennsylvania Plan.” Regular Meetings on Fixed Dates The system thus outlined is further or- ganized so that meetings of local committees with division superintendents, of general com- mittees with general superintendents and gen- eral managers, and the Works Manager, Al- toona, and meetings of reviewing committees are regularly scheduled a year in advance. In other words, on specified days in every month of the year every division superin- tendent meets a local committee representing employes in each class of service under his jurisdiction. Every month, also, the general superintendents and general managers are [ 49 ] jni Pate Review- ing Comm. GENERAL SUTEH DITarDENTS Sopt s . Gen. Mg r. B.Pa. Div. Con. Pa. Dlv. N. J. Dir* Son, Dlv# 1 Wed MW-TAS 2 Thn Opr 3 Prl Clk-Hso Clk-Msc Clk-Meo CUc-Meo 4 Sat INDEPENDENCE DAT 5 Sun 6 Mon ShOD 7 Tue Mao Shop 8 Wed Shop 9 Thu EAT Shop P.P. 10 Prl Shop 11 Sat 12 Sun 13 Mon B&T MW-TAS Opr 14 Tue Opr EAT 107-T&S 15 Wed MW-'MS Opr EAT 16 Thu MW-TAS Opr BStT 17 Prl Cllc 18 Sat 19 Sun 20 Mon 21 Tue Shop 22 Wed Clk-Mso 23 Thu EAT 24 Prl Opr 25 Sat 26 Sun 27 Mon Cllc BAT 28 Tue UW EAT(a) 29 Wed TAS 30 Thu Mso 31 Frl Shop NOVEMBER Bate Review- ing Conm. Gen. Mgr. GEKH 1AL SURE] 1INTENDE1 (JT3 Supts# E.Pa. Dlv. Cen.Pa. Dlv. N. J. Dlv. Son. Dlv. 1 Sun 2 Mob Shop 3 Tue ELECTION DAT 4 Wed Shop Opr 5 Thu Shop MW-T6S 6 Prl C lit -Mao CLk-Uso Clk-Hso Clk-Mso 7 Sat 8 Sun 9 Bon 10 Tue Mao Shop 11 Wed Shop 12 Thru EAT MW-T&S Opr P.P. 13 Prl ar-Ttf Set How Monthly Meetings Between Officers and Employe Representatives Are Scheduled in Advance. — Part of 1925 Calendar. THE PENNSYLVANIA RAILROAD meeting with general committees of similar representative capacity. And every month reviewing committees are meeting to settle questions which have come up on appeal. Under this plan it is impossible for division superintendents, general superintendents or general managers to evade meeting with employe representatives and hearing and act- ing promptly on matters affecting the employes. These meetings are as much a part of the railroad routine as the schedule of a train. They are spaced in point of time so that a question brought up by an employe can go through the whole course of procedure, through even the reviewing committee, in sixty to ninety days. This schedule also allows sufficient time between the various steps so that a joint submission of the case may be made to the next higher officer or to the reviewing committees five days in advance of the meet- ing with that officer or the meeting of the reviewing committee. This five days’ advance notice of matters to be discussed is a necessary requisite to its consideration. ***** The employe representatives who function on behalf of the employes under the Pennsyl- vania Plan are elected by the employes them- 1 51 ] EMPLOYE REPRESENTATION ON selves at regular elections under election pro- cedure jointly worked out by men and man- agement. As already pointed out, the management in its relations with employes is not concerned with their membership or non-membership in any organization. Any employe is eligible to vote for employe representatives. Any employe is eligible for election as employe representative. Election Procedure Like National and State Elections The essential thing is that the candi- dates be individual employes. It is almost inconceivable that, although this rule is fol- lowed in city, state and national elections, it should be called into question by some of those who criticise the Pennsylvania plan and main- tain that an employe should be permitted to vote for an organization as such as a can- didate. Yet it must be perfectly obvious that no such procedure is adopted by the government in its elections. When you go to the polls you do not vote for the Essex County Republican Club or the Eighteenth Assembly District Democratic Organi- zation. You vote for John Smith, who may 1 52 1 THE PENNSYLVANIA RAILROAD be the candidate endorsed by any organization so long as he fulfills the election requirements. In the employe representative elections on the Pennsylvania Railroad candidates who are employes may also be members of, or officers of, any organization. As a matter of fact voters could and did, in some instances, write the initials of their candidate’s organization after the candidate’s name on the ballot. Those ballots were counted. It is likewise true that many of those who have been elected and have served as employe representatives have been officers of labor unions. One of the outstanding benefits of the Pennsylvania plan is that every employe has an opportunity to vote for repre- sentatives. His representatives are not chosen for him merely by the votes of those who happen to belong to an organi- zation. At the same time there is no pro- hibition against an organization putting up candidates and campaigning for their election. Secrecy of Ballot Entirely Safeguarded Candidates are nominated by petition of their fellow employes. Names of candidates thus placed in nomination are printed on the official ballots. The management exercises [ 53 ] EMPLOYE REPRESENTATION ON no control or influence whatever over either the nominations or the elections. The man- agement neither suggests nor vetoes candi- dates, but candidates must, of course, be employes themselves and be willing to serve as employe representatives. The voter designates, as in city, state and national elections, the names he chooses from the list of candidates on the ballot. The voting is absolutely secret. In some instances voting booths are provided. In others voting is done by secret letter ballot. In the latter instance every possible safe- guard is thrown around the voting to insure the secrecy of a man’s choice. The voted bal- lot, unsigned, is placed in an envelope and sealed and this envelope is opened only by the joint tellers selected by employes and manage- ment. This envelope is enclosed in another envelope on which the voter writes his name, occupation and location. This is simply to enable a check to be made against the poll- list to make certain that only those entitled to vote actually have voted. This outer envel- ope is in turn enclosed in a third envelope ad- dressed in some instances to the division super- intendent and in others to the Tellers of Election, which is merely a convenient way of assembling the ballots at one point. The envelopes forwarded to the superintendent, after checking the names against the poll-list, [ 54 ] THE PENNSYLVANIA RAILROAD are in turn forwarded to the Tellers of Election. The second envelope containing the name of the voter is checked against the poll-list and then destroyed. The sealed envelopes containing the ballots are then opened by the Tellers of Election and no identification of an employe’s vote is possible. The ballots are counted by joint tellers appointed by employes and management and the results certified to and bulletined for the information of all con- cerned. It is perfectly clear, therefore, that if the employes so desire, they may nomi- nate and elect as members of the local committee fellow employes who may be members of, officers of, or non-members of, any organization. They may not, however, vote for an organization, as such, to represent them. Organization of Local and General Committees The local committees elect their chairmen and either these chairmen or all the local com- mitteemen themselves elect a general commit- tee and in turn a general chairman for either the region or the system, as the desire may be. The general committee elects the representa- tives to serve on the joint reviewing committee and the management names the management 1 55 ] EMPLOYE REPRESENTATION ON representatives. The machinery is then in working order. To some who have not seen how this scheme actually works, there still appears the bug-a- boo that after all is said and done these em- ploye representatives are still employes and dependent upon the management for their eco- nomic existence. In other words, it is inti- mated either that they have no economic power such as that wielded by an outside organization or that they cannot exercise it fearlessly. This point of view is founded on the mistaken notion that a strike is necessary to secure fair and just treatment under the Pennsylvania plan. This is not true. In the first place it is expressly understood in the agreements between the management and the employe representatives that they shall be entirely free and untrammelled in the exercise of their respective functions. In the second place, there exists unmistak- able evidence that the employes on the Penn- sylvania Railroad have real economic power. One piece of evidence is that in the disposi- tion of grievance cases, about half have been adjusted in favor of the employes. Another evidence is that wages and working conditions on the Pennsylvania Railroad are in some cases more favorable to the employes than on other railroads. Another evidence is that agreement has been made with the employes 1 56 ] THE PENNSYLVANIA RAILROAD in the handling of questions involving the sufficiency of piece work prices. Employe Representatives Free Agents Of course the real answer to critics of the Pennsylvania plan on the score of alleged lack of economic power of the employe representa- tives is that you cannot hoodwink turn hun- dred thousand men and get away wuth it. Looking at it from this standpoint it is probable that no other industrial rela- tions plan in the world goes to the limit of cooperative possibilities and respon- sibilities as does the Pennsylvania in the fact that to so large an extent final decisions are joint decisions. The representatives elected by the employes can confer with other workers in the same industry or with anyone else, at their option. A stipulation in the agreements between the management and employes, insures the work- ers the right to speak and act for the employes with absolute freedom and as their conscience dictates. This clause reads as follows: “It is understood and agreed that each representative shall be free to discharge his duties in an independent manner without fear that his individual relations with the com- pany may be affected in the least degree by any action taken by him in good faith in his representative capacity.” [ 57 ] EMPLOYE REPRESENTATION ON Employe representatives have in some in- stances gone far afield to confer with other workers in the same industry. They have conferred with representatives of the federal and state governments on questions of legisla- tion either proposed or under consideration, which they felt affected their interests. No one representing the management has insinuated to these employes or has directed them or in any other manner whatsoever indi- cated the management’s ideas as to how em- ploye representatives should conduct their own business. It can readily be learned that the employe representatives are speaking and act- ing for the collective conscience of the em- ployes they represent. Bargaining on this basis is absolutely free and untrammelled as the employes select their representatives and the management select their representatives. There is no restriction imposed by manage- ment on the comings and goings of these employe representatives and it would be quite impossible for the Pennsylvania management to control the conscience or indicate the men- tal attitude of the great number of represen- tatives who have been elected in the various classes of employes. In the elections of employe representatives held last year from 75 to 90 per cent of those [ 58 ] THE PENNSYLVANIA RAILROAD eligible to vote participated. This is a far greater percentage of actual voters than ordi- narily participates in city, state and national elections. Fact Finding Committees Result of Plan The spirit of cooperation and fair dealing engendered by the operation of the Pennsylvania plan has been extended to cover the settlement of the most vital questions that arise in the relations between men and management. For instance, the last wage adjustment affecting the train service employes was settled after a joint fact-finding committee equally representative of officers and em- ployes had been appointed to develop all the facts which they felt had a bearing on the question at issue. They examined officers of the company on financial matters, interviewed government officials and statistical agencies and employers and employes in outside indus- tries. Other fact-finding committees were ap- pointed in other classes to develop the facts bearing upon wage questions which they had raised. The question of prices for piece work has been similarly handled. A memorandum of [ 59 ] EMPLOYE REPRESENTATION ON understanding was negotiated on May 11, 1923, which provided for the settlement of all questions relating to the fairness of piece work prices by a joint committee equally representative of officers and men. Constructive Work of Employe Committees An outcome of the same discussion was the appointment of a joint committee of officers and men to look into the roundhouses through- out the system and recommend which ones should be on piece work and which on day work. The committee was also charged with recommending any improvements that they thought necessary to increase the efficiency of roundhouse operations. It must be evident from the foregoing that under the plan of employe representation thus carried out the employes have not been deprived of what is frequently referred to as “economic power.” After all, it is a question of sincerity. If the Pennsylvania plan were not founded on sincerity and good faith it would long since have toppled down, a failure. As a matter of fact, however, it is becoming a greater success every day. A few indications of its outstanding importance to the public which is 1 60 ] THE PENNSYLVANIA RAILROAD primarily interested in uninterrupted transportation service are these : 1 — In the Fall of 1921 the United States was threatened with a general strike of engine and train service employes on all railroads. The train service employes on the Pennsylvania Railroad voted against the strike. How the engine employes on the Pennsylvania Railroad voted is not known because the heads of the organizations did not announce it. 2 — In the summer of 1922 the country was plunged into a nation-wide strike of railroad shop men. On the Pennsylvania Railroad two- thirds of the shop employes refused to strike and service to the public was main- tained without serious interruption. This railroad handled not only its own busi- ness but a large part of that of other railroads whose service was more seri- ously affected by the strike of their employes. During the last few years there has also been increasing interest on the part of employes in the purchase of stock and other securities of the Company. [ 61 ] EMPLOYE REPRESENTATION ON IV COURT DECISIONS AFFECTING THE PENNSYLVANIA PLAN It was, perhaps, inevitable that the adop- tion of the Pennsylvania plan should arouse opposition in some quarters. No attempt to give a picture of this plan would be complete without at least a brief reference to this situation. Many of the reasons for this opposition have already been covered in the foregoing pages. Special reference has been made to the fact that certain labor unions imposed upon railroad employes during the period of federal control, countenance and practice the princi- ples of the closed shop, sympathetic strike, and restriction of output. Another reason is that representatives must be bona fide em- ployes. They are the only ones who are familiar with local conditions, the needs and desires of the employes and the requirements of the public which all serve. To deal with an organization as such in negotiations affecting employes is not to know with whom you are dealing. . Placing the name of an organization on the ballot as a candidate permits the organization itself to name the representatives. It deprives a great [ 62 ] THE PENNSYLVANIA RAILROAD many employes of an opportunity to partici- pate in the choice of their representatives. It carries with it no assurance whatsoever that the representatives so named will be employes. It would be equivalent to asking the voters who go to the polls to vote, not as they do now, for individuals, but for, say, the Republican or Democratic party. Consequently, when the Pennsylvania man- agement sought to find out the individuals whom the employes desired to have represent them in negotiations covering wages and work- ing conditions, certain organizations whose officers had during federal control assumed to speak and act for Pennsylvania men re- sented what they regarded as interference with their prerogatives. It became for them a matter of retaining their positions and power. Union Officers Eligible if Also Employes If the Pennsylvania employes desired these union officers as individuals to represent them, and if these officers were employes and were able to poll sufficient votes, nothing in the Pennsyl- vania Men and Management Plan pro- hibited them from running for office as employe representatives. 1 63 ] EMPLOYE REPRESENTATION ON In several outstanding instances, the offi- cers of the shop crafts and clerks’ unions refused to submit their representative capacity to the test of a secret, impartial election. Instead, they openly endeavored to prevent the employes from exercising their right of franchise. Notwithstanding these efforts, employe rep- resentatives were elected in all classes of the service and as already pointed out, participa- tion of the employes in the 1924 elections amounted to from 75 to 90 per cent of those eligible to vote. In this connection it should be remembered, however, that it is the ma- jority of those voting who elect candidates and that city, state and national elections are not void because all of those who are entitled to vote do not actually exercise that privilege. Labor Board’s Order Violated Employe Representation When the union officers who had declined to participate in the elections found them- selves without a constituency and without rec- ognition as an organization, they appealed to the United States Labor Board. The Labor Board sustained their plea to the extent of ordering the Pennsylvania Railroad to hold a new election, to adopt a ballot which the Labor Board prescribed, to permit the name of the union to appear on the ballot as an I 64 ] THE PENNSYLVANIA RAILROAD organization candidate, to permit men who had long since ceased to be Pennsylvania employes to vote and to declare void the con- tracts which the Pennsylvania management and employe representatives had entered into although these agreements were mutually satisfactory and were in successful operation. The company’s objection to the decision of the Board was based on the grounds that: It was contrary to the fundamental prin- ciples of employe representation. It made a national labor union whose offi- cers are not employes eligible to represent Pennsylvania men. It discriminates in favor of the union itself as a candidate and against the non-union candidate. If the union as an organization were elected, the non-union man would have no voice in de- termining the conditions under which he must work and organization officers, regardless of location or affiliation, would represent the employe in negotiating with the management. It would give thousands of men who were no longer employes an opportunity to vote on equal terms with men who are employes. The whole effect of the ballot required under the decision would be to compel the non-union man to join the union in order to have a voice in matters affecting his welfare. It violated a fundamental right of employer and employes to deal directly with each other in settling their own affairs. [ 65 ] EMPLOYE REPRESENTATION ON 1 1 would destroy the validity of contracts freely entered into between the officers of this rail- road and their employes although these con- tracts are mutually satisfactory. It would not be fair to the employes or to the railroad, to say nothing about the public. Believing that its constitutional rights and those of its employes were being invaded, the management protested to the Labor Board, but without avail. The Labor Board, realiz- ing that its directions were not being complied with, was empowered under the Transporta- tion Act to publish the fact that the Pennsyl- vania was violating its decision. In order to prevent such publication the management appealed to the federal courts for an in junction restraining the Labor Board from carrying out its proposed action. The District Court upheld the Pennsylvania’s con- tention. The Circuit Court of Appeals re- versed it, and the company then appealed to the United States Supreme Court. In effect, the Supreme Court upheld the Pennsylvania Railroad in its right to deal with its employes as individuals. It also held, however, that the Labor Board was without power to enforce its decision ; that its decisions were merely advisory, and that therefore the Board had the right to publish the fact that the Pennsylvania had violated its decisions if the Board felt there had been violation. t 66 ] THE PENNSYLVANIA RAILROAD Supreme Court Upheld Individual Representation The Supreme Court rendered its decision on February 19, 1923. The court held that the Labor Board had jurisdiction to render the decision which it had rendered in the shop crafts case but also held that the com- pany was not obliged to comply with the deci- sions of the Board if it felt that its constitu- tional and legal rights would be invaded thereby. Two of the most important pronounce- ments of the court were these: “The counsel for the company insist that the right to deal with individual representa- tives of its employes as to rules and work- ing conditions is an inherent right which cannot be constitutionally taken from it. The employes, or at least those who are members of the labor unions, contend that they have a lawful right to select their own representatives, and that it is not within the right of the company to restrict them in their selection to employes of the company or to forbid selection of officers of their labor unions qualified to deal with, and protect their interests. This statute certainly does not deprive either side of the rights claimed.” And : “The statute does not require the railway company to recognize or to deal with, or confer with labor [ 67 ] EMPLOYE REPRESENTATION ON unions. It does not require em- ployes to deal with their employers through their fellow employes.” Notwithstanding these findings, the Labor Board immediately assumed that the decision of the Supreme Court had completely vindi- cated the Labor Board and proceeded to issue a decision to the effect that the Pennsylvania Railroad Company had violated the Labor Board’s decision. This decision was issued in spite of the fact that the employe representa- tion plan to which the Labor Board objected had then been in operation for more than two years; that it was actually working to the satisfaction of the vast majority of the em- ployes; that peaceful relations had been established between management and men, and that by mutual agreement wages and working conditions had been satisfactorily negotiated. Subsequently, repeated efforts have been made by representatives of the unions affected to force recognition of them as organization representatives upon the company. Court Upholds Direct Dealing With Employes The United States Supreme Court in a decision handed down on March 2, 1925, upheld the right of the management and employes of the Pennsylvania Railroad Sys- [ 68 ] THE PENNSYLVANIA RAILROAD tem to deal with each other directly through committees elected under the plan of employe representation jointly adopted by the company and its employes. In this decision the court re-affirmed its previous ruling in the Penn- sylvania Railroad-Labor Board Case that the company was not obliged, under the Trans- portation Act, to recognize, confer with, or to deal with labor unions. The court’s decision disposes of two suits instituted against the company by the shop- crafts’ and clerks’ unions. These organiza- tions attempted by injunction to prevent the management from dealing with Pennsylvania Railroad employes through employe represen- tatives elected by secret ballot and to compel recognition of and negotiation with the unions as such, as representative of the employes. The two cases were identical in that the unions maintained that while under the Supreme Court’s previous ruling decisions of the Labor Board were not mandatory, the preliminary steps leading up to a decision by the Board were mandatory. These cases were originally begun in the Federal District Court which denied the unions’ application for injunctions. On appeal the United States Circuit Court of Appeals sustained the lower court and the Supreme Court has now affirmed the findings of both lower courts. [ 69 1 EMPLOYE REPRESENTATION ON Referring to its previous decision the Supreme Court said: “It is clear from this language that in the Labor Board case this court has decided that there is nothing compulsory in the provisions of the statute as against either the company or the employes upon the basis of which either acquired addi- tional rights against the other which can be enforced in a court of law. . . The court says further that when the labor provisions of the Transportation Act are taken as a whole, “they may be searched through in vain to find any indication in the mind of Congress or any intimation that the disputants in the controversies to be anticipated were in any way to be forced into compliance with the statute or with the judgments pronounced by the Labor Board, except through the effect of adverse public opinion.” Commenting upon the unions’ claim that the steps preliminary to a decision by the Labor Board were enforceable, the court says : “This very point was considered by us in the Labor Board case and . . . the same sanction, therefore, of publication and public opinion, exists for them and nothing else.” 1 70 1 Appendix THE PENNSYLVANIA RAILROAD Typical set of By-Laws covering relations between management and employes under Pennsylvania Plan of Employe Representation. THE ASSOCIATION OF SHOP CRAFT EMPLOYES OF THE EASTERN REGION PENNSYLVANIA RAILROAD SYSTEM EXCLUDING HOBOKEN SHOPS Copy of Memorandum of Understanding Covering Method to be Followed in the Handling of Questions Between the Pennsylvania Rail- road System Management, Eastern Region, and its Mechanics, Helpers and Apprentices in the Maintenance of Equipment Forces (Exclud- ing Hoboken Shops) Preamble. In order to form an organization to establish satisfactory working conditions, adjust differences as they may arise, and promote a mutual under- standing between the management of the Pennsyl- vania Railroad System and the Maintenance of Equipment forces of the Eastern Region, these By-Laws are adopted. [ 73 ] EMPLOYE REPRESENTATION ON Title. This association shall be known as “The Asso- ciation of Shop Craft Employes of the Eastern Region, Pennsylvania Railroad System.” ARTICLE I. MEMBERSHIP. Section 1. All Mechanics, Helpers and Appren- tices who are actively engaged in the Maintenance of Equipment forces, Eastern Region, Pennsylvania Railroad System, who are not regularly filling a supervisory position, shall be entitled to member- ship in this association. Sec. 2. Membership in this association shall terminate on severance of employment in the serv- ice of the company or upon assuming a status in conflict with membership requirements, as defined in Section 1 of this article. ARTICLE II. REPRESENTATION. Section 1 . Employes who are entitled to mem- bership in this association, as defined in Article I, in each craft on each Division, shall be entitled to elect from among their number three (3) repre- sentatives to represent their craft on their Division. Sec. 2. Representatives shall be elected for a term of one (1) year and shall be eligible for re-election. Sec. 3. In case of a vacancy on any Local Committee, the vacancy shall be filled by the remaining members of said committee by appoint- ment. In the event they cannot reach a decision [ 74 ] THE PENNSYLVANIA RAILROAD or in the event that there are two (2) or more vacancies occurring on one Local Committee at the same time, the vacancy or vacancies shall then be filled by the Regional General Committee. Sec. 4. A representative shall be deemed to have vacated office upon becoming ineligible to membership in this association, as defined in Article I. ARTICLE III. QUALIFICATIONS OF VOTERS AND REPRESENTATIVES. Section 1. All employes who are entitled to par- ticipate in this association, as provided in Article I, shall be entitled to petition for nominees and vote at all elections. Sec. 2. Those employes who are entitled to par- ticipate in this association, who have had two (2) years or more continuous service with the company prior to the date of election, or appointment, who are American citizens and who are twenty-one (21) years of age or over on the date of election, or appointment, shall be eligible to the office of repre- sentative. Sec. 3. Members of each craft in this associa- tion shall be entitled to vote only for those repre- sentatives who are to represent that craft. ARTICLE IV. NOMINATIONS AND ELECTIONS. Section 1. Nominations and elections shall be held annually in the month of April. Sec. 2. Nominations shall be held on the first Tuesday and election on the fourth Tuesday in the month named. In the event of either of these ['75 1 EMPLOYE REPRESENTATION ON days being a holiday, the day immediately follow- ing shall be substituted. Sec. 3. Nominations and elections shall be con- ducted by the members of this association in accord- ance with rules and regulations prescribed by the Regional Joint Committee, acting as a Rules Com- mittee, with only such assistance from the manage- ment as may be required by said committee. Sec. 4. Elections shall be by secret ballot and so conducted as to avoid undue influence or inter- ference with voters in any manner whatsoever and to prevent any fraud in the counting of ballots. Sec. 5. Nominations shall be by petition. Peti- tions signed by twenty-five (25) qualified voters in a craft on a Division where there are one hun- dred (100) or more qualified voters, or by twenty- five per cent (25%) of the qualified voters in a craft on a Division where there are less than one hundred (100) qualified voters, shall be sufficient to place the name of the one petitioned for upon the ballot for that craft on that Division. Sec. 6. The election ballot for each Division shall contain the names of all those placed in nomination by each craft as a result of petition on that Division. Sec. 7. The number of candidates for which a voter is entitled to vote shall be stated on the ballot. If this number is exceeded the ballot shall be void. Sec. 8. The voter shall indicate his preference on the election ballot by placing a cross (X) opposite the name or names of the candidates he wishes to elect. Any other mark or marks shall render the ballot void. Sec. 9. The Regional Joint Committee, acting as a Rules Committee, shall determine: [ 76 ] THE PENNSYLVANIA RAILROAD (a) The type and location of ballot boxes and voting booths. (b) The hours during which the voting will be conducted. ( c ) The form of letter ballot to be used by those voting by mail. (d) The conditions under which a voter will be permitted to vote by mail. Sec. 10. The candidate or candidates receiv- ing the highest number of votes in each craft shall be declared elected. In the event of a tie, the Regional Joint Committee, acting as a Rules Com- mittee, shall order a special election to break the tie. At this special election only the names of the candidates who are tied will appear on the ballot. Sec. 11. In the event of a controversy arising concerning any nomination or election, it shall be referred to and decided by the Regional Joint Committee, acting as a Rules Committee. Sec. 12. Immediately following the counting of ballots, the Regional Joint Committee, acting as a Rules Committee, shall prepare an election certifi- cate, a copy of which shall be furnished each repre- sentative elected, a copy posted on bulletin boards and a copy furnished to the Division Superin- tendents. ARTICLE V. LOCAL COMMITTEES. Section 1. The elected representatives of each craft on each Division shall constitute the Local Committee for that craft on that Division and shall meet the third Tuesday in May for the pur- pose of organizing. At this meeting each of the Local Committees shall elect a Chairman from among their number to serve one (1) year. [ 77 ] EMPLOYE REPRESENTATION ON Sec. 2. There shall also be elected on the third Tuesday in May of each year, a Division Chair- man and a Division Secretary, who must be members of the Local Committee; they to be elected by the majority of Local Committeemen assembled. Sec. 3. The Division Chairman shall preside at all meetings when all crafts are assembled. In matters where all crafts are involved he shall act as spokesman and be assisted by the Local Committee. The Local Craft Chairman shall make a report monthly to the Division Chairman of all cases handled. The Division Chairman in turn to make a monthly report to the Regional General Chairman of all cases handled on his Division. Sec. 4. Meetings of the Local Committees may be called by their Chairman as occasion demands. ARTICLE VI. THE REGIONAL GENERAL COMMITTEE. Section 1. The Regional General Committee shall be composed of a General Chairman repre- senting all crafts together with a General Craft Chairman from each respective craft. Sec. 2. The General Chairman representing all crafts shall be elected for a term of two (2) years by the Local Committee Chairmen of all crafts. Sec. 3. The General Craft Chairman of each craft shall be elected for a term of two (2) years by the Local Committee Chairmen of that craft. Sec. 4. The General Chairman and the General Craft Chairmen shall be elected by the Region Council to be held on the third Tuesday in June of each odd numbered year, beginning with 1923. [ 78 ] THE PENNSYLVANIA RAILROAD Their term of office to begin on July 1st of each odd numbered year. Sec. 5. The Regional General Committee shall be elected from among the Local Chairmen, or the retiring Regional General Committee, or both. Sec. 6. In case of a permanent vacancy in the office of General Craft Chairman, the General Chairman shall convene the Local Chairmen of the craft represented by the vacant office for the purpose of filling the vacancy. In cases of tem- porary vacancy in the office of General Craft Chairman, the General Chairman shall fill said vacancy by appointment, with the approval of the Regional General Committee. Sec. 7. The Regional General Committee at its first meeting after its election shall elect a Vice- General Chairman from among its members to serve for two (2) years, said service commencing with the date of election of the committee. Sec. 8. The Vice-General Chairman shall assist the General Chairman and shall preside in his absence. In the event of a permanent vacancy in the office of General Chairman, the Vice-General Chairman shall fill the unexpired term. Sec. 9. Meetings of the Regional General Com- mittee may be called by the General Chairman as occasion demands. ARTICLE VII. REGIONAL JOINT COMMITTEE. Section 1 . The Regional General Committee, together with an equal number of representatives appointed by the management, shall constitute the Regional Joint Committee. Sec. 2. The officers of the committee shall con- sist of a Chairman and a Vice-Chairman, who [ 79 ] EMPLOYE REPRESENTATION ON shall be elected for terms of six (6) months each. The election will be held at the regular meeting of the committee in July and January of each year and the Chairman and Vice-Chairman will take office immediately upon election. Sec. 3. The office of the Chairman shall be filled alternately from the representatives of the management and the representatives of the employes. While the office of Chairman is being filled by the representative of the management, the office of Vice-Chairman shall be filled by a representative of the employes; likewise when the office of Chairman is being filled by a representa- tive of the employes, the office of Vice-Chairman shall be filled by a representative of the manage- ment. Sec. 4. A Secretary shall be appointed by the Regional Joint Committee who shall not be a mem- ber of the Committee. Sec. 5. Stated meetings of the Regional Joint Committee shall be held on the first Monday, bi-monthly, throughout the year, commencing with the July meeting each year. Sec. 6. Special meetings of the Regional Joint Committee may be called by the Chairman, or, in his absence, by the Vice-Chairman, as occasion demands. Sec. 7. The management and the employes will have equal voting power and not less than two- thirds vote will be necessary to reach a decision. Sec. 8. A quorum of the Regional Joint Com- mittee shall consist of not less than five (5) repre- sentatives of the management and five (5) repre- sentatives of the employes. Sec. 9. In the event, at any meeting of the Regional Joint Committee, one or more members are absent and their absence destroys the balance [ 80 ] THE PENNSYLVANIA RAILROAD of representation between the management and employes, the Committee shall decide how to re- establish that balance. ARTICLE VIII. PROCEDURE FOR ADJUSTMENT. Section 1 . If an employe is not satisfied with the decision of his superior officer on any contro- versial matter, he may place same in the hands of the Local Committee of his craft, which is authorized to handle such matters on the Division on which the question arose. Sec. 2. The Local Committee on a Division will arrange to handle the matter with the Division Superintendent, if said committee deems it proper. Sec. 3. In the event that the Local Committee on a Division cannot effect a satisfactory settle- ment with the Division Superintendent, a joint submission will at once be prepared showing: (1) Question at issue. (2) Joint statement of agreed-upon facts. (3) Position of Local Committee. (4) Position of Division Superintendent. All joint submissions on individual craft matters shall be signed by the Local Craft Chairman. A copy of this join! submission shall be for- warded : (a) By the Division Superintendent to the Gen- eral Superintendent. ( b ) By the Local Committee to the Regional General Committee. Sec. 4. The Regional General Committee may handle matters coming from the Local Committees before the General Superintendents and, failing a [ 81 ] EMPLOYE REPRESENTATION ON satisfactory settlement, a joint submission will at once be prepared showing: (1) Question at issue. (2) Joint statement of agreed-upon facts. (3) Position of Regional General Committee. (4) Position of General Superintendent. All joint submissions on individual craft matters shall be signed by the General Craft Chairman. A copy of this joint submission shall be for- warded by the General Superintendent to the General Manager. Sec. 5. The Regional General Committee may handle matters not satisfactorily adjusted with the General Superintendents before the General Man- ager and, failing a satisfactory settlement, a joint submission will at once be prepared showing: (1) Question at issue. (2) Joint statement of agreed-upon facts. (3) Position of Regional General Committee. (4) Position of General Manager. All joint submissions on individual craft matters shall be signed by the General Craft Chairman. A copy of this joint submission shall be for- warded to the Secretary of the Regional Joint Committee. • Sec. 6. Matters relating to the interpretations of regulations, that are agreed upon between any Superintendent, General Superintendent or the General Manager and his respective Committee, shall be referred directly to the Regional Joint Committee for review in the form of a joint sub- mission showing: (1) Question at issue. (2) Joint statement of agreed-upon facts. [ 82 ] THE PENNSYLVANIA RAILROAD A copy of this joint submission shall be for- warded by the Committee in question to the Sec- retary of the Regional Joint Committee for promul- gation to all members of said Committee. Sec. 7. Matters relating to interpretations of regulations, where no interpretations have been given by the Regional Joint Committee, and where there is a disagreement between any Superinten- dent, General Superintendent or the General Manager and his respective Committee, shall be referred directly to the Regional Joint Committee for decision in the form of a joint submission showing : (1) Question at issue. (2) Joint statement of agreed-upon facts. (3) Position of the Committee in question. (4) Position of Superintendent or General Sup- erintendent in question or the General Manager. A copy of this joint submission shall be for- warded by the Committee in question to the Sec- retary of the Regional Joint Committee for promul- gation to all members of said Committee. Sec. 8. The Regional Joint Committee shall handle matters referred to it, as provided in Sections 5, 6 and 7 of this article. Sec. 9. In- case a decision is not reached by the Regional Joint Committee not later than subsequent bi-monthly meeting at which the case was first brought up, further procedure will be had as determined upon at the time of such disagreement. ARTICLE IX. THE REGION COUNCIL. Section 1. The Chairmen of the Local Com- mittees on the Region shall constitute the Region Council. [ 83 ] EMPLOYE REPRESENTATION ON Sec. 2. The General Chairman and Vice-Gen- eral Chairman of the Regional General Committee shall act in their respective capacities as officers of the Region Council. The General Craft Chair- men shall preside at meetings of their respective crafts. Sec. 3. The Region Council shall meet at the call of its Chairman when, in his judgment, the occasion demands or when he is instructed to do so by a majority vote of the Regional General Committee. A stated meeting of the Region Coun- cil shall be held for the purpose of electing a General Chairman and General Craft Chairmen on the third Tuesday in June of each odd num- bered year beginning with 1923. Sec. 4. The Region Council, through the Gen- eral Chairman and General Craft Chairmen, shall conduct the negotiations with the management cov- ering changes in rates of pay or working condi- tions and act upon such other matters as may from time to time be referred to it. Sec. 5. A quorum of the Region Council shall consist of not less than a majority of the members thereof. ARTICLE X. CENERAL. Section 1. In all cases where a meeting of a committee is scheduled for a certain day and that day is a holiday, the day immediately following shall be substituted. Sec. 2. Unless otherwise specified, terms of Local Committeemen shall date from the third Tuesday in May, beginning with the year 1925. Sec. 3. Matters may be referred to the various committees by officials of the company. [ 84 ] THE PENNSYLVANIA RAILROAD Sec. 4. It is understood and agreed that each representative shall be free to discharge his duties in an independent manner without fear that his individual relations with the company may be affected in the least degree by any action taken by him in good faith in his representative capacity. Sec. 5. Local Committees and the Regional General Committee shall give the respective com- pany officers with whom they meet not less than five (5) days’ notice of matters they wish to handle with said company officers and, in a like manner, all company officers shall give not less than five (5) days’ notice of matters they wish to handle with said committees. ARTICLE XI. AMENDMENTS. Section 1. Amendments to these By-Laws may be made by the Regional Joint Committee after thirty (30) days’ notice of the proposed amend- ments has been given to members of said Com- mittee. Sec. 2. Amendments to these By-Laws may be proposed by any member of the Regional Joint Committee, by the Regional General Committee, any Local Committee, or by petition of any fifty (50) members of this association to the Regional Joint Committee. These By-Laws shall regulate the relations between the management of the Pennsylvania Rail- road System, Eastern Region, and the members of [ 85 ] EMPLOYE REPRESENTATION ON this association on and after October 22, 1923, and shall continue in full force and effect until changed as provided in Article XI. For the Management: For the Employes: C. S. Krick, T. H. Davis, General Manager. General Chairman. I. L. Fleming, General Chairman. Blacksmiths. John J. McBride, General Chairman, Machinists. W. W. Cline. General Chairman. Boilermakers. P. M. Hughes, E. C. Arnold, General Chairman, Sheet Metal Workers. E. R. Snyder. General Chairman, Carmen. General Chairman. Electrical Workers. THE PENNSYLVANIA RAILROAD Copy of Memorandum of Understanding Covering Method to be Followed in the Handling of Questions Between the Pennsylvania System Management and its Employes in Engine and Train Service. Preamble : 1. The outline of the method in which contro- versial matters are to be handled as given below is for the purpose of expeditious adjustment of matters presented, to the end that there may be a satisfied spirit among the officers and employes, and it is important, therefore, that so far as is possible, decisions will be reached at the time of meeting, such decision to be confirmed in writing as promptly thereafter as is possible. 2. This plan for handling schedule and other matters can be successful only by full and con- scientious co-operation on the part of both the Management and the employes, and it is expected that when questions are presented for disposition that the spirit of absolute fairness will be the factor in adjusting these matters. DIVISIONAL HANDLING. Monthly Meetings — Superintendent and Local Chairmen : 3. Each Division Superintendent will hold joint monthly meetings with the Local Chairmen repre- senting the Engineers, Firemen, Hostlers, Conduc- tors, Trainmen and Switchtenders, for the purpose of disposing, if possible, of all controversial matters arising on the division, and these matters may be [ 87 1 EMPLOYE REPRESENTATION ON placed before the meeting by either the employes or the Superintendent. 4. The Local Chairmen will furnish the Super- tendent not less than five days in advance of the meeting a list of the questions they desire to discuss and the Superintendent will likewise advise all Local Chairmen not less than five days in advance of the meeting of the questions he desires to have discussed. Schedule — Method of Handling When There is no Disagreement: 5. Questions relating to schedule matters which are discussed and agreed upon between the Super- intendent and Local Chairmen will be placed in effect at once and referred by them to the Joint Reviewing Committee immediately for review with a joint statement prepared by the Superintendent and Local Committee stating the case at hand and giving their reasons for such agreement. Copies of this joint submission will be furnished the Local Chairman, the General Superintendent and the General Manager. Schedule — Method of Handling When There is Disagreement: 6. In cases where the Superintendent and Local Committee are not agreed that the language of a schedule rule exactly covers the situation at hand, and there having been no interpretation placed on same by the joint Reviewing Committee, they will at once prepare and refer to the Joint Review- ing Committee for decision a joint submission showing: (1) joint statement of agreed-upon facts; (2) position of Committee; (3) position of Super- intendent. Copies will be furnished the Local Chairman, General Superintendent and General Manager. [ 88 ] THE PENNSYLVANIA RAILROAD Interpretations of Schedule — Method of Han- dling When There is Disagreement: 7. In cases where the Superintendent and Local Committee are not agreed that an interpretation that has been placed on a Rule by the Joint Reviewing Committee exactly covers the situation at hand, a joint statement will at once be prepared by the Superintendent and the Local Chairman showing: (1) joint statement of agreed-upon facts; (2) position of Local Chairman or Committee; (3) position of Superintendent. Copies of this joint submission will be furnished the Superinten- dent and Local Chairman. If further action is taken on the case it will be with the General Superintendent. Discipline Appeals— Method of Handling: 8. Discipline matters subject of appeal by Local Chairman will be handled in accordance with schedule regulations, or may be handled at the monthly meetings providing the employe involved has complied with the regulations covering the method of appeal from discipline. 9. In the event the Local Chairman is not satisfied with the decision of the Superintendent on a' discipline case, joint statement will at once be prepared by the Superintendent and the Local Chairman showing: (1) joint statement of agreed- upon facts; (2) position of Local Chairman or Committee; (3) position of Superintendent. Copies of this joint submission will be furnished the Superintendent and Local Chairman. If further action is taken on the case it will be with the General Superintendent. Note. — In discipline cases arising on the Phila- delphia Terminal Division and the Pittsburgh Terminal Division appeal from the decision of the Superintendent will be made by the General Chair- [ 89 ] EMPLOYE REPRESENTATION ON man to the General Manager. In discipline cases arising at Altoona Works appeals from the decision of the Works Manager will be made to the Works Manager as General Manager by the General Chairman. Other Than Schedule and Discipline Matters — Method of Handling: 10. In addition to schedule and discipline mat- ters, all other controversial questions will be handled at the Superintendent’s monthly meeting. In case Local Chairman or Committee is not satis- fied with the Superintendent’s decision, joint sub- mission will be made in the same form as outlined in Paragraph 9. GENERAL DIVISIONAL HANDLING. Monthly Meetings — General Superintendent and General Chairmen: 11. Each General Superintendent will hold joint monthly meetings with the General Chairmen representing the Engineers, Firemen, Hostlers, Conductors, Trainmen and Switchtenders for the purpose of disposing, if possible, of all contro- versial matters referred to him by the General Chairmen and upon which the Superintendent and the Local Chairmen have been unable to agree. Questions for discussion will be referred to the General Superintendent by the General Chairmen not less than five days in advance of meeting and the General Superintendent will likewise furnish the General Chairmen a list of questions he desires to discuss not less than five days in advance of meeting. Other Than Schedule Matters — Method of Handling: 12. In the event the General Chairman is not satisfied with the decision of the General Super- intendent on any controversial matters, other than [ 90 ] THE PENNSYLVANIA RAILROAD schedule matters, referred to the General Super- intendent by the General Chairman, such cases will at once be jointly referred by the General Superin- tendent and the General Chairman to the General Manager giving: (1) joint statement of agreed- upon facts; (2) position of Committee; (3) position of General Superintendent. Copies of this joint submission will be furnished the General Chairman. Schedule — Method of Handling When There is No Disagreement: 13. Questions relating to schedule matters which are discussed and agreed upon between the General Superintendent and the General Chairmen will be placed in effect at once and referred by them to the Joint Reviewing Committee immediately for review with a joint statement prepared by the General Superintendent and General Committee, stating the case and giving their reasons for such agreement. Copies of this joint submission will be furnished the General Chairman and the General Manager. Interpretations of Schedule — Method of Han- dling When There is Disagreement: 14. In cases where the General Superintendent and General Committee are not agreed that an interpretation that has been placed on a rule by the Joint Reviewing Committee exactly covers the situ- ation, a joint statement will at once be prepared by the General Superintendent and the General Chairman and referred to the General Manager giving: (1) a joint statement of agreed-upon facts; (2) position of Committee; (3) position of General Superintendent. Copy of this joint submission will be furnished the General Chairman. [ 91 ] EMPLOYE REPRESENTATION ON REGIONAL HANDLING. Monthly Meetings — General Manager and General Chairmen: 15. Each General Manager will hold joint monthly meetings with the General Chairmen repre- senting the Engineers, Firemen, Hostlers, Conduc- tors, Trainmen and Switchtenders for the purpose of disposing, if possible, of all questions which have been submitted to him by the General Chair- men as a result of disagreeing with decisions of the General Superintendent. General Chairmen will furnish the General Manager not less than five days before meeting, a list of subjects to be discussed and the General Manager will likewise furnish list to the General Chairmen not less than five days before meeting, of questions he desires to discuss. Schedule and Other Matters — Method of Han- dling When There is Disagreement: 16. All controversial matters, including those referred to in Paragraph 7, which have been appealed to the General Manager as a result of the General Superintendent and General Commit- tee not being able to arrive at a common under- standing will, if not disposed of between the General Manager and the General Chairmen, be referred by them to the Joint Reviewing Committee for decision, giving: (1) joint statement of agreed- upon facts; (2) position of Committee; (3) posi- tion of General Manager. Copies of this joint submission will be furnished the General Chairman. Schedule — Method of Handling When There is No Disagreement: 17. Questions relating to schedule matters which are discussed and agreed upon between the General Manager and the General Chairmen will be placed [ 92 ] THE PENNSYLVANIA RAILROAD in effect at once and be referred by them immedi- ately to the Joint Reviewing Committee for review with a joint statement prepared by the General Manager and the General Committee stating the case and giving their reasons for such agreement. Copies of this joint submission will be furnished the General Chairman. JOINT REVIEWING COMMITTEE. Interpretations— Promulgation of: 18. Interpretations of schedule matters made by the Joint Reviewing Committee will be promul- gated to all interested railroad officers. A suffi- cient number of copies of these interpretations will be furnished the General Chairmen for distribution to their Local Chairmen. SCHEDULE OF MONTHLY MEETINGS. 19. The schedule of monthly meetings for the purpose of carrying out the provisions set forth above will be arranged so as to afford the General Chairmen sufficient latitude to satisfactorily cover the schedule of meetings and to the end that the cases may be carried through monthly meetings to the Joint Reviewing Committee, if necessary, without delay. MAKE-UP OF JOINT REVIEWING COMMITTEE. 20. The Joint Reviewing Committee shall con- sist, for the Management, of two representatives from each Region of the System; for the employes, the General Chairmen of the Engine and Train Service Employes which, as at present constituted, consists of nine (9) members. [ 93 ] EMPLOYE REPRESENTATION ON METHOD TO BE FOLLOWED BY JOINT REVIEWING COMMITTEE. 21. In all matters other than discipline the entire Committee will sit. 22. In cases of discipline the representatives of the Management in the Region where the case arises, together with the representatives of the employe involved in that Region where the case arises, will not sit on the Committee but will present the case to the remaining members of the Committee, who will hear and determine the matter at issue. 23. The Management and the employes will have equal voting power and not less than a two- thirds vote will be necessary to reach a decision. 24. In case a decision is not reached by the Joint Reviewing Committee not later than subse- quent monthly meeting at which the case was first brought up, further procedure will be had as deter- mined upon at the time of such disagreement. 25. Meeting place of the Joint Reviewing Com- mittee will be fixed from time to time by the Committee. The Joint Reviewing Committee will begin at once to function on all questions submitted except interpretations of schedules, and will function on schedule interpretations when the System schedules are completed. The foregoing becomes effective January 1, 1921, and shall remain in full force and effect until after thirty days’ notice has been given by either party to the other of a desire to change. [ 94 ] THE PENNSYLVANIA RAILROAD For the Management: For the Employes: C. S. Krick, General Manager, Eastern Region. R. E. McCarty, General Manager, Central Region. T. B. Hamilton, General Manager, Northwestern Region. I. W. Geer, General Manager, Southwestern Region. P. F. Smith, Jr., Altoona Works Manager. Wm. Park, General Chairman, B. of L. E. H. R. Karns, General Chairman, B. of L. E. Hugo W. Pfenning, General Chairman, B. of L. E. S. C. Cowen, General Chairman, O. R. C. W. T. Saul, General Chairman, O. R. C. H. E. Core, General Chairman, B. of L. F. & E. D. D. Miller, General Chairman, B. of L. F. & E. R. A. Knoff, General Chairman, B. of R. T. C. E. Musser, General Chairman, B. of R. T. December 29, 1920. [ 95 J i