ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, March 27, 1990                   TAG: 9003272077
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A2   EDITION: METRO 
SOURCE: Associated Press
DATELINE:                                 LENGTH: Medium


COURT TO TAKE RAIL-MERGER CASE

The U.S. Supreme Court agreed Monday to determine whether railroads can ignore union contracts to complete government-approved mergers - based on a Norfolk Southern action in Roanoke and a CSX move in Kentucky.

The court said it will review a ruling by the U.S. Circuit Court of Appeals in Washington involving its decision last July for unions in two 1986 cases.

The appeals court action restrains railroads and the Interstate Commerce Commission from overriding collective bargaining agreements, The Associated Press said.

About 10 supervisors' jobs in Roanoke were eliminated when the Norfolk and Western and Southern railways announced plans to merge operations centers in Roanoke and Atlanta.

These plans violated a labor contract with NW, according to the American Train Dispatchers Association.

In the second case, the ICC had approved in 1980 the acquisition by CSX Corp. of the Chessie System and Seaboard Coast Line Industries. In 1986, CSX decided to close its freight car repair shop at Waycross, Ga., and to transfer work done there to a Chessie System shop in Raceland, Ky.

The transfer meant eliminating jobs and transferring some Waycross workers to Raceland. Transferred workers were told they no longer could count on lifetime income guaranteed by the contract signed by CSX and the Brotherhood of Railway Carmen.

The ICC in both cases said the railroads were exempt from the union contracts.

But the appeals court said Congress has not given the ICC such broad power "with so much potential to destabilize the railroad industry."

It ordered further review by the ICC in both cases.

The Bush administration urged the Supreme Court not to disturb the appeals court ruling.



 by CNB