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The board is composed of 36 members, 18 representing, chosen, and compensated by the carriers and 18 representing, chosen, and compensated by the so-called standard railway labor organizations.

The first, second, and third divisions are composed of 10_members each, equally divided between representatives of labor and management. The fourth division has six members, also divided. The law establishes the headquarters of the adjustment board at Chicago, Ill. A report of the board's operations for the past fiscal year is contained in appendix A.

When the members of any of the four divisions of the adjustment board are unable to agree upon an award on any dispute being considered, because of deadlock or inability to secure a majority vote, they are required under section 3, first (1), of the act to attempt to agree upon and select a neutral person to sit with the division as a member and make an award. Failing to agree upon such neutral person within 10 days, the act provides that the fact be certified to the National Mediation Board, whereupon the latter body selects the neutral person or referee.

The qualifications of the referee are indicated by his designation in the act as a "neutral person." In the appointment of referees the National Mediation Board is bound by the same provisions of the law that apply in the appointment of arbitrators. The law requires that appointees to such positions must be wholly disinterested in the controversy, impartial, and without bias as between the parties in dispute. Lists of all persons serving as referees on the four divisions of the adjustment board are shown in appendix A. During its 31-year existence the adjustment board has received 63,486 cases and has disposed of 57,240. This was a decrease of 314 over those cases on hand at the close of the previous year. Table 9, this report, shows that 1,885 cases were disposed of in fiscal 1965: 1,326 by decision and 559 by withdrawal. In the fiscal year 1965, 1,571 new cases were received compared with 1,731 received during fiscal 1964.

3. SPECIAL BOARDS OF ADJUSTMENT

Special boards of adjustment may be created by carriers and labor organizations during mediation proceedings as an arbitration procedure set up to dispose of dockets of claims and grievances.

The number of special boards of adjustment created has increased to a marked degree as a result of the decision of the U.S. Supreme Court, BRT v. CRI RR. Co. (353 U.S. 30).

Special boards of adjustment can be set up promptly to dispose of disputes which normally would be sent to the National Railroad Adjustment Board for adjudication. During the past fiscal year the board created 59 new special boards of adjustment. Approximately 2,565 cases which normally would have been presented to the National Railroad Adjustment Board were disposed of by special boards of adjustment during the past year.

A list of all persons appointed by the National Mediation Board during the fiscal year to serve as arbitrators on special boards of adjustment is shown in appendix B. Included also in appendix B is a list of arbitrators appointed to special boards of adjustment created under section III of Arbitration Award No. 282 to resolve disputes relating to the Crew Consist Issue (other than engine service).

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4. AIRLINE ADJUSTMENT BOARDS

There is no national adjustment board for settlement of grievances of airline employees as for railway workers. Section 205 of the amended act provides for establishment of such a board when it shall be necessary in the judgment of the National Mediation Board. Although these provisions have been in effect since 1936, the Board has not deemed a national board necessary.

Gradually, over the years, as more and more crafts or classes of airline employees have established collective bargaining relationships, the employees and carriers have agreed upon grievance handling procedures with final jurisdiction resting with a system board of adjustment. Such agreements usually provide for designation of neutral referees to break deadlocks. Where the parties are unable to agree upon a neutral to serve as referee, the National Mediation Board is frequently called upon to name such neutrals. Such referees serve without cost to the Government and although the Board is not required to make such appointments under the law, it does so upon request in the interest of promoting stable labor relations on the airlines. With the extension of collective bargaining relationships to most airline workers, the requests upon the Board to designate referees have increased considerably.

A list of all persons designated by the National Mediation Board to serve as referees with system boards of adjustment is shown in appendix B.

VIII. ORGANIZATION AND FINANCES OF THE NATIONAL MEDIATION BOARD

1. ORGANIZATION

The National Mediation Board replaced the U.S. Board of Mediation and was established in June 1934 under the authority of the Railway Labor Act, as amended.

The Board is composed of three members appointed by the President, by and with the advice and consent of the Senate. The terms of office, except in case of a vacancy due to an unexpired term, are for 3 years, the term of one member expiring on July 1 of each year. An amendment to the act approved August 31, 1964 (78 Stat. 748), provides: "upon the expiration of his term of office, a member shall continue to serve until his successor is appointed and shall have qualified." The act requires that the Board shall annually designate one of its members to serve as chairman. Not more than two members may be of the same political party. The Board's headquarters and office staff are located in the National Rifle Association Building, Washington, D.C., 20572. In addition to its office staff, the Board has a staff of mediators who spend practically their entire time in field duty.

Subject to the Board's direction, administration of the Board's affairs is in charge of the executive secretary. While some mediation conferences are held in Washington, by far the larger portion of mediation services is performed in the field at the location of the disputes. Services of the Board consists of mediating disputes between the carriers and the representatives of their employees over changes in rates of pay, rules, and working conditions. These services also include the investigation of representation disputes among employees and the determination of such disputes by elections or otherwise. These services as required by the act are performed by members of the Board and its staff of mediators. In addition, the Board conducts hearings when necessary in connection with representation disputes to determine employees eligible to participate in elections and other issues which arise in its investigation of such disputes. The Board also conducts hearings in connection with the interpretation of mediation agreements and appoints neutral referees and arbitrators as required. The staff of mediators, all of whom have been selected through civil service, is as follows:

A. Alfred Della Corte
Chas. M. Dulen
Clarence G. Eddy
Lawrence Farmer
Eugene C. Frank
Arthur J. Glover
Edward F. Hampton
James M. Holaren
Matthew E. Kearney
Thomas C. Kinsella
Warren S. Lane

Geo. S. MacSwan
Raymond McElroy
J. Earl Newlin
Michael J. O'Connell
William H. Pierce
Rowland K. Quinn, Jr.
Judson L. Reeves
C. Robert Roadley
Tedford E. Schoonover
Frank K. Switzer
Luther G. Wyatt

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For the fiscal year 1965 the Congress appropriated $2,022,000 for administration of the Railway Labor Act.

Obligations and expenses incurred for the various activities of the Board were as follows: mediation, $710,366; voluntary arbitration and Emergency Boards, $361,137; adjustment of railroad grievances, $844,912.

Accounting of all moneys appropriated by Congress for the fiscal year 1965, pursuant to the authority conferred by "An act to amend the Railway Labor Act approved May 20, 1926" (amended June 21, 1934);

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Supplemental appropriation_..

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Accounting for all moneys appropriated by Congress for the fiscal year 1965, pursuant to the authority conferred by "An Act to amend the Railway Labor Act, approved May 20, 1926."

Regular appropriation: National

portion of salaries and expenses, National Mediation Board.

Transferred from National Mediation Board for First Division Fire

[Approved June 21, 1934]

Railroad Adjustment Board's

$819, 000

15,000

11,000

845, 000

$430, 527

254, 975

36, 496

Travel expenses (including referees).

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40, 734

393

13, 437

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