| Description: 
 
 AGREEMENT Between UNION PACIFIC RAILROAD COMPANY And The UNITED TRANSPORTATION UNION (C&T) Effective December 1, 1988, it is agreed the basic Crew
 Consist Agreement between the parties dated September 15, 1980,
 is amended as follows for the territory Hinkle North (Fourth and
 Fifth Seniority Districts and Spokane International).
 ARTICLE I
 CREW CONSIST
 (1) The basic crew consist for all crews operated on theterritory north of Hinkle shall be one (1) conductor/foreman and
 one (1) brakeman/helper, subject to the provisions of Article VI.
 (2) There shall be no car count or train length limitationsin the operations of trains with crews of one conductor/foreman
 and one brakeman/helper.
 ARTICLE II
 SEPARATION ALLOWANCE
 (1) Beginning November 1, 1988, the Company will solicitfor a period of thirty (30) days voluntary separation requests
 from eligible employees. The amount of the separation allowance
 shall be an amount equal to the greater of the employee I s
 earnings on the territory Hinkle North during either the 1986 or
 1987 calendar years, subject to all applicable taxes . There
 shall be a $25,000 minimum separation allowance (subject to all
 applicable taxes).
 (2) Under this Article II, an employee eligible for aseparation allowance is an active or furloughed employee holding
 seniority on the territory north of Hinkle, and who is a
 protected employee under the basic crew consist agreement
 effective September 15, 1980.
 (3)(a) Eligible employees applying for the separationallowance under (1) above may elect to receive the allowance in
 one lump sum payment or elect to receive it in four (4) equal
 amounts over a two (2) year period.
 (b) Any employee who wishes to accept the separationallowance in four (4) equal amounts must give the designated
 officer notice when making application.
 ARTICLE III
 GUARANTEED EXTRA BOARD
 (1) Existing extra boards shall be replaced and GuaranteedCombination Road Yard Extra Boards shall be established.
 (2) The guaranteed mileage on these Guaranteed ExtraBoards shall be the equivalent of 1700 miles per pay period at
 the Conductor's Traveling Switch Engine rate of pay. Guaranteed
 Extra Board pay will be prorated for days the employee is on the
 Guaranteed Extra Board.
 (3) Payment of the guarantee shall be made in the payrollhalf following the payroll half in which the guarantee payment
 was incurred.
 (4) The Reserve Board as provided for in Article IV ofthis Agreement will not be used to supplement the Guaranteed
 Extra Boards.
 (5)(a) The Carrier shall regulate the number of employeeson the Guaranteed Extra Boards, but the carrier shall ensure
 that a sufficient number of employees are on the Boards to
 protect the service and to allow for reasonable layoffs.
 Employees recalled from furlough or used in emergency service
 while furloughed will create a position(s) on the board for a
 period of seven (7) days.
 (b) After 120 days, the parties shall make the initialadjustments in the Guaranteed Extra Boards. Adjustments may be
 made earlier by mutual agreement. If a Guaranteed Extra Board
 is reduced on the initial . adjustment, the number of Guaranteed
 Extra Board employees who were working on June 1, 1988, who are
 reduced shall be added to the Reserve Board at the location of
 the Guaranteed Extra Board. The minimum number of Reserve Board
 positions will increase accordingly.
 (c) Local Chairmen and Carrier Representatives willmeet, if requested by either party, after the Guaranteed Extra
 Boards have been placed into operation to discuss all problems
 and will work to solve any problem that may exist.
 (6)(a) All earnings received by an employee assigned to aGuaranteed Extra Board will be used in computing the employee's
 guarantee. Such computations will not include non-taxable
 income such as meal, lodging and personal auto mileage payments.
 A Guaranteed Extra Board employee standing first out who lays
 off on call, misses call or is not available for call will have
 the guarantee reduced by the amount he would have earned had he
 not laid off on call, missed call or not been available for
 call, with a minimum reduction of one guaranteed day.
 (b) An employee ,"ho misses a call as a result of anotherGuaranteed Extra Board employee laying-off on call, missing call
 or not available for call when that other Guaranteed Extra
 Employee is first out or an employee who lays off when other
 than first out will have his guarantee reduced by one (1) day
 for each 24-hour period or portion thereof.
 (c) The guarantee reductions shall not apply for absencesdue to Bereavement Leave, Personal Leave Days, Vacations,
 Rules Classes, Jury Duty, Physical Examinations or other
 instances where the employee is held at the instruction of the
 carrier.
   ARTICLE IVRESERVE BOARD
 (1) The Carrier shall establish Reserve Board(s) forEmployees working on the territory north of Hinkle and who are
 protected under the basic Crew Consist Agreement effective
 September 15, 1980, subject to the following conditions:
 (a) An employee on the Reserve Board shall be paidwhichever is the greater of the following two options:
 (i) 70% of the basic yard helper's rate for five daysper week; or,
 (ii) 70% of the employee's earnings on this territoryduring the calendar year 1986 or 1987, whichever
 is greater.
 (iii) No other payments shall be made to or on behalfof an employee on the Reserve Board except for
 payment of premiums under applicable health and
 welfare plans. No deductions from pay shall be
 made on behalf of a Reserve Brakeman/Switchman
 except for deductions of income, employment or
 payroll taxes (including railroad retirement
 taxes) pursuant to federal, s tate or local law,
 deductions of dues pursuant to an applicable
 union shop agreement and any other deductions
 authorized by agreement; and, any other legally
 required deduction. Employees assigned to the
 Reserve Board shall be eligible for the carrier.'s
 Tuition Aid Program.
 (b) An employee placed on the Reserve Board shall remainin that status until:
 (i) The employee is discharged from employment by theCarrier in accordance with the applicable discipline
 rules.
 (ii) The employee resigns from the Carrier's employment. (iii) The employee is recalled to active service. Suchrecall shall be in reverse seniority order in
 accordance with Paragraph (c) of this Article IV.
 (iv) The employee is placed in a furlough statusbecause of a reduction of assignments. For
 example, if the number of jobs is reduced from 10
 to 9, the employees whose assignment is reduced
 shall have a free exercise of seniority.
 Seniority displacements shall continue until the
 junior employees are furloughed, only if there
 are no vacant positions on the Reserve Board.
 (v) The employee exercises seniority in accordancewith Paragraph (1) of Article VII of this Agreement.
 (vi) The employee exercises seniority in accordancewith Paragraph (2) of Article VII of this Agreement.
 Any employee so exercising seniority
 cannot return to the Reserve Board until the next
 "Sadie Hawkins Day" unless the employee is
 displaced or a vacancy occurs on the Reserve
 Board.
 (c) Employees on the Reserve Board must maintain theirwork proficiencies while in such status, including successfully
 completing any retraining or refresher programs the Carrier may
 require and passing any tests or examinations (including physical
 examinations) administered for purposes of determining
 whether such proficiencies have been maintained. Employees on
 the Reserve Board must hold themselves available for return to
 service upon thirty (30) days' notice (Reserve pay shall continue
 for only seven (7) days) and must return to service in
 compliance with such thirty (30) days' notice. Failure to
 comply with any of these requirements will result in forfeiture
 of all seniority rights. Employees will be recalled from the
 Reserve Board to protect their Seniority District only and will
 not be forced to other Seniority Districts . It is recognized
 that employees on the Fourth and Fifth Districts have prior
 rights and these prior rights will be recognized in the
 application of the foregoing.
 (d) Other employment while on the Reserve Board ispermissible so long as there is no conflict of interest. There
 shall be no offset for outside earnings.
 (e) Vacation pay received while on the Reserve Boardwill offset pay received under Paragraph 1 (a) . Time spent in
 reserve status will not count toward determining whether the
 employee is eligible for vacation in succeeding years. It will
 count in determining the length of vacation to which an employee,
 otherwise eligible, is entitled.
 (f) Employees on the Reserve Board are not eligible forHoliday Pay, Bereavement Leave, Jury Pay, and all other similar
 special allowances.
 (g) Employees on the Reserve Board are covered by Healthand Welfare Plans, Union Shop, Dues Check-Off, Discipline Rules
 and the Grievance Procedures that are applicable to employees in
 active service.
 (h) An employee on the Reserve Board who is eligible fora full annuity under the Railroad Retirement Act shall continue
 to be eligible for the Reserve Board except that in addition to
 other authorized deductions there also shall be deducted the
 amounts the employee could have received from Railroad Retirement.
 (i) It is understood that furloughed employees who are"protected" employees under the basic Crew Consist Agreement
 shall be eligible to place on the Reserve Board upon recall,
 seniority permitting.
 (j) It is understood the Reserve Board will not operatewhen all protected employees on the appropriate Seniority Roster
 on the date of this Agreement are placed on either a Guaranteed
 Extra Board position or a regular job.
 (k) Reserve Boards shall be established at the followinglocations:
 Spokane, WashingtonWalla Walla, Washington
 (1) The maximum number of Reserve Board positions ateach location shall be determined as follows: The total number
 of employees holding regular or extra board positions at that
 location on June 1, 1988, less the number assigned to conductor/foreman
 or first brakeman/helper positions and to Guaranteed
 Extra Board positions at that location when this agreement is
 implemented and less the number of employees working on June 1,
 1988, receiving a separation allowance as provided for in
 Article II of this Agreement.
 ARTICLE V
 PRODUCTIVITY FUND/SPECIAL ALLOWANCE
 (1) For each tour of duty or trip operated on the territorynorth of Hinkle with a crew consist of one (1) conductor/foreman
 and one (1) brakeman/helper over the number of
 employees on the Reserve Board, the Company will pay into the
 appropriate Employee's Productivity Fund the sum of $53.25. For
 example, if there were 10 local and extra assignments, yard
 jobs and pool turns, and 10 employees on the Reserve Board, no
 payments would be made. If there were a total of 10 local
 and extra assignments, yard jobs and pool turns, and 5
 - 5 -employees on the Reserve Board, payments would be made into the
 Employee's Productivity Fund for 5 local and extra assignments,
 yard jobs and pool turns on a tour of duty/trip basis in
 accordance with the basic Crew Consist Agreement.
 (2) The Productivity Fund payments will be made inaccordance with the basic Crew Consist Agreement.
 (3) The Special Allowance payments provided for in thebasic Crew Consist Agreement shall apply to crews operated with
 one (1) conductor/foreman and one (1) brakeman/helper under this
 Agreement.
 ARTICLE VI
 IMPLEMENTATION
 (1) (a) Prior to December 1, 1988, the Carrier shallbulletin to employees under this Agreement the opportunity to
 select one of the following options: regular job, Guaranteed
 Extra Board or Reserve Board.
 (b) Assignments to positions shall be made by senioritypreference. It is understood all regular must-fill jobs and
 Guaranteed Extra Board positions must be filled initially by
 working employees as provided by schedule rules.
 (c) The Carrier shall have the right to blank one secondbrakeman/helper assignment for each regular-assigned (not
 including extra board) employee selecting the Reserve Board
 option. As the Reserve Board(s) are attrited, crew consist
 requirements shall be governed by Article I of this Agreement.
 (2) The carrier will not reduce the number of positionsbelow the June 1, 1988 levels as a result of implementation of
 this agreement. Employees may be furloughed as a result of a
 subsequent reduction in the number of regular jobs and
 Guaranteed Extra Board positions except as provided in Article
 III, Section 5(b).
 (3) The total number assigned to the "Guaranteed ExtraBoard" will be determined and agreed upon by the Director of
 Labor Relations and the General Chairman.
 ARTICLE VII
 VACANCIES
 (1) (a) When permanent vacancies occur on a regular mustfill job, (conductor/foreman and first brakeman/helper positions),
 Guaranteed Extra Board position or Reserve Board,
 employees may elect, by seniority option, to fill the vacancy.
 If the vacancy is not filled, it will be filled by the recall of
 a furloughed employee. If the vacancy is filled, the
 resulting vacancy will be processed immediately following the
 above-described procedure. This process will continue until a
 furloughed employee is recalled. If no furloughed employee is
 available, the junior employee among those holding second
 brakeman/helper positions and the Reserve Board at that Reserve
 Board location will be assigned. If no such employee is
 available, the junior employee for that prior rights territory
 among those holding second brakeman/helper positions or the
 remaining Reserve Board will be assigned. The application
 process, rather than bulletins, shall be used to fill these
 vacancies.
 (b) Employees recalled from the Reserve Board shall havethe right to expercise their seniority and take any position held
 by an employee with less seniority .
 (c) No temporary vacancies on any blankable secondbrakeman/second helper position to which an employee is
 regularly assigned shall be filled .
 (2) For eligible employees on the territory north ofHinkle, there shall be a so-called "Sadie Hawkins Day" each
 June 1 and December 1. The "Sadie Hawkins Day" shall operate
 only for employees wishing to exercise seniority to or from a
 Reserve Board. Local Chairmen will work with Carrier "representatives
 in the implementation of "Sadie Hawkins Day . " It is
 understood that an employee on one Reserve Board may not place
 on another Reserve Board, unless displaced.
 ARTICLE VIII
 GENERAL
 (1) Nothing in this Agreement is intended to modify orsupersede the Basic Crew Consist Agreement of September 15,
 1980, and the Crew Consist Agreements of August 25, 1964, and
 March I, 1968, or the UTU(C&T) Schedule Agreement except where
 specifically amended by the provisions of this Agreement.
 ( 2) It is understood this Agreement is not a precedent for any other negotiation and will not be cited by either party in
 any other negotiation.
 (3) This agreement shall become effective and will continuein effect until revised or amended by agreement of the
 parties or in accordance with the Railway Labor Act.
 Signed at Portland, Oregon, this 28th day of October, 1988.FOR THE ORGANIZATION
 /s/ L. L. Nelson
 General Chairman
 /s/ L. D. McKillip
 Local Chairman (4 th Dist.)
 /s/ E. R. Kirby
 Local Chairman (5 th District – Spokane International)
 FOR THE CARRIER:/s/ W. S. Hinckley
 Director of Labor Relations
 /s/ W. E. Naro
 Director Employee Relations/Planning
   Agreed Upon
 Questions & Answers
 1. Q. For each buyout accepted under Article II of theagreement, is the minimum number of Reserve Board
 positions reduced on a one-for-one basis?
 A. Yes, for each active employee working on the territorycovered by this agreement; no, for any furloughed
 employee.
 2. Q. Does a protected employee, as provided by the basiccrew consist agreement, have the option to place on
 either the reserve board or the second brakeman
 position?
 A. Yes, if the employee has the seniority. 3. Q. In the application of Article III, Guaranteed ExtraBoard, if the Carrier reduces the Board at the initial
 120 day adjustment, would those positions reduced from
 the Guaranteed Extra Board be added to the Reserve
 Board?
 A. Yes, if working on June 1, 1988 or covered by SideLetter 14.
 4 . Q. After the initial 120 day adjustment, will the numberof available Reserve Board positions ever fall below
 this number?
 A. No. 5. Q. If the Carrier adjusts the Guaranteed Extra Boardafter the initial 120 day adjustment, is the Reserve
 Board adjusted accordingly?
 A. No. 6. Q. What options are available to employees if there aresubsequent reductions in positions?
 A. Exercise of seniority as at present.
 7. Q. What options are available to eligible employees whocannot hold a must-fill position, the Guaranteed Extra
 Board or the Reserve Board as a result of the reduction
 of the number of regular jobs?
 A. The employee goes furloughed in the same manner ashe/she would before this agreement unless he/she has
 rights under the protective provisions of the
 August 25, 1964 and March 1, 1968 Crew Consist
 Agreements.
 8. Q. If an employee is displaced, may he/she displace to aReserve Board?
 A. Yes. 9 . Q. If an employee works part of the year, qualifies for avacation and is on the Reserve Board for a part of the
 year, is Reserve Board pay included in the computation
 of the employee's 1/52 for vacation purposes?
 A. Reserve Board pay is not counted towards qualifyingfor a vacation but will be included in the computation
 of their 1/52.
 10. Q. If an employee qualifies for vacation but is on theReserve Board when it comes time for their vacation,
 how will he/she be compensated?
 A. The employee will receive vacation pay as calculatedunder the vacation agreement. The employee will not
 receive Reserve Board pay in addition to the vacation
 pay.
 11. Q. Will the Productivity Fund payments be used as anoffset for any guarantee provisions?
 A. No. 12. Q. If an employee voluntarily exercises seniority fromthe Guaranteed Extra Board to a temporary vacancy, is
 the employee entitled to the Guarantee provisions of
 Article III of this Agreement?
 A. No, they have removed themselves from availability onthe Guaranteed Extra Board.
       #1 Mr. L. L. NelsonGeneral Chairman, UTU(C&T)
 937 S.E. Ankeny Street, Suite 4
 Portland, OR 97214
 Dear Sir:
 Paragraph (l)(a)(ii) of Article IV provides an employeeon a Reserve Board shall receive "70% of the employee's earnings
 on that territory during the calendar year 1986 or 1987, whichever
 is greater"
 It was agreed an employee's W-2 Form for the appropriateyear would be used to determine the employee's earnings
 during that calendar year. It was also agreed that company
 records .would have to be utilized for those employees who did not
 have all of their earnings on the territory involved.
 It was further agreed that an employee's time lost forunion business would be included in computing the employee's
 earnings. The Organization will furnish the Carrier the necessary
 information to determine an employee's time lost for union
 business.
 Finally, the parties agreed a formula was needed forcomputing test period earnings for qualified employees who might
 be absent for legitimate reasons. The following formula shall be
 used for qualified employees who were absent account full time
 union work, discharge and reinstated with pay for time lost and
 valid medical/health leave: if an employee worked three months
 or more during the year in question, the employee's work history
 will be used to determine the test period earnings; if the
 employee worked less than three months, the average test period
 earnings of the two employees immediately senior and the two
 employees immediately junior to the employee working in the same
 service at the employee's location will be used to determine the
 test period earnings. It is understood an absence due to personal
 business is not a legitimate reason for purposes of this
 paragraph.
 Yours truly,/s/ W. E. Naro
 AGREED:/s/ L. L. Nelson
 General Chairman
   #2
 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 This will confirm our discussions concerning themodification of the basic Crew Consist Agreement dated
 September 15, 1980, as amended, for application on the territory
 north of Hinkle, which is to become effective December 1, 1988.
 (1) There is a concern the Carrier will work jobs,not as regular assignments, but as extra assignments.
 Therefore, it is agreed for each three
 extra yard assignments worked during any Sunday-
 Saturday week, one furloughed employee will be
 added to the Reserve Board in seniority order.
 Likewise, it is agreed for each three extra road
 assignments (including work trains) worked during
 any Sunday-Saturday week, one furloughed employee
 will be added to the Reserve Board in seniority
 order.
 Employees so added to the Reserve Board will remainon the Reserve Board for one Sunday-Saturday
 period. This process will be repeated
 for each three yard assignments and for each
 three road assignments worked during any Sunday-
 Saturday period. Whenever an employee has been
 added to the Reserve Board in accordance with
 this understanding for two consecutive weeks,
 another furloughed employee will be added to the
 Reserve Board for one Sunday-Saturday period.
 (2) There is a concern the Carrier will not regulatethe Guaranteed Extra Boards in accordance with
 the Modification Agreement. In order to address
 this concern, the parties agree the number of
 employees initially assigned to the Guaranteed
 Extra Boards will not be changed, except by
 mutual agreement, for one hundred and twenty
 (120) days after the Modification Agreement is
 implemented.
 (3) Penalty claim payments due employees assigned toa Guaranteed Extra Board will be paid in addition
 to the earnings received as a Guaranteed Extra
 Board employee.
 If the foregoing accurately reflects our understandings,please so indicate by signing in the space provided below,
 retaining a copy for your files and returning the original to
 this office.
 Yours truly,/s/ W. E. Naro
 AGREED:/s/ L. L. Nelson
 General Chairman
     #3
 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 This will confirm our discussions concerning themodification of the basic Crew Consist Agreement dated
 September 15, 1980, as amended, for application on the territory
 north of Hinkle, which is to become effective December 1, 1988.
 In discussion of the language in paragraph (a) (iii) ofArticle IV, it was understood that the phrase "no other payments
 shall be made to or on behalf of an employee on the reserve
 board .... " would not preclude an employee on the reserve board
 from receiving payments on a pending penalty claim. Penalty
 claim payments due, if any, will be paid in addition to the
 earnings as reserve employee.
 It was also understood that employees on a ReserveBoard are "in-service employees" and hence are subject to the
 same physical examination and rules requirements as other
 in-service employees. The Company's requirement that employees
 who have been out of service for six months or more must take
 physical and rules examinations does not apply to Reserve Board
 employees. Furthermore, employees to be examined while on
 reserve status will be notified by registered mail sent to their
 home address. With respect to the language "failure to comply
 with any of these requirements will result in forfeiture of all
 seniority rights" -- it was understood that it is the intent of
 the parties that reserve status employees will be treated the
 same as other employees in active service, i.e., Reserve Board
 employees must report for examinations but will not have their
 seniority rights terminated for a failure to pass, and failures
 to pass will be handled in the usual way. This is not intended
 to waive the requirement that Reserve Board employees must take
 and pass all required examinations. It is intended to ensure
 that Reserve Board employees will be treated the same as other
 active service employees.
 In further discuss ion of Article IV, "Reserve Board",it was agreed that if the number of regular assignments increases,
 the Reserve Board will be increased proportionately;
 that is, one additional regular assignment will generate one
 additional position on the Reserve Board. If business
 decreases, the number of positions on the Reserve Board will
 again decrease proportionately back to the level established at
 the time of the implementation but will not drop below that
 level. Furthermore, in the ebbs and flows of business when the
 point in time is reached through attrition that no eligible
 employees are on a Reserve Board, the Reserve Board will be
 re-established when such employees are reduced off the guarantee
 extra boards and off regular assignments.
 Yours truly,/s/ W. E. Naro
 AGREED:/s/ L. L. Nelson
 General Chairman
     #4
 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 Article VI sets forth the procedures to be followed inimplementing the Crew Consist Modification Agreement and Article
 VII sets forth the procedures for filling vacancies after
 implementation. However, during our discussions it was your
 belief the procedures needed to be set forth in greater detail.
 We agreed to the following supplement to these Articles:
 (1) Under Article VI, Paragraph l(b), employeesholding a regular assignment may not be forced to
 the Reserve Board. They may be forced to
 must-fill positions or extra boards in accordance
 with existing schedule rules.
 (2) Under Article VII, Paragraph lea), employeesholding an assignment, regular and extra, may not
 be forced to the Reserve Board. They may be
 forced to must- fill positions.
 Yours truly,/s/ W. E. Naro
 AGREED:/s/ L. L. Nelson
 General Chairman
     #5
 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 This refers to your concern the Crew Consist ModificationAgreement does not adequately provide for continuation of
 the moratorium in the September 15, 1980 Crew Consist Agreement.
 In an effort to alleviate this concern, we agreed tothe following changes in the October 9, 1980 Letter of
 Understanding to the basic Crew Consist Agreement:
 "The parties to this Agreement shall not servenor progress, prior to the attrition of all protected
 employees, any notice or proposal for changing the
 specific provisions of this Agreement governing pure
 attrition; protected employees, car limits and train
 length (which have been eliminated by the Crew Consist
 Modification Agreement), special allowance payment to
 reduced crew members, employee productivity fund
 deposits (which are now $53.25 for each yard tour of
 duty or road freight service trip operated with a crew
 of one conductor/foreman and one brakeman/helper) and
 administration thereof.
 "This section will not bar the parties frommaking changes in the above provisions by mutual
 agreement."
 Yours truly,/s/ W. E. Naro
 AGREED:/s/ L. L. Nelson
 General Chairman
     #6
 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 This is to confirm our discussions with respect toyour concerns the Carrier will not run reduced crews even when
 the Crew Consist Modification Agreement allows the use of
 reduced crews.
 You were advised that the purpose of this agreementwas to work with reduced crews. While there may be instances
 where full crews would be needed either because of operational
 requirements or a lack of sufficient radios, the carrier would
 not arbitrarily run full crews to avoid the payment of the
 productivity fund.
 Nonetheless, in an effort to demonstrate our mutualgood faith on this point, we agreed to the following points:
 (1) The carrier shall have until February 1, 1989, tosecure a sufficient supply of radios for reduced crew
 operations on the territory north of Hinkle (Fourth
 and Fifth Seniority Districts and Spokane
 International) and after February 1, 1989, members of
 a crew under this Crew Consist Modification Agreement
 will receive the special allowance payment even if the
 Carrier elects to operate the assignment with a full
 crew because of insufficient radios.
 (2) If evidence of abuse developed concerning the numberof full crews operated by the carrier, we would meet
 promptly with you to review the matter and resolve the
 problem.
 If the foregoing correctly sets forth the understanding reached in conference, please
 affix your signature in the space provided below.
 Yours truly,/s/ W. E. Naro
 AGREED:/s/ L. L. Nelson
 General Chairman
     #7
 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 This will confirm our discussions concerning theapplication of Article III(4) of the Agreement of October 28,
 1988.
 During our discussions of these provisions, it wasagreed that employees assigned to Reserve Boards may make
 application for extra work. It, however, was strictly
 understood, such employees will be utilized only when all other
 steps in the calling procedures have been exhausted. If such
 employees are utilized, compensation received by them for such
 service will be in addition to their Reserve Board pay.
 Yours truly,/s/ W. E. Naro
 AGREED:/s/ L. L. Nelson
 General Chairman
     #8
 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 This will confirm our discussion of Article 111(6) ofthe Agreement dated October 28, 1988.
 The Carrier's original proposal provided the followingprovision:
 "An employee assigned to a Guaranteed Extra Boardwho is unavailable for more than two (2) occurrences
 per pay period or who is unavailable for more than
 seventy-two (72) combined hours per pay period, will
 forfeit his guarantee for that pay period."
 You took exception to this provision contending the remainingpenalty provisions were sufficient to ensure availability of
 employees.
 It was agreed this language would be deleted. If,however, abuses developed concerning availability of employees on
 the Guaranteed Extra Boards, the parties would promptly meet to
 consider solutions to the problem, including adoption of the
 above language.
 Yours truly,/s/ W. E. Naro
 AGREED:/s/ L. L. Nelson
 General Chairman
     #9
 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 This is to confirm our discussions concerning theapplication of Article IV of the agreement dated October 28,
 1988.
 During our discussions of Article IV, the questionarose as to what would happen if an employee initially elected to
 receive 70% of his/her earnings during either the 1986 or 1987
 year and, through subsequent wage increases, the 70% of the basic
 yard helper's rate of pay became greater.
 It was understood that an employee is to receivewhichever is the greater of the two options. If the above
 situation should occur, the employee's method of compensation
 would be changed accordingly.
 Yours truly,/s/ W. E. Naro
 AGREED:/s/ L. L. Nelson
 General Chairman
     #10 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 This is to confirm our discussions concerning theapplication of Article IV of the agreement dated October 28,
 1988.
 During our discussions of this Article, the questionarose as to the application of the Reserve Board to the former
 Spokane International.
 It was agreed there would be one reserve board for theformer Spokane International and the Fifth Seniority District.
 The number of positions on this board will be based on the
 combined operation. They, however, would be apportioned between
 prior rights Spokane International and Fifth Seniority District
 employees. Thereafter, employees would be assigned based on
 their combined seniority.
 The following example is used for illustrationpurposes only:
 There are 4 jobs on the former Spokane International and 8jobs on the Fifth District. Because of these 12 jobs, it is
 determined that there will be 12 positions on the Reserve
 Board. Initially, 8 Reserve Board positions would be
 available to Fifth District prior rights employees and 4
 positions would be available to Spokane International prior
 rights employees. Should these positions not be filled by
 prior rights employees they would be assigned based on
 combined seniority.
 Employees being recalled will be recalled in reverseorder of seniority from the Reserve Board.
 Yours truly,/s/ W. E. Naro
 AGREED:/s/ L. L. Nelson
 General Chairman
     #11
 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 This is to confirm our discussions concerning theapplication of Article IV (c) of the agreement dated October 28,
 1988.
 During our discuss ions of this Article, the ques tionarose whether employees on a reserve board would be additionally
 compensated for reporting and taking any tests required by the
 Carrier. You were advised that it was the Carrier's position the
 employee is already being compensated and would not be paid
 additionally.
 You expressed a concern that the Carrier could requirean employee to report for any number of programs and tests that
 were not necessary for the employee to maintain his/her work
 proficiencies. Under the Carrier's interpretation, the employee
 would not be additionally compensated.
 You were advised that such a scenario was not intendedby the agreement. Employees assigned to reserve boards will not
 be called for programs and tests that are not required for the
 performance of trainmen/yardmen duties.
 If problems occur, the parties would promptly meet toconsider solutions to the problem.
 Yours truly,/s/ W. E. Naro
 AGREED:/s/ L. L. Nelson
 General Chairman
     #12
 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 This will confirm our discussions concerning themodification of the basic Crew Consist Agreement dated
 September 15, 1980, as amended, for application on the territory
 north of Hinkle.
 During our discussions of Article III, GuaranteedExtra Board, the question arose as to how conductor vacancies
 would be filled. It was agreed the following procedures will be
 followed:
 (a) The senior promoted brakeman on the job will bestepped up to the Conductor's assignment.
 (b) If no promoted brakeman on the job, the job will befilled by a promoted trainman from the Guaranteed
 Extra Board on a strict rotary basis - first in - first out.
 It was further agreed that employees will be assignedto the Guaranteed Extra Board without regard to whether they are
 promoted conductors. At implementation if the employee is not a
 promoted conductor and does not take promotion within 120 days
 of being assigned to the Board, the employee's guarantee will be
 reduced to the brakeman's basic through freight rate of pay.
 Thereafter, if a non-promoted employee is assigned to the board,
 he/she will receive the brakeman's basic through freight rate of
 pay until he/she takes promotion to conductor. In the same
 manner if an employee is a promoted conductor when assigned to
 the Board and gives up his/her conductor's date, the employee's
 guarantee will be reduced to the brakeman's basic through
 freight rate of pay.
 The carrier will hold conductor's examinations within120 days of implementation of this agreement and thereafter as
 needed to give all eligible employees the opportunity to take
 promotion.
 If the foregoing correctly sets forth the under standing reached in conference, please affix
 your signature in the space provided below.
 Yours truly,/s/ W. E. Naro
 AGREED:/s/ L. L. Nelson
 General Chairman
     #13
 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 This is to confirm our discussions concerning themodification of the Crew Consist Agreement dated September IS15
 1980, as amended, for application on the territory north of
 Hinkle.
 During our discussions of Article IV, Reserve Board,several questions arose concerning the operation of the Reserve
 Board.
 The number of Reserve Board positions will be determinedby the number of employees holding regular or extra board
 positions on June I, 1988, less the number assigned to
 Conductor/Foreman or first brakeman/helper positions, Guaranteed
 Extra Boards, and those electing to take separation allowances
 under this agreement. This will include any reductions in the
 Guaranteed Extra Board resulting from the initial adjustment of
 the board as provided by Section 5(b) of Article III. Once this
 number is established, it will be the minimum number of
 positions available on the Reserve Board.
 While the number of positions on the Reserve Board mayincrease as jobs are added above the number of jobs working on
 June I, 1988, it will not fall below the number initially
 established under Article IV. This number will be temporarily
 offset by the number of employees electing to work second
 brakeman/helper positions. The number of Reserve Board
 positions as initially established under Article IV will remain
 in effect so long as there are protected employees who have a
 seniority date prior to the effective date of this agreement.
 Yours truly,/s/ W. E. Naro
 AGREED:/s/ L. L. Nelson
 General Chairman
     #14
 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 This is to confirm our discussions concerning themodification of the Crew Consist Agreement dated September 15,
 1980, as amended, for application on the territory north of
 Hinkle.
 During our various discussions of this proposal theissue was continually raised concerning the number of employees
 to be included on the Fifth Seniority District for computation
 of the number of reserved board positions to be established.
 After having reviewed this matter, I have concluded there is
 merit to your position.
 It was agreed that due to the special circumstancesinvolved, two additional positions will be added to the June 1,
 1988 count for computation of reserve board positions on the
 Fifth Seniority District. It further was agreed that the
 Carrier would receive credit for these two positions in the
 application of Side Letter #2 of this agreement.
 If the foregoing correctly sets forth the understandingreached in conference, please affix your signature
 in the space provided below.
 Yours truly,/s/ W. E. Naro
 AGREED:/s/ L. L. Nelson
 General Chairman
     #15
 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 This is to confirm our discussion concerning themodification of the Crew Consist Agreement dated September 15,
 1980, as amended, for application on the territory north of
 Hinkle.
 It was agreed that the carrier would offer toemployees in the affected territory a 401(k) plan subject to the
 following conditions:
 (1) The plan will be consistent with all applicable laws. (2) Employees may elect to participate in the plan butwill not be required to do so.
 (3) Employees may contribute to the plan by use of payrolldeduction.
 (4) The annual distribution of the single ProductivityFund shall be available for contribution to an
 employee's 401(k) plan account. Each employee participating
 in the plan shall have the option of contributing
 his/her Productivity Fund share to the plan or
 of receiving his/her Productivity Fund share.
 (5) The administrative costs of the plan will be borne bythe carrier.
 (6) The necessary arrangements for establishment andadministration of the Employee's Productivity Fund and
 the 401(k) plan in compliance with ERISA and other
 legal requirements will be finalized within 120 days
 of December I, 1988.
 If the foregoing correctly sets forth the understandingreached in conference, please affix your signature
 in the space provided below.
 Yours truly,/s/ W. E. Naro
 AGREED:/s/ L. L. Nelson
 General Chairman
     UNION PACIFIC RAILROAD COMPANY
 December 6, 1988 Files: 380.101940.40-6
 Rule 32(b)(4)
 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Mr. Nelson:
 This refers to our discussions concerning the use offurloughed employes in emergency service.
 The provisions of the modified Crew Consist Agreement,Article III Section (5) (a), provide for the creation of a
 position on the Guaranteed Extra Board for seven days when a
 furloughed employe is used in emergency service or recalled. We
 discussed the fact that a senior furloughed employe may be
 unavailable for the emergency service the first day but available
 the remaining six days. We further discussed the impracticality
 of crew callers calling employes for seven days to notify them of
 a junior employe working.
 To provide for work opportunities based on seniority it wasagreed to handle the above situation in the following manner:
 "When a junior furloughed employe is used inemergency service due to the unavailability of senior
 furloughed employe(s), a notice will be mailed to all
 senior furloughed employes advising that a junior
 employe is being used in emergency service. Senior
 furloughed employes will have a right to displace
 junior employes for the remainder of the seven day
 period.
 The Carrier will be responsible for no more thanseven days' pay or guarantee irrespective of how many
 employes displace in that period. An employe must
 displace prior to 12 noon to receive a guarantee day if
 no service is performed by that position on that day."
 Should this be agreeable to you please sign below, returningone copy to this office.
 If the foregoing correctly sets forth the understandingreached in conference, please affix your signature
 in the space provided below.
 Yours truly,/s/ W. S. Hinckley
 AGREED:/s/ L. L. Nelson
 General Chairman, UTU-C&T
 Applies to Hinkle-Eastport Consolidated Seniority District (Formerly Fourth and Fifth Seniority Districts Oregon Division)
       UNION PACIFIC RAILROAD COMPANY June 12, 1989 380.10-4560.30-6
 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Mr. Nelson:
 This refers to our discussions concerning ArticleIII-Guaranteed Extra Boards of the Modified Crew Consist
 Agreement effective December 1, 1988. Several employes raised a
 concern over the lack of opportunity to move to or from the
 guaranteed extra board. Due to the relatively stable number of
 positions and the Carrier's control of the number of employes on
 the extra board, employes were concerned that upon being placed
 on the extra board that they would be frozen there.
 In order to alleviate this problem on the territorynorth of Hinkle, it is agreed to allow an employe a move to or
 from the extra board once every six months by notifying the CMS
 Director in writing, copy to the Local Chairman, as follows:
 "In accordance with Letter Agreement effectiveFebruary 1, 1989, I desire to relinquish my position
 (as an extra board employe) (as a regular assigned
 employe) and displace junior employe __________. I
 understand that this move may only be used once every
 six (6) months and the last time I used this move was
 __________. I understand that if I am on a
 regular assigned position or pool assignment that I
 must remain on the assignment for the life of the
 bulletin or until application is received for my
 vacancy.
 This agreement does not prevent the regular movement ofemployes when the guaranteed extra board is adjusted or in the
 filling of vacancies under other agreement rules.
 This agreement may be cancelled by either party servingupon the other party a ten (10) day written notice. "
 Effective the first day of August, 1989. Yours truly,/s/ W. S. Hinckley
 Director Labor Relations
 AGREED:/s/ L. L. Nelson
 General Chairman, UTU C&T
       UNION PACIFIC RAILROAD COMPANY July 31, 1989 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 During the First District implementation meeting heldat the Marriott Hotel, Portland, Oregon, on July 13, 1989, the
 question was raised that Side Letter #19 permitted Train and Yard
 service employees to have an open "bump" or right of
 displacement. In other words, it was thought that Side Letter
 #19 permitted a regular assigned employee to give up his job and
 to displace another regular assigned employee. This is not the
 case, as that was not the intent of our understanding.
 The original concern expressed by you afterimplementation of the "Hinkle North" Modification Agreement was
 that employees who placed on the Guaranteed Extra Board would be
 frozen there. Our understanding was to eliminate that problem,
 not to permit regular assigned employees to displace other
 regular assigned employees. We did not modify or amend Rule 34
 or Rule 60 of the Agreement, effective October 1, 1975, and those
 Rules are not changed. In both the Hinkle North Agreement dpted
 June 12, 1989 (Carrier File 380.10-4 and 560.30-6) and the Frrst
 Districts Side Letter #19, it is intended only to provide a
 method of release from the Extra Board . . The example given will
 be modified accordingly.
 If the foregoing correctly sets forth the intent of ourunderstandings on Hinkle North and the First Seniority District,
 please affix your signature in the space provided below:
 Yours truly,/s/ W. S. Hinckley
 Director Labor Relations
 AGREED:/s/ L. L. Nelson
 General Chairman, UTU C&T
       UNION PACIFIC RAILROAD COMPANY November 17, 1989 Files: 380.10-4380.65
 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 This refers to our discussions concerning the number oftrip credits that should be allocated to employes entitled to
 share in the Productivity Fund as provided for by the Crew
 Consist Agreement effective September 15, 1980, who are on
 Guaranteed Extra, Boards developed through Crew Consist
 Modification Agreements.
 The question was raised when we discovered that actualtrip credits for these employes were often much less than those
 of employees assigned to regular jobs. Extra Board employes are
 required to stand available for call during the month and some
 credit is due for holding themselves available to provide relief
 for those regular assigned employes. It is, therefore, agreed
 that an employe who is assigned to the Guaranteed Extra Board for
 an entire month will be entitled to twenty (20) trip credits for
 the month including those earned while actually filling vacancies
 from the Extra Board.
 It will be the responsibility of the employe to file atrip report on the last day of the month claiming the number of
 trip credits they are. short. This will apply only to those who
 are assigned for the entire month to the Guaranteed Extra Board
 and who have not lost their guarantee for the pay period under
 the various layoff/missed call provisions of the Modified Crew
 Consist provisions. The trip credits shall not be prorated on a
 partial month basis. This Agreement will become effective for
 all Guaranteed Extra Boards in operation under Modified Crew
 Consist Agreements January I, 1990.
 If the foregoing correctly sets forth the understanding reachedin conference, please affix your signature in the space
 provided below.
 Yours truly,/s/ W. S. Hinckley
 Director Labor Relations
 AGREED:/s/ L. L. Nelson
 General Chairman, UTU (C&T)
       UNION PACIFIC RAILROAD COMPANY March 23, 1989 380.10-4 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Mr. Nelson:
 This refers to our discussions concerning theassignments on the territory north of Hinkle that operate with
 blankable second brakemen/helpers due to the voluntary selection
 of those positions by protected employes.
 In Article VII (1) (c) of the Agreement, it was agreedthat temporary vacancies on these blankable positions would not
 be filled. Two similar situations have developed that require
 clarification.
 (1) A conductor lays off and in accordance with Side
 Letter #12, the senior promoted brakeman on the
 job is stepped up to the conductor's assignment.
 (2) The senior brakeman lays off. In each of the above instances, it was the intent ofthe parties to not call a brakeman from the extra board to fill
 the vacancy. In each case, the second brakeman will fulfill the
 crew consist requirements of Article I.
 Please sign below and return two copies to this office.Director Labor Relations
 Yours truly,/s/ W. S. Hinckley
 Director Labor Relations
 AGREED:/s/ L. L. Nelson
 General Chairman, UTU C&T
       UNION PACIFIC RAILROAD COMPANY February 1, 1990 380.10-4 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 This refers to our discussions concerning the threeModified Crew Consist Agreements and the various Articles
 covering the filling of vacancies.
 The Agreements provide for the use of the applicationprocess to fill all permanent vacancies. In previous
 understandings, the parties agreed that applications had to be on
 file for at least twenty-four (24) hours prior to the vacancy
 existing in order for it to be honored in pool-freight service.
 The parties agree that this same process applies to all permanent
 vacancies. New yard and local assignments, changes in
 assignments (rest days, starting times, etc.,) and assignments
 that go to and from reduced/full crews will have a notice posted
 advising of the details of the assignment as previously required
 in the various Agreements.
 situations have developed where vacancies exist and noapplications are on file. In these instances, it is not
 necessary for an applicant to wait twenty-four (24) hours to
 place on the vacancy. The first applicant, including an employee
 on a bump board, making application shall be assigned to the
 vacancy.
 If the foregoing correctly sets forth the understandingreached in conference, please affix your signature in the space
 provided below.
 Yours truly,/s/ W. S. Hinckley
 AGREED:/s/ L. L. Nelson
       UNION PACIFIC RAILROAD COMPANY April 26, 1989 380.10-4 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Mr. Nelson:
 This refers to our discussions concerning Side Letter #12To the modified Crew Consist Agreement for the
 Territory north of Hinkle
 It was the intent of the letter to provide that whenfilling an extra crew or filling two vacancies on the same
 regular assignment, one of which is a Conductor position, that
 the senior employe called for the assignment will be assigned as
 a Conductor if the senior employe is a qualified Conductor.
 Please indicate your acceptance of the above by signingbelow and returning one copy to this office.
 Yours truly,/s/ W. S. Hinckley
 Director Labor Relations
 AGREED:/s/ L. L. Nelson
 General Chairman, UTU (C&T)
       UNION PACIFIC RAILROAD COMPANY June 8, 1990 File: 380.10-4 Mr. L. L. NelsonGeneral Chairman, UTU (C&T)
 936 S. E. Ankeny Street - suite F
 Portland, Oregon 97214
 Dear Sir:
 This refers to our discussions concerning whether anemploye holding a blankable position may move from
 one blankable position to another blankable position.
 We reviewed Side Letter #10 to the Modified CrewConsist Agreement effective December 21, 1989, and agreed that
 the principles detailed in that letter (Reserve Board to/from
 blankable positions) were also applicable to this question. It
 is not the intent of the Agreement to provide for movement
 between blankable positions on a daily or weekly basis. The
 following shall govern the movement of employes between
 blankable positions:
 (1) An employe on a blankable position may make applicationto an existing vacant blankable position upon giving
 five (5) days notice to CMS. The employe will be
 placed on the requested blankable position at 12:01 AM
 on the Monday following expiration of the five (5) day
 notice.
 NOTE I: An employe may make application under Paragraph (1) above only once in a thirty (30) day period.
 NOTE 2: An eligible employe holding a blankable or reserveboard position may make application to any new
 blankable position without the restrictions specified
 above or in Side Letter #10.
 If the foregoing correctly sets forth the understandingreached in conference, please affix your signature in the space
 provided below and return two signed copies to this office. The
 understanding will be applicable to all three Modified Crew
 Consist Agreements.
 Yours truly,/s/ W. S. Hinckley
 Director Labor Relations
 AGREED:/s/ L. L. Nelson
 General Chairman, UTU C&T
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