Codified Copy of the CBA as of 01/01/07 AN AGREEMENT BETWEEN CANADIAN NATIONAL RAILROAD, INC.

Transcription

1 Codified Copy of the CBA as of 01/01/07 AN AGREEMENT BETWEEN CANADIAN NATIONAL RAILROAD, INC. AND ITS EMPLOYEES REPRESENTED BY UNITED TRANSPORTATION UNION August 17, 2006

2 TABLE OF CONTENTS PREAMBLE:...6 ARTICLE 1 PURPOSE...6 ARTICLE 2 - GENERAL PRINCIPLES... 6 ARTICLE 3 RECOGNITION... 6 ARTICLE 4 - SCOPE OF AGREEMENT... 7 ARTICLE 5 - WAGES... 7 ARTICLE 6 - EMPLOYMENT SECURITY...8 ARTICLE 7 - SENIORITY...9 Section 1 General... 9 Section 2 Establishment...9 Section 3 Furloughed Trainmen...9 Section 4 Re-Entering Service...10 Section 5 Seniority Districts and Extra Board Locations...10 Section 6 Seniority Maintenance Fee Section 7 Prior Rights Seniority Section 8 Seniority Roster Section 9 Elimination of a Seniority District Section 10 Promotion...14 Section 11 Forced Promotion to Apprentice Engineer and Locomotive Engineer Service ARTICLE 8 - JOB VACANCIES AND BIDDING Section 1 Regular Assignments and Extra Boards Section 2 Assignment to Positions Section 3 Transfers ARTICLE 9 - ANNULMENT OF ASSIGNMENTS ARTICLE 10 - ABOLISHMENT AND DISPLACEMENT ARTICLE 11- GUARANTEED. EXTRA BOARD (GEB) ARTICLE 12 - APPROVAL OF APPLICATION FOR EMPLOYMENT ARTICLE 13 RULES / INSTRUCTION CLASSES ARTICLE 14 - ON AND OFF DUTY POINT ARTICLE 15 - CALLING FOR DUTY...24 Section 1 Calling...24 Section 2 Used out of Order Section 3 Called and Released Section 4 Familiarization of Territory Section 5 Supplemental Boards ARTICLE 16 MEAL PERIODS...26 ARTICLE 17 - EXPENSES Section 1 Held Away From Home Terminal Section 2 Transportation Expense...27 Section 3 Deadheading...28 Section 4 Aggregate Service ARTICLE 18 - PERSONAL LEAVE DAYS (PLD S) ARTICLE 19 BEREAVEMENT LEAVE ARTICLE 20 - HOLIDAYS...29 ARTICLE 21 VACATION...30 Section 1 Entitlements Section 2 United Transportation Union - Union Officials...32 Section 3 General ARTICLE 22 - BENEFITS Section 1 Health & Welfare Section 2 Short Term Disability...33 Section 3 Life Insurance Section 4 Other...33 Section 5 Off Track Vehicle Accident Benefits Section 6 Stock Purchase Plan

3 Section 7 Employee Family Assistance Program Section 8 401K Plan ARTICLE 23 - PHYSICAL EXAMINATIONS ARTICLE 24 - MEDICAL DISQUALIFICATIONS...34 ARTICLE 25 PAYDAY / PAYROLL AND DEDUCTIONS...34 ARTICLE 26 UNION SHOP AGREEMENT ARTICLE 27 - HANDLING OF CLAIMS AND GRIEVANCES Section 1 Representation Section 2 Claims and/or Grievance Process ARTICLE 28 INVESTIGATIONS AND DISCIPLINE...37 ARTICLE 29 - TIME OFF FOR UNION BUSINESS ARTICLE 30 - ATTENDING COURT AND INQUESTS...39 ARTICLE 31 - LEAVE OF ABSENCE WITHOUT PAY...39 Section 1 General Section 2 Less Than 1 Year...40 Section 3 Illness / Injury...40 Section 4 Official / Military...40 ARTICLE 32 - JURY DUTY ARTICLE 33 - BULLETIN BOARDS...40 ARTICLE 34 PRODUCTIVITY FUND / CREW CONSIST...41 Section 1 Productivity Fund...41 Section 2 Crew Consist ARTICLE 35 - CREW CALLING RECORDS ARTICLE 36 CHICAGO TERMINAL OPERATIONS SIDE LETTER 2 SCHILLER PARK, ILLINOIS...47 ARTICLE 37 - GENERAL PROVISIONS SIDE LETTER 3 - STANDING BID...51 SIDE LETTER 4 - SUPPLEMENTAL BOARD SIDE LETTER 7 PROTECTIVE CONDITIONS...56 SIDE LETTER 8 OPERATION RED BLOCK SIDE LETTER 9 RETAIN MELA SIDE LETTER SIDE LETTER 11 REMOTE CONTROL SIDE LETTER 13 FORCED PROMOTION...67 SIDE LETTER 14 HOURS OF SERVICE...69 SIDE LETTER 15 HARRIS COLA SIDE LETTER 16 PASSPORT REIMBURSEMENT SIDE LETTER 17 APPROVAL...72 REVIEW AND APPROVAL SIDE LETTER 18 BI-WEEKLY PAY ATTACHMENT A SUMMARY PLAN SHORT TERM DISABILITY

4 PREAMBLE:...6 ARTICLE 1 PURPOSE...6 ARTICLE 2 - GENERAL PRINCIPLES... 6 ARTICLE 3 RECOGNITION... 6 ARTICLE 4 - SCOPE OF AGREEMENT... 7 ARTICLE 5 - WAGES... 7 ARTICLE 6 - EMPLOYMENT SECURITY...8 ARTICLE 7 - SENIORITY...9 Section 1 General... 9 Section 2 Establishment...9 Section 3 Furloughed Trainmen...9 Section 4 Re-Entering Service...10 Section 5 Seniority Districts and Extra Board Locations...10 Section 6 Seniority Maintenance Fee Section 7 Prior Rights Seniority Section 8 Seniority Roster Section 9 Elimination of a Seniority District Section 10 Promotion...14 Section 11 Forced Promotion to Apprentice Engineer and Locomotive Engineer Service ARTICLE 8 - JOB VACANCIES AND BIDDING Section 1 Regular Assignments and Extra Boards Section 2 Assignment to Positions Section 3 Transfers ARTICLE 9 - ANNULMENT OF ASSIGNMENTS ARTICLE 10 - ABOLISHMENT AND DISPLACEMENT ARTICLE 11- GUARANTEED. EXTRA BOARD (GEB) ARTICLE 12 - APPROVAL OF APPLICATION FOR EMPLOYMENT ARTICLE 13 RULES / INSTRUCTION CLASSES ARTICLE 14 - ON AND OFF DUTY POINT ARTICLE 15 - CALLING FOR DUTY...24 Section 1 Calling...24 Section 2 Used out of Order Section 3 Called and Released Section 4 Familiarization of Territory Section 5 Supplemental Boards ARTICLE 16 MEAL PERIODS...26 ARTICLE 17 - EXPENSES Section 1 Held Away From Home Terminal Section 2 Transportation Expense...27 Section 3 Deadheading...28 Section 4 Aggregate Service ARTICLE 18 - PERSONAL LEAVE DAYS (PLD S) ARTICLE 19 BEREAVEMENT LEAVE ARTICLE 20 - HOLIDAYS...29 ARTICLE 21 VACATION...30 Section 1 Entitlements Section 2 United Transportation Union - Union Officials...32 Section 3 General ARTICLE 22 - BENEFITS Section 1 Health & Welfare Section 2 Short Term Disability...33 Section 3 Life Insurance Section 4 Other

5 Section 5 Off Track Vehicle Accident Benefits Section 6 Stock Purchase Plan...33 Section 7 Employee Family Assistance Program Section 8 401K Plan ARTICLE 23 - PHYSICAL EXAMINATIONS ARTICLE 24 - MEDICAL DISQUALIFICATIONS...34 ARTICLE 25 PAYDAY / PAYROLL AND DEDUCTIONS...34 ARTICLE 26 UNION SHOP AGREEMENT ARTICLE 27 - HANDLING OF CLAIMS AND GRIEVANCES Section 1 Representation Section 2 Claims and/or Grievance Process ARTICLE 28 INVESTIGATIONS AND DISCIPLINE...37 ARTICLE 29 - TIME OFF FOR UNION BUSINESS ARTICLE 30 - ATTENDING COURT AND INQUESTS...39 ARTICLE 31 - LEAVE OF ABSENCE WITHOUT PAY...39 Section 1 General Section 2 Less Than 1 Year...40 Section 3 Illness / Injury...40 Section 4 Official / Military...40 ARTICLE 32 - JURY DUTY ARTICLE 33 - BULLETIN BOARDS...40 ARTICLE 34 PRODUCTIVITY FUND / CREW CONSIST...41 Section 1 Productivity Fund...41 Section 2 Crew Consist ARTICLE 35 - CREW CALLING RECORDS ARTICLE 36 CHICAGO TERMINAL OPERATIONS SIDE LETTER 2 SCHILLER PARK, ILLINOIS...47 ARTICLE 37 - GENERAL PROVISIONS By August 17, 2006 Memorandum of Understanding. Side Letters 1, 2, 5, 6, 10 and 12 were removed, Side letters 14, 15, 16, 17 and 18 were added. Side Letter 8 was modified SIDE LETTER 3 - STANDING BID SIDE LETTER 4 - SUPPLEMENTAL BOARD SIDE LETTER 7 PROTECTIVE CONDITIONS...56 SIDE LETTER 8 OPERATION RED BLOCK SIDE LETTER 9 RETAIN MELA SIDE LETTER SIDE LETTER 11 REMOTE CONTROL SIDE LETTER 13 FORCED PROMOTION...67 SIDE LETTER 14 HOURS OF SERVICE...69 SIDE LETTER 15 HARRIS COLA SIDE LETTER 16 PASSPORT REIMBURSEMENT SIDE LETTER 17 APPROVAL...72 REVIEW AND APPROVAL SIDE LETTER 18 BI-WEEKLY PAY ATTACHMENT A SUMMARY PLAN SHORT TERM DISABILITY

6 PREAMBLE: This agreement is intended to provide enhanced quality of life, employment security and compensation enhancements to the UTU membership in addition to providing operating flexibility to the Company, resulting in increased productivity. Therefore, it is hereby agreed: ARTICLE 1 PURPOSE The fundamental objective of the Company is to operate a safe, efficient and effective railroad transport operation and a key component to the success of this venture is the contribution of a Conductor and Brakeman (hereinafter referred to as Trainmen.) This Agreement is founded on a principle of paying for Trainmen s time on an all-inclusive basis and contemplates that in order for the operation to be successful, individuals will perform all duties requested of them, subject to the provisions contained herein. ARTICLE 2 - GENERAL PRINCIPLES A. In this Agreement, words importing the singular shall include the plural and vice versa where the context requires. Words importing the masculine gender shall include the feminine where the context requires. B. This Agreement is intended to be applied in a non-discriminatory manner without regard to age, race, creed, color, gender, national origin, disability, sexual orientation or marital status. C. The parties recognize that this is a new Agreement, which replaces any and all existing Agreements, unless otherwise provided, and introduces changes in the workplace. In recognition of this a committee consisting of the UTU General Chairperson, a UTU Member appointed by the General Chairperson, and the Company's General Manager Operations and Director Labor Relations or their respective designates, two from each party, will be established. This committee will be known as the Labor / Management Committee, and will meet quarterly (January, April, July and October), unless otherwise agreed to review the application of this Agreement. ARTICLE 3 RECOGNITION A. This Agreement covers all Conductors, Brakeman and Utility positions employed by the Company and represented by the United Transportation Union under the Railway Labor Act, as amended. B. The term "Trainman" as herein referred to shall include employees represented by the United Transportation Union, except where otherwise specifically provided for herein. The term "Company" shall mean the Canadian National/Grand Trunk Western Railway. The term "Union" or "General Committee" shall mean the United Transportation Union. C. The right to make and interpret contracts covering rules, rates of pay and working conditions on behalf of employees covered by this Agreement shall be vested in the regularly constituted General Committee of the United Transportation Union. D. Where the term "duly accredited representative" appears herein, it shall be understood to mean the regularly constituted General Committee of Adjustment of the United Transportation Union and/or the Officers of the United Transportation Union of which such General Committee or Officers are a part. 6

7 ARTICLE 4 - SCOPE OF AGREEMENT A. Trainmen employed under this Agreement shall perform the duties traditionally required of trainmen involved on the CN/GTW in the movement of trains, rail cars and equipment within terminal(s) or on road territories as required in addition to that which is included in this agreement to meet the service requirements of the customer. A trainman will not be expected to perform duties under this contract that they don t perform today. B. Additionally, the Company may establish Utility Position(s) and such Utility Position(s) shall perform the duties traditionally performed of a Utility position. No Company supervisor, yardmaster, official, engine or non-train service employee will be used to supplement, supplant or substitute in the performance of service which is assigned to any employee(s) and to which entitled under UTU Agreements in effect prior to the effective date of this Agreement. ARTICLE 5 - WAGES A. Effective August 1, 2006, the rate of pay is: Conductor Utility Employee Brakemen $31.83 hour. $29.71 hour. $31.83 hour. i) Effective August 1, 2007, a wage increase of 3% on the rate of pay in effect on July 31, August 1, 2007 increase in $ amount: Conductor $32.78 hour. Utility Employee$32.78 hour. Brakemen $30.60 hour. ii) Effective August 1, 2008, a wage increase of 3% on the rate of pay in effect on July 31, August 1, 2008 increase in $ amount: Conductor $33.76 hour. Utility Employee$33.76 hour. Brakemen $31.52 hour. iii) Effective August 1, 2009, a wage increase of 4% on the rate of pay in effect on July 31, August 1, 2009 increase in $ amount: 7

8 Conductor $35.12 hour. Utility Employee$35.12 hour. Brakemen $32.77 hour. B. This rate will apply to all time on duty, unless otherwise specified in the Agreement. C. Ten (10) hours or less will constitute a basic day and pay for all time on duty after ten (10) hours will be at the rate of time and one half. Trainmen requesting to be relieved during their tour of duty will be paid actual time on duty. Paragraph C. Clarification Question: Answer: When does overtime at the rate of time and one half apply? Overtime only applies in connection with service performed, or when called to work your day off. D. Trainmen who perform service, at the request of the Company, on their assigned rest day(s) shall be paid for such service at the rate of time and one half. Paragraph D. Clarification Question: Answer: Question: Answer: Question: Answer: When does overtime apply in the application of working on an assigned rest day? In the application of this provision, overtime only applies when you perform service on your assigned day off. Is it mandatory that you accept a call on your assigned day off? No Can an employee remove his name from the Supplemental Board? Yes, as long as it is done prior to being called for duty. E. New employees will be appointed to the entry level training program and will be paid at ninety percent (90%) of the Brakeman s hourly rate of pay. Upon accumulating one (1) year of service as Brakeman or upon qualification as Conductor, whichever comes first, such employee will be paid at one hundred percent (100%) of the applicable hourly rate of pay. F. Unless otherwise provided in this agreement, the rates of pay as indicated herein represent complete and total payment for the performance of all work which is associated with the employees covered by this agreement. ARTICLE 6 - EMPLOYMENT SECURITY Unless otherwise provided for in Article 31 - Leave of Absence, Section 4, Trainmen who have established seniority prior to June 2, 2004 will be provided an assignment (which may be a Regular Assignment or a 8

9 Guaranteed Extra Board [GEB] assignment) established pursuant to Article 8 Section 1 of this Agreement, and will not be subject to furlough, provided they have exercised their seniority to the fullest extent on their respective seniority district outlined in Article 7, Sections 5 and remain available to protect service. Employees who established seniority between June 2, 2004 and August 17, 2006 will be provided protection against furlough, but may be required to work in a location in another seniority district not to exceed a 100 mile radius from their initial Seniority District location as outlined in Article 7, Section 8. Paragraph A. Clarification Question: Answer: Question: Can a trainman be force assigned off his seniority district? Not if the trainman established seniority prior to June 2, 2004 or after August 17, Trainmen who have established seniority between June 2, 2004 and August 17, 2006 can only be forced if certain criteria are met as outlined in Article 7, Section 8. May a trainman voluntarily transfer off of his seniority district? Answer: Yes, under certain circumstances described in Article 8, Section 3. ARTICLE 7 - SENIORITY Section 1 General A. The right of Trainmen to perform service will be governed by seniority, qualifications being equal. The Trainman longest in the service will have the preference. B. The Company will keep the General Chairperson and each Local Chairperson of the UTU supplied with lists of employees and their seniority dates and rank numbers as Trainmen in conformity with their standing as recorded on the lists subject to the rules hereinafter provided for. Section 2 Establishment The seniority date of newly hired employees will be the first date of service performed (first pay trip). Employees will establish seniority based on their first pay trip as a brakeman. In the event more than one employee is hired on the same date (start classroom together) or have their first pay trip on the same date, seniority will be allocated in the order of the employee s birthday. (Example Seniority will be awarded in age order.) Upon promotion to conductor, the brakeman s seniority ranking and brakeman s seniority date will apply. Section 3 Furloughed Trainmen A. Employees who are hired subsequent to August 17, 2006, subject to manpower requirements, may be furloughed. In the event such employees are furloughed they may be used to fill Trainmen vacancies in accordance with their seniority as provided for in Article 8, Section 2 when extra Trainmen are unavailable to fill such vacancies. This applies to vacancies ordinarily filled by extra men. Furloughed employees must provide the Company with a current telephone number to be contacted if they desire to protect service requirements when the procedures provided for in Article 11 (GEB) have been exhausted. 9

10 B. Furloughed employees will be subject to recall and will be provided a recall to service notice via certified letter which will be sent to their last known address. Employees must respond to the Company within fifteen (15) days and must report for duty within thirty (30) days from the date of receipt of the certified letter. It is the furloughed employee s responsibility to provide the Company with their current address. Employees who fail to report as outlined herein will have their name removed from the seniority roster and their services with the Company terminated. Section 4 Re-Entering Service Trainmen reinstated retain their rank of seniority. Trainmen reemployed lose their former rank and enter the service as new employees. Section 5 Seniority Districts and Extra Board Locations Upon the effective date of this Agreement, the following Seniority Districts will be established and will replace all Seniority Districts and Seniority Rosters previously in effect, subject to provisions of this agreement herein: Section 5. Question: How does a Trainman working as a non-protected Engineer on the effective date of this Agreement select a Seniority District? Answer: When set-back, he will have the right to exercise his Trainman s seniority to the District of his choice. Thereafter, he is considered a protected Trainman on that District. Seniority District 1 Elsdon. Zone No. Extra Board Location(s) Protects 1 Elsdon All Assignments at, or originating on Seniority District 1 including extra boards at Markham, Hawthorne, Schiller Park & Glenn yards when such are exhausted, with the concurrence with the respective UTU Committees. Seniority District 2 Battle Creek. Zone No. Extra Board Location(s) Protects 1 Battle Creek All Assignments at, or originating on Seniority District 2 including Lansing when such is exhausted 2 Lansing All Assignments at, or originating on Seniority District 2 including Battle Creek when such is exhausted 10

11 Seniority District 3 Flint and Pontiac Zone No. Extra Board Location(s) Protects 1 Flint All Assignments at, or originating on Seniority District 3 including Pontiac when such is exhausted 2 Pontiac All Assignments at, or originating on Seniority District 3 including Flint when such is exhausted Seniority District 4 Hamtramck and Port Huron Zone No. Extra Board Location(s) Protects 1 Hamtramck All Assignments at, or originating on Seniority District 4 including Port Huron when such is exhausted 2 Port Huron All Assignments at, or originating on Seniority District 4 including Hamtramck when such is exhausted Seniority District 5 Flat Rock and Toledo Zone No. Extra Board Location(s) Protects 1 Flat Rock All Assignments at, or originating on Seniority District 5 including Toledo when such is exhausted 2 Toledo All Assignments at, or originating on Seniority District 5 including Flat Rock when such is exhausted Section 6 Seniority Maintenance Fee Effective with the date of this Agreement, Trainmen transferring to engine service shall be subject to payment of their fair share of the expenses of negotiating and administering the collective bargaining agreement governing their rates of pay, rules and working conditions within the craft of Trainmen and in the protection of their continued Trainman seniority as follows: A. Trainmen transferring to engine service will have their Trainman s seniority placed in leave of absence status and will continue to accumulate such seniority. This will apply to the period of time that such employees are required to protect their train service seniority. A service fee payment to the UTU will be required while maintaining and accumulating Trainman seniority. B. A service fee will be required of Trainman transferring from train service who do not hold membership in the UTU in order to defray the cost of negotiating and administering the collective bargaining agreement governing their rates of pay, rules and working conditions and for the maintenance and accumulation of Trainman seniority. In the event such an employee does not pay the required fees, the General Chairperson shall so notify the designated Company Officer with a copy to the employee involved. Such employees 11

12 whose payments are delinquent shall have sixty (60) days from the date of the General Chairperson s letter to correct the delinquency. Failing to correct the delinquency such employee shall not continue to accumulate seniority in the craft or class represented by the United Transportation Union, and that shall be noted on the appropriate seniority rosters. C. The service fee specified in the preceding paragraphs shall be based upon the costs of negotiating and engaging in all collective bargaining matters, but in no event shall exceed the amount of full monthly dues of the UTU. D. The provisions outlined in Section 5 herein shall only be implemented upon thirty (30) days written notice by the General Chairperson of the UTU. Section 7 Prior Rights Seniority Regular assigned runs may operate over two, or more Seniority Districts. Trainmen possessing prior rights on the road and former yard seniority rosters will continue to possess relative prior rights to any established prior righted road or customer service assignment (CSA) positions bulletined as assignments on the new Seniority Districts outlined in Section 5 herein. Section 8 Seniority Roster A. Trainmen will be placed on a new District Seniority Roster at their current home terminal in accordance with their former relative seniority standing on the applicable GTW/ DTI / DTSL Seniority Roster that was in effect prior to the implementation date of this agreement. 1. Within thirty 30-days after the implementation of this Agreement, all Trainmen will indicate (in order of preference) their declaration of Seniority District and Extra Board Home Terminal Location as outlined in Article 7, Section After the 30-day period outlined in Paragraph A.1, the declarations will be reviewed with the General Chairman and employees will be allotted their seniority district and extra board location, subject to capacity requirements and using the following criteria: (i) (ii) Seniority (as provided in Paragraph A, herein) and Declaration preference. The Company will publish the final list and the effective date that employees will be assigned at the new location. Note: Employees off-sick and dismissed employees who are reinstated with full seniority will if they do not submit a declaration under paragraph A. 1. herein, be assigned at their last worked home terminal location. The Company will assign all other employees and employees who do not make sufficient choices. 3. Within 30-days after the final list is published as outlined in Paragraph 2, employees who did not receive their first choice will be afforded the opportunity to select one new location. These employees will be required to relocate to the location selected at such time in the future when the Company deems that capacity requirements allow the transfer. They will be placed on the seniority roster at their new location in accordance with Section 8 Paragraph A, herein. 4. After Paragraphs A.1. to A.3. are fulfilled, employees will have the opportunity to request a permanent transfer to a new Seniority District. These employees will be required to relocate in seniority order to the location selected at such time in the future when the Company deems that current and future 12

13 capacity requirements allow the move. They will be placed on the seniority roster at their new location in accordance with Section 8 Paragraph A herein. B. Within ninety (90) days of the implementation date of this Agreement Trainmen will be afforded a one time opportunity to make a declaration to exercise seniority to a different seniority district. Employees who make a declaration will be afforded the opportunity to relocate to the location selected at such time in the future when capacity requirements necessitate. 1. Employees who make their declaration within the 90 days outlined will be dovetailed in that District based on their seniority standing in effect prior to the effective date of this Agreement. 2. Employees who express their desire to relocate to another Seniority District after the expiration of the 90 days outlined herein may be permitted based on capacity requirement and will be dovetailed in that District based on their seniority standing in effect prior to the effective date of this Agreement. 3. Employees establishing seniority on or after the effective date of this agreement will be placed at the bottom of the appropriate Trainmen Seniority District in the order in which they establish a seniority date as an Trainman. C. Employees who established seniority between June 2, 2004 and August 17, 2006 will be provided protection against furlough, but may be required to work in a location in another seniority district not to exceed a 100 mile radius from their initial Seniority District location. Their initial seniority date will be dovetailed into the district where required at that point in time. EXAMPLE: Q: Will the Carrier provide the same Article 6, protections, by providing a Regular Assignment or Guaranteed Extra Board (GEB) assignment to employees hired between June 2, 2004 and August 17, 2006, who exercise their seniority to fullest extent on their districts, to include locations within a one hundred (100) mile radius from their initial seniority district location? A: Yes, the same protections will apply. Q: Will a trainman hired in Flat Rock be required to exercise his seniority to Flint and subsequently to Battle Creek? A: No, he can be required to exercise his seniority to Flint, a location within 100 miles from Flat Rock, the initial location where the trainmen established his seniority. Once he is permanently transferred to Flint, he is subject to all of the assignment and displacement rules applicable to Seniority District 3. He will not be required to make another permanent transfer to a different seniority district, unless the entire seniority district is eliminated. The current locations and distances are identified in Attachment 1. As an additional example, a trainman hired in Toledo can be required to transfer to Pontiac, ( 89 miles away). Once transferred, he can be required to work at Flint, the other location in Seniority District 3, even though Flint is located 105 miles from Toledo. D. Seniority rosters are attached for each Seniority District outlined in Section 5 herein, and will continue to be compiled by the Company and posted in January of each year with copies furnished to the General Chairman and Local Chairmen. Rosters will show each employee s name, employee number, date of birth and date of seniority and status and prior rights code if applicable. A seniority date not protested within 90 days from its 13

14 first posting, will be considered permanently established, and future requests for changes will not be considered except to correct typographical errors. Section 9 Elimination of a Seniority District A. In the event CN ceases ownership as a result of a sale, lease etc. that results in the elimination of an entire seniority district, protected employees directly affected will be permitted to transfer to another seniority district at employee s option and will be dovetailed in that district based on their seniority standing in effect prior to the effective date of this agreement. B. In the application of subparagraph a; herein the Company will identify seniority districts where a shortage of employees may exist and the General Manager and the General Chairperson will ensure that the transfer of employees is done in a manner that does not result in excessive surpluses in any specific remaining seniority districts. Section 10 Promotion All trainmen must accept promotion to conductor when offered by the Company. Once promoted, trainmen, including those already promoted will not be permitted to voluntarily relinquish conductor rights. Existing practices regarding instruction and examination in effect prior to the implementation of this agreement will continue. Trainmen failing to pass the transfer requirements (must pass on the 2 nd attempt with mentoring) for Conductor will result in automatic termination of all seniority and rights to work under this Agreement. Section 11 Forced Promotion to Apprentice Engineer and Locomotive Engineer Service Trainmen who have established seniority subsequent to April 01, 2001 (with the exception of the 30 trainmen who already commenced brakemen training during this time frame). If the number of applicants for engine service on the seniority district is insufficient to meet the Company s needs, such needs shall be met by requiring Trainmen who established seniority subsequent to April 01, 2001 to transfer to engine service in inverse seniority order, or forfeit seniority as a Trainman. Existing practices regarding instruction and examination in effect prior to the implementation of this agreement will continue. Trainmen failing to pass the transfer requirements for engineer will result in automatic termination of all seniority and rights to work under this Agreement. ARTICLE 8 - JOB VACANCIES AND BIDDING Section 1 Regular Assignments and Extra Boards A. 1. Subject to the requirements of service, the overall proportion of regularly assigned positions will not be reduced and the Company will endeavor to increase the number of regular assignments as a percentage of work. 2. The Company will, where operationally practical, operate meet and turn service. B. Customer Service Assignments [CSA] will be established consistent with business requirements and will be bulletined to work either five (5) days with two scheduled off days or six (6) days with one (1) scheduled day off. Where possible, assignments will have a designated starting time. (Q&A) Note: Customer Service Assignments are designed to work primarily within a terminal and will go on and off duty at that same terminal. Section 1 B. Question: In the event the Company establishes a 5 day assignment with 2 days 14

15 Clarification off, is it the intent to have the 2 assigned days off consecutive? Answer: Yes. Question: Can an assignment be bulletined to work four (4) hours on, two (2) hours off and five (5) hours on? Answer: No. Question: Answer: Is it the intent of the Agreement to ensure that all regular assignments will have at least one scheduled rest day per week? Yes. C. The Company will advertise, subject to operational requirements the following: 1. At locations where 4 or more Customer Service Assignments [CSA s] exist, a minimum of 25% of the assignments will be advertised as 5 day assignments. As the current protected employees working five day assignments attrite or leave the service of the company, the Company will have the option of advertising the assignments as either 5/2 or 6/1. Subsequent to July 31, 2005 the determination of the number of 5 day assignments will be made by the Company. If rounding is necessary to determine the number of 5 day assignments the number of assignments will be rounded down or up. (Example 2.5 = two 5 day assignments; 2.6 = three 5 day assignments) 2. No less than 75% of the regularly scheduled freight service will be regularly assigned. 3. All regular Customer Service Assignments [CSA s] will be regularly assigned. D. Regular assignments will be bulletined with a four (4) hour calling window or an assigned start time. The Company may adjust the starting time of an assignment within the designated spread. In the event a regular assignment is called to report for duty two hours or more beyond the close of its advertised spread time, the Trainman will be considered on pay two (2) hours after the expiration of his advertised spread time. In the event the requirements of service necessitate calling a Trainman prior to the opening of his advertised starting spread time, the Trainman will be paid five (5) hours at the basic daily rate. (Q&A) Example 1 Trainman A has an advertised spread time to start between 10:00 to 14:00 hours. Trainman A is called at 14:00 for a 17:00 start time. Question: What time does Trainman A go on pay? Answer: For pay purposes only, Trainman A goes on pay at 16:00. Example 2 Trainman A is called to report for duty at 10:00. Question: What time does Trainman A go on pay? Answer: 10:00. Example 3 Trainman A is called in advance of his advertised spread time to report for duty at 09:00. 15

16 Question: Answer: What time does Trainman A go on pay? 09:00. However in addition to his earnings for that day, Trainman A will be allowed five hours pay at the basic rate. Paragraph D. Question: Will spread time count towards overtime? Answer: Question: No, overtime is only paid on service rendered, such as after 10 hours on regular tours of duty, working off the supplemental board on your day off and deadheading. Trainman Smith s regular starting time is at 09:00 a.m. The Company wishes to change his starting time to 10:00 a.m. but is unable to contact Trainman Smith. Trainman Smith reports for duty at 09:00 a.m. as advertised. What time does Trainman Smith go on duty? Answer: 09:00. E. Guaranteed Extra Board assignments will be established where the needs of service dictate and will be bulletined six (6) days with one (1) scheduled rest day and five (5) days with two (2) scheduled rest days on alternating weeks. A minimum of one (1) extra board for each seniority district must be provided to fulfill the commitments of Article 6, Paragraph A. F. Each terminal will maintain a bulletin listing all positions, including guaranteed extra board positions, which will include (a) the job title and the normal assigned duties of the job, (b) the home terminal and, where applicable, the away from home terminal, (c) whether the job will tie up at the on-duty point, (d) the starting time or spread time of the assignment, if applicable and (e) the assigned day(s) off. G. Newly established positions will be bulletined for a period of seven (7) days to enable interested Trainmen to update their preferences in the crew calling system. Question: For payroll, vacation and bulletining of positions, what day defines the start of the work week? Answer: The work week runs from Monday thru Sunday for GEB guarantees, vacations and job bulletin purposes. Section 2 Assignment to Positions Assignment to positions shall be governed by seniority in accordance with existing practices prior to implementation date of this agreement. A. In the event there are no bids for an assigned position the following will apply: 1. If a Conductor vacancy exists the junior Conductor holding a non Conductor position including the GEB; and the junior Brakeman on the GEB for Brakeman vacancies at the location where the vacancy exists; if none, 16

17 2. The junior promoted Trainman on the Seniority District who is occupying a GEB that is defined as having a surplus number of employees, and is nearest via highway miles to the location where the vacancy exists. 3. The senior furloughed Trainman within the terminal; if none, 4. The senior furloughed Trainman on the Seniority District nearest via highway miles to the location where the vacancy exists. (Q&A) Section 2 A Question: In the application of Article 8 Section 2 can a furloughed employee be required to protect an unbid vacancy? Answer: Yes, however the provisions of Article 7, Section 4 apply. B. Temporary vacancies of seven (7) days or more will be filled in seniority order in accordance with existing practices in effect prior to implementation date of this Agreement. Section 3 Transfers l. Temporary Transfers A. When making a voluntary transfer from one Seniority District to another, the senior Trainmen shall have preference, and when returned to their home district they will be placed on assignments of their choice as identified on their standing bid form. B. Trainmen temporarily transferred must be returned to their home Seniority District within ninety days of the transfer. The General Chairperson and the General Manager may mutually agree to extend the ninetyday limit of a temporary service assignment transfer. 2. Permanent Transfers Employees will have the opportunity to request a permanent transfer to a new Seniority District. These employees will be required to relocate in seniority order to the location selected at such time in the future when the Company deems that current and future capacity requirements allow the move. They will be placed on the seniority roster at their new location in accordance with Article 7, Section 9 Paragraph A. ARTICLE 9 - ANNULMENT OF ASSIGNMENTS A. When assignments are to be annulled on holidays, the Company will notify Trainmen prior to completion of the last regular assigned shift prior to the holiday. (Q&A) Question: Answer: Question: Answer: Will every assignment receive a 24-hour notice if annulled on a holiday? Every assignment as near as possible will receive a 24-hour notice. It is understood that some industries cannot give 24 hours notice and the Company will endeavor to provide a notice as near as practical. For the purpose of this Article is the GEB considered an assignment? No. B. When an assignment is annulled or works on New Year's Day, President's Day, Memorial Day, Good Friday, Independence Day, Labor Day, Thanksgiving Day, the Day after Thanksgiving, Christmas Eve Day, Christmas Day or New Year's Eve Day, at the Trainman's option he may utilize a personal leave day. 17

18 C. When assignments are annulled on other than one of the General Holidays referred to in sub-paragraph B herein, the Trainman assigned to the position may be called under the applicable rules and used on other available work within the scope of this Agreement. Trainmen not used will be paid for the day or time lost. ARTICLE 10 - ABOLISHMENT AND DISPLACEMENT A. Trainmen whose positions are abolished will have twenty-four (24) hours in which to exercise seniority, or be assigned to the position held by the junior Trainman at that terminal. The Company will not incur any costs associated with the application of this provision. Employees who immediately exercise seniority to the GEB upon notification of being displaced will not have their guarantee negatively affected. Question: Answer: What does the term immediately mean? Employees who exercise seniority within eight (8) hours. B. In the application of sub-paragraph A herein, if unable to displace a junior Trainman in the terminal, the Trainman shall exercise his seniority to displace a junior Trainman within his Seniority District within fortyeight (48) hours. If the assigning of such employee results in the relocation of another employee on the seniority district, then the GEB will have one position added at his home terminal. C. Permanent changes in rest days or home terminal or changes to starting time or listing spread in excess of three (3) hours will result in the assignment being re-advertised. Question: If an employee is displaced for any reason, will the employee have 24 hours in which to exercise seniority? Answer: Yes, in accordance with Article 10-A. ARTICLE 11- GUARANTEED. EXTRA BOARD (GEB) A. 1. Where Guaranteed Extra Boards (GEB) have been established, the scheduled weekly rest day(s) will commence at 00:01 hours, with the Trainman automatically marked back to the board at 00:01 the following day. Extra Board employees at their home terminal will not be called for duty that commences on or after 22:00 hours on the day preceding their rest day, personal leave day or vacation. Trainmen may also elect to be automatically marked back to the working board at 06:00 a.m. Paragraph A. 1. Question: Is a Trainman who is at his home terminal required to accept a call for duty that commences on or after 22:00 on the day preceding their assigned rest day? Answer: No. Question: Answer: Is an extra board employee who is observing the assigned days off, required to mark back to the extra board at a specific time once his / her off days are over? In accordance with Article 11, Paragraph A1 and A2 Extra Employees are marked back to the GEB at 12:01 AM at the completion of their assigned days off, unless such employee notifies the Company that 18

19 they will mark up at 06:00 Am following their off days. 2. Trainmen who elect to mark up at 06:00 a.m. and do not get called for duty on that calendar day will have their guarantee reduced by the amount outlined in G(3), herein, for that week. The provisions of this paragraph will also apply to employees returning to the GEB under the provisions of Articles 18, 19 and 21 of this Agreement. Paragraph A. 2. Question: Trainman Smith voluntarily elects to markup at 06:00 instead of 00:01 for reasons other than provided in Article 11 A. 3. Will Trainman Smith s guarantee be reduced if he does not perform service that day? Answer: Yes, Trainman Smith s guarantee will be reduced by the amount outlined in G (3), as periodically adjusted for GWIs. 3. If the Trainman is currently working or away from the home terminal at the time the scheduled rest day(s) are to begin, the rest day(s) will begin at the Trainman's tie-up time at his home terminal and run for twenty-four (24) or forty-eight (48) hours, whichever applies, with the Trainman automatically marked back to the bottom of the board at the expiration of that time. However, if the Trainman's tie-up time occurred between 00:01 and 06:01 on the scheduled rest day, the Trainman will automatically be marked back to the bottom of the board at 06:01 at the expiration of the twentyfour (24) hours or forty-eight (48) hours, whichever applies. B. For the purposes of prorating guarantees Trainmen exercising seniority to the GEB at any time other than Board Adjustment Day, or as provided for in Article 10A herein, whichever applies, will be shown on the GEB at 00:01 hours after the exercise of their seniority (Refer to Paragraph M. herein). C. GEB s will operate on a first-in, first-out basis, based on tie-up time. Where more than one Trainman is marked back up to the Board at the same time their previous tie up time will govern relative order. D. Unless otherwise provided for herein, Trainmen assigned to GEB s will fill temporary vacancies and extra assignments at the location of the Board and at outlying points within the Seniority District, as necessary. In the event the GEB from which the assignment would normally be filled is exhausted, the assignment will be filled by: 1. The senior rested Trainman at the terminal who has marked up to the Supplemental Extra Board as provided for by Article 15, Section 5; if none, 2. The first-out qualified rested Trainman on the nearest Extra Board(s) within the Seniority District via highway miles; if none, 3. The senior rested Trainman who has marked up to the Supplemental Extra Board at the nearest terminal within the Seniority District via highway miles; if none, 4. The first-out qualified and rested Trainman on the nearest Extra Board via highway miles on the adjacent Seniority District. Employees used from the adjacent Seniority District will only be used for one tour of duty. (Q&A) Paragraph D. Question: In the application of Article 11 D. Paragraph 4 what is meant by the term nearest Extra Board via highway miles on the adjacent Seniority District? Answer: The nearest extra board via highway miles means from the location 19

20 where the vacancy exists from the employee s home terminal. Hamtramck Prior-Right Assignments (Seniority District 4, Zone 1) that report for duty at Flat Rock (Seniority District 5, Zone 1) will be designated as Hamtramck Prior Right Assignments. Those trainmen possessing the appropriate prior-rights within Seniority District 4, Zone 1 will have bidding preference over non-prior-right trainmen. Trainmen assigned to the Hamtramck prior-right assignments will report directly to Flat Rock without any additional expense to the Carrier at the designated on-duty time. The first source of supply for filling vacancies on the Hamtramck prior-right assignments is the Flat Rock Guaranteed Extra Board. Any extra or make-up assignments traversing over the same territory as the designated Hamtramck prior-right Assignments will be filled from the Flat Rock GEB. E. When Trainmen mark back up for any reason they will be placed to the bottom of the GEB and the following will apply (Q&A): 1. Employees who are first-out on the GEB and book off for any reason or miss a call will, be held off of the GEB for 12 hours. Note: The foregoing provisions with respect to being held off of the GEB will not apply to GEB s consisting of three (3) or less Trainmen. 2. Employees not first-out and who book off of the GEB will be held off the board for 8 hours. 3. Employees held in accordance with paragraphs 1 and 2 may be called for duty by the Company in the event the working boards are exhausted. 4. The provisions of sub-paragraph E.1. herein, will not apply to employees referred to in paragraphs D.2., D.3. and D.4. of this Article who are not physically first-out on the GEB at that location. Paragraph E. Question: If an employee misses a call on the GEB is he considered in layoff status for the 12 hours he is held off of the working board? Answer: Yes, subject to the provisions of Article 11, Paragraph E, #3. F. The number of Trainmen assigned to GEB's will be regulated on Monday at 00:01 by the Company and will be based on 20% of the regular positions on assignments plus the average number of unassigned starts on a daily basis of the previous thirty (30) days, multiplied by 1.2. The Company shall maintain a sufficient number of extra employees to permit reasonable layoff privileges and to protect vacations, personal leave days and other extended vacancies. G. 1. Effective August 1, 2006 each Trainman assigned to a GEB shall be guaranteed $1, per week. This rate is subject to future general wage increases as identified in Article 5, herein. All compensation paid by the Company to Trainmen while assigned to a GEB in a work week will be credited toward the 20

21 guarantee excluding personal automobile mileage allowances, expenses, and payments that involve an alleged violation of this Agreement, such as runarounds, etc. Compensation received pursuant to Article 17 Section 1. D. and Article 17 Section 3 and Section 4 will be credited toward the guarantee. For the purposes of this agreement a work week is defined as a 7 day interval comprised of (6) consecutive working/ protect days with one (1) scheduled rest day and (5) consecutive working/ protect days with two (2) scheduled rest days. 2. The rate outlined in G(3), as periodically adjusted for general wage increases, shall be used to reduce the guarantee for any calendar day a trainman is unavailable for service as outlined herein; and, for prorating the guarantee of a trainman who is not assigned to the guaranteed extra board for the full week (Monday thru Sunday). Trainmen who are not available for call for any portion of the work week, ((i.e. missed call, failure to protect), other than days considered to qualify for compensation, will have their guarantee for that work week reduced by the amount identified G. (3) or each 24-hour period, or portion thereof, they are not available for call. 3. In the application of sub-paragraphs O and Q.2 herein, effective August 1, 2006 the daily guarantee referred to herein is pro-rated at $ per day, and will be adjusted accordingly as a result of future general wage increases. H. The rate established for extra boards under this Agreement shall be subject to general wage increases. I. GEB positions will be advertised. Assignments shall be made on the basis of seniority. J. Extra board Trainmen shall be called for service not less than two (2) hours prior to the time required to report for duty. K. The Company will provide the General Chairperson ten days advance notice for any new board it intends to establish. L. All guarantee compensation paid to extra Trainmen shall be considered as service rendered for vacation pay and qualification days. M. Increases or decreases to the GEB can occur at any time; however, if the board is increased or decreased effective at any time other than on the designated Board Adjustment Day for that location, the Trainmen added will be paid a day s guarantee in the event no other service is performed on that calendar day. In the application of this paragraph Trainmen cut off the GEB will be paid a day's guarantee in addition to all other earnings. N. Deadheading will be paid when it occurs as a result of force-assignment to the extra board of an employee holding an assignment at an outlying point. O. Except as provided for in Article 17 Section 3 when called for service extra board Trainmen will not make less than the daily guarantee as provided for in paragraph G herein. P. Trainmen assigned to the GEB at their option may take payment in lieu of a personal leave day on holidays described in Article 9 B. (Q&A) Paragraph P. Question: Will Trainmen assigned to the GEB be allowed to receive payment of a PLD in lieu of on a holiday as described in Article 9 B.? Answer: Yes. 21

22 Q. Trainmen assigned to the GEB will have the ability to voluntarily book for optional rest upon release from duty at their home terminal subject to the following: 1. Trainmen may book for eight (8) hours undisturbed rest without affecting their GEB guarantee. 2. Trainmen may also book for ten (10) hours undisturbed rest, however it is understood that in the event Trainmen who elect to do so and do not perform service on that day as a result will be deducted the daily guarantee pursuant to the provisions of Article 11. Paragraph G(3). General Clarification Question: Answer: Question: Answer: A Trainman is displaced off his regular assigned rest day and is 2 nd out on the Extra Board. Will the Trainman whose rest day is changed have a seniority move coming? Yes, only if that trainman is going to move to another assignment. If the trainman stays on the extra board his placement will still be 2 nd out and he will have to move to another rest day. When a Conductor vacancy is filled off the extra board, will the senior of the regular Brakeman or the GEB employee be given the choice to work as a Conductor? When the regularly assigned crew consists of a conductor and a brakeman and a conductor vacancy occurs on the assignment, the regularly assigned brakeman will be given preference of working and being compensated as a conductor. If both, the conductor and brakeman vacancies are filled on an assignment, the senior trainman will be given preference of positions. ARTICLE 12 - APPROVAL OF APPLICATION FOR EMPLOYMENT A. Applications for employment as Trainman will be approved or disapproved in writing within sixty (60) days following the day the employee first becomes qualified for and performs service as a Trainman with the Company. B. An application that is rejected anytime within such period will result in termination of the employee's relationship with the Company. ARTICLE 13 RULES / INSTRUCTION CLASSES A. 1. Employees must satisfactorily complete instruction classes on Operating Rules, Safety Rules, Air Brakes and subject matter related thereto covering the CN (former GTW territory) over which they may operate. In no event is the interval of time between the completion of classes to exceed two years. Classes will be scheduled at terminals at times that are compatible with assignments operating from those terminals such that adequate opportunity is provided for all to attend. The Local Chairmen will be consulted concerning the scheduling of classes. 2. It is not the intent that employees lose time for the purpose of attending Rules Classes and they should utilize off duty time whenever possible. Make-up classes will be scheduled to the extent necessary to provide opportunity to attend for those who, because of vacation, leave of absence, etc., were unavailable for attendance at the regularly scheduled classes. B. 1. Employees satisfactorily completing instruction classes at times on other than their regular assignment, will be paid actual time in attendance, but not less than three (3) hours, at straight time 22

23 rate applicable to the last service (conductor or brakeman) performed. Claims for time in attendance at Rules Classes will indicate the location and service last performed. 2. Regularly assigned employees who lose time on particular assignment(s) as a result of being scheduled for and satisfactorily completing a regular or make-up class will be paid lost earnings provided there was no class that they could have attended without incurring time lost on their regular assignment(s). Note: Employees who do not satisfactorily complete required instruction classes will not be assigned to a regular assignment or GEB until they have successfully completed rules classes enabling them to work the service to which assigned or for which they may be called. 3. Rule or instruction classes held during a normal tour of duty will be considered as time on duty for pay purposes. C. Where training takes place away from the Trainman's home terminal, lodging will be provided, and the Trainman shall be entitled to allowances for meals and for travel between the home terminal and the course accommodation. ARTICLE 14 - ON AND OFF DUTY POINT A. Except as provided below, Trainmen shall have a designated point for going on and off duty each day. The Company will consult with the UTU Local Chairperson with jurisdiction on the respective territory prior to bulletining positions where it is proposed to change any on or off duty points. B. The starting time of a Trainman shall commence at the time he is required to report for duty, and his pay shall continue until the time he is tied up at a proper off duty location. C. When Trainmen are relieved at points other than the point of going on duty, the Company shall provide transportation to the appropriate off duty point which shall be at a recognized location as designated by the Company. D. A Trainman operated to an away from home terminal that is not his normal away from home terminal location will be considered first-out upon completion of his legal rest. Upon the expiration of twelve hours, or sooner if available, a Trainman used in this manner will only be called to deadhead or to work back to his home terminal. Upon the expiration of twelve hours, a Trainman referred to herein that is not called as described shall be considered on pay until called on duty time commences; and such time shall not be counted towards his hours of service. (Q&A) Paragraph D. Question: At the time of call will a Trainman assigned to the GEB be aware of his away from home terminal for this tour of duty? Answer: A GEB Trainman who is called for unassigned service will be notified of his away from home at time of call. However, if a change of away from home terminal is not made prior to departing the terminal then Article 14D will apply. Question: Answer: If a Trainman is called to protect a regular assignment will he assume the conditions of that assignment? Yes. 23

24 E. Except as otherwise agreed, changes will not be made in reporting points, until suitable wash, hot and cold running water and toilet facilities have been provided. Lockers will be provided for Trainmen on all assignments at their home terminal. Such facilities must comply with the applicable State DOT standards. F. Trainmen performing service in connection with the Engineering Department (work train) may be tied up at any point away from their home terminal on any of the GEB working days, but if held subject to a call for such service, a day's pay will be allowed. 1. Trainmen called to perform service as outlined herein shall remain on such assignment for its duration for up to one (1) calendar week or until the commencement of the employee s assigned rest day(s). If such individuals are not returned to their home terminal upon completion of each work day, they shall also be provided appropriate meal allowance(s) and lodging. Reasonable accommodations will be made to transport employees to an eating facility. (Q&A) Paragraph F. 1. Question: Answer: In the event employees in Work Train receive tie-up at other than a terminal, what is defined as their on or off duty point. The on and off duty point will be considered the lodging facility. 2. Service as outlined herein shall be filled from the GEB. G. Unassigned Trainmen who are tied up at their away from home terminal may be called for a maximum of one (1) trip from that terminal that does not return to their home terminal. When so used, the Trainman will be considered first-out upon completion of his legal rest and the Trainman's subsequent trip, whether working or deadhead, must return to the Trainman's home terminal. ARTICLE 15 - CALLING FOR DUTY Section 1 Calling A. A Trainman without a designated starting time shall be called not less than two (2) hours prior to the time required to report for duty, except in cases of emergency, such as floods, accidents, storms, etc., where Trainmen shall be required to report as soon as possible. B. Trainmen must designate a primary telephone number and / or pager number (up to a total of three (3) numbers), at which they can be reached for the purpose of being called. Employees will be allowed 10 minutes to respond to such call. Section 2 Used out of Order A. GEB Trainmen who are available and not called in the correct order ("runaround") in accordance with the procedures in this Agreement will be paid one half (1/2) of the basic day payment in addition to any other GEB earnings. B. There shall be no "chain" type payments and not more than one runaround payment for any particular assignment. 24

25 C. Regular assigned Trainmen not called for runs, through no fault of their own, will be paid for all time lost. If used on other assignments, money earned will be counted in computing pay for time lost (make whole). This paragraph does not constitute a guarantee. D. The incidence of runaround claims will be reviewed in the conferences established pursuant to Article 2, paragraph C in this Agreement to identify and correct any systematic problems. E. A Trainman that operates to an away from home terminal that is the source of supply point for Trainmen at that location and subsequently operates a train out of that away from home terminal enroute to his home terminal will not invoke the runaround provisions outlined in Article 15, Section 2, paragraph A herein for any Trainmen home terminalled at that location. Section 2 Paragraph E. Question: Can a Trainman listed at his away from home terminal operate a train back through his home terminal be tied up at other than his home terminal? Answer: No. Question: Answer: Can a Trainman tied up at his away from home terminal be listed for an assignment operating to other than his home terminal; and then be tied up at other than his home terminal? Yes, only after the provisions of Article 11. D. has been complied with. If so held Article 14. D. will apply. F. Trains that are tied up on line due to being overtaken by the Hours of Service Law may be re-crewed with a qualified Trainman from the nearest source of supply point via highway miles without penalty to the Company. Section 3 Called and Released When a Trainman is called, reports for duty and performs no service, and is then released prior to the expiration of ten (10) hours, he shall be allowed a minimum of one-half a day or actual time consumed, whichever is greater and returned to the bottom of the board. If the call and release service is the only service performed on that calendar day then a basic day s pay will be allowed. Section 4 Familiarization of Territory A. When Trainmen are required to run over any portion of the road with which they or any other member of the crew are unacquainted, a pilot will be furnished. (Q&A) Section 4 Question: Will a Trainman pilot/utility man be provided when a train crew is unfamiliar with a complex industry/switching facility? Answer: Yes. B. Qualified employees from other crafts may also be used to pilot trains. In no case will more than one pilot from any class of service be used to pilot a train. C. Trainmen acting as pilots will be paid a minimum of a basic day. 25

26 D. Employees will not lose time qualifying over a new territory. Section 5 Supplemental Boards Trainmen desiring to make themselves available for service on the Supplemental Board on their scheduled rest day(s) shall notify Crew Management in the proper form prior to or upon tie-up on the last day of their regularly assigned work week. Trainmen submitting a request to be placed on the Supplemental Board will be called in seniority order. (Q&A) Section 5 Supplemental Question: Answer: Will a Trainman be permitted to submit a request to be placed to a Supplemental Board at other than his home terminal? No. Question: Answer: Question: Answer: Question: Answer: Will trainman be able to mark to the supplemental board between the hours of 6:01 p.m. and 12:00 a.m. on the day prior to his day off? Yes, but the trainman is not placed to the supplemental board until 12:01 a.m. How will trainmen be placed on the supplemental board? In seniority order A trainman is called off the supplemental board for an assignment that ties up at other than the home terminal. What rate of pay is the trainman due if his return trip is on his regular scheduled working day? Straight time rate ARTICLE 16 MEAL PERIODS A. A Trainman whose assignment primarily switches or works primarily within a terminal will have, between the fifth and the seventh hour, twenty (20) uninterrupted minutes in which to eat, and reasonableness will apply. However, in granting Trainmen time for their meal, it is with the understanding that such must not cause unnecessary interference or delay with the performance of their work or the work of other crews. ARTICLE 17 - EXPENSES Section 1 Held Away From Home Terminal A. A meal allowance of $10.00 will be payable after a Trainman is held four (4) hours or more and thereafter after each additional eight (8) hours at the away from home terminal. 26

27 B. The Company will provide suitable lodging, and will be responsible for the payment of room and taxes. To be considered "suitable," at a minimum, the lodging accommodation shall be: Reputable and clean with adequate lighting; Single occupancy rooms with comfortable beds with innerspring or comparable mattresses, pillows, private lavatory and bath facilities with hot and cold running water, a chair and nightstand and television in the room; Blankets, clean linen (sheets and pillow cases), soap and towels will be supplied each occupant; Rooms will be cleaned and bed linen changed after each occupancy by personnel other than the occupant; Rooms will be cooled or heated when climatic conditions normally require such cooling or heating; Lounge, including chairs, writing tables and lamps. C. When selecting regular accommodation providers the Company will consider the proximity of restaurant facilities that are open on a 24 four hour basis. The Superintendent will consult with the respective Local Chairperson of the United Transportation Union regarding changes to regular accommodation providers. In the event the parties are unable to agree to any proposed accommodation changes, or the suitability of current accommodations, the matter will be forwarded to the LMC for resolution. (Q&A Question: Answer; Question: Answer: In the application of Article 17, Paragraph C, will the Company continue the practice of providing transportation when the eating or lodging facilities are beyond a reasonable walking distance? Yes. Will employees that are to be relieved enroute, considered as on duty until the transportation relieving them arrives? Yes, at which time Deadhead may be either continuous or separate and apart. D. Except as provided for herein, when a Trainman is tied up at other than his home terminal, upon the expiration of sixteen (16) hours away from home, the individual shall be considered on pay, until called for duty, except that such time shall not be counted towards hours of service, or overtime. Should a Trainman be called for service or ordered to deadhead after such pay begins, the held away from home terminal pay ceases at the time the service or deadhead commences. E. This provision shall not apply to regular assignments at outlying points or to Trainmen temporarily transferred or assigned to a new home terminal. GEB Trainmen called to fill an assignment, for a duration of more than one day and is required to remain at an outlying point, will be afforded a meal allowance(s) and lodging. F. The current practice of allowing Trainmen to reverse their lodging will remain in effect. Section 2 Transportation Expense 27

28 When a Trainman is required to work away from his regular assigned location, the Company will either provide transportation or reimburse the Trainman for necessary costs of transportation, which shall be at the standard driving allowance allowed by the IRS. No reimbursement will be made where the Company provides transportation. Upon approval of the Company, employees will have the option of using their personal automobile in lieu of furnished transportation. Employees who use their personal automobile in lieu of furnished transportation and the distance traveled from their residence to the location required to report for work is in excess of 60 miles for the round trip, will receive payment of one (1) hour at the daily basic rate in addition to the IRS standard driving allowance. Section 3 Deadheading Deadheading shall be paid either separate from or combined with service, in the manner least costly to the company. Where deadheading is paid separately from service, unless otherwise provided, the Trainman shall be paid a minimum of one-half day at the basic daily rate or actual time consumed, whichever is greater. If separate service deadhead is the only service performed on that calendar day a basic day s pay will be allowed for the separate service deadhead. (Q&A) Section 4 Aggregate Service Trainmen may be released four (4) hours or more. If so released the Trainman will be considered on pay until called to resume duty and such release time shall not be counted towards hours of service or overtime. In the application of this paragraph, Section 1, Paragraphs A an B of this Article will apply. ARTICLE 18 - PERSONAL LEAVE DAYS (PLD s) A. 1. Trainmen subject to the provisions of Article 6. Paragraph A, will be entitled to a maximum of eleven (11) PLD s for each calendar year, with the exception of those employees currently eligible to receive a greater number, who will continue to retain such entitlement. Effective January 1, 2007, PLD s shall be paid at nine (9) hours at the straight time hourly rate of pay, except PLD s taken on the holidays designated in Article 9 B will be paid at ten (10) hours at the straight time hourly rate of pay. Effective January 1, 2008, PLD s shall be paid at ten (10) hours at the straight time hourly rate of pay. 2. Trainmen hired subsequent to the effective date of the Agreement and those currently entitled to a maximum of 3 personal leave days, upon attaining three (3) years seniority, will be entitled to a maximum of 6 personal leave days; upon attaining six (6) years seniority, will be entitled to a maximum of 9 personal leave days; upon attaining ten (10) years seniority, will be entitled to a maximum of 11 personal leave days. Trainmen shall be automatically marked up for service upon expiration of any personal leave day(s). B. Upon forty-eight (48) hours advance notice from the employee, PLD s will be scheduled with the approval of the Crew Management Center. PLD s requested and approved as provided for herein (48 hours) must be taken and payment will be made on the following payroll period. C. Upon at least 7 days notice and subject to the needs of service, a Trainman scheduled for such designated PLD may lay off up to twenty-four (24) hours in advance of the day at the home terminal in order to avoid being at the away-from-home-terminal when the PLD begins. In the application of this paragraph GEB employees who elect to lay off 24 hours in advance will be subject to the offset amount identified in Article 11, G (3). 28

29 D. In situations where the number of applicants seeking PLD s exceeds the number of Trainmen that can be released, the Company will approve applications on the basis of the order they were received except no application may be submitted more than six months in advance. In the event more than one application is received on the same day the most senior Trainman will have preference. E. Trainmen who leave the service of the company during the year will have their PLD allocation reduced on a pro-rata basis. F. Any PLD s provided for herein that are requested but denied by the Company and not subsequently rescheduled during the calendar year or the first quarter of the following calendar year shall be paid at the rate specified herein. G. In the year that a Trainman is hired, the PLD s will be reduced by one (1) PLD for each calendar month starting in February until that employee performs his first service. A Trainman who leaves the service of the Company during the year will have his PLD allocation reduced on a pro-rata basis to allow one PLD per each full month worked. H. Subject to meeting the requirements of service the following will apply to PLD s: 1. Five (5) PLD s may be banked and used on the remaining holidays provided for in Article 9B, General Holidays after November 15 of each year. 2. All other PLD s in excess of those referred to in paragraph 1 hereof must be scheduled and/or taken prior to November 15 of each calendar year. I. Trainmen may, at their option, take payment in lieu of a personal leave day paid at the applicable hourly rate. ARTICLE 19 BEREAVEMENT LEAVE A. Bereavement leave of three (3) consecutive working days will be allowed, at the applicable rate provided for in Article 5 A., in case of death of a Trainman's "natural" or "step" brother, sister, parent, child, spouse or spouse's parent. Trainmen involved will make provision for taking leave with their supervising officials in the usual manner. B. The three (3) days may be taken at any time beginning with the date of death and ending seven (7) days after the funeral. ARTICLE 20 - HOLIDAYS Effective August 1, 2006 Trainmen who are available the immediate two days preceding and the immediate two days following a holiday identified in Article 9, paragraph B, and who work on a holiday will be paid a holiday rate of pay of: Conductor Brakemen $38.19 hour. $36.07 hour. for the first ten (10) hours worked in recognition for service performed on the holiday. All time in excess of ten (10) hours worked on the holiday will be time and one-half based on the rate outlined herein. (Q&A) 29

30 Question : Answer; Do assigned off days count towards the qualification for Holiday pay? Yes. Question : Answer; Is the holiday rate subject to general wage increases? Holiday rate is based on 1.2 times the effective hourly rate. ARTICLE 21 VACATION This article is not intended to restrict any of the existing rights of the Company except as specifically provided herein. Section 1 Entitlements Each Trainman subject to the scope of this Agreement and having continuous service (including other crafts) and who has rendered service (including other crafts) as identified herein, will be eligible for the following annual vacation entitlement allotted in order of seniority to be taken between January 1 and December 31: A. A qualifying Trainman shall be entitled to paid vacation, subject to the following: Years of Service Amount of Vacation Explanation New employees, if during the preceding calendar year has rendered service amounting to 120 days or equivalent hours paid. After 2 or more years of cumulative compensated service and; renders service amounting to 120 days or equivalent hours in the previous calendar year, and during the 2 or more years of service has not less than 240 basic days or equivalent hours. After 8 or more years of cumulative compensated service and; renders service amounting to 120 days or equivalent hours in the previous calendar year, and during the 8 or more years of service has not less than 960 basic days or equivalent hours. One (1) Week Two (2) weeks Three (3) weeks (7) calendar days with 6 day s paid, or pay in lieu thereof, if on a 6 day assignment. If a 5 day assignment is established payment will be 5 day s pay. (14) calendar days with 12 day s paid, or pay in lieu thereof. If a 5 day assignment is established payment will be 10 day s pay. (21) calendar days with 18 day s paid, or pay in lieu thereof. If a 5 day assignment is established payment will be 15 day s pay. After 17 or more years of cumulative compensated service and; renders service amounting to 120 days or equivalent hours in the previous calendar year, and during the 17 or more years of service has not less than 2040 basic Four (4) weeks 30 (28) calendar days with 24 day s paid, or pay in lieu thereof. If a 5 day assignment is established payment will be 20 day s pay.

31 days or equivalent hours. After 25 or more years of cumulative compensated service and; renders service amounting to 120 days or equivalent hours in the previous calendar year, and during the 25 or more years of service has not less than 3000 basic days or equivalent hours. Five (5) weeks (35) calendar days with 30 day s paid, or pay in lieu thereof. If a 5 day assignment is established payment will be 25 day s pay. B. Vacation shall be taken between January 1 and December 31; however, it is recognized that the exigencies of the service create practical difficulties in providing vacations in all instances. Due regard, consistent with requirements of the service, shall be given to the preference of the senior Trainman when granting vacations. Representatives of the Company and of the UTU will cooperate in arranging vacation periods, administering vacations and releasing Trainmen when requirements of the service will permit. It is understood and agreed that the Company will pay vacationing Trainmen their vacation allowances as soon as possible after the vacation period, but the parties recognize that there may be some delay in such payments. It is understood that in any event such Trainman will be paid his vacation allowance no later than the second succeeding payroll period following the date claim for vacation allowance is filed. C. Vacation taken in 2004 will be paid for at the rates in effect prior to the effective date of this agreement. Effective January 2005, a Trainman receiving vacation, or pay in lieu thereof, shall be paid for each week of such vacation at 1/52 of the compensation earned by such employee during the calendar year preceding the year in which the vacation is taken, but in no event shall such pay for each week of vacation be less than five (5) minimum basic days pay for a five day assignment or six (6) minimum basic days pay for a six day assignment. Two weeks of single day vacation is equal to (14) single days pay, when taken on a single day basis. D. Calendar days on which a Trainman is available for service (within the meaning of Articles 11, 18, 30 and 32) and on which he performs no service, shall be included in the determination of qualification for vacation. 1. In computing equivalent hours, overtime is treated as straight time, i.e., an employee working 10 hours straight time and two hours overtime will be credited with 12 hours. 2. Any issues involving the assignment or abuse of single day vacations will referred to the LMC for resolution. E. When submitting vacation requests, Trainmen should include at least three (3) choices in case of duplicate requests which will be submitted between October 1 st and November 1 st of preceding year. When requesting single day vacation days, requests will be granted in the same manner as prescribed by Article 18 Paragraphs B and C. F. If a Trainman's employment status is terminated for any reason, he shall at the time of termination be granted full vacation pay for vacation earned in the preceding year not yet granted, and vacation pay for the succeeding year if the Trainman has qualified therefore under paragraph A. If a Trainman thus entitled to vacation or vacation pay shall die, the vacation pay earned and not received shall be paid to such beneficiary as the Trainman may have designated, or in the absence of such designation, the surviving spouse, the Trainman s children, or his estate, in that order. G. Vacations, or allowances therefore, under two (2) or more schedules held by different organizations on the same Company shall not be combined to create a vacation of more than the maximum number of days provided for in any one of such schedules. Employees transferring from other crafts will have length of service and other qualifications for vacation count toward vacation as a trainman. 31

32 H. Time off on account of vacation will not affect nor offset guarantees. I. The absence of a Trainman on vacation with pay, as provided in this Agreement, will not be considered as a vacancy, temporary, or otherwise, in applying the bulletin rules of this Agreement. J. Vacations shall not be accumulated or carried over from one vacation year to another. 1. In the event a Trainman could potentially lose time at the end of his pending vacation period he may request approval of the Company that his vacation could be reduced in one year and adjusted in the next. 2. After the vacation begins layover days during the vacation period shall be counted as a part of the vacation. Section 2 United Transportation Union - Union Officials Vacation qualification criteria in effect on the date of this Agreement shall continue to apply to Trainmen who hold positions as General Chairperson, Associate General Chairperson, Local Chairperson, and State Legislative Directors ( local officials for the United Transportation Union ). It is further understood that by providing this exclusion it is not intended that the total number of such officials covered be expanded. Section 3 General A. Calendar days on which a Trainman is compensated while attending training and rules classes at the direction of the Company will be included in the determination of qualification for vacation. B. During a calendar year in which a Trainman s vacation entitlement will increase on the anniversary date, such Trainman shall be permitted to schedule the additional vacation time to which entitled on the anniversary date at any time during that calendar year. C. A Trainman may take up to fourteen (14) days of his annual vacation in single day increments, as outlined in Section 1 Paragraph C herein, and such employee shall be automatically marked up for service upon the expiration of any single day vacation. D. Each day worked on a position not covered by this Agreement shall count as a basic day for vacation qualification purposes. E. Calendar days on which a Trainman assigned to an extra list is available for service and on which days he performs no service, will be included in the determination of qualification for vacation; also, calendar days, not in excess of sixty (60), on which a Trainman is absent from and unable to perform service because of sickness or injury received on duty will be included. F. All guarantee compensation paid to extra Trainmen shall be considered as service for vacation pay and qualification days. G. Where a Trainman is discharged from service and subsequently reinstated without loss of seniority and/or benefits, service performed prior to discharge and subsequent to reinstatement shall be included in the determination of qualification for vacation during the following year. Trainmen restored to service will be credited for all time paid for entitlement purposes. H. In instances where employee s who have become members of the Armed Forces of the United States return to the service of the Company in accordance with the Veterans Re-Employment Rights Act (8 USC Title ), as amended from time to time, time spent by such employee s in the Armed Forces 32

33 subsequent to their employment by the Company will be credited as qualifying service in determining the length of vacations for which they may qualify upon their return to the service of the Company. ARTICLE 22 - BENEFITS Section 1 Health & Welfare Employees coming under the scope of this Agreement, along with their dependents, and retirees, if any, will be subject to the National Railway Carriers and United Transportation Union Health and Welfare Plan, the Railroad Employees National Dental Plan, and the Railroad Employees National Vision Plan, as may be amended, with employee contribution levels limited to those contained in the November 6, 2003, National Railway Carriers and United Transportation Union Health and Welfare Plan, the Railroad Employees National Dental Plan, and the Railroad Employees National Vision Plan. For clarity, beginning January 1, 2007 and continuing during the term of this agreement, the formula for the cap on employee contributions as contained in the November 6, 2003 agreement shall apply thru the term of this Agreement and beyond until amended by the parties signatory to this Agreement. Section 2 Short Term Disability A. The Short Term Disability Insurance will continue in effect. B. Such insurance, as described above, will be in the amounts of 60% of earnings to a maximum of $ weekly income benefits. The conditions for the short-term disability income insurance will be as described in Attachment A to this Agreement. Section 3 Life Insurance A Trainman's maximum life insurance coverage is $50,000. Trainmen requiring assistance concerning the foregoing may contact a Human Resources Representative for further information. Section 4 Other Accidental Death Insurance - A Trainman's maximum coverage is $50,000. Employees requiring assistance concerning the foregoing may contact a Human Resources Representative for further information. Section 5 Off Track Vehicle Accident Benefits The parties agree to maintain the current off track vehicle accident benefits as provided in the Article XIII of the August 25,1978 UTU National Agreement. Section 6 Stock Purchase Plan The Company will maintain for the benefit of Trainmen covered by this Agreement a stock purchase plan, which may be changed from time to time provided such changes are applicable to Company employees generally. Section 7 Employee Family Assistance Program The Company will maintain for the benefit of Trainmen covered by this Agreement an Employee Family Assistance Program, which may be changed from time to time provided such changes are applicable to Company employees generally. 33

34 Section 8 401K Plan A. Within ninety (90) days from the effective date of this Agreement, the company will amend the 401 (k) plan for Trainmen covered by this Agreement. Under the plan, for the first four percent (4%) of an employee's salary contributed, the company will contribute $.25 for each $1.00 contributed by the employee. Trainmen may contribute an amount above 4%, up to the maximum legal amount with no company participation. B. The company will be responsible for all costs of establishing the plan, including the making of payroll deductions and payments of withheld wages to the trustee. The employee will be responsible for all costs of services in connection with the operation of the 401 (k) plans. ARTICLE 23 - PHYSICAL EXAMINATIONS Trainmen covered by this Agreement may be required to take medical examinations by the Company's physician at the Company's expense. If the medical examination must take place outside the Trainman's terminal, the individual will be allowed payment for meals, and travel. Trainman will be made whole for any earnings lost. ARTICLE 24 - MEDICAL DISQUALIFICATIONS A. If a Trainman is found to be medically disqualified by the Company's physician and the Trainman is of the opinion that his condition does not justify removal from the service or restriction of his rights to service, appeal will be made to the designated officer of the Company for a joint medical board to be established. B. The Trainman involved, or his representative will select a physician to represent him and the Company will select a physician to represent it (who may be the original examining physician) in conducting a further medical examination. If the two physicians thus selected agree, the conclusion reached by them as to the individual's medical condition will be final. C. If the two physicians selected do not agree as to the medical condition of such individual, they will select a third physician to be agreed upon by them, who shall be a practitioner of recognized standing in the medical profession and a specialist in the disease or ailment from which the individual is alleged to be suffering. The three physicians thus selected will examine the Trainman and render a report with reasonable promptness setting forth his physical condition and their opinion as to his fitness to continue service in his regular employment, which shall be accepted as final. Should the decision be adverse to the individual, and it later appears through medical findings that his condition has improved, a re-examination by the Company's physician will be arranged after a reasonable interval upon the request of the Trainman or the Union. In the application of this provision, Trainman reinstated will be made whole for any earnings lost. D. The Company and the Trainman will each pay for the costs of their chosen physician and share equally in paying the costs of the third physician. E. If a Trainman has been out of active service for more than ninety (90) days, before resuming service he will be required to pass a physical examination (including drug and alcohol testing) before being permitted to return to duty. ARTICLE 25 PAYDAY / PAYROLL AND DEDUCTIONS 34

35 A. The Company may upon sixty (60) days notice to the General Chairman, change the payroll period to a biweekly basis, in arrears, by direct deposit provided that the company institutes measures to minimize the impact of such change on affected Employees. Adjustments to a Trainman's pay will be processed not later than the pay period following the reported time. Payroll shortages of a basic day or greater will be made within twenty four hours of requesting such. B. Payroll payments will be made only to a direct checking and/or savings deposit account as specified by the Trainman. C. Payroll deductions are available to all permanent full-time Trainmen who execute a suitable written deduction authorization for the following purposes: Periodic Union dues, agency fees and assessments included in, monthly dues (not including fines and penalties) payable to the Union. ARTICLE 26 UNION SHOP AGREEMENT A. Subject to the terms and conditions below, all employees of the Company subject to this Agreement shall, as a condition of their continued employment under this Agreement, become members of the UTU within sixty (60) calendar days of the date they first perform compensated service under this Agreement, and shall maintain membership in good standing in the UTU while subject to this Agreement; provided, however, that this requirement for membership in the UTU shall not be applicable to: 1. Those to whom membership is not available upon the same terms and conditions as are generally applicable to any other member; 2. Those to whom membership has been denied or terminated for any reason other than the failure of the employee to tender the periodic dues, initiation fees and assessments (not including fines and penalties) uniformly required as a condition of acquiring or retaining membership in the Union; 3. Those who are members of another labor organization as permitted by Section 2, Eleventh (c) of the Railway Labor Act, as amended; or, 4. Those who elect not to join the Union, in which case they shall be required to remit to the Union a monthly agency fee which shall not be in excess of the standard monthly dues required of members. B. Trainmen, who are assigned or transferred for a period of thirty (30) calendar days or move to employment not covered by such Agreement, or who are on leave of absence for a period of thirty (30) calendar days or more, may not be required to maintain membership as provided in this Rule so long as they remain in such other employment, or on such leave of absence, but they may do so at their option. If and when such employees return to service covered by this Agreement, they shall comply with the provisions of this Rule within thirty (30) calendar days of such return to service. C. A Trainman whose membership in the UTU is suspended because of furlough or off duty illness or injury for a period of thirty (30) calendar days or more, shall be granted upon his return to service under this Agreement, a period of thirty (30) calendar days to comply with this Rule. D. Every Trainman required by the provisions of this Rule to become and remain a member of the UTU shall be considered by the Company to be a member of the UTU unless the Company is advised to the contrary in writing by the UTU. The UTU shall be responsible for initiating action to enforce the terms of this Rule. 35

36 E. The UTU shall furnish to the Company, in writing, the name and roster number of each Trainman whose seniority and employment the UTU requests be terminated by reason of failure to comply with the membership requirements of this Rule. F. In the event the Company wishes to dispute the correctness of the UTU 's position, it shall so notify the UTU within ten (10) calendar days of receipt of the notice from the latter, stating the reasons therefore. If, (1) no such exception is taken by the Company, or (2) the UTU does not withdraw its request within ten (10) calendar days from the date of the notice of exception, the Company shall transmit to the Trainman at his last known address, through registered United States Mail, return receipt requested, a copy of the UTU 's request, accompanied by an explanatory letter, a copy of which shall be furnished the UTU. ARTICLE 27 - HANDLING OF CLAIMS AND GRIEVANCES Section 1 Representation A. The United Transportation Union shall have the exclusive right to represent all Trainmen in company level grievance, claim and disciplinary proceedings on those Companies on which the UTU is the lawfully recognized or certified collective bargaining representative for that craft. B. The General Committee of Adjustment of the United Transportation Union, will represent all Trainmen in the making of contracts, rates, rules, working agreements and interpretations thereof. C. All disputes involving Trainmen will be handled in accordance with the provisions of this Agreement as interpreted by the UTU General Committee and the Company. Section 2 Claims and/or Grievance Process STEP 1 For the initial claim or grievance, Trainman, or on behalf of such an employee his local chairman, may submit time claims electronically within 60 days of the date of occurrence. An electronic decision will be issued within 60 days from receipt of claim or grievance. STEP 2 The local chairman may list the claim for discussion in writing within 60 days from date declined under Step 1 to the Superintendent having jurisdiction over the involved territory. A decision will be issued within 60 days from discussion. STEP 3 Claims declined under Step 2 may be appealed by the General Chairman to the Director Labor Relations. The Director Labor Relations or his designate, has 60 days from receipt of the grievance to pay or decline the claim. Within 60 days from the date received the General Chairman will be notified of payment or disallowance. A decision will be issued within 60 days from discussion. Step 4 The General Chairman will list any claims or grievances with the Director Labor Relations 30 days before the next scheduled Labor/Management Meeting under Step 5. 36

37 Step 5 Any unresolved disputes subsequent to the Labor/Management Committee meeting may be advanced before a tribunal established pursuant to law or agreement. Discipline Step 1 The UTU General Chairperson has 180 days from the date the discipline was assessed to present a written appeal to the Director Labor Relations. The Director Labor Relations, or designate, has 60 days from receipt of the grievance to either respond to the claim or if agreed by the General Chairperson to set a date to conference the case. If a discipline claim conference is held the 60 days to respond will commence from the date of the conference. Note 1: Step 1 does not prevent the UTU Local Chairperson discussing the issue locally with the Superintendent in order to resolve the case. Step 2 The General Chairperson will list any claims or grievances with the Director Labor Relations within 60 days of notification of disallowance. Labor/Management Meetings as outlined in Section 3, paragraph s B and C herein will handle claims presented 30 days before the next scheduled meeting. Section 3 General A. The Labor / Management Resolution Committee will meet quarterly during the months of January, April, July, October as mutually agreed, to review and resolve outstanding Trainmen time claims and grievances. B. The Committee will consider the entire record of each dispute submitted to it. Decisions made pursuant to this process will be written by the Company within forty-five (45) days of the meeting date and will represent the final and binding decision on such grievances. C. The handling of claims and grievances by the Committee will constitute any conference prerequisite to submission of disputes to a public law board tribunal established pursuant to law or by agreement. In the event that a majority of the Committee does not agree on the resolution of a particular grievance, either party may initiate proceedings before a tribunal established pursuant to law or by agreement within twelve (12) months of the Committee s written decision having been rendered. ARTICLE 28 INVESTIGATIONS AND DISCIPLINE A. Employees will not be assessed discipline until after a fair and impartial investigation. A Trainman held out of service pending an investigation will be provided with a written confirmation. B. Investigation by the company will be held within ten (10) days of the Company s awareness of the incident leading to the investigation, except in cases where any of the principals involved, including witnesses, are absent from the property, are unavailable, or in cases of absence without leave. Postponements will be granted to either party upon a reasonable showing of need. Employees shall have reasonable opportunity to secure the presence of relevant witnesses. C. Employees will be notified of investigation time and date at least three (3) days in advance, except in cases where they are being held off for investigation. 37

38 EXAMPLE: Investigation scheduled for Friday; employee is to be notified no later than 2359 hours on the preceding Tuesday. Notification may be given orally but must be confirmed in writing as soon as possible thereafter. D. Employees who are to be disciplined will be so notified within thirty (30) days after investigation is completed. If not satisfied with decision they may appeal as provided in Article 27. E. So far as practicable investigations will be held at home terminal. When investigations take place away from the Trainmen s home terminal, lodging will be provided as necessary, and the Trainman shall be entitled to allowances for meals and for travel between the home terminal and the investigation. F. Employees under charges may represent themselves or be assisted or represented by a representative or member of the United Transportation Union. G. A copy of the transcript of all testimony including exhibits will be furnished to the Local Chairman and employee under charges, at the time or before discipline is assessed. At a hearing and/or investigation a Trainman or his representative shall have the right to record at his expense the hearing/investigation on a recording device. This provision will not be used to delay or postpone the proceedings. H. Employees will be apprised of the time, date, place, charge(s) against him, and place of investigation with a copy furnished to the Local Chairman. The notice will contain the names of relevant witnesses who are to be present when such are known at the time the notice is issued. I. Employees required to attend investigations and not found guilty will be paid for all time lost. J. Employees required to attend investigation and not found guilty and who lose no time will be allowed time in accordance with paragraphs (1) and (2), as follows: (1) If required to by the Company to be in such attendance continuous with their working shift or started not to exceed one (1) hour after completion of their shift, or begun not to exceed one (1) hour in advance of their starting time on the basis of combined service and attendance time. If called for such attendance during working shift no additional compensation will be allowed. (2) If called by Company for attendance other than as outlined in the preceding paragraph, actual time not to exceed one (1), minimum day will be allowed at the rate of the class of service previously engaged in with a minimum of two (2) hours for each calendar date such attendance is required. K. When request is made for leniency for a discharged employee and Company is agreeable to returning such employee to service on a leniency basis he will not be given his former seniority without prior agreement with the General Chairperson of the UTU. L. An employee who is to be placed under charges may by mutual agreement with the Officer of the Company waive his right to an investigation under this Article by signing a waiver in the following form: WAIVER OF INVESTIGATION (Charges to be stated here) I,, accept responsibility in connection with the above charge(s) and do hereby waive my right to an investigation under Article 28. I am willing to accept the following discipline: 38

39 (Discipline) I agree that no appeal of the discipline assessed will be made by me or on my behalf. (Signature of Witness) (Signature of Employee) (Date) I have consulted my Union Representative I do not desire to consult my Union Representative M. Letters of Caution or Warning are not discipline, but are treated as a matter of record. ARTICLE 29 - TIME OFF FOR UNION BUSINESS A. A Trainman who is elected or appointed to a full time position with the United Transportation Union shall be granted an unpaid leave of absence for the duration of time he holds such position. B. In January of each year, the Union shall provide the Company with the names of the Local Chairpersons who should be granted time off without pay and will not be subject to the provisions of Article 11, Paragraph E. 1, to conduct Union business. C. Other Local Union officers will be allowed time off consistent with the needs of service. ARTICLE 30 - ATTENDING COURT AND INQUESTS Trainmen who are required to attend court or inquests on behalf of the Company shall be made whole for lost wages, or be paid for actual time in attendance if no lost time is incurred. ARTICLE 31 - LEAVE OF ABSENCE WITHOUT PAY Section 1 General A. Trainmen shall not be expected to work when sick, but in case of being compelled to lay off on account of sickness of themselves, or family, should in some manner notify the proper authority of their inability to protect the service requirements of the Company. B. When a Trainman on a regularly assigned run lays off for any cause, upon return to active service he must be available for duty at least three hours before the bulletined spread time or starting time of the assignment. C. The General Chairperson will be furnished a copy of each extended leave of absence granted to Trainmen. D. Trainmen may return to work prior to the expiration of a leave of absence when there is no other prohibition. E. Trainmen who do not return to service at the expiration, of their leave of absence, and who have not submitted application for an extension thereof, will be notified that they are absent without permission and such notice, sent via certified mail, will instruct them to return to service or to 39

40 Section 2 satisfactorily account for their absence within 15 days or forfeit seniority as Trainman. Trainmen who forfeit their seniority as a result of the provisions outlined herein with have their employment relationship with the Company terminated. A copy of the notice to the absent Trainman will be furnished to the Local Chairperson and General Chairperson of the United Transportation Union on the territory concerned. Less Than 1 Year Trainmen may, upon written application to their employing officer, be granted leave of absence for a period or periods not to exceed one year. Extensions to the one year period may be granted when agreed to by the Company and the General Chairperson of the United Transportation Union. Section 3 Illness / Injury A. In the event of absence occasioned by illness or injury, Trainmen will be granted leave of absence automatically upon presentation of written application accompanied by appropriate substantiating medical evidence. Such automatic leaves will not be for a period of more than one year, and extensions thereof will require a new application and further substantiating medical evidence. B. Provided return to service is approved by Chief Medical Officer, Trainmen who have been injured on duty shall be permitted to return to work without signing a release. Section 4 Official / Military Trainmen accepting official positions with the CN Railroad or the United Transportation Union will retain their seniority while holding such position, the same as if continuously in train service. Trainmen elected or appointed to public office may be granted leave of absence for the duration of their term of office or appointment. Trainmen in military service will be granted leave of absence in compliance with applicable law. ARTICLE 32 - JURY DUTY When a Trainman is summoned for jury duty and loses time from his assignment as a result thereof, he shall be paid for actual time lost with a maximum of a basic day s pay at the straight time rate of his position for each calendar day lost less the amount allowed him for jury service for each such day, excepting allowances paid by the court for meals, lodging or transportation, subject to the following qualification requirements and limitations: (i) (ii) (iii) A Trainman must furnish the Company with a statement from the court of jury allowances paid and the days on which jury duty was performed. The number of days for which jury duty shall be paid is limited to a maximum of 60 days in any calendar year. No jury duty pay will be allowed for any day as to which the Trainman receives vacation pay. ARTICLE 33 - BULLETIN BOARDS The Company shall provide space on bulletin boards at all home terminals to post notice of union business, provided that such notice(s) shall not include any defamatory or anti-company material. 40

41 ARTICLE 34 PRODUCTIVITY FUND / CREW CONSIST Section 1 Productivity Fund A. Productivity fund payments will continue to be made in accordance with the July 1, 1986 Crew Consist Agreement, as amended by the January 21, 1999 letter regarding productivity fund payments. B. Payment made to eligible employees shall not be included in computing vacation pay. C. Payment made to eligible employees out of the Productivity Fund shall not be used in the computation of any monetary guarantees both for and against the employee. Section 2 Crew Consist A. The standard crew will consist of a Conductor. The company may assign more than one Trainman to any crew. (Q&A) Section 2. Question: If an assignment is bulletined that normally consists of a conductor and a brakeman and the regularly assigned brakeman is unavailable to protect the assignment, is the assignment a must fill assignment? Answer: No, however, provided the availability of trainman and the requirements of service permit, the vacancy on the job will be filled. Question: Answer: Question: Answer: May Utility Trainmen be required to work with an Engineer Only or Hostler Assignment. No, however Utility employees may be required to attach themselves to a Conductor Only position. Will a Utility employee be required to work a terminal assignment and at an outlying location during the same shift? Yes, in accordance with the provisions of Article 6, Paragraph D (i). Utility Positions will tie up at the home terminal of the assignment. B.(1) A Utility position may be used to assist an assignment(s) pursuant to the provisions of Article 4 Scope Rule herein and will tie up at the home terminal. Utility positions will be used to assist other assignments or assist in expediting the movement of trains pursuant with the terms of this Agreement. (2) When authorized and willing to use his personal automobile, a Utility Employee will be entitled to thirty-five ($35.00) dollars in addition to the actual miles driven, with a minimum of twenty (20) miles per day at the standard driving allowance allowed by the IRS. Employees authorized to use their personal automobile will be covered by the provisions of Article 22, Section 5 Off Track Vehicle Accident Benefits. (3) Utility employees may be required to operate Company provided vehicles; however, employees who do not possess a valid driver s license and cannot comply with these requirements will not be censured in any way and can be run-around without penalty. 41

42 ARTICLE 35 - CREW CALLING RECORDS The Company shall provide each Local Chairperson and the General Chairperson with access in the Crew Calling Computer system that enables them to research calling records and history. Information that is not available in the Crew Calling Computer system will be furnished to the General Chairperson or Local Chairperson upon written request. ARTICLE 36 CHICAGO TERMINAL OPERATIONS A. In the event operational changes necessitate the implementation of the provisions of the Operating Plan approved by STB Finance Docket(s) referencing the CN, IC, WC and/or the GTW, the UTU will fully cooperate with the implementation of such activities. It is also agreed that the Company and the UTU will endeavor to allocate work between the affected groups equally to minimize any impact of such coordination. (Chicago Coordination Agreement was implemented and is reprinted below for easy reference: MERGER IMPLEMENTING AGREEMENT Between CANADIAN NATIONAL RAILWAY COMPANY/GRAND TRUNK CORPORATION/ILLINOIS CENTRAL RAILROAD COMPANY/CHICAGO, CENTRAL AND PACIFIC RAILROAD COMPANY/WISCONSIN CENTRAL TRANSPORTATION CORPORATION And UNITED TRANSPORTATION UNION (Trainmen) ( UTU ) WHEREAS, the Surface Transportation Board (STB), in a decision dated May 21, 1999, (STB Finance Docket No ) approved the acquisition by Canadian National Railway Company ( CNR ), Grand Trunk Corporation ( GTC ), Grand Trunk Western Railroad Incorporated ( GTW ), of control of Illinois Central Corporation ( ITC CORP ), Illinois Central Railroad Company ( IC ), Chicago, Central & Pacific Railroad Company ( CCP ), and Cedar River Railroad Company (CRRC ) (collectively, IC ) subject to the conditions for the protection of railroad employees described in New York Dock Railway Control Brooklyn Eastern District Terminal, 360 I.C.C. 60 (1979), ( Protective Conditions ); and WHEREAS, the Surface Transportation Board (STB), in a decision dated September 5, 2001, (STB Finance Docket No ) approved the acquisition by Canadian National Railway Company ( CNR ), Grand Trunk Corporation ( GTC ), Grand Trunk Western Railroad Incorporated ( GTW ), Illinois Central Corporation ( IC CORP ), Illinois Central Railroad Company ( IC ), Chicago, Central & Pacific Railroad Company ( CCP ), and Cedar River Railroad Company ( CRRC ), of control of Wisconsin Central Transportation Corporation ( WCTC ), Wisconsin Ltd. ( WCL ), Fox Valley & Western Ltd ( FVW ), Sault Ste. Marie Bridge Company ( SSMB ), and Wisconsin Central Chicago Link Ltd. ( WCLL ) (collectively, WC ) subject to the conditions for the protection of railroad employees described in New York Dock Railway Brooklyn Eastern District Terminal, 360 I.C.C. 60 (1979), ( Protective Conditions ); and 42

43 WHEREAS, the UTU represents trainmen employees ( Employees ) under existing agreements on the CN properties in question; IT IS AGREED: SECTION 1. - COLLECTIVE BARGAINING AGREEMENT. Employees will continue to be governed by their existing Collective Bargaining Agreements, subject to the conditions contained herein. SECTION 2 CONSOLIDATED CHICAGO TERMINAL BOUNDRIES. The Chicago Terminal will be the CN owned, leased or operated trackage within the boundaries of the Elgin, Joliet and Eastern Railroad ( EJ&E ) in the Chicago area, including the trackage encompassing existing GTW territory extending west from Griffith, Indiana (Milepost 36.5), and existing IC territory extending north from Matteson, Illinois (Milepost 31.6), and extending north from Plaines (Milepost 41.0), and existing WC territory extending south from Leithton, Illinois (Milepost 38.6) and CCP territory extending east from Munger, Illinois (Milepost 35.7). SECTION 3 ASSIGNMENTS. A. Work currently bulletined at existing yards within the Chicago Terminal will continue to be work that will be advertised to Employees at those locations, e.g. assignments at Schiller Park will continue to be advertised to Employees at that location. The same requirements also apply to Markham, Elsdon, Glenn and Hawthorne. This Agreement does not transfer, on a permanent basis, work from one property to another. B. All assignments may receive and/or leave their trains at any location within the boundaries of the Chicago Terminal and may without restriction perform any UTU Agreement covered work at any location with the Chicago Terminal. 1. WC crews performing CN directed work not associated with their train at other than Schiller Park and within the Chicago Terminal will be afforded the rates of pay in effect for Employees on that property, or Wisconsin Central Property, whichever is greater, for actual time so consumed, with a minimum payment of one-hour. SECTION 4 HOURS OF SERVICE RELIEF. All extra crews or regular assignments may perform Hours of Service relief without restriction within the Chicago Terminal, subject to the following; 1. The train must be within one train length of the Chicago Terminal boundaries defined in Section 2 herein. 2 Trains that require relief due to Hours of Service that are beyond one train length must be relieved in accordance with the existing provisions of the agreement applicable to that specific property. SECTION 5 EXTRA BOARDS. A. Guaranteed Extra Boards (GEB) will continue to protect work under their existing Collective Bargaining Agreement provisions. When a particular GEB is exhausted, the following calling procedures will apply for work within the Chicago Terminal, on a single tour of duty basis: Elsdon (GTW) is exhausted: 43

44 Step 1 Elsdon Supplemental List Step 2 Markham IC GEB Step 3 Schiller Park GEB Step 4 Glenn GEB Step 5 Hawthorne GEB Markham (IC) is exhausted: Step 1 Markham Supplemental List Step 2 Glenn GEB Step 3 Hawthorne GEB Step 4 Elsdon GEB Step 5 Schiller Park GEB Schiller Park (WC) is exhausted: Step 1 Schiller Park Supplemental List Step 2 Hawthorne GEB Step 3 Glenn GEB Step 4 Elsdon GEB Step 5 Markham GEB Glenn (IC) is exhausted: Step 1 Glenn Supplemental List Step 2 Hawthorne GEB Step 3 Markham GEB Step 4 Schiller Park GEB Step 5 Elsdon GEB Hawthorne (IC) is exhausted: Step 1 Hawthorne Supplemental List Step 2 Glenn GEB Step 3 Markham GEB Step 4 Schiller Park GEB Step 5 Elsdon GEB B. The Company will provide transportation from the employee s GEB location to their on-duty location, however, upon approval of the Company, employees will have the option, at their discretion not subject to censure of discipline, of using their personal automobile in lieu of furnished transportation. Employees who use their personal automobile in lieu of furnished transportation will be provided payment for protecting service for that assignment at the following rates; 1) Schiller Park to Markham/Elsdon - $45 2) Markham/Elsdon to Schiller Park - $45 3) Schiller Park to Glenn/Hawthorne - $25 4) Glenn/Hawthorne to Schiller Park - $25 5) Markham/Elsdon to Glenn/Hawthorn - $35 6) Glenn/Hawthorne to Markham/Elsdon - $35 C. The foregoing travel allowances will not be used to offset any GEB guarantee. The foregoing travel allowances will be in addition to the employee s trip and/or tour of duty. 44

45 D. This Agreement does not alter the piloting provisions of the respective Collective Bargaining Agreements currently in effect. SECTION 6 - PROTECTION: A. Employees, who presently are not furlough protected under their respective Collective Bargaining Agreements, who are using their seniority within their respective districts within the physical boundaries defined under this Agreement, will become furlough protected as defined under the terms of their respective Collective Bargaining Agreements upon implementation of this Agreement. B. Pursuant to Article 1, s.3 of the New York Dock Protective Conditions, the UTU hereby accepts the employee protective conditions contained in their respective Collective Bargaining Agreements and in this Agreement in substitution of those contained in New York Dock. C. Article 26, s.2 of the June 26, 2002 WC UTU Agreement is amended to include Schiller Park as a Prior Rights location. Employees who have been awarded positions at Schiller Park as of the effective date of this Agreement shall have prior rights to the number of positions at Schiller Park which exist upon the effective date of this Agreement, and shall not be subject to forced relocation to another terminal. SECTION 7 GENERAL PROVISIONS. A. Except to implement the terms and conditions provided for herein, all other terms of the respective Collective Bargaining Agreements remain in full force and effect. Should the provisions of the any of the respective Collective Bargaining Agreements conflict with the terms and conditions contained herein, this Agreement will apply. B. This Agreement becomes effective January 28, 2006 and will remain in effect until changed or amended in accordance with the Railway Labor Act, as amended. C. Signed this 27 day of January, FOR THE COMPANY FOR THE ORGANIZATION Roger K. MacDougall Sr. Director, Labor Relations W. E. Biedenharn, Jr. General Chairman T. E. Rice D. Hiatt Sr. Manager, Labor Relations General Chairman J. A. Liepelt J. Larson Vice President Operations General Chairman 45 T. Bublitz

46 General Chairman January 16, 2006 Merger Implementing Agreement Signature Page (Cont.) APPROVED: M. B. Futhey, Jr. Vice President Mr. B. R. Wigent Vice President Mr. P. D. Drennan Vice President UTU Chicago Implementing Agreement Side Letter This is in regard to our discussions concerning the attached New York Dock implementing agreement with regard to consolidation of operations within the Chicago Terminal as specifically described therein. This will confirm our understanding that the parties agreement to the attached New York Dock implementing agreement shall be without prejudice to either parties position as to the right of the Carrier to serve a subsequent Section 4 New York Dock Notice in connection with a future consolidation involving territories identified in the attached New York Dock implementing agreement. In particular, the Organization has taken the position that the attached New York Dock implementing agreement precludes the Carrier from serving a subsequent Section 4 New York Dock Notice with regard to a consolidation of the territories identified in the attached New York Dock implementing agreement. The Carrier disagrees with the Organization s position and takes the position that Article 1, Section 4 of New York Dock permits the service of subsequent Section 4 New York Dock Notices. If this accurately represents our discussions, please indicate your agreement by signing in the space below. FOR THE COMPANY FOR THE ORGANIZATION Roger K. MacDougall Sr. Director, Labor Relations W. E. Biedenharn, Jr. General Chairman D. Hiatt General Chairman J. Larson General Chairman 46

47 T. Bublitz General Chairman Side Letter 2 Schiller Park, Illinois United States Region Labor Relations Department South Ashland Ave, Homewood, IL January 28, 2006 Mr. J.T. Larson General Chairman United Transportation Union 300 W. N. Water Street New London, WI Dear Mr. Larson, This shall confirm our agreement reached in Homewood, IL in connection with the Merger Implementing Agreement i.e., Chicago Coordination Agreement dated January 28, 2006 in regards to the application of SECTION 6 - PROTECTION, paragraph C. as contained therein with reference to Trainmen employed by CN/WC employed at Schiller Park, IL. It is mutually agreed and understood that the below listed Trainmen employed at Schiller Park, IL shall not be subject to furlough for any reason. Additionally, the below listed Trainmen shall not be subject to forced relocation from Schiller Park to another District/Terminal on CN/WC or subject to forced relocation to another District/Terminal within the Chicago Coordination or elsewhere. 1. Edwards, Lyndell 2. Kareka, Bernard 3. Betts, Joseph 4. Lara, Sergio 5. Roman, Erick 6. Amschl, John 7. Scardina, Jack 8. Kirinovic, Thomas 9. Sterling, Scott 10. Johnson, Donte 11. Stakenas, Bob 12. Foley, Joseph 13. Bernal, Pete 14. Keys, Lucius 15. Froglia, Bruno 16. Ponce, Tony 17. Floyd, Colleen 18. Emme, Rodney 47

48 Furthermore, it is mutually agreed and understood that the number of Trainmen positions/assignments advertised at Schiller Park Yard located at Schiller Park, IL shall not be less than eighteen (18) Trainmen positions/assignments the number of those employees listed above. The number of protected positions shall be reduced each time one of the above employees leaves the Schiller Park Terminal. for any reason. This Agreement shall become effective on January 16, 2006 and thereafter, as long as the above referenced Implementing Agreement remains in effect, or until changed or modified in accordance with the provisions of the Railway Labor Act, as amended. Please acknowledge your agreement by signing your name in the space provided below. Very truly yours, R.K. MacDougall Sr. Director Labor Relations, CN I agree: J.T. Larson, General Chairman, UTU ARTICLE 37 - GENERAL PROVISIONS A. The parties to this agreement shall not serve or progress, prior to the attrition of all protected employees, any notice or proposal for changing the crew size and or productivity fund provided for in this agreement. As it pertains to this Article, protected employees are Trainmen with a seniority date as of the effective date of this agreement. B. The foregoing changes are in full and final settlement of all requests served by either party signatory hereto on or prior to August 17, C. The purpose of this Agreement is to fix the general level of compensation and rules covering working conditions through August 1, 2010, and thereafter until changed or modified in accordance with the provisions of the Railway Labor Act, as amended. Neither party to this Agreement shall serve prior to March 31, 2010 any notice or proposal for the purpose of modifying, adding to, or deleting from the provisions of this Agreement to become effective prior to August 1, D. The above provisions do not prohibit the parties from reaching agreements on any subject that may be mutually beneficial and agreeable. 48

49 E. It is agreed that any inadvertent omissions or errors will be discussed between the parties and corrected if necessary. F. Within one hundred and twenty (120) days following ratification, the Company will provide a revised copy of the current collective agreement, one per each employee, subject to this agreement and will provide the General Chairman an electronic copy of such collective agreement. G. Housekeeping changes of the language will be made to reflect proper references to the UTU, grammatical errors, spelling errors, interpretations as described in LMC minutes and memos, etc. H. It is agreed that retroactive wage payments will be made within ninety (90) days from the signing of this Agreement. I. This Agreement is effective on August 17, At such time, unless otherwise referred to herein, all other Agreements in effect between the parties are considered null and void, and this Agreement is the only Agreement in effect between the parties. Signed this day of, 2006, at Homewood, IL FOR THE CANADIAN NATIONAL RAILWAY FOR THE UNITED TRANSPORTATION UNION R. K. MacDougall D. E. Hiatt Senior Director Labor Relations General Chairman T. Miller General Manager Operations J. R. Henry Vice-General Chairman T. E. Rice Senior Manager Labor Relations E. St.Amant Manager Labor Relations 49

50 Approved: Approved: K. A. Madigan Vice-President Labor Relations North America C. Vahldick Vice-President - UTU 50

51 By August 17, 2006 Memorandum of Understanding. Side Letters 1, 2, 5, 6, 10 and 12 were removed, Side letters 14, 15, 16, 17 and 18 were added. Side Letter 8 was modified. Side Letter 3 - Standing Bid February 25, 2004 Canadian National South Ashland Ave, Homewood, IL Mr. D. E. Hiatt General Chairperson Dear Sir: The following confirms our discussion during the just concluded negotiations that resulted in the February 25, 2004 Hourly Rated Agreement concerning the Standing Bid Assignment to positions. Upon 30 days notice to the General Chairman, the following will serve as general principles to define the application and operation of the Standing Bid System, when such are agreed upon. Assignment to positions shall be governed by seniority. A standing bid system will operate and employees job preferences will be maintained in crew calling system and can be updated under the following rules. This procedure permits employees to submit their choice for assignments in order of preference and such assignments will be awarded to employees based upon their relative seniority standing. SECTION 1 Submitting Choices (Start Up) A. A Trainman who does not submit his Board Adjustment Bid Card Form at the initial Board Adjustment when this Agreement takes effect will be assigned in the following manner: 1. unfilled position at the home terminal, if none, 2. unfilled position on the GEB at the home terminal, if none, 3. unfilled position on the Seniority District. B. Trainmen must submit their Board Adjustment Bid Card Form indicating their choices, which must be received by the Crew Management Center at least seven (7) days prior to the implementation of the Standing Bid System. Upon request the Local Chairperson will be provided a copy of a Trainman s Board Adjustment Bid Card Form via electronic transmission. C. Where provision is made for the senior qualified applicant to be assigned it will be subject to prior rights on the Seniority District. D. A Trainman who does not record all available positions will, when unable to hold positions recorded, be assigned in the following manner: 1. unfilled position at the home terminal, if none, 51

52 2. unfilled position on the GEB at the home terminal, if none, 3. unfilled position on the Seniority District. SECTION 2 Submitting Changes (After Start Up) Permanent Vacancy A. On Sunday at 22:01 prior to the first Monday of each 28-day period (to be effective at 00:01 on the first Monday), all boards and assignments will be adjusted based upon the preferences Trainmen have submitted on their Board Adjustment Bid Card. This is known as Board Change Day. 1. Trainmen will be permitted to make changes or insert new assignments to their Board Adjustment Bid Card between 00:01 Monday to 23:59 Friday during the week preceding Board Change Day. The change may be made by phone when unable to be made by computer, such as a Trainman returning from vacation, leave of absence or discipline, etc. Temporary Vacancy B. Weekly, at 22:01 Sunday (to be effective at 00:01 on Monday), all boards and assignments will be adjusted based upon the preference Trainmen have submitted on their Temporary Board Adjustment Bid Card. 1. Trainmen will be permitted to make changes or insert new assignments to their Temporary Board Adjustment Bid Card between 00:01 Monday to 23:59 Friday during the week preceding Temporary Board Adjustment. The change may be made by phone when unable to be made by computer, such as a Trainman returning from vacation, leave of absence or discipline, etc. C. The abolishment of any assignment will result in the corresponding "bid" being automatically removed from an Trainman s Board Adjustment Card Forms. Reestablishment of any assignment is considered a new assignment, and Board Adjustment Bid Card Forms may be updated in accordance with Paragraph A & B in this Section. D. When notice of an assignment being abolished is effective on other than 00:01 Monday, the Trainman holding the assignment has the following options: 1. If the assignment is abolished in accordance with Article 10 Paragraph C and immediately re-established, the Trainman may remain on the assignment but will need to submit the assignment as a new assignment on his/her Board Adjustment Bid Cards if the symbol of the assignment is changed, or 2. The Trainman will elect to be assigned in accordance with their Board Adjustment Bid Card. 3. As a result of the application of paragraph ii herein, Trainman who are placed to the Guaranteed Extra Board for the remainder of the week will: i) Be afforded a payment of $ if the employee does not perform any other compensated service that day and was available immediately after notification of the abolishment. ii) Have the remaining days for that week on the GEB prorated at $ per day. 52

53 E. The Company will, when possible, abolish and/or establish assignments to be effective at 00:01 on Monday of any given week. Newly established assignments that are bulletined after 23:59 on a Friday will be run extra until: 1. Assignment is made as a result of the bulletin. 2. The following Board Change Day. SECTION 3 Assignment of Trainmen A. At each Board Adjustment Date, Trainmen will be reassigned based upon their tie up time at the home terminal from their last tour of duty, in accordance with their Board Adjustment Card Form. Trainmen newly assigned to the Guaranteed Extra Board will be placed at the bottom of the board in accordance with their previous tie-up time. If two or more Trainmen have the same tie-up, they will be place at the bottom of the board in accordance with their seniority. B. If it is known at least 48 hours prior to a Board Adjustment Date that a Trainman will be off the working board for the entire adjustment period, the Trainman will be unassigned at the Board Adjustment, and the next senior Trainman indicating their preference will be assigned. C. When it is known at least 23:59 on Friday, which is 48 hours prior to a Board Adjustment Date that a Trainman who was previously unassigned will become available within the next period, that Trainman will be reassigned in accordance with Section 2 Paragraph A or B herein. D. Trainmen returning to work subsequent to a Board Adjustment Day will be assigned by the Crew Management Center to the Guaranteed Extra Board. A position on the GEB will be created if none exists. The Trainman assigned to the GEB will receive payment as described Section 2 Paragraph D 3 herein. SECTION 4 General The Parties recognize that the intent of the GEB provisions outlined in Article 11 (A) are to provide employees with 1 day off in one 7-day period and two (2) days consecutive days off in the next 7-day period. As a result, it is further agreed that employees who voluntarily exercise seniority either to or from a GEB position resulting in more than 1 day off in a 7-day period will have their guarantee prorated in accordance with the provisions of Article 11 of the Agreement dated February 25, The Parties agree to review situations where employees attempt to sharp shoot the board contrary to the intent of the Parties. It is also agreed that the application of Section 2 Paragraph B of this agreement is not intended to increase the costs of the GEB guarantee payments. The Parties agree that prior to the implementation of this Side Letter, a joint presentation on the application of the Standing Bid procedures will be made to the General Chairperson and the Local Chairperson in addition to Trainmen at each terminal. Training and demonstrations will be provided for all Trainmen on the Standing Bid System by Company personnel. Until such time as Standing Bid (746) is implemented, the existing practices of advertising and awarding assignments / permanent and temporary vacancies and exercise of seniority will continue on each Seniority District. Please indicate your concurrence to this understanding by signing in the space provided below. 53

54 Yours truly, I concur: M. W. Becker D. E. Hiatt Director Labor Relations General Chairperson 54

55 Side Letter 4 - Supplemental Board February 25, 2004 Canadian National South Ashland Ave, Homewood, IL Mr. D. E. Hiatt General Chairperson Dear Sir: The following confirms our discussion during the just concluded negotiations that resulted in the February 25, 2004 Hourly Rated Agreement in connection with Article 15, Section 5 Supplemental Boards. The Company raised a concern that using a Supplemental Board Trainman on a vacancy could create a continuing cycle forcing the Company to call additional Supplemental Board Trainmen in lieu of straight time Trainmen when a Supplemental Board Trainman is unable to protect his regular assignment. Should this scenario become manifested in practice, the parties agree to meet within thirty (30) days of notice to the Union and review the application of Article 15 Section 5, with the view towards establishing a cut-off time which would allow Supplemental Trainmen to protect their regular assignment. I trust the foregoing reflects our discussions on this matter. Yours truly, I concur: M. W. Becker D. E. Hiatt Director Labor Relations General Chairperson 55

56 Side Letter 7 Protective Conditions February 25, 2004 Canadian National South Ashland Ave, Homewood, IL Mr. D. E. Hiatt General Chairperson Dear Sir, The following confirms our discussions during the just concluded negotiations that resulted in the February 25, 2004 Hourly Rated Agreement. The parties agree that this hourly-rated agreement provides employee protective benefits that are in excess of benefits provided under labor protective conditions previously imposed by the Surface Transportation Board. If either party elects to cancel this hourly-rated agreement, then the labor protective conditions previously imposed by the STB will be applied from the effective date of the cancellation of this hourly-rated agreement until the expiration of the STB imposed labor protective benefits. Any dispute concerning the interpretation or application of the employee protective conditions of this agreement shall be handled in the ordinary manner pursuant to Section 3 of the Railway Labor Act. I trust the foregoing reflects our discussions on this matter. Yours truly, I concur: M. W. Becker D. E. Hiatt Director Labor Relations General Chairperson Side Letter 7 Question: Answer: Will existing NYD conditions, obligations and test period averages (TPA) be honored for the terms of the Agreement, and as outlined in Side Letter 7? The Company s existing obligations under NYD will be honored. OF course, employees are required to fulfill their NYD obligations as well. 56

57 Side Letter 8 Operation Red Block Canadian National South Ashland Ave, Homewood, IL Mr. D. E. Hiatt General Chairperson Dear Sir, The following confirms our discussions during the just concluded negotiations that resulted in the August 17, 2006 Memorandum of Understanding. The Agreements to assist the apparent Rule G violator to retain an employment relationship and seek rehabilitation and the Co-Worker Bypass Agreement commonly referred to as Operation Red Block has been modified and reproduced on the following pages as reference. I trust the foregoing reflects our discussions on this matter. Yours truly, I concur: R. K. MacDougall D. E. Hiatt Senior Director Labor Relations General Chairperson REDBLOCK AGREEMENT (as amended) Between 57

58 CN (Grand Trunk Western Railway) And ITS EMPLOYEES REPRESENTED BY THE UNITED TRANSPORTATION UNION Recognizing that the use of alcohol and/or drugs is a serious problem within the railroad industry, management and the United Transportation Union, in an effort to assist the apparent Rule G violator to retain an employment relationship and seek rehabilitation, jointly consider a change in Rule G policy desirable; and, therefore agree to modify the respective applicable discipline rule or rules to the extend hereinafter provided: 1. An apparent Rule G violation, which does not involve any other apparent rule violation, whether reported by fellow worker or discovered by Carrier officer, will be handled in territories where this Agreement is in effect in the following manner: A. Employee will be immediately removed from service. B. Supervisor should, when practical, make an effort to ensure that the employee will return to his home safely. C. Employee will be notified of Rule G violation charge, in accordance with the applicable Agreement rule. Along with the Notice of Investigation, the employee will be furnished an Option Form, similar to copy attached hereto, on which to indicate selection of one of the following options: (1) Will attend hearing on Rule G violation charge, or (2) Will contact the Carrier s Manager, EAP within five (5) days of the date the Charge Notice is received, and will indicate a willingness to immediately enroll and participate in an approved rehabilitation program, with the understanding that: (a) The hearing on Rule G charge will be held in abeyance, (b) The employee will continue to remain out of service, and, (c) The employee will be carried on the Carrier s records as being off due to Disability unless another status supersedes. 2. Efforts will be made to notify the employee s Local Chairman of the incident, in order to assist the employee in the decision to be made under Paragraph 1-C. 3. An employee who elects Option C- (2) of Paragraph 1 will remain out of service until the Director of Occupational Health or a medical services delegate makes the determination that the employee can safely return to service. Upon resuming duty, the original Rule G violation charge will be dropped. 4. If and when, the employee is permitted to resume duty, a personal conference between the employee, employee s Local Chairman and the Superintendent Transportation, or his designate, will be held before the employee is marked up for service. 5. Should an employee, who has been returned to service under Paragraph 3 of the Agreement, appear to again violate Rule G within a period of ten (10) years from the date authorized to resume duty, a hearing will be held on the Rule G charge under the applicable Agreement rule. 6. Should an employee who has been returned to service under paragraph 3 of the Agreement, not have another Rule G violation within a period of ten (10) years after having resumed duty, but thereafter is charged with violation of Rule G, then the employee will again be subject to the provisions of Paragraph 1-C of this Agreement. 58

59 7. When an incident occurs where an employee apparently was in violation of Rule G, and possibly in violation of another rule or rules, the Carrier, at its sole discretion, may proceed in one of the following ways: A. Treat the matter as a Rule G incident only, and accordingly, the provisions of Paragraph 1-C of this Agreement will then be applicable. B. Charge the employee with a violation of Rule G, as well as any other rule or rules, and hold a hearing under the applicable agreement. C. Provided the employee is offered the opportunity and is willing to elect Option C- (2) of Paragraph 1 with respect to Rule G violation charge, proceed with the hearing on the rule(s) violation involving other than Rule G, and assess discipline, if justified, based on the transcript of the hearing. 8. Should an employee elect Option C (2) of Paragraph 1 and either fail to enroll in an approved rehabilitation program within the prescribed period, or after enrolling, fail to continue participation in the program, the District Superintendent Transportation, upon being notified of such fact by the Carrier s Manager, EAP, will consider the employee as having selected Option C- (1) of Paragraph 1. Under such circumstances, any provision of any applicable agreement rule providing a time limit from the date of the incident in which the hearing must be held, will be considered waived by all involved parties. However, the hearing must be scheduled to be held within ten (10) days from the date charged. 9. A Trainman who marks off Redblock on call, may be subject to a Redblock Drug and/or Alcohol Test prior to his first tour of duty immediately following marking up for duty from the Operation Redblock mark-off. This will be a non-dot test, unless required otherwise by law. 10. For convenience, references to gender, if any, in this Agreement are made in the masculine gender. It is understood and agreed by the parties to this Agreement, that references to the masculine gender include both masculine gender and feminine gender. 11. This Agreement, as amended, will be made effective within (15) days of the day the Carrier is notified by the Organization signatory that the Agreement has been ratified, and will continue in effect until revised or amended by agreement of the parties. The Carrier and UTU General Chairman will review their experiences under this Agreement during the LMRC meetings. It is further understood that this Agreement may be automatically cancelled upon thirty (30) days written notice, either party to the other party. Signed at Troy, Michigan this day of, FOR THE EMPLOYEES: FOR THE CARRIER: D. E. Hiatt R. K. MacDougall 59

60 General Chairman Senior Director-Labor Relations CO-WORKER BY-PASS AGREEMENT OF UNDERSTANDING (as amended) Between CN (Grand Trunk Western Railway) And ITS EMPLOYEES REPRESENTED BY THE UNITED TRANSPORTATION UNION In a joint effort to provide a safe working environment, and as an alternative method of administering Rule G on the GTW Railway: IT IS AGREED: 12. If any member(s) of the United Transportation Union (UTU) believes that another member of the UTU may be in an unsafe condition, such member may immediately contact a Carrier officer. If the Carrier officer, upon investigation, determines there is an apparent violation of Rule G, the member shall be removed from service. A Trainman who is removed from service as a result of co-worker referral or any other Operation RedBlock provision during a tour of duty will be compensated only for the actual time on duty. It is understood that when a removal from service takes place, transportation shall be furnished back to the member s home. If the member does not have the means to return to his or her home terminal, he/she will be furnished a bus ticket. This provision applies only to members removed from service under the conditions of this Agreement. 13. Once a member has been relieved from service under paragraph 1 above, such member must contact the Company s Manager, Employee Assistance Program (Manager EAP) on the respective division within five (5) days of removal from service. 14. If the member does comply with the requirements set forth in paragraph 2 above, and the Manager, EAP determines that the member is not in need of counseling, the member shall be returned to service. There shall be no claim progressed for any time lost as a result of the removal from service, other than as provided in paragraph If the member does comply with the requirement set forth in paragraph 2 above, and the Manager, EAP determines that the member is in need of some type of treatment, and the member accepts treatment, the member shall be returned to service when the Director of Occupational Health or a medical services delegate makes the determination that the employee can safely return to service. There shall be no claim progressed for any time lost as a result of the removal from service. 60

61 16. If the member does not comply with the requirements set forth in paragraph 2, or does not accept treatment as provided in paragraph 4, the Superintendent Transportation, upon being notified of such fact by the Carrier s Manager, EAP, will consider the member as have elected Option C (1) of the RedBlock Agreement, as amended, and an investigation for an alleged violation of Rule G will be held. Under such circumstances, any provision of any applicable agreement providing a time limit from the date of the incident in which an investigation must be held, will be considered waived by all parties involved. However, the investigation must be scheduled to be held within ten (10) days from the date the Superintendent Transportation was notified. 17. This Agreement shall apply one time only to each member covered by this Agreement. Thereafter, all regular rules and agreements shall apply. 18. This Agreement, as amended, is effective and may be automatically terminated by either signatory party upon service of five (5) days written notice upon the other party. FOR THE UNITED TRANSPORTATION TRANSPORTATION UNION: FOR THE GRAND TRUNK WESTERN RAILWAY: D. E. Hiatt R. K. MacDougall General Chairman Senior-Director Labor Relations Side Letter 9 Retain MELA side letter February 25, 2004 Canadian National South Ashland Ave, Homewood, IL Mr. D. E. Hiatt General Chairperson Dear Sir, The following confirms our discussions during the just concluded negotiations that resulted in the February 25, 2004 Hourly Rated Agreement.. During these discussion the Union expressed a desire to retain Side Letter 19 dated February 2, In keeping with that request, the Company is amendable to such continuance and Side Letter 19 dated February 2, 1996 is reproduced below as reference. I trust the foregoing reflects our discussions on this matter. 61

62 Yours truly, I concur: M. W. Becker D. E. Hiatt Director Labor Relations General Chairperson Side Letter #19 February 2, 1996 Mr. S. J. Thompson, General Chairman United Transportation Union 5 North Johnson Pontiac, MI Dear Sir: The Carrier and the Organization recognize that the Federal Employers Liability Act, 45 USC Section 51 et seq, ( FELA ) has no application to employees of the Carrier who might be injured while working outside the U.S. It is the intention of the parties that if an employee represented by the Organization is injured while working outside the U.S. such employee have available a remedy as nearly like that available pursuant to FELA as is possible and which is in lieu of a remedy under any workers compensation law. Both parties, after consultation with counsel, have determined that the Michigan law, Liability of Railroads to Employees, MCLA et seq. ( MELA ) would apply to Carrier employees injured while working outside the U.S. In reliance on that determination, the parties agree as follows: 1. Employees covered. Employees covered by this agreement are those employees of the Carrier represented by the Organization who are injured while working outside the U.S. 2. Governing law. Carrier and Organization acknowledge that FELA is a comparative fault-based statute, making workers compensation laws (which are no-fault statutes) inapposite. For this reason the parties have chosen, to the extent permitted by law, to be governed exclusively by the provisions of MELA. The parties acknowledge that this agreement is intended to provide a remedy for on-the-job injury of railroad employees that is a fair alternative to workers compensation, intended to provide in some respects remedies not available to employees under workers compensation laws but at the same time requiring fault on the part of the employer in order to recover. Therefore the parties further acknowledge that this agreement is not intended to avoid any mandatory coverage of employees under workers compensation laws of any jurisdiction. Nonetheless, if it should be finally determined by a court of competent jurisdiction that MELA is not applicable and a workers compensation statute is applicable to employees covered by this agreement, the parties agree that: a. Carrier will forthwith obtain workers compensation coverage for such employees and compensate any employees whose claims are in process at the time of such determination as if they had been covered by such workers compensation law at the time that their injury claims arose; 62

63 b. If an employee making a claim pursuant to this agreement shall be found not to have a remedy in addition to workers compensation (hereinafter, COMP ), the employee shall have the right to pursue a claim for damages equal to that which would have been available if the employee had been subject to FELA at the time of his/her injury. Such claim may be pursued only through binding arbitration to be conducted in accordance with Section 4 hereof. Any award of damages will be required to be offset by all aspects of the benefits received pursuant to COMP, all as further set out in Section 4 hereof; c. If the Carrier shall not have been the party which sought an adjudication that COMP is the remedy available to employees injured while working outside the U.S., the costs of compliance with the applicable workers compensation laws, including any fines or penalties imposed for failure to have earlier complied with such laws, shall be a set-off for the arbitrator to make in determining damages as set out in Section 4 hereof, in addition to the setoffs set forth therein. If FELA shall be repealed or amended to apply to employees injured outside the U.S., this agreement shall be of no further force and effect and employees with claims pending at such time will be resolved pursuant to this agreement or to FELA or its successor if the repeal or amendments are retroactive to the date of the claimed injury. If FELA or MELA shall be amended, except as provided in the immediately preceding paragraph, the parties shall negotiate a new agreement to continue to provide as nearly as possible a remedy equivalent to FELA, as in effect at such time. PROCEDURES 3. Choice of remedy. If an employee shall make a claim for workers compensation, despite this agreement between the Carrier and the Organization that MELA shall govern, such employee shall be deemed to have chosen a remedy for the injury claimed and MELA shall not be available to such employee. This agreement is not intended to be and shall not be deemed to be a benefit provided in addition to any rights provided under any workers compensation law. 4. Arbitration. If arbitration is sought pursuant to Section 2 hereof in order to supplement the payment of workers compensation received, the arbitration of the claim will be governed by the procedures set out in this section and the arbitrator will make an award of damages as if a claim had been made under FELA, taking into account the setoffs set out in this section. a. The parties shall use their best efforts to agree upon an independent third-party arbitrator within fourteen (14) days after receipt of a demand for arbitration. The arbitrator shall be an individual with experience in the area of personal injury claims and damages therefor. If the parties are unable to agree on the selection of such an arbitrator, either party may proceed in accordance with the rules and procedures of the American Arbitration Association (AAA) then in effect for the purpose of selecting the arbitrator and for the determination of any arbitration procedures which is not in conflict with the provisions of this agreement.. b. Costs of the arbitrator shall be shared equally by the parties, provided however that each party shall pay the costs of its own counsel, witnesses and discovery. c. Discovery in the nature of that allowed by the Federal Rules of Civil Procedure (Rules 26-37) will be afforded each party and any dispute with respect to such discovery shall also be settled by the arbitrator. d. Evidence shall be presented and admitted only in accordance with the Federal Rules of Evidence unless that parties shall have agreed in writing to some other method of presentation and admission. Evidence of recovery or lack of recovery in any other employee injury case shall 63

64 not be admissible for any purpose whatsoever. A written record of all proceedings shall be maintained by a certified court reporter. e. The arbitration shall take place in Pontiac, Michigan. f. The parties may be represented in arbitration by either themselves or counsel. g. Claims shall be limited to those available under FELA and the jurisdiction of the arbitrator to make an award is limited to that extent and in accordance with the Setoffs, listed below. h. The award of the arbitrator shall be enforceable in any court of competent jurisdiction. SETOFFS: The Carrier and the Organization have acknowledged in entering into this Agreement that there are advantages to workers compensation (COMP, hereinafter) laws that are not available under faultbased employee compensation laws such as FELA and MELA. Nonetheless, they chose to provide to workers injured while working outside the U.S. the benefits, insofar as determinable, available under FELA. To endeavor to achieve this goal while complying with the provision of mandated workers compensation benefits, the parties agree that the arbitrator must consider the following issues in making an award: a. Fault v. no-fault. FELA is available only to an employee who is injured through the negligence of the railroad employer. The comparative negligence of the employee decreases an award in proportion to the degree of negligence attributable to the employee. COMP benefits are available to an employee injured on the job without fault of either party. b. Periodicity of payments. COMP payments are regular and begin within a stated time after claim is made; FELA payments are not required until the claim is settled or adjudicated. c. Any other benefits provided under COMP, such as retraining, rehabilitation are not mandated by FELA. d. FELA mandates that an employee mitigate his/her damages. e. Railroad Retirement liens for any sickness and accident or disability benefits must be recaptured from any award. f. The arbitrator must set off against any award to the employee the following items in the amounts set out in the arbitration: 1) advancements made by the Carrier, 2) medical payments made by the Carrier, Travelers insurance or other health care providers for medical services, supplies and/or treatment, 3) any and all payments made or to be made pursuant to COMP, 4) payments made to the employee by any other person or entity which may have caused or contributed to the injury. Any of the Procedures and Setoffs may be modified by mutual agreements of the parties to the dispute on a case by case basis. If arbitration should be demanded pursuant to this Agreement, the demanding party may take to Section 3 arbitration of the RLA the refusal of the other party to arbitrate pursuant to this Agreement. 64

65 5. Time in which to make a claim. An employee seeking damages for a personal injury sustained while working outside the U.S. must file the claim (in arbitration or the court as applicable) in writing within three years of the date of the injury giving rise to the claim. No court, arbitration panel or other body shall have jurisdiction to hear a claim or make an award on a claim made out of time. If the statute of limitations for filing a claim for personal injury shall be amended under Michigan law, and MELA shall be applicable at that time, then the provisions of this section shall be amended to parallel such amendment. Please indicate your agreement by signing your name in the space provided below. Yours very truly, J. P. Vast-Binder Director Human Resources I concur: S. J. Thompson - General Chairman, U.T.U. Approved: B. R. Wigent - Vice President, U.T.U. Date: 65

66 Side Letter 11 Remote Control February 25, 2004 Canadian National South Ashland Ave, Homewood, IL Mr. D. E. Hiatt General Chairperson Dear Sir, The following confirms our discussion during the just concluded negotiations that resulted in the February 25, 2004 Hourly Rated Agreement regarding potential future introduction of remote control technology by the Company. During our discussions the parties agreed that when remote technology is introduced such technology will be operated exclusively by Trainman with the exception that non - traditional terminal operations that operate in excess of either restricted speed or 15 miles beyond existing conventional terminal limits will be performed by an Engineer operating on-board or off-board the locomotive regardless of how the locomotive is controlled, one example is GPS. The Union acknowledges that the Company may operate remote technology in the performance of non-traditional train operations, such as by the Car/Equipment Department personnel within the confines of the car and equipment repair facilities. The Labor Management Committee will meet prior to the implementation of Remote Technology to review the training program, the selection of the Trainers, scheduling of training and to address issues that may arise with implementation of remote control assignments, and the following will apply: 1. Training will be done by trainers qualified, consistent with an FRA Approved training program. 2. Trainmen attending instructional classes will be compensated in accordance with Article 13 of the Agreement dated February 25, Should a Trainman be required to attend training at a point other than his home terminal point expenses outlined in Article 17, Section 2 will be available and a meal expense of $20.00 a day in addition to lodging will be provided. 4. Bulletins will be issued pursuant to Article 8 of the Agreement dated February 25, 2004 advertising applications to be taken for the position of Remote Control Operator (RCO). In the event no applicants are received for the bulletin, the provisions of Article 8, Section 2 A of the Agreement dated February 25, 2004, will apply. 66

67 5. Trainmen operating an RCO assignment will be paid the rates outlined in Article 5 of the Agreement dated February 25, Qualified RCO employees will not be permitted to displace from an RCO assignment, when there are no other qualified RCO employees available to protect the assignment or unless the RCO assignment is abolished and the employee is unable to secure another RCO position. 7. RCO employees will be responsible for all Trainman duties assigned in addition to the operation of the Remote Control Locomotive (RCL). 8. Vacancies on an RCO assignment will be filled from the GEB. Failing to have available qualified employee on the GEB, the senior rested available qualified RCO employee will be called. At locations where Remote Technology is implemented all employees at such locations will be availed training and qualified in the operation of such technology as necessitated by operational requirements. Yours truly, I concur: M. W. Becker D. E. Hiatt Director Labor Relations General Chairperson Side Letter 13 Forced Promotion 67

68 February 25, 2004 Canadian National South Ashland Ave, Homewood, IL Mr. D. E. Hiatt General Chairperson Dear Sir, The following confirms our discussion during the just concluded negotiations that resulted in the February 25, 2004 Hourly Rated Agreement regarding Forced Promotion to Apprentice Engineer and Locomotive Engineer Service provisions outlined in Article 7, Section 11. In this regard it was understood that in the event the Company fails to receive applications for promotion to engine service, Trainmen who have established seniority subsequent to April 01, 2001 will be required to accept transfer to engine service. During negotiations you expressed a concern that employees with a post April 1, 2001 seniority date would not be afforded similar protective benefits as pre April 1, 2001 employees and would be required to protect across the CN/GTW system as an engineer. This will confirm that if the number of applicants for engine service on the seniority district is insufficient to meet the Company s needs, such needs shall be met by requiring Trainmen who established seniority subsequent to April 01, 2001 to transfer to engine service in inverse seniority order on that District. It should also be noted that the current agreement provisions require such employees to protect across the entire CN/GTW. This proposed agreement provides the opposite, in that such employees will only be required to protect promotion to engine service on their seniority district. I trust the foregoing reflects our discussions on this matter. Yours truly, I concur: M. W. Becker D. E. Hiatt Director Labor Relations General Chairperson 68

69 Side Letter 14 Hours of Service South Ashland Avenue Homewood, Illinois August 17, 2006 Mr. David Hiatt General Chairman - UTU Dear Mr. Hiatt, The following confirms our discussion during the just concluded negotiations that resulted in the August 17, 2006 Agreement. The parties have agreed to a mandatory requirement to renegotiate the compensation terms of the agreement if the hours of service regulations change as a result of any Governmental entity enacting or changing rest/fatigue rules and/or statutes governing the hours of service in the railroad industry during the time this agreement is in effect. The parties have agreed that in the event the Company is mandated to reduce an trainman s hours of service to less than the ten (10) hour basic day, or less than the six (6) days per week or any combination thereof, outlined in Article 5 and Article 8 of the Agreement, the parties will meet within five (5) days of notification of such change. Negotiations shall not exceed three (3) days, unless otherwise mutually agreed and the parties will negotiate with a view toward a reduction in the hourly rate of pay in effect. It is understood that in no case shall the hourly rate reduction be more than the proportional decrease in hours worked. If an agreement on the hourly rate cannot be reached within the time stipulated above, or if the parties disagree on the appropriate amount of the hourly rate, the parties agree to submit the matter for expedited, final and binding arbitration. Immediately following the failure to reach an agreement within the stipulated time frame, either party may initiate proceedings by serving written notice of intent on the other party to progress the issue to arbitration. Within (3) three days of the notification to proceed to Arbitration, if unable to agree to a Neutral, the parties will select a Neutral by alternate strike from a fifteen (15) name strike list requested/provided from the National Mediation Board (NMB). Pending the availability of the Neutral, a hearing on the dispute will take place within thirty (30) days of the Neutral's selection. Whomever initiates action will bear the cost of Neutral Party. The Neutral will render a decision in the matter within fifteen (15) days of the conclusion of the hearing unless otherwise agreed, and the decision will be binding on the parties and subject to enforcement as an Award of the National Railroad Adjustment Board. I trust the foregoing reflects our discussions on this matter. Yours truly, I concur: R. K. MacDougall D. E. Hiatt Senior Director Labor Relations General Chairman Side Letter 15 Harris Cola 69

70 South Ashland Avenue Homewood, Illinois August 17, 2006 Mr. David Hiatt General Chairman - UTU 409 Capital Ave. N.E. Battle Creek, MI Dear Mr. Hiatt, The following confirms our discussion during the just concluded negotiations that resulted in the August 17, 2006 Agreement regarding the revision of a Cost of Living Allowance. In this regard the parties agreed that the following criteria, commonly called a "Harris COLA," would be used in the event the parties are unable to reach an Agreement pursuant to the provisions outlined in Article 37 of this Agreement prior to January 1, 2011: The cost of living allowance will be computed by the formula known more commonly as the Harris COLA. I trust the foregoing reflects our discussions on this matter. Yours truly, I concur: R. K. MacDougall D. E. Hiatt Senior Director Labor Relations General Chairman Side Letter 16 Passport Reimbursement South Ashland Avenue Homewood, Illinois

71 August 17, 2006 Mr. David Hiatt General Chairman - UTU 409 Capital Ave. N.E. Battle Creek, MI Dear Mr. Hiatt, The following confirms our discussion during the just concluded negotiations that resulted in the August 17, 2006 Agreement During our discussion the parties discussed the impact of the Intelligence Reform and Terrorism Prevention Act of 2004, which currently requires that by January 1, 2008, all land travelers will need a valid passport to enter and re-enter the United States. A similar legal requirement also applies to entry/re-entry into Canada. In an effort to minimize this impact, the Company has agreed to reimburse any train service employee with an established seniority date prior to August 1, 2006, for the initial cost of the passport. This reimbursement is contingent on all of the following: 1. It being obtained within 12 months immediately preceding the legal requirement. 2. It being a requirement of service. 3. It being a first-time passport and not a renewal. 4. Proper documentation being submitted for reimbursement. It is understood that having a valid passport will be a condition of service for any train service employee hired on or after August 1, I trust this accurately reflects our understanding of this matter. Yours truly, I concur: R. K. MacDougall D. E. Hiatt Senior Director Labor Relations General Chairman 71

72 Side Letter 17 Approval South Ashland Ave, Homewood, IL August 17, 2006 Mr. D. E. Hiatt General Chairperson Dear Sir: The following confirms our discussion during the just concluded negotiations that resulted in the August 17, 2006 Memorandum of Agreement. The Union agrees to advise the Company no later than October 25, 2006, of the outcome of the ratification process. I trust the foregoing reflects our discussions on this matter. Yours truly, I concur: R. K. MacDougall D. E. Hiatt Senior Director Labor Relations General Chairperson 72

73 Review and Approval South Ashland Ave, Homewood, IL August 17, 2006 Mr. D. E. Hiatt General Chairperson Dear Sir, The following confirms our discussion during the just concluded negotiations that resulted in the August 17, 2006 Memorandum of Agreement. The parties recognize that this Agreement is subject to final review and approval by the Executive or Officers of each respective party. I trust the foregoing reflects our discussions on this matter. Yours truly, I concur: R. K. MacDougall D. E. Hiatt Senior Director Labor Relations General Chairperson 73

74 SIDE LETTER 18 Bi-weekly Pay Labor Relations Department S. Ashland Avenue Homewood, Illinois August 17, 2006 Mr. D. E. Hiatt General Chairman United Transportation Union Dear Mr. Hiatt: This will confirm our understanding, reached during negotiations leading to the Agreement of this date, regarding the possible transition from other than a weekly pay system to a bi-weekly pay system, in arrears. We agreed that, in an effort to ease the transition to a bi-weekly pay system, in arrears, active Trainmen whose compensation will be transferring to the bi-weekly pay system will have the option of receiving $1,500, not subject to applicable withholding taxes on the last scheduled pay date under their current procedures. The $1,500 will be considered an advance and will be recovered at the rate of $125 per pay period, beginning with the first scheduled regular bi-weekly pay date. An employee who leaves the service of the Company will have any remainder deducted from their last paycheck. It is further agreed that any employee may elect not to receive the $1,500 advance payment. Yours truly, R. K. MacDougall Senior Director Labor Relations I concur: D. E. Hiatt, General Chairman ATTACHMENT A SUMMARY PLAN SHORT TERM DISABILITY 74