Memorandum of Agreement
This Memorandum of Agreement, as set forth below, made this 15th day of July,
2006, by and between Montana Rail Link, Inc., (the “Company”) and its employees
represented by the
Brotherhood of Locomotive Engineers and Trainmen Division of the International
Brotherhood of Teamsters (the “Union” or “BLET”), amends the September 12, 1987
Labor Agreement between the Company and the Union (the “Labor Agreement”), as
subsequently amended by Agreements dated January 2, 1991, November 1, 1996 and
September 19,2001. This Memorandum of Agreement is in full settlement of the
Union’s Section 6 Notice dated October 3,2005, and identified as BLET ATTACHMENT
A, and the parties’ desire to revise existing agreement provisions concerning
rates of pay, rules and working conditions. The parties agree to revise the
Labor Agreement as follows:
ARTICLE I
GENERAL WAGE INCREASES
The basic hourly and daily rates of pay in effect for positions subject to the
Labor Agreement as set forth in Section I, Article 4, Compensation - Rates of
Pay, paragraph (C), shall
be increased as follows:
(A) Effective April 1 2006, such rates of pay in
effect on March 3 1,2006 shall be increased by four (4) percent.
(B) Effective April 1,2007, such rates of pay in effect on March 3 1 2007 shall
be increased by three (3) percent.
(C) Effective April 1,2008, such rates of pay in effect on March 3 1,2008 shall
be increased by three (3) percent.
(D) Effective April 1,2009, such rates of pay in effect on March 3 1,2009 shall
be increased by three (3) percent.
(E) Effective April 1,2010, such rates of pay in effect on March 3 1,2010 shall
be increased by three (3) percent.
(F) In determining new daily or hourly rates of pay, fractions of a cent shall
be disposed of by rounding to the closest full cent (&, .5 cent or above will be
rounded to the next higher cent).
ARTICLE II
RATIFICAT1ON PAYMENT
If member ratification of this Agreement takes place on or before July
15,2006, the Company will pay a one thousand dollar ($1,000.00) ratification
payment to each eligible employee. The payment will be made no later than thrty
(30) days after the effective date of this Agreement. In order to be eligible
for the ratification payment, an employee must have an employment relationship
(k, active, furloughed or flex time) with the Company as of the effective date
of this Agreement, and must maintain that relationship on the date on which the
ratification payment is paid. Employees on approved leave of absence on the date
on which the ratification payment is paid will also be eligible for the
ratification payment, provided such
employees return to service under the Labor Agreement no later than December 3
1,2006. Payment will be made to such employees within thirty (30) calendar days
of their return to
service.
ARTICLE III
FILLING TEMPORARY VACANCIES
Section II, Article 3, Paragraph (J), the last paragraph of which shall be
revised and replaced as follows:
Any travel time payment that may accrue (pursuant to Section 11, Article 30,
hereof) under t h s Agreement will be paid to any employee going to and to the
last employee returning from the job. In addition, an employee returning from an
outlying point to observe a previously scheduled and approved RDO shall be
entitled to the travel time payment.
ARTICLE IV
FLEXIBLE TIME SYSTEM
Section II, Article 7 - Flexible Time System of the Labor Agreement is revised in its application as follows:
A. Paragraph A of Article 7 shall be revised and replaced
as follows:
The terms of this Agreement are intended to be in lieu of vacation, holiday,
sick leave, supplemental sickness and personal leave arrangements.
B. Paragraph B of Article 7 shall be revised and replaced as
follows:
(1) In order to fully qualify for flexible time system purposes, employees who
were hired before July 15,2006 must have total gross earnings of $13,600 or 160
working days during the preceding qualifying year (November 1 to October 3 1).
Such employees with total earnings of $10,200 or 120 working days shall receive
one-half of the applicable time system days. Effective October 3 1,2006, and
each year thereafter, these dollar threshold amounts shall be increased by the
annual percentage general wage increase(s) granted during the previous 12-month
period. For full flex time qualification, the dollar thresholds shall be as
follows:
October 31,2006 $14,144
October 31, 2007 $14,568
October 31, 2008 $15,005
October 31,2009 $15,455
October 31,2010 $15,918
For half flex time qualification, the dollar thresholds shall be as follows:
October 31, 2006 $10,608
October 31,2007 $10,926
October 31, 2008 $11,254
October 31, 2009 $11,592
October 31,2010 $11,940
(2) In order to fully qualify for flexible time system purposes, employees who were hired on or after July 15,2006 must have total gross earnings of $17,369 or 130 working days during the preceding qualifying year (November 1 to October 3 1). Such employees with total earnings of $7,349 or 55 or more working days shall receive a pro-rated share of the applicable time system days. (Days worked divided by 130 times the applicable number of flex time days rounded to the closest full day.) Effective October 31,2006, and each year thereafter, these dollar threshold amounts shall be increased by the annual percentage general wage increase(s) granted during the previous 12-month period. For full flex time qualification, the dollar thresholds shall be as follows:
October 3 1,2006 $18,064
October 31,2007 $18,606
October 31,2008 $19,164
October 31,2009 $19,739
October 31,2010 $20,331
For pro-rata flex time qualification, the dollar thresholds shall be as follows:
October 31,2006 $7,643
October 3 1,2007 $7,872
October 31,2008 $ 8,108
October 31, 2009 $ 8,351
October 31,2010 $ 8,602
(3) Any compensation received from the Company will count toward the total earnings. This qualification requirement applies both to the credits that can be taken in the next succeeding year and to the count of years necessary for incremental credits.
ARTICLE V
PAYMENT ON HOLIDAYS
Section II, Article 19 - Payment on Holidays is mended to add Good Friday to the list of holidays on which employees shall receive pay at time and one-half rates when required to work.
ARTICLE VI
TRAVEL TIME
Section II, Article 30 - Travel Time, paragraph (A), sub-paragraphs (4) and
(5) are revised and replaced as follows:
Employees who have been deadheaded once in pool service in one half at the four
hour rate will not be required to deadhead at the four hour rate as long as
other employees are available in pool service who have not deadheaded once in
pool service in the half at the four hour rate. In such circumstances, employees
may be deadheaded out of turn at any time from the away-from-home terminal
without penalty.
After an employee has deadheaded once in pool service in one half at the four
hour rate, all subsequent deadheads will be paid at the full eight hour rate.
Note: The right of either party to cancel Side Letter No. 2 to the
November 1, 1990 Agreement, found at page - in the Labor Agreement, is revoked.
ARTICLE VII
BEREAVEMENT LEAVE
A new Article 32 shall be added to Section I1 of the Agreement and shall
provide as follows:
Bereavement Leave: In the event of the death of an employee’s spouse,
child, step-child, parent, brother or sister, such employee will be allowed paid
leave for up to three (3) consecutive workdays to attend the funeral and/or
handle personal matters in connection therewith. Employees so excused shall
receive a basic day’s pay at the rate of service last
performed for each day of work missed.
ARTICLE VIII
NEW EMPLOYEES
Section 111, Article 14 - New Employees, paragraph (A) shall be revised and
replaced as follows:
A. Subject to the following provisions, newly hired or re-hired employees
establishing a seniority date after the effective date of this Agreement shall
be paid as follows:
Note: Employees in the current (February 2006) new hire training class, who successfully complete their training, shall be paid at full rates upon the completion of their Probationary Period under Section 111, Article 15.
ARTICLE IX
401(K) SAVINGS PLAN
Section IV, Article 4 - 401(K) Savings Plan shall be mended to provide that
the Employer Contribution shall be increased to a fifty (50%) percent match on
the first eight (8%)
percent of pay contributed by the employee. It is understood that this amendment
will take effect as soon as the required Plan changes can be formally put into
place.
ARTICLE X
MEDICAL AND SHORT-TERM DISABILITY PLAN BENEFITS
Section IV, Exhibit A to the Labor Agreement - Medical, Dental, Life, AD&D
and Disability Insurance Plan shall be revised as follows:
A. Medical Benefits shall be revised by the addition of
a bi-annual Physical Exam Benefit for employees. Every two (2) years the Company
will pay up to $500 toward the costs of a physical exam for each employee forty
(40) years of age or older. Such payment will be made upon the submission of
proper documentation and shall be made without regard to the employee’s annual
deductible or co-insurance responsibilities.
B. Short-Term Disability Plan shall be revised to reduce the waiting period for short-term disability benefits from thirty (30) to twenty-one (21) days. In addition, for a two-year trial period beginning July 15,2006, the waiting period shall be reduced to seven (7) days. On July 15,2008, the Company will have a one-time opportunity to return the waiting period to twenty- one (21) days if the Company’s short-term disability costs have become excessive. If the Company does not revert to the twenty-one (21) day waiting period, the waiting period shall remain fixed at seven (7) days. The Company will advise and meet with the Union not less than thirty (30) days in advance of any change in the waiting period to twenty-one (21) days, but the approval of the Union will not be required to do so.
The employee must submit medical certification of his disability in order to be eligible to receive Short-Term Disability benefits. It is understood that the Short-Term Disability Plan is a supplemental plan, meaning that Railroad Retirement sickness benefits that the employee is receiving or eligible to receive will be offset against the Short-Term Disability benefit.
ARTICLE XI
TERM AND EFFECT OF AGREEMENT
(A) This Agreement shall be effective July 15,2006, except as otherwise noted herein, and shall remain in effect until or unless changed under the provisions of the Railway Labor Act, as amended. Except as modified herein, all previous agreements remain in full force and effect.
(B) The parties signatory hereto shall not serve nor
progress prior to October 1 , 2010 (not to become effective before April 1,
2011) any notice or proposal for the purpose of changing any provision contained
herein, or which deals with matters presented by the parties during
negotiations, and any proposals in pending notices relating to such subject
matters are hereby withdrawn.
(C) This article will not bar the Company and the Union
from agreeing upon any subject of mutual interest.
SIGNED AT MISSOULA, MONTANA, THIS 15th DAY OF JULY, 2006.
| /s/ Dennis R.. Pierce General Chairman FOR THE BROTHERHOOD OF LOCOMOTIVE ENGINEERS AND TRAINMEN |
/s/ Michael R. Lemm Vice President of Operations FOR MONTANA RAIL LINK, INC. |
| /s/ Stephen D. Spiegle Vice President |
Side Letter No. 1
July 15,2006
Dennis R. Pierce
General Chairman, BLET
Suite 1010
801 Cherry Street
Fort Worth, TX 76102
Dear Mr. Pierce:
This has reference to our Agreement of July 15,2006, between Montana Rail Link,
Inc. (“MRL”) and the Brotherhood of Locomotive Engineers and Trainmen (“BLET”).
It was understood and agreed that payment of retroactive wages resulting from
the application of Article I - General Wage Increases, paragraph (A) shall be
made within sixty (60)
days of the effective date of our July 15,2006 Agreement.
Payment of retroactive wages will be made to all employees who had an employment
relationship during the relevant time period under the existing Labor Agreement
between the
Company and BLET who have not resigned or otherwise terminated their employment
prior to the effective date of our July 15,2006 Agreement.
Please indicate your concurrence with this understanding by signing your name in
the space provided below.
| I concur: /s/ D. R. Pierce General Chairman BLET |
Sincerely, /s/ M. R. Lemm Vice President of Operations Montana Rail Link, Inc. |
Side Letter No. 2
July 15,2006
Dennis R. Pierce
General Chairman, BLET
Suite 1010
801 Cherry Street
Fort Worth, TX 76102
Dear Mr. Pierce:
This has reference to our Agreement of July 15,2006, between Montana Rail Link,
Inc. (“MRL”) and the Brotherhood of Locomotive Engineers and Trainmen (“BLET”).
It was understood that the Carrier is in the process of modifying the form on
which employees are to report their personal injuries. BLET has requested
certain changes to the current form and the Carrier has agreed to accommodate
those requests. The new form will not contain any requirement for the employee
to disclose his social security number, nor will it
contain an authorization for the employee to release his medical records to the
Carrier. In addition the “defect” box will be amended to include an option for
the employee to mark
“unknown” as to the cause of the incident. Last, the form will be revised to
reflect that any needed immediate medical attention must be given before the
employee is required to submit the personal injury report.
Furthermore, the Carrier agreed that it will not subsequently make any changes
to the form that have the effect of negating the changes agreed to in the above
paragraph.
Please indicate your concurrence with this understanding by signing your name in
the space provided below.
| I concur: /s/ D. R. Pierce General Chairman BLET |
Sincerely, /s/ M. R. Lemm Vice President of Operations Montana Rail Link, Inc. |
Side Letter No. 3
July 15,2006
Dennis R. Pierce
General Chairman, BLET
Suite 1010
801 Cherry Street
Fort Worth, TX 761 02
Dear Mr. Pierce:
This has reference to our Agreement of July 15,2006, between Montana Rail Link,
Inc. (“MRL”) and the Brotherhood of Locomotive Engineers and Trainmen (“BLET”).
It is understood and agreed that in the application of Article XI - Medical and
Short-Term Disability Plan Benefits the change to a seven-day waiting period for
receipt of Short-Term
Disability (“STD”) benefits shall apply to all employees not then eligible for
STD when the change takes effect. However, there shall be no retroactive
application of this change to
employees who are already receiving or eligible for STD benefits, or who are
already within their thirty-day waiting period. Furthermore, in the event the
waiting period is returned to
twenty-one days, that change shall only apply to employees who have not yet
started their waiting period when the change takes effect. At that time,
employees who have started their
waiting period prior to the change to twenty-one days taking effect shall
continue to be governed by the seven-day waiting period for the purposes of
qualifying for STD benefits.
Please indicate your concurrence with t h s understanding by signing your name
in the space provided below.
| I concur: /s/ D. R. Pierce General Chairman BLET |
Sincerely, /s/ M. R. Lemm Vice President of Operations Montana Rail Link, Inc. |
Side Letter No. 4
July 15,2006
Dennis R. Pierce
General Chairman, BLET
Suite 1010
801 Cherry Street
Fort Worth, TX 76102
Dear Mr. Pierce:
This has reference to our Agreement of July 15,2006, between Montana Rail Link,
Inc. (“MRL”) and the Brotherhood of Locomotive Engineers and Trainmen (“BLET”).
During our negotiations we agreed to the following language relative to
Eligibility for the Health and Welfare Benefits provided in the Labor Agreement
effective September 12, 1987, as
subsequently amended.
In order for an Employee to be eligible for coverage under the Plan during any
calendar month they must have rendered service on, received flex pay for, or
qualify as outlined below on
an aggregate of at least seven (7) calendar days during the preceding month.
The following will count, as though performing service, when qualifying for
benefits:
A day protecting an extra or hog board.
A day protecting a pool assignment. (Helper Pool, Long Pool, Short Pool)
A bona fide day of illness, including off duty injury (the employee may furnish medical documentation as proof) while an active employee (not on long term disability).
A day of short term disability.
In addition Employees, who make their co-payments, will qualify under the following circumstances without meeting the seven (7) calendar day requirement.
An employee on suspension.
An employee returning from dismissal.
An Employee called and reporting for service for any period of time in the preceding month.
An active Employee who is an elected official of the Union’s General Committee or Local division, including legislative representatives, while engaged in Union business.
This Side Letter will not affect the provisions of Section IV,
Article 5, paragraph D or Exhibit A of the Labor Agreement between Montana Rail
Link and its Employees represented by
the BLET. The Agreement provisions shall take precedent in the event of a
conflict between this Side Letter and those provisions.
Please indicate your concurrence with this understanding by signing your name in
the space provided below.
| I concur: /s/ D. R. Pierce General Chairman BLET |
Sincerely, /s/ M. R. Lemm Vice President of Operations Montana Rail Link, Inc. |
Side Letter No. 5
July 15,2006
Dennis R. Pierce
General Chairman, BLET
Suite 1010
801 Cherry Street
Fort Worth, TX 76102
Dear Mr. Pierce:
This has reference to our Agreement of July 15, 2006, between Montana Rail Link,
Inc. (“MRL”) and the Brotherhood of Locomotive Engineers and Trainmen (“BLET”).
It is understood and agreed that Option 2 of the Helper Guarantee found at page
84 in the Labor Agreement dated September 19, 2001 shall be amended to reflect a
day-for-day offset
based on the number of days in the month as follows:
28-day month - guarantee of 24 pay slips and 4 rest days;
29-day month - guarantee of 25 pay slips and 4 rest days;
30-day month - guarantee of 26 pay slips and 4 rest days;
31-day month - guarantee of 27 pay slips and 4 rest days;
Please indicate your concurrence with this understanding by signing your name in the space provided below.
| I concur: /s/ D. R. Pierce General Chairman BLET |
Sincerely, /s/ M. R. Lemm Vice President of Operations Montana Rail Link, Inc. |
Side Letter No. 6
July 15,2006
Dennis R. Pierce
General Chairman, BLET
Suite 1010
801 Cherry Street
Fort Worth, TX 76102
Dear Mr. Pierce:
This has reference to our Agreement of July 15,2006, between Montana Rail Link,
Inc. (“MRL”) and the Brotherhood of Locomotive Engineers and Trainmen (“BLET”).
It is understood and agreed that the provision of paragraph 2 of the January 14,
2004 Side Letter giving rest to the “turn itself’ shall also apply to helper
service for their applicable rest
periods.
Please indicate your concurrence with this understanding by signing your name in
the space provided below.
| I concur: /s/ D. R. Pierce General Chairman BLET |
Sincerely, /s/ M. R. Lemm Vice President of Operations Montana Rail Link, Inc. |
Side Letter No. 7
July 15,2006
Dennis R. Pierce
General Chairman, BLET
Suite 1010
801 Cherry Street
Fort Worth, TX 76102
Dear Mr. Pierce:
This has reference to our Agreement of July 15, 2006, between Montana Rail Link,
Inc. (“MRL”) and the Brotherhood of Locomotive Engineers and Trainmen (“BLET”).
It was understood and agreed that any compensation increases provided to the
American Train Dispatchers Association (“ATDA”) in their upcoming round of
contract negotiations in
2006 that exceed those provided to employees represented by BLET and that are
not associated with productivity gains obtained by ATDA will be granted to BLET.
Please indicate your concurrence with this understanding by signing your name in
the space provided below.
| I concur: /s/ D. R. Pierce General Chairman BLET |
Sincerely, /s/ M. R. Lemm Vice President of Operations Montana Rail Link, Inc. |