AGREEMENT



IT IS HEREBY AGREED this day of 1996:



ARTICLE I - WAGES



Section 1 - First General Wage Increase



(a) Effective upon ratification of this Agreement by the organization signatory hereto or on December 1, 1995, whichever is earlier, all standard basic daily rates of pay of employees represented by the Brotherhood of Locomotive Engineers in effect on the preceding day shall be increased by three-and-one-half (3-1/2) percent.



(b) In computing the increase under paragraph (a) above, three-and--one-half (3-1/2) percent shall be applied to the standard basic daily rates of pay applicable in the following weight-on drivers brackets, and the amounts so produced shall be added to each standard basic daily rate of pay:



Passenger - 600,000 and less than 650,000 pounds

Freight - 950,000 and less than 1,000,000 pounds

(through freight rates)

Yard Engineers - Less than 500,000 pounds

Yard Firemen - Less than 500,000 pounds

(separate computation covering five-day rates and other than five-day rates)



Section 2 - Signing Bonus



Upon ratification of this Agreement, each employee will be paid a signing bonus of one (1) percent of the employee's compensation for 1994, including pay for miles run in excess of the number of miles comprising a basic day ("overmiles") but excluding pay elements not subject to general wage increases under Section 8 of this Article and lump sums.



Section 3 - First Lump Sum Payment



On July 1, 1996, each employee will be paid a lump sum equal to the excess of i) three (3) percent of the employee's compensation for 1995, including pay for overmiles but excluding pay elements not subject to general wage increases under Section 8 of this Article and lump sums, over (ii) the lesser of (x) one-half of the amount described in clause i) above and (y) two times one-quarter of the amount, if any, by which the carriers' payment rate for 1996 for foreign-to-occupation health benefits under The Railroad Employees National Health and Welfare Plan (Plan) exceeds such payment rate for 1995.

Section 4 - Second General Wage Increase



Effective July 1, 1997, all standard basic daily rates of pay in effect on June 30, 1997 for employees represented by the Brotherhood of Locomotive Engineers shall be increased by three and-one-half (3-1/2) percent, computed and applied in the same manner prescribed in Section 1 above.



Section 5 - Second Lump Sum Payment

On July 1, 1998, each employee will be paid a lump sum equal to the excess of (i) three-and-one-half (3-1/2) percent of the employee's compensation for 1997, including pay for overmiles but excluding pay elements not subject to general wage increases under Section 8 of this Article and lump sums, over (ii) the lesser of (x) one-half of the amount described in clause W above and (y) one-and-one-half times one-quarter of the amount, if any, by which the carriers' payment rate for 1998 for foreign-to-occupation health benefits under the Plan exceeds such payment rate for 1995.



Section 6 - Third General Wage Increase

Effective July 1, 1999, all standard basic daily rates of pay in effect on June 30, 1999 for employees represented by the Brotherhood of Locomotive Engineers shall. be increased by three and-one-half (3-1/2) percent, computed and applied in the same manner prescribed in Section 1 above.




Section 7 - Standard Rates

The standard basic daily rates of pay produced by application of the increases provided for in this Article are set forth in Appendix 1, which is a part of this Agreement.




Section 8 - Application of Wage Increases

(a) The adjustments provided for in this Article (i) will apply to mileage rates of pay for overmiles, and (ii) will not apply to duplicate time payments, including arbitraries and special allowances that are expressed in time, miles or fixed amounts of money.





(b) Miscellaneous rates based upon hourly or daily rates of pay, as provided in the schedules or wage agreements, shall be adjusted under this Agreement in the same mariner as heretofore increased under previous wage agreements.




(c) In determining new hourly rates, fractions of a cent will be disposed of by applying the next higher quarter of a cent.



(d) Daily earnings minima shall be changed by the amount of the respective daily adjustments.





(e) Existing money differentials above existing standard daily rates shall be maintained.





(f) In local freight service, the same differential in excess of through freight rates shall be maintained.





(g) Where applicable, the differential of $4.00 and/or $6.00 per basic day in freight, passenger and yard service, and 4¢ and/or 6¢ per mile for miles in excess of the number of miles encompassed in the basic day in freight and passenger service, will be maintained for engineers working without firemen on locomotives on which under the former National Diesel Agreement of 1950 firemen would have been required. Such differential will continue to be applied in the same manner as the local freight differential.





(h) In computing the first increase in rates of pay effective under Section 1 for firemen employed in local freight service, or on road switchers, roustabout runs, mine runs, or in other miscellaneous service, on runs of miles equal to or less than the number comprising a basic day, which are therefore paid on a daily basis without a mileage component, whose rates had been increased by "an additional $.4011 effective July 1, 1966, the three-and-one-half (3-1/2) percent increase shall be applied to daily rates in effect on the day preceding the effective date of the general wage increase provided for in Section 1, exclusive of local freight differentials and any other money differential above existing standard daily rates. For firemen, the rates applicable in the weight-on-drivers bracket 950,000 and less than 1,000,000 pounds shall be utilized in computing the amount of increase. The same procedure shall be followed in computing the increases effective July 1, 1997 and July 1, 1999. The rates produced by application of the standard local freight differentials and the above-referred to special increase of "an additional $.4011 to standard basic through freight rates of pay are set forth in Appendix 1 which is a part of this Agreement.




(i) other than standard rates:



(i)  Existing basic daily rates of pay other than standard shall be changed, effective as of the dates specified in Sections 1, 4, and 6 hereof, by the same respective percentages as set forth therein, computed and applied in the same manner as the standard rates were determined.




(ii) Where applicable, the differential of $4.00 and/or $6.00 per basic day in freight, passenger and yard service, and 4¢ and/or 6¢ per mile for miles in excess of the number encompassed in the basic day in freight and passenger service, will be maintained for engineers working without firemen on locomotives on which under the former National Diesel Agreement of 1950 firemen would have been required. Such differential will continue to be applied in the same manner as the local freight differential.



(iii) Daily rates of pay, other than standard, of firemen employed in local freight service, or on road switchers, roustabout runs, mine runs, or in other miscellaneous service, on runs of miles equal to or less than the number encompassed in the basic day, which are therefore paid on a daily basis without a mileage component, shall be increased as of the effective dates specified in Sections 1, 4, and 6 hereof, by the same respective percentages as set forth therein, computed and applied in the same manner as provided in paragraph (i)(i) above.




Section 9 - Definition of Carriers" Payment Rate



The carrier's payment rate for any year for foreign-to occupation health benefits under the Plan shall mean twelve times the payment made by the carriers to the Plan per month (in such year) per employee who is fully covered for employee health benefits under the Plan. Carrier payments to the Plan for these purposes shall not include the amounts per such employee per month (in such year) taken from the Special Account, or from any other special account, fund or trust maintained in connection with the Plan, to pay or provide for current Plan benefits, or any amounts paid by remaining carriers to make up the unpaid contributions of terminating carriers pursuant to Article III, Part A. Section 1 of the Agreed Upon Implementation of Public Law 102-29 (1991 National Implementing Document).



Section 10 - Eligibility for Receipt of Signing Bonus, Lump Sum Payments

The signing bonus and lump sum payments provided for in this Article shall be paid to each employee subject to this Agreement who has an employment relationship as of the date such payments are payable, or has retired or died subsequent to the beginning of the applicable calendar year used to determine the amount of such payment. There shall be no duplication of lump sum payments by virtue of employment under another agreement nor will, such payments be used to offset, construct or increase guarantees in protective agreements or arrangements.




Section 11 - Calculation of Vacation Pay



The signing bonus and lump sum payments provided for in Sections 2, 3, and 5 of this Article will be included in the earnings of an employee in the determination of vacation allowances due in the year subsequent to their payment.



ARTICLE II - COST-OF-LIVING PAYMENTS



Part A -- Cost-of -Living Payments Under 1991 National Implementing Document



The nine-cent cost-of-living allowance in effect beginning July 1, 1995 pursuant to Article II, Part B of the 1991 National Implementing Document shall be rolled in to basic rates of pay on November 30, 1995 and such Article II, Part B shall be eliminated at that time. Any amounts paid from January 1, 1996 under the aforementioned COLA provision (effective January 1, 1996) shall be deducted from amounts payable under Article I of this Agreement.



Part B Cost-of-Living Allowance Through January 1, 2000 and Effective Date of Adjustment



(a)A cost-of -living allowance, calculated and applied in accordance with the provisions of Part C of this Article except as otherwise provided in this Part, shall be payable and rolled in to basic rates of pay on December 31, 1999.



(b) The measurement periods shall be as follows:

Measurement-Periods

Base Month                 Measurement Month        Effective Date of Adjustment

   March 1995                 March 1996
                                          plus

 March 1997                 March 1998                Dec. 31,1999



The number of points change in the CPI during each of these measurement periods shall be added together before making the calculation described in Part C, Section I(e) of this Article.



(c)(i) Floor. The minimum increase in the CPI that shall be taken into account shall be as follows:


Effective Date                                   Minimum CPI Increase That
of Adjustment                                    Shall Be Taken Into Account

Dec. 31, 1999                                    4% of March 1995 CPI                                                              plus
                                                                                                              4% of March 1997 CPI

(ii) Cap. The maximum increase in the CPI that shall be taken into account shall be as follows:

Effective Date                                   Maximum CPI Increase That
of Adjustment                                    Shall Be Taken Into Account

Dec. 31, 1999                                    6% of March 1995 CPI
                                                 plus
                                                 6% of March 3.997 CPI



(d) The cost-of-living allowance payable to each employee and rolled in to basic rates of pay on December 31, 1999 shall be equal to the difference between (i) the cost-of-living allowance effective on that date pursuant to this Part, and (ii) the lesser of W the cents per hour produced by dividing one-quarter of the increase, if any, in the carriers' 1998 payment rate for foreign-to-occupation health benefits under the Plan over such payment rate for 1995, by the average composite straight-time equivalent hours that are subject to wage increases for the latest year for which statistics are available, and (y) one half of the cost-of-living allowance effective on December 31, 1999 pursuant to this Part.


Part C - Cost-of-Living Allowance and Adjustments Thereto After January-1, 2000

Section I -Cost-of-Living Allowance and Effective Dates of Adjustments



(a) A cost-of-living allowance shall be payable in the manner set forth in and subject to the provisions of this Part, on the basis of the "Consumer Price Index for Urban Wage Earners and Clerical Workers (Revised Series) (CPI-W)II (1967=100), U.S. Index, all items - unadjusted, as published by the Bureau of Labor Statistics, U.S. Department of Labor, and hereinafter referred to as the CPI. The first such cost-of-living allowance shall be payable effective July 1, 2000 based, subject to paragraph (d) , on the CPI for March 2000 as compared with the CPI for September 1999. Such allowance, and further cost-of-living adjustments thereto which shall become effective as described below, shall be based on the change in the CPI during the respective measurement periods shown in the following table, subject to the exception provided in paragraph (d) (iii) , according to the formula set forth in paragraph (e) .

Measurement Periods


Base Month           Measurement Month            Effective Date of Adjustment

September 1999       March 2000                   July 1, 2000

March 2000           September 2000               January 1, 2001



Measurement Periods and Effective Dates conforming to the above schedule shall be applicable to periods subsequent to those specified above during which this Article is in effect.


(b) While a cost-of -living allowance is in effect, such cost-of-living allowance shall apply to straight time, overtime, vacations, holidays and to special allowances in the same manner as basic wage adjustments have been applied in the past, except that such allowance shall not apply to duplicate time payments, including arbitraries and special allowances that are expressed in time, miles or fixed amounts of money.

(c) The amount of the cost-of-living allowance, if any, that shall be effective from one adjustment date to the next may be equal to, or greater or less than, the cost-of-living allowance in effect in the preceding adjustment period.

(d) (i) Cap. In calculations under paragraph (e), the maximum increase in the CPI that shall be taken into account shall be as follows:


             Effective Date                             Maximum CPI Increase That
      Of Adjustment                              May Be Taken Into Account

     July 1, 2000                                3% of September 1999 CPI

           January 1, 2001                             6% of September 1999 CPI,
                                                 less the increase from
                                                 September 1999 to March 2000


Effective Dates of Adjustment and Maximum CPI Increases conforming to the above schedule shall be applicable to periods subsequent to those specified above during which this Article is in effect.


(ii) Limitation. in calculations under paragraph (e), only fifty (50) percent of the increase in the CPI in any measurement period shall be considered.


(iii) If the increase in the CPI from the base month of September 1999 to the measurement month of March 2000 exceeds 3% of the September 1999 base index, the measurement period that shall be used for determining the cost-of-living adjustment to be effective the following January shall be the 12-month period from such base month of September; the increase in the index that shall be taken into account shall be limited to that portion of the increase that is in excess of 3% of such September base index; and the maximum increase in that portion of the index that may be taken into account shall be 6% of such September base index less the 3% mentioned in the preceding clause, to which shall be added any residual tenths of points which had been dropped under paragraph (e) below in calculation of the cost-of-living adjustment which shall have become effective July 1, 2000 during such measurement period.


(iv) Any increase in the CPI from the base month of September 1999 to the Measurement month of September 2000 in excess of 6% of the September 1999 base index shall not be taken into account in the determination of subsequent cost-of living adjustments.

(v) The procedure specified in subparagraphs (iii) and (iv) shall be applicable to all subsequent periods during which this Article is in effect.

(e) Formula. The number of points change in the CPI during a measurement period, as limited by paragraph (d), shall be converted into cents on the basis of one cent equals 0.3 full points. (By "0.3 full points" it is intended that any remainder of 0.1 point or 0.2 point of change after the conversion shall not be counted.)


The cost-of-living allowance in effect on December 31, 2000 shall be adjusted (increased or decreased) effective January 1, 2001 by the whole number of cents produced by dividing by 0.3 the number of points (including tenths of points) change, as limited by paragraph (d), in the CPI during the applicable measurement period. Any residual tenths of a point resulting from such division shall be dropped. The result of such division shall be added to the amount of the cost-of-living allowance in effect on December 31, 2000 if the CPI shall have been higher at the end than at the beginning of the measurement period, and subtracted therefrom only if the index shall have been lower at the end than at the beginning of the measurement period and then, only, to the extent that the allowance remains at zero or above. The same procedure shall be followed in applying subsequent adjustments.


(f) Continuance of the cost-of-living allowance and the adjustments thereto provided herein is dependent upon the availability of the official monthly ELS Consumer Price Index (CPI-W) calculated on the same basis as such Index, except that, if the Bureau of Labor Statistics, U.S. Department of Labor should, during the effective period of this Article, revise or change the methods or basic data used in calculating such Index in such a way as to affect the direct comparability of such revised or changed index with the CPI-W during a measurement period, then that Bureau shall be requested to furnish a conversion factor designed to adjust the newly revised index to the basis of the CPI-W during such measurement period.



Section 2 - Payment of Cost-of-Living Allowances

(a) The cost-of-living allowance payable to each employee effective July 1, 2000 shall be equal to the difference between (i)the cost-of -living allowance effective on that date pursuant to Section 1 of this Part, and (ii) the lesser of (x) the cents per hour produced by dividing one-quarter of the increase, if any, in the carriers' 1999 payment rate for foreign-to-occupation health benefits under the Plan over such payment rate for 1998, by the average composite straight-time equivalent hours that are subject to wage increases for the latest year for which statistics are available, and (y) one-half of the cost-of-living allowance effective July 1, 2000.


(b) The increase in the cost-of-living allowance effective January 1, 2000 pursuant to Section 1 of this Part shall be payable to each employee commencing on that date.


(c) The increase in the cost-of-living allowance effective July 1, 2001 pursuant to Section 1 of this Part shall be payable to each employee commencing on that date.


(d) The procedure specified in paragraphs (b) and (c) shall be followed with respect to computation of the cost-of-living allowances payable in subsequent years during which this Article is in effect.

(e) The definition of the carriers' payment rate for foreign-to-occupation health benefits under the Plan set forth in Section 9 of Article I shall apply with respect to any year covered by this Section.


(f) In making calculations under this Section, fractions of a cent shall be rounded to the nearest whole cent; fractions less than one-half cent shall be dropped and fractions of one-half cent or more shall be increased to the nearest full cent.


Section 3 - Application of Cost-of-Living Allowances



The cost-of-living allowance provided for by Section I of this Part C will not become part of basic rates of pay. In application of such allowance, each one cent per hour of cost-of -living allowance that is payable shall be treated as an Increase of 8 cents in the basic daily rates of pay produced by application of Article I. The cost-of -living allowance will otherwise be applied in keeping with the provisions of Section 8 of Article I.

Section 4 - Continuation of Part C

The arrangements set forth in Part C of this Article shall remain in effect according to the terms thereof until revised by the parties pursuant to the Railway Labor Act.




ARTICLE III - DENTAL BENEFITS



Section 1 - Continuation of Plan

The benefits now provided under the Railroad Employees National Dental Plan (Dental Plan), modified as provided in Section 2 below, will be continued subject to the provisions of the Railway Labor Act, as amended.


Section 2 - Eligibility

Existing eligibility requirements under, the Dental Plan are amended, effective January 1, 1996, to provide that in order for an employee and his eligible dependents to be covered for Covered Dental Expenses (as defined in the Dental Plan) during any calendar month by virtue of rendering compensated service or receiving vacation pay in the immediately preceding calendar month (the "qualifying month"), such employee must have rendered compensated service on, or received vacation pay for, an aggregate of at least seven (7) calendar days during the applicable qualifying month. Any calendar day on which an employee assigned to an extra list is available for service but does not perform service shall be deemed a day of compensated service solely for purposes of this Section. Existing Dental Plan provisions pertaining to eligibility for and termination of coverage not specifically amended by this Section shall continue in effect.


Section 3 - Benefit Changes

The following changes will be made effective as of January 1, 1999.

(a) The maximum benefit (exclusive of any benefits for orthodonture) which may be paid with respect to a covered employee or dependent in any calendar year beginning with calendar year 1999 will be increased from $1,000 to $1,500.


(b) The lifetime aggregate benefits payable for all orthodontics treatment rendered to a covered dependent, regardless of any interruption in service, will be increased from $750 to $1,000.

(c) The exclusion from coverage for implantology (including synthetic grafting) services will be deleted and dental implants and related services will be added to the list of Type C dental services for which the Plan pays benefits.

(d) Repair of existing dental implants will be added to the list of Type B dental services for which the Plan pays benefits.

(e) one application of sealants in any calendar year for dependent children under 14 years of age will be added to the list of Type A dental services for which the Plan pays benefits.

(f) The Plan will pay 80%, rather than 75%. of covered expenses for Type B dental services.


(g) The Plan will establish and maintain an 800 telephone number that employees and dependents may use to make inquiries regarding the Plan.


ARTICLE IV - VISION CARE



Section 1 - Establishment and Effective Date

The railroads will establish a Vision Care Plan to provide specified vision care benefits to employees and their dependents, to become effective January 1, 1999 and to continue thereafter subject to provisions of the Railway Labor Act, as amended, according to the following provisions:

(a) Eligibility and Coverage. Employees and their dependents will be eligible for coverage under the Plan beginning on the first day of the calendar month after the employee has completed a year of service for a participating railroad, but no earlier than the first day of January 1999. An eligible employee who renders compensated service on, or receives vacation pay for, an aggregate of at least seven (7) calendar days in a calendar month will be covered under the Plan, along with his eligible dependents, during the immediately succeeding calendar month. Any calendar day on which an employee assigned to an extra list is available for service but does not perform service shall be deemed a day of compensated service solely for purposes of this Section.

(b) Managed Care. Managed vision care networks that meet standards developed by the National Carriers' Conference Committee concerning quality of care, access to providers and cost effectiveness shall be established wherever feasible. Employees who live in a geographical area where a managed vision care network has been established will be enrolled in the network along with their covered dependents. Employees enrolled in a managed vision care network will have a point-of-service option, allowing them to choose an out-of-network provider to perform any vision care service covered by the Plan that they need. The benefits provided by the Plan when services are performed. by in-network providers will be greater than the benefits provided by the Plan when the services are performed by providers who are not in-network providers, including providers in geographic areas where a managed vision care network has not been established. These two sets of benefits will be as described in the table below.

Plan Benefit In-Network Other Than
In-Network
One vision examination
per 12-month period.
100% of reasonable
and customary charges
100% of reasonable
and customary
charges
up to a $35 maximum
One set of frames of
any kind per 24-
month period
100% of reasonable
and customary charges(1)
100% of reasonable
and customary charges
up to a $35 maximum
One set of two
lenses of any kind,
including contact
lenses, per 24-month
period.
100% of reasonable
and customary charges(2)
100% of reasonable
and customary
charges up to
the
following maximums:

up to $25 for single vision lenses

up to $40 for bifocals

up to $55 for trifocals

up to $80 for lenticulars

up to $210 for medically necessary
contact lenses

up to $105 for contact lenses that
are not medically necessary

Where the employee
or dependent
requires only one lens
100% of reasonable
and customary
charges 2/
100% of reasonable
and customary
charges up to a maximum of
one-half
of the maximum benefit
payable for
a set of two lenses
of the same kind

1 Patients who select frames that. exceed a wholesale allowance established under the program may be required to pay part of the cost of the frames selected.

2 Patients may be required to pay part of the cost of spectacle lenses or lens characteristics that are not necessary for the patient's visual welfare. Moreover, patients who choose contact lenses in lieu of spectacles may be required to pay part of a contact lens evaluation fee and part of the cost of fitting and materials.


Section 2 - Administration

The Vision Care Plan will be administered by the National Carriers' Conference Committee, which will bear the same responsibilities and perform the same functions as it does with respect to The Railroad Employees National Dental Plan, including the development of detailed plan language describing the Plan's eligibility, coverage, benefit and other provisions.



ARTICLE V - BENEFITS ELIGIBILITY



Section 1 - Health and Welfare Plan

The Railroad Employees National Health and Welfare Plan ("the Plan") is amended, effective January 1, 1996, as provided in this Section. In order for an Eligible Employee (as defined by the Plan) to continue to be covered by the Plan during any calendar month by virtue of rendering compensated service or receiving vacation pay in the immediately preceding calendar month (the "qualifying month"), such employee must have rendered compensated service on, or received vacation pay for, an aggregate of at least seven (7) calendar days during the applicable qualifying month. Any calendar day on which an employee assigned to an extra list is available for service but does not perform service shall be deemed a day of compensated service solely for purposes of this Section. Existing Plan provisions pertaining to eligibility for and termination of coverage not specifically amended by this Section shall continue in effect.

Section 2 - Vacation Benefits

Existing rules governing vacations are amended as follows effective January 1,  1997:

(a) The minimum number of basic days in miles or hours paid for, as provided in individual schedules, on which an employee must render service under schedule agreements held by the organization signatory hereto to qualify for an annual vacation for the succeeding calendar year shall be increased by fifty (50) percent from the minimum number applicable under vacation rules in effect on the date of this Agreement. The multiplying factors set forth in vacation rules in effect on the date of this Agreement shall be amended to provide that each basic day in yard service performed by a yard service employee or by an employee having interchangeable road and yard rights shall be computed as 1.6 days, and each basic day in all other services shall be computed as 1.3 days, for purposes of determining qualification for vacation based on service rendered in the preceding calendar year.

NOTE: It is the parties' intention that, in accordance with application of the multiplying factors set forth in existing vacation rules as amended above, commencing with calendar year 1997 this subsection would require the equivalent of 150 qualifying days in a calendar year in yard service and 180 qualifying days in a calendar year in road service to qualify for an annual vacation for the succeeding year.

(b) Calendar days on which an employee assigned to an extra list is available for service and on which days he performs no service, not exceeding ninety (90) such days, will be included in the determination of qualification for vacation; also, calendar days, not in excess of forty-five (45), on which an employee is absent from and unable to perform service because of injury received on duty will be included. Such calendar days shall not be subject to the multiplying factors set forth in existing vacation rules as amended.

(c) Calendar days on which an employee is compensated while attending training and rules classes at the direction of the carrier will be included in the determination of qualification for vacation. Such calendar days shall not be subject to the multiplying factors set forth in existing vacation rules as amended.


(d) During a calendar year in which an employee's vacation entitlement will increase on the anniversary date, such employee shall be permitted to schedule the additional vacation time to which entitled on the anniversary date at. any time during that calendar year.

(e) An employee may make up to two splits in his annual vacation in any calendar year.


(f) An employee may take up to one week of his annual vacation in single day increments, provided, however, that such employee shall be automatically marked up for service upon the expiration of any single day vacation,

(g) Existing rules and practices regarding vacations not specifically amended by this Section, including (but not limited to) scheduling of vacations, shall continue in effect without change.

Section 3

This Article is not intended to restrict any of the existing rights of a carrier except as specifically provided herein.



ARTICLE VI - PERSONAL LEAVE



Section 1

Employees in road freight service covered by this Agreement and not covered by the National Paid Holiday Rules shall be provided with personal leave days on the following basis:

        Years of Service                         Personal Leave Days

        Less than five years                     3 days

       Five years and less than 10 years         5 days

   Ten years and less than 15 years          7 days

      Fifteen years and less than 20 years      9 days

      Twenty years or more                     11 days



Section 2

No employee covered by this Agreement shall receive in the aggregate more than eleven (11) personal leave days and paid holidays in any calendar year.



Section 3

(a) Personal leave days provided in Section 1 shall be scheduled with the approval of the proper carrier officer upon forty-eight (48) hours, advance notice from the employee.

(b) The employee will he paid one basic day at the rate of the last service performed for each personal leave day.

(c) Any personal leave days provided for herein that are requested but denied by the carrier 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. Personal leave days carried over into another year because requested time off was denied by the carrier shall not be bought out.

(d) To qualify for personal leave days in any given calendar year, the employee must have been credited with at least 150 days for work during the preceding calendar year.

Section 4

Nothing in this Article is intended to restrict any of the existing rights of a carrier.




Section 5

This Article shall become effective on January 1, 1997 except on such carriers where the organization representative may elect to preserve existing local rules or practices pertaining to personal leave days and so notifies the authorized carrier representative on or before such effective date.




ARTICLE V11 - ENHANCED-EMPLOYMENT OPPORTUNITIES



Section 1

In the event that a carrier sells or leases its interest in one or more rail lines to a non-carrier pursuant to a transaction authorized under 49 U.S.C. §10901 (or any successor provision) as to which labor protective conditions have not been. imposed by any governmental authority, any employee represented by the organization signatory hereto who (i) as a result of that transaction is deprived of employment with the carrier because of the abolition of his position, and (ii) does not accept employment with the purchaser shall be entitled to the benefits set forth in Section 2.

Section 2

(a) An employee covered by Section 1 shall have the right, in seniority order, to bid on vacant positions or claim open locomotive engineer positions at any location on the carrier at any time within ninety (90) days after being deprived of employment. Seniority issues associated with the exercise of that right shall be resolved by the carrier and the organization representative or, absent agreement and at the request of either party by written notice served on the appropriate representative of the other party, by final and binding arbitration as provided in subsection (b) Solely for the purpose of this Section, a single locomotive engineer seniority roster for the carrier shall be developed, in accordance with applicable rules and procedures, no later than June 30, 1996.


(b) The arbitrator shall be selected by the parties. If they fail to agree within five days from the date notice of the submission to arbitration is received from the moving party, either party may request a list of five potential arbitrators from the National Mediation Board, from which the parties shall choose the arbitrator through alternate striking. The order of such striking shall. be determined by coin flip unless otherwise agreed by the parties. The fees and expenses of the arbitrator shall be paid under Section 153 of the Railway Labor Act.

(C) An employee exercising rights under this Section who relocates his residence shall receive a relocation allowance of $5,000, provided, however, that an employee shall be required to elect between such allowance and any carrier relocation benefits that may be provided to such employee under other existing agreements or arrangements. Such allowance shall be paid in two equal installments: the first payable on the relocation date, and the second ninety (90) days thereafter. Such allowance (or any portion thereof) shall be payable as provided as long as the individual has an employment relationship with the carrier and is still at the new location at the time the payment is due.

NOTE: Employees who presently have extended seniority and who are deprived of employment on their prior right territory(s) as a result of a transaction covered in Section 1, will be covered by the conditions of Section 2 (c) , provided that any exercise of seniority must be beyond their prior right territory (s) , with a minimum of fifty (50) miles distance.


Section 3

In the case of any transaction authorized under 49 U.S.C. §10901 (or any successor provision), the arrangements provided for under this Article shall be deemed to fulfill all of the parties' bargaining obligations that may exist under any applicable statute, agreement or other authority with respect to such transaction, and shall also be deemed to satisfy the standards for the protection of the interests of employees who may be affected by such transaction described in 49 U.S.C. §10901(e).

Section 4

This Article shall become effective ten (10) days after the date of this Agreement and is not intended to restrict any of the existing rights of a carrier except as specifically provided herein.


ARTICLE VIII - RATE PROGRESSION ADJUSTMENT FOR PROMOTION



Section 1

(a) An employee who is subject to national rules concerning rate progression on the effective date of this Article shall have his position on the rate progression scale adjusted to the next higher level upon promotion to engineer. An employee covered by this Agreement who is subject to Article IV, Section 5 of the 1991 National Implementing Document (Rate Progression - New Hires) on the effective date of this Article shall have his position on the rate progression scale adjusted to the next higher level on such effective date.


(b) The next adjustment to an employee's position on the rate progression scale after the adjustment specified in subsection (a) of this Section shall be made when such employee completes one year of "active service" (as defined by the aforementioned Article IV, Section 5) measured from the date on which that employee would have attained the position on the rate progression scale provided pursuant to subsection (a) of this Section.

Section 2

Local rate progression rules applicable on a carrier that is not covered by the aforementioned Article IV, Section 5 are hereby amended in the same manner as provided in Section 1.


Section 3

This Article shall become effective ten (10) days after the date of this Agreement and is not intended to restrict any of the existing rights of a carrier except as specifically provided herein.





ARTICLE IX - ENHANCED CUSTOMER SERVICE

Article IX - Special Relief, Customer Service - Yard Crews of the 1991 National Implementing Document is amended to read as follows and furthermore shall be applicable to all carriers party to this Agreement:

Section I

(a) When an individual carrier has a customer request for particularized handling that would provide more efficient service, or can show a need for relaxation of certain specific work rules to attract or retain a customer, such service may be instituted on an experimental basis for a six-month period.

(b) Prior to implementing such service, the carrier will extend seven (7) days advance notice where practicable but in no event less than forty-eight (48) hours, advance notice to the General Chairman of the employees involved. Such notice will include an explanation of the need to provide the service, a description of the service, and a description of the work rules that may require relaxation for implementation. Relaxation of work rules that may be required under this Article shall be limited to: starting times, yard limits, calling rules, on/off duty points, seniority boundaries, and class of service restrictions.

(c)  A Joint Committee, comprised of an equal number of carrier representatives and organization representatives, shall determine whether a need exists, as provided in paragraph (a), to provide the service If the Joint Committee has not made its determination by the end of the advance notice period referenced in paragraph (b), it shall be deemed to be deadlocked, and the service will be allowed on an experimental basis for a six-month period. If, after the six-months has expired, the organization members of the Joint Committee continue to object, the matter shall be referred to arbitration.


(d) If the parties are unable to agree upon an arbitrator within seven days of the date of the request for arbitration, either party may request the National Mediation Board to provide a list of five potential arbitrators, from which the parties shall choose the arbitrator through alternate striking. The order of such striking shall be determined by coin flip unless otherwise agreed by the parties. The fees and expenses of the arbitrator shall be borne equally by the parties.


(e) The determination of the arbitrator shall be limited to whether the carrier has shown a bona fide need to provide the service requested or can provide the service without a special exception to existing work rules being made at a comparable cost to the carrier. If the arbitrator determines that this standard has not been met, the arbitrator shall have the discretion to award compensation for all wages and benefits lost by an employee as a result of the carrier's implementation of its proposal.

Section 2

This Article shall become effective ten (10) days after the date of this Agreement and is not intended to restrict any of the existing rights of a carrier.



ARTICLE X - DISPLACEMENT



Section 1

(a) Where agreements that provide for the exercise of displacement rights within a shorter time period are not in effect, existing rules are amended to provide that, an employee who has a displacement right on any position (including extra boards) within a terminal or within 30 miles of such employee's current reporting point, whichever is greater, must, from the time of proper notification under the applicable agreement or practice, exercise that displacement right within forty-eight (48) hours.


(b) Failure of an employee to exercise displacement rights, as provided in (a) above, will result in said employee being assigned to the applicable extra board, seniority permitting. (The applicable extra board is the extra board protecting the assignment from which displaced.)

(c) In the event force assignment is not compatible with local agreements, prior to implementation, the parties will meet on property to determine an avenue of assignment.

Section 2

This Article shall become effective ten (10) days after the date of this Agreement and is not intended to restrict any of the existing rights of a carrier.




ARTICLE XI - NATIONAL WAGE AND RULES PANEL



Section 1

(a) The parties, realizing the complexities of the changing rail industry and environment, and to alleviate any adversarial relationships emanating from such, agree to establish a non-binding joint review Panel to study and examine those unresolved subjects.

The National Wage and Rules Panel (Panel) shall consist of three (3) partisan members representing the Brotherhood of Locomotive Engineers, three (3) partisan members representing the carriers, and _____________, who shall be considered as Chairman The President of BLE and the Chairman of the National Carriers Conference Committee (NCCC) shall be ex officio partisan members of the Panel. On any matter, the BLE, NCCC, and the Chairman shall each be deemed to have a single vote.

(b) The parties will assume the compensation and expenses of their respective partisan members. The fees and expenses of the Chairman and any incidental expenses incurred in connection with Panel meetings shall be shared equally by the parties.


Section 2

The Panel is authorized to comprehensively examine the following subjects:

Section 3

The Panel shall promptly establish its operating procedures, which shall be designed to review and evaluate the facts regarding the aforementioned subjects and to expedite and enhance the opportunity to reach joint voluntary solutions to matters in dispute between the parties with respect to those subjects. The Panel may, by unanimous vote of the members and with the consent of the respective Carriers and General Committee(s) involved, develop and implement pilot projects and similar initiatives that would permit the Panel to test and evaluate, on a limited basis, potential alternatives to existing arrangements that would resolve issues of concern to the parties.


Section 4

(a) If the parties have not reached agreement on issues pertaining to the matters covered by Section 2 by January 1, 1999f the Panel shall make recommendations for disposing of all unresolved issues not later than July 1, 1999. While the Panel's recommendations shall not be considered final and binding, the parties shall exert good faith efforts to utilize those recommendations as a basis for settlement of the issues involved. Notwithstanding any provision to the contrary, the Panel may be dissolved at any time by majority vote of the members.

(b) It is agreed that antecedent proposals exchanged between the parties relating to those items subject to the Panel. shall not be considered precedential or cited in further handling of any issue before any tribunal established to resolve disputes under the Railway Labor Act.



ARTICLE XII - GENERAL PROVISIONS



Section 1 - Court Approval

This Agreement is subject to approval of the courts with respect to participating carriers in the hands of receivers or trustees.


Section 2 - Effect of this Agreement

(a) The purpose of this Agreement is to fix the general level of compensation and other terms and conditions of employment during the period of the Agreement and is in settlement of the dispute growing out of the notices dated November 1, 1994 served by and on behalf of the carriers listed in Exhibit A upon the organization signatory hereto, and the notices dated on or about November 1, 1994 served by the organization upon such carriers.


(b) This Agreement shall be construed as a separate agreement by and on behalf of each of said carriers and their employees represented by the organization signatory hereto, and shall remain in effect through December 31, 1999 and thereafter until changed or modified in accordance with the provisions of the Railway Labor Act, as amended.


(c) The parties to this Agreement shall not serve nor progress prior to November 1, 1999 (not to become effective before January 1, 2000) any notice or proposal for changing any matter contained in:

(1) this Agreement,



(2)  the proposals of the parties identified in Section 2 (a) of this Article, and

(3) Section 2 (c) (3) of Article VIII of the National Agreement of March 6, 1975,

and any pending notices which propose such matters are hereby withdrawn.

(d) The parties to this Agreement shall not serve nor progress prior to November 1, 1999 (not to become effective before January 1, 2000) any notice or proposal which might properly have been served on November 1, 1994, and any pending notices which propose such matters are hereby withdrawn.

(e) This Article will not bar management and committees on individual railroads from agreeing upon any subject of mutual interest.

SIDE LETTERS

                                     


   #1                                       1996

Mr. Ronald P. McLaughlin
President
Brotherhood of Locomotive Engineers
Standard Building
1370 Ontario Street
Cleveland, OH 44113-1702


Dear Mr. McLaughlin:

This confirms our understanding with respect to the general wage increase provided for in Article I, Section 1, and the signing bonus provided for in Article 1, Section 2, of the Agreement of this date.

The carriers will make all reasonable efforts to pay the retroactive portion of such general wage increase and the signing bonus as soon as possible and no later than sixty (60) days after the date of this Agreement.

If a carrier finds it impossible to make such payments within that specified time period, such carrier shall notify you in writing explaining why such payments have not been made and indicating when the payments will be made.

 

Very truly yours,

Robert F. Allen




#2                          1996


Mr. Ronald P. McLaughlin
President
Brotherhood of Locomotive Engineers
Standard Building
1370 Ontario Street
Cleveland, OH 44113-1702

Dear Mr. McLaughlin;

This refers to the increase in wages provided for in Section 1 of Article I of the Agreement of this date.


It is understood that the retroactive portion of that wage increase shall be applied only to employees who have an employment relationship with a carrier on the date of this Agreement or who retired or died subsequent to December 1, 1.995.

Please acknowledge your agreement by signing your name in the space provided below.

Yours very truly,

Robert F. Allen

I agree:

R. P. McLaughlin



#3     1996


Mr. Ronald P. McLaughlin
President
Brotherhood of Locomotive Engineers
Standard Building
1370 Ontario Street
Cleveland, OH 44113-1702

Dear Mr. McLaughlin:

This confirms our understanding regarding Article I - Wages of the Agreement of this date.

Solely for the purpose of concluding this Agreement, the carriers have agreed to apply the general wage increases provided for therein to mileage rates of pay for miles run in excess of the number of miles comprising a basic day (overmiles) and to compute the lump sums provided for therein without excluding overmiles.

Our agreement to include language providing for such applications shall not be considered as precedent for how such issues should be addressed in the future and is without prejudice to our position that this component of the pay system is inappropriate.

Please acknowledge your agreement by signing your name in the space provided below.


Yours very truly,

Robert F. Allen

I agree:

R. P. McLaughlin

#4


Mr. Ronald P. McLaughlin
President
Brotherhood of Locomotive Engineers
Standard Building
1370 Ontario Street
Cleveland, OH 44113-1702


Dear Mr. McLaughlin:

This refers to the Lump Sum Payments provided for in Article 1 of the Agreement of this date.

Sections 3 and 5 of Article I are structured so as to provide payments that are essentially based on the compensation earned by an employee during a specified calendar year. Section 10 provides that all of these payments are payable to an employee who has an employment relationship as of the dates such payments are made or has retired or died subsequent to the beginning of the applicable calendar year used to determine the amount of such payments. Thus, for example, under Section 3 of Article I, except for an employee who has retired or died, the Agreement requires that an employee have an employment relationship on July 1, 1996 in order to receive that lump sum payment.

The intervals between the close of the measurement periods and the actual payments established in the 1991 National Implementing Document were in large measure a. convenience to the carriers in order that there be adequate time to make the necessary calculations.

In recognition of this, we again confirm the understanding that an individual having an employment relationship with a carrier on the last day of a particular calendar year used to determine the amount of a payment under Section 3 and 5 of Article I will not be disqualified from receiving the payment provided for in the event his employment relationship is terminated following the last day of such calendar year but prior to the payment due date.

Yours very truly,

Robert F. Allen






#5



Mr. Ronald P. McLaughlin
President
Brotherhood of Locomotive Engineers
Standard Building
1370 Ontario Street
Cleveland, OH 44113-1702


Dear Mr. McLaughlin:

This confirms our understanding with respect to Article III, Section 2 and Article V, Section 1 of the Agreement of this date.

Those provisions shall be applied effective on the first day of the calendar month immediately following the month in which this Agreement is ratified.

Please acknowledge your agreement by signing your name in the space provided below.

Yours very truly,

Robert F. Allen

I agree:

R. P. McLaughlin




#6



Mr. Ronald P. McLaughlin
President
Brotherhood of Locomotive Engineers
Standard Building
1370 Ontario Street
Cleveland, OH 44113-1702


Dear Mr.McLaughlin:

This confirms our understanding regarding Article V - Benefits Eligibility of the Agreement of this date.

This will confirm our understanding that eligibility criteria in effect on December 31, 1995 governing coverage by The Railroad Employees National Health and Welfare Plan shall continue to apply to employees represented by the organization who hold positions as working General Chairmen, Local Chairmen, and State Legislative Board Chairmen ("local officials"). In other words, the changes in eligibility as set forth in Article V, Section 1 are not intended to revise eligibility conditions for local officials. It is

further understood that by providing this exclusion it is not intended that the total number of such officials covered be expanded.

Please acknowledge your agreement by signing your name in the
space provided below.



Yours very truly,

Robert F.Allen


I agree:


R. P. McLaughlin







#7




Mr. Ronald P. McLaughlin
President
Brotherhood of Locomotive Engineers
Standard Building
1370 Ontario Street
Cleveland, OH 44113-1702



Dear Mr. McLaughlin:

This confirms our understanding regarding Article V - Benefits Eligibility of the Agreement of this date.

This will confirm our understanding that vacation qualification criteria in effect on the date of this Agreement shall continue to apply to employees represented by the organization who hold positions as working General Chairmen, Local Chairmen, and State Legislative Board Chairmen ("local officials"). In other words, the changes in qualification as set forth in Article V, Section 2 are not intended to revise vacation qualification conditions for such local officials. It is further understood that by providing this exclusion it is not intended that the total number of such officials covered be expanded.

Please acknowledge your agreement by signing your name in the space provided below.


Yours very truly,

Robert F.Allen




I agree:

R. P. McLaughlin




#8


Mr. Ronald P. McLaughlin
President
Brotherhood of Locomotive Engineers
Standard Building
1370 Ontario Street
Cleveland, OH 44113-1702


Dear Mr. McLaughlin:

During the negotiations which led to the Agreement of this date, the parties had numerous discussions about the relationship between time worked and benefits received. The carriers were concerned that certain employees were not making themselves sufficiently available for work, but due to the then current eligibility requirements such employees remained eligible for health and welfare benefits.

As a result of these discussions, the parties agreed to tighten one eligibility requirement from any compensated service in a month to seven calendar days compensated service in a month (the "seven-day rule"). However, it was not the intent of the parties to affect employees by this change where such employees have made themselves available for work and would have satisfied the seven day rule but for an Act of God, an assignment of work which did not permit satisfaction of the seven-day rule, or because monthly mileage limitations, monthly earnings limitations and/or maximum monthly trip provisions prevented an employee from satisfying that rule.

Also, where employees return to work from furlough, suspension, dismissal, or disability (including pregnancy), or commence work as new hires, at a time during a month when there is not opportunity to render compensated service on at least seven calendar days during that month, such employees will be deemed to have satisfied the seven-day rule, provided that they are available or actually work every available work opportunity.

However, in no case will an employee be deemed eligible for benefits under the new eligibility requirement if such employee would not have been eligible under the old requirements.


Please acknowledge your agreement by signing your name in the space provided below.

Yours very truly,

Robert F. Allen


I agree:

R. P. McLaughlin



#9



Mr. Ronald P. McLaughlin
President
Brotherhood of Locomotive Engineers
Standard Building
1370 Ontario Street
Cleveland, OH 44113-1702


Dear Mr. McLaughlin:

This confirms our understandings regarding Article VIII - Rate Progression Adjustment For Promotion of the Agreement of this date -

1. Such Article is not intended to supplant existing rules that treat employees more favorably with respect to rate progression, including while working as or upon promotion to engineer. That is, such rules are preserved and shall continue to apply in lieu of Article VIII.

2 . Any promotion adjustment made pursuant to Article VIII shall be applied solely on a prospective basis.

Please acknowledge your agreement by signing your name in the space provided below.



Yours very truly,

Robert F. Allen




I agree:

R. P. McLaughlin



#10


Mr. Ronald P. McLaughlin
President
Brotherhood of Locomotive Engineers
Standard Building
1370 Ontario Street
Cleveland, OH 44113-1702

Dear Mr. McLaughlin:

This confirms our understanding regarding Article IX Enhanced Customer Service of the Agreement of this date.

In recent years the rail freight sector of the transportation market place has taken steps toward a more competitive discipline which, if successful, could point the rail industry toward more growth. The parties to this Agreement are intent on nurturing these improvements. In this respect we mutually recognize that an important reason underlying the recent improvement has been enhanced focus on customer needs and improved service as the framework for working conditions. Increased employee productivity and more immediate responses to customer needs by railroad employees at all levels have been and will continue to be at the very heart of this effort.

In order to continue these recent improvements, the parties intend to respond to customers' needs with even greater efforts. In Article IX, we have developed a framework for achieving our mutual goal of retaining existing customers and attracting new business by providing more efficient and expedient service, including relaxation of work rules specified therein where and to the extent necessary for those purposes. we are also in accord that these undertakings should appropriately recognize the interests of affected employees in fair and equitable working conditions.

This will confirm our understanding that the NCCC Chairman and the BLE President shall promptly confer on any carrier proposal under Article IX that the BLE President deems to be egregiously inconsistent with our mutual intent. Such proposal shall be held in abeyance pending conference and shall not be implemented until adjusted by agreement of the parties or, absent such agreement, resolved by expedited, party paid arbitration as set forth in the attachment hereto.

Please acknowledge your agreement by signing your name in the space provided below.

Yours very truly,

Robert F. Allen

I agree:

R. P.  McLaughlin




#11


Mr. Ronald P. McLaughlin
President
Brotherhood of Locomotive Engineers
Standard Building
1370 Ontario Street
Cleveland, OH 44113-1702


Dear Mr. McLaughlin:


This refers to our discussions concerning flowback arrangements between engine and train service positions in those situations where the BLE represents engineers. Each carrier shall meet with and obtain the concurrence of the BLE representatives having jurisdiction over the engineers, seniority roster or rosters involved in any flowback arrangements on such carrier before the flowback arrangements are implemented.

Please acknowledge your agreement by signing your name in the space provided below.


Yours very truly,

Robert F. Allen

I agree:

R. P. McLaughlin


#12





Mr. Ronald P. McLaughlin
President
Brotherhood of Locomotive Engineers
Standard Building
1370 Ontario Street
Cleveland, OH 44113-1702

Dear Mr. McLaughlin:

This confirms our understanding with respect to the Agreement of this date.

The parties exchanged various proposals and drafts antecedent to adoption of the various Articles that, appear in this Agreement. It is our mutual understanding that none of such antecedent proposals and drafts will be used by any party for any purpose and that the provisions of this Agreement will be interpreted and applied as though such proposals and drafts had not been used or exchanged in the negotiation.


Please acknowledge your agreement by signing your name in the space provided below.

Yours very truly,

Robert F. Allen



I agree:

R. P. McLaughlin




Agreement to Arbitrate Between

The International Brotherhood of Locomotive,Engineers and the

Carriers Represented by the National Carriers Conference Committee





The parties agree to the following:

I. The Question-At-Issue to be submitted to arbitration shall be: In light of the agreement attached and all other relevant circumstances, should locomotive engineers receive any certification pay? If so, how much?


II. The major dispute arbitration provisions of the Railway Labor Act shall govern.


III. The parties have agreed on three impartial arbitrators to serve on the Arbitration Board. In the event one or more of those selected cannot serve, the parties shall agree on substitutes. The Arbitration Award may be rejected by individual General Committees if appropriate carrier official is notified within 30 days of issuance of Award.

IV. Where negotiations on local issues have begun but not concluded between the BLE and a carrier represented by the NCCC, the parties shall continue such negotiations until agreement is reached but in no event later than April 20, 1996.

V. The parties have attached a tentative timetable (Exhibit A) for processing this matter and commit to maintaining these time frames to the best of their abilities.

VI. This agreement is in full and final settlement of the notices served by the BLE on or after November 1. 1994 on carriers represented by the NCCC in the current round of bargaining and notices served by or on behalf of such carriers on the BLE on or after November 1, 1994.

VII. The parties recognize that this agreement must be submitted by the BLE for ratification in accordance with the BLE's Constitution and by-laws. The BLE shall notify the NCCC of the results of the ratification as promptly as possible.

____________________             __________    
       IBLE                  NCCC



Exhibit A





TENTATIVE TIMETABLE AS AGREED TO BY THE PARTIES



I. Reach written agreement by 2/24/96.

II. BLE completes ratification process by 4/20/96.

III. Agreement implemented 7 days after notification of ratification approval.          4/27/96

IV. Arbitration Board conducts hearings no later than 14 days after ratification approval.     5/6/96

V.  Hearings completed in two days including rebuttal. 5/7/96

VI. Post-hearing briefs submitted within seven days of hearing. 5/14/96

VII. Award issued no later than 8/1/96.

________________                                  ________________
IBLE                                                                   NCCC






1996


Mr. Ronald P. McLaughlin
President
Brotherhood of Locomotive Engineers
Standard Building
1370 Ontario Street
Cleveland, OH 44113-1702



Dear Mr. McLaughlin:

This confirms our understanding that during the arbitration process either party is free to make whatever arguments it chooses as to the propriety or lack thereof of offsetting any certification pay by means of granting rules relief to the carriers. Moreover, the jurisdiction of the arbitrators to address the merits of such arguments will not be challenged.

Please acknowledge this agreement by signing your name in the space below.


Yours very truly,


Robert F. Allen



I agree:


R. P. McLaughlin









MEMORANDUM OF AGREEMENT

Between

BURLINGTON NORTHERN RAILROAD COMPANY

And The

BROTHERHOOD OF LOCOMOTIVE ENGINEERS





ARTICLE -XIII



Each engineer, regardless of length of service, who is required by the Carrier to attend periodic training in order to maintain certification pursuant to CFR Part 240, at a location other than his home terminal, will be allowed $ 233.00 for each day of classroom training. This allowance is not subject to entry rate reductions. One travel day prior to first day of training, and one travel day following training, will not be compensated under this provision. Any travel requirements that exceed the one day, either before or after training, will be compensated by allowance of $ 233.00 for each additional calendar day. This allowance is subject to general wage and cost of living allowance increases. Reasonable transportation, lodging and meal expenses will be allowed. This provision supersedes all preceding provisions, agreements, understandings or practices concerning payment for engineer certification. This article is not intended to apply to safety meetings, rules exams or similar activities that are conducted at the home terminal.


ARTICLE XIV ENTRY RATES



Every locomotive engineer will be compensated at full (100%) rates when actually working as an engineer, including while assigned to engineers' guaranteed extra board. All other compensation, including but not limited to deadheading  compensation, will be subject to applicable entry rate progressions.


ARTICLE XV SPECIAL PAY DIFFERENTIAL


On the effective date of this agreement, all allowances paid to engineers, regardless of length of service, for working with a reduced crew and all related entitlement are eliminated. Payments eliminated include payments under Article I of OPS 33-81 and OPS 34-81, dated April 24, 198 11 Side Letter 20 of Arbitration Award 458, and Article V - Special Pay Differential contained in Implementation of Public Law 102 - 29. The differential of $4.00 and .04 cents per mile and/or $6.00 and .06 cents per mile paid to engineers working without a fireman is also eliminated.

On the effective date of this agreement, each engineer regardless of length of service, actually working in through freight service (subject to the 130-mile basic day) will receive a flat payment of $27.00 for each such working trip or tour of duty, in addition to normal trip payments provided for in other agreements and not canceled by this agreement. Each engineer in any other class of service will receive a flat payment of $18.00 for each such working trip or tour of duty, in addition to normal trip payments. These payments are frozen through June 30, 1998, and then subject to a 3.50% wage increase effective July 1, 1998, and thereafter will be subject to general wage and cost of living increases.



ARTICLE XVI 401 (K)



A 401 (k) plan or arrangement will be established as soon as practicable and following ratification of this agreement, in which locomotive engineers can participate and in which the employee contribution level is equal to the maximum Company deduction allowable by law, based upon locomotive engineers' compensation and assuming maximum participation by all participants.



ARTICLE XVII TERRITORIAL QUALIFICATION



When an engineer is required by rules to make territorial qualification or familiarization trips, such engineer will be compensated by allowance of a basic day at the rate of the Engineers' Guaranteed Extra List Agreement, dated April 4, 1994, for each trip or tour of duty. Such trips will be made with a certified engineer who is currently qualified on the territory, or with a qualified officer of the Carrier.

ARTICLE XVIII DIRECT DEPOSIT OF PAYROLL CHECKS

Each engineer shall participate in the program providing for the direct deposit of payroll checks into the employee's bank account. This provision will become effective with a sixty day notice by the Carrier to employees.


ARTICLE XIX TELEPHONE SERVICE



Each engineer must maintain telephone service, or other authorized electronic communication device, to facilitate transmission of call information. Any rules, understandings or practices that require a personal contact call at the employees' residence are eliminated.



ARTICLE XX TERMINAL RUNAROUNDS



All rules and agreements that provide for an additional payment to engineers for not departing the terminal in proper order are eliminated, and all entitlements to any such payment are, accordingly rescinded. Any engineer who does not depart the terminal in proper order of call will be entitled to restoration of turn under applicable agreements, including local memorandums.



ARTICLE XXI MARKING UP FOR DUTY



Each engineer in any class of service who is authorized time off for any reason, including for vacation, will be marked up for service upon expiration of the period authorized unless additional time is requested and granted prior to the expiration of the authorized period. This provision does not preclude an engineer from marking up earlier than the end of the authorized period.



ARTICLE XXII ROAD MEALS



In through freight service only all rules and agreements that provide for an entitlement to a meal, or provide for any payment in lieu thereof, during a tour of duty in are eliminated, and all such entitlements are accordingly rescinded.



This agreement is effective day of 1996, and will remain in effect until canceled or amended in accordance with the Railway Labor Act, as amended.



FOR:                                                            FOR:

NATIONAL CARRIERS                            BROTHERHOOD OF LOCOMOTIVE

CONFERENCE COMMITTEE                  ENGINEERS

                                                                     General Chairman BLE
                                                                     General Chairman BLE
                                                                     General Chairman BLE

APPROVED:

Vice President BLE

SIDE LETTER NO. 1

Mr. R. E. Dean
Brotherhood of Locomotive Engineers
2151 East A Highway ,1996
Springfield, MO 65803

Dear Mr. Dean:

This refers to our discussions regarding elements of pay referred to in Section 2(d) of the agreement of April 4, 1994 which are not intended to be offset against the extra board guarantee. We understood that the $18.00 trip payment for Engineers operating in other than through freight service and $18.00 of the $27.00 trip payment in through freight service would be paid in addition to the guarantee amount.

We further understood that when general wage increases are applied to the $18.00 and the $27.00 payments, respectively, the proportionate amount resulting from application of the increase(s) to the $18.00 would, likewise, be paid in addition to the guarantee for extra board engineers.

If you concur this accurately reflects our understanding, please sign in the space provided below.


Very truly yours                                         I concur:

John J. Fleps
Vice President Labor Relations                R.E. Dean, VP-BLE









SIDE LETTER NO. 2

Mr. R. E. Dean
Vice President
Brotherhood of Locomotive Engineers
2151 East A Highway
Springfield, MO 65803 1996


Dear Mr. Dean:

This confirms our understanding regarding Article 1- LOCOMOTIVE ENGINEER RECERTIFICATION of the agreement.

We agree that when an engineer is scheduled to report to the training center for recertification and such engineer stands for service on a trip which the engineer may not be able to complete and still have reasonable time to comply with the travel arrangements, the engineer must notify the Manager of Operating Practices or other designated officer prior to commencement of the trip (no later than the call time). The decision whether to mark off or make the trip will be made by the MOP/designated officer. When the decision of the designated officer is to mark off, the engineer will be marked off and paid as though having made the trip.

During the discussions there was concern expressed by both sides regarding the potential abuse of this circumstance. We were all in accord that the decision made by the designated officer was to be made based on consideration of the expected time to complete the service trip and to allow reasonable time thereafter for the engineer to gather belongings and materials necessary for the trip to the training center and to travel to the departure point of the means of conveyance being utilized. We also understood that engineers who choose not to travel to or from the training center by the means provided at Carrier's expense (normally by air) would not be allowed payment for lost earnings in excess of what others from the same location were given under usual travel circumstances.

If this accurately reflects our understanding, please indicate your concurrence in the spaces provided for that purpose below.


Very truly yours,                                      I concur:

John Fleps                                              Vice President

Vice President Labor Relations               R.E. Dean,






SIDE LETTER NO. 3

Mr. R. E. Dean
Vice President
Brotherhood of Locomotive Engineers
2151 East A Highway
Springfield, MO 65803 1996


Dear Mr. Dean:

This confirms the understanding reached relative to Article 3-SPECIAL PAY DIFFERENTIAL of the agreement.

We agree that the following agreements referred to in this Article 3 are of no further force and effect:

OPS 33-81, OPS 34-81 dated April 24, 1981

Side Letter 20 of Arbitration Award 458

Article V of Public Law 102-29.

We further understand, however, that the provision quoted below is maintained:

Engineers performing service with reduced train or yard crews will not be held responsible for accidents caused by failure of radio equipment to properly function. Carrier will be responsible for maintenance of radios, and engineers will not be held responsible for failure or malfunction of radio equipment unless obviously caused by employee abuse or tampering.

If this accurately reflects our understanding, please indicate your concurrence in the space provided for that purpose below.

Very truly yours,                                           I concur

John Fleps                                                    R.E. Dean
Vice President Labor Relations                     Vice President








SIDE LETTER NO. 4

Mr. R. E. Dean
Vice President
Brotherhood of Locomotive Engineers
2151 East A Highway
Springfield, MO 65803 1996

Dear Mr. Dean:

This confirms the understanding reached relative to Article 5-TERRITORIAL QUALIFICATION of the agreement.

We mutually intended that engineers on an extra list would not be bypassed by other engineers from the list due to not being qualified on a particular territory. In any event, we did agree when an engineer assigned to an extra list is bypassed for lack of territorial qualification he would not have the guarantee to which he would otherwise be entitled reduced.

If this accurately reflects our understanding, please indicate your concurrence in the space provided for that purpose below.


Very truly yours,                                                I concur:

John Fleps                                                        R.E. Dean,
Vice President Labor Relations                         Vice President








SIDE LETTER NO. 5

Mr. R. E. Dean
Vice President
Brotherhood of Locomotive Engineers
2151 East A Highway
Springfield, MO 65803 1996

Dear Mr. Dean:

This confirms the understanding reached relative to Article VII-ENHANCED EMPLOYMENT OPPORTUNITIES of the core agreement.

Specifically, we discussed the intent and meaning of the phrase 'deprived of employment'contained in Section I of said Article VII. We agreed that an engineer who meets all of the requirements of Article VII would not be deprived of the benefits contained therein by virtue of any exercise of seniority to which he was entitled pursuant to the BN/BLE Transfer Agreement dated November 1, 1990.

If this accurately reflects our understanding, please indicate your concurrence in the space provided for that purpose below.



Very truly yours,                                     I concur

John Fleps                                             R.E. Dean,
Vice President Labor Relations              Vice President







SIDE LETTER NO. 6

Mr. R. E. Dean
Vice President
Brotherhood of Locomotive Engineers
2151 East A Highway
Springfield, MO 65803 1996

Dear Mr. Dean:

This confirms the understanding reached relative to Paragraph (f) of Section 2-Vacation Benefits of Article V-BENEFITS ELIGIBILITY of the core agreement.

We agreed that engineers desiring to take one week of their vacation day at a time will so indicate on the appropriate form provided by the Carrier at the time when making application for the following years vacation.

If this accurately reflects our understanding, please indicate your concurrence in the space provided for that purpose below.



Very truly yours,                                          I concur

John Fleps                                                   R.E. Dean,
Vice President Labor Relations                    Vice President


Questions and Answers

Question No. 1 Does Jan. 1 anniversary date (applicable to vacations) apply to PL days?

Response - Yes.



Question No- 2 - Do PL days earned but not taken get paid upon retirement the same as vacation?


Response - Yes.

Question No. 3 - Will individuals who qualified for PL days in 1996 and who retire prior to Jan. 1, 1997 get paid for have their PL days they would had in 1997?

(Due to 1- 1 -97 effective date)


Response- No.


Question No. 4 - May the carrier allow taking of PL days on less than 48 hours notice?


Response - Yes, dependent on manpower availability at the time request is made.



Questions No. 5 - How does engineer advise carrier of desire to accumulate PL days?


Response - PL days not used in a calendar year will automatically be accumulated.


Question No. 6 - How many PL days may an Engineer accumulate?

Response - 60.



Question No. 7 - Assuming that an Engineer has accumulated PL days, if he resigns, retires or dies, will he or his estate be paid for the accumulated PL days?


Response - Yes



Question No. 8 - What rate of pay will be used for accumulated PL days?


Response- Payment will be at the rate of the last service performed.



Question No. 9 - Assuming that an Engineer has begun an extended leave just prior to a general wage increase, will all PL days taken be paid at the rate of the last service performed, or will the rate be increased when GWI goes into effect?


Response - Payment will be at the rate of the last service performed.


Question No. 10 - May the carrier unilaterally buy down an Engineer's accumulated PL days?


Response - No.



If you concur that the preceding accurately reflects our conference discussion, please indicate

so by signing and returning one copy of this letter.

Sincerely,

T. R. Murphy
General Chairman

D. L. McPherson
General Chairman

I CONCUR:

D. J. Kozak
Assistant Vice President Labor Relations