Case No. A ­ 8830

M E D I A T I O N A G R E E M E N T

THIS AGREEMENT, made this 27^th Day of January, 1972, by and between the participating carriers listed in Exhibit A, attached hereto and made a part hereof, and represented by the National Carriers' Conference Committee, and the employees of such carriers shown thereon and represented by

the United Transportation Union, witnesseth:

IT IS HEREBY AGREED:

ARTICLE I ­ WAGE INCREASES AND SPECIAL ADJUSTMENTS

(FOR OTHERS THAN DINING CAR STEWARDS AND YARDMASTERS)

Section 1 - First General Wage Increase

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 ­ 250,000 and less than 300,000 pounds

shall each first be increased by 5.0%, and shall next be increased by the equivalent of $2.56 per basic day, and then the rates as so increased shall be further increased by 4.0%. The sum of the three increases so produced shall be added to each standard basic daily or mileage rate of pay in effect

on December 31, 1969.

• 2­

Section 2 ­ Second General Wage Increase

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 ­ 250,000 and less than 300,000 pounds

Section 3 ­ Special Adjustments for Road Engineers, Road Firemen and Road Conductors

• 3­

Section 5 ­ Fourth General Wage Increase

Effective October 1, 1972, all standard basic daily and mileage rates of pay of employees represented by the UTU in effect on September 30, 1972, shall be increased by an amount equal to 5.0%, computed and applied for enginemen in the same manner as the second general wage increase provided under Section 2 above. The standard basic daily and mileage rates of pay

produced by application of this increase are set forth in Appendix 5, which is a part of this Agreement.

Section 6 ­ Fifth General Wage Increase

Effective January 1, 1973, all standard basic daily and mileage rates of pay of employees represented by the UTU in effect on December 31, 1972, shall be increased by the equivalent of .15 per hour or $1.20 per basic day. The standard basic daily and mileage rates of pay produced by application of this increase and the special adjustment provided for in Section 7 are set forth in Appendix 6, which is a part of this Agreement.

Section 7 ­ Special Adjustment ­ Groundmen Without a Mileage Component in Their Assignments, Who are Therefore Paid on a Daily Basis

Effective January 1, 1973, after application of the increase provided for in Section 6 above, standard basic daily rates of pay of yard conductors (foremen), yard brakemen (helpers), and switchtenders, and daily rates of freight conductors, brakemen and flagmen who are without a mileage component in their assignments and are therefore paid on a daily basis, shall be increased by an additional $1.00. The standard basic daily rates of pay produced by the application of the increase provided for in Section 6 and this special adjustment are set forth in Appendix 6, which is a part of this Agreement.

Section 8 ­ Sixth General Wage Increase

Effective April 1, 1973, all standard basic daily and mileage rates of pay of employees represented by the UTU in effect on March 31, 1973, shall be increased by the equivalent of .10 per hour or .80 per basic day. The standard basic daily and mileage rates of pay produced by application of this increase are set forth in Appendix 7, which is a part of this Agreement.

Section 9 ­ Application of Wage Increases

• 5­

All employees who had an employment relationship after December 31, 1969, shall receive the amounts to which they are entitled under this Article I regardless of whether they are now in the employ of the carrier except persons who prior to the date of this Agreement have voluntarily left the service of the carrier other than to retire or who have failed to respond to call­back to service to which they were obligated to respond under applicable rules agreements. Should any claims arise from persons coming under the exception, they must be filed with the carrier within 90 days of the date of this Agreement, in which case they will be disposed of in accordance with this Agreement without cost to the UTU.

ARTICLE II ­ WAGE INCREASES FOR DINING CAR STEWARDS AND YARDMASTERS

Effective April 1, 1971, after application of the increases of 5.0% effective January 1, 1970 and .32 per hour effective November 1, 1970 under Public Law 91­541, all basic monthly rates of pay of dining car stewards and yardmasters represented by the UTU in effect on March 31, 1971 shall be increased by 4.0%.

• 6­

The rates produced by such increase shall be further increased as follows:

Effective October 1, 1971 ­ 5.0%

Effective April 1, 1972 ­ 5.0%

Effective October 1, 1972 ­ 5.0%

Effective January 1, 1973 ­

Dining car stewards ­ $27.00 per month

Yardmasters ­ $30.00 per month

Effective April 1, 1973 ­

Dining car stewards ­ $18.00 per month

Yardmasters ­ $20.00 per month

This Article II is subject to the provisions of Section 9(k) ­ Coverage ­ of Article I of this Agreement.

ARTICLE III ­ VACATIONS

Insofar as applicable to employees represented by the United Transportation Union, the Vacation Agreement dated April 29, 1949, as amended, is further amended effective January 1, 1973, by substituting the following Section 1 for Section 1 as previously amended, substituting the following Section 2 for Section 2 as previously amended, and substituting the following

Section 9 for Section 9 as previously amended:

Section 1 (a) ­ Effective January 1, 1973, each employee, subject to the scope of schedule agreements held by the organizations signatory to the April 29, 1949 Vacation Agreement, will be qualified for an annual vacation of one week with pay, or pay in lieu thereof, if during the preceding calendar year the employee renders service under schedule agreements held by the organizations signatory to the April 29, 1949 Vacation Agreement amounting to one hundred sixty (160) basic days in miles or hours paid for, as provided in individual schedules.

Beginning with the effective date of the provisions of Article 3 of Agreement "A" dated September 25, 1950, May 25, 1951 or May 23, 1952, on an individual carrier, but not earlier than the year 1960, in the application of this Section 1(a) 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 1.3 days, and each basic day in all other services shall be computed as 1.1 days, for purposes of determining qualifications for vacations. (This is the equivalent of 120 qualifying days in a calendar year in yard service and 144 qualifying days in a calendar year in road service.) (See NOTE below.)

Beginning with the year 1960 on all other carriers, in the application of this Section 1(a) each basic day in all classes of service shall be computed as 1.1 days for purposes of determining qualifications for vacation. (This is the equivalent of 144 qualifying days.) (See NOTE below.)

• 7­

(b) ­ Effective January 1, 1973, each employee, subject to the scope of schedule agreements held by the organizations signatory to the April 29, 1949 Vacation Agreement, having two or more years of continuous service with employing carrier will be qualified for an annual vacation of two weeks with pay, or pay in lieu thereof, if during the preceding calendar year the employee renders service under schedule agreements held by the organizations signatory to the April 29, 1949 Vacation Agreement amounting to one hundred sixty (160) basic days in miles or hours paid for as provided in individual schedules and during the said two or more years of continuous service renders service of not less than three hundred twenty (320) basic days in miles or hours paid for as provided in individual schedules.

Beginning with the effective date of the provisions of Article 3 of Agreement "A" dated September 25, 1950, May 25, 1951 or May 23, 1952, on an individual carrier, but not earlier than the year 1960, in the application of this Section 1(b) 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 1.4 days, and each basic day in all other services shall be computed as 1.2 days, for purposes of determining qualifications for vacations. (This is the equivalent of 110 qualifying days in a calendar year in yard service and 132 qualifying days in a calendar year in road service.) (See NOTE below.)

Beginning with the year 1960 on all other carriers, in the application of this Section 1(b) each basic day in all classes of service shall be computed as 1.2 days for purposes of determining qualifications for vacation. (This is the equivalent of 132 qualifying days.) (See NOTE below.)

Beginning with the year 1960 on all other carriers, in the application of this Section 1© each basic day in all classes of service shall be computed as 1.3 days for purposes of determining qualifications for vacation. (This is the equivalent of 120 qualifying days.) (See NOTE below.)

• 9­

be computed as 1.3 days, for purposes of determining qualifications for vacations. (This is the equivalent of 100 qualifying days in a calendar year in yard service and 120 qualifying days in a calendar year in road service.) (See NOTE below.)

Beginning with the year 1960 on all other carriers, in the application of this Section 1(e) each basic day in all classes of service shall be computed as 1.3 days for purposes of determining qualifications for vacation. (This is the equivalent of 120 qualifying days.) (See NOTE below.)

NOTE: In the application of Section 1(a), (b), ©, (d) and (e), qualifying years accumulated, also qualifying requirements for years accumulated, prior to the effective date of the respective provisions hereof, for extended vacations shall not be changed.

• 10 ­

General

Yard Service

Combination of Yard and Road Service

Note: Section 2(b) applicable to yard service shall apply to yard, belt line and transfer service and combinations thereof, and to hostling service.

Section 9 ­ The terms of this agreement shall not be construed to deprive any employee of such additional vacation days as he may be entitled to receive under any existing rule, understanding or custom, which additional vacation days shall be accorded under and in accordance with the terms of such existing rule, understanding or custom. With respect to yard

• 12-

service employees, and with respect to any yard service employee having interchangeable yard and road rights who receives a vacation in yard service, such additional vacation days shall be reduced by 1/6^th.

ARTICLE IV ­ HOLIDAYS

Effective January 1, 1973, the existing rule covering pay for holidays, set forth in Article I of the Agreement of June 25, 1964, as amended, is hereby amended to designate Veterans Day as a ninth paid holiday and to add it to the list of enumerated holidays now provided in such Agreement, as amended.

ARTICLE V ­ JURY DUTY

When an employee is summoned for jury duty and is required to lose time from his assignment as a result thereof, he shall be paid for actual time lost with a maximum of a basic day's pay at the straight time rate of his position for each calendar day lost less the amount allowed him for jury service for each such day, excepting allowances paid by the court for meals, lodging or transportation, subject to the following qualification requirements and limitations:

ARTICLE VI ­ SWITCHING LIMITS

Existing agreements are amended to read as follows:

The employees involved, and the carriers represented by the National Carriers' Conference Committee, being desirous of cooperating in order to meet conditions on the various properties to the end that efficient and adequate switching service may be provided and industrial development facilitated, adopt the following:

• 13­

Section 1. Except as provided in Section 2 hereof, where an individual carrier not now having the right to change existing switching limits where yard crews are employed, considers it advisable to change the same, it shall give notice in writing to the General Chairman or General Chairmen of such intention, whereupon the carrier and the General Chairman or General Chairmen shall, within 30 days, endeavor to negotiate an understanding.

In the event the carrier and the General Chairman or General Chairmen cannot agree on the matter, the dispute shall be submitted to arbitration as provided for in the Railway Labor Act, as amended, within 60 days following date of last conference. The decision of the Arbitration Board will be made within 30 days thereafter. The award of the Board shall be final and binding on the parties and shall become effective thereafter upon seven days' notice by the carrier.

Section 2. Where, after the effective dates of the 1951 and 1952 Agreements, an industry locates outside of switching limits at points where yard crews are employed, the carrier may provide switching service to such industries with yardmen without additional compensation or penalties therefor to yard or road men, provided the switches governing movements from the main track to the track or tracks serving such industries are located at a point not to exceed four miles from the switching limits in effect as of the date of this Agreement. Other industries located between such switching limits and such new industries may also be served by yardmen without additional compensation or penalties therefor to road or yard men. Where rules require

that yard limits and switching limits be the same, the yard limit board may be moved for operating purposes but switching limits shall remain unchanged unless and until changed in accordance with rules governing changes in switching limits.

The yard conductor (foreman) or yard conductors (foremen) involved shall keep account of and report to the carrier daily on form provided the actual time consumed by the yard crew or crews outside of the switching limits in serving the industry in accordance with this Section 2 and a statement of such time shall be furnished the General Chairman or General Chairmen representing yard and road crews by the carrier each month. Unless some other plan for equalization of time is agreed to by the General Chairman or General Chairmen representing yard and road crews, the carrier shall periodically advertise to road service employees the opportunity to work in yard service, under yard rules and conditions, on assignments as may be mutually agreed upon by the local representatives of the employees involved, for a period of time sufficient to offset the time so consumed by yard crews outside the switching limits. In the event such local representatives fail to agree, the carrier will designate such assignments but shall not be subject to penalty claims because of doing so. Such equalization of time shall be

apportioned among employees holding seniority as road conductors or road brakemen in the same ratio as the accumulated hours of yard conductors (foremen) and yard brakemen (helpers). In the event no road employee elects to bid on the accumulated equalizing hours within the bulletined period such accumulation of equalizing hours will be considered forfeited and a new accumulating period shall commence.

• 14­

Section 3. This Agreement shall in no way affect the changing of yard or switching limits at points where no yard crews are employed.

Section 4. The foregoing is not intended to amend or change existing agreements involving predominantly full­time switching service performed solely by road crews at industrial parks located within the 4­mile limit referred to in Section 2 hereof that have been negotiated on individual properties since the National Agreements of 1951 and 1952.

This rule shall become effective 15 days after the date of this Agreement except on such carriers as may elect to preserve existing rules or practices and so notify the authorized employee representatives on or before such effective date.

ARTICLE VII ­ INTERCHANGE

Section 1. At points where yard crews are employed, road freight crews may be required to receive their over­the­road trains from a connecting carrier or deliver their over­the­road trains to a connecting carrier provided such trains are solid trains which move from one carrier to another intact with or without motive power and/or caboose.

Section 2. If road crews referred to in Section 1 of this Article VII are not required to return or deliver their motive power and/or their cabooses to or from their on or off duty points an alternate means of transportation will be provided.

Section 3. At designated interchange points, if a carrier does not now have the right to specify additional interchange tracks it may specify such additional track or tracks as the carrier deems necessary providing such additional track or tracks are in close proximity. Bulletins specifying additional tracks will be furnished the General Chairman or General Chairmen involved prior to the effective date.

Section 4. If the number of cars being delivered to or received from interchange tracks of a connecting carrier exceeds the capacity of the first track used, it will not be necessary that any one interchange track be filled to capacity before use is made of an additional track or tracks provided, however, the minimum number of tracks necessary to hold the interchange will be used.

Section 5. Crews used in interchange service may be required to handle interchange to and from a foreign carrier without being required to run "light" in either direction.

• 15­

Work equities between carriers previously established by agreement, decision or practice will be maintained with the understanding that such equity arrangements will not prevent carriers from requiring crews to handle cars in both directions when making interchange movements. Where carriers not now using yard and transfer crews to transfer cars in both directions desire to do so, they may commence such service and notify the General Committees of the railroad involved thereof to provide an opportunity to the General Committees to resolve any work equities between the employees of the carriers involved. Resolution of work equities shall not interfere with the operations of the carriers or create additional expense to the carriers. It is agreed, however, that the carriers will cooperate in providing the committees involved with data and other information that will assist in resolution of work equities.

Section 6. The foregoing provisions are not intended to impose restrictions with respect to interchange operation where restrictions did not exist prior to the date of this Agreement.

This rule shall become effective 15 days after the date of this Agreement except on such carriers as may elect to preserve existing rules or practices and so notify the authorized employee representatives on or before such effective date.

ARTICLE VIII ­ USE OF COMMUNICATION SYSTEMS

Section 1. It is recognized that the use of communication systems including the use of and the carrying of portable radios, pursuant to operating rules of the individual carriers, is a part of the duties of employees covered by this Agreement. Existing rules to the contrary are hereby eliminated.

Section 2. On roads where rules now exist which provide for the payment of arbitraries to employees for the carrying and/or use of radio equipment, such arbitraries will be eliminated effective January 1, 1973.

Section 3. Portable radios hereafter purchased for the use of and carried by ground service employees in yard and transfer service will not exceed three pounds in weight and will be equipped with a suitable holder which will firmly hold the radio close to the body, or will be of such size as to permit being placed in coat or trouser pockets. Portable radios used by ground service employees in yard and transfer service which do not meet the foregoing specifications will be replaced by December 31, 1973 or their use discontinued.

Section 4. The size and weight of portable radios used by ground service employees in road service will not exceed that presently in use and portable radios hereafter purchased for use in this class of service will be of the minimum size and weight necessary to insure safe and adequate communication. This is not intended to require the purchase of radios weighing less than three pounds.

• 16­

Section 5. Employees will not be held responsible for accidents caused by failure of radio equipment to properly function.

Section 6. At locations where radio is used sufficient frequency channels will be utilized to provide safe communication.

ARTICLE IX ­ ROAD­YARD MOVEMENTS

Section 1. Road freight crews may be required at any point where yard crews are employed to do any of the following as part of the road trip, paid for as such without any additional compensation and without penalty payments to yard crews, hostlers, etc.: one straight pick up at another yard in the initial terminal (in addition to picking up train) and one straight set out at another yard in the final terminal (in addition to yarding the train); pick up and/or set out at each intermediate point between terminals; switch out defective cars from their own trains regardless of when discovered; handle engines to and from train to ready track and engine house including all units coupled and connected in multiple; pick up and set out cars of their trains from or to the minimum number of tracks which could hold the cars provided, however, that where it is necessary to use two or more tracks to hold the train it is not required that any track be filled to capacity; and exchange engine of its own train.

Section 2. The foregoing is not intended to impose restrictions with respect to any operation where restrictions did not exist prior to the date of this Agreement. There will be no change in work permitted or compensation paid to combination assignments, such as mine runs, tabulated assignments, etc.

This rule shall become effective 15 days after the date of this Agreement except on such carriers as may elect to preserve existing rules or practices and so notify the authorized employee representatives on or before such effective date.

ARTICLE X ­ COMBINING ROAD AND YARD SENIORITY

Seniority rosters of trainmen and yardmen shall be combined on a topped and bottomed basis. Where two or more existing yard seniority rosters are to be combined with an existing road seniority roster such yard rosters will be dovetailed with yardmen maintaining prior rights in their respective yards prior to being topped and bottomed with the road roster. All men on

the combined seniority rosters shall have rights to both road and yard assignments. Existing road service men shall have prior rights to road assignments and existing yard service men shall have prior rights to yard service assignments. All employees hired after the date of the combination of the seniority rosters shall establish joint road and yard seniority.

• 17­

ARTICLE XI ­ EXPENSES AWAY FROM HOME

Section 1. Effective on the date of this Agreement, Article II (Expenses Away From Home) of the June 25, 1964 Agreement is amended to cover men in train, engine or yard service called from the extra board or used in the capacity of an extra man to fill vacancies at outlying points subject to the following additional conditions:

Section 2. Effective 15 days after the date of this Agreement the meal allowance provided for in Article II, Section 2 of the June 25, 1964 National Agreement is increased from $1.50 to $2.00, and an additional $2.00 meal allowance will be provided after being held an additional 8 hours.

ARTICLE XII ­ INTERDIVISIONAL SERVICE

NOTE: As used in this Agreement, the term interdivisional service includes interdivisional, interseniority district, intradivisional and/or intraseniority district service.

An individual carrier may establish interdivisional, interseniority district, intradivisional or intraseniority district service, in freight or passenger service subject to the following procedure.

Section 1. With respect to runs which do not operate through a home terminal or home terminals of previously existing runs which are to be extended the carriers may proceed as follows:

• 18­

Section 2. With respect to runs which an individual carrier proposes to operate through a home terminal or home terminals of the run or runs it proposes to extend pursuant to this Article, the following procedures will be followed:

conditions, consistent with the minimum requirements of Section 3 of this article, to be included in such a rule. If agreement is not reached by those representatives within 90 days of the notice of

intent, the matter will be referred to a Task Force for final and binding determination of such conditions.

The Task Force shall consist of 1 member to be appointed by the management of the individual carrier, 1 member appointed by the organization and 1 neutral member to be appointed by the National Mediation Board. The decision of this Task Force prescribing the conditions under which such runs may be established consistent with the minimum requirements of Section 3 of this Article shall be made within 180 days of this notice of intent.

In its decision the Task Force shall include among other matters decided the provisions set forth in Article XIII of this Agreement for protection of employees adversely affected as a result of the discontinuance of any existing runs or the establishment of new runs resulting from application of this rule, and in addition may give consideration to whether or not such rule should contain a provision that special allowances to home owners should be included because of moving to comparable housing in a higher cost real estate area.

Section 3. Reasonable and practical conditions shall govern the establishment of the runs described above including but not limited to the following:

Section 4. Interdivisional, interseniority district, intradivisional or intraseniority district service in effect on the date of this Agreement is not affected by this rule.

Section 5. The foregoing provisions are not intended to impose restrictions with respect to establishing interdivisional, interseniority district, intradivisional or intraseniority district service where restrictions did not exist prior to the date of this Agreement.

This Article shall become effective 15 days after the date of this Agreement except on such carriers as may elect to preserve existing rules or practices and so notify the authorized employee representatives on or before such effective date.

ARTICLE XIII ­ PROTECTION OF EMPLOYEES

The scope and purpose of this Article XIII are to provide, to the extent specified herein, for fair and equitable arrangements to protect the interests of certain of the carriers' employees represented by the United Transportation Union who are adversely affected by the application of

• 21-

Article VII ­ Interchange, Article IX ­ Road­Yard Movements, and Article XII ­ Interdivisional Service of this Agreement; therefore, fluctuations and changes in volume or character of employment brought about by other causes are not within the purview of this Article.

Section 1. Definitions.

Wherever used in this Article, unless the context requires otherwise:

Section 2. Coverage.

• 23-

Section 3. Displacement Allowance.

• 24-

Section 4. Dismissal Allowances.

Section 5. Separation Allowance.

A Dismissed Employee entitled to protection under this Article, may, at his option within 7 days of his dismissal, resign and (in lieu of all other benefits and protections provided in this Article) accept a lump sum payment computed in accordance with Section 9 of the Washington Job Protection Agreement of May, 1936.

• 25-
  

Section 6. Fringe Benefits.

No employee of a carrier who is affected by an Implementation shall be deprived during his Protective Period of benefits attached to his previous employment, such as free transportation, hospitalization, pensions, relief, et cetera, under the same conditions and so long as such benefits continue to be accorded to other employees of the carrier, in active service or on furlough as the case may be, to the extent that such benefits can be so maintained under present authority of law or corporate action or through future authorization which may be obtained.

Section 7. Seasonal Fluctuations and Declines in Business.

Section 8. Arbitration of Disputes.

• 26-

one member of the committee and the members thus chosen shall select a neutral member who shall serve as chairman. If any party fails to select its member of the arbitration committee within the prescribed time limit, the general chairman of the UTU or the highest officer designated by the carrier, as the case may be, shall be deemed the selected member, and the committee shall then function and its decision shall have the same force and effect as though all parties had selected their members. Should the members be unable to agree upon the appointment of the neutral member within 10 days, the parties shall then within an additional 10 days endeavor to agree upon a method by which a neutral member shall be appointed, and, failing such agreement, either party may request the National Mediation Board to designate within 10 days the neutral member whose designation will be binding upon the parties.

Section 9.

Any Displaced Employee required to change his residence because of the Implementation of Article XII ­ Interdivisional Service shall receive the benefits contained in Sections 10 and 11 of the Washington Job Protection Agreement except that he will be allowed 5 working days instead of "two working days" as provided in Section 10 of said Agreement, and in addition to such benefits shall receive a transfer allowance of $400.00. The National Mediation Board is substituted for the Interstate Commerce Commission in Section 11(d) of said Agreement. Change of residence shall not be considered "required" if the reporting point to which the employee is changed is not more than 30 miles from his former reporting point.

Section 10.

If any protective benefits greater than those provided in this Article are available under existing agreements, such greater benefits shall apply subject to the terms, conditions, responsibilities and obligations of both the carrier and employee under such agreements, in lieu of the benefits provided in this Article. There shall be no duplication or pyramiding of benefits to any employees.

• 27-

ARTICLE XIV ­ STANDING COMMITTEE

It is hereby agreed that the parties signatory to this Agreement will establish within 60 days of the date of this Agreement a Standing Committee as proposed by Emergency Board No. 178 consisting of two partisan members representing the Carriers, two partisan members representing the Organization and a disinterested Chairman.

If the partisan members of the Standing Committee cannot agree on the Chairman within the 60­day period, the partisan members shall request the Chairman of the National Mediation Board and/or the Secretary of Labor to confer with the members and within 90 days of the date of this Agreement select such disinterested Chairman. The Standing Committee, as so constituted, shall determine the procedures under which it will operate, with the understanding such procedures will not include arbitration procedures unless agreed upon by the partisan members of the Standing Committee.

The life of the Standing Committee shall extend over the terms of this Agreement, at which time it will be terminated unless continued by mutual agreement of the partisan members. The Standing Committee may be terminated at any time by mutual agreement of the partisan members.

The following items shall be considered by the Committee:

ARTICLE XV ­ GENERAL PROVISIONS

Section 1 ­ Court Approval

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

Section 2 ­ Effect of This Agreement

upon the carriers listed in Exhibit A by the UTU (E­C­T­S) dated on or about October 20, 1969 and November 20, 1969 and proposals served by the carriers for concurrent handling therewith.

industries

and/or intraseniority district service

SIGNED AT WASHINGTON, D. C., THIS 27^TH DAY OF JANUARY, 1972.

FOR THE PARTICIPATING CARRIERS FOR THE EMPLOYEES REPRESENTED BY

LISTED IN EXHIBIT A: THE UNITED TRANSPORTATION UNION:

William H. Dempsey, Chairman Al H. Chesser

C. A. Ball C. F. Lane

F. K. Day, Jr. J. W. Jennings

T. C. DeButts Q. C. Gabriel

G. L. Farr W. R. Meyers

J. J. Maher

C. E. Mervine, Jr.

Earl Oliver

O. H. Osborn

George S. Paul

G. M. Seaton, Jr.

WITNESS:

/s/ George S. Ives

Chairman

National Mediation Board

NATIONAL RAILWAY LABOR CONFERENCE LETTERHEAD

January 27, 1972

Mr. Al H. Chesser, President

United Transportation Union

15401 Detroit Avenue

Cleveland, Ohio 44107

Dear Mr. Chesser:

We have received from the Pay Board a copy of the resolution of the Board respecting the wage increases provided for in the agreement executed January 27, 1972, by the UTU and the carriers. The Pay Board, in approving the 1972 increases, advised that prenotification by the carriers should contain a showing that the work rules changes "are being implemented in accordance with the applicable provisions of the agreement." We will, of course, see to it that there is proper prenotification, and we will join with the UTU in supplying whatever information may be required to satisfy the Board's condition.

As to the 1973 wage package which is within the Board's current guidelines and as to which the Board has not attached any such conditions, we will prenotify and submit to the Board whatever documents may be required.

Yours very truly,

EXECUTIVE OFFICE OF THE PRESIDENT

PAY BOARD

Washington, D.C. 20508

January 25, 1972

Dear Mr. Dempsey:

This is to inform you that on January 25, 1972, the Pay Board adopted the

following resolution:

Resolved:

Sincerely,

NATIONAL RAILWAY LABOR CONFERENCE LETTERHEAD

January 27, 1972

Mr. Al H. Chesser, President

United Transportation Union

15401 Detroit Avenue

Cleveland, Ohio 44107

Dear Mr. Chesser:

Proposals I and J of Attachment "A" to the Section 6 Notices served by the Carriers for concurrent handling with the UTU proposals of November 20, 1969, are hereby withdrawn without prejudice to the rights or liabilities of either party in regard to the unilateral promulgation of these proposals on certain Carriers on or after July 16, 1971.

Withdrawal of these proposals by the Carriers will not prejudice or jeopardize the position of any of the parties in the handling of Section 6 Notices Nos. 1 and 3 served on the Carriers by the then Brotherhood of Locomotive Firemen and Enginemen (now the United Transportation Union (E)) on or about November 15, 1965, and Carrier proposals served for handling concurrently therewith.

Yours very truly,

ACCEPTED:

/s/ Al H. Chesser

NATIONAL RAILWAY LABOR CONFERENCE LETTERHEAD

January 27, 1972

Mr. Al H. Chesser, President

United Transportation Union

15401 Detroit Avenue

Cleveland, Ohio 44107

Dear Mr. Chesser:

This will confirm our understanding that the increase in rates of pay effective April 1, 1971, provided by Section 1 of Article I of the Agreement of January 27, 1972, and as set forth in Appendix I thereto, shall not in any way affect the positions or rights of the parties with respect to the rates and basis of pay in effect during the period of the promulgation and

implementation of the Carriers' work rules between 6:00 a.m. July 16, 1971, local time, and 12:01 p.m. August 2, 1971, except that the 4% increase effective April 1, 1971 will apply to the promulgated rates of pay.

Yours very truly,

ACCEPTED:

/s/ Al H. Chesser

NATIONAL RAILWAY LABOR CONFERENCE LETTERHEAD

January 27, 1972

Mr. A. H. Chesser, President

United Transportation Union

15401 Detroit Avenue

Cleveland, Ohio 44107

Dear Mr. Chesser:

In accordance with our understanding, this is to confirm that the carriers will make all reasonable efforts to make the retroactive increase payments provided for in the Agreement signed today as soon as possible.

If a carrier finds it impossible to make the permissible retroactivity payments within sixty days, it is understood that such carrier will notify you in writing as to why such payments have not been made and indicate when it will be possible to make such retroactive payments.

Yours very truly,

NATIONAL RAILWAY LABOR CONFERENCE LETTERHEAD

January 27, 1972

Mr. Al H. Chesser, President

United Transportation Union

15401 Detroit Avenue

Cleveland, Ohio 44107

Dear Mr. Chesser:

This has reference to the Letters of Understanding with the former ORC&B, BLF&E and B of RT in connection with the application of "the additional $.40" increase in daily rates provided for in the last previous agreements. The paragraph in those letters of understanding dealing with the application of "the additional $.40" generally reads as follows:

"It is intended that the daily rate increase of 'an additional $.40' will apply, on each individual railroad, to the rates of pay of conductors, flagmen and brakemen employed in the types of road service in which on such railroad holiday pay under Article I, Section 2 of the Agreement of June 25, 1964 is presently applied. Such increase will not apply to any type of passenger service."

This is to advise that the word "presently" as underlined above was not intended to preclude the application of "the additional $.40" to any employee represented by your organization who became eligible for holiday pay under the provisions of Article 1, Section 2 of the June 25, 1964 Agreement by reason of developments subsequent to the dates of such Letters of Understanding.

Yours very truly,

ACCEPTED:

/s/ Al H. Chesser

NATIONAL RAILWAY LABOR CONFERENCE LETTERHEAD

January 27, 1972

Mr. Al H. Chesser, President

United Transportation Union

15401 Detroit Avenue

Cleveland, Ohio 44107

Dear Mr. Chesser:

This has reference to Article XI ­ Expenses Away From Home ­ of the Agreement signed today.

It is understood that if an extra man used to fill a vacancy at an outlying point, who comes within the operation of Article XI, after completing a tour of duty is held over for a second tour of duty which is to commence more than four hours after the completion of his first tour of duty, he will be provided lodging or an allowance in lieu thereof under Article II, Section 1 of the June 25, 1964 Agreement. He will continue to be provided such lodging or allowances (but not more than one such allowance for each 24­hour period at the outlying point) if he is thereafter so held over for one or more subsequent tours of duty.

Yours very truly,

ACCEPTED:

/s/ Al H. Chesser

NATIONAL RAILWAY LABOR CONFERENCE LETTERHEAD

January 27, 1972

Mr. A. H. Chesser, President

United Transportation Union

15401 Detroit Avenue

Cleveland, Ohio 44107

Dear Mr. Chesser:

It is understood and agreed that Article X of the Agreement of January 27, 1972,

Combining Road and Yard Seniority, requires implementing agreements on the individual

railroads.

Yours very truly,

EXHIBIT A

RAILROADS REPRESENTED BY THE NATIONAL CARRIERS' CONFERENCE COMMITTEE IN CONNECTION WITH NOTICES, DATED ON OR ABOUT OCTOBER 20 AND NOVEMBER 20, 1969, SERVED BY THE GENERAL CHAIRMEN, OR OTHER RECOGNIZED REPRESENTATIVES, OF THE UNITED TRANSPORTATION UNION (E), ©, (T) AND (S), OF DESIRE TO CHANGE AGREEMENTS TO THE EXTENT INDICATED IN ATTACHMENTS NOS. 1 THERETO, AND PROPOSALS SERVED BY THE RAILROADS FOR CONCURRENT HANDLING THEREWITH.

Subject to indicated footnotes, this authorization is co­extensive with notices filed and with provisions of current schedule agreements applicable to employees represented by the United Transportation Union (E), ©, (T) and/or (S), as indicated by "x" inserted in

the appropriate column(s) below:

UNITED TRANSPORTATION UNION

RAILROADS (E) © (T) (S)

Akron and Barberton Belt RR x x

Akron, Canton and Youngstown RR x x

Alton and Southern Railway x x

Ann Arbor Railroad x x

Atchison, Topeka & Santa Fe RY x x x

Atlanta and West Point RR ­ x x x

The Western Railway of Alabama

Atlanta Joint Terminals x x

Baltimore and Ohio Railroad 1­x 2­3­x 3­x

Baltimore and Ohio Chicago Terminal RR x x

Bangor and Aroostook Railroad x x

Bauxite and Northern Railway x x

Belt Railway Company of Chicago x

Bessemer and Lake Erie Railroad x x

Birmingham Southern Railroad x

*Boston and Maine Corporation x x

Brooklyn Eastern District Terminal x

Buffalo Creek Railroad x x

Burlington Northern, Inc. 4­x 5­x 4­x 6­x

Butte, Anaconda and Pacific RY x x

Camas Prairie Railroad 7­x x x x

Canadian National Railways,

Great Lakes Region, Lines in the

United States x

St. Lawrence Region, Lines in the

United States x

Central of Georgia Railway x x x x

*Central RR Company of New Jersey x x

Central Vermont Railway, Inc x x

Chesapeake and Ohio Railway x x x

Chicago and Eastern Illinois RR x x

Chicago and Illinois Midland RY x x

Chicago and Western Indiana Railroad x x

PAGE 2 EXHIBIT A

UNITED TRANSPORTATION UNION

RAILROADS (E) © (T) (S)

Chicago, Milwaukee, St. Paul and

Pacific Railroad x x x

Chicago Produce Terminal Company x

Chicago River and Indiana Railroad x

Chicago, Rock Island and Pacific RR x x x

Chicago Short Line Railway x x

Chicago South Shore and South Bend RR x 8­x

Chicago Union Station Company x

Chicago, West Pullman and Southern RR x x

Cincinnati Union Terminal Company x x

Clinchfield Railroad 9­x 9­x 9­x 9­x

Colorado and Southern Railway x x

Columbia and Cowlitz Railway x x

Davenport, Rock Island and North

Western Railway x x

Delaware and Hudson Railway x x x

Denver and Rio Grande Western RR x x x x

Des Moines Union Railway x x

Detroit and Toledo Shore Line RR x x

Detroit Terminal Railroad x

Detroit, Toledo and Ironton Railroad x x

Duluth, Missabe and Iron Range RY x 10­x x

Duluth, Winnipeg and Pacific RY x x

East St. Louis Junction Railroad x x

Elgin, Joliet and Eastern Railway x

Erie Lackawanna Railway x x

Fort Worth and Denver Railway x x x

Galveston, Houston and Henderson RR x x

Galveston Wharves x

Georgia Railroad x x

Grand Trunk Western Railroad 11­x x x

Green Bay and Western Railroad x x

Gulf, Mobile and Ohio Railroad x x x

Houston Belt and Terminal Railway x

Illinois Central Railroad x x x

Illinois Northern Railway x x

Illinois Terminal Railroad x x

Indiana Harbor Belt Railroad x x

Indianapolis Union Railway x x

Jacksonville Terminal Company x x

Joint Texas Division of CRI&P­FW&D RY x x x

Kansas City Southern Railway x x x

Kansas City Terminal Railway x x x

Kentucky and Indiana Terminal Railroad x x

Lake Superior Terminal and Transfer RY x x

Lake Terminal Railroad x

Lehigh and Hudson River Railway x x

Lehigh and New England Railway x x x

PAGE 3 EXHIBIT A

UNITED TRANSPORTATION UNION

RAILROADS (E) © (T) (S)

*Lehigh Valley Railroad x x x

Longview, Portland and Northern RY x x

Los Angeles Junction Railway x 12­x x

Louisiana and Arkansas Railway x x 13­x

Louisville and Nashville Railroad 14­x x x

Maine Central Railroad x x x

Portland Terminal Company x x

Manufacturers Railway x x

McKeesport Connecting Railroad x

Minneapolis Eastern Railway x

Minneapolis, Northfield and Southern RY x x

Minnesota, Dakota and Western Railway 15­x x

Minnesota Transfer Railway x x

Missouri­Kansas­Texas Railroad x x x

Missouri Pacific Railroad x x x

Missouri­Illinois Railroad x x 9­x

Monongahela Railway x x x

Montour Railroad x x

Newburgh and South Shore Railway x

New Orleans Public Belt Railroad x x

New Orleans Union Passenger Terminal x x

New York and Long Branch Railroad x

New York, Susquehanna and Western RR x x x

Norfolk and Portsmouth Belt Line RR x

Norfolk Southern Railway x x x

including Sandusky Line; x x x

Lines of Former New York, Chicago

& St. Louis RR; x x x

Lines of former Pittsburgh & West

Virginia Ry.; x x

Lines of Former Wabash RR., East and

West of Detroit x x x

Northampton and Bath Railroad x x

Northwestern Pacific Railroad x x

Ogden Union Railway and Depot Company x x

Oregon, California and Eastern RY x x

*Penn Central Transportation Company 16­x 17­x 18­x

Pennsylvania­Reading Seashore Lines x x

Peoria and Pekin Union Railway x x

Pittsburgh & Shawmut Railroad x x

Pittsburgh and Lake Erie Railroad,

including Lake Erie and Eastern RR x x x

Pittsburgh Chartiers & Youghiogheny RY x x

PAGE 4 EXHIBIT A

UNITED TRANSPORTATION UNION

RAILROADS (E) © (T) (S)

Portland Terminal Railroad Company x x

Port Terminal Railroad Association x x

Quanah, Acme and Pacific Railway x x

*Reading Company x x x

Richmond, Fredericksburg and Potomac

Railroad, including Potomac Yard x x

St. Joseph Terminal Railroad x x

St. Louis­San Francisco Railway x x x

Northeast Oklahoma District x

Alabama, Tennessee & Northern Dist. x x

St. Louis Southwestern Railway x x

Saint Paul Union Depot Company 7­x 7­x

San Diego and Arizona Eastern RY x x

Seaboard Coast Line Railroad x x x

Soo Line Railroad x x x

Southern Pacific Transportation Company,

Pacific Lines 19­x x x 20­x

Texas and Louisiana Lines x x 21­x x

Southern Railway x x x

Harriman & Northeastern Railway x x x

Georgia Southern and Florida RY x x x

New Orleans Terminal Company x x

St. Johns River Terminal Company x x

South Omaha Terminal Railway x x

Spokane International Railroad x x x

Staten Island Railroad Corporation x

Terminal RR Association of St. Louis x x

Texas and Pacific Railway 22­x 22­x 22­x

Fort Worth Belt Railway x

New Orleans and Lower Coast RR x x

Texas­New Mexico Railway x

Texas Mexican Railway x x

Texas Pacific­Missouri Pacific Terminal

Railroad of New Orleans x

Toledo, Peoria and Western Railroad x x

Toledo Terminal Railroad x

Union Pacific Railroad x x x

Union Terminal Company (Dallas) x

Union Terminal RY ­ St. Joseph Belt RY x x

Washington Terminal Company x x

Western Maryland Railway x x

Western Pacific Railroad x x x

Wichita Terminal Association x x

Youngstown and Northern Railroad x

Youngstown and Southern Railway x

PAGE 5 EXHIBIT A

NOTES: ­

* ­ Subject to approval of the Courts.

1 ­ Authorization also covers Engineers and Firemen on the Strouds

Creek and Muddlety Territory and the Curtis Bay Railroad

2 ­ Authorization also covers Conductors and Trainmen on the Strouds

Creek and Muddlety Territory.

3. ­ Authorization also covers Conductors and Trainmen on the BR&P Territory.

4. ­ Item D of the Carrier's counterproposals was not served on the

organization covering employees of the former King Street

Passenger Station and the former Northern Pacific Railway.

5. ­ Item D of the Carrier's counterproposals was not served on the

organization covering employees of the former Northern Pacific Railway.

6. ­ Authorization covers only employees of the former Great Northern Railway.

7. ­ Carrier did not serve Item D of counterproposals on the organization.

8. ­ Authorization is confined to the negotiation of the November 20, 1969 notice.

(The notice served on the Carrier by the organization was dated November 26, 1969.)

9. ­ Organization did not serve the November 20, 1969 notice on the Carrier.

10. ­ Authorization covers Outside Terminal Yard Conductors in addition to

Road Conductors on the Carrier's Missabe Division.

11. ­ Authorization applies only to one engineer on the former MR&N

Railroad, Muskegon, Michigan.

12. ­ Authorization covers Yardmasters, only.

13. ­ Authorization applies to Brakemen on Texas Subdivision, Yardmen at

Greenville, Texas and New Orleans, Louisiana, and Engine Foremen

at Baton Rouge, Louisiana.

14. ­ Authorization covers the Monon Division, only.

15. ­ Both notices served by the organization on the Carrier on December 8, 1969.

16. ­ Authorization includes Engineers on Canada Division but does not include

Firemen and Hostlers on the Louisville and Jeffersonville Bridge and Railroad.

17. ­ Authorization includes Road Conductors on the former New York

Central Railroad only, except on the Canada Division.

18. ­ Authorization includes Road Conductors on the Canada Division;

Yardmasters on the Canada Division, and employees of the former

New York, New Haven and Hartford Railroad.

19. ­ Authorization includes former El Paso & Southwestern System and

Nogales, Arizona, Yard.

20. ­ Authorization includes former El Paso & Southwestern System.

21. ­ Authorization excludes Dining Car Stewards.

22. ­ Authorization includes the former Kansas, Oklahoma and Gulf Railway.

FOR THE CARRIERS: FOR THE UNITED TRANSPORTATION UNION:

/s/ William H. Dempsey /s/ C. F. Lane

Washington, D.C.,

January 27, 1972

NATIONAL RAILWAY LABOR CONFERENCE LETTERHEAD

October 31, 1973

Mr. Al H. Chesser

President

United Transportation Union

15401 Detroit Avenue

Cleveland, Ohio 44107

Dear Mr. Chesser:

This will confirm our understanding that the preamble paragraph of Article III ­ Vacations of the January 27, 1972 Agreement, Mediation Case No. A­8830, should read as follows:

"Insofar as applicable to employees represented by the United Transportation Union, the Vacation Agreement dated April 29, 1949, as amended, is further amended effective January 1, 1973, by substituting the following Section 1 for Section 1 as previously amended, substituting the following Section 2 for Section 2 as previously amended, and substituting the following amended Section 9:"

and that Section 9, referred to in such paragraph, should read as follows:

"Section 9 ­ The terms of this agreement shall not be construed to deprive any employee of such additional vacation days as he may be entitled to receive under any existing rule, understanding or custom, which additional vacation days shall be accorded under and in accordance with the terms of such existing rule, understanding or custom.

"Beginning on the date Agreement "A" dated September 21, 1950, May 25, 1951, or May 23, 1952, became or becomes effective on any carrier, such additional vacation days shall be reduced by 1/6^th with respect to yard service employees and with respect to any yard service employee having interchangeable yard and road rights who receives a vacation in yard service."

Yours very truly,

ACCEPTED:

___________________

NATIONAL RAILWAY LABOR CONFERENCE LETTERHEAD

November 7, 1973

Mr. Al H. Chesser

President

United Transportation Union

15401 Detroit Avenue

Cleveland, Ohio 44107

Dear Mr. Chesser:

Section 9 of Article III ­ Vacations of the January 27, 1972 Agreement reads as follows:

"Section 9 ­ The terms of this agreement shall not be construed to deprive any employee of such additional vacation days as he may be entitled to receive under any existing rule, understanding or custom, which additional vacation days shall be accorded under and in accordance with the terms of such existing rule, understanding or custom. With respect to yard service employees, and with respect to any yard service employee having interchangeable yard and road rights who receives a vacation in yard service, such additional vacation days shall be reduced by 1/6^th." (Underscoring added)

I understand that the underscored portion of Section 9 quoted above, was added to that Section of the operating employees Vacation Agreement dated April 29, 1949 as a result of the five­day work week provisions and that its application was circumscribed to the effectuation of the five­day work week. For some reason, in the National Agreements entered into in 1953­1954, the language in question was not associated with Section 9 but, rather, was includ­

ed as a part of Section 2 of the Vacation Agreement. This continued to be the case until the January 27, 1972 Agreement was negotiated at which time the language once again was, made a part of Section 9 of the Vacation Agreement. Through an apparent oversight, however, its application was not circumscribed to the effectuation of the five­day work week.

We believe that the attached letter of understanding will correct this oversight. If you agree, will you please sign the attached copy of this letter and return it to me for my file.

Yours very truly,