MEMORANDUM OF AGREEMENT

BETWEEN

SOUTHERN PACIFIC TRANS. CO.
(WESTERN LINES) (including FORMER EP&SW)
SOUTHERN PACIFIC TRANSPORTATION COMPANY
(EASTERN LINES)
SOUTHERN PACIFIC TRANSPORTATION COMPANY
(FORMER PACIFIC ELECTRIC)
ST. LOUIS SOUTHWESTERN RAILWAY COMPANY DENVER & RIO GRANDE WESTERN RAILROAD COMPANY AND THEIR ENGINEERS REPRESENTED BY

BROTHERHOOD OF LOCOMOTIVE ENGINEERS

* * * * * * * * * *

IT IS AGREED:

ARTICLE 1

For purposes of this Agreement, the term "1991 National Agree-ment" shall mean the changes in rates of pay, rules and working conditions which result from the process involving Emergency Board 219 and the Special Board established pursuant to Public Law 102-29, either imposed and/or as agreed between the Brother-hood of Locomotive Engineers and the National Carriers' Confer-ence Committee.

ARTICLE 2

The Gain-Sharing Agreement appearing as Side Letter #5 hereto shall become part of this Agreement subject to ratification.

ARTICLE 3

(a) The lump sum payments (including the $2,000 lump sum upon signing) and general wage increases specified for the period July 1, 1991 through January 1, 1995 in the 1991 National Agreement will not apply to engineers employed by a Carrier signatory to this Agreement. The parties recognize the restoration of rates of pay provided by Article 11(a) of this Agreement.

(b) The changes in the miles encompassing the basic day in through freight and through passenger service and the threshold of overtime contained in the 1991 National Agreement will not apply to engineers employed by a Carrier signatory to this Agreement. The 108-mile basis of pay and overtime divisors for through freight and passenger service contained in Article IV, Section 2(a), of the May 19, 1986 Award of Arbitration Board No. 458 shall continue to be applicable to engineers employed by a Carrier signatory to this Agreement. The two preceding sentences notwithstanding, the parties recognize the basis of pay and threshold of overtime contained in the 1991 National Agreement are subject to becoming applicable to engineers employed by a Carrier signatory to this Agreement pursuant to Article 11(a) of this Agreement.

ARTICLE 4

The parties hereby recognize the continuation of the Railroad Employes National Health and Welfare Plan ("The Plan") and the Early Retirement Major Medical Benefit Plan ("ERMA") as set forth in the 1991 National Agreement. The parties agree, however, that the provisions concerning the use of up to one-half of the lump sum payments to be paid employ-ees in the years 1992, 1993, 1994 and on January 1, 1995 to pay up to one-quarter of any increase in the year-to-year costs of the health insurance plans will not be applicable to engineers covered by this Agreement.

ARTICLE 5

The cost-of-living adjustments beginning on July 1, 1995 shall apply to engineers employed by a Carrier signatory to this Agreement on the same basis as contained in the 1991 National Agreement.

ARTICLE 6

(a) Commencing with the effective date of this Agreement, engineers employed by a Carrier signatory to this Agree-ment and who meet one of the seniority qualifications set forth below will be paid $12.00 for each tour of duty worked. This $12.00 differential will not be paid for deadhead tours of duty unless deadheading is combined with service and paid for on a combination basis.

(i) Have established seniority as an engineer with a Carrier signatory to this Agreement as of the effec-tive date of this Agreement, or

(ii) Establish seniority as an engineer with a Carrier signatory to this Agreement subsequent to the effec-tive date of this Agreement, and is a "protected employee" under a crew consist agreement in effect with a Carrier signatory to this Agreement, or

(iii) Is identified as a participant in a training program leading to seniority as a locomotive engineer with a Carrier signatory to this Agreement as of the effective date of this Agreement and who successfully completes such training program and acquires a seniority date as locomotive engineer.

(b) The $12.00 differential provided by this Article is not subject to wage and/or cost-of-living increases, but will increase to $15.00 effective January 1, 1995.

(c) The differential provided by this Article is in addition to the $6.00/6 cents "no-fireman" rate or crew consist "special allow-ance" as provided by Side Letter #20 to the May 19, 1986 Award of Arbitration Board No. 458.

ARTICLE 7

(a) Commencing with the effective date of this Agreement, engineers employed by a Carrier signatory to this Agreement will receive any additional compensation paid to other members of the operat-ing crew with which the engineer works. This entitlement to receive any additional compensation paid to other members of the operating crew shall continue until the effective date of settlement of a Section 6 notice served to amend this Agree-ment to change "compensation" by either BLE or the Company on or after November 1, 1994. (b) Additional "compensation" as used in Article 7(a) is defined as compensation (either additional compensation for time worked or pay for time not worked, e.g., additional vacation, personal leave days, holi-days or sick leave, etc.) in excess of the com-pensa-tion paid on the effective date of this Agreement, with the exception of any lump sum payments or general wage increases provided to another operating crew member as the result of the PEB 219/Special Board process. If such addition-al compen-sation to another member of the operating crew re-quires the perfor-mance of a specific task, such compensation will only be payable to the engineer if the engineer assists in the performance of the specific task. Such addi-tion-al compensation shall be paid to the engineer on a compara-ble basis as paid to other members of the operating crew with which the engineer works. Compensation other than earn-ings for the tour of duty accruing to another member of the operating crew shall also apply to the engineer.

(c) If additional compensation is paid to more than one other member of the operating crew with which the engineer works, it is not intended that the engineer receive multiple payments. For example, if the conductor and the brakeman on a crew with which the engineer works are each paid an additional $10.00 per tour of duty, the engineer would be entitled to an additional payment of $10.00 only, not the total of $20.00 received by other members of the operating crew.

(d) In the event other operating crew members become entitled to a voluntary separation or dismissal allowance, this Article 7 is not intended to apply.

(e) The provisions of this Article 7 apply only to engineers eligible to receive the $12/$15 differential payable pursuant to Article 6.

ARTICLE 8

The rule changes involving road/yard contained in the 1991 National Agreement will not apply to engineers employed by a Carrier signato-ry to this Agreement. The parties recognize the road/yard rules con-tained in the 1991 National Agreement are subject to becoming applica-ble to engineers employed by a Carrier signatory to this Agreement pursuant to Article 11(a) of this Agreement.

ARTICLE 9

The meal allowance provided in Article II, Section 2, of the June 25, 1964 National Agreement, as amended, will be increased from $4.15 to $6.00 on the effective date of this agreement. An engineer held at the away-from-home terminal will be entitled to the allow-ances after being held four, eight, and twelve hours. If not on continuous held-away-from-home-terminal pay, the cycle will repeat itself after the expiration of twenty-four (24) hours from the tie-up time. In all other regards, the allowance will be paid consis-tent with the manner in which this allow-ance has been paid in the past.

ARTICLE 10 - EXCLUSIVE REPRESENTATION

A General Chairman may, at his option, notify the Carrier of that Committee's desire to implement the exclusive representation provi-sions of the 1991 National Agreement.

ARTICLE 11

(a) Section 6 notices to change provisions of this Agreement or other Agree-ments governing engineers may be served in the future by either party in accordance with the morato-rium provisions contained in Article 11(c) of this Agree-ment. In the event such notices are served, the parties agree that on the effective date of the settle-ment of such notices the rates of pay shall be restored to the level to which they would have risen under the 1991 National Agreement or as agreed between the parties. Such restoration of rates of pay will not in-clude ret-roactive payment for the wage in-creases and lump sums pro-vided in the Na-tional Agreement. At the same time the rates of pay are re-stor-ed, all work rules chan-ges set forth in the 1991 Na-tion-al Agre-e-ment, in-clud-ing interpretations there--to, will also become effective, with the excep-tion of the special pay differ-ential and meal allowance. The par-ties hereto intend Articles 6 and 9 of this Agreement to super-sede any similar provision contained in the 1991 National Agreement.

Example: Assume the rate of pay prior to this next contract was $10. Also assume that the next contract provid-ed four (4) pay increases of 25 cents per hour and that the amen-dable date of the next contract was 1-/1/-95. Based on an ag-ree-ment to a wage freeze, employ-ees would be re-ceiv-ing $10 an hour rath-er than the in-dus-try $11 an hour rate. As-sume a new con-tract is negotiated to be effec-tive 7/1/95, provid-ing for a 3% increase in pay. Under this agree-ment, employ-ees would receive $10 an hour for the period 1/1/95 - 6/30/95 (the "status quo" period), and effective 7/1/95 would receive $11.33 an hour ($11 x 1.03), in effect being brought back up to the indus-try rate.

(b) Unless set forth in this Agreement, none of the rule changes contained in the 1991 National Agreement shall apply to engineers employed by a Carrier signatory to this Agreement, except as set forth in Article 11(a).

(c) The parties to this Agreement shall not serve nor progress prior to November 1, 1994 (not to become effective before January 1, 1995) any notice or proposal for changing any matter contained in:

(i) this Agreement

(ii) the 1991 National Agreement

(iii) notices dated as follows:

Notices Served Notices Served by BLE by Carrier

SP (Western Lines) 1/25/84 (2 notices) 2/08/84 6/01/88 & 6/08/88 1/30/89

SP (Eastern Lines) 1/13/84 & 1/17/84 1/18/84 6/03/88 & 6/08/88 1/30/89

D&RGW 1/03/84 & 1/17/84 1/17/84 6/01/88 & 6/07/88 6/16/88

SSW 1/03/84 & 1/25/84 1/18/84 6/1/88 (2 notices) 1/30/89

SP-WL (former PE) 1/03/84 & 1/27/84 12/21/84 6/01/88 (2 notices) 1/30/89

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

and any pending notices which propose such matters are hereby withdrawn, except the notices listed in Attachment A shall not be considered withdrawn and may be progressed in accordance with the Railway Labor Act.

(d) No party to this Agreement shall serve nor progress, prior to November 1, 1994 (not to become effective before January 1, 1995), any notice or proposal which might properly have been served when the last moratorium ended on July 1, 1988.

(e) This Article shall not bar the parties from agreeing upon any subject of mutual interest.

ARTICLE 12

This Agreement, signed at _________________, __________________, on

________-___, 1991, shall become effective on ______________-__, 1991.

FOR THE BROTHERHOOD OF LOCOMO-TIVE ENGINEERS:______________________________D. M. Hahs, General ChairmanSPT (Eastern Lines)______________________________C. L. James, General ChairmanD&RGW______________________________E. L. Pruitt, General Chairman SPT (Western Lines)______________________________H. F. Stewart, General Chair-man SPT (former Pacific Elec-tric)______________________________D.E. Thompson, General ChairmanSSW______________________________J. L. Dayton, Vice President______________________________E. E. Watson, Vice President FOR THE CARRIER:______________________________R. D. BredenbergGeneral Manager, Eastern Region______________________________A. L. MarzanoGeneral Manager, Central Region______________________________L. L. PhippsGeneral Manager, Western Re-gion______________________________L. G. Simpson, Vice PresidentTransportation-Qual-ity______________________________C. R. HuntingtonDirector, Labor RelationsSPT-/SSW______________________________P. B. Kingsolver, DirectorPersonnel & Labor RelationsD&RGW______________________________W. E. LoomisDirector, Labor RelationsSPT______________________________T. J. MatthewsVice President, Human Resources

Agt-1 (old d3/ble1/wel)

June 28, 1991

Mr. H. F. Stewart, General Chairman Brotherhood of Locomotive Engineers 335 N. Arroyo Drive San Gabriel, CA 91775

Dear Sir: Side Letter No. 1

It is my understanding we reached agreement that the provisions of this Agreement will apply to firemen represented by your Committee, with the exceptions of Articles 6 and 7. With regard to Article 6, we agreed upon a differential of $11/$14 to apply to firemen repre-sented by your Commit-tee, consistent in all other regards with Article 6.

If you concur with the foregoing, please so indicate by signing in the space provided below.

Respectfully,

C. R. Huntington Director, Labor Relations

CONCUR:

___________________________________ H. F. Stewart, General Chairman

SL1

June 28, 1991

Mr. D. E. Thompson, General Chairman Brotherhood of Locomotive Engineers 406 Missouri Boulevard Scott City, MO 63780

Dear Sir: Side Letter No. 2

It is my understanding we reached agreement that the provisions of this Agreement will apply to firemen represented by your Committee, with the exceptions of Articles 6 and 7. With regard to Article 6, we agreed upon a differential of $11/$14 to apply to firemen repre-sented by your Commit-tee, consistent in all other regards with Article 6.

If you concur with the foregoing, please so indicate by signing in the space provided below.

Respectfully,

C. R. Huntington Director, Labor Relations

CONCUR:

___________________________________ D. E. Thompson, General Chairman

SL2

June 28, 1991

SIDE LETTER NO. 3

Mr. D. M. Hahs, General Chairman Mr. D. E. Thompson, General Chairman Brotherhood of Locomotive Engineers Brotherhood of Locomotive Engineers 515 Northbelt, Suite 120 406 Missouri Boulevard Houston, Texas 77060 Scott City, Missouri 63780

Mr. C. L. James, General Chairman Mr. J. L. Dayton, Vice President Brotherhood of Locomotive Engineers Brotherhood of Locomotive Engineers 294 Sifford Court 14530 N.E. Bluebird Hill Lane Pueblo West, Colorado 81007 Dayton, Ohio 97114

Mr. E. L. Pruitt, General Chairman Mr. E. E. Watson, Vice President Brotherhood of Locomotive Engineers Brotherhood of Locomotive Engineers 38750 Paseo Padre Parkway, Suite A-7 1256 Lakeshore Drive Fremont, CA 94536 Cuba, Missouri 65453

Mr. H. F. Stewart, General Chairman Brotherhood of Locomotive Engineers 335 N. Arroyo Drive San Gabriel, California 91775

Gentlemen:

Notwithstanding anything to the contrary in this or any other agreement as of this date, expressed or implied, neither BLE nor SP waives or in any way compromises its respective position regarding the issue of whether or not Southern Pacific Transportation Company, Denver & Rio Grande Western Railroad Company, St. Louis Southwestern Railway Company, and SPCSL Corporation are a single carrier or whether or not any or all of the above carriers in national handling are subject to the jurisdiction of the Special Board.

SIDE LETTER NO. 3 - 2 -

Signed in this day of , 1991.

FOR THE BROTHERHOOD OF FOR THE CARRIER: LOCOMOTIVE ENGINEERS:

D. M. Hahs, General Chairman R. D. Bredenberg SPT (Eastern Lines) General Manager, Eastern Region

C. L. James, General Chairman A. L. Marzano D&RGW General Manager, Central Region

E. L. Pruitt, General Chairman L. L. Phipps SPT (Western Lines) General Manager, Western Region

H. F. Stewart, General Chairman L. G. Simpson, Vice President SPT (former Pacific Electric) Transportation-Quality

D. E. Thompson, General Chairman C. R. Huntington SSW Director-Labor Relations SPT/SSW

J. L. Dayton, Vice President P. B. Kingsolver, Director Personnel & Labor Relations D&RGW

E. E. Watson, Vice President W. E. Loomis Director-Labor Relations SPT

T. J. Matthews Vice President-Human Resources

SL3 (old abxslrblemoa-crh-061891-79/80)

June 28, 1991

SIDE LETTER NO. 4

Mr. D. M. Hahs, General Chairman Mr. D. E. Thompson, General Chairman Brotherhood of Locomotive Engineers Brotherhood of Locomotive Engineers 515 Northbelt, Suite 120 406 Missouri Boulevard Houston, Texas 77060 Scott City, Missouri 63780

Mr. C. L. James, General Chairman Mr. J. L. Dayton, Vice President Brotherhood of Locomotive Engineers Brotherhood of Locomotive Engineers 294 Sifford Court 14530 N.E. Bluebird Hill Lane Pueblo West, Colorado 81007 Dayton, Ohio 97114

Mr. E. L. Pruitt, General Chairman Mr. E. E. Watson, Vice President Brotherhood of Locomotive Engineers Brotherhood of Locomotive Engineers 38750 Paseo Padre Parkway, Suite A-7 1256 Lakeshore Drive Fremont, CA 94536 Cuba, Missouri 65453

Mr. H. F. Stewart, General Chairman Brotherhood of Locomotive Engineers 335 N. Arroyo Drive San Gabriel, California 91775

Gentlemen:

Reference agreement reached today in lieu of the "1991 National Agreement."

It was agreed that the Carrier and the Organization shall meet periodically between now and December 31, 1991 for the purpose of discussing a disability insurance policy to cover active BLE-represented engineers.* It is understood Carrier contributions for the disability policy shall not exceed $35.00 per month for each engineer.

The disability policy shall be placed in effect January 1, 1992 and, depending on the level of benefits, may require employee contribution should the monthly premium costs exceed $35.00 per month for each employee.

* The Eastern Lines disability policy currently in effect shall be maintained for Eastern Lines engineers unless the General Chairman opts for coverage under the new disability policy. In that event, the maximum Carrier contribution to the policy shall not exceed $35.00 per month for each Eastern Lines engineer.

SIDE LETTER NO. 4 - 2 -

Signed in this day of , 1991.

FOR THE BROTHERHOOD OF FOR THE CARRIER: LOCOMOTIVE ENGINEERS:

D. M. Hahs, General Chairman R. D. Bredenberg SPT (Eastern Lines) General Manager, Eastern Region

C. L. James, General Chairman A. L. Marzano D&RGW General Manager, Central Region

E. L. Pruitt, General Chairman L. L. Phipps SPT (Western Lines) General Manager, Western Region

H. F. Stewart, General Chairman L. G. Simpson, Vice President SPT (former Pacific Electric) Transportation-Quality

D. E. Thompson, General Chairman C. R. Huntington SSW Director-Labor Relations SPT/SSW

J. L. Dayton, Vice President P. B. Kingsolver, Director Personnel & Labor Relations D&RGW

E. E. Watson, Vice President W. E. Loomis Director-Labor Relations SPT

T. J. Matthews Vice President-Human Resources

SL4 (old abxslrblemoa-crh-061891-86/87)

June 28, 1991

SIDE LETTER NO. 5

Mr. D. M. Hahs, General Chairman Mr. D. E. Thompson, General Chairman Brotherhood of Locomotive Engineers Brotherhood of Locomotive Engineers 515 Northbelt, Suite 120 406 Missouri Boulevard Houston, Texas 77060 Scott City, Missouri 63780

Mr. C. L. James, General Chairman Mr. J. L. Dayton, Vice President Brotherhood of Locomotive Engineers Brotherhood of Locomotive Engineers 294 Sifford Court 14530 N.E. Bluebird Hill Lane Pueblo West, Colorado 81007 Dayton, Ohio 97114

Mr. E. L. Pruitt, General Chairman Mr. E. E. Watson, Vice President Brotherhood of Locomotive Engineers Brotherhood of Locomotive Engineers 38750 Paseo Padre Parkway, Suite A-7 1256 Lakeshore Drive Fremont, CA 94536 Cuba, Missouri 65453

Mr. H. F. Stewart, General Chairman Brotherhood of Locomotive Engineers 335 N. Arroyo Drive San Gabriel, California 91775

Gentlemen:

This letter of understanding, entered into on June 27, 1991, sets forth the terms and conditions of a "gainsharing" plan that provides that certain lump sum payments not payable to the BLE under provisions of the "generic" agreement may become due and payable if the combined carriers meet or exceed operating income levels as described below.

1. If operating income for the year 1992 meets or exceeds 150 million dollars, all BLE members employed by the combined carriers during 1992 will be entitled to the 3% lump sum payment provided for in PEB 219, as modified, interpreted or clarified by the "Special Board" or otherwise as contained in the BLE National Agreement to be paid by April 1, 1993.

SIDE LETTER NO. 5 - 2 -

2. If operating income for the year 1993 meets or exceeds 225 million dollars, all BLE members employed by the combined carriers during 1993 will be entitled to the 3% lump sum payment provided for in PEB 219, as modified, interpreted or clarified by the "Special Board" or otherwise as contained in the BLE National Agreement to be paid by April 1, 1994.

3. If operating income for the year 1994 meets or exceeds 288.5 million dollars, all BLE members employed by the combined carriers during 1994 will be entitled to the 3% lump sum payment provided for in PEB 219, as modified, interpreted or clarified by the "Special Board" or otherwise as contained in the BLE National Agreement to be paid by April 1, 1995.

4. Irrespective of whether any payments are forthcoming pursuant to paragraphs 1 through 3 above, the Carrier agrees to establish a non-matching 401(k) plan for all BLE-represented employees effective July 1, 1992 and to absorb the administrative costs associated therewith. In the event a payment becomes due and payable under the provisions of paragraphs 1 through 3 above, employees shall be given the option to determine how much, if any, of such payment they wish to contribute to the 401(k) account. It is recognized that the carrier must administer this plan in strict accord with the Internal Revenue Service and other applicable regulations.

5. Any payment made pursuant to paragraphs 1 through 3 above will not be subject to offset against any increases in the costs of the health insurance plans as is also provided in Article 4 of the "generic" agreement.

6. In the event gainsharing agreements are reached with other organizations, which differ from the terms of this understanding, the BLE may, at its option, reopen negotiations on the subject of gainsharing for the purpose of reaching an agreement of the same value and type reached with such other organizations.

Signed in Vancouver, B.C., Canada, this day of June, 1991.

FOR THE BROTHERHOOD OF FOR THE CARRIER: LOCOMOTIVE ENGINEERS:

D. M. Hahs, General Chairman R. D. Bredenberg SPT (Eastern Lines) General Manager, Eastern Region

C. L. James, General Chairman A. L. Marzano D&RGW General Manager, Central Region - 3 -

FOR THE BROTHERHOOD OF FOR THE CARRIER: LOCOMOTIVE ENGINEERS:

E. L. Pruitt, General Chairman L. L. Phipps SPT (Western Lines) General Manager, Western Region

H. F. Stewart, General Chairman L. G. Simpson, Vice President SPT (former Pacific Electric) Transportation-Quality

D. E. Thompson, General Chairman C. R. Huntington SSW Director-Labor Relations SPT/SSW

J. L. Dayton, Vice President P. B. Kingsolver, Director Personnel & Labor Relations D&RGW

E. E. Watson, Vice President W. E. Loomis Director-Labor Relations SPT

T. J. Matthews Vice President-Human Resources

SL5 (old abxslrblemoa-crh-061891-81/83)

June 28, 1991

SIDE LETTER NO. 6

Mr. D. M. Hahs, General Chairman Mr. D. E. Thompson, General Chairman Brotherhood of Locomotive Engineers Brotherhood of Locomotive Engineers 515 Northbelt, Suite 120 406 Missouri Boulevard Houston, Texas 77060 Scott City, Missouri 63780

Mr. C. L. James, General Chairman Mr. J. L. Dayton, Vice President Brotherhood of Locomotive Engineers Brotherhood of Locomotive Engineers 294 Sifford Court 14530 N.E. Bluebird Hill Lane Pueblo West, Colorado 81007 Dayton, Ohio 97114

Mr. E. L. Pruitt, General Chairman Mr. E. E. Watson, Vice President Brotherhood of Locomotive Engineers Brotherhood of Locomotive Engineers 38750 Paseo Padre Parkway, Suite A-7 1256 Lakeshore Drive Fremont, CA 94536 Cuba, Missouri 65453

Mr. H. F. Stewart, General Chairman Brotherhood of Locomotive Engineers 335 N. Arroyo Drive San Gabriel, California 91775

Gentlemen:

Reference agreement reached today in lieu of the "1991 National Agreement."

Per the attached Draft discussed in St. Louis, it was agreed the parties to the June 27, 1991 Agreement would commence discussions not later than August 1, 1991 to establish system seniority. The system seniority agreement shall contain provisions which will:

o not create additional expense to the Carrier.

o protect the exigencies of service.

o assure exercise of extended seniority does not cause shortages of engineers on previously existing seniority districts.

- 2 - SIDE LETTER NO. 6

o assure exercise of extended seniority does not result in creating a surplus of engineers at any location.

o permit recall to original seniority district.

Signed in , this date of , 1991.

FOR THE BROTHERHOOD OF FOR THE CARRIER: LOCOMOTIVE ENGINEERS:

D. M. Hahs, General Chairman R. D. Bredenberg SPT (Eastern Lines) General Manager, Eastern Region

C. L. James, General Chairman A. L. Marzano D&RGW General Manager, Central Region

E. L. Pruitt, General Chairman L. L. Phipps SPT (Western Lines) General Manager, Western Region

H. F. Stewart, General Chairman L. G. Simpson, Vice President SPT (former Pacific Electric) Transportation-Quality

D. E. Thompson, General Chairman C. R. Huntington SSW Director-Labor Relations SPT/SSW

J. L. Dayton, Vice President P. B. Kingsolver, Director Personnel & Labor Relations D&RGW

E. E. Watson, Vice President W. E. Loomis Director-Labor Relations SPT

T. J. Matthews Vice President-Human Resources

SL6 (old abxslrblemoa-crh-061891-84/85)

June 28, 1991

SIDE LETTER NO. 7

Mr. D. M. Hahs, General Chairman Brotherhood of Locomotive Engineers 515 Northbelt, Suite 120 Houston, Texas 77060

Mr. C. L. James, General Chairman Brotherhood of Locomotive Engineers 294 Sifford Court Pueblo West, Colorado 81007

Mr. E. L. Pruitt, General Chairman Brotherhood of Locomotive Engineers 38750 Paseo Padre Parkway, Suite A-7 Fremont, CA 94536

Mr. H. F. Stewart, General Chairman Brotherhood of Locomotive Engineers 335 N. Arroyo Drive San Gabriel, California 91775

Mr. D. E. Thompson, General Chairman Brotherhood of Locomotive Engineers 406 Missouri Boulevard Scott City, Missouri 63780

Mr. J. L. Dayton, Vice President Brotherhood of Locomotive Engineers 14530 N.E. Bluebird Hill Lane Dayton, Ohio 97114

Mr. E. E. Watson, Vice President Brotherhood of Locomotive Engineers 1256 Lakeshore Drive Cuba, Missouri 65453

Gentlemen:

Reference Agreement reached today in lieu of the 1991 National Agreement. SIDE LETTER NO. 7 - 2 -

It is agreed that the Carrier and Organization will jointly participate in the selection of the 401-k Administrator.

Signed in Vancouver, B.C., this 28th day of June, 1991.

FOR THE ORGANIZATION: FOR THE CARRIER:

D. M. Hahs, General Chairman C. R. Huntington SPT (Eastern Lines) Director-Labor Relations, SPT/SSW

C. L. James, General Chairman P. B. Kingsolver D&RGW Director, Personnel & Labor Relations

E. L. Pruitt, General Chairman W. E. Loomis SPT (Western Lines) Director-Labor Relations, SPT

H. F. Stewart, General Chairman T. J. Matthews SPT (former Pacific Electric) Vice President-Human Resources

D. E. Thompson, General Chairman SSW

J. L. Dayton, Vice President

E. E. Watson, Vice President

SL7 (old vanc/rpg/2-3)

June 28, 1991

SIDE LETTER NO. 8

Mr. D. M. Hahs, General Chairman Brotherhood of Locomotive Engineers 515 Northbelt, Suite 120 Houston, Texas 77060

Mr. C. L. James, General Chairman Brotherhood of Locomotive Engineers 294 Sifford Court Pueblo West, Colorado 81007

Mr. E. L. Pruitt, General Chairman Brotherhood of Locomotive Engineers 38750 Paseo Padre Parkway, Suite A-7 Fremont, CA 94536

Mr. H. F. Stewart, General Chairman Brotherhood of Locomotive Engineers 335 N. Arroyo Drive San Gabriel, California 91775

Mr. D. E. Thompson, General Chairman Brotherhood of Locomotive Engineers 406 Missouri Boulevard Scott City, Missouri 63780

Mr. J. L. Dayton, Vice President Brotherhood of Locomotive Engineers 14530 N.E. Bluebird Hill Lane Dayton, Ohio 97114

Mr. E. E. Watson, Vice President Brotherhood of Locomotive Engineers 1256 Lakeshore Drive Cuba, Missouri 65453

Gentlemen:

Reference Agreement reached today in lieu of the 1991 National Agreement. SIDE LETTER NO. 8 - 2 -

It is agreed this Agreement will become effective July 1, 1991; however, items therein requiring programming and other Management Services input shall be payable no later than August 20, 1991.

Signed in Vancouver, B.C., this 28th day of June, 1991.

FOR THE ORGANIZATION: FOR THE CARRIER:

D. M. Hahs, General Chairman C. R. Huntington SPT (Eastern Lines) Director-Labor Relations, SPT/SSW

C. L. James, General Chairman P. B. Kingsolver D&RGW Director, Personnel & Labor Relations

E. L. Pruitt, General Chairman W. E. Loomis SPT (Western Lines) Director-Labor Relations, SPT

H. F. Stewart, General Chairman T. J. Matthews SPT (former Pacific Electric) Vice President-Human Resources

D. E. Thompson, General Chairman SSW

J. L. Dayton, Vice President

E. E. Watson, Vice President

SL8 (old vanc/rpg/4-5)

June 28, 1991

Mr. D. M. Hahs, General Chairman Mr. D. E. Thompson, General Chairman Brotherhood of Locomotive Engineers Brotherhood of Locomotive Engineers 515 Northbelt, Suite 120 406 Missouri Boulevard Houston, Texas 77060 Scott City, Missouri 63780

Mr. C. L. James, General Chairman Mr. J. L. Dayton, Vice President Brotherhood of Locomotive Engineers Brotherhood of Locomotive Engineers 294 Sifford Court 14530 N.E. Bluebird Hill Lane Pueblo West, Colorado 81007 Dayton, Ohio 97114

Mr. E. L. Pruitt, General Chairman Mr. E. E. Watson, Vice President Brotherhood of Locomotive Engineers Brotherhood of Locomotive Engineers 38750 Paseo Padre Parkway, Suite A-7 1256 Lakeshore Drive Fremont, CA 94536 Cuba, Missouri 65453

Mr. H. F. Stewart, General Chairman Brotherhood of Locomotive Engineers 335 N. Arroyo Drive San Gabriel, California 91775

Gentlemen: SIDE LETTER NO. 9

Reference Agreement reached today in lieu of the 1991 National Agreement.

Effective October 1, 1991, St. Louis Southwestern Railway Company and Southern Pacific Transportation Company (Eastern Lines) engineers shall receive eight (8) personal leave days, to be taken before October 1, 1991 and July 1, 1995.

Southern Pacific Transportation Company (Western Lines) (including former EP&SW), Southern Pacific Transportation Company (former Pacific Electric), and Denver and Rio Grande Western Railroad Company engineers shall receive nine (9) personal leave days during this same period.

It is understood such personal leave days must be taken in a manner consistent with business requirements.

SIDE LETTER NO. 9 - 2 -

Personal leave days for Southern Pacific (Western Lines) (including former EP&SW), Southern Pacific (former Pacific Electric), and Denver and Rio Grande Western Railway Company will be paid at the basic Mountain through freight rate, and days not taken shall be paid for January 1, 1996.

Personal leave days for Southern Pacific (Eastern Lines) and St. Louis Southwestern Railway Company will be paid at the basic through freight rate, and days not taken shall be paid for January 1, 1996.

Signed in Vancouver, B.C., this 28th day of June, 1991.

FOR THE ORGANIZATION: FOR THE CARRIER:

D. M. Hahs, General Chairman C. R. Huntington SPT (Eastern Lines) Director-Labor Relations, SPT/SSW

C. L. James, General Chairman P. B. Kingsolver D&RGW Director, Personnel & Labor Relations

E. L. Pruitt, General Chairman W. E. Loomis SPT (Western Lines) Director-Labor Relations, SPT

H. F. Stewart, General Chairman T. J. Matthews SPT (former Pacific Electric) Vice President-Human Resources

D. E. Thompson, General Chairman SSW

J. L. Dayton, Vice President

E. E. Watson, Vice President

SL9 (old vanc/rpg/2-3)

QUESTIONS AND ANSWERS

Q1. (Article 7)

In the event Southern Pacific reached agreement with the Western Lines UTU(T) to buy out the Supplemental Productivity Fund for a lump sum payment to each trainman, would the Western Lines engineers be entitled to receive an identical lump sum payment because of Article 7?

A1. No. If the UTU(T) Supplemental Productivity Fund is bought out, Western Lines engineers would be entitled to continue to receive the level of payments accruing to them at the time of the buyout until the expiration of the entitlement arising pursuant to Article 7.

Q2. (Article 7)

In the event Southern Pacific reached agreement with the Eastern Lines UTU(T) to pay a $125 penalty for setouts or pickups in through freight service in excess of an allowable number, would Eastern Lines engineers be entitled to also receive the penalty?

A2. Yes, subject to the expiration of the entitlement arising pursuant to Article 7.

Q3. (Article 7)

Is the existing $125 penalty paid to Western Lines conductors instructed to perform more than two (2) en route work events on a conductor only train payable to the engineer working on that train?

A3. No.

Q4. (Article 7)

If the $125 penalty applicable in conductor only service on Western Lines is increased to $175, would the engineer on a conductor only train on which the conductor qualified for the $175 penalty be entitled to $50 (the difference between $175 and $125)?

A4. Yes, subject to the expiration of the entitlement arising pursuant to Article 7.

-2-

Q5. (Article 6)

Does this Agreement provide for a termination of the $12/$15 differential provided by Article 6?

A5. No.

Q6. (Article 6)

Is it contemplated that the $12/$15 differential provided by Article 6 will cease with settlement of Section 6 Notices as set forth in Article 7(a)?

A6. No.

Q7. (Article 7)

If other members of the operating crew with which a Cotton Belt engineer works receive additional compensation as defined by Article 7, would Eastern Lines engineers be entitled to equivalent additional compensation?

A7. No. Only Cotton Belt engineers working with members of the operating crew receiving the compensation would be entitled to equivalent compensation.

Q&A (old d3/wel1/1-2)

ATTACHMENT "A"

Pursuant to the provisions of Section C(iv), Article 11 of this Agreement, the following BLE (Western Lines) Section 6 Notices may be progressed in accordance with the Railway Labor Act.

Date of Notice Issue Co. File No. Org. File No.

9-08-89 Train Telemetry System E&F 188-141 E-24800

9-27-90 Proposed Operations GEN 180-167 E-26790 ICC Finance Docket Nos. (Sec 6 Notices) 31730 and 31731

ATT-A

AGREEMENT BY AND BETWEEN

SOUTHERN PACIFIC TRANSPORTATION COMPANY (WESTERN LINES) (including former EP&SW)

SOUTHERN PACIFIC TRANSPORTATION COMPANY (FORMER PACIFIC ELECTRIC)

AND ITS ENGINEERS

REPRESENTED BY THE

BROTHERHOOD OF LOCOMOTIVE ENGINEERS

* * * * * * * * *

IT IS AGREED:

Article 1:

(a) Western Lines engineer extra boards, including former Pacific Electric and EP&SW, will be guaranteed the equivalent of a specified number of basic mountain through freight rate days per semi-monthly pay period:

(1) Engineers entitled to the $12/$15 pay differential shall be guaranteed the equivalent of 18 days per pay period.

(2) Engineers promoted from train/yard service employees whose train/yard seniority is prior to the effective date of this Agreement, and who are not covered under Item (1) above, shall be guaranteed the equiva-lent of 16 days per pay period.

(3) Engineers other than those in Items (1) and (2) above shall be guaran-teed the equivalent of 15 days per pay period.

(b) All earnings in engine service during the pay period will apply toward the guarantee.

(c) The guarantee of engineers who are on the extra board for part of a semi-monthly pay period will be pro-rated.

(d) On the effective date of this Agreement, all established Western Lines engineer extra boards shall be guaranteed as above, with the exception of the passenger extra board(s) protecting the San Francisco Peninsula Commute Service. Additional extra boards which may be established shall also be guaranteed as set forth above. Extra boards which protect yard service only will not be established except by agreement with the Organization.

(e) Items (a), (b), (c) and (d), above, supersede Item 2(e) of Side Letter No. 20 of the May 19, 1986 Award of Arbitration Board No. 458. - 2 -

(f) Engineers assigned to or augmenting these guaranteed extra boards will have a deduction made from their semi-monthly guarantee when they lay off as set forth in Memorandum of Agreement covered by file E&F 1-2295 (Attachment "A") and effective May 1, 1991, except the deduction will be one-sixteenth (1/16th) of the applicable semi-monthly guarantee instead of one basic through freight day. All other provisions of E&F 1-2295 shall remain in effect, and E&F 1-2295 may thereafter be cancelled in accordance with the Railway Labor Act, as amended.

(g) All provisions of Side Letter No. 20 of the May 19, 1986 Award of Arbitra-tion Board No. 458, except as set forth above, will apply to Western Lines engineer extra boards.

Article 2:

No interdivisional service which requires a change in home terminals will be implemented prior to the effective date of settlement of Section 6 Notices contemplated by Article 11(a) of agreement dated June 28, 1991, unless agreed between the parties, with the exception of interdivisional service proposed between West Colton and Long Beach (ICTF). The moratorium set forth in the prior sentence shall also apply to interdivisional notices which have been served.

The parties have jointly studied the traffic needs and identified what is thought to be efficient methods of handling traffic between Long Beach (ICTF) and West Colton and negotiated an agreement identified as Attachment B hereto. Notwithstanding, the Company reserves its right to progress the matter under the terms of Article IX of the May 19, 1986 Award of Arbitra-tion Board No. 458 should the Agreement identified as Attachment B prove unsatisfactory and sub-sequent negotiations fail to resolve the issues.

The foregoing is without prejudice and on a non-referable basis to the respec-tive positions of the parties regarding the propriety of moving terminals under Article IX of the May 19, 1986 Award of Arbitration Board No. 458.

Article 3: Engineer Reserve Boards (Western Lines)

(a) (1) The Company will establish reserve boards for engineers on Southern Pacific (Western Lines), including former Pacific Electric and EP&SW. - 3 -

(2) Reserve boards will be established at the following extra board locations: Portland; Eugene; Albany; Klamath Falls; Roseburg; Dunsmuir; Roseville; Sparks; Ogden; Oakland; San Francisco; San Jose; Salinas; Watsonville; San Luis Obispo; Tracy; Fresno; Bakersfield; Los Angeles; Colton; Yuma; Phoenix; Tucson; El Paso and Tucumcari. These boards will be established although the needs of service at a source of supply may preclude engineers from being assigned.

(3) Applications will be accepted based upon the needs of service at each extra board location.

(4) If any of the extra board locations listed in (b) above are eliminated as an extra board location for any reason, the reserve board positions at the eliminated extra board location will be relocated to the new extra board location. Reserve board posi-tions shall be awarded based on the applicants' relative seniority at the source of supply.

(b) (1) Engineers on reserve boards will receive $1,750.00 per semi-monthly pay period. Periods of less than a month will be prorated at the rate of $116.67 for each calendar day in reserve status.

(2) No other compensation will be paid to or on behalf of an engineer in reserve status, except for payment of premiums under applicable health and welfare plans (including Side Letter 4 of agreement dated June 28, 1991 and/or compensation payable to them under Article 7 of agreement dated June 28, 1991. Deductions from reserve pay will be made for income, employment or payroll taxes (including Railroad Retirement Taxes), pursuant to federal, state and local law, deductions of dues pursuant to an applicable union shop agreement, and any other deductions authorized by agreement or legally required deductions.

(3) Reserve pay will be subject to any future wage and/or cost-of-living adjustments provided for in agreements reached between the parties, either locally or nationally, except that only 70% of any such adjustment will apply to reserve pay.

(4) Other non-railroad employment while in reserve status is permissi-ble so long as there is no conflict of interest. There shall be no offset for outside earnings.

(5) Any monies received from settlements of disputed grievances or back pay/lump sum allowances resulting from concerted wage and rule move-ments do not offset reserve board payments, nor shall any reserve board payments be used in determining any amount due as a result of settlement of concerted wage and rule movements.

- 4 -

(c) (1) An engineer assigned to reserve status must remain thereon for at least three months, or until:

(i) discharged from employment by the Company in accordance with applicable discipline rules; (ii) resigns from the Company's employment; (iii) recalled to active service; (iv) retires on a disability annuity.

(2) Commencing three months after the date of the initial reserve board assignments and each three months thereafter, if reserve board posi-tions are available they will be advertised for senior-ity choice at each extra board location.

(3) The BLE Local Chairman shall be permitted first right to a position on a reserve board established hereunder, subject to written approval of the appropriate BLE Division President.

(4) Runs held by engineers taking reserve status will be bulletined as provided for in Section 10(a) of Article 32.

(d) (1) An engineer in reserve status must be available for return to service upon 30 days' written notice by Certified Mail, with restricted delivery to addressee only and a copy to the Local Chairman. Reserve pay will continue for only seven (7) days after postmark and the employee must return to service within thirty (30) days of attempted delivery. Failure to comply with any of these requirements will result in forfeiture of all seniority rights subject to the provisions of Article 32, Section 21 of the engineers' agreement, or appropriate EP&SW Discipline Rule, including the Pacific Electric Discipline Rule.

(2) The recall of an engineer from reserve status will be in reverse order of seniority and based solely on the need for service at the extra board location from which he accepted reserve status. Upon recall, such engineer will be allowed a full right of displace-ment. Once an engineer has reported for service, that engineer's use will be governed by the collective bargaining agreement.

(3) An engineer in reserve status must maintain his work profi-ciencies, including successfully completing any retraining or refresher programs the Company may require and passing any tests or examinations (includ-ing physical examinations) administered for purposes of determining whether such profi-ciencies have been maintained. Such tests and examinations will be consistent in context with those administered to active employees. The Company will give a reserve engineer 30 days' advance written notice by Certified Mail, Return Receipt Requested, of refresher programs, rules classes, or examinations the engineer is required to attend to maintain such work proficiencies. Unless so stated, such notice should not be construed to be a return to duty notice.

(4) Reserve engineers shall be considered in active service. - 5 -

(e) Vacation pay received while on a reserve board status will offset pay received under Section 2(a). Time spent in reserve status will not count toward determining whether the employee is eligible for vacation in succeeding years. It will count as time in determining the length of the vacation to which an employee, otherwise eligible, is entitled.

(f) Engineers on the reserve board are not eligible for Holiday Pay, Bereave-ment Leave, Jury Pay, Personal Leave, or other similar allow-ances.

Article 4:

(a) Article 24 of the agreement covering engineers is amended to allow engineers to split a maximum of two (2) weeks into daily splits.

(b) Engineers may request daily splits of one (1) or two (2) weeks (7 or 14 days) of their qualifying weeks of vacation, with the remainder of vacation weeks, if any, assigned in the normal manner.

NOTE 1: Engineers must indicate the number of weeks to be utilized as daily splits on the annual vacation request form. Failure to stipulate requests for splits will result in vacation being assigned in the normal manner.

NOTE 2: Daily rates of pay for the week(s) utilized for daily splits will be calculated pursuant to rules currently in effect.

EXAMPLE: An employee having interchangeable yard and road rights receiving one week's vacation, or pay in lieu thereof, shall be paid 1/52 of the compensation earned by such employee under schedule agree-ments during the calendar year preceding the year in which the vacation is taken; provided that, if the vacation is taken during the time such employee is working in road service such pay shall be not less than six (6) minimum basic days' pay at the rate of the last road service rendered, and if the vacation is taken during the time such employee is working in yard service, such pay shall be not less than five (5) minimum basic days' pay at the rate of the last yard service rendered. It is understood that the monetary calculations for the weeks vacation specified in each instance above will be divided by seven (7) for determin-ing the basic daily rate.

(i) Earnings of $53,000 -- 52 weeks = $1,019.23 -- 7 days = $145.60 basic daily rate.

(ii) Basic road rate of $117.20 x 6 days = $703.20 -- 7 days = $100.46 basic daily rate.

(iii) Basic yard rate of $125.41 x 5 days = $627.05 -- 7 days = $89.58 basic daily rate. - 6 -

(c) Daily splits may be granted one (1) to five (5) days at a time as requested, if there are sufficient engineers to protect the service.

(d) Daily splits, when allowed, will be on a first request basis; however, no request may be made earlier than forty-eight (48) hours before the daily splits are taken.

(e) Daily splits shall commence at 12:01 AM and shall end at 12:01 AM the following day.

(f) For each daily split of vacation an extra engineer takes, one-sixteenth (1/16th) of the semi-monthly guarantee shall be deducted from his guarantee.

(g) All daily splits must be taken between January 1 and November 30 of the calendar year.

NOTE: Engineers who have not utilized their daily splits by November 30 will have the remaining days scheduled at the Car-rier's discretion in December of the current vacation year or January, February and March of the following year.

(h) Engineers called to protect outlying assignments, which require the payment of a basic day deadhead, will be paid in accordance with the current Brotherhood of Locomotive Engineers' Agreement, i.e., the first extra engineer will be paid for the going trip on the first split and the last extra engineer will be paid for the return trip on the last split. Deadheads will not be paid for any intervening split(s).

(i) It is understood that it will be the responsibility of the individual engineer to track his daily split(s) to assure that days are not scheduled in a manner to cause excess vacation to be taken.

(j) Except as otherwise provided herein, all provisions of the April 29, 1949 Vacation Agreement, as amended, and decisions of the Disputes Committee will remain in full force and effect.

(k) This Article is without prejudice to the position of either party, will not be referred to in connection with any other agreement (local or national), case and/or arbitration and may be cancelled by either party upon ten (10) days' written notice by September 1 of each calendar year to become effec-tive on December 31 of that year, commencing September 1 of 1994.

Article 5:

Claims conferences requiring access to centralized crew records will be scheduled as needed at Roseville. Local Chairmen attending will be allowed auto mileage or be provided airline tickets, lodging if overnight stay is required, and will be allowed 175 miles for each day. - 7 -

Q. Will the Local Chairman be reimbursed if he/she obtains his/her own airline ticket?

A. Yes, providing such ticket involves a fare reasonably comparable to the ticket which would be furnished by the Company.

Article 6: Revise Article 25, Section 4(b) by adding:

"If the BLE Local Chairman lists a claim for conference within ninety (90) days of the Company's denial, such claim will be protected on time limits until date conferenced after which subsequent time limit provisions shall commence."

Article 7:

(a) Amend Article 33, Section 6, by adding the following three sentences:

"In all classes of service, an engineer whose request to eat is denied will be allowed a meal allowance of $12.50, which will be nontaxable to the extent provided by law. Only one such allowance will be paid for each tour of duty worked. Such allowance is not subject to future wage and cost-of- living adjustments."

NOTE: Q. Does Article 7(a) contemplate that an engineer in road service has to request a meal to qualify for the $12.50 allowance?

A. No. It is the intent of Article 7(a) that engineers in all road service will prepare a lunch to eat en route.

(b) Engineers as a group Western Lines-wide, including EP&SW, may elect to retain Article 11, Section 1, Sub-section (e), as written, or amend Article 11, Section 1, Sub-section (e), as follows:

First paragraph -- change "4-1/2 and 6" to "3-1/2 and 6-1/2".

Second paragraph -- change "6" to "6-1/2".

Third paragraph -- change "an additional 20 minutes at overtime rate of pay" to "the $12.50 penalty specified in Article 33, Section 6."

- 8 -

Article 8:

This agreement shall become effective .

Signed in , this date of , 1991.

FOR THE BROTHERHOOD OF FOR SOUTHERN PACIFIC TRANSPORTATION LOCOMOTIVE ENGINEERS: COMPANY:

E. L. Pruitt, General Chairman L. L. Phipps, General Manager SPT (Western Lines)

H. F. Stewart, General Chairman C. R. Huntington SPT (former Pacific Electric) Director-Labor Relations

T. J. Matthews Vice President-Human Resources

APPROVED:

J. L. Dayton, Vice President

AGT-2 (old abxslrblemoa-wel-062491-66/73)

ATTACHMENT A E&F 1-2295

MEMORANDUM OF AGREEMENT

BY AND BETWEEN THE

SOUTHERN PACIFIC TRANSPORTATION COMPANY (WESTERN LINES)

AND ITS EMPLOYEES REPRESENTED BY THE

BROTHERHOOD OF LOCOMOTIVE ENGINEERS

* * * * * * * *

In an effort to expedite the processing of guarantee due engineers assigned to 3,000 mile Side Letter No. 20 guaranteed extra boards, it is agreed the provi-sions of Item 2(f) of Side Letter No. 20 to the May 19, 1986 BLE Arbitration Award No. 458 are modified as follows:

1. An engineer assigned to or augmenting a 3,000 mile Side Letter No. 20 guaranteed extra board who lays off or misses call shall have one basic through freight day at the applicable rate of pay deducted from his monthly guarantee whenever he fails to protect the extra board the entire calendar day except as provided in Item 2 of this Agreement.

a. This deduction will not be made when an engineer has previously commenced service from the extra board that calendar day unless he misses call.

2. In order to protect the extra board, an engineer assigned to or augmenting a 3,000 mile Side Letter No. 20 guaranteed extra board must report for service prior to 12:01 PM and remain available that calendar day.

a. An engineer failing to report for service prior to 12:01 PM shall have one basic through freight day at the applicable rate of pay deducted from his monthly guarantee.

b. This deduction will be made whether or not an engineer subse-quently performs service from the extra board that calendar day.

c. An engineer assigned to or augmenting a 3,000 mile Side Letter No. 20 guaranteed extra board will be handled pursuant to the provisions of Section 3(a), Article 30 of the Engineers' Agree-ment. Accordingly, when reporting for duty, an engineer shall be placed in last-out position on the extra board.

3. In order to prevent "sharp practice", consecutive periods of layoff not bracketed by service as identified by the Engineers' Agreement will be considered a single period of layoff. E&F 1-2295 - 2 -

a. The provisions of Item 3 will not apply to an engineer failing to bracket consecutive periods of layoff with service due to a bona fide family emergency, i.e., major illness or accident, provided the engineer specifies the nature of the emergency and furnishes the Company with material evidence.

4. The provisions of Side Letter No. 20 to the May 19, 1986 BLE Arbitra-tion Award No. 458 not specifically modified by this agreement shall remain in full force and effect.

5. This Agreement may be cancelled subject to ten (10) days' written notice served by either party, with the understanding that such cancellation will become effective on the first day of the month following the expiration of the above ten (10) day period.

This Memorandum of Agreement is effective as of 12:01 AM, May 1, 1991.

Signed at San Francisco, California, this day of , 1991.

FOR THE EMPLOYEES: FOR THE CARRIER:

E. L. Pruitt, General Chairman C. R. Huntington Director - Labor Relations

EF1-2295 (old abxslrblemoa-wrk-050191-55/56)

E&F 1-2295

AGREED TO QUESTIONS AND ANSWERS

Example #1:Engineer "A" commences service on Monday 12:01 AM on duty, ties up on Monday 12:01 PM, lays off 3:00 PM Monday, reports to the extra board at 11:15 AM Tuesday and then performs service 8:00 AM Wednesday.

Question: What loss of guarantee would Engineer "A" incur?

Answer: No loss.

Example #2:Engineer "B" has performed no service commencing on Monday, lays off or misses call at 2:00 PM Monday, reports to the extra board at 11:00 AM Tuesday, next performs service Wednesday at 10:00 AM.

Question: What loss of guarantee would Engineer "B" incur?

Answer: Engineer "B" would lose a basic day for Monday.

Example #3:Engineer "C" performs service commencing Monday 12:30 AM, ties up on Monday 8:30 AM and misses call at 1:30 PM Monday, reports to the extra board at 1:30 AM Tuesday, performs service 4:00 PM Tuesday.

Question: What loss of guarantee would Engineer "C" incur?

Answer: Engineer "C" would lose a basic day for Monday.

Example #4:Engineer "D" lays off or misses call at 1:30 PM on Monday (performed no service commencing Monday), reports to the extra board at 3:00 PM Tuesday, performed service 5:00 PM Wednesday.

Question: What loss of guarantee would Engineer "D" incur?

Answer: Engineer "D" would lose a basic day for each day Monday and Tuesday.

- 1 - E&F 1-2295

Example #5: Engineer "E" performs no service commencing Monday, lays off or misses call at 3:00 PM Monday, reports to the extra board at 10:00 AM Tuesday, performs no service Tuesday, Wednesday or Thursday, lays off or misses call at 9:00 AM Friday, reports to the extra board at 2:00 AM Satur-day.

Question: What loss of guarantee would Engineer "E" incur?

Answer: Engineer "E" loses a basic day for each day Monday, Tuesday, Wednesday, Thursday and Friday. Engineer "E" must perform service from the extra board before again laying off or missing call to avoid further deductions from his/her guarantee.

FOR THE EMPLOYEES: FOR THE CARRIER:

E. L. Pruitt, General Chairman C. R. Huntington Director - Labor Relations

- 2 -

EF1-2295 (old abxslrblemoa-wrk-050191-57/58)

June 28, 1991

Mr. E. L. Pruitt, General Chairman Brotherhood of Locomotive Engineers 38750 Paseo Padre Parkway, Suite A-7 Fremont, California 94536

Dear Sir:

Reference agreement reached June 28, 1991 in lieu of the 1991 BLE national settlement and local agreements in connection therewith.

It was agreed the Western Lines local agreements reached today will not change the current local extra board agreements in effect at Sacramento and Phoenix. However, it is under-stood the current Sacramento Extra Board Agreement may be cancelled or amended by the pending issue of extending the Roseville/Sacramento switching limits through either arbitration or agreement between the parties.

Respectfully,

________________________ C. R. Huntington Director-Labor Relations

AGREED:

______________________________ E. L. Pruitt, General Chairman

APPROVED:

_______________________________ J. L. Dayton, Vice President

ELP1 (old vanc/crh/8)

June 28, 1991

Mr. E. L. Pruitt, General Chairman Brotherhood of Locomotive Engineers 38750 Paseo Padre Parkway, Suite A-7 Fremont, California 94536

Dear Sir:

Reference pending sale of Southern Pacific's peninsula commute operations to CALTRANS.

It was agreed that Southern Pacific engineers accepting employment with the new operator of the Peninsula Commute Service will have their test period earnings for protective benefit purposes calculated on the same basis as if they had previously been working under the Brotherhood of Locomotive Engineers' National Agreement which results from the PEB 219 process.

Respectfully,

________________________ C. R. Huntington Director-Labor Relations

AGREED:

______________________________ E. L. Pruitt, General Chairman

ELP2 (old bobh91/56)



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