(8/06/97)
between the
UNION PACIFIC RAILROAD COMPANY
and the
UNITED TRANSPORTATION UNION
ENGINE SERVICE
(SP WEST)
In Finance Docket No. 32760, the Surface Transportation Board (STB) approved the merger of Union Pacific Railroad Company/Missouri Pacific Railroad Company (Union Pacific or UP) with the Southern Pacific Transportation Company, the SPCSL Corp., the SSW Railway and the Denver and Rio Grande Western Railroad Company (SP). In approving this transaction, the STB imposed the New York Dock Labor Protective Conditions.
The parties understand that this document is the result of voluntary negotiations outside of merger negotiations and that the provisions entered into below are separate and apart from merger notices. Complete negotiations beginning with the service of notice under New York Dock conditions must still be handled for each merger area and those requirements are not waived by this Agreement. However, in order to reach a mutually satisfactory understanding for the handling of future UP/UTU SP West negotiations with regards to the collective bargaining agreement that will be selected by the Carrier and to equalize many of the pay and work rules on the UP system,
IT IS AGREED:
I. MUTUAL COMMITMENT
A. Union Pacific agrees that the SP-West UTU (E) collective bargaining agreement, as amended by this Agreement, will be the governing collective bargaining agreement for the following territory: Starting either with the Portland Hub (as defined in the applicable merger implementing agreement/award) and The Dalles or one crew change point south out of Portland and The Dalles; to Elko, Nevada; to Yermo, California, and ending either one crew change point west out of El Paso or one crew change point northeast, east and southeast out of El Paso.
NOTE: The trackage between Barstow, California, and Mojave, California, will be joint trackage for both SP and UP South employees until that area is under a single collective bargaining agreement.
B. SP-West UTU (E) agrees the collective bargaining provisions set forth below, in Sections II- XI will constitute agreed-upon changes to the SP-West UTU(E) collective bargaining agreement.
II. PROTECTION
A. All SP-West engine service employees with a seniority date prior to June 1, 1997, working under the provisions of the SP-West UTU(E) collective bargaining agreement, as amended, on June I, 1997, will receive interim protection pending the outcome of merger negotiations in each hub. This interim protection shall extend from implementation of this Agreement until a merger agreement is implemented or an arbitration award is issued for each hub, respectively. The test period average shall be based on the employee's earnings for calendar year 1996 based on New York Dock principles. The total will be divided by twelve (12) to achieve a monthly TPA. If this Agreement is initialed prior to August 15, 1997, then the July 1, 1997, National Increase shall apply if this Agreement is subsequently approved.
NOTE 1: The parties recognize that the interim protection provided in Paragraph A is not intended to be long-term but is intended to last only until the parties, through their respective good faith efforts, reach a negotiated implementing agreement or receive implementing arbitration award.
NOTE 2: Without prejudice to either party's position, the 1996 TPAs will include claim settlements paid in that year, including penalty payments, whether attributable to that test period or not. During the protective period, similar payments will be used as an offset to the monthly protection. This does not include lump sum claim settlements nor the other items referred to in the Agreement and the letter included as Attachment "B" hereto.
B. In accordance with New York Dock, an employee's TPA will not include certain taxable and non- taxable items such as but not limited to relocation, lump sums, lump sum claims settlements, protection payments and away-from-home meal allowances. It will include the $12.50 for in lieu meal allowances.
C. Employees now covered by a protective arrangement may elect to continue coverage under that arrangement consistent with the New York Dock labor protective conditions.
D. Each SP-West employee who worked a minimum of 150 hostler shifts in 1996 as a regularly assigned hostler employee will have that portion of his/her TPA that is based on calendar year 1996 wages increased by 2.3%. This is a one-time adjustment to equalize SP hostler rates with National hostler rates and will only apply to those SP-West employees who meet the requirements set forth in this Paragraph D.
E. Each SP-West UTU(E) interim protection employee's TPA will be subject to change based on future wage and COLA adjustments until an implementing agreement is reached or an implementing award is issued.
F. The TPAs for full-time and part time union officers will be based on the officers own TPA or a TPA average derived from the two employees directly above and the two employees directly below the official working at the official's normal work location and on the official's seniority roster. In calculating such an average, the Carrier will "de-select" any employees with unusually high or low earnings. Full time and part time union officers are defined as General and Local Committee officers.
G. Should the SP-West UTU(E) Agreement, as amended, be selected in a merger hub and the merger hub negotiated implementing agreement is implemented or imposed through arbitration, then SP-West UTU(E) engine service employees who have interim wage protection under this Agreement shall restart their protective period and be entitled to twice the number of years wage protection available to each employee under the New York Dock conditions. For example, an employee entitled to six years protection shall be entitled to twelve years protection. The TPA established during the interim protective period under this Agreement will be retained for this extended New York Dock merger protection. The extended protection TPA will be subject to change based on future wage and COLA adjustments only for the normal NYD protective period.
H. Should an employee elect the protection in (G), above, rather than the negotiated merger proposal protection or some other protection arrangement, the protection shall be subject to change based on future wage and COLA adjustments only for the same period of time as regular New York Dock protection. For example, if an employee is subject to six years of New York Dock protection and elects the twelve years protection, then the changes based on future wage and COLA adjustments shall only be for six years.
I. The provisions for handling offsets to protection in (A) and/or (G), above, are detailed in the questions and answers. Regular New York Dock provisions will apply for issues involving "holding the highest rated position" for protection payments. All protection referenced in this Article shall be wage protection only and there shall be no hours computation/protection.
J. Employees will be eligible for the interim protection upon implementation of this Agreement. They shall become eligible for the extended protection provided in (G), above, only upon implementation or arbitration imposition of the negotiated merger proposal for each hub if the SP-West UTU(E) agreement is applicable in that hub after the merger. The parties agree to use their best efforts to achieve a negotiated settlement.
III. NATIONAL WAGES AND RULES
A. SP-West UTU(E) wage rates will now equal the national wage rates. (A copy of those wage rates is attached as Attachment A.) Previous lump sum payments provided for in the November 11, 1991 and May 8, 1996 National Agreements will not be made; however, future lump sum payments will be made in accordance with national agreements.
B. All provisions of the October 31, 1985, November 11, 1991 and May 8, 1996 National Agreements, including all side letters, agreed-upon questions and answers and all decisions of the Joint Interpretation Committee (JIC) will apply to the territory governed by the SP-West UTU (E) collective bargaining agreement unless specifically provided otherwise in this Agreement. Agreement provisions which will apply include, but are not limited to, the following: Interdivisional Service, Basic Day, Expenses Away From Home, Holidays, Road/Yard Work, Incidental Work and Special Relief-Customer Service-Yard Crews.
NOTE: The parties agree that as a part of the protective arrangement associated with this agreement, employees currently holding seniority as a system hostler shall not hereafter be furloughed from the craft of system hostler. During the interim protection under this agreement such employees shall not be furloughed from the location where the employee last worked as a system hostler prior to the implementation of this agreement. However, as merger Hubs are created, the system hostlers shall not be furloughed from the merger Hub which includes the interim location referred to above.
C. The current SP-West eating rule will apply for local, road switcher and hostler service. Yard service will be governed by the national standard for eating in yard service. The Carrier will continue to pay the $12.50 in lieu of allowance for pool freight runs until an area has been finalized in the merger with an agreement or award. Once an area has been incorporated in a merger Hub, then the national $1.50 in lieu of allowance will be paid on all pool freight runs.
D. All current employees (employees working in UTU(E) covered service at the time of implementation of this agreement) will have the entry rate provisions waived and will be paid at 100% of the National wage rate.
E. All new hires after the date of implementation will be subject to the following: entry rates will start at 85% of the national rate provided for in Section III(A), above, for first-year employees; at 90% for second-year employees; at 95% for third- year employees; and, at 100% for fourth year employees. These employees will be entitled to the 5% bump for promotion as set forth in Article VIII of the May 8, 1996 National Agreement. Employees promoted to another craft will not restart their entry rate.
F. Current employees will retain the 100% entry rate of pay percentage at the time of promotion to another craft.
G. The SP-West UTU (E) collective bargaining agreement will be subject to the National
Moratorium set forth in the May 8, 1996, National Agreement, and all local notices and
re-opener provisions in conflict with that Moratorium are null and void.
IV. DISABILITY/LIFE INSURANCE/MEDICAL
A. All current SP-West UTU (E) employees and subsequent new-hire employees who will work under the SP-West UTU (E) collective bargaining agreement will be covered for medical benefits by the applicable National Plan (health, dental and, as of 1/1/99, vision).
B. Current SP-West UTU (E) employees will continue to receive disability and life insurance coverage now afforded them under the SP-West UTU (E) collective bargaining agreement, subject to Section C, below, for six years from January 1, 1998, whether a merger implementing agreement is or is not reached for each hub. After the end of the six year protective period, the disability and life insurance policies will be eliminated from the SP-West UTU (E) collective bargaining agreement. It is understood this Agreement is made without prejudice to the positions of either party regarding whether or not such benefits are subject to preservation under New York Dock. This Agreement will not be cited by any party in any other negotiations or proceedings.
C. The UTU SP-West agreement covering disability premium payments will remain $63.10 This is not a guarantee for benefit levels; it is only a guarantee for the amount of premium paid by the carrier per employee. Such payments will cease in accordance with Section IV(B), above.
D. The UTU Committee may discuss joining the Union Pacific Employees Health Systems
(UPEHS). The Carrier agrees that it is a matter between the UTU and UPEHS.
V. EXTRA BOARDS
When it is determined by the Carrier that a fireman/hostler extra board is needed at a
location, the SP-West UTU(E) fireman/hostler extra board agreement, with the following
amendment, will apply: Letter B of the 8/23/77 Agreement is eliminated.
VI. CLAIMS SETTLEMENT
A. All time claims and grievances of record (a time claim or grievance of record is a time claim or grievance that has been denied by the Carrier at any level, including Timekeeping; any claims involving the GRIDPAD arbitration and any claims involving gainsharing) submitted by either an employee or by the UTU as of December 31, 1996, will be settled and resolved by the payment of $3700.00 to each SP-West UTU(E) represented employee who performed service between January 1, 1990 and December 1, 1996, and who is still in active service with the Carrier or who retired in 1997.
NOTE: It is possible time claim and grievance settlements will be reached with other organizations. Should any individual be entitled to a time claim and grievance settlement payment under this Agreement and under any other agreement, the maximum amount due such an individual will be $3700.00.
B. This settlement does not cover outstanding discipline, medical and non-monetary (such as seniority disputes) cases but covers all other time claims and grievances and gainsharing claims, including those cases which have been docketed for arbitration but not argued and those cases argued at arbitration but where no decision has been rendered.
C. This settlement is final and binding and is made with prejudice regarding the GRIDPAD and gainsharing claims and hereinafter the organization shall not file nor progress any GRIDPAD or gainsharing claims. This settlement is without prejudice or precedent to either party's position with regard to the subject matter of all other time claims and grievances and will not be cited by either party in any future claims conferences, arbitration or negotiation.
D. Since the settlement of all time claims and grievances of record will create a new environment for the grievance process, the following will apply:
1. Formal local conferences are eliminated; and, however, local chairpersons are encouraged to handle claims and other issues directly with Labor Relations' managers, assistant managers and labor relations officers; and,
2. The Carrier will no longer reimburse local chairpersons/union officials or employees for attending time claim/grievance conferences.
3. The SP local chairpersons will have access to Carrier records in a manner consistent
with UP local chairpersons. Access shall be available from home if the local chairperson
owns sufficient technology, or at the on-duty point.
VII. 401K PLAN
The current UTU SP-West 401K Plan will no longer be available for future deposits for monies paid after the close of business December 31, 1997. The current UP 401K Plan applicable to engine service employees (road and yard) will apply to SP-West engine service employees (road and yard) after that date. The parties are negotiating agreements merging the 401K's.
VIII. IMPLEMENTATION
This agreement will be effective in two parts. Article I - Mutual Commitment, Article
II - Protection, Article III - National wages and Rules, Article IV - Disability/Life
Insurance/Medical and Article VI - Claims Settlement shall become effective on the first
day of the first month following notification from the UTU this Agreement has been
approved so long as ten (10) days' notice is given the Carrier. The Carrier will begin
processing the claim settlement checks as soon as possible. In order to give Timekeeping
and CMS sufficient time to make the necessary programming changes, the remaining articles
shall be effective on the first day of the first payroll period following a ten (10) days'
notice by the Carrier to the UTU.
IX. SAVINGS CLAUSE
Should any portion of this Agreement including attachments or any of the attached
Questions and Answers conflict with the SP-West UTU(E) collective bargaining agreement,
this Agreement shall govern.
Signed at San Francisco, California, this _________ day of August, 1997.
FOR THE ORGANIZATION: FOR THE CARRIER:
__________________________ ___________________________
General Chairman UTU AVP Employee Relations
____________________________ ____________________________
Vice-President UTU General Director Labor Relations
QUESTIONS AND ANSWERS
Q1. Will Article 15 (Plant Rationalization) and Article 22 (Scope Rule) remain as part of the SP-West UTU (E) collective bargaining agreement?
A1. No. Both of those articles will be eliminated with the implementation of this Agreement.
Q2. When an employee is force-assigned to a no-bid position under Article V, how long will the employee be required to stay on that assignment?
A2. The employee will remain on the assignment in accordance with existing agreement provisions.
Q3. Under Article VI(A) (Claims Settlement), what constitutes "active service with the Carrier ?"
A3. An employee who is working for Union Pacific Railroad Company or who is on a bona fide leave of absence or who is dismissed and later reinstated.
Q4. Under Article III(D) (National Wages and Rules), will employees on bona fide leaves of absence, dismissed and later reinstated, etc. receive 100% of the National Wage Rate as provided for in that section?
A4. Such employees, upon return to service, will be compensated at 100% of the National Wage Rate.
Q5. Will SP-West engine service employees (not including UP borrow outs on the SP) with a seniority date prior to June 1, 1997, working under the provisions of the SP-West UTU(E) collective bargaining agreement who are on a bona fide leave of absence or dismissed and later reinstated eligible for protection under this agreement upon return to active service?
A5. Yes. The TPAs for such employees will be calculated in accordance with the procedure set forth in Paragraph E of Article II.
Q6. In Article V, will employees on a bona fide leave of absence or dismissed and later reinstated be considered "current SP-West employees" who are now eligible for the disability and life insurance coverage provided for in that paragraph?
A6. Yes, upon return to service if previously eligible and entitled to those benefits.
Q7. How will the TPA be calculated for an employee who has less than 12 months compensated service in 1996.
A7. Standard New York Dock conditions will apply. If the employee has more than twelve months service but was off for an entire month then the next previous month with earnings is used, if an employee only had nine months total service then the total is divided by nine.
Q8. How will reductions from protection be calculated?
A8. In an effort to minimize uncertainty concerning the amount of reductions and simplify this process, the parties have agreed to handle reductions from Interim and Expanded Protection as follows:
1. Pool freight assignments- 1/15 of the monthly test period average will be reduced for each unpaid absence of up to 48 hours or part thereof. Absences beyond 48 hours will result in another 1/15 reduction for each additional 48 hour period or part thereof.
2. Five day assignments- 1/22 of the monthly test period average will be reduced for each unpaid absence of up to 24 hours or part thereof. Absences beyond 24 hours will result in another 1/22 reduction for each additional 24 hour period or part thereof.
3. Six and Seven day assignments- The same process as above except 1/26 for a six day assignment and 1/30 for a seven day assignment.
NOTE: Assigned rest days for five and six day assignments will not be used to offset protection payments.
4. Extra board assignments- 1/30 of the monthly test period average will be reduced for each unpaid absence of up to 24 hours or part thereof. Absences beyond 24 hours will result in another 1/30 reduction for each additional 24 hour period or part thereof. Absences on the extra board shall be calculated from the time of unavailability (layoff, missed call, etc) until the next time called for service. For example: If an employee lays off on Monday at noon, marks up the next day Tuesday and does not work until 2AM on Wednesday then they shall be off forprotection purposes for thirty-eight (38) hours and shall be deducted 2/30 of their protection.
Q9. Upon implementation or imposition of the negotiated merger proposal for each Hub, what protection options will an SP-West UTU(E) represented employee have?
A9. An SP-West UTU(E) represented employee will have to elect between the protection provided negotiated in the merger proposal and what is negotiated in this Agreement with respect to wage protection. Any relocation protection will be covered in the merger proposal.
Q10. Due to the claim settlement in Article VI(A), how will TPAs be calculated?
A10. The lump sum claim settlement will not be part of the TPA. However, claims paid in the normal claim handling of 1996 will be included if applicable.
August 6, 1997
Side Letter No. 1
Gentlemen:
This refers to our negotiations modifying the SP-West UTU collective bargaining agreement and that portion dealing with protection offsets when not working. These offsets were set forth in the Questions and Answers. During our discussions the UTU pointed out that current agreements permit Local Chairperson to layoff of pool turns and the extra board to handle union business and to hold their turns and if they move to first out they are held first out until they mark up again. It was the UTU's position that the offsets for pool layoffs and extra board layoffs should not be the same for those Local Chairperson who hold their turn as compared to regular employees who are not governed by these same conditions.
In recognition of the difference it was agreed that Local Chairperson who lay off Union Business would be deducted 1/30 for each 24 hour period or part thereof laid off until marked back up when holding pool or extra board assignments and they hold their turns. If they do not hold their turn then the regular offset provisions will apply.
Should the above properly reflect our understanding please sign below.
Yours truly,
W.S. Hinckley
General Director Labor Relations
Agreed:
_________________________
General Chairman UTU
________________________
Vice President UTU
August 6, 1997
Side Letter No. 2
Gentlemen:
In our SP-West UTU(E) Collective Bargaining Agreement modifications we created a new form of wage protection called "extended protection" in Article II(G). The question arose in negotiations concerning the status of this protection since most protection is regulatory, i.e. New York Dock, Mendicino, Oregon Short Line, etc or National, i.e. Article IX Interdivisional Protection.
We agreed that the "extended protection" carries the same force and affect as the other types of protection. We emphasized this in Question and Answer No. 9 which allows an employee to select "extended protection" over New York Dock protection in merger areas. The same would be true in the future if a transaction provided some type of protection, such as Mendicino, an employee covered under "extended protection" would have to elect between keeping this protection or accepting the protection under the new transaction.
Should the above properly reflect our understanding please sign below.
Yours truly,
W.S. Hinckley
General Director Labor Relations
Agreed:
______________________
General Chairman UTU
______________________
Vice President UTU
August 6, 1997
Side Letter No. 3
Mr. John Previsich
General Chairman UTU
1860 El Camino Real Suite 201
Burlingame, CA 94010
Dear Sir:
This is to confirm the intent of the attached Agreement insofar as hostling service is concerned. The parties agree that the intent is to modify the SP Western Lines Agreement governing fireman and hostlers to provide for the performance of hostling service.
Article III Section (B) of this Agreement provides that the October 31, 1985 National Agreement will apply to the territory governed by this Agreement. It is recognized that Articles 1 through 4 and Side Letter No. 1 of the August 28, 1994 UTU(E)SP West Agreement had previously modified the application of the October 31, 1985 National Agreement with regards to hostling service on SP Western Lines. Since modifications are being modified it was the consensus that further clarification was appropriate.
Article III Section (B) of this Agreement will have the following impact on Articles 1 through 4 and Side Letter No. 1.
(1) Section B of Article 1 of the 1994 Agreement is revised to read as follows:
"Only system hostlers or fireman who established seniority in engine service subsequent to June 30, 1991, will be used to perform hostling service, except as set forth in "Article IV, Section 2 of the National Manning Agreement, as revised, and the handling of locomotives by road crews permissible under applicable road/yard rules."
(2) Articles 2, 3 and 4 remain.
(3) Side Letter No. 1 is eliminated.
(4) The intent of the foregoing modifications is to permit application of the
incidental work provisions of the October 31, 1985 agreement including the use of yard
crews as set forth therein.
Yours truly,
W.S. Hinckley
General Director Labor Relations
Agreed:
________________________
General Chairman UTU
ATTACHMENT "B"
UNION RAILROAD COMPANY
1416 DODGE STREET
OMAHA, NEBRASKA 66179
August 6, 1997
Mr. John Previsich
General Chairman UTU(E)
1860 El Camino Real, Suite 201
Burlingame, CA 94010
Dear Sir:
This has reference to our conversation tints date concerning the calculation of Test Period Averages (TPA) for employees eligible for protection under this Agreement. As information, it was agreed that items excluded from calculation of TPAs Include, but are not limited to, the following:
Non-agreement earnings (unless affected while non-agreement)
Payments in lieu of vacation
Lump sum or bonus payments
Protection payments from previous transactions
Away from home terminal and lodging allowances
Items which are included in the calculation of TPAs include, but are not limited to, the following:
The $12 50 in lieu of meal allowances [see Article II(B)]
Claim settlements paid In 1996, regardless of when earned (except lump sum claim settlements)
Penalty payments
Off-assignment and ahead of shift compensation
Items included in the calculation of the TPA shall, when paid during the protective period, be used as an offset when calculating the protective allowance due an employee. There shall be no protective allowance offset pen need for compensation items not included in the TPA. For example, the lump sum claim settlement in Article Vll will not be used to offset protection.
One of the questions discussed pertained to the handling of "off assignment" and "ahead of shift" earnings. For example, if an employee was called and worked ahead of shift and received additional compensation for the Service in accordance with applicable agreement rules (such as difference in earnings or the earnings of the later assignment in addition to what the employee earned on the earlier assignment) all such compensation shall be included when calculating the employee's TPA.
Additionally, filing a claim for a displacement allowance is not required 85 protective benefits are calculated automatically and paid on regular payroll vouchers.
The above is recognized as a special agreement and Is without precedent or prejudice to
either party's position regarding the correct method of handling TPAs.
Your truly.
W.S. Hinckley
General Director Labor Relations
Agreed:
______________________
UTU General Chairperson
ATTACHMENT "A"
UNION - UTU BASE MILES-100 OVERTIME DIVISOR-12.50 SHORT CREW - $13.85
AIR PAY-$06.55
PAY DAILY BASIC ARBITRARY BASE
POSITION CODE RATE RATE RATE
REGULAR FOREMAN 751 143.33 108.78 143.33
HELPER 751 137.16 104.10 137.16
HUMP / TRIM FOREMAN 752 153.27 116.38 153.27
HELPER 752 137.16 104.10 137.16
FOOTB0ARD/YARDMASTER 753 155.28 117.85 143.33
HELPER 753 131.16 104.10 137.16
SWITCHTENDER 754 130.74 099.20 130.74
RETARDER OPERATOR 755 150.03 113.91 150.03
ENGINE HERDER 756 137.16 104.10 137.16
HELPER 000 000.00 000.00 000.00
HOSTLER 757 135.47 102.81 135.47
INSIDE HOSTLER 758 132.72 100.71 132.72
HOSTLER HELPER 759 130.13 098.74 130.13
HUMP FOREMAN 000 000.00 000.00 000.00
HELPER 000 000.00 000.00 000.00
TRIM FOREMAN 000 000.00 000.00 000.00
HELPER 000 000 00 000.00 000.00
WASH RACK PILOT 760 165.96 126.95 165.96
YARDMASTER 000 000.00 000.00 000.00
UTILITY 751 143.33 108.78 143.33