ARTICLE IX - PRODUCTIVITY FUND
          Section 1.   (a)  Company Contribution.   For each
yard  tour of duty or road freight  service trip that a crew
is operated with  a conductor or foreman and one brakeman or
yard helper, the  Company will pay into the Employes' Produc-
tivity Fund the sum of $48.25.  This payment will be made on
a pay  period cash basis for  the sole and exclusive benefit
of  the  eligible  protected  road  freight  train and  yard
service employes  and is to  be considered as  an account or
trust  of  and  for the  protected  employes  as  sharing in
Productivity Savings.  The $48.25 payment into the Employes'
Productivity Fund is  not subject to wage and cost-of-living
allowance increases.
          (b)    Productivity Accounts.   Separate   employe
Productivity Accounts  shall be maintained  for each defined
district  as determined by the General  Committee of Adjust-
ment  and Director of Labor  Relations.  At  the end of each
year,  each  protected employe  performing  service  in that
particular  district  will  share  in  the division  of  the
Employes' Productivity Fund, according to the number of yard
tours  of duty or road freight trips worked in that district
during that  calendar year.  For equity purposes,  each paid
vacation  day,  holiday,  guarantee  day under  Rule 59  and
personal  leave days taken by an employe will  be considered
as a  yard tour  of duty or  road freight  train  trip to be
credited   in   computing  the   employe's   share   of  the
Productivity Fund.
          (e)   Limitation.  The  productivity sharing  pro-
vided  for above  Is limited  to the extent  that  the total
amount  of  a   protected  employe's annual   share  of  the
Employes' Productivity Fund cannot exceed one-third  (1/3) of
said employe's total compensation for that calendar year.
          When  a protected employe has shares in  more than
one Productivity  Account, the amounts due from each account
will  be combined and  the total  amount paid  cannot exceed
one-third (1/3) of the employe's total compensation for that
calendar year.
          When  computing  one-third (1/3)   of a  protected
employe's total compensation  in any calendar year, payments
or credits received  from the Productivity Fund  during such
calendar year will not be included in the computation.
          (d)   Guarantees.    Payment  made   to  protected
employes out of  the Productivity Fund shall not  be used in
the computation or offset of any monetary guarantees.
                Vacation Pay.   Payments made  to  protected
employes out of the Productivity Fund  shall not be included
in the compensation used as a basis for determining vacation
pay.
          (f)    Part-Time Employment.    A  part-time   UTU
officer or representative who  is unable to work his assign-
ment in road freight or yard service due to being engaged in
official union  business will  receive credit for  such days
(of service) or tours of duty lost toward the number of days
shared in the Fund.  Verification for credits earned will be
furnished by the United Transportation Union.
          A Carrier officer  or Union officer/representative
who works  a part  of the  year in  the craft of  conductor,
brakeman or  yardman will receive  credit for the  number of
trips or tours  of duty toward the number  of days shared in
the Fund.
          Section 2.  Computation  of Shares.  The value  of
the  employe's share in the  division  of  the  Productivity
Fund, calculated  according to the  number of yard  tours of
duty or road freight  trips worked at the  end of each year,
will be determined in accordance with the following example:
     EXAMPLE:
     Amount in Fund at the end of year......$2,820,408.00
     Number of protected employes..................621
     Total number of road freight
       service trips and yard tours of
       duty by protected employes only..........66,208
       $2,820,408: 66,208  =  $42.60
     Each protected employe receives
       $42.60 x the number of his trips
       or tours of duty, e.g. 221 trips x 42.60=$9,414.60
     One-Third Cap Limitation:
     EXAMPLE:
     A protected employe earns $27,000 for
     service performed.  The employe's payment
     from the fund for the year could not
     exceed $9,000.00 (1/3 of $27,000.00).
          Section 3.  Productivity Fund Phase-Out.  The Com-
pany's regular pay period cash deposits to the Employes'
Productivity Fund  may  be  discontinued  after  the  actual
dollar amount deposited is  equal to not  less than the full
amount  required  to  pay  all  protected  employes  a  full
one-third (1/3) of their annual compensation for the preced-
ing calendar year,  adjusted  to include  cost-of-living and
general wage increases due in the current calendar year.  If
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the  amount  paid  is not  adequate  to  pay all  monies  due
under this  Agreement,   the Company will make up the deficit.
            Section  4.     Productivity Fund Agreement.  The 
necessary arrangements for the establishment and administration
of the Employes' Productivity Fund in compliance with ERISA and 
other  legal  requirements   will  be finalized   within  one
hundred   twenty  days from  the  effective
date  of this  Agreement.
            Q-l: Do the special allowance and the Employes'
                Productivity Fund payment apply to held
                time,  runarounds, deadheads, call  and
                release (no work performed), guarantees,
                holiday pay when service not performed on
                holiday, personal  leave  pay, vacation
                pay, penalty days paid due to violation
                of agreement rules, and the like?
            A-l: As a general rule, no.  These payments
                cover road service trips and yard tours
                of  duty actually worked where the addi-
                tional responsibility in working with a
                reduced  crew  is   involved.  However,
                Q-2/A-2 and 0-5/A-5 provide the exceptions. ,
            Q-2: Will a deadhead trip by a reduced crew
                (one conductor and one brakeman) result
                in the Productivity Fund being credited?
            A-2: Yes. However, the Special Allowance will
                not be paid.
            Q-3: Will a relief deadhead trip made by an
                employe (single individual) be taken into
                account as a credit share in the Produc-
                tivity Fund?
            A-3: Yes.
            Q-4: Will a compensable deadhead trip made by
                either a full or  reduced crew be taken
                into account  as a credit  share in the
                Productivity Fund?
            A-4: Yes.
            0-5: In reference to Article V, Section 2(e),
                and  the conductor  is  left alone  and
                deadheaded to his home terminal will the
                Productivity Fund be credited and allowed
                the special allowance and will this tour
                of duty be counted as a credit share in
                the Productivity Fund?
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            A-5: The  Productivity Fund  will be  credited
                 but  the employe will not be  allowed the
                 special  allowance.   The   employe  will
                 receive  a credit  share  in the  Produc-
                 tivity Fund.
            Q-6: Do  the number of  days not worked  while
                 protecting  the  extra board  go  to  the
                 credit  of the protected  employe  toward
                 the number of tours of  duty credited for
                 the  purpose of  sharing  in the  Produc-
                 tivity Fund?
            A-6: No,  only  actual  service  performed  in
                 freight or yard service is so credited.
            Q-7: Will  tours  of  duty  in  road  or  yard
                 service  on  single position  assignments
                 such as pilots,  skatemen, switch tenders
                 and  car  retarder  operators  worked  by
                 protected  employes be  credited in  com-
                 puting  their share of  the  Productivity
                 Fund?
            A-7: Yes, but the employes do  not receive the
                 special  allowance nor  will the  Produc-
                 tivity Fund be credited.
            Q-8: Under Article III, Sections  l(a) and (b)
                 of the June  25, 1964 National Agreement,
                 Manning  Self-Propelled Machines, do  the
                 reduced crew conditions apply?
            A-8: No, but  trainmen/yardmen working assign-
                 ments  covered by   that  Agreement  will
                 receive  a credit  share  in the  Produc-
                 tivity Fund.
            Q-9: Does a  reduced  crew that  is called  on
                 duty,  performs  service  (work), and  is
                 subsequently released,  qualify  for  the
                 special  allowance and will  the  Produc-
                 tivity Fund be credited?
            A-9: Yes,  if   service  (work)  is   actually
                 performed  by  the  reduced  crew.    The
                 special allowance will be allowed and the
                 Productivity Fund will  be credited.   If
                 no service (work) is performed,  the crew
                 will not qualify for  the special  allow-
                 ance nor will  the  Productivity Fund  be
                 credited even though  the crew qualified
                 for a payment under Schedule Rules. -
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                 NOTE:     The  phrase   'Jservice (work)"
                           shall mean, in  accordance with
                           the  accepted meaning  of  that
                           phrase  on this  property,  the
                           performance of  actual work  in
                           connection with   their  train.
                           Among the items not  considered
                           work  are reporting  for  duty,
                           registering,   getting   bills,
                           getting train orders; etc.
           Q-10: How many shares will be credited for each
                 week  of vacation  taken  by a  protected
                 employe in road freight or yard service?
           A-10: Seven.
           0-11: In the event of the death of  a protected
                 employe who  is entitled  to payment from
                 the Productivity  Fund, will his part  be
                 paid to his estate or beneficiary?
           A-ll: Yes, when disbursements are made.
           Q-12: Will  the  loss  of  earnings   from  the
                 Carrier by a part-time Union Officer  who
                 is unable to work in road freight or yard
                 service due to performing official union
                 work be computed  in arriving at  the 1/3
                 cap as provided in Article IX?
           A-12: Yes, and  it shall be the Organization's
                 responsibility  to   timely  advise   the
                 Carrier in  writing  with  the  necessary
                 information.
           Q-13: Does the Productivity Fund apply only  to
                 a single yard  tour of duty  or a  single
                 (one-way) road freight service trip?
           A-13: Yes.