ARTICLE VII PRODUCTIVITY FUND

(1) For each tour of duty/trip operated on the territory with a crew consisting of one (1) conductor/foreman and one (1) brakeman/helper over the number of trainmen on the Reserve Board, the Carrier will pay into the appropriate Employees1 Productivity Fund the sum of $48.25.

NOTE 1: If there were 10 Local and Extra Assignments, Yard jobs and Pool Turns, and 10 trainmen on the Reserve Board, no payments into the fund will be made.

NOTE 2: If there were a total of 10 Local and Extra Assignments, Yard jobs and Pool Turns, and 5 trainmen on the Reserve Board, payments would be made into the Productivity Fund for 5 Local and Extra assignments, Yard jobs and Pool Turns on a tour of duty/trip basis in accordance with the basic Crew Consist Agreement.

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Q. Are Productivity Fund payments (plugs) offset by Reserve Board positions seven days per week?

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A. Since Reserve Board positions are paid on a five day per week basis, the fund plugs are offset by 5/7fs (71%) of Reserve Board positions on a daily basis.

NOTE: See Attachment III for an example of how Reserve Board offsets are computed.

(2) The Productivity Fund payments will be made and distributed in accordance with the basic Crew Consist Agreement.