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MEMORANDUM OF AGREEMENT

between the

UNION PACIFIC RAILROAD COMPANY
for the Territory Eastern District

and the
UNITED TRANSPORTATION UNION

Zone 500 - Salt Lake City Hub
Recall for Conductor Vacancies

The provisions set forth in Article VII of the September 18,1997 Salt Lake City Hub Supplemental Agreement continues to apply with the following additional provisions to only be utilized in the event Carrier is unable to fulfill a permanent conductor vacancy on a regular position and/or extra board:

IT IS AGREED:

Section 1 - Recall Districts

To avoid recalling demoted conductors from long distances to fill permanent vacancies, the parties agree to establish the following recall districts:

District Location/Territory
1. Ogden and the vacancies protected by the Ogden Extra Boards.
2. Salt Lake City North and the vacancies protected by the Salt Lake City North Extra Boards.
3. Salt Lake City South and the vacancies protected by the Salt Lake City South Extra Boards.
4. Provo and the vacancies protected by the Provo Extra Boards.
5. Helper and the vacancies protected by the Helper Extra Boards.
6. Milford and the vacancies by the Milford Extra Boards.
7. Elko and the vacancies protected by the Elko Extra Boards.
8. Las Vegas and the vacancies protected by the Las Vegas Extra Boards.


Section 2 - Recall Order by District

When recalling to fill permanent conductor vacancies on regular positions and/or extra boards, the order of such recall will be the senior demoted conductor within the recall district steps as follows:

District Recall

Steps By District

Vacancies

District

1st

2nd

3rd

4th

5th

6th

7th

8th

Ogden

1

1

2

3

4

7

5

6

8

Salt Lake City North

2

2

3

1

4

7

5

6

8

Salt Lake City South

3

3

2

1

4

7

5

6

8

Provo

4

4

3

2

5

1

6

8

7

Helper

5

5

4

3

2

1

6

8

7

Milford

6

6

4

3

2

8

5

7

1

Elko

7

7

1

2

3

4

6

5

8

Las Vegas

8

8

6

4

5

3

2

1

7

Section 3

A. No claims will be filled by or in behalf of an employee as a result of Carrier utilizing the steps of recall above, rather than a zone recall of the senior demoted conductor.

B. Except as provided herein, all other provisions of the Salt Lake City Hub Merger Award and Supplemental Agreement, as well as the basic rules of the UTU Eastern District Collective Bargaining Agreement, remain in effect.

Section 4

This Agreement will become effective on October 15, 1998 and is made without prejudice to either party's position and will not be cited as a precedent in any future situation. This agreement may be canceled in the future by the serving of a thirty (30) day advanced notice by either party signatory hereto.

Signed this 23rd day of September, 1998.

FOR THE                                                                 FOR THE
UNITED TRANSPORTATION UNION:             UNION PACIFIC RAILROAD COMPANY:

A. Martin III                                                                L. A. Lambert
General Chairman, UTU                                         General Director, Labor Relations