AGREEMENT

THIS AGREEMENT, made this 29th day of January, 1975, by and between the participating carriers listed in Exhibit A, attached hereto and made a part hereof, and represented by the National Carriers' Conference Committee, and the employees of such carriers shown thereon and represented by the United Transportation Union, witnesseth:

Section 1 - First General Wage Increase (for others than Dining Car Stewards and Yardmasters)

(a) Effective January 1, 1975, all standard basic daily and mileage rates of pay of employees represented by the United Transportation Union in effect on December 31, 1974 shall be increased by an amount equal to 10%.

(b) In computing the increase for enginemen under paragraph (a) above, 10% shall be applied to the standard basic daily rates of pay, and 10% shall be applied to the standard mileage rates of pay, respectively, applicable in the following weight-on-drivers brackets, and the amounts so produced shall be added to each standard basic daily or mileage rate of pay:

Passenger - 600,000 and less than 650,000 pounds
Freight   - 950,000 and less than 1,000,000 pounds
            (through freight rates)
Yard Engineers - Less than 500,000 pounds
Yard Firemen   - 250,000 and less than 300,000 pounds (separate computations covering five-day rates and other than five-day rates)

(c) The standard basic dally and mileage rates of pay produced by application of the Increases provided for in this Section 1 are set forth in Appendix 1, which is a part of this Agreement.

Section 2 - Second General Wage Increase (for others than Dining Car Stewards and Yardmasters)

Effective October 1, 1975, all standard basic daily and mileage rates of pay of employees represented by the United Transportation Union in effect on September 30, 1975, shall be increased by an amount equal to 5 percent, computed and applied for enginemen in the same manner as the first general wage increase provided under Section 1 above. The standard basic daily and mileage rates of pay produced by application of this increase are set forth in Appendix 2, which is a part of this Agreement.

Section 3 - Third General Wage Increase (for others than Dining Car Stewards and Yardmasters)

Effective April 1, 1976, all standard basic daily and mileage rates of pay of employees represented by the United Transportation Union in effect on March 31, 1976, shall be increased by an amount equal to 3 percent, computed and applied for enginemen in the same manner as the first general wage increase provided under Section 1 above. The amount of any cost-of-living allowance which may be in effect will not be included with basic rates in computing the amount of this increase. The standard basic daily and mileage rates of pay produced by application of this increase are set forth in Appendix 3, which is a part of this Agreement.

Section 4 - Fourth General Wage Increase (for others than Dining Car Stewards and Yardmasters)

Effective July 1, 1977, all standard basic daily and mileage rates of pay of employees represented by the United Transportation Union in effect on June 30, 1977 shall be increased by an amount equal to 4 percent, computed and applied for enginemen in the same manner as the first general wage increase provided under Section 1 above. The amount of any cost-of-living allowance which may remain in effect after a portion of the allowance has been incorporated intc basic rates pursuant to Article II, Section l(d), will not be included with bas: rates in computing the amount of this increase. The standard basic daily and mileage rates of pay produced by application of this increase will be published as soon as the amount to be incorporated into basic rates effective June 30, 1977, referred to above, is known.

(i) (a) In engine service, all arbitraries, miscellaneous rates or special allowances, based upon mileage, hourly or daily rates of pay, as provided in the schedules or wage agreements, shall be increased commensurate with the wage increases provided for in this Article I.

miscellaneous rates or special allowances, including those expressed in terms of miles, as provided in the schedules or wage agreements, shall be increased under this Agreement in the same manner as heretofore increased under previous wage agreements.

(ii) In determining new hourly rates, fractions of a cent will be disposed of by applying the next higher quarter of a cent.

(iii) Daily earnings minima shall be increased by the amount of the respective daily increase.

(iv) Standard monthly rates and money monthly guarantees in passenger train service shall be thirty times the new standard daily rates. Other than standard monthly rates and money monthly guarantees shall be so adjusted that differentials existing as of December 31, 1974 shall be preserved.(v) Existing monthly rates and money monthly guarantees applicable in train service other than passenger will be increased in the same proportion as the daily rate for the class of service involved is increased.

(vi) Existing money differentials above existing standard daily rates shall be maintained.

(vii) In local freight service, the same differential in excess of through freight rates shall be maintained.

(viii) The differential of $-4.00 per basic day In freight and yard service, and 4c per mile for miles In excess of 100 in freight service, will be maintained for engineers working without firemen on locomotives on which under the former National Diesel Agreement of 1950 firemen would have been required.

(ix) In computing the increases in rates of pay effective January 1, 1975 under Section 1 for firemen, conductors, brakemen and flagmen employed in local freight service, or on road switchers, roustabout runs, mine runs, or in other miscellaneous service, on runs of 100 miles or less which are therefore paid on a daily basis without a mileage component, whose rates had been Increased by "an additional $.40" effective July 1, 1968, the 107. increase shall be applied to daily rates in effect December 31,1974, exclusive of car scale additives, local freight differentials, and any other money differential above existing standard daily rates. For firemen, the rates applicable in the weight-on-drivers bracket 950,000 and less than 1,000,000 pounds shall be utilized in computing the amount of increase. The same procedure shall be followed in computing the increases of 5 percent effective October 1, 1975, 3 percent effective April 1, 1976, and 4 percent effective July 1, 1977. The rates produced by application of the standard local freight differentials and the above-referred-to special increase of "an additional $.40" to standard basic through freight rates of pay are set forth in Appendixes 1, 2 and 3.

(a) Existing basic dally and mileage rates of pay other than standard shall be increased, effective as of the effective dates specified in Sections 1 through 4 hereof, by the same respective percentages as set forth therein, computed and applied In the same manner as the standard rates were determined.

(b) The differential of $4.00 per basic day in freight and yard service, and 4c per mile for miles in excess of 100 In freight service, will be maintained for engineers working without firemen on locomotives on which under the former National Diesel Agreement of 1950 firemen would have been required.

(c) Daily rates of pay, other than standard, of firemen, conductors, brakemen and flagmen employed In local freight service, 01 on road switchers, roustabout runs, mine runs, or in other miscellaneous se vice, on runs of 100 miles or less which are therefore paid on a daily basis without a mileage component, shall be increased as of the effective dates specified in Sections 1 through 4 hereof, by the same respective percentage as set forth therein, computed and applied in the same manner as provided 1 paragraph (ix) above.

(xi) Wage rates resulting from the increases provided for : Sections 1, 2, 3 and A of this Article I, and in Section l(d) of Article 13 will not be reduced under Article II.

Effective January 1, 1975 all basic monthly rates of pay of dining car stewards and yardmasters represented by the United Transportation Union in effect on December 31, 1974 shall be increased by 10%.

Effective October 1, 1975 - 5%
Effective April 1, 1976 - 3%
	The amount of any cost-of-living allowance which may be in effect will not be included with basic rates in computing the amount of this increase.
Effective July 1, 1977 - 4%
	The amount of any cost-of-living allowance which may remain in effect after a portion of the allowance haa been incorporated into basic rates pursuant to Article II, Section l(d), will not be included vith basic rates in computing the amount of this increase.

Rates of pay resulting from the increases provided for in this Section 6, and Section l(d) of Article II, will not be reduced under Article II

(a) Cost-of-living adjustments will be determined from the "Consumer Price Index - United States city average for urban wage earners and clerical workers - All Items - Unadjusted" (1967 - 100) as published by the Bureau of Labor Statistics, U. S. Department of Labor, and hereinafter referred to as the BLS Consumer Price Index. The first cost-of -living adjustment shall be made effective January 1, 1976 based on the BLS Consumer Price Index for September 1975 as compared with such index for March 1975. Further cost-of-living adjustments shall be made effective the first day of each sixth month thereafter based on the BLS Consumer Price Indexes for the respective months shown in the following table, as provided in paragraphs (f) and (g):

       BLS Consumer         Effective Date of
     Price Index for         Adjustment

      September 1975        January 1, 1976
      March 1976            July 1, 1976
      September 1976        January 1, 1977
      March 1977            July 1, 1977

(b) While a cost-of-living allowance is in effect, such cost-of-living allowance will apply to straight-time, overtime, vacations, and holidays, and to special allowances and arbitraries, in the same manner as basic wage adjustments have been applied in the past.

(c) The amount of the cost-of-living allowance, if any, which will be effective from one adjustment date to the next may be equal to, or greater or less than, the cost-of-living allowance in effect in the preceding adjustment period.

(d) (i) Effective December 31, 1976, 75 percent of the cost-of-living allowance then payable will be incorporated into basic rates of pay for all purposes, and the cost-of-living allowance will be reduced by 75 percent.- 6 -

(ii) Effective June 30, 1977, the remainder of the cost-of-living allowance resulting from application of paragraph (d)(i), less the amount of any downward adjustment in the cost-of-living allowance effective January 1, 1977 by reason of a decline in the BLS Consumer Price Index, will be incorporated into basic rates of pay for all purposes, and the cost-of-living allowance will be reduced commensurately.

(iii) Effective December 31, 1977, 50 percent of the cost-of-living allowance then payable will be incorporated into basic rates of pay for all purposes, and the cost-of-living allowance will be reduced by 50 percent.

(e) The cumulative amount of the coat-of-living allowance which may be in effect at any time shall not exceed the maximum amount shown in the following table:

     January 1, 1976        12 cents per hour
     July 1, 1976           28 cents per hour
     January 1, 1977        45 cents per hour, as adjusted by Note 1.
     July 1, 1977           68 cents per hour, as adjusted by Note 2.

Note 1 -	Less 75 percent of the allowance which had been payable as of December 31, 1976 prior to application of paragraph (d)(i).
Note 2 -	Less the entire amount of the allowance payable as of December 31, 1976 which was incorporated into basic rates pursuant to paragraphs (d)(i) and (d)(ii).

(f) (1) The cost-of-living allowance effective January 1, 1976, July 1, 1976, and January 1, 1977 will be one cent per hour for each full four-tenths point by which the BLS Consumer Price Index for the respective month shown in the first column of paragraph (a) exceeds such index for March 1975, but will not be more than the maximum amount for the respective date shown in paragraph (e).

(ii) In determining the cost-of-living allowance effective January 1, 1977, there will be deducted from the amount determined under paragraph (f)(l) above 75 percent of the cost-of-living allowance which had been payable as of December 31, 1976 prior to application of paragraph (d)(i).

NOTE:

As soon as the BLS Consumer Price Index for March 1975 becomes available, a table will be prepared showing the amount of the cost-of-living allowance, prior to the December 31, 1976 incorporation into basic rates of 75 percent of the allowance then payable, for each BLS Consumer Price Index figure.

(g) The cost-of-living allowance effective July 1, 1977 will be the allowance effective January 1, 1977, increased by one cent per hour for each full three-tenths point by which the BLS Consumer Price Index for March 1977 exceeds such Index for September 1976. If the BLS Consumer Price Index for March 1977 is less than such index for September 1976, the cost-of-living allowance effective July 1, 1977 will be the allowance effective January 1, 1977, reduced by one cent per hour for each full three-tenths point by which the BLS Consumer Price Index for March 1977 is less than such index for September 1976. If the amount of the cost-of-living allowance which became effective January 1, 1977 was limited by operation of the 45-cent maximum in paragraph (e) above, the increase or reduction will be applied to the amount of the cost-of-living allowance which would have become effective January 1, 1977 in the absence of such 45-cent maximum. In any event the cost-of-living allowance effective July 1, 1977 will not be more than 68 cents per hour less the entire amount of the allowance payable as of December 31, 1976 which was incorporated into basic rates pursuant to paragraphs (d)(1) and (d)(11).

NOTE:

As soon as the BLS Consumer Price Index for September 1976 becomes available, a table will be prepared showing the amount of the cost-of-living allowance for each BLS Consumer Price Index figure.

(h) Continuance of the cost-of-living adjustment is dependent upon the availability of the official monthly BLS Consumer Price Index in its present form and calculated on the same basis as the Index for March 1975. except that, if the Bureau of Labor Statistics, U. S. Department of Labor, should during the effective period of this Agreement revise or change the methods or basic data used in calculating the BLS Consumer Price Index in such a way as to affect the direct comparability of such revised or changed index with the index for March 1975 or the index for September 1976, then that Bureau shall be requested to furnish a conversion factor designed to adjust the revised index to the basis of the index(es) for March 1975 and/or September 1976. described in paragraph (a) of this Section 1.

In application of the cost-of-living adjustments provided for by Section 1 of this Article II, the cost-of-living allowance will not become part of basic rates of pay except as provided in Section l(d). Such allowance will be applied as follows:

(a) For others than dining car stewards and yardmasters, each one cent per hour of cost-of-living allowance will be treated as an in-crease of 8 cents in the basic daily rates of pay produced by application of Sections 2, 3 and 4 of Article I and by Section l(d) of this Article II. The cost-of-living allowance will otherwise be applied in keeping with the provisions of Section 5 of Article I.

(b) For dining car stewards, each one cent per hour of cost-of-living allowance will be treated as an increase of $1.80 in the monthly rates of pay produced by application of Section 6 of Article I and by Section l(d) of this Article II.

(c) For yardmasters, each one cent per hour of cost-of-living allowance will be treated as an increase of $2.00 in the monthly rates of pay produced by application of Section 6 of Article I and by Section l(d) of this Article II.

Section 1. In 1976, Christmas Eve (the day before Christmas is observed) will be added to the list of paid holidays for employees receiving holiday pay. Details of the holiday provision will be agreed upon by the parties by July 1, 1975.

Section 2. The National Carriers' Conference Committee, on behalf of the carriers party to this Agreement, may exercise a national option prior to January 1, 1976 to substitute Good Friday for the birthday holiday effective January 1, 1976, for the employees represented by the United Transportation Union.

Commencing June 1975, the carriers will provide each General Chairman with a list of employees who are hired or terminated, their home addresses, and Social Security numbers if available, otherwise the employees' identification numbers. This information will be limited to the employees covered by the collective bargaining agreement of the respective General Chairmen. The data will be supplied within 30 days after the month in which the employee is hired or terminated. Where railroads can not meet the 30-day requirement, the matter will be worked out with the General Chairman.

Subject to the Letter of Understanding of January 1975 (Attachment 1), the benefits now provided under Group Policy Contract GA-23000 are to be continued during the three-year period commencing January 1, 1975, the railroads to pay the premium cost offset by such amounts as may be available from the Special Account. Details of the agreement covering the foregoing to be worked out by the parties by July 1, 1975.

A National Dental Plan will be established to be effective March 1, 1976 with features as described in Memorandum identified as "Description of National Dental Plan" (Attachment 2). The plan will be established and administered as follows:

(b) The railroads and the unions will jointly invite insurers to submit proposals, and will select the insurer which submits the most favorable proposal to issue an insurance contract to the railroads as the policy-holder.

(c) The insurer will furnish financial data, statistical and actuarial reports, and claim experience information to the unions in the same detail and at the same time that it furnishes such data to the railroads.

(d) Any dividends or retroactive rate refunds or credits will be paid into a special fund established for such purpose, to be held by the insurer. Withdrawals may be made from such fund only to provide dental care benefits to employes unless otherwise agreed to.

(e) No notices relating to dental benefits or the financing thereof shall be served prior to January 1, 1977 (not to become effective before January 1, 1978). If no agreement thereon is reached prior to January 1, 1978 the railroads parties to this agreement will continue payments to the insurer of the dental plan at the rates previously established as the premium rates under such plan until the payment rates are changed or modified under the provisions of the Railway Labor Act, and the policyholder railroads will make arrangements to provide such benefits as can be financed from such payments.

In the event that national health legislation is enacted during the three-year period commencing January 1, 1975, benefits and payments will be integrated so as to avoid duplication, and any savings resulting from such integration will be credited to the Special Account maintained in connection with the health and welfare plan or to the special fund referred to in Article VI (d), or will be apportioned between such Account and such fund, according to the source of such savings.

This Agreement is subject to approval of the courts with respect to participating carriers in the hands of receivers or trustees.*

(a) The purpose of this Agreement is to fix the general level of compensation during the period of the Agreement and is in settlement of the dispute growing out of notice served upon the carriers listed in Exhibit A by the United Transportation Union (E-C-T-S) dated on or about July 1, 1974 (Wages) and August 1, 1974 (Health and Welfare).

(b) This Agreement shall be construed as a separate agreement by and on behalf of each of said carriers and their employees represented by the organization signatory hereto, and shall remain in effect through December 31, 1977 and thereafter until changed or modified in accordance with the provisions of the Railway Labor Act, as amended.

(c) The parties to this Agreement shall not serve nor progress prior to January 1, 1977 (not to become effective before January 1, 1978) any notice or proposal for changing any matter contained in:

(1) this Agreement,

(2) Section 2(c) of Article XV of the Agreement of January 27, 1972, except that notices may be served regarding vacations or holidays so long as they do not relate to length of paid vacations in excess of the maximum provided in the national agreement, or number of paid holidays in excess of the maximum provided in the national agreement,

* With respect to the Penn Central Transportation Company, the power of attorney to the National Carriers' Conference Committee was conditioned upon the right of the trustees to approve the agreement, and the trustees have so approved.

(3) except as hereinafter provided in paragraph (d) of this Section 2, the following items, which have been referred to the Standing Committee created by Article XIV of the Agreement of January 27, 1972:
	Basis of pay Car-scale additives Elimination of arbitraries applicable to road and yard employees Mileage holddowm Road-yard proposals not disposed of in the January 27, 1972 Agreement Reduction of work month for dining car stewards Overtime in passenger service Time and one-half for working during vacation periods Sick leave pay Elimination of hostlers Paid holidays for employees not now eligible for paid holidays
	(4) or regarding bereavement or funeral pay

(d) The parties to this Agreement will continue in effect during the term of this Agreement the Standing Committee established by Article XIV of the Agreement of January 27, 1972, including the procedures worked out by the parties. However, if either party signatory to this Agreement decides that the Standing Committee procedure should no longer be continued, the carriers or the union may after December 31, 1975 serve national (but not local) Section 6 notices on the matters listed in paragraph (c)(3) of this Section.

(e) This Article will not debar management and committees on individual railroads from agreeing upon any subject of mutual interest.

FOR THE PARTICIPATING CARRIERS FOR THE EMPLOYEES REPRESENTED BY
LISTED IN EXHIBIT A: THE UNITED TRANSPORTATION UNION: