That misconception is based on a belief that the long-standing fundamental tenet of Union Pacific's Attendance Policy - that all employees will be full-time employees -has been replaced by the criteria used to identify the worst offenders of the Attendance Policy. This belief is incorrect and does not in any way reflect the content of our discussions in Kansas City. Any employee who uses any attendance standard other than "full-time" is in violation of Union Pacific's Attendance Policy and subject to discipline.

          As a reminder, the criteria discussed in Kansas City are the standards currently being used to identify the "worst of the worst' employees with respect to attendance. It is only for the purpose of identifying those "worst of the worst' that the criteria we discussed in Kansas City is being used. The criteria do not by any measure create or serve as a threshold for determining who is in compliance with the Attendance Policy. There are many employees not identified through application of these criteria who are not in compliance with Union Pacific's Attendance Policy and, as mentioned earlier, they too are subject to disciplinary action. Moreover, it is important to remind everyone this criteria can and will be revised as needed to facilitate and enhance our focus and efforts on identifying those who are not fulfilling their obligations as full-time employees of Union Pacific.

          I trust this explanation sets the record straight as to the proper application of Union Pacific's Attendance Policy. Any counsel to your constituency to the contrary is misguided. Specifically, any counsel that the current "worst of the worst" criteria discussed in Kansas City establishes a threshold attendance level different from "full-time" could result in disciplinary action toward a constituent.

          In conclusion, I ask that a copy of this letter be forwarded to your local officers in order to ensure they properly understand the purpose and workings of Union Pacific's Attendance Policy, including our use of the evaluation criteria. A copy of this letter is also being provided to all Union Pacific officers involved in the administration of the Attendance Policy. If you have any additional questions regarding this policy, please feel free to contact your Labor Relations Director, Scott Hinckley (402-271-2339) or me at your convenience.

                                                                 Sincerely,

                                                                 (signature)

                                                                 A. Terry Olin
                                                                  General Director - Labor Relations                                                                  Arbitration & Negotiations