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BEHAVIOR MODIFICATION POLICY

Union Pacific Railroad expects all employees to be at the worksite when assigned and to be safe and productive. Most employees fully comprehend what is expected of them and are committed to being both safe and productive. There are times when employees do not meet these expectations and it is the intent of this policy to enable those employees to become both competent and committed to their profession.

Effective March 1, 2002, the Chicago and Commuter Service Units on the Northern Region will administer rule infractions in the following manner:

Level One infractions will be handled on the scene with a conversation and a commitment not to repeat the infraction. If an employee habitually does not comply with these rules he will move to the next level of behavior modification.

Rule violations of a more serious nature will be divided into two categories. The two categories will be Personal Choice and Preventable Infractions. In the Personal Choice Category, rule violations result from intent to act in a manner known to be contrary to rules and policy. Preventable Infractions will be rule violations in which an employee made a mistake through lack of understanding of rules and policy or a lack of skills. Each of these categories will be managed on an individual timetable track. The consequences of the steps in each track are outlined in the following matrix.

(This policy is currently in effect on the Northern Region.)