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ARTICLE III
RESERVE BOARDS

1. The Carrier shall establish three levels of Reserve Boards for eligible employee working on the Eastern District. These Reserve Boards will be known as Tier I, Tier II and Ready Reserve Board.

2. To be eligible to occupy any of the three boards, an employe must have a seniority date on the Union Pacific Eastern District in road/yard train service prior to the date of this Agreement. Employes who are in engine service, on a leave of absence, off injured or sick, furloughed, out of service due to discipline, or are off in an official union capacity who return to service after the implementation of this agreement will be eligible to occupy any of the three Reserve Boards as provided in Article III, Section 15. Employes who are in an official Company capacity who return to service after the implementation of this Agreement will be governed by Article III, Sections 16 and 17.

TIER I RESERVE BOARDS

3. A Tier I Reserve Board shall be established at each location where an extra board exists in Article II, Section l(d). An employe on a Tier I Reserve Board shall be paid whichever is greater of the following two options:

(a) 70% of the basic yard foreman rate for five days per week: or

(b) 70% of the employee' W-2 earnings for the year 1990 or 1991. whichever is greater .

(c) The number of Reserve Board positions at each location shall be equal to the total number of working first brakeman positions and extra board positions attributed to first brakeman positions that are abolished as c result of the implementation of Conductor only operations. Sixty (60) percent of employee' positions reduced from extra boards as a result of this Agreement will be added to the Tier I Reserve Board. The number of extra board positions will be no less than the number that existed on November 5, 1991, for the purpose of counting the number that flow to the Reserve Boards .

(d) The implementation of the Tier I Reserve Board numbers will be known as the minimum Tier I reserve positions and will not be reduced below implementation positions initially established.

TIER II RESERVE BOARDS

4. Two Tier II Reserve Boards shall be established. One in the territory covered by Zone 100 and one in the territory covered by Zone 200. An employe on a Tier II reserve board shall be paid whichever is greater of the following two options:

(a) 70% of the basic yard foreman rate for five days per week: or

(b) 70% of the employee' W-2 earnings for the year 1990 of 1991, whichever is the greater.

(c) The number of Tier II Reserve Board positions in each zone shall be equal to the total number of working blankable second brakeman/helper positions and 40% of the extra board positions that are abolished as a result of the implementation of this agreement, less the number of working employee in that zone receiving a separation allowance under Article IV. The number of extra board positions will be no less than the number that existed on November 5, 1991, for the purpose of counting the number that flow to the Reserve Boards.

(d) The number of Tier II reserve Board positions will be set and will be available to eligible employee until all such employee have attrited. There will be no eligible employee furloughed if there are vacant positions on the Tier II Reserve Board except in accordance with Article II, Section 6(b).

NOTE 1: Wherever the phrase "W-2 earnings for the year 1990 or 1991" is used, it includes earnings on the Eastern District only and does not include lump sum or back pay payments for non-1990/1991 items.

NOTE 2: The basic yard foreman rates or Tier I and Tier II Reserve Boards are subject to future wage and COLA adjustment.

5. (a) Any employe may hold a Tier II Reserve Board in their territory; however, a prior rights employe may only hold a ready reserve board or Tier I reserve board in their prior rights territory.

(b) An employe holding only Zone 100 or Zone 200 seniority may ho1 d any Tier Two or Ready Reserve Board .

READY RESERVE BOARD

6. A ready reserve board shall be established at each location where an extra board exists. An employe on the ready reserve board shall be paid whichever is greater of the following two options:

(a) 85% of the basic yard foreman rate for five days per week: or,

(b) 85% of the employee' W-2 earnings for the year 1990 or 1991, whichever is greater.

(d) An employe on the ready reserve board is subject to recall upon 48 hours' notice. Notice shall include telephone notice or attempted notice by telephone. The 48 hours shall begin at the first attempt to notify an employe. A reasonable telephone recall shall be a minimum of three (3) telephone attempts in each eight (8) hours for forty-eight (48) hours.

(e) Employes who fail to mark up within the 48-hour Peru shall have their pay stopped at the end of the 48-hour period and may be subject to discipline.

(f) Employes on the Ready Reserve Board retain the right to layoff, use personal leave, and take scheduled vacations as provided for in current agreement rules. Employes laying off for other than a paid absence will have their reserve board pay reduced on a day for day basis.

(g) Employes on the Ready Reserve Board for a minimum of 30 consecutive days may request to be released from the Board, seniority permitting. Such employe may move to the Tier I or Tier II Reserve Board but must remain on the Ready Reserve Board until their replacement is marked up on the Ready Reserve Board. Nothing in this paragraph restricts the right of an employe to make application to working assignments, regular or extra.

(h) An employe on the ready reserve board shall be recalled in junior order to extra boards to provide temporary support when additional forces are needed. The regular recall provisions from the other reserve boards shall continue to apply, and when sufficient forces from the other reserve boards have marked up, the ready reserve board employee shall be released back to the ready reserve board, seniority permitting.

NOTE: If the ready reserve employe is recalled under the regular recall provisions to a permanent vacancy, they will not be released but their reserve board position shall then be available for assignment.

(i) The number of ready reserve board positions shall not be less than 15 percent of total extra board positions at the location..

GENERAL CONDITIONS

7. No payments other than those percentages cited above shall be made to or on behalf of an employee on any Reserve Board except for payment of premiums under applicable health and welfare plans. No deductions from pay shall be made on behalf of a Reserve Board employe except for deductions of income, employment or payroll taxes (including railroad retirement taxes) pursuant to federal, state or local law, deductions of dues pursuant to an applicable union shop agreement and an, other deductions authorized by agreement; and, any other legally required deduction. Employees assigned to the Reserve Board shall be eligible for the Carrier's Tuition Aid Program.

NOTE: The phrase "no other payments shall be made to or on behalf of an employe on the Reserve Board ..." would not preclude an employe on the Reserve Board from receiving payments on a pending penalty claim. Penalty claim payments due, if any, will be paid in addition to the earnings of a reserve employe.

8. An employe placed on a Reserve Board shall remain in that status until:

(a) The employe is discharged from employment by the Carrier in accordance with the applicable discipline rules.

(b) The employe resigns from the Carrier's employment.

(d) The employe is placed in a furlough status because of a reduction of assignments. For example, if the number of jobs is reduced from 10 to 9, the employee whose assignment is reduced shall have a free exercise of seniority. Seniority displacements shall continue until the junior employee are furloughed, only if there are no vacant positions on the Reserve Boards .

(e) The employe exercises seniority in accordance with applicable rules.

(f) The employe is displaced by another employe through the exercise of seniority..

9. Employes on Reserve Boards must maintain their work proficiencies while in such status, by successfully completing any retraining or refresher programs required of active employee to maintain those proficiencies which may include the passing of tests or examinations (including physical examinations) administered for purposes of determining whether such proficiencies have been maintained. Employes on the Tier I and Tier II Reserve Boards must hold themselves available for return to service upon thirty (30) days' notice (Reserve pay shall continue for only seven (7) days) and must return to service in compliance with such thirty (30) days' notice. Failure to comply with any of these requirements could result in forfeiture of all seniority rights in accordance with applicable discipline rules. Calculation of the seven (7) and thirty (30) day time periods shall begin with written notification (postmark date on the envelope) by certified mail from CMS to the employe.

(a) An employe who returns to service within the first sever (7) days of the thirty (30) day recall period will receive Reserve Board pay (until the end of the seventh day) in addition to all other earnings.

NOTE: Employes on the Reserve Board are paid as if holding a five-day assignment. The seven-day period would include five days of pay and two "rest days . "

(b) Employes on a Reserve Board are "in-service employee" and hence are subject to the same physical examination and rules examination as other in-service employee. The Company's requirement that employee who have been out of service for six months or more must take physical and rules examinations does not apply to Reserve Board employee. This provision does not eliminate the employe's work proficiency obligation set forth above.

(c) Employes to be examined while in reserve status will be notified by certified mail sent to their home address. Employes who fail to respond or fail to pass the exams will have their reserve board pay stopped until such time as they do pass the applicable exam. Employes who fail to respond within sixty (60) days of a second notice may be subject to disciplinary action.

10. Other employment while on the Reserve board is permissible and there shall be no offset for outside earnings.

NOTE 1: "Other employment" includes all employment except that employment which would conflict with the best interests of Union Pacific. If an employe is concerned whether employment conflicts with the best interests of Union Pacific, the Director of Labor Relations should be contacted .

NOTE 2: Employes on the Reserve Board shall be eligible to accept "borrowed out" status at other locations on Union Pacific. Borrowed out status shall last no longer than six months without renewing the borrowed out status with CMS and the General Chairman.

11. Vacation pay received while on a Reserve Board will offset reserve board pay. Time spent in reserve status will not count toward determining whether the employe is eligible for vacation in succeeding years, but will be counted as compensation earned towards vacation pay. It will count in determining the length of vacation to which an employe, otherwise eligible, is entitled.

12. Employes on the Reserve Board are not eligible for Holiday Pay, Bereavement Leave, Jury Pay and all other similar allowances.

13. Employes on the Reserve Board are covered by Health and Welfare Plans, Union Shop, Dues Check-Off, Discipline Rules and the Grievance Procedures that are applicable to employee in active service.

14. It is understood the Reserve Board will not operate when al] protected employee on the appropriate Seniority Roster on the date of this Agreement are placed on either a Guaranteed Extra Board position or a regular job; however, established Tier ] reserve board positions will always be preserved.

15. Under this Article III, an eligible employe is defined as an active employe holding a regular assignment in train service, including extra board assignments on the effective date of this Agreement. Reserve Board positions established under this Agreement shall not be available to employee establishing seniority after the date of this Agreement.

NOTE: An employe, otherwise eligible, which includes employee on medical leave, serving discipline, leave of absence, union business, etc., but who was not holding a regular assignment on the effective date of this Agreement shall be considered an eligible employe upon marking up for service. For each employe returning under the provisions of this paragraph, one position will be added to the Tier I Reserve Board for each odd numbered return and one position added to the Tier II Reserve Board for each even numbered return.

16. Reserve Board offsets resulting from the Separation Allowance Program provided for in this Agreement shall be subject to the following: employee returning to the territory covered by this Agreement after the effective date of this Agreement fron Company positions must work in the craft for one year prior to receiving the separation allowance and prior to the Carrier receiving the offset.

17. Employes returning to the territory covered by this Agreement after the effective date of this Agreement from Company, positions must work in the craft for a period of one year before being permitted to occupy a Reserve Board position. For each employe returning under the provisions of this paragraph, one position will be added to the Tier I Reserve Board for each odd numbered return and one position added to the Tier II Reserve Board for each even numbered return.