MEMORANDUM AGREEMENT 

Between 

UNION PACIFIC RAILROAD COMPANY

(Territory Salt Lake City-Butte and Granger-Huntington)

and the

BROTHERHOOD OF LOCOMOTIVE ENGINEERS

                                                                           RESERVE ENGINEERS

 Effective January 1, 1988, the Carrier shall have the right to offer "Reserve Engineer" status to any number of active engineers working as such, with seniority as engineers prior to November 1,1985. Where offered, Reserve Engineer status shall be granted in seniority order on a seniority district or home zone basis under the terms listed below:

                  (1)  An employe who chooses Reserve Engineer status must remain in that status until either (i) recalled and returned to service, (ii) discharged from employment by the Carrier, (iii) resigns from employment by the Carrier or (iv) retires on an annuity (including a disability annuity) under the Railroad Retirement Act. 

                 (2)  Reserve Engineers must maintain their engine service proficiencies while in such status, including success fully completing any retraining or refresher programs that the Carrier may require and passing any tests or examinations (including physical examinations) administered for purpose of determining whether such proficiencies and abilities have been maintained.  Reserve Engineers also must hold themselves available for return to engine service upon seven days' notice, and must return to engine service in compliance with such notice.  Reserve Engineers shall be recalled in reverse seniority order or senior applicant with application on file. Failure to comply with any of these requirements will  result in forfeiture of all seniority rights. 

                 (3) -Reserve Engineers shall be paid at 70% of the basic yard engineer's rate for five days per week.  No other payments shall be made to or on behalf of a Reserve Engineer except payment of premiums under applicable health and welfare plans.   No deductions from pay shall be made on behalf of a Reserve Engineer except (i) deductions of income, employment or payroll taxes (including railroad retirement taxes) pursuant to federal, state or local law, (ii) deduction of dues pursuant to an applicable union shop agreement and any other deductions authorized by agreement, (iii) as may otherwise be authorized by this Agreement; and (iv) any other legally required deductions.

                  (4)  Other non-railroad employment while in Reserve Engineer status is permissible so long as there is no conflict of interest.  There shall be no offset for outside earnings from non-railroad employment. 

                 (5)  Vacation pay received while in Reserve Engineer status will offset pay received under paragraph (3) above. Time spent in reserve board status will not count toward determining whether the employe is eligible for vacation in succeeding years.  It will count as time in determining the length of the vacation to which an employe otherwise eligible, is entitled.

                (6)   An employe who is eligible for an annuity under the Railroad Retirement Act shall continue to be eligible for Reserve Engineer status except that in addition to the deductions set forth in paragraph (3) above, there also shall be deducted the amounts the employe could have received from Railroad Retiremnt.

                (7) Reserve Engineers are not eligible for:

                               Holiday Pay

                               Bereavement Leave

                               Jury Pay

                               Other similar special allowances

                (8) Reserve Engineers are covered by:

                                Health and Welfare Plans

                               Union Shop

                               Dues Check-off

                               Discipline Rule

                               Grievance Procedure

                     that are applicable to engineers in active service.

                     (10)  There shall be two (2) times a year that a Reserve Engineer may elect to change his status and return to full employment.  These dates are October 1 and April 1 of each year.

This Agreement may be cancelled by either party  with the service of 30-days I written' notice.