AGREEMENT

between the

UNION PACIFIC RAILROAD COMPANY

and the UNITED TRANSPORTATION UNION (C&T)

Effective December 21, 1989, it is agreed the basic Crew Consist Agreement between the parties effective September 15, 1980, is amended as follows for the Second and Third Seniority Districts on the Northwest District - Oregon Division.

ARTICLE I CREW CONSIST CONDITIONS

Section 1. The basic crew consist for all crews operated on the Second and Third Seniority Districts shall be one (1) Conductor/Foreman and one (1) Brakeman/Yard Helper, subject _to the provisions of this Agreement. (See Side Letter J1) '

Section 2. No car count or train length limitation in the operation of trains with crews of one Conductor/Foreman and one Brakeman/Yard Helper will be imposed.

Section 3. Reduced crews may be utilized on retainer trains provided they are assisted by a Utility Trainman as provided for by separate Agreement effective December 21, 1989. The Conductor of a reduced crew has the sole discretion to refuse to proceed with any train requiring the use of retainers beyond the retainer set/release point. Reduced Crews will not be censured, disciplined or harassed for refusing to operate retainers without the assistance of a Utility Trainman or Extra Trainman.

(See attached Utility Trainman Agreement, Q&A l'21)

Section 4. Must-fill positions are Conductor/Foreman and Brakeman/Yard Helper positions contractually required to be filled by protected or non-protected employees under Schedule Rules or Agreements and may not be blanked.

Section 5. Due to the unique circumstances involved in this Agreement and in order to provide that all employees who have established a seniority date prior to the effective date of this Agreement are protected, the following conditions are agreed upon:(a) For the purpose of this Agreement, protected employees are all employees on Trainman/Yardman seniority rosters (including employees on authorized leave of absence) as of December 21, 1989, and any employee in a dismissed (discharged), terminated or suspended status as of December 21, 1989, who is subsequently returned to service with seniority rights unimpaired.

NOTE: Nothing in this Agreement is to be construed, interpreted or applied except as specifically provided for in this Agreement so as to change or modify the following Crew Consist Agreements, as those agreements relate to the protection of employees, reduction and restoration of positions:

August 25, 1964 NWD

March 1, 1968 NWD (OR. Div.)

September 15, 1980 NWD (OR. Div.)

(b) For employees establishing a seniority date on the Second and Third Seniority Districts between October 31, 1985, and the effective date of this Agreement, Article IV, Section 6 -"Rate Progression - New Hires" - of the October 31, 1985 UTU National Agreement is waived and their rates of pay will be equal to that of employees hired prior to October 31, 1985.

(c) For employees establishing a seniority date on the Second and Third Seniority Districts between October 31, 1985 and the effective date of this Agreement, Article XII, "Termination of Seniority", of the October 31, 1985 UTU National Agreement is waived.

(d) Employees hired as of the effective date of this Agreement will be allowed the Special Allowance payments as provided in Article VII - Section 3 of this Agreement.

(e) Employees eligible for Productivity Fund payments under Article VII of this Agreement are those employees holding a seniority date as of September 15, 1980.