ARTICLE IV RESERVE BOARD

The Carrier shall establish separate Reserve Boards for employees working on the Second and Third Seniority Districts as of the effective date of this Agreement, subject to the following conditions (See Q&A #18):

Section 1. An employee oh the Reserve Board will be paid whichever is greater of the following two options:

(a) 70% of the basic Yard Helper's rate for five days per week; or,

(b) 70% of the-employee's earnings on their respective territory during the calendar year 1987 or 1988, whichever is greater. If 1988 earnings are used, Productivity Fund payments for 1988 received in 1989 will be included in computation of earnings. (See Side Letter #6)

Note 1: Effective March 1, 1990, employees' 1989 earnings will be compared to the earnings used for computation of the initial Reserve Board pay rate and if higher the Reserve Board pay rate will be adjusted accordingly.

Note 2: No other payments shall be made to* or on behalf of employees on the Reserve' Board except for payment of premiums under applicable health and welfare plans. No deductions from pay shall be made on behalf of Reserve. Board employees 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 any other deductions authorized by agreement; and, any other legally required deduction. (See Side Letter

*7)

* This does not preclude a Reserve Board employee from receiving payments on pending penalty claims. Penalty claim payments due, if any, will be paid in addition to the employee's Reserve Board earnings. (See Side Letter #22)

(c) If through subsequent wage increases, the 70% of the basic Yard Helper's rate of pay becomes greater than the 1987, 1988 or 1989 Reserve Board Rate, it is understood that Reserve Board employees' will be adjusted accordingly to provide the areater amount. (See Side Letter #8)Section 2. Employees assigned to Reserve Boards will be eligible for the Carrier's Tuition Aid Program.

Section 3. An employee placed on the Reserve Board will remain in that status until:

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

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

(c) The employee is recalled to active service. Such recall shall be in reverse seniority order in accordance with Section 5 of this Article IV.

(d) The employee 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 employees whose assignment is reduced will have a free exercise of seniority. Seniority displacements shall continue until the junior employees are furloughed, only if there are no vacant positions on the Reserve Board.

(e) The employee exercises seniority in accordance with Section 1 of Article VI of this Agreement.

(f) The employee exercises seniority in accordance with Section 3 of Article VI of this Agreement. Any employee so exercising seniority cannot return to the Reserve Board until the next "Sadie Hawkins Week" unless the employee is displaced or a vacancy occurs on the Reserve Board. (See Side Letters ti's 9, 10, 11 and 12)

Section 4 (a) Employees on the Reserve Board must maintain their work proficiencies while in such status, including successfully completing any retraining or refresher programs required to maintain those proficiencies which may include the passing of any tests or examinations (including physical examinations) administered for purposes of determining whether such proficiencies have been maintained. In order to ensure that work proficiencies are properly maintained, each employee on the Reserve Board will be required to exercise seniority to a regular or extra assignment (seniority permitting) and remain off the Reserve Board for six continuous months in every thirty month period beginning with the implementation date of this Agreement. (See Side Letters #7, #13)

(b) It will be incumbent upon the employee to use the provisions of the "Sadie Hawkins Week" section of this Agreement or to make application for regular vacancies to accomplish this requirement. An employee who has not met this requirement will have their Reserve Board pay halted until they have completed this requirement unless prevented from doing so because of insufficient seniority.Section 5. Employees on the Reserve Board must hold themselves available for return to service upon thirty (30) days' notice by wire or registered letter. Reserve Board pay shall continue for only seven (7) days and the employees must return to service in compliance with such thirty (30) days' notice. Failure to comply with any of these requirements will result in forfeiture of all seniority rights.

Section 6 (a) Other employment while on the Reserve Board is permissible so long as there is no conflict of interest. There shall be no offset for outside earnings. (See Side Letter #26)

(b) Employees on the Reserve Board may make application for Extra work. If such employees are utilized, compensation received by them for such service will be in addition to Reserve Board pay, and they will be compensated as an Extra Board Employee would be.

Section 7. Vacation pay received while on the Reserve Board will offset pay received under Section 1 of this Article IV. Time spent in Reserve status will not count toward determining whether the employee is eligible for vacation in succeeding years. It will count in determining the number of weeks of vacation based on years of service to which an employee, otherwise eligible, is entitled.

Section 8. Employees on the Reserve Board are not eligible for Holiday Pay, Bereavement Leave; Jury Pay, and all other similar special allowances. Employees working on other territories pursuant to Section 6 of this Article IV will be eligible for payment of these special allowances and may earn vacation for the following year the same as any other regular employee. (Q&A #20)

Section 9. Employees,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 employees in active service.

Section 10. It is understood that employees hired prior to the effective date of this Agreement who may be furloughed shall be eligible to place on the Reserve Board upon recall, seniority permitting.

Section 11. It is understood the Reserve Board will not operate when all protected employees on their respective Seniority Districts on the date of this Agreement are placed on either a Guaranteed Extra Board position or a regular job; however, established Reserve Board positions will always be preserved.

Section 12. Based upon the operations involved, the parties hereto have agreed the initial number of Reserve Board positions will be a minimum of fifty-five (55) each on the Second SeniorityDistrict and the Third Seniority District. The number of Reserve Board positions on each Seniority District shall be the total number of employees holding Regular or Extra Board positions on each district less the number assigned to Conductor/Foreman, first Brakeman/Yard Helper, must-fill second Brakeman/Yard Helper and Guaranteed Extra Board positions on each Seniority District when this Agreement is implemented. This initial number will be reduced by the number of employees working on the effective date of this Agreement receiving a separation allowance as provided for in Article V of this Agreement. (See Side Letters #4, 7 and 14. Also, reference Article III Section Mb)

Section 13. Reserve Board and blankable second Brakeman/Yard Helper positions will not be occupied when employees hired after the effective date of this Agreement are working. (See Q&A JM3)

Section 14. The Carrier is permitted to blank one second Brakeman/Yard Helper assignment for each regular-assigned (not including Extra Board) employee selecting the Reserve Board option. As the Reserve Boards are attrited, crew consist requirements shall be governed by Article I of this Agreement.