(1) The Carrier shall establish Reserve Board(s) for employees working on the territory north of Hinkle and who are protected under the basic Crew Consist Agreement effective September 15, 1980, subject to the following conditions:

(a) An employee on the Reserve Board shall be paid whichever is the greater of the following two options:

(i) 70% of the basic yard helper's rate for five days per week; or,

(ii) 70% of the employee's earnings on this territory during the calendar year 1986 or 1987, whichever is greater.

(iii) No other payments shall be made to or on behalf of an employee 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 a Reserve Brakeman/Switchman 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. Employees assigned to the Reserve Board shall be eligible for the carrier's Tuition Aid Program.

(b) An employee placed on the Reserve Board shall remain in that status until:

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

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

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

(iv) 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 shall 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.

(v) The employee exercises seniority in accordance with Paragraph (1) of Article VII of this Agreement.

(vi) The employee exercises seniority in accordance with Paragraph (2) of Article VII of this Agreement. Any employee so exercising seniority cannot return to the Reserve Board until the next "Sadie Hawkins Day" unless the employee is displaced or a vacancy occurs on the Reserve Board.

(c) Employees on the Reserve Board must maintain their work proficiencies while in such status, including successfully completing any retraining or refresher programs the Carrier may require and passing any tests or examinations (including physical examinations) administered for purposes of determining whether such proficiencies have been maintained. Employees on the Reserve Board 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 will result in forfeiture of all seniority rights. Employees will be recalled from the Reserve Board to protect their Seniority District only and will not be forced to other Seniority Districts. It is recognized that employees on the Fourth and Fifth Districts have prior rights and these prior rights will be recognized in the application of the foregoing.

(d) 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.

(e) Vacation pay received while on the Reserve Board will offset pay received under Paragraph l(a). 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 length of vacation to which an employee, otherwise eligible, is entitled.

(f) Employees on the Reserve Board are not eligible for Holiday Pay, Bereavement Leave, Jury Pay, and all other similar special allowances.

(g) 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.

(h) An employee on the Reserve Board who is eligible for a full annuity under the Railroad Retirement Act shall continue to be eligible for the Reserve Board except that in addition to other authorized deductions there also shall be deducted the amounts the employee could have received from Railroad Retirement .

(i) It is understood that furloughed employees who are "protected" employees under the basic Crew Consist Agreement shall be eligible to place on the Reserve Board upon recall, seniority permitting.

(j) It is understood the Reserve Board will not operate when all protected employees on the appropriate Seniority Roster on the date of this Agreement are placed on either a Guaranteed Extra Board position or a regular job.

(k) Reserve Boards shall be established at the following locations:

Spokane, Washington
Walla Walla, Washington

(1) The maximum number of Reserve Board positions at each location shall be determined as follows: The total number of employees holding regular or extra board positions at that location on June 1, 1988, less the number assigned to conductor/foreman or first brakeman/helper positions and to Guaranteed Extra Board positions at that location when this agreement is implemented and less the number of employees working on June 1, 1988, receiving a separation allowance as provided for in Article II of this Agreement.