UNION PACIFIC RAILROAD COMPANY

1416 DODGE STREET
OMAHA NEBRASKA 68179

Side Letter #2

Mr. L. L. Nelson
General Chairman UTU C&T
936 SE Ankeny Street
Suite F
Portland, OR 97214

Dear Sir:

This will confirm our discussions concerning the Conductor‑only Crew Consist negotiations. 

Each Tier I Reserve Board will be reduced by 60% of the number of non-furloughed employees in the territory of the Reserve Board who accept a separation allowance. 

It was also understood in Article IV that employees on a Reserve Board are "in-service employees" and hence are subject to the same physical examination and rules requirements as other in-service employees. The Carrier's requirement that employees who have been out of service for six (6) months or more must take physical and rules examinations does not apply to Reserve Board employees. Furthermore, employees to be examined while on reserve status will be notified by registered mail sent to their home address. With respect to the language "failure to comply with any of these requirements will result in forfeiture of all seniority rights" ‑‑ it was understood that it is the intent of the parties that reserve status employees will be treated the same as other employees in active service, i.e., Reserve Board employees must report for examinations but will not have their seniority rights terminated for a failure to pass, and failures to pass will be handled in the usual way. This is not intended to waive the requirement that Reserve Board employees must take and pass all required examinations. It is intended to ensure that Reserve Board employees will be treated the same as other active service employees.  

Yours truly,

L.A. Lambert
Director Labor Relations 

AGREED:

L.L. Nelson
General Chairman UTU C&T