MERGER IMPLEMENTING AGREEMENT PORTLAND HUB -- ZONES 2 & 3

QUESTIONS AND ANSWERS

ARTICLE II -- SENIORITY INTEGRATION AND CONSOLIDATION

Q1:     Article II, A and B, provides that new seniority districts, zones and rosters will be "created." When will the new seniority rosters be available to the UTU and the affected employees?

A1:     All seniority rosters will be developed and furnished to the UTU for revision and correction prior to implementation of Zones 2 and 3. The new Zone 2 and 3 rosters will be made available to the affected employees for their use a minimum 10 days prior to implementation.

Q2.     How long will prior rights be in effect?

A2.     As long as the employees holding such rights are still working.

Q3.     Are full time union officers/representatives, Company officers, employees on medical leaves and those on leave working for government agencies, etc., covered under Article II, Section E?

A3.     Yes.

Q4.     If a Zone 3 employee is assigned to a position in the Salt Lake Hub, what work may the said employee perform?

A4.     The working conditions, including the work or service such employee may perform while assigned to a position in the Salt Lake Hub, will be governed by applicable provisions of the UP Eastern District collective bargaining agreement, subject to the provisions set forth in this Agreement.

Q5.     In conjunction with Q&A 4 above, what service can a Zone 3 employee perform at Elko?

A5.     The Zone 3 employee can be required to perform service consistent with requirements of his or her assignment and applicable provisions of the UP Eastern District collective bargaining agreement. The Zone 3 employee's assigned in the Salt Lake Hub will be subject to the provisions of Article II, Section B, Paragraph 4 of this Agreement. For example, road crews working between Salt Lake City and Elko, such crews may perform any service normally performed by road crews running from Salt Lake City to Elko (or Elko to Salt Lake City).

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Q6.     In applying Article II, Section B, Paragraph 4.b., is an employee assigned to a Reserve Board position in Zone 3 considered as holding an assignment in Zone 3?

A6.     Yes.

Q7.     Employee A, whose is listed on Attachment "A," is assigned to a "Nampa" position in the LaGrande - Nampa pool. Employee A decides to exercise his or her seniority to another position or vacancy in the area for which Nampa is the source of supply. The vacancy on the "Nampa" pool position resulting from Employee A's exercise of seniority is subsequently filled by a Zone 2 trainman at LaGrande. Later, Employee A is displaced from that other assignment (or it is abolished). Can Employee A exercise seniority to the LaGrande - Nampa pool and "reclaim" a "Nampa" pool position?

A7.     Yes, provided Employee A's name has not been removed from Attachment "A," he or she possesses sufficient seniority to hold the "Nampa" pool position, and, in applying the applicable pool work allocation ratio's, there is a "Nampa" pool position to which he or she could exercise seniority to.

Q8.     Employee B is the junior conductor assigned to a "Nampa" pool position. A new road switcher is established for which there are no bidders/applicants. In accordance with applicable provisions of this Agreement, Employee B is removed from his or her assignment in the pool and is placed on the new road switcher assignment. There are no applicants or conductors listed on Attachment "A" available to fill the resultant pool vacancy. Employee B's "Nampa" pool position is thus filled at LaGrande by a Zone 2 conductor. Later, Employee B is displaced from the road switcher (or the road switcher is abolished). Can Employee B exercise his or her seniority to the LaGrande - Nampa pool and claim a "Nampa" pool position?

A8.     Yes, provided Employee B's name has not been removed from Attachment "A," he or she possesses sufficient seniority to hold a "Nampa" pool position, and, in applying the applicable pool work allocation ratio's, there is a "Nampa" pool position to which he or she can exercise seniority to.

Q9.     How will Zone 1 trainmen, covered by Article II, Section B, Paragraphs 7a. - 7d. of the September 16, 1998, Zone 1 Implementing Agreement, who elect to remain in Zone 2, be placed on the Zone 2 seniority rosters ?

A9.   They will be placed on the Zone 2 master seniority roster and the Hinkle - East sub-zone seniority roster as though they had originally hired out on the Oregon 3rd Seniority District and the seniority date in the crafts they have established in Zone 1 will be transferred to Zone 2.

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Q10.   How will an employee with a seniority date on Zone 2, which pre-dates the December 16, 1996 Seniority Consolidation Agreement, who has chosen to exercise his/her post 12/16/96 seniority to an area of Zone 2, which is now located in a sub-Zone other than the one where such employee holds his/her pre 12/17/96 seniority date to be treated?

A10.   Such employee will retain his/her prior rights in the sub-Zone, as set forth in this Agreement, where the employee holds pre December 17, 1996 seniority, and such employee will retain the right to work in the other sub-Zone based on his/her post December 16, 1996 seniority roster standing.

Q11. Are Zone 3 employees that relocate to Zone 2 considered pre-December 17, 1996 employees for seniority purposes?

A11.   Yes, if the Zone 3 employee who relocates, as provided by this implementing agreement, has established and retains a working Zone 3 seniority date in the craft on or before December 16, 1996.

ARTICLE III - THROUGH FREIGHT POOL OPERATIONS

Q12.   Are the operating parameters, such as, but not limited to, home terminal location, mileage paid for run and other such parameters, altered by the provisions of this Agreement?

A12.   Except as set forth in this Agreement, the basic operating parameters of Zone 3 through freight operations are not changed by this Agreement. Such operations will, however, be governed by the UP Eastern District collective bargaining agreement and the terms of this Agreement.

Q13. Does this Agreement alter existing Zone 3 home terminal boundaries for hours-of-service relief, assignment of employees for local service, work trains, extra service, etc.?

A13.   Unless a Zone 3 home terminal boundary is specifically modified for a particular class of service in this Agreement, the existing boundaries remain as they presently exist.

Q14.   Do the provisions of this Agreement alter the miles paid for through freight runs in Zones 2 or 3, including any preexisting constructive mileage arrangements.

A14.   No, subject to the provisions set forth in Article VI, Section D. ARTICLE VI -- AGREEMENT COVERAGE

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Q15.   How will arbitraries and other items, including rates of pay, be paid for employees in Zone 3?

A15.   The working conditions, including rates of pay, arbitraries, etc. will be governed by applicable provisions of the UP Eastern District collective bargaining agreement, as modified by applicable National Agreements.

Q16. When the governing CBA becomes effective what happens to existing claims filed under the other collective bargaining agreements that formerly existed?

A16.   The existing claims shall continue to be handled in accordance with those agreements and the Railway Labor Act. No new claims shall be filed under those agreements once the time limit for filing claims has expired for events that took place prior to the implementation date.

Q17.   How is a crew that received its train twenty-five (25) miles on the far side of the terminal, as contemplated by Article VI, Section E, Paragraph 1, to be compensated?

A17.   When so used, the crew shall be paid an additional one-half (1/2) basic day for this service in addition to the district miles of the run. If the time spent beyond the terminal is greater than four (4) hours, they shall be paid on a minute basis at the basic pro rata through freight rate. Miles within the Zone are not added to the district miles of the run. Time spent within the Zone does not factor into the computation of overtime.

Q18.   How is time consumed by a crew within a Twenty-Five Mile Zone to be calculated?

A18.   The actual time consumed from the time it departs its initial terminal until it returns to the terminal limits.

Q19.   Can you give an example as to how this will be applied?

A19.   A pre-October 31, 1985 trainman is transported to his/her train 10 miles east of Nampa and takes the train to LaGrande. The time spent is one hour east of Nampa and 10 hours 30 minutes between Nampa and LaGrande with no initial or final delay earned. The employee shall be paid as follows:

A.       One-half basic day for the service east of Nampa

because it is less than four hours spent in that service.

B.       The road miles between Nampa and LaGrande.

C.       Overtime based on the miles run between Nampa and LaGrande divided by 20 for the time up to the 10 hours and 30 minutes worked between those two

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points. (For example if the miles between Nampa and LaGrande were 182 then overtime would be after 9 hours 6 minutes for an overtime payment of 1 hour 24 minutes).

Q20.   Would a post October 31, 1985 trainman be paid the same?

A20.   No, unless the rates of pay and/or methodology for such payments is modified by future local or National Agreements. The National Disputes Committee has determined that post October 31, 1985 trainmen come under the overtime rules established under the National Agreements/Awards/Implementing Agreements that were effective after that date for both pre-existing runs and subsequently established runs. As such, the post October 31, 1985 trainman would not receive the overtime in C above but will receive the payments in A & B.

Q21. If a crew used within a 25-mile Zone is released prior to arrival at their far terminal for any reason other than a bona fide emergency, i.e., hours of service, managerial decision, etc., how will the crew be handled and compensated?

A21. Except in cases of emergency, the crew will be deadheaded on through to the far terminal in a "combined with service" basis and allowed a minimum of four (4) hours at the pro rata rate or actual time (whichever is greater) for their 25 mile Zone service in addition to District miles as provided for by the governing collective bargaining agreement or time as applicable for the service combined with deadhead and any other allowances due such as special/ID meal allowances, etc.

Q22.   In cases where a crew used within a 25 mile Zone is released as referenced in Q&A 21 above due to a bona fide emergency, i.e., Act of God, derailment, etc., how will the crew be handled and compensated?

A22    If the crew cannot be deadheaded on through to the far terminal of their assignment due to conditions as referenced above, they will be released at the original terminal, paid a basic day, placed first out and allowed four (4) hours at the pro rata rate or actual time (whichever is greater) for their 25 mile Zone service.

Q23.   What happens if a crew in the twenty-five (25)- mile Zone is delayed and spends more than eight (8) hours in the Zone before returning to the original terminal?

A23.   If a crew spends more than eight (8) hours in the twenty-five (25) mile Zone, overtime would apply for all such time in excess of eight (8) hours in the Zone.

Q24.   Is it the intent of this agreement to use trainmen beyond the 25-mile Zone? A24.   No.

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Q25.   May the twenty-five (25) mile Zone be used for .inbound road crews to operate up to 25 miles past their destination terminal?

A25.   No, the 25-mile Zone provisions apply to outbound crews at their terminal of origin only, and under no circumstances do such provisions apply to crews arriving at their destination terminal.

Q26.   Article VI, Section E, Paragraph 1 provides a one-half (1/2) basic day for service performed within the 25 mile Zone as established by this agreement. Is this considered a duplicate payment or special allowance?

A26.   No, it is subject to all future wage adjustments and is not considered a duplicate payment or special allowance. This payment will be made in addition to all other earnings received by employees.

Q27.   How will initial terminal delay be determined when performing service as outlined herein?

A27.   Initial terminal delay for crews entitled to such payments will be governed by the applicable collective bargaining agreement and will not again commence when the crew operates back through the on duty point. Operation back through the on duty point shall be considered as operating through an intermediate point.

Q28.   Can a Salt Lake Hub train crew at its away-from-home terminal in Pocatello be used in the 25-mile zones west or north of Pocatello?

A28.  No.

Q29.  Where do the 25-mile zones referenced in Article VI, Section E, Paragraph 1 start?

A29.  From the applicable switching limits at the involved location.

Q30.  Where do the 25-mile zones at Hinkle start?

A30.   In applying the provisions of Article VI, Section E, Paragraph 1 at Hinkle, the 25-mile zones will start at the Hinkle switching limits. Presently, those switching limits are, by geographic direction, (west) MP 182.80, (east) MP 189.25, and (north) MP 186.4.

Q31.   How will vacations for 2001 be handled?

A31. They will continue to be handled under the CBA that covered them at the beginning of the year. Vacations for 2002 will be scheduled under the provisions of the controlling agreement.

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Q32.  Will the Carrier provide copies of the Northwest District (Oregon Division) and/or Eastern District Agreements as currently printed?

A32.   Yes, in addition the parties will meet prior to such making such copies and review the current versions of the agreements and, if necessary, prepare a list of amendments to those collective bargaining agreements.

Q33.   How much call time (time before the on-duty time) will be given to Walla Walla (4th District) crews being called to perform pool freight service out of Hinkle?

A33.   Recognizing that the change from assigned through freight service to pool freight service will create some hardship; trainmen called out of Walla Walla to work the 4th District "Hinkle" pool positions will be called, as near as practicable, two and one-half hours before being required to report for duty.

Article VII - PROTECTION

Q34.   What is automatic certification?

A34.   An understanding reached by the parties that an employee will be provided the benefits of the applicable labor protective conditions (New York Dock) without having to prove he was adversely affected as a result of implementation of this Agreement.

Q35.   What rights does a trainman have if he/she is already covered under labor protection provisions resulting from another transaction?

A35.    Section 3 of New York Dock permits trainmen to elect which labor protection they wish to be protected under. By agreement between the parties, if a trainman has three years remaining due to the previous implementation of Interdivisional Service the trainmen may elect to remain under that protection for three years and then switch to the number of years remaining under New York Dock. It is important to remember that a trainman may not receive duplicate benefits, extend their protection period or count protection payments under another protection provision toward their test period average for this transaction.

Q36.   How will reductions from protection be calculated?

A36.   Employees coming under New York Dock protection as a result of this Agreement shall have deductions based on New York Dock provisions. Employees electing to retain previous ID protection shall have deductions based on the provisions of those ID agreements.

Q37.   Why are there different dollar amounts for non-home owners and homeowners?

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A37.   New York Dock has two provisions covering relocating. One is Article I, Section 9, Moving Expenses and the other is Section 12. Losses from Home Removal. The $10,000 is in lieu of New York Dock moving expenses and the remaining $20,000 is in lieu of loss on sale of home.

Q38.   Why is there one price on loss on sale of home?

A38.   It is an in lieu of amount. Trainmen have an option of electing the in lieu of amount or claiming New York Dock benefits. Some people may not experience a loss on sale of home or want to go through the procedures to claim the loss under New York Dock.

Q39.   What is loss on sale of home for less than fair value?

A39.   This refers to the loss on the value of the home that results from the Carrier implementing this merger transaction. In many locations the impact of the merger may not affect the value of a home and in some locations the merger may affect the value of a home.

Q40.   If the parties cannot agree on the loss of fair value what happens?

A40.   New York Dock Article I, Section 12(d) provides for a panel of real estate appraisers to determine the value before the merger announcement and the value after the merger transaction.

Q41.   What happens if a trainman sells the home for $20,000 to a family member?

A41. That is not a bona fide sale and the trainman would not be entitled to either an in lieu of payment or a New York Dock payment for the difference below the fair value.

Q42.   What is the most difficult part of New York Dock in the sale transaction?

A42.   Determine the value of the home before the merger transaction. While this can be done through the use of professional appraisers, many people think their home is valued at a different amount.

Q43.   Who is required to relocate and thus eligible for the allowance?

A43.   A trainman who can no longer hold a position at his/her location and must relocate to hold a position as a result of the merger. This excludes trainmen who are borrow outs or forced inside the Hub and released and employees who have to exercise seniority in their prior rights area due to a non-merger event.

Q44.   When did the person need to be a homeowner to qualify as one for relocation purposes?

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A44.   New York Dock protects home owners due to loss on sale of home that are caused by the merger. A person who purchases a home after May 1, 2000, would not be affected by the merger because they were not a home owner at that time, however they may qualify as a non-home owner for relocations purposes.

Q45.   Will trainmen be allowed temporary lodging when relocating?

A45.   Trainmen entitled to a relocation allowance shall be given temporary lodging for thirty (30) consecutive days as long as they are marked up.

Q46.   Are there any restrictions on routing of traffic or combining assignments.

A46.   There are no restrictions on the routing of traffic in Zones 2 and 3.

Q47    How will Union Officers TPA's be established?

A47.   The Carrier will average the two above and two below in the same service. If greater than their regular TPA it shall be used. Trainmen with unusually high or low TPA's will not be considered.

ARTICLE VIII -- CREW CONSIST

Q48.   Northwest District (Oregon Division) crew consist provisions are contained in several different documents and not fully discussed in this document. Does this change the intent of those crew consist provisions?

A48.   Any omissions of Crew Consist provisions does not prevent eligible employees from enjoying same.

Q49.   The Idaho District crew consist provisions are contained in several different documents and not fully discussed in this document. Does this change the intent of those crew consist provisions?

A49.   Any omissions of Crew Consist provisions does not prevent eligible employees from enjoying same.

Q50.   Do the references to "crew consist provisions" in Q&A's 49 and 50, above, include applicable side letters, letters of understanding, clarifications, etc. pertaining to the Northwest District (Oregon Division) Crew Consist Agreements and/or Idaho District Crew Consist Agreements?

A50.   Yes.

ARTICLE IX -- FAMILIARIZATION

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Q51.   Are there different ways employees can be familiarized on new territory?

A51. Yes, the parties have tried different methods on different territories and finds that several methods work.

ARTICLE X -- IMPLEMENTATION

Q52.   If Local Chairmen are required to lose time or to incur expense in connection with implementation of this Agreement, how will Carrier handle compensation for such lost time and expense?

A52.   Reimbursement for lost time and for necessary and reasonable expenses, consistent with applicable Carrier policies, will be the Carrier's responsibility.