AGREEMENT

TABLE OF CONTENTS

PREAMBLE:...........................................................................................................................5

ARTICLE 1 – PURPOSE.............................................................................................................5

ARTICLE 2 - GENERAL PRINCIPLES...........................................................................................5

ARTICLE 3 – RECOGNITION......................................................................................................5

ARTICLE 4 - SCOPE OF AGREEMENT.........................................................................................6

ARTICLE 5 - WAGES................................................................................................................6

ARTICLE 6 - EMPLOYMENT SECURITY......................................................................................6

ARTICLE 7 - SENIORITY...........................................................................................................7

Section 1 General........................................................................................................................7

Section 2 Establishment................................................................................................................7

Section 3 Furloughed Trainmen.....................................................................................................7

Section 4 Re-Entering Service.......................................................................................................7

Section 5 Seniority Maintenance Fee...............................................................................................7

Section 6 Seniority Districts and Extra Board Locations......................................................................8

Section 7 Prior Rights Seniority...................................................................................................17

Section 8 Seniority Roster...........................................................................................................17

Section 9 Promotion..................................................................................................................18

Section 10 Forced Promotion to Engine Service................................................................................18

ARTICLE 8 - JOB VACANCIES AND BIDDING............................................................................19

Section 1 Regular Assignments and Extra Boards............................................................................19

Section 2 Assignment to Positions...............................................................................................20

Section 3 Transfers....................................................................................................................21

ARTICLE 9 - ANNULMENT OF ASSIGNMENTS...........................................................................21

ARTICLE 10 - ABOLISHMENT AND DISPLACEMENT..................................................................21

ARTICLE 11- GUARANTEED. EXTRA BOARD (GEB)...................................................................22

ARTICLE 13 – RULES / INSTRUCTION CLASSES.........................................................................24

ARTICLE 14 - ON AND OFF DUTY POINT................................................................................25

ARTICLE 15 - CALLING FOR DUTY..........................................................................................26

Section 1 Calling.......................................................................................................................26

Section 2 Used out of Order........................................................................................................26

Section 3 Called and Released.....................................................................................................27

Section 4 Familiarization of Territory............................................................................................27

Section 5 Supplemental Boards....................................................................................................27

ARTICLE 16 – MEAL PERIODS..................................................................................................27

ARTICLE 17 - EXPENSES.........................................................................................................27

Section 1 Held Away From Home Terminal.....................................................................................27

Section 2 Transportation Expense...............................................................................................28

Section 3 Deadheading...............................................................................................................29

Section 4 Aggregate Service........................................................................................................29

ARTICLE 18 - PERSONAL LEAVE DAYS (PLD’s).........................................................................29

ARTICLE 19 – BEREAVEMENT LEAVE....................................................................................30

ARTICLE 20 - HOLIDAYS........................................................................................................30

ARTICLE 21 – VACATION.......................................................................................................30

Section 1 Entitlements................................................................................................................31

Section 2 United Transportation Union - Union Officials..................................................................33

Section 3 General......................................................................................................................33

ARTICLE 22 - BENEFITS.........................................................................................................33

Section 1 Health & Welfare.........................................................................................................33

Section 2 Short Term Disability...................................................................................................34

Section 3 Life Insurance.............................................................................................................34

Section 4 Other.........................................................................................................................34

Section 5 Off Track Vehicle Accident Benefits...............................................................................34

Section 6 Stock Purchase Plan....................................................................................................34

Section 7 Employee Assistance Program........................................................................................34

Section 8 401K Plan..................................................................................................................34

ARTICLE 23 - PHYSICAL EXAMINATIONS................................................................................35

ARTICLE 24 - MEDICAL DISQUALIFICATIONS...........................................................................35

ARTICLE 25 - PAYDAY............................................................................................................35

ARTICLE 26 - PAYROLL AND DEDUCTIONS..............................................................................35

ARTICLE 27 - UNION SHOP AGREEMENT...............................................................................36

ARTICLE 28 - HANDLING OF CLAIMS AND GRIEVANCES...........................................................37

Section 1 Representation............................................................................................................37

Section 2 Claims and/or Grievance Process....................................................................................37

ARTICLE 29 – INVESTIGATIONS AND DISCIPLINE.....................................................................38

ARTICLE 30 - TIME OFF FOR UNION BUSINESS.........................................................................39

ARTICLE 31 - ATTENDING COURT AND INQUESTS....................................................................39

ARTICLE 32 - LEAVE OF ABSENCE WITHOUT PAY....................................................................40

Section 1 General......................................................................................................................40

Section 2 Less Than 1 Year.........................................................................................................40

Section 3 Illness / Injury.............................................................................................................40

Section 4 Official / Military.........................................................................................................40

ARTICLE 33 - JURY DUTY.......................................................................................................41

ARTICLE 34 - BULLETIN BOARDS...........................................................................................41

ARTICLE 35 – PRODUCTIVITY FUND / CREW CONSIST..............................................................41

Section 1 Productivity Fund........................................................................................................41

Section 2 Crew Consist..............................................................................................................42

ARTICLE 36 - CREW CALLING RECORDS..................................................................................42

ARTICLE 37 - GENERAL PROVISIONS......................................................................................43

Side Letter 1 - Reversionary Provisions...........................................................................................45

Side Letter 2 – Regular Assignments and GEB’s...............................................................................47

Side Letter 3 - Regulatory Changes................................................................................................48

Side Letter 4 - Standing Bid.........................................................................................................49

Side Letter 5 - Supplemental Board...............................................................................................53

Side Letter 6 - Allocation............................................................................................................53

Side Letter 7 – Remote Control....................................................................................................54

Side Letter 8 – Temporary Shortage...............................................................................................57

Side Letter 9 – Harris Cola..........................................................................................................59

Side Letter 10 – Terminal Closure.................................................................................................60

Side Letter 11 – Booking Rest......................................................................................................61

Side Letter 12 – Claim Settlement.................................................................................................62

Side Letter 13 - Transaction Rights................................................................................................63

Side Letter 14 – Vacation Discussions............................................................................................64

Side Letter 15 – Meal Period........................................................................................................65

Side Letter 16 – Interchange Equity...............................................................................................66

PREAMBLE:

This agreement is intended to provide enhanced quality of life, employment security and compensation enhancements to the UTU membership in addition to providing operating flexibility to the Company, resulting in increased productivity. Therefore, it is hereby agreed:

ARTICLE 1 – PURPOSE

The fundamental objective of the Company is to operate a safe, efficient and effective railroad transport operation and a key component to the success of this venture is the contribution of a Conductor and Brakeman (hereinafter referred to as Trainmen.)

This Agreement is founded on a principle of paying for Trainmen’s time on an all-inclusive basis and contemplates that in order for the operation to be successful, individuals will perform all duties requested of them, subject to the provisions contained herein.

ARTICLE 2 - GENERAL PRINCIPLES

A. In this Agreement, words importing the singular shall include the plural and vice versa where the context requires. Words importing the masculine gender shall include the feminine where the context requires.

B. This Agreement is intended to be applied in a non-discriminatory manner without regard to age, race, creed, color, gender, national origin, disability, sexual orientation or marital status.

C. The parties recognize that this is a new Agreement, which replaces any and all existing Agreements, unless otherwise provided, and introduces changes in the workplace. In recognition of this a committee consisting of the UTU General Chairperson, a UTU Member appointed by the General Chairperson, and the Company's General Manager (s) Operations and Director Labor Relations or their respective designates, two from each party, will be established. This committee will be known as the Labor / Management Resolution Committee, and will meet quarterly (the second Friday of January, April, July and October, unless otherwise agreed) to review the application of this Agreement. (Q&A)

ARTICLE 3 – RECOGNITION

A. This Agreement covers all Conductors, Brakeman and Utility positions employed by the Company and represented by the United Transportation Union under the Railway Labor Act, as amended.

B. The term "Trainman" as herein referred to shall include employees represented by the United Transportation Union, except where otherwise specifically provided for herein. The term "Company" shall mean the Canadian National Railway/Illinois Central Railroad/Chicago Central Pacific/former GM&O Railroad (CN/IC). The term "Union" or "General Committee" shall mean the United Transportation Union.

C. The right to make and interpret contracts covering rules, rates of pay and working conditions on behalf of employees covered by this Agreement shall be vested in the regularly constituted General Committee of the United Transportation Union.

D. Where the term "duly accredited representative" appears herein, it shall be understood to mean the regularly constituted General Committee and/or the Officers of the United Transportation Union of which such General Committee or Officers are a part.

ARTICLE 4 - SCOPE OF AGREEMENT

Trainmen employed under this Agreement shall perform the duties traditionally required of trainmen involved on the CN/IC in the movement of trains, rail cars and equipment within terminal(s) or on road territories as required in addition to that which is included in this agreement to meet the service requirements of the customer. Additionally, the Company may establish Utility Position(s) and such Utility Position(s) shall perform the duties traditionally performed of a Utility position. (Q&A)

ARTICLE 5 - WAGES

A. Effective July 28, 2003, the rate of pay is:

Conductor $30.00 hour.

Utility Employee $30.00 hour.

Brakemen $28.00 hour.

B. This rate will apply to all time on duty, unless otherwise specified in the Agreement.

C. Ten (10) hours or less will constitute a basic day and pay for all time on duty after ten (10) hours will be at the rate of time and one half. Trainmen requesting to be relieved during their tour of duty will be paid actual time on duty. (Q&A)

D. Trainmen who perform service, at the request of the Company, on their assigned rest days shall be paid for such service at the rate of time and one half. (Q&A)

E. New employees will be appointed to the entry level training program and will be paid at ninety percent (90%) of the Brakeman’s hourly rate of pay. Upon accumulating one (1) year of service as Brakeman or upon qualification as Conductor, whichever comes first, such employee will be paid at one hundred percent (100%) of the applicable hourly rate of pay.

F. Unless otherwise provided in this agreement, the rates of pay as indicated herein represent complete and total payment for the performance of all work which is associated with the employees covered by this agreement.

ARTICLE 6 - EMPLOYMENT SECURITY

A. Unless otherwise provided for in Article 32 - Leave of Absence, Section 4, Trainmen who have established seniority prior to the effective date of this Agreement will be provided an assignment (which may be a Regular Assignment or a Guaranteed Extra

Board [GEB] assignment) established pursuant to Article 8 Section 1 of this Agreement, and will not be subject to furlough, provided they have exercised their seniority to the fullest extent on their respective seniority district outlined in Article 7, Section 6, and remain available to protect service. (Q&A)

ARTICLE 7 - SENIORITY

Section 1 General

A. The right of Trainmen to perform service will be governed by seniority, qualifications being equal. The Trainman longest in the service will have the preference.

B. The Company will keep the General Chairperson and each Local Chairperson of the UTU supplied with lists of employees and their seniority dates and rank numbers as Trainmen in conformity with their standing as recorded on the lists subject to the rules hereinafter provided for.

Section 2 Establishment

A. The seniority date of newly hired employees will be the first date of service performed. In the event more than one employee is hired on the same date (start classroom together), seniority will be allocated in the order of the employee’s birthday. (Example –Seniority will be awarded in age order)

Section 3 Furloughed Trainmen

A. Employees who are hired subsequent to the effective date of this Agreement, subject to manpower requirements, may be furloughed. In the event such employees are furloughed they may be used to fill Trainmen vacancies in accordance with their seniority as provided for in Article 8, Section 2 when extra Trainmen are unavailable to fill such vacancies. This applies to vacancies ordinarily filled by extra men. Furloughed employees must provide the Company with a current telephone number to be contacted if they desire to protect service requirements when the procedures provided for in Article 11 (GEB) have been exhausted.

B. Furloughed employees will be subject to recall and will be provided a recall to service notice via certified letter which will be sent to their last known address. Employees must respond to the Company within fifteen (15) days and must report for duty within thirty (30) days from the date of receipt of the certified letter. It is the furloughed employee’s responsibility to provide the Company with their current address. Employees who fail to report as outlined herein will have their name removed from the seniority roster and their services with the Company terminated.

Section 4 Re-Entering Service

Trainmen reinstated retain their rank of seniority. Trainmen reemployed lose their former rank and enter the service as new employees.

Section 5 Seniority Maintenance Fee

Effective with the date of this Agreement, Trainmen transferring to engine service shall be subject to payment of their fair share of the expenses of negotiating and administering

the collective bargaining agreement governing their rates of pay, rules and working conditions within the craft of Trainmen and in the protection of their continued Trainman seniority as follows:

A. Trainmen transferring to engine service will have their Trainman’s seniority placed in leave of absence status and will continue to accumulate such seniority. This will apply to the period of time that such employees are required to protect their train service seniority. A service fee payment to the UTU will be required while maintaining and accumulating Trainman seniority.

B. A service fee will be required of Trainman transferring from train service who do not hold membership in the UTU in order to defray the cost of negotiating and administering the collective bargaining agreement governing their rates of pay, rules and working conditions and for the maintenance and accumulation of Trainman seniority. In the event such an employee does not pay the required fees, the General Chairperson shall so notify the designated Company Officer with a copy to the employee involved. Such employees whose payments are delinquent shall have sixty (60) days from the date of the General Chairperson’s letter to correct the delinquency. Failing to correct the delinquency such employee shall not continue to accumulate seniority in the craft or class represented by the United Transportation Union, and that shall be noted on the appropriate seniority rosters.

C. The service fee specified in the preceding paragraphs shall be based upon the costs of negotiating and engaging in all collective bargaining matters, but in no event shall exceed the amount of full monthly dues of the UTU.

D. The provisions outlined in Section 5 herein shall only be implemented upon thirty (30) days written notice by the General Chairperson of the UTU.

Section 6 Seniority Districts and Extra Board Locations

Upon the effective date of this Agreement, the following Seniority Districts will be established and will replace all Seniority Districts and Seniority Rosters previously in effect, subject to provisions of this agreement herein:

Seniority District 1		Sioux City, Council Bluffs and Fort Dodge.
Zone No.	Extra Board Location(s) & Source of Supply Point(s)		Protects
1	Fort Dodge		All Assignments at, or originating on Seniority District 1.

Seniority District 5		Champaign, Decatur, Mattoon and Effingham down to but not including Centralia and Bluford; and up to but not including Paxton.
Other service locations included on this District are Clinton, Farmersville, Heyworth, Springfield, Peoria, Elwin, Newton and Edgewood.
Zone No.	Extra Board Location(s) & Source of Supply Point(s)		Protects
1	Champaign		Champaign • Assignments originating up to but excluding Paxton and down to but excluding Mattoon.
2	Decatur		Decatur: • Including Peoria - IC Junction to Mattoon, including Elwin; excluding Mattoon; • Gilman to Farmersville; Including Clinton to Heyworth, excluding Gilman.
3	Effingham		Effingham • Assignments originating at or between Mattoon and Centralia, excluding Centralia. • Assignments originating at or between Effingham and Bluford; excluding Bluford. • Effingham District, Effingham to Inrd Junction.

Seniority District 6		Centralia, East St. Louis, Benton and Baldwin, up to Cairo but not including Paducah. Other service locations included on this District are Bluford and Metropolis.
Zone No.	Extra Board Location(s) & Source of Supply Point(s)		Protects
1	Centralia		Centralia • Assignments originating at Centralia to Mounds but excluding Mounds • Trainmen at Fulton will be required to protect unfilled vacancies at Cairo, Mounds and Mounds City.
2	East St. Louis		East St. Louis • Assignments originating at East St. Louis and on the St. Louis District but excluding DuQuoin; • Sparta District, Baldwin to Percy
3	Benton		Benton • Assignments originating at Benton at or between Bluford and Paducah Northbound. • All assignments originating on the Eldorado District at or between DuQuoin and Eldorado. • Bluford District limited to assignments originating at or between Bluford and Paducah; including northbound assignments originating at Paducah.

Seniority District 8		Memphis / Fulton South a) Memphis North – all assignments operating north of Memphis including Woodstock, Dyersburg up to but excluding Fulton. First out qualified Trainman on the Memphis North GEB will be required to protect unfilled vacancies at Memphis South when the Memphis South GEB is exhausted. b) Memphis South – all assignments operating within the Memphis Terminal including traffic destined south of Memphis. First out qualified Trainman on the Memphis South GEB will be required to protect unfilled vacancies at Memphis North when the Memphis North GEB is exhausted.
District 8 Zone No.	Extra Board Location(s) & Source of Supply Point(s)		Protects
1	Memphis North		Memphis • Memphis District North; • Fulton District assignments originating at or between Memphis and Dyersburg.
2	Memphis South		Memphis Terminal / Memphis District South • Yazoo District assignments originating at or between Memphis and Greenwood; excluding Greenwood; • Grenada District assignments originating at or between Memphis and Water Valley Junction and Durant;
3	Grenada		• Grenada District assignments originating at or between Water Valley Junction and Durant; • Yazoo District assignments originating at or between Gwin and Greenwood.

Seniority District 2		Waterloo, Cedar Rapids, Dubuque and Freeport.
Zone No.	Extra Board Location(s)			Protects
1	Waterloo			All Assignments at, or originating on Seniority District 2 except for Freeport (see Seniority District 3).
Seniority District 3			Hawthorne, up to, but not including Dubuque.
First out qualified Trainman on the Hawthorne GEB will also be required to protect unfilled vacancies at Freeport and Chicago when the Markham and Glenn Yard GEB’s are exhausted.
Zone No.	Extra Board Location(s) & Source of Supply Point(s)			Protects
1	Hawthorne			All Assignments at or originating on Seniority District 3, and at Chicago when either the Markham or Glenn Yard GEB’s are exhausted.

Seniority District 4		Chicago Terminal, former Joliet District, Bridgeport to Plains and down to and including Paxton.
First out qualified Trainman on the Markham GEB will be required to protect unfilled vacancies at Hawthorne or Glenn Yard when those GEB’s are exhausted.
Zone No.	Extra Board Location(s) & Source of Supply Point(s)		Protects
1	Markham		All Assignments at or originating on Seniority District 4, and at Hawthorne or Glenn Yard when either of these GEB’s are exhausted. Former Prior Right IC employees will have preference to this extra board.
2	Glenn Yard		All assignments at or originating at Glenn Yard, and at Hawthorne or Markham when either of these GEB’s are exhausted. Former Prior Right GM&O employees will have preference to this extra board.

Seniority District 7		Paducah and Fulton.
Zone No.	Extra Board Location(s) & Source of Supply Point(s)		Protects
1	Fulton		• Fulton – Yard and North • Bluford District, Fulton to Bluford, limited to assignments originating at or between Fulton and Maxon and operating into Bluford; • First out qualified Trainmen at Fulton will also be required to protect unfilled vacancies at Rives and Union City. • First out qualified Trainmen at Fulton will also be required to protect unfilled vacancies at Cairo , Mounds and Mounds City. • South bound trains originating at Paducah or Chiles.