ARTICLE 2

WAGES

(Effective July 1, 2000)

A. RATES OF PAY

1. Yardmen

2. Conductors

3. Trainmen

3. Guarantee Rates of Pay

4. Special Allowance Rates - Crew Consist Trainmen/Yardmen (Seniority prior to December 6, 1991)

B. GENERAL WAGE INCREASES

1. First General Wage Increase

Effective December 1, 1995, all standard basic daily rates of pay for employees represented by the United Transportation Union in effect on the preceding day shall be increased by three-and-one-half (3½) percent.

2. Second General Wage Increase

Effective July 1, 1997, all standard basic daily rates of pay in effect on June 30, 1997 for employees represented by the United Transportation Union shall be increased by three-and-one-half (3½) percent, computed and applied in the same manner prescribed in Paragraph 1. above.

3. Third General Wage Increase

Effective July 1, 1999, all standard basic daily rates of pay in effect on June 30, 1999 for employees represented by the United Transportation Union shall be increased by three-and-one-half (3½) percent, computed and applied in the same manner prescribed in Paragraph 1. above.

4. Application of Wage Increases

a. The adjustments provided for in this Article will apply to mileage rates of pay for overmiles, and will not apply to duplicate time payments, including arbitraries and special allowances that are expressed in time, miles or fixed amounts of money.

b. In train and yard ground service, miscellaneous rates based upon hourly or daily rates of pay, as provided in the schedules or wage agreements, shall be adjusted in the same manner as heretofore increased under previous wage agreements.

c. In determining new hourly rates, fractions of a cent will be disposed of by applying the next higher quarter of a cent.

d. Daily earnings minima shall be changed by the amount of the respective daily adjustments.

e. Existing monthly rates and money monthly guarantees applicable in train service will be changed in the same proportion as the daily rate for the class of service involved is adjusted.

f. Existing money differentials above existing standard daily rates shall be maintained.

g. In local freight service, the same differential in excess of through freight rates shall be maintained.

h. In computing the first increase in rates of pay effective under Paragraph B.1. for employees employed in local freight service, or on road switchers, roustabout runs, mine runs, or in other miscellaneous service, on runs of miles equal to or less than the number comprising a basic day, which are therefore paid on a daily basis without a mileage component, whose rates had been increased by "an additional $.40" effective July 1, 1968, the three-and-one-half (3½) percent increase shall be applied to daily rates in effect on the day preceding the effective date of the general wage increase provided for in Paragraph B.1., exclusive of car scale additives, local freight differentials, and any other money differential above existing standard daily rates. The same procedure shall be followed in computing the increases effective July 1, 1997 and July 1, 1999. The rates produced by application of the standard local freight differentials and the above-referred-to special increase of "an additional $.40" to standard basic through freight rates of pay are set forth in Paragraph A.

i. Other than standard rates:

(1) Existing basic daily rates of pay other than standard shall be changed, effective as of the dates specified in Paragraphs B.1., B.2. and B.3. hereof, by the same respective percentages as set forth therein, computed and applied in the same manner as the standard rates were determined.

(2) Daily rates of pay, other than standard, of employees employed in local freight service, or on road switchers, roustabout runs, mine runs, or in other miscellaneous service, on runs of miles equal to or less than the number encompassed in the basic day, which are therefore paid on a daily basis without a mileage component, shall be increased as of the effective dates specified in Paragraphs B.1., B.2. and B.3. hereof, by the same respective percentages as set forth therein, computed and applied in the same manner as provided in Paragraph i.(1) above.

C. LUMP SUM PAYMENTS

1. First Lump Sum Payment

On July 1, 1996, each employee will be paid a lump sum equal to the excess of (i) three (3) percent of the employee's compensation for 1995, including pay for overmiles but excluding pay elements not subject to general wage increases under Paragraph B.4. of this Article and lump sums, over (ii) the lesser of (x) one-half of the amount described in clause (i) above and (y) two times one-quarter of the amount, if any, by which the Carriers' payment rate for 1996 for foreign-to-occupation health benefits under the Railroad Employees National Health and Welfare Plan (Plan) exceeds such payment rate for 1995.

2. Second Lump Sum Payment

On July 1, 1998, each employee will be paid a lump sum equal to the excess of (i) three-and-one-half (3½) percent of the employee's compensation for 1997, including pay for overmiles but excluding pay elements not subject to general wage increases under Paragraph B.4. of this Article and lump sums, over (ii) the lesser of (x) one-half of the amount described in clause (i) above and (y) one-and-one-half times one-quarter of the amount, if any, by which the Carriers' payment rate for 1998 for foreign-to-occupation health benefits under the Plan exceeds such payment rate for 1995.

3. Eligibility for Receipt of Lump Sum Payments

The lump sum payments provided for in this Article will be paid to each employee subject to this Agreement who has an employment relationship as of the date such payments are payable, or has retired or died subsequent to the beginning of the applicable calendar year used to determine the amount of such payment. There shall be no duplication of the lump sum payments by virtue of employment under another agreement nor will such payments be used to offset, construct or increase guarantees in protective agreements or arrangements.

NOTE: Calculation of Vacation Pay

The signing bonus payable on or about July 1, 1996 and lump sum payments provided for in Paragraphs C.1. and C.2. of this Article will be included in the earnings of an employee in the determination of vacation allowances due in the year subsequent to their payment.

4. DEFINITIONS

The Carriers' payment rate for any year for foreign-to-occupation health benefits under the Plan shall mean twelve (12) times the payment made by the Carriers to the Plan per month (in such year) per employee who is fully covered for employee health benefits under the Plan. Carrier payments to the Plan for these purposes shall not include the amount per such employee per month (in such year) taken from the Special Account, or from any other special account, fund or trust maintained in connection with the Plan, to pay or provide for current Plan benefits, or any amounts paid by remaining Carriers to make up the unpaid contributions of terminating Carriers pursuant to Article III, Part A, Section 1, of the UTU Implementing Document of November 1, 1991, Document A.

D. RATE PROGRESSION

1. New Hires

In any class of service or job classification, rates of pay, additives, and other applicable elements of compensation for an employee whose seniority in train service is established after October 31, 1985, will be 75% of the rate for present employees and will increase in increments of 5 percentage points for each year of active service until the new employee's rate is equal to that of present employees. A year of active service shall consist of a period of 365 calendar days in which the employee performs a total of 80 or more tours of duty.

2. Adjustment for Promotion

a. An employee who is subject to Article IV, Section 5 of the UTU Implementing Document A of November 1, 1991 (Rate Progression - New Hires) on June 1, 1996 shall have his position on the rate progression scale adjusted to the next higher level upon promotion to conductor/foreman or engineer (on a Carrier party hereto on which the UTU represents engineers). Such an employee who has already been promoted to conductor/foreman or engineer shall have his position on the rate progression scaled adjusted to the next higher level on June 1, 1996.

b. The next adjustment to an employee's position on the rate progression scale after the adjustment specified in Paragraph D.2.a. of this Article shall be made when such employee completes one year of "active service" (as defined by the aforementioned Article IV, Section 5) measured from the date on which that employee would have attained the position on the rate progression scale provided pursuant to Paragraph D.2.a. of this Article.

3. This Paragraph D. is not intended to restrict any of the existing rights of a Carrier except as specifically provided herein.

E. DUPLICATE TIME PAYMENTS

1. Duplicate time payments, including arbitraries and special allowances that are expressed in time or miles or fixed amounts of money, shall not apply to employees whose seniority in train or engine service is established after October 31, 1985.

2. Duplicate time payments, including arbitraries and special allowances that are expressed in time or miles or fixed amounts of money, not previously eliminated, shall not be subject to general, cost-of-living or other forms of wage increases.

1. Cost-of-Living Payments Under National Implementing Document dated November 7, 1991

The nine-cent cost-of-living allowance in effect beginning July 1, 1995 pursuant to Article II, Part B of the UTU Implementing Document of November 1, 1991, Document A, shall be rolled into basic rates of pay on November 30, 1995 and such Article II, Part B shall be eliminated at that time. Any amounts paid from January 1, 1996 under the aforementioned COLA provision (effective January 1, 1996) shall be deducted from amounts payable under Paragraph B. of this Article.

2. Cost-of-Living Allowance through January 1, 2000 and Effective Date of Adjustment

a. A cost-of-living allowance, calculated and applied in accordance with the provisions of Part 3. of this Paragraph F., except as otherwise provided in this Part, shall be payable and rolled into basic rates of pay on December 31, 1999.

b. The measurement periods shall be as follows:

The number of points change in the CPI during each of these measurement periods shall be added together before making the calculation described in Paragraph 3.a.(5) of this Paragraph F.

c. (1) Floor. The minimum increase in the CPI that shall be taken into account shall be as follows:

(2) Cap. The maximum increase in the CPI that shall be taken into account shall be as follows:

d. The cost-of-living allowance payable to each employee and rolled into basic rates of pay on December 31, 1999 shall be equal to the difference between (i) the cost-of-living allowance effective on that date pursuant to this Part, and (ii) the lesser of (x) the cents per hour produced by dividing one-quarter of the increase, if any, in the Carriers' 1998 payment rate for foreign-to-occupation health benefits under the Plan over such payment rate for 1995, by the average composite straight-time equivalent hours that are subject to wage increases for the latest year for which statistics are available, and (y) one half of the cost-of-living allowance effective on December 31, 1999 pursuant to this Paragraph.

3. Cost-of-Living Allowances and Adjustments Thereto After January 1, 2000

a. Cost-of-Living Allowance and Effective Dates of Adjustments

(1) A cost of living allowance will be payable in the manner set forth in and subject to the provisions of this Part, on the basis of the "Consumer Price Index for Urban Wage Earners and Clerical Workers (Revised Series) (CPI-W)" (1967=100), U.S. Index, all items - unadjusted, as published by the Bureau of Labor Statistics, U.S. Department of Labor, and hereinafter referred to as the CPI. The first such cost-of-living allowance shall be payable effective July 1, 2000 based, subject to Paragraph (d), on the CPI for March 2000 as compared with the CPI for September 1999. Such allowance, and further cost-of-living adjustments thereto which will become effective as described below, shall be based on the change in the CPI during the respective measurement periods shown in the following table, subject to the exception provided in Paragraph 3.a.(4)(c), according to the formula set forth in Paragraph 3.a.(5).

Measurement Periods and Effective Dates conforming to the above schedule shall be applicable to periods subsequent to those specified above during which this Article is in effect.

(2) While a cost-of-living allowance is in effect, such cost-of-living allowance shall apply to straight time, overtime, vacations, holidays and to special allowances in the same manner as basic wage adjustments have been applied in the past, except that such allowance shall not apply to duplicate time payments, including arbitraries and special allowances that are expressed in time, miles or fixed amounts of money.

(3) The amount of the cost-of-living allowance, if any, that shall be effective from one adjustment date to the next may be equal to, or greater or less than, the cost-of-living allowance in effect in the preceding adjustment period.

(4). (a) Cap - In calculations under Paragraph 3.a.(5), the maximum increase in the CPI that shall be taken into account will be as follows:

Effective Dates of Adjustment and Maximum CPI Increases conforming to the above schedule shall be applicable to periods subsequent to those specified above during which this Article is in effect.

(b) Limitation. In calculations under Paragraph 3.a.(5), only fifty (50) percent of the increase in the CPI in any measurement period shall be considered.

(c) If the increase in the CPI from the base month of September 1999 to the measurement month of March 2000 exceeds 3% of the September 1999 base index, the measurement period that shall be used for determining the cost-of-living adjustment to be effective the following January shall be the 12-month period from such base month of September; the increase in the index that shall be taken into account shall be limited to that portion of the increase that is in excess of 3% of such September base index; and the maximum increase in that portion of the index that may be taken into account shall be 6% of such September base index less the 3% mentioned in the preceding clause, to which shall be added any residual tenths of points which had been dropped under Paragraph 3.a.(5) below in calculation of the cost-of-living adjustment which shall have become effective July 1, 2000 during such measurement period.

(d) Any increase in the CPI from the base month of September 1999 to the measurement month of September 2000 in excess of 6% of the September 1999 base index shall not be taken into account in the determination of subsequent cost-of-living adjustments.

(e) The procedure specified in subparagraphs (c) and (d) above shall be applicable to all subsequent periods during which this Article is in effect.

(5) Formula. The number of points change in the CPI during a measurement period, as limited by Paragraph 3.a.(4), will be converted into cents on the basis of one cent equals 0.3 full points. (By "0.3 full points" it is intended that any remainder of 0.1 point or 0.2 points of change after the conversion will not be counted.)

The cost-of-living allowance in effect on December 31, 2000 shall be adjusted (increased or decreased) effective January 1, 2001 by the whole number of cents produced by dividing by 0.3 the number of points (including tenths of points) change, as limited by Paragraph 3.a.(4), in the CPI during the applicable measurement period. Any residual tenths of a point resulting from such division shall be dropped. The result of such division shall be added to the amount of the cost-of-living allowance in effect on December 31, 2000 if the CPI shall have been higher at the end than at the beginning of the measurement period, and subtracted therefrom only if the index shall have been lower at the end than at the beginning of the measurement period and then, only, to the extent that the allowance remains at zero or above. The same procedure shall be followed in applying subsequent adjustments.

(6) Continuance of the cost-of-living allowance and the adjustments thereto provided herein is dependent upon the availability of the official monthly BLS Consumer Price Index (CPI-W) calculated on the same basis as such Index, except that, if the Bureau of Labor Statistics, U.S. Department of Labor should, during the effective period of this Article, revise or change the methods or basic data used in calculating such Index in such a way as to affect the direct comparability of such revised or changed index with the CPI-W during a measurement period, then that Bureau shall be requested to furnish a conversion factor designed to adjust the newly revised index to the basis of the CPI-W during such measurement period.

b. Payment of Cost-Of-Living Allowances

(1) The cost-of-living allowance payable to each employee effective July 1, 2000 shall be equal to the difference between (i) the cost-of-living allowance effective on that date pursuant to PgParagraph3.a. of this Paragraph F., and (ii) the lesser of (x) the cents per hour produced by dividing one-quarter of the increase, if any, in the Carriers’ 1999 payment rate for foreign-to-occupation health benefits under the Plan over such payment rate for 1998, by the average composite straight-time equivalent hours that are subject to wage increases for the latest year for which statistics are available and (y) one-half of the cost of living allowance effective July 1, 2000.

(2) The increase in the cost-of-living allowance effective January 1, 2001 pursuant to Paragraph 3.a. of this Paragraph F. shall be payable to each employee commencing on that date.

(3) The increase in the cost-of-living allowance effective July 1, 2001 pursuant to Paragraph 3.a. of this Paragraph F. shall be payable to each employee commencing on that date.

(4) The procedure specified in Paragraphs (2) and (3) above shall be followed with respect to computation of the cost-of-living allowances payable in subsequent years during which this Article is in effect.

(5) The definition of the Carrier’s payment rate for foreign-to-occupation health benefits under the Plan set forth in Paragraph C.4. of this Article shall apply with respect to any year covered by this Paragraph b.

(6) In making calculations under this Paragraph b., fractions of a cent shall be rounded to the nearest whole cent; fractions less than one-half cent shall be dropped and fractions of one-half cent or more shall be increased to the nearest full cent.

c. Application of Cost-Of-Living Allowances

The cost-of-living allowance provided for by Paragraph 3.a. of this Paragraph F. will not become part of basic rates of pay. Such allowance will be applied as follows:

Each one cent per hour of cost-of-living allowance will be treated as an increase of 8 cents in the basic daily rates of pay produced by application of Article 2 of this Agreement. The cost-of-living allowance will otherwise be applied in keeping with the provisions of Section B.4. of Article 2.

d. Continuation of provisions of Paragraph F.3.

The arrangements set forth in Paragraph F.3. of this Article shall remain in effect according to the terms thereof until revised by the parties pursuant to the Railway Labor Act.

QUESTIONS AND ANSWERS

Question #1: Are payments received by employees as a result of Productivity Fund buyouts to be included as compensation for the purpose of calculating the lump sum payment provided for in this Article?

Answer: No. Such payments are not to be considered as part of the compensation for this purpose.

Question #2: How will an employee be able to verify that he/she has received the full lump sum to which they are entitled pursuant to Paragraphs C.1. and C.2.?

Answer: The Carrier will provide the General Chairperson with a detailed explanation of the manner in which the lump sums have been calculated. Any employee who believes that his payment is incorrect will, upon request to the Carrier, receive an explanation of how such payment was calculated.

Question #3: Do the General Wage Increases provided for in Article 2.B. apply to guaranteed Extra Boards and other reserve board payments which are contained in crew consist agreements?

Answer: Yes, except where the applicable crew consist agreement provides that general wage increases will not apply to such payments.

Question #4: In calculating an employee's compensation for lump sum payments provided for in this Article, what is the basis upon which the percentage is determined?

Answer: The employee's "compensation" as used on such employee's Carrier to determine vacation pay entitlement in the calendar year so stated beginning January 1 and extending through December 31.

Question #5: Are the lump sum payments applicable to employees who are suspended, as well as employees who are reinstated with rights unimpaired?

Answer: Yes, because in both cases the employment relationship is maintained.

Question #6: Does the December 31, 1999, 4%/6% COLA apply to overmiles?

Answer: Yes.

Question #7: Will payments received by employees who are available on guaranteed extra lists and/or reserve pools, but not used, be considered when calculating the lump sum payments?

Answer: Yes, so long as such payments are subject to general wage increases. This Article does not affect lump sum eligibility provisions in a crew consist agreement.

Question #8: An employee had earnings in 1994 and 1995, however, the employee is not currently active due to disability. Is this employee eligible for the 1996 lump sum payment?

Answer: Yes, so long as the employee maintains his/her employment relationship with the Carrier, or subsequently retires or dies.

Question #9: Is it a correct understanding that those pay elements which were frozen by the provisions of Article IV, Section 5 of the 1985 UTU National Agreement will not be included in determining an employee's base year compensation?

Answer: The employee's "compensation" to determine vacation pay entitlement in the calendar year so stated beginning January 1 and extending through December 31 will be used in determining an employee's base year compensation.

Question #10: Does an employee's base year compensation include reduced crew allowances and/or Conductor Only payments:

Answer: The employee's "compensation" to determine vacation pay entitlement in the calendar year so stated beginning January 1 and extending through December 31 will be used in determining an employee's base year compensation.

Question #11: If an employee received a bonus payment from the Carrier when "borrowing out" on other seniority districts, will such payment be included when calculating the lump sum payments provided for in this Article?

Answer: The employee's "compensation" to determine vacation pay entitlement in the calendar year so stated beginning January 1 and extending through December 31 will be used in determining an employee's base year compensation.

Question #12: How will the lump sums be calculated for an employee who performed service for a Carrier not party to this contract during the years of 1994 and 1995, but currently employed by a Carrier party hereto?

Answer: Only compensation earned on the Carrier party to this agreement at which employed on the date payment is due will be credited.

Question #13: What is the definition of "foreign-to-occupation" as used Paragraph C.4.?

Answer: "Foreign-to-occupation" is defined in Article 2, Paragraph C.4. to mean "other than on duty".

(Applicable to Paragraph D. - Rate Progression)

Question #1: What rate of pay is applicable to employees who are promoted to conductor (foreman) and/or engineer but are working as brakemen (helpers) and/or hostler?

Answer: Once an individual is promoted to conductor (foreman) and/or engineer, that employee receives the applicable rate percentage, regardless of the craft in which they are working, until such time as they reach the next rate step in accordance with Article IV, Section 5 of the 1991 Implementing Document.

Question #2: An 80% entry rate employee promoting to Conductor March 1, 1996, immediately elevates to the 85% entry rate. On his/her July 1, 1996 hiring anniversary date does the entry rate of that employee increase to 90%?

Answer: No. The employee goes to 90% on July 1, 1997.

Question #3: What constitutes "promotion to yardmaster" as contained in Article VI - Rate Progression - Section 1 of the Yardmasters' Agreement dated May 8, 1996?

Answer: For application of this rule, when an employee has been qualified to work a yardmaster position.

Question #4: An employee is elevated to the next step in the rate progression upon promotion from brakeman to conductor. Does that employee elevate to the next step upon subsequent promotion to engineer?

Answer: Yes, where UTU is the certified representative for the craft of locomotive engineer.

Question #5: If an individual is promoted to conductor and thereby advanced to the next higher wage step, will the wage step be advanced again if later promoted to foreman?

Answer: No.

Question #6: Where existing promotion rules or practices provide for the automatic promotion to conductor and engineer upon promotion to either conductor or engineer, will an employee be elevated two (2) steps on the wage scale?

Answer: Yes

This page last updated: March 01, 2005