1986 NATIONAL AGREEMENT SIDE LETTERS
                                                              #l
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Street
Cleveland, OH  44114
Dear Mr. Sytsma:
      In  accordance with our understanding, this is  to  confirm
that  the  carriers will make their best efforts to  provide  the
lump sum payment provided for in Article III of this Agreement in
a single, separate check within sixty (60) days.
      If  a  carrier  finds it impossible to make  such  payments
within  sixty (60) days, it is understood that such carrier  will
notify  the General Chairmen, in writing, as to why such payments
have  not been made and indicate when it will be possible to make
such payments.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                              @#2
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Street
Cleveland, OH  44114
Dear Mr. Sytsma:
      It  is  understood  that the lump sum payment  provided  in
Article  III of the Agreement of this date will not  be  used  to
offset, construct or increase guarantees in protective agreements
or arrangements.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                              @#3
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Street
Cleveland, OH  44114
Dear Mr. Sytsma:
      This  confirms  our understanding that  the  provisions  of
Article  IX - Entry Rates of the July 26, 1978 National Agreement
shall  no  longer  apply on railroads parties to  this  Agreement
except,  however, that such Article or local rules  or  practices
pertaining  to this subject shall continue to apply to  employees
previously covered by such rules.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                              #3A
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Street
Cleveland, OH  44144
Dear Mr. Sytsma:
      This  refers  to Article V of the Agreement  of  this  date
concerning  the  final  terminal  delay  rule,  particularly  our
understanding  with respect to the use of the term  "deliberately
delayed" in Section 1 of that Article.
      During  the  discussions that led  to  our  Agreement,  you
expressed concern with situations where a crew was instructed  to
stop and was held outside the terminal between the last siding or
station and the point where final terminal delay begins and there
was no operational impediment to the crew bringing its train into
the  terminal; i.e., the train was deliberately delayed  by  yard
supervision.    Accordingly,  we  agreed  that  Section  1  would
comprehend such situations.
     On the other hand, the carriers were concerned that the term
"deliberately delayed" not be construed in such a  manner  as  to
include  time  when crews were held between the  last  siding  or
station  and the point where final terminal delay begins  because
of   typical   railroad  operations,  emergency  conditions,   or
appropriate  managerial  decisions.  A number  of  examples  were
cited  including,  among  others, situations  where  a  train  is
stopped: to allow another train to run around it; for a  crew  to
check  for hot boxes or defective equipment; for a crew to switch
a  plant;  at  a  red  signal (except if  stopped  because  of  a
preceding  train which has arrived at final terminal delay  point
and is on final terminal time, the time of such delay by the crew
so  stopped will be calculated as final terminal delay);  because
of  track or signal maintenance or construction work; to allow an
outbound  train  to  come  out of the  yard;  and  because  of  a
derailment  inside the yard which prevents the  train  held  from
being yarded on the desired track, e.g., the receiving track.  We
agreed that Section 1 did not comprehend such conditions.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                              #3B
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Street
Cleveland, OH  44114
Dear Mr. Sytsma:
      This  refers  to Article V of the Agreement  of  this  date
concerning the payment of mileage operated in the final  terminal
in the application of the final terminal delay rule.
      In accordance with Article V, final terminal delay i~ to be
computed  from  the time the engine reaches the  switch  used  in
entering the final yard within a terminal where the train  is  to
be left or yarded until finally relieved from duty.
      In  the  application of such provision, on railroads  where
road  mileage  ends at present FTD points, road mileage  will  be
adjusted by the distance between the present FTD point(s) and new
FTD point(s) established by this Article V.
      On  railroads which presently compute trip mileage (1) from
center of the yard at the initial terminal to center of the  yard
at  the  final  terminal,  (2) from  roundhouse  at  the  initial
terminal to the roundhouse at the final terminal, (3) on basis of
established mileage as agreed upon regardless of the location  in
the final terminal where trains are actually yarded, or (4) under
similar situations, such trip mileage will continue to apply  and
the  60-minute period referred to in Article V will  be  extended
pursuant  to  Section  2 thereof for trip mileage  allowed  after
passing new FTD point(s).
      Please indicate your agreement by signing your name in  the
space provided below:
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma


#4
     EXAMPLES OF APPLICATION OF DEADHEAD RULE, ARTICLE VI *
     The following examples illustrate application of the rule to
all  employees regardless of when their seniority date in  engine
service   was  established,  except  where  specifically   stated
otherwise:
     1.   What  payment  would be due an engineer  who  performed
          road service from A, the home terminal, to B, the away-
          from-home  terminal,  a  distance  of  170  miles,  and
          deadheaded  from B to A, with the service and  deadhead
          combined between A-B-A?
          A.  A minimum day and 70 over-miles for the service and
          a minimum day and 70 over-miles for the deadhead.
     2.   What  would  be  the payment under Question  1  if  the
          distance between A and B were 75 miles?
          A.  A minimum day and 50 over-miles.
     3.   What  payment  would be due an engineer  who  performed
          road  service  from A to B, a distance  of  170  miles,
          taking  rest  at B, and then being deadheaded  separate
          and  apart from service from B to A, with the  deadhead
          consuming 8 hours?
          A.   A  minimum day and 70 over-miles for  the  service
          trip  from A to B, and a minimum day at the basic  rate
          applicable  to the class of service in connection  with
          which the deadheading is performed.
     4.   What  payment  would be due an engineer  who  performed
          road  service  from A to B, a distance  of  170  miles,
          taking rest at B, and then deadheading separately  from
          service B to A, with the deadhead being completed in 10
          hours?
          A.   He  would be paid a minimum day and 70  over-miles
          for the service trip from A to B, and 10 hours straight
          time  rate of pay at the basic rate applicable  to  the
          class   of   service  in  connection  with  which   the
          deadheading is performed.
     5.   An  engineer  operates a train from his home  terminal,
          point  A,  to the away-from-home terminal, point  B,  a
          distance  of 170 miles.  Upon arrival at the away-from-
          home terminal, he is ordered to deadhead, separate  and
          apart  from  service, to the home terminal.   The  time
          deadheading is 5 hours.  What payment is due?
          A.   A  minimum day plus 70 over-miles for service.   A
          minimum  day  for deadhead if employees'  seniority  in
          engine  or  train service antedates November  1,  1985;
          otherwise, 5 hours.
     6.   Would  at  least  a  minimum  day  at  the  basic  rate
          applicable  to the class of service in connection  with
          which  the  deadheading is performed  be  paid  when  a
          deadhead  i9  separate and apart from service  and  the
          actual time consumed is the equivalent of a minimum day
          or less?
          A.   Yes,  for employees whose seniority in  engine  or
          train service antedates November 1, 1985.  Actual  time
          will be paid to others.
     7.   An engineer is called to deadhead from point A to point
          B,  a distance of 50 miles, to operate a train back  to
          point  A.   He  is instructed to combine  deadhead  and
          service.   Total  elapsed time  for  the  deadhead  and
          service is 7 hours, 30 minutes.  What payment is due?
          A.  A minimum day.
     8.   An engineer is called to deadhead from point A to point
          B,  a  distance of 50 miles, to operate  a  train  from
          point  B  to  point C, a distance of 75 miles.   He  is
          instructed  to  combine deadhead  and  service.   Total
          elapsed time is 10 hours.  What payment is due?
          A.  A minimum day plus 25 over-miles.
     9.   An engineer operates a train from point A to point B, a
          distance  of 50 miles.  He is ordered to deadhead  back
          to  point  A,  service  and deadhead  combined.   Total
          elapsed  time,  8 hours, 30 minutes.  What  payment  is
          due?
          A.  A minimum day plus 30 minutes overtime.
     10.  An  engineer  operates a train from his home  terminal,
          point  A,  to the away-from-home terminal, point  B,  a
          distance  of 275 miles.  After rest, he is  ordered  to
          deadhead, separate and apart from service, to the  home
          terminal.   Time  deadheading is 9 hours,  10  minutes.
          What payment is due?
          A.   A  minimum day plus 175 over-miles for service,  9
          hours, 10 minutes straight time for the deadhead.
     11.  How  is  an engineer to know whether or not deadheading
          is combined with service?
          A.   When deadheading for which called is combined with
          subsequent  service, the engineer  should  be  notified
          when  called.  When deadheading is to be combined  with
          prior  service, the engineer should be notified  before
          being  relieved  from  service.  If  not  so  notified,
          deadheading and service cannot be combined.
      The  following examples illustrate the application  of  the
rule  to  employees whose earliest seniority date  in  engine  or
train service is established on or after November 1, 1985:
     1.   An  engineer  is  called  to  deadhead  from  his  home
          terminal  to an away-from-home point. He last performed
          service 30 hours prior to commencing the deadhead trip.
          The deadhead trip consumed 5 hours and was not combined
          with  the  service trip.  The service trip out  of  the
          away-from-home terminal began within 6 hours  from  the
          time  the deadhead trip was completed. What payment  is
          due?
          A.   5 hours at the straight time rate.
     2.   What  payment would have been made to the  engineer  in
          example 1 if the service trip out of the away-from-home
          terminal had begun 17 hours after the time the deadhead
          trip ended, and the held-away rule was not applicable?
          A.   A minimum day for the deadhead.
     3.   What  payment would have been made to the  engineer  in
          example 1 if the service trip out of the away-from-home
          terminal had begun 18 hours after the time the deadhead
          trip ended, and the engineer received 2 hours pay under
          the held-away rule?
          A.   6 hours at the straight time rate.
     4.   An  engineer  is deadheaded to the home terminal  after
          having   performed  service  into  the   away-from-home
          terminal. The deadhead trip, which consumed 5 hours and
          was  not  combined with the service trip,  commenced  8
          hours  after  the service trip ended. What  payment  is
          due?
          A.   5 hours at the straight time rate.
     5.   What  payment would have been made to the  engineer  in
          example 4 if the deadhead trip had begun 18 hours after
          the  service trip ended and the held-away rule was  not
          applicable.
          A.   A minimum day for the deadhead.
     6.   What  payment would have been made to the  engineer  in
          example 4 if the deadhead trip had begun 18 hours after
          the  time  the  service  trip ended  and  the  engineer
          received 2 hours pay under the held-away rule?
          A.   6 hours at the straight time rate.
     7.   An  engineer is deadheaded from the home terminal to an
          away-from-home   location.   Ten   (10)   hours   after
          completion  of the trip, he is deadheaded to  the  home
          terminal without having performed service. The deadhead
          trips each consumed two hours. What payment is due?
          A.   A minimum day for the combined deadhead trips.
     * NOTE:   The amount of over-miles shown in the examples are
               on the basis of a 100 mile day. The number of over-
               miles  will  be  reduced in  accordance  with  the
               application  of  Article IV, Section  2,  of  this
               Agreement.

                                                               #5
                                                              May
                                                         19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Street
Cleveland, OH 44114
Dear Mr. Sytsma:
      This refers to Article VII, Road Switchers of the Agreement
of this date.
      In  the application of Section 1(c) of the Article, it  was
understood  that  if  a carrier without a pre-existing  right  to
reduce  a  seven day assignment described in Section  1(a)  to  a
lesser number of days reduces such an assignment to six days  per
week, the 48-minute allowance will be payable to employees on the
assignment  whose  seniority  date in  engine  or  train  service
precedes  November  1,  1985. If the  carrier  reduces  the  same
assignment  from seven days to five, an allowance of  96  minutes
would be payable.
      Conversely,  if the carrier had the pre-existing  right  to
reduce  a seven day assignment described in Section 1(a)  to  six
days  per  week, but not to five days, and reduced the seven  day
assignment  to six days per week, no allowance would be  payable.
If  it  reduced the assignment from seven days to five  days,  an
allowance of 48 minutes would be payable.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                                     C.I. Hopkins
I agree:
John F. Sytsma

                                                               #6
                                                              May
                                                         19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Street
Cleveland, OH 44114
Dear Mr. Sytsma:
      This refers to Article VIII, Section 1(b), of the Agreement
of  this  date which provides that only two straight  pickups  or
setouts  will  be made. This does not allow cars  to  be  cut  in
behind  other cars already in the tracks or cars to be picked  up
from behind other cars already in the tracks. It does permit  the
cutting of crossings, crosswalks, etc., the spotting of cars set-
out,  and the re-spotting of cars that may be moved off  spot  in
the making of the two straight setouts or pickups.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                               6A
                                                              May
                                                         19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Street
Cleveland, OH  44114
Dear Mr. Sytsma:
     This refers to Section 1(b) of Article VIII of the Agreement
of  this date which provides that two straight pickups or setouts
may be made without additional compensation.
      It is understood that Section 1(b) of Article VIII does not
modify  the provisions in Article V of the May 13, 1971  National
Agreement  pertaining  to  road crews handling  solid  trains  in
interchange to or from a foreign carrier.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                               #7
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Street
Cleveland, OH  44114
Dear Mr. Sytsma:
     This refers to Article VIII - Road, Yard and Incidental Work
- of the Agreement of this date.
      This  confirms  the understanding that  the  provisions  in
Section  3  thereof, concerning incidental work, are intended  to
remove  any  existing  restrictions upon  the  use  of  employees
represented  by  the BLE to perform the described  categories  of
work and to remove any existing requirements that such employees,
if  used  to  perform the work, be paid an arbitrary  or  penalty
amount   over  and  above  the  normal  compensation  for   their
assignment. Such provisions are not intended to infringe upon the
work rights of another craft as established on any railroad.
      It  is  further understood that paragraphs (a) and  (c)  of
Section 3 do not contemplate that the engineer will perform  such
incidental  work when other members of the crew are  present  and
available.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                               #8
                                                          May 19,
                                                             1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Avenue
Cleveland, OH 44114
Dear Mr. Sytsma:
     This refers to Section 3, Incidental Work, of Article VIII.
      It  was  understood that the reference to moving,  turning,
spotting  and  fueling  locomotives  contained  in  Section  3(b)
includes the assembling of locomotive power, such as rearranging,
increasing  or  decreasing  the locomotive  consist.  It  is  not
contemplated that an engineer will be required to place fuel  oil
or  other  supplies on a locomotive if another qualified employee
is available for that purpose.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                               #9
                                                 January 31, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Street
Cleveland, OH 44114
Dear Mr. Sytsma:
      This confirms our understanding with respect to Article  IX
Interdivisional Service of the Agreement of this date.
      On  railroads  that  elect to preserve  existing  rules  or
practices  with respect to interdivisional runs, the  rates  paid
for miles in excess of the number encompassed in a basic day will
not  exceed those paid for under Article IX, Section 2(b) of  the
Agreement of this date.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                              #9A
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Avenue
Cleveland, OH 44114
Dear Mr. Sytsma:
      This refers to Article IX, Interdivisional Service, of  the
Agreement of this date.
      It  was  understood that except as provided  herein,  other
articles  contained in this Agreement, such as (but  not  limited
to)  the  final  terminal delay and deadhead articles,  apply  to
employees working in interdivisional service regardless  of  when
or  how  such  service was or is established.  However,  overtime
rules  in interdivisional service that are more favorable to  the
employee  than  Article  IV, Section 2, of  this  Agreement  will
continue  to  apply  to  employees who established  seniority  in
engine service prior to November 1, 1985 while such employees are
working interdivisional runs established prior to June 1, 1986.
      Illustrations  of  maintaining present  overtime  rule  for
existing interdivisional runs without standard overtime rules are
shown  below:   [Based  on  104  mile  basic  day  which  becomes
effective July 1, 1986]
     Overtime calculated on basis of 25 m.p.h.,
          250 mile run
          On duty 11 hours (1 Hour overtime)
          Basic day of 104 miles
          Daily rate $111.43
          Mileage rate S1.0819
          Pay:
          Basic day                                    $111.43
          Overmiles (250-104) x $1.0819                 157.96
          Overtime 11-(250/25) x (111.43/8) x 1.5        20.89
                                                            Total
$290.28
     Overtime calculated after 9.5 Hours on duty
          200 mile run
          On duty 10 hours
          Basic day of 104 miles
          Dally rate $111.43
          Mileage rate $1. 0819
          Pay:
          Basic day                                    $111.43
          Overmiles (200-104) x $1.0819                 103.86
              Overtime    10-9.5    x    ($111.43/8)    x     1.5
10.45
                                                            Total
$225.74
      The  overtime provisions of Article IV, Section 2, of  this
Agreement  will apply to employees who established  seniority  in
engine service prior to November 1, 1985 while such employees are
working  interdivisional runs established subsequent to  June  1,
1986. They will also apply to employees who established seniority
in engine service on or after November 1, 1985 regardless of when
the   interdivisional  runs  on  which  they  are  working   were
established.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
I agree:
John F. Sytsma

                                                              #10
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Street
Cleveland, OH  44114
Dear Mr. Sytsma:
      This refers to Article X of the National Agreement of  this
date  permitting certain locomotives which meet the basic minimum
standards of the home railroad or section of the home railroad to
operate on other railroads or sections of the home railroad.
      In  reviewing the current standards that exist on the major
railroads  with  respect to such locomotives, we recognized  that
while  the  standards varied from one property  to  another  with
respect  to various details, the standards on all such  railroads
complied  with  the minimum essential requirements  necessary  to
permit  their  use  in  the manner provided  in  Article  X.  For
example,  such minimum standards for locomotives would include  a
requirement that there are a sufficient number of seats  for  all
crew members riding in the locomotive consist.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                              #11
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Avenue
Cleveland, OH  44114
Dear Mr. Sytsma:
      This will confirm our understanding during the negotiations
of  the  Agreement of this date that where hostler positions  are
filled by employees not having firemen's seniority, that before a
carrier   discontinues  a  hostler  or  hostler  helper  position
pursuant to Article XII, Part A, Section 1(10) or Part B, Section
7(b) of this Agreement, it will be offered to furloughed hostlers
who  have seniority prior to November 1, 1985, to work as hostler
or  hostler helper at that location. If such hostlers  only  have
point  seniority  and there are no furloughed  hostlers  at  such
point,  but  there are such hostlers on furlough  with  seniority
prior  to  November  1,  1985  at  another  point  in  the   same
geographical  area, a vacancy will be offered  to  such  hostlers
before  a  carrier  discontinues  a  hostler  or  hostler  helper
position pursuant to Article XII, Part A, Section 1(10)  or  Part
B, Section 7(b) of this Agreement.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                              #12
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Avenue
Cleveland, OH 44114
Dear Mr. Sytsma:
      This will confirm our understanding during the negotiations
of  the Agreement of this date that before a carrier discontinues
a  hostler  or  hostler helper position pursuant to Article  XII,
Part  A, Section 1(10) or Part B, Section 7(b) of this Agreement,
it will be offered to furloughed firemen who have seniority prior
to  November  1,  1985, to work as hostler or hostler  helper  at
location   where  hostler  or  hostler  helper  job  is   to   be
discontinued. Such employees will retain recall rights to  engine
service in accordance with existing agreements.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                             #12A
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Avenue
Cleveland, OH 44114
Dear Mr. Sytsma:
      This  will confirm our understanding that the reference  to
"another organization" in Article XII, Part A, Section 1 (10)(b),
and  Part B, Section (7)(b) refers to a labor organization  which
does  not hold representation rights for engine or train  service
employees on the particular railroad involved.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                              #13
                                                   May 1 9, 1 986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Avenue
Cleveland, OH  44114
Dear Mr. Sytsma:
      This will confirm our understanding during the negotiations
of  the  Agreement  of this date that the term  "active  firemen,
working as such", appearing in Part A, Section 1, Paragraph  (11)
or  Part B, Section 8 of Article XII, includes hostlers who  have
the right to work as locomotive engineers.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                              #14
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Avenue
Cleveland, OH 44114
Dear Mr. Sytsma:
      This  confirms our understanding that in implementation  of
Article  XII,  Part B, of the Agreement reached this  date,  each
carrier on which Part B will become effective will meet with  the
appropriate  BLE General Chairman within 10 days for the  purpose
of  reaching  an  understanding with respect  to  existing  rules
covering  locomotive firemen and hostlers which  will  remain  in
effect,  it  being  the intention of the parties  that  railroads
which  are  subject to Part B receive ,he same benefits therefrom
as railroads which are subject to Part A. Existing pay rates will
remain in effect provided such railroads continue to receive  the
benefits obtained when such pay rates were negotiated.
      In the event a carrier and the appropriate General Chairman
do  not  reach a satisfactory resolution within thirty days  from
the  date of this Agreement, the matter will be referred  to  the
Informal  Disputes Committee established pursuant to Article  XVI
for  expedited  handling  and final and  binding  arbitration  if
required.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                              #15
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Street
Cleveland, OH 44114
Dear Mr. Sytsma:
      This refers to our discussions leading to the Agreement  of
this  date, particularly those provisions that relate to firemen.
The  carriers  explained that subject to legal  requirements  the
source  of  supply for firemen positions would be  train  service
personnel  as  provided  in the recent  UTU  Agreement.  We  also
explained   that  companion  thereto  in  order  to  expand   the
employment  potential for present engineers and firemen,  whether
represented  by  the  BLE  or UTU, all of  these  engine  service
personnel will be placed in seniority order at the bottom of  the
appropriate train and/or ground service seniority roster.
      The  BLE  stated  that in its capacity  as  the  authorized
representative  of employees who have seniority as  engineers  or
who  have  seniority  as firemen, apprentice engineers  or  other
comparable  positions it had a legitimate bargaining interest  in
negotiating  the issue of providing ground service  seniority  to
such  employees  not  now having such seniority  even  where  the
ground  service  crafts are represented by another  organization,
and  insofar as engineers and firemen who now hold or at one time
did  hold  seniority in ground service i8 concerned, BLE proposed
that  such  employees  should be granted seniority  as  of  their
original date of hire as brakemen or groundmen.
      The  BLE also stated that in its capacity as the authorized
representative  of  employees  who have  seniority  as  engineers
and/or   firemen,   apprentice  engineers  or  other   comparable
positions, it has a legitimate bargaining interest in negotiating
the  issue  of  providing engine service seniority to  train  and
ground  service employees not now having engine service seniority
where  the  ground  service  crafts are  represented  by  another
organization.
      The  carriers  responded that in their view the  matter  of
providing brakemen seniority to such BLE represented employees is
a  matter  between ;he carriers and the organization representing
brakemen and groundmen, not between the carriers and the BLE that
does  not represent those classifications. However, the BLE,  UTU
and  carriers, agree on the desirability of engineers and firemen
who  do not have seniority in train or ground service being given
such  seniority if they so desire. Therefore this  will  be  done
without  prejudice to the position of the BLE or the carriers  to
the extent those positions differ as stated above. However, where
this  occurs the carriers were not agreeable that such  seniority
should be retroactive to date of hire as brakemen or groundmen.
      Insofar  as  providing engine service seniority  to  ground
service  employees, the carriers position was  that  this  was  a
matter  between  the  carriers and the organization  representing
firemen,  which  in many cases is not the BLE;  however,  it  was
unnecessary to address any differences among the parties  because
here,  also,  all  parties agree that the source  of  supply  for
engine  service  should  be ground service  employees,  and  will
provide preferential promotional opportunities on that basis.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                              #16
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Street
Cleveland, OH  44114
Dear Mr. Sytsma:
       This   confirms   our  understanding   with   respect   to
incorporating  a  Hospital Pre-Admission and  Utilization  Review
Program  as  part  of  the benefits provided under  the  Railroad
employees  National  Health and Welfare Plan in  accordance  with
Article XV, Section 2(a) of the Agreement of this date.
       By   agreeing  ,o  this  benefit  program,  our  principal
objectives are to reduce in-patient hospital utilization  thereby
minimizing  exposure  to  risks  of  hospitalization  or   unduly
prolonged hospitalization and the risks of unnecessary surgery by
encouraging both employee and physician to make the most patient-
sensitive  and  at .he same time cost-effective  decisions  about
treatment alternatives.
      The  program accomplishes these objectives by providing  .o
employees  and  other beneficiaries ready access to knowledgeable
professional  personnel when making decisions about their  health
care.  A  number  of patient-centered services are  provided  and
designed  in  a  manner  so  as not to impose  significant  added
burdens  on individual employees. The comprehensive guidance  and
support  structure  begins prior to planned  hospitalization  and
continues through any recovery period.
      Specifically,  the  program shall  include  review  of  the
propriety  of  hospital  admission  (including  consideration  of
health care alternatives such as the use of ambulatory centers or
out-patient treatment) benefit counseling, the plan of  treatment
including  the  length of confinement, the appropriateness  of  a
second  surgical  opinion, discharge  planning  and  the  use  of
effective alternative facilities during convalescence.
      We  have  attached to this letter descriptions of  programs
currently offered by three leaders in this field that describe in
greater  detail  the  operations  of  these  programs  and   what
specifically  is  involved.  These attachments  are  intended  as
informational  only,  describing the  kind  of  program  we  will
establish,  and  do  not suggest that the program  we  ultimately
adopt is limited to what is described or is to be administered by
these particular parties.
      In order ,hat the program achieves its intended objectives,
we  have  agreed to institute appropriate incentives.  For  those
employees  who  use the program, plan benefits will  be  paid  as
provided  and  the  employee and family  will  receive  the  full
protection and security of professionals managing their  hospital
confinement  and  recovery. For employees  who  do  not  use  the
program, plan benefits will be paid only under the Major  Medical
Expense  Benefit  portion of the Plan with the Plan  paying  65%,
rather  than  80%, of covered expenses. However, a maximum  total
employee expense limitation - "stop-loss" will be maintained.
       We   recognize  that  the  program  described  cannot   be
implemented  overnight  but  will  require  careful  review   and
examination on the part of us all and will include, as well, time
to inform the employees and other beneficiaries covered under the
Plan.   Furthermore,  it  is anticipated that  the  program  will
include  use of alternative facilities, such as home health  care
options,  hospices, office surgery, ambulatory surgi-centers  and
birthing centers, some of which are either not covered under  the
Plan now or are not available in the manner envisioned under this
new  program.   Thus,  for  these reasons  we  have  agreed  that
implementation  of  the program will not occur until  practicable
and  that  the intervening time will be used to assure  .hat  its
adoption  shall  be  a constructive and useful  addition  to  the
benefits currently provided under the Plan.
      Please indicate your agreement by signing your name  n  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
Attachments (Descriptive material furnished BLE)
I agree:
John F. Sytsma

                                                              #17
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Street
Cleveland, OH  44114
Dear ~r. Sytsma:
       This  confirms  our  understanding  with  respect  to  the
appointment  of  a  neutral person to serve as  chairman  of  the
Special Committee established pursuant to Article XV, Section  3,
of .he Agreement of this date.
      In  the event we are unable to agree on such a person,  .he
parties  will seek the assistance of an appropriate  third  party
for   the   purpose  of  providing  assistance   in   identifying
individuals qualified to serve in this capacity.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                              #18
                                                     May 19, 1986
Mr. Charles I. Hopkins, Jr.
Chairman
National Railway Labor Conference
1901 L Street, N.W., Suite 500
Washington, DC 20036
Dear Mr. Hopkins:
      This is to advise you that I am agreeable to the provisions
of  Article XV Health and Welfare Plan except .hat in  Section  2
(a),  "Hospital Pre-Admission and Utilization Review Program",  I
will  agree  to the concept of the "Pre-Admission and Utilization
Review  Program" and will agree to its implementation  after  the
Policyholders have met jointly with representatives of  Travelers
and  have agreed on the changes and understandings that  will  be
necessary  to  implement the program.  There must be  ample  lead
time to insure that all covered employees can be notified of  the
implementation date and will have adequate information about  the
plan  so that they can comply with their responsibilities in  the
event they qualify for benefits under the plan.
      I  take  no  exceptions to the use of  surplus  funds,  the
Reinsurance proposal, the Special Committee and/or the moratorium
proposals.
                                                Very truly yours,
                                                   John F. Sytsma

                                                              #19
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Street
Cleveland, OH  44114
Dear Mr. Sytsma:
       This   confirms   our  understanding   with   respect   to
incorporating  a  Hospital Pre-Admission and  Utilization  Review
Program  as  part  of  the benefits provided under  the  Railroad
Employees  National  Health and Welfare Plan in  accordance  with
Article XV, Section 2(a) of the Agreement of this date.
      We  recognize  that  a  similar program  would  be  equally
appropriate  to  include  as part of the Early  Retirement  Major
Medical Benefit Plan.
      Therefore, this confirms our understanding that the program
developed  for  the  Health  and  Welfare  Plan  shall  also   be
incorporated, with appropriate revisions, if necessary,  as  part
of the Early Retirement Major Medical Benefit Plan as well.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                              #20
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Avenue
Cleveland, OH 44114
Dear Mr. Sytsma:
      This will confirm our understanding with respect to the pay
differential for an engineer working without a fireman and  other
related matters:
     (1) Pay Differential
           (a)  Notwithstanding  the  provisions  of  Article  1,
     Section  8(g) and (i) (ii) and Article IV, Section  1(a)  of
     the  Agreement of this date, the differential of  $4.00  per
     basic  day in freight and yard service and 4 cents per  mile
     for  miles  in excess of the number of miles encompassed  in
     the  basic day in freight service, currently payable  to  an
     engineer  working without a fireman on locomotives on  which
     under  the former National Diesel Agreement of 1950  firemen
     would  have  been required, shall be increased to  $6.00  in
     three  installments,  $1.00 effective  July  1,  1986,  $.50
     effective  January  1, 1987; and $.50 effective  January  1,
     1988,  and  to 6 cents per mile in three installments  of  1
     cent, one-half cent, and one-half cent, respectively, on the
     same effective dates.
           (b)  An  engineer  working with a reduced  train  crew
     (established  pursuant  to  a crew  consist  agreement  made
     subsequent to January 1, 1978) and without a fireman will be
     allowed  the standard reduced train crew allowance for  that
     trip  unless  the engineer allowance for working  without  a
     fireman  is  greater.  In  no  event  will  there   be   any
     duplication  or  pyramiding of payments. The term  "standard
     reduced  crew  allowance" referred to herein, is  the  $4.00
     paid  originally to the members of reduced  train  crews  as
     that amount has been modified by subsequent general and cost-
     of-living wage increases.
           (c) Existing notices with respect to adjusting the pay
     differential for an engineer working without a  fireman  are
     disposed  of  by this Agreement and notices concerning  this
     subject are governed by the moratorium provisions of Article
     XVIII,  Section  2  of  this  Agreement.   Existing  notices
     designed  to  change the compensation relationships  between
     the  engineer  and  other members of  the  crew  where  such
     relationships  have been changed because of a  crew  consist
     agreement  are  disposed of by this  Agreement  and  notices
     concerning this subject shall not be served. However, if the
     special  allowance currently payable to a conductor  working
     with  one brakeman is subsequently increased for a conductor
     working without any brakemen, the organization may serve and
     pursue  to  a  conclusion  as hereafter  provided  proposals
     pursuant to the provisions of the Railway Labor Act  seeking
     to   adjust  compensation  relationships  for  engineers  on
     conductor only assignments.
          (d) Any additional allowance shall be limited in amount
     so  that when combined with the differential payable  to  an
     engineer  working  without a fireman, the total  amount  for
     that  trip  or  tour of duty shall be no  greater  than  the
     allowance  paid  to the conductor of that  crew  unless  the
     present engineer allowance for working without a fireman  is
     greater. Where the present engineer allowance is greater  it
     shall be converted to the allowance payable to the conductor
     when the latter allowance exceeds the former.
           (e)  Where the organization serves such a proposal  as
     above provided, the carrier may serve proposals pursuant  to
     the  provisions  of  the Railway Labor  Act  for  concurrent
     handling    therewith   that   would   achieve    offsetting
     productivity improvements and/or cost savings.
           (f) In the event the parties on any carrier are unable
     to resolve the respective proposals by agreement, the entire
     dispute will be submitted to final and binding arbitration a
     L .he request of either party.
     (2) Guaranteed Extra Boards
           (a)  Carriers that do not have the right to  establish
     additional extra boards or discontinue an extra board  shall
     have that right.
          (b) Upon thirty days' advance notice to the appropriate
     general  chairman, a carrier may establish additional  extra
     boards. Upon request of the general chairman, a meeting will
     be  held to discuss the proposed action. However, this shall
     not serve to delay the establishment of any extra board.
           (c) When an extra board is established under this rule
     it  will, unless the general chairman is notified otherwise,
     protect all jobs on that seniority district whose laying off
     and reporting points are closer to the location of the extra
     board  than to the locations of other extra boards  on  that
     seniority district.
           (d) The carrier will regulate the number of employees,
     if  any,  assigned to such extra boards and  will  have  the
     right to discontinue such boards.
           (e)  While  on an extra board established  under  this
     rule,  each  employee will be guaranteed the  equivalent  of
     3000  miles  at  the  basic through freight  rate  for  each
     calendar  month  unless  the  employee  is  assigned  to  an
     exclusive  yard  service  extra board  in  which  event  the
     guarantee  will  be the equivalent of 22 days'  pay  at  the
     minimum  5-day  yard  rate  for  each  calendar  month.  All
     earnings  during the month will apply against the guarantee.
     The  guarantees of employees who are on the extra board  for
     part of a calendar month will be pro rated.
           (f) Except as hereinafter provided, if an employee  is
     suspended  as a result of disciplinary action, lays  off  at
     his  own  request  with  permission, is  not  available  for
     personal  reasons,  or misses a call,  earnings  lost  as  a
     result  thereof will be deducted from the monthly guarantee.
     Unless the needs of the service dictate otherwise, employees
     assigned  to  an  extra  board which protects  yard  service
     exclusively may lay off for a maximum of two days per  month
     without the earnings lost as a result thereof being deducted
     from the monthly guarantee.
           (g) The maximum number of guaranteed extra boards .hat
     can  be in operation on a carrier at any one time under this
     provision  is three in the territory of each regular  source
     of supply point on that carrier.
            (h)  ~o  existing  guaranteed  extra  board  will  be
     supplanted  by a guaranteed extra board under this  rule  if
     the  sole  reason for the change is to reduce the  guarantee
     applicable to employees on the extra board.
           (i) This rule will not be construed as restricting any
     existing  rights  of a carrier to establish  or  discontinue
     extra  boards.  The rights conferred by  this  rule  are  in
     addition to preexisting rights.
      This  letter of understanding shall not apply  on  carriers
that   have  agreements  with  the  organization  adjusting   the
compensation   of  engineers  in  response  to  the   change   in
compensation relationships between engineers and other members of
the  crew  brought  about by crew consist agreements  unless  the
appropriate  BLE  General Chairman elects to  adopt  this  letter
agreement  in  lieu of the compensation adjustments  provided  in
such  agreement. Such election must be exercised on or before  45
days  following the date of this Agreement. If such  election  is
made,  the provisions of such local agreements concerning matters
other than compensation shall be retained.
     Where the General Chairman does not elect to substitute this
letter  of  understanding as provided for in the paragraph  above
and,  therefore,  the local agreement remains in  effect  in  its
entirety   and   such  local  agreement  contains  a   moratorium
provision,  it is agreed that any special allowance provided  for
therein  that  is  subject  to being increased  by  general  wage
increases  shall be excluded from the provisions  of  Article  I,
Section  8(a), Article II, Section 1(b) and (d), and Article  IV,
Section 5(a) and (b).
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
      John F. Sytsma

                                                                 
                                                             #20A
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Street
Cleveland, OH 44114
Dear Mr. Sytsma:
      This  refers  to Letter of Understanding  No.  20  and  the
application of paragraph (b) of (1) Pay Differential with respect
to  railroads where the BLE has outstanding Section 6 notices  to
change  the  compensation relationships between the engineer  and
other  members  of  the crew where such relationships  have  been
changed because of a crew consist agreement subsequent to January
1, 1978.
      This confirms our understanding .hat on such properties the
provisions  of paragraph (b) apply automatically without  further
need to confer.
      Furthermore, when, in the future, any carrier makes a  crew
consist  agreement  as  described in  the  first  paragraph,  the
provision   of   paragraph  (b)  under  Pay   Differential   will
automatically apply.
      Please indicate your agreement by signing your name in  the
space provided below.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.
I agree:
John F. Sytsma

                                                                 
                                                              #21
                 APPLICATION OF LETTER AGREEMENT WITH
                RESPECT TO INTERCRAFT PAY RELATIONSHIPS
      The  following  examples illustrate the maximum  allowances
that can be obtained under the letter agreement of this date with
respect to intercraft pay relationships:
      Example  1  - An engineer i8 on a reduced crew operating  a
distance of 127 miles in a class of service which has a basic day
encompassing 104 miles (July 1, 1986). There is no fireman on the
crew,  The  time consumed on the trip is 9 hours.   No  duplicate
time payments expressed in hours or miles are paid. The conductor
is  receiving a reduced crew allowance of $7.31. What  would  the
engineer be paid?
     A.   The  differential provided in letter agreement #20  for
          operating without a fireman would pay him:
                             104 miles     $5.00
                              23 miles      1.15
                               TOTAL       $6.15
          Since  this  is less than the amount the  conductor  is
          receiving, the engineer would be paid the $7.31 reduced
          crew allowance.
      Example 2 - What would the engineer in example 1 be paid if
the allowance paid to the conductor was subsequently increased to
$8.00?
     A.   The engineer would be paid $8.00
      Example 3 - What would the allowance be if the engineer  in
example  1  were  on an assignment operating a  distance  of  204
miles?
     A.   The  differential provided in letter agreement ~20  for
          operating  without  a fireman would  pay  the  engineer
          $10.00.  Since  this  is  more  than  the  amount   the
          conductor  is  receiving, the  engineer  would  receive
          nothing additional.
      Example 4 - What would the allowance be if the engineer  in
example 1 had earned two hours overtime on the trip?
     A.   The standard rule for operating without a fireman would
          pay the engineer as
follows:
          Basic Day                                     $5.00
          Overmiles (23)                                1.15
          Overtime (2 hours)                             1.88
                              TOTAL                    $8.03
          This  is more than what the conductor received, so  the
          engineer would receive nothing additional.
      Example  5  - An engineer i9 on a reduced crew operating  a
distance of 127 miles in a class of service which has a basic day
encompassing 106 miles (January 1, 1988). There is no fireman  on
the crew. The time consumed on the trip is 9 hours.  No duplicate
time payments expressed in hours or miles are paid. The conductor
on  that railroad is receiving a reduced crew allowance of $7.87.
What would the engineer be paid?
     A.   The  differential provided in letter agreement #20  for
          operating without a fireman would pay him:
                    106 miles           $6.00
                     21 miles            1.26
                       TOTAL            $7.26
          Since  this  is less than the amount the  conductor  is
          receiving, the engineer would be paid the reduced  crew
          allowance of $7.87.

                                                              #22
                                                     May 19, 1986
Mr. John F. Sytsma
President
Brotherhood of Locomotive Engineers
1112 Engineers Building
1365 Ontario Street
Cleveland, OH 44114
Dear Mr. Sytsma:
      During  the negotiations that led to the Agreement of  this
date,  the  representatives  of  the  Brotherhood  of  Locomotive
Engineers  expressed concern as to the possible  erosion  of  the
traditional  authority and responsibility vested in the  engineer
while  operating  a  locomotive in  those  situations  where  the
conductor  and  any other train crew members are located  on  the
locomotive because of the elimination of the caboose.
     The carriers responded that the responsibility and authority
of the engineer is not a collective bargaining subject; rather i.
is  a  matter  of  operational policy subject to operating  rules
and/or  other management instructions. The BLE did no.  agree  on
this  point  but  the matter was resolved on  the  basis  of  the
carriers'  statement  .hat  the  removal  of  cabooses  and   the
consequent  relocation of train crew personnel to the  locomotive
cab  did  not  diminish  nor otherwise alter  the  authority  and
responsibility of the engineer.
     Because of the significance the BLE attaches to this matter,
I  am sending a copy of this letter to the Member Lines to advise
them that while nothing has been said or done in our negotiations
to change any railroad's rules, policies or management practices,
we  have  assured  the BLE that the elimination of  cabooses  and
relocation of train service personnel does not alter .hose rules,
policies or management practices.
                                                Very truly yours,
                                               C. I. Hopkins, Jr.

                                                              #23
        JOINT STATEMENT CONCERNING EFFORTS TO IMPROVE THE
              COMPETITIVE ABILITIES OF THE INDUSTRY
       This   refers  to  our  discussions  during   the   recent
negotiations with respect to improving our industry's ability  to
compete  effectively  with other modes of transportation  and  to
attract new business to the railroads.
      We recognize that opportunities will present themselves  on
railroads to promote new business and preserve existing  business
by providing more efficient and more expedient service. It is our
mutual  objective  to  provide this improved  service  by  making
changes,  as  may be necessary, in operations and with  agreement
rule  exceptions  and accommodations in specific  situations  and
circumstances.
      It  is difficult to list specific rules or operations  .hat
might  need  modifications or exceptions in order to provide  the
services that may be necessary to obtain and operate new business
that  can be obtained from other modes of transportation. We  are
in  agreement,  however, that necessary operational  changes  and
rules  modifications or exceptions should be encouraged to obtain
new business, preserve specifically endangered business currently
being  hauled,  or to significantly improve the transit  time  of
existing freight movements.
      We  recognize  .hat attracting new business  and  retaining
present business depends not only on reducing service costs,  but
also on improving service to customers.
      During our discussions, the Lake Erie Plan was advanced  by
BLE,  in  part,  as  a collective bargaining proposal  and  as  a
representation  of  the BLE's search for a possible  approach  to
enhanced  competitive  strength for the  industry.  Although  the
significance of the plan may not necessarily be in the specifics,
the underlying goal of realizing the industry's full potential in
the transportation marketplace is such that further consideration
of  such  concepts may be warranted as a means of achieving  this
goal by cooperative, aggressive undertakings by the BLE, the  UTU
and the railroads.
      The  Informal  Disputes Committee will encourage  expedited
resolutions  on individual railroads consistent with these  goals
and  will  provide  counsel, guidelines and other  assistance  in
making  necessary operational and or agreement  rule  changes  to
provide the type service necessary to meet these goals.
     We sincerely believe that cooperation between the management
and   the  employees  will  result  in  more  business  and   job
opportunities and better service which will insure our industry's
future strength and growth.
John F. Sytsma                             C. I. Hopkins, Jr.
President                                  Chairman
Brotherhood  of  Locomotive                   National  Carriers'
Conference
  Engineers                                  Committee
 
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