ARTICLE IX - PRODUCTIVITY FUND
Section 1. (a) Company Contribution. For each
yard tour of duty or road freight service trip that a crew
is operated with a conductor or foreman and one brakeman or
yard helper, the Company will pay into the Employes' Produc-
tivity Fund the sum of $48.25. This payment will be made on
a pay period cash basis for the sole and exclusive benefit
of the eligible protected road freight train and yard
service employes and is to be considered as an account or
trust of and for the protected employes as sharing in
Productivity Savings. The $48.25 payment into the Employes'
Productivity Fund is not subject to wage and cost-of-living
allowance increases.
(b) Productivity Accounts. Separate employe
Productivity Accounts shall be maintained for each defined
district as determined by the General Committee of Adjust-
ment and Director of Labor Relations. At the end of each
year, each protected employe performing service in that
particular district will share in the division of the
Employes' Productivity Fund, according to the number of yard
tours of duty or road freight trips worked in that district
during that calendar year. For equity purposes, each paid
vacation day, holiday, guarantee day under Rule 59 and
personal leave days taken by an employe will be considered
as a yard tour of duty or road freight train trip to be
credited in computing the employe's share of the
Productivity Fund.
(e) Limitation. The productivity sharing pro-
vided for above Is limited to the extent that the total
amount of a protected employe's annual share of the
Employes' Productivity Fund cannot exceed one-third (1/3) of
said employe's total compensation for that calendar year.
When a protected employe has shares in more than
one Productivity Account, the amounts due from each account
will be combined and the total amount paid cannot exceed
one-third (1/3) of the employe's total compensation for that
calendar year.
When computing one-third (1/3) of a protected
employe's total compensation in any calendar year, payments
or credits received from the Productivity Fund during such
calendar year will not be included in the computation.
(d) Guarantees. Payment made to protected
employes out of the Productivity Fund shall not be used in
the computation or offset of any monetary guarantees.
Vacation Pay. Payments made to protected
employes out of the Productivity Fund shall not be included
in the compensation used as a basis for determining vacation
pay.
(f) Part-Time Employment. A part-time UTU
officer or representative who is unable to work his assign-
ment in road freight or yard service due to being engaged in
official union business will receive credit for such days
(of service) or tours of duty lost toward the number of days
shared in the Fund. Verification for credits earned will be
furnished by the United Transportation Union.
A Carrier officer or Union officer/representative
who works a part of the year in the craft of conductor,
brakeman or yardman will receive credit for the number of
trips or tours of duty toward the number of days shared in
the Fund.
Section 2. Computation of Shares. The value of
the employe's share in the division of the Productivity
Fund, calculated according to the number of yard tours of
duty or road freight trips worked at the end of each year,
will be determined in accordance with the following example:
EXAMPLE:
Amount in Fund at the end of year......$2,820,408.00
Number of protected employes..................621
Total number of road freight
service trips and yard tours of
duty by protected employes only..........66,208
$2,820,408: 66,208 = $42.60
Each protected employe receives
$42.60 x the number of his trips
or tours of duty, e.g. 221 trips x 42.60=$9,414.60
One-Third Cap Limitation:
EXAMPLE:
A protected employe earns $27,000 for
service performed. The employe's payment
from the fund for the year could not
exceed $9,000.00 (1/3 of $27,000.00).
Section 3. Productivity Fund Phase-Out. The Com-
pany's regular pay period cash deposits to the Employes'
Productivity Fund may be discontinued after the actual
dollar amount deposited is equal to not less than the full
amount required to pay all protected employes a full
one-third (1/3) of their annual compensation for the preced-
ing calendar year, adjusted to include cost-of-living and
general wage increases due in the current calendar year. If
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the amount paid is not adequate to pay all monies due
under this Agreement, the Company will make up the deficit.
Section 4. Productivity Fund Agreement. The
necessary arrangements for the establishment and administration
of the Employes' Productivity Fund in compliance with ERISA and
other legal requirements will be finalized within one
hundred twenty days from the effective
date of this Agreement.
Q-l: Do the special allowance and the Employes'
Productivity Fund payment apply to held
time, runarounds, deadheads, call and
release (no work performed), guarantees,
holiday pay when service not performed on
holiday, personal leave pay, vacation
pay, penalty days paid due to violation
of agreement rules, and the like?
A-l: As a general rule, no. These payments
cover road service trips and yard tours
of duty actually worked where the addi-
tional responsibility in working with a
reduced crew is involved. However,
Q-2/A-2 and 0-5/A-5 provide the exceptions. ,
Q-2: Will a deadhead trip by a reduced crew
(one conductor and one brakeman) result
in the Productivity Fund being credited?
A-2: Yes. However, the Special Allowance will
not be paid.
Q-3: Will a relief deadhead trip made by an
employe (single individual) be taken into
account as a credit share in the Produc-
tivity Fund?
A-3: Yes.
Q-4: Will a compensable deadhead trip made by
either a full or reduced crew be taken
into account as a credit share in the
Productivity Fund?
A-4: Yes.
0-5: In reference to Article V, Section 2(e),
and the conductor is left alone and
deadheaded to his home terminal will the
Productivity Fund be credited and allowed
the special allowance and will this tour
of duty be counted as a credit share in
the Productivity Fund?
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A-5: The Productivity Fund will be credited
but the employe will not be allowed the
special allowance. The employe will
receive a credit share in the Produc-
tivity Fund.
Q-6: Do the number of days not worked while
protecting the extra board go to the
credit of the protected employe toward
the number of tours of duty credited for
the purpose of sharing in the Produc-
tivity Fund?
A-6: No, only actual service performed in
freight or yard service is so credited.
Q-7: Will tours of duty in road or yard
service on single position assignments
such as pilots, skatemen, switch tenders
and car retarder operators worked by
protected employes be credited in com-
puting their share of the Productivity
Fund?
A-7: Yes, but the employes do not receive the
special allowance nor will the Produc-
tivity Fund be credited.
Q-8: Under Article III, Sections l(a) and (b)
of the June 25, 1964 National Agreement,
Manning Self-Propelled Machines, do the
reduced crew conditions apply?
A-8: No, but trainmen/yardmen working assign-
ments covered by that Agreement will
receive a credit share in the Produc-
tivity Fund.
Q-9: Does a reduced crew that is called on
duty, performs service (work), and is
subsequently released, qualify for the
special allowance and will the Produc-
tivity Fund be credited?
A-9: Yes, if service (work) is actually
performed by the reduced crew. The
special allowance will be allowed and the
Productivity Fund will be credited. If
no service (work) is performed, the crew
will not qualify for the special allow-
ance nor will the Productivity Fund be
credited even though the crew qualified
for a payment under Schedule Rules. -
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NOTE: The phrase 'Jservice (work)"
shall mean, in accordance with
the accepted meaning of that
phrase on this property, the
performance of actual work in
connection with their train.
Among the items not considered
work are reporting for duty,
registering, getting bills,
getting train orders; etc.
Q-10: How many shares will be credited for each
week of vacation taken by a protected
employe in road freight or yard service?
A-10: Seven.
0-11: In the event of the death of a protected
employe who is entitled to payment from
the Productivity Fund, will his part be
paid to his estate or beneficiary?
A-ll: Yes, when disbursements are made.
Q-12: Will the loss of earnings from the
Carrier by a part-time Union Officer who
is unable to work in road freight or yard
service due to performing official union
work be computed in arriving at the 1/3
cap as provided in Article IX?
A-12: Yes, and it shall be the Organization's
responsibility to timely advise the
Carrier in writing with the necessary
information.
Q-13: Does the Productivity Fund apply only to
a single yard tour of duty or a single
(one-way) road freight service trip?
A-13: Yes.
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