MERGER IMPLEMENTING
AGREEMENT
 
between the
 
 
UI,VON PAC3FIC/MISSOURI PACIFIC RAILROAD COMPANY
CHICAGO AND NORTH WESTERN RAILWAY COMPANY
 
and the
 
UPCTED TRANSPORTATION UNION
 
                In Finance Docket  No.  32123,  the  Interstate  Commerce  Commission  (ICC)  approved
         the acquisition  and  control  of  the  Chicago  and  North  Western  Raitway  Company  (CNW)
         by the Union Pacific/Missouri Pacific Railroad  Company  (Union  Pacific  or  UP).  In  order
         to achieve the benefits of operational changes  made  possible  by  the  transaction  and  to
         modify pretransition labor arrangements to the extent necessary  to  obtain  those  benefits,
         IT IS AGREED:
 
         1.     Seniority   and   Work   ConsQUAlml.   To   achieve   the   work   efficiencies    and
                allocation  of  forces  that  are  necessary  to  make  the  merged  Carrier   operate
                efficiently as a unified system, the following seniority consolidations will be  made:
 
                A.     St. Louis, MIJ%wd
 
                       1.     (a)    The  CNW  employees  assigned  to   CNW   yard   assignments   at
                                     Madison, Illinois, on September  1,  1995,  including  any  extra
                                     board assignments, will be  placed  on  the  bottom  of  Missouri
                                     Pacific (MP) Merged Roster No, I and will have  prior  rights  to
                                     the  former  CNW   regularly   assigned   yard   assignments   at
                                     Madison.      Should   those   former    CNW    assignments    be
                                     abolished  or  consolidated  with  other  MP   assignments,   the
                                     former CNW  employees  will  have  no  prior  rights,  Any  newly
                                     established assignment will not be subject to prior  rights.  The
                                     Carrier will not be required to assume any  additional  costs  in
                                     the application of the prior rights  requirement,  including  not
                                     having to use prior rights employees  at  the  overtime  rate  of
                                     pay  when  non-prior  rights  employees  are  available  at   the
                                     straight time rate of pay,
 
                              (b)    Both  MP  employees  and  former  CNW  employees  may  work   all
                                     assignments  covered  by  Merged  Roster  No.  I  and  may   work
                                     all assignments protected by the MP St. Louis  extra  board.  All
                                     employees and all assignments will work under the MP
 
 
 
         
 
 
 
                                   Agreement all in accordance  with  the  employees'  seniority  on
                                   Merged Roster No. 1 , subject to prior rights.
 
                                          NOTE: Prior rights will not apply to  assignments  on  nor
                                          operation of the  MP  Merged  Roster  #1  extra  board  at
                                          St. Louis.
 
 
                     2.     (a)    The   CNW   employee(s)   assigned   to   the    Monterey    Mine
                                   assignment  on  September  1,  1995,  will  be  placed   on   the
                                   bottom of the Chicago and Eastern  Illinois  (C&EI)  road  roster
                                   at St. Louis and will have prior  rights  to  the  Monterey  Mine
                                   assignment,  if  regularly  asigned.  Should  ths  assQnaient  be
                                   abolished  or  consolidated  with  other  C&EI  assignments,  the
                                   former CNW employee(s) will  have  no  prior  rights.  Any  newly
                                   established assignment will not be subject to prior  rights.  The
                                   Carrier will not be required to assume any  additional  costs  in
                                   the application of the prior rights  requirement,  including  not
                                   having to use the prior rights employee at the overtime  rate  of
                                   pay  when  a  non-prior  rights  employee  is  available  at  the
                                   straight time rate of pay.
 
                            (b)    Both  C&EI  and  the   former   CNW   employee   may   work   the
                                   Monterey  Mine  Assignment,  may  work  all  assignments  covered
                                   by  the  C&EI  road  roster  and   may   work   all   assignments
                                   protected by the C&EI extra board at  St.  Louis.  All  employees
                                   and all  assignment  will  workunder  the  &EI  Agreement  all  A
                                   accordance w1ith  the  employees'  seniority  on  the  C&EI  road
                                   roster at St. Louis, subject to prior rights.
 
                                          NOTE: Prior rights vAll not apply to  assignments  on  nor
                                          operation of the C&EI extra board at St. Louis.
 
                     3.     (a)    The  number  of  employees  assigned   to   work   South   Pekin,
                                   Illinois, to St. Louis (in through freight only, excluding  power
                                   plant operabons) on September 1, 1995,  will  be  transferred  to
                                   St. Louis and will be placed on  the  bottom  of  the  C&EI  road
                                   roster at St. Louis and vAH have prior rights to a  maxiaturn  of
                                   three positions in  the  new  St  Louis  to  Chicago/South  Pekin
                                   pool, Any newly  established  assignments  will  not  be  subject
                                   to prior rights. The Carrier  will  not  be  required  to  assume
                                   additional  costs  in  the  application  of  the   prior   rights
                                   requirement inclucling the use of a prior right employee  at  the
 
 
 
     
 
 
 
                               overtime  rate  of  pay  when  a  non-prior  rights  employee  is
                               available at the straight time rate of pay.
 
                       (b)     Both  C&EI  employees  and  former   CNW   employees   may   work
                               all assignments in  the  new  SL  Louis  to  Chicago/South  Pekin
                               Pool, may  work  all  assignments  protected  by  the  C&EI  road
                               roster(including the  Monterey  Mine  assignment)  and  may  work
                               all  assignments  protected  by  the  St.   Louis   extra   board
                               (including  the  Monterey  Mine  asignment).  All  employees  and
                               all assignments  will  work  under  the  C&EI  Agreement  all  in
                               accordance  with  the  employees'seniority  on  the  C&EI  roster
                               at St. Louis, subject to prior rights.
 
                                      NOTE: Prior rights vAll not apply to  assignments  on  nor
                                      operation of the C&EI extra board at St. Louis.
 
         B.     Kansas City, Missouli
 
                1      (a)     The  CNW  employees  assigned  to   CNW   yard   assignments   at
                               Kansas  City  on  September  1,  1995,  will  be  placed  on  the
                               bottom  of  the  MP  Consolidated  Roster  and  will  have  prior
                               rights  to  the  former  CNW  yard  assignments.   Should   those
                               former  CNW  assignments  be  abolished  or   consolidated   with
                               other  MP  assignments,   those   former   CNW   employees   will
                               have no prior rights.  Any  newly  established  assignments  will
                               not be subject to prior rights. The Carrier will not be  required
                               to assume adcribonal costs in the application of the prior rights
                               requirement, including the use of a prior rights employee at  the
                               overUme  rate  of  pay  when  a  non-prior  rights  employee   is
                               available at the straight Ume rate of pay.
 
                       (b)     Both  MP  employees  and  former  CNW  employees  may  work   all
                               assignments  covered  by  the   Consolidated   Roster   and   may
                               work  all  assignments  protected  by  the  Consolidated   Roster
                               extra  boards,  All  employees  and  all  assignments  will  work
                               under   the   MP   Agreement   all   in   accordance   with   the
                               employees' seniority  on  the  Consolidated  Roster,  subject  to
                               pdor rights.
 
                                      NOTE:  These  prior  rights  will  not  be  applicable  to
                                      assignments  on  nor  operation  of  the  two   MP   extra
                                      boards at Kansas City.
 
 
 

 
 
 
 
               2.     (a)    The number of CNW  employees  assigned  to  road  service  work
                             between    Kansas    City    and    Des    Moines    (currently
                             headquartered  at  Kansas  City)  on  September  1,  1995,  and
                             the CNW employees on  the  CNW  extra  board  at  Kansas  City,
                             will all be placed on the bottom of the MP Consolidated  Roster
                             and will have prior rights  to  their  percentage  in  the  new
                             Kansas  City  to   Omaha   Metro   Complex   (OMC)/Des   Moines
                             pool. The percentage  will  be  as  follows:  50%  for  the  MP
                             Consolidated Roster and  50%  for  the  former  CNW  employees.
                             The percentage  for  the  former  CNW  employees  need  not  be
                             maintained as those employees attrite or are  unavailable.  Any
                             newly established assignments will  not  be  subject  to  prior
                             rights. The Carrier will not be required to  assume  additional
                             costs in the  application  of  the  prior  rights  requirement,
                             including the use of a prior rights employee  at  the  overtime
                             rate of pay when a non-prior rights employee  is  available  at
                             the straight time rate of pay.
 
                                   NOTE: These  prior  rights  will  not  be  applicable  to
                                   assignments on nor  operation  of  the  MP  extra  boards
                                   at Kansas City.
 
                      (b)    Both MP  employees  and  former  CNW  employees  may  work  all
                             assignments in the Kansas City  to  OMCIDes  Moines  pool,  may
                             work  all  assignments  protected  by   the   MP   Consolidated
                             Roster, and  may  wod(  aH  assignments  protected  by  the  MP
                             Consolidated  Roster  extra  boards,  All  employees  and   all
                             assignments  will  work  under  the   MP   Agreement   all   in
                             accordance with  the  employees'seniority  on  MP  Consolidated
                             Roster, subject to prior rights.
 
       C.      Chicago, Illinois Comp-lu
 
               1 .    A new consolidated Chicago Terminal  Complex  (CTC)  seniority  roster
                      will be established to protect all non-through freight yard  or  extra
                      board  assignments  headquartered  within  the   CTC,   The   CTC   is
                      defined in Article 111,
 
               2.     The new CTC seniority roster will consist of the following  employees:
 
                      (a)    All  C&EI  employees  working  in  Chicago   on   September   I
                             1995;
 
 
 

 
 
 
 
                             (b)     All  CNW  employees   on   the   Chicago   Freight   Terminal   #7
                                     Roster;
 
                             (c)     The   number   of   CNW   Eastern   #1   employees   working    in
                                     Chicago on September 1, 1995; and,
 
                             (d)     The  number  of  CNW  Northeastern   #2   employees   working   in
                                     Chicago on September 1, 1995.
 
                                            NOTE 1: Vorking  in  Chicago"  is  defined  as  holding  an
                                            assignment (non-through  freight,  yard,  or  extra  board)
                                            with an on-duty point within the territory of the  new  CTC
                                            as defined in Article 111,
 
                                            NOTE  2:  One  Eastern-1  extra  board  employee  for  each
                                            four  Eastern-1  employees  transferred  to  the  CTC   and
                                            one  Northeastem-2  extra  board  employee  for  each  four
                                            Northeastern-2  employees  transferred  to  the  CTC   will
                                            also be transferred to the new CTC roster.
 
                     3.      (a)     Employees identified in Paragraph 2,  above,  will  be  placed  on
                                     the new CTC seniority roster in the following manner:
 
                                     (1)    Employees identified in 2(a), (c) and (d), above,  will  be
                                            dovetailed  based  upon  the   employee's   train   service
                                            date.  If  this  process  results   in   employees   having
                                            identical seniority dates, seniority will be determined  by
                                            the employee's service date.
 
                                     (2)    The dovetailed list in (1), above, will be  placed  on  the
                                            bottom of the  CNW  Chicago  Freight  Terrninal  #7  Roster
                                            creating the new CTC roster.
 
                             (b)     Each employee placed on  the  new  CTC  roster  will  be  provided
                                     prior rights to  their  former  work  now  included  in  the  CTC.
                                     Current  asignments  retained  in  the  new  CTC   will   not   be
                                     rebulletined,   Should   any   former   assignments   subsequently
                                     be  abolished  or  consolidated  with   other   CTC   assignments,
                                     there will be no prior rights  to  those  assignments.  Any  newly
                                     established assignments will not be subject to prior  rights,  The
                                     Carrier will not be required to assume  additional  costs  in  the
                                     application of the prior rights requirement, including the use  of
                                     a prior rights employee at the overtme rate of  pay  when  a  non-
 
 
       
 
 
                                        prior rights employee is  available  at  the  straight  time  rate  of
                                        pay. The new CTC  seniority  roster  will  indicate  prior  rights  in
                                        the following manner:
 
                                                NOTE: Prior rights  will  not  apply  to  assignments  on  nor
                                                operation of the CTC extra board.
 
                 EXAMPLE (assumes rover only has five people on it):
 
 
                                              Prior Rights to which Assignments
                              Roster          Chicago                           Northm
              Name           Ranking          Freight        Eastern#1       Eastern#2           CHI
                                            Termlnal#7
 
           Jonev it              #1               X
           Smith, L.             #2               X
           Ames, G.              #3                                                X
           -Bailey, T.           #4                                                                X
           Moore, K.             #5                               X
 
                                 (c)    All   employees   placed   on   the   CTC   roster   may   work    all
                                        assignments  protected  by  the  new   CTC   roster   and   may   work
                                        all  assignments  protected  by  the  new  CTC,   extra   board.   All
                                        employees   and   all   assignments   will   work   under   the    CNW
                                        Agreement  all  in  accordance  with  the   employee's   seniodty   on
                                        the new CTC roster, subject to prior rights,
 
                                 (d)    New   employees   hired   and    placed    on    the    CTC,    roster
                                        subsequent to  the  adopbon  of  the  CTC  will  be  governed  by  the
                                        CNW  collective  bargaining  agreement  but   will   have   no   prior
                                        rights to  any  assignments  within  the  CTC;  will  have  no  rights
                                        to  any  CNW   Eastern   #1   9   CNW   Northeastern   #2   nor   C&EI
                                        asignments outside  of  the  CTC;  wHI  rank  below  all  prior  right
                                        employees  on  the   roster   and   will   have   seniority   to   all
                                        assignments headquartered within the CTC,
 
                 D,          Qmaha
 
                         I .     UP/UTU  Roster   #1   will   be   expanded   to   protect   all   assignments
                                 headquartered   within   the   Omaha   Metro   Complex   (OMC)    or    which
 
        
 
 
 
                          have the OMC  as  the  source  of  supply.  The  OMC  is  defined  in
                          Article Ill.
 
                  2.      The new UP/UTU  Merged  Roster  #1  will  consist  of  the  following
                          employees:
 
                          a.     All UP employees on the current UP/UTU #11;
 
                          b.     All CNW  employees  assigned  to  work  behyeen  the  0MC  and
                                 Worthington, Minnesota (including assignments at  Sioux  City,
                                 Iowa;  Sergeant  Bluff,  Iowa;  and  Dakota  City,  Iowa)   on
                                 September 1, 1995;
 
                                        NOTE:   "Assigned   to   work   between    Worthington,
                                        Minnesota  and  the  OMC*  is  defined  as  holding  an
                                        assignment ahrough freight, non-through  freight,  yard
                                        or extra) with an on-duty point  within  the  territory
                                        between Worthington and the OMC.
 
                          C.     All CNW employees working an assignment headquartered
                                 within the OMC on September Is 1995;
 
                                        NOTE   1:   NWorking   an   assignment    headquartered
                                        within the OMCw is defined  as  holding  an  assignment
                                        (non-through freight, yard or extra board) with an  on-
                                        duty point within the territory of the OMC,
 
                                        NOTE 2:      nWorking   an   assignment   headquartered
                                        within  the  OMC6  is   also   defined   as   the   CNW
                                        assignments  working  to   Norfolk,   Nebraska.,   from
                                        Fremont,  Nebraska,   and   the   CNW   assignment   at
                                        Norfolk.
 
                          de     The number of CNW employees assigned  to  work  on  the  east-
                                 west main  line  between  the  OIVIC  and  Clinton,  Iowa,  on
                                 September 1, 1995,
 
                                        NOTE 1 @Assigned to work on the east - west  main  line
                                        between Clinton and the  01VIC"  is  defined  as  those
                                        through freight  assignments  with  either  Clinton  or
                                        Boon% lowa,  as  the  preimplementation  home  terminal
                                        and with either  Boone,  Clinton,  Fremont  or  Council
                                        Bluffs   as   the   preirnplementation   away-from-home
 
 
     
 
 
 
                                         terminal.   Pre-implementabon   extra   board    assignments
                                         at    Clinton    and    pre-implementation    extra    board
                                         assignments   at   Boone   are   also   included   in   this
                                         dennIon.
 
                                         NOTE  2:  One  extra   board   employee   from   the   Boone
                                         extra  board  for   each   three   Boone   through   freight
                                         service   employees    transferred    to    UP/UTU    Merged
                                         Roster  #1  will  also  be  transferred  to  UP/UTU   Merged
                                         Roster #11.
 
                                         NOTE  3:  One  extra  board  employee   from   the   Clinton
                                         road service extra board  for  each  three  Clinton  through
                                         freight   service   employees    transferred    to    UP/UTU
                                         Merged  Roster  #1  will  also  be  transferred  to   UP/UTU
                                         Merged Roster #11.
 
                   3.      (a)    Employees identified in Paragraph  2,  above,  will  be  placed  on
                                  the  new  UP/UTU  Merged  Roster  #1  in  the   following   manner:
 
                                  (1)    Employees identified in 2(b), (c) and (d),  above,  will  be
                                         dovetailed based  on  the  employee's  train  service  date.
                                         If this results  in  employees  having  identical  seniority
                                         dates,  seniority  will  be