Nccc 062706

June 27, 2006
PROPOSED UTU SETTLEMENT OUTLINE

The NCCC makes the following proposal to UTU to resolve all of the parties’ respective outstanding notices and issues in the current bargaining round.

All prior settlement proposals made to UTU by the NCCC in this bargaining round are withdrawn, or UTU is invited to discuss crew size adjustments on a voluntary basis.

I. Compensation

A. General Wage Increases and/or Other Forms of Compensation

1. Wage freeze during term of Agreement (no GWIs, etc.) for all current employees
   Employees establishing UTU seniority after the date of the Agreement shall have their full rate of pay set at 80% of the full rate of the position on June 30, 2005.

B. COLA

1. COLA under the current UTU National Agreement eliminated on the effective date of the Agreement.
2. No Harris COLA for periods subsequent to the moratorium in the new Agreement.

II. Work Rule Changes to Improve Service and Enhance Productivity

A. Locomotive engineers may use remote control technology without claim by or penalty to UTU-represented employees in any class of service other than yard service.

B. Manpower Utilization and Productivity Improvements:

• 1. Raise Health and Welfare Plan coverage eligibility requirement from seven (7) to fifteen (15) calendar days during qualifying month.
• 2. Increase preceding calendar year rendered service requirement to qualify for annual vacation from 240 to 300 basic days in miles or hours paid for.
• 3. Implement “standing bid” (“application”) system for all assignments
• 4. Revise existing rules concerning displacement as follows:
  • a. Reduce period for exercising displacement right to 12 hours (from time notified), except where shorter time period now in effect. If right not exercised within this period, railroad may assign employee to any extra board or vacant position on employee’s seniority district;
  • b. Require employee to occupy current position for at least 180 days before exercising voluntary displacement to another position;
  • c. When exercising displacement right to a freight pool or extra board, employee must displace junior employee;
  • d. eliminate any rules that allow an employee to temporarily displace onto
    another position.
• 5. Employee must occupy current position for at least 180 days before being permitted to voluntarily bid on new assignment or permanent vacancy.
• 6. Employees assigned to a freight pool cannot bid or bump to a vacant or
  new turn in the same freight pool.
• 7. Eliminate any existing daily mark-up/preference rules in yard service.

III. Health and Welfare

A. Effective July 1, 2006, employees will contribute, on a monthly basis through a pre-tax payroll deduction:

• 1. 20% of the cost (NHR FO medical payment rate plus Life/AD&D rate) of the National Railway Carriers/UTU Health and Welfare Plan;
• 2. 20% of the monthly payment rate of the National Dental Plan;
• 3. 20% of the monthly payment rate of the National Vision Plan;
• 4. 20% of the monthly payment rate of the Yardmasters’ Supplemental Sickness Benefit Plan (YM only).

B. Effective July 1 of each succeeding year, above-described employee contributions will be increased by one-half of the year-over year increase in the costs of each of the respective Plans.

C. Affected employees may elect to forego coverage for themselves (and their dependents where applicable) under the Dental, Vision, and/or SSB Plans described above, to the extent permitted by law.

D. Effective January 1, 2007, implement the following Plan design changes to reduce the cost to provide Plan benefits:

1. MMCP
   1. In-Network:
      1. Annual Deductible: $500/Individual; $1,500/Family;
      2. Coinsurance: 10%;
      3. Annual Out-of-Pocket Max: $1,500/Individual; $3,000/Family.
   2. Out-of-Network:
      1. Annual Deductible: $1,000/Individual; $3,000/Family;
      2. Coinsurance: 30%;
      3. Annual Out-of-Pocket Max: $2,500/Individual; $5,000/Family.
2. CHCB
   1. Annual Deductible: $750/Individual; $2,250/Family;
   2. Coinsurance: 20% (30% in MMCP areas);
   3. Annual Out-of-Pocket Maximum: $2,000/Individual; $4,000/Family.
3. Prescription Drug Co-pays:
   1. MMCP, CHCB and ERMA*
      1. In-Network: Retail or Mail Order:
         • 10% Generic
         • 20% Brand on-formulary
         • 30% Brand off-formulary

         $10 minimum co-pay

      2. Out-of-Network: Retail:
         • 30% Generic
         • 40% Brand on-formulary
         • 50% Brand off-formulary

   * New design will apply to individuals that retire effective on or after January 1, 2007

E. Eliminate Basic Health Care Benefit.

F. Revise definition of “dependent” under the medical, dental, and vision plans to conform with generally accepted standards.

IV. Training:

A. Revise existing agreements concerning training as provided below:

B. Extend probationary period to 275 days and provide that such period shall commence on the first day the employee is qualified for and performs service as a trainman/yardman.

C. If an employee is assigned to a position for which the railroad must furnish training (including familiarization or qualification trips), the employee must remain on that position for at least 180 days after completion of such training before he/she may be displaced from that position.

D. Training oversight committees shall be established on each railroad consisting of two (2) individuals selected by UTU and various railroad representatives to discuss training issues and concerns and make recommendations for improvements.

V. Miscellaneous:

A. Job Actions
In addition to prohibitions imposed by law or by existing agreements, UTU (officers, employees, agents etc.) shall provide at least ten (10) days advance written notice to affected railroad(s) of any strike, picket, boycott, slowdown, or other self-help activity, whether directed at the railroad(s) or other parties.

B. Moratorium:
Agreement settles all outstanding proposals on both sides and ensures labor peace through term of Agreement (12/31/09).