On September 21, 1999, the District 1 UTU General Chairmen's Association (composed of General Chairmen from all U. S. Railroads) met in Las Vegas, Nevada, to discuss the 2000 Wage and Rules movement, and to provide their input for preparation of UTU Section 6 Notices. Most of the General Chairmen present at that meeting expressed their desire to be represented by our UTU National Negotiating Committee (UTUNNC), established pursuant to Article 91 of the UTU Constitution. That negotiating team consists of the following officers:

General Committee GO-001 General Chairman Robert Kerley and all but one of the other BNSF General Chairmen were authorized by the Association and President Little to remain outside of national handling at that time.

Since that time, BNSF has given its proxy to the National Carrier's Conference Committee (NCCC), both the NCCC and UTU International have served their respective Section 6 Notices, and those national negotiations are underway. Also since that time, the General Chairmen on BNSF have met with Labor Relations officers and expressed our desire to handle additional issues apart from the national Section 6 Notices. The Carrier has indicated a willingness to discuss those issues in informal negotiations on the property, concurrent with national handling.

In light of these events, effective March 2, 2000, General Chairman Kerley advised the Carrier that this Committee is joining national handling, and will be represented by the UTU National Negotiating Committee with respect to those items contained in national Section 6 Notices. Here are some of the reasons for our taking this action:

1. Since BNSF has given their proxy to the NCCC, there is simply no way to force BNSF to negotiate with us directly on any item included in national Section 6 Notices. Regardless of whether or not we join national handling, BNSF is definitely in national handling and is represented by Bob Allen, spokesman for NCCC. It is possible (but not likely) that Mr. Allen would agree to meet with BNSF General Chairmen separate from the UTUNNC, but it is really unrealistic to think that he would agree to any settlement with BNSF General Chairmen that was "better" than a settlement with our National Negotiating Committee.

2. The probable outcome of staying out of national handling on national issues would be that we would simply sit on the sidelines until the NCCC and the UTUNNC reach a proposal, and then we would be offered the same proposal on a "take it or leave it" basis. With national handling establishing a "pattern" for any separate settlements, it is very important to be as active and involved as possible in influencing that "pattern." We can have a greater effect on the bottom line by being part of the process rather than looking in from the sideline.

3. This General Committee is well represented in this round of national negotiations. Former GO-001 General Chairman Carl Vahldick is a member of that negotiating team. GN General Chairman Dave Snyder is Chairman of the District 1 General Chairmen's Association. While he is not a member of the negotiating team, former GO-001 Associate General Chairman (now UTU International Vice President) Rick Marceau is also very closely involved with these proceedings. All of these officers are familiar with our situation on BNSF, and all are very responsive to our input. These and the other members of the negotiating team named above are all competent, dedicated men who will act responsibly in our behalf. I believe they can accomplish more with our support and participation, and I am confident that our voice will be heard in these national negotiations.

4. The Carrier has agreed to discuss additional items with us that are unique to BNSF and that do not directly involve national negotiations. However, along with those issues important to us, the Carrier has its own agenda. I believe these matters are best addressed in an informal process, in which it would take mutual consent of both parties to invoke binding arbitration.

We realize that other General Committees on BNSF may not agree with this decision and we certainly respect their right to pursue a different course. Right now, some of those other Committees are participating in litigation to defend General Committee autonomy with respect to national handling and the dynamics of that case may be affected by participation in national handling. The UTU International is also a party to that case, and has the duty of defending General Committee autonomy as guaranteed in the UTU Constitution. In reaching this decision, we have attempted to keep these jurisdictional and legal issues separate while we evaluate what is most advantageous for the membership in terms of securing the best possible Agreement in this round of bargaining. We will post future reports to keep you informed of progress in both national handling and the concurrent handling of BNSF issues on the property.