With the recent ratification of the National Wage and Rules proposal, we have contacted the Carrier to inquire as to when the provisions of that new Agreement will be implemented. The Carrier advises that programming changes will be started immediately to effect the retroactive (to July 1, 2002) pay rate increases as well as retroactive compensation for UTU-represented employees who were involved in the Remote Control Pilot Projects at locations under the jurisdiction of this General Committee. With regard to the longevity bonus, the qualifying period runs through August 31, 2002, so the bonus will be processed for payment as soon after September 1, 2002 as possible. We will advise when additional information becomes available as to when eligible employees will actually receive these payments.

As for trip rates, the Carrier has already furnished preliminary data for some sample runs, and we will meet with the Carrier in the near future to discuss those figures. We will advise Local Chairmen when data is available for runs under their jurisdiction, so they can review those figures and be directly involved in the calculations of trip rates for their territories.

Under this new Agreement, the Carrier is required to train all ground service employees at locations where remote control is implemented, so that employees will be able to freely exercise seniority to and from RCO assignments without unreasonable delay. We will be discussing the methodology of such ongoing training with the Carrier, and we will furnish additional information as it becomes available. The Remote Control Agreement also provides for 2 UTU-selected representatives on each local RCO overview committee. The committee will meet regularly within the first 120 days of implementation to discuss and resolve issues and problems associated with remote control. Unless otherwise decided by the local, the Yard Local Chairman at affected locations should be one of the UTU-selected committee members.

Another element of the new Agreement is protective provisions for employees adversely affected by RCO implementation. It is my understanding that the UTU International will be soliciting the participation of the BLE in this regard, and we will advise of further developments.