BNSF Timeline for Implementation of Pay Increases
(9-4-02)

We have received notification from BNSF's TY&E Compensation Systems that software and programming are being completed to implement the pay increases under the August 20, 2002 National Agreement. The following is an excerpt from the Carrier's notice:

4% General Wage Increase
- Will be in place and paying when we close the first half of September's payroll for all applicable pay elements except RCO.
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Regrossing of applicable pay elements back to July 1, 2002 will start with the close of the last half of September for all pay elements except RCO. Because of the large number of pay elements that must be regrossed, we are estimating that it will take at least 2 pay periods to complete regrossing.

Longevity Bonus
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Will be paid to eligible employees in a separate check in mid October.

Remote Control Compensation
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Beginning the last half of September, on September 16th, employees will begin using constructive allowance Code RE to claim the 46 minutes provided for in the RCO Agreement.

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4% GWI will be applied to applicable RCO positions with the close of the last half September.

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We do not have a target date yet for the regrossing of applicable RCO pay elements back to the implementation of RCO positions. However, we plan to get this done ASAP following the payment of the longevity bonus.

We will keep you advised of any further information regarding these issues.