For several months we were involved in a dispute with BNSF regarding the continuation of health care coverage for furloughed employees.

Initially BNSF took the position that a furloughed employee who (for any reason) did not perform service on seven calendar days in a calendar month, would not qualify for extended health care coverage. We argued that a furloughed employee who worked at least one day, but was unable to meet the seven day threshold because of his furloughed status, must be certified for health care eligibility and the continuation of benefits under the plan. Ultimately, BNSF and the National Carrier's Conference Committee changed their position to say that no furloughed employee could qualify for health care coverage regardless how much they worked, simply because of their furlough status. We discussed this matter with the International President's office and requested their assistance in resolving the dispute.

Now find attached President Boyd's letter of June 25, 2003, confirming that the dispute has now been resolved, and for purposes of establishing insurance eligibility and extension of benefits, a furloughed employee is to be treated as if recalled and then returned to furlough status after the trip or tour of duty. Thus, employee and dependent coverage would extend four (4) months after the month in which the employee last performed compensated service.

Please advise if you have any questions regarding this matter, or if you need assistance with any specific case involving eligibility under these circumstances.