September 15, 1998

Mr. R. A. Boldra
Director Labor Relations
Burlington Northern Santa Fe
PO Box 961030
Fort Worth TX 76161-0030

Re: Temporary Transfer Procedures

Dear Mr. Boldra:

Reference our discussions regarding the need to establish consistent procedures for the posting and awarding of temporary transfers under the provisions of the December 15, 1995 Midwest Seniority District Agreement and the July 12, 1996 System Transfer Agreement.

During our discussions we recognized that because of events such as the BNSF merger, the various seniority consolidations, and the similar but not identical Agreements and/or practices governing temporary transfers throughout the system; there are now some territories that are not party to the System Transfer Agreement, but now have shared seniority with the employees on the Midwest Seniority District. At the same time, there are some territories subject to the System Transfer Agreement that do not share common Midwest District seniority. The following is intended to clarify our understandings regarding 1) where temporary transfer opportunities must be posted, 2) the terms and benefits applicable to those transfers, and 3) the establishment and exercising of seniority on the territory transferred to.

First, we agree that opportunities for temporary transfers under either 4.7 of the Midwest Seniority District Agreement or 4.1 of the System Transfer Agreement need only be posted on those seniority districts with furloughed, reserve board or voluntary surplus employees. While the language of the Midwest Seniority District Agreement is somewhat ambiguous in this regard, the System Transfer Agreement is clear, and this reasonable application should be applied to postings under both agreements for the sake of consistency. Furthermore, on zones within the Former Frisco territory which have more than one source of supply, these opportunities need only be posted at the source of supply point(s) where there are furloughed, reserve board or voluntary surplus employees.

Second, we agree that the terms and conditions (including monetary benefits) of the System Transfer Agreement should be applied to all temporary transfers. Again, this provides consistency and does not diminish the overall compensation provided in either agreement. It is understood that this does not diminish the Carrier's right under Sections 4.2 and 4.3 of the Midwest Seniority District Agreement as it applies to force assignments between zones in that Midwest Seniority District territory.

Third, we agree that any question regarding the establishing or exercising of seniority on the district transferred to must be determined by the collective bargaining agreement in place at that (destination) location. In other words, only the General Committee having jurisdiction at the location where the employee is transferred has the authority to determine these seniority questions for the time the employee is in temporary transfer status.

We also agreed that employees who were on temporary transfer positions under either agreement on or after September 1, 1998, will (beginning September 1, 1998) be compensated as if their temporary transfer had originally been accomplished under the principles set forth herein. These understandings have no retroactive application prior to September 1, 1998. Temporarily transferred employees already receiving greater compensation than that provided under these principles will not have their current benefits reduced as a result of this understanding.

If the above correctly recites our understanding, please sign below and return one copy of this letter for my records.

Sincerely,                                                                         ACCEPTED:

R. D. Kerley [sig for] C. M. Vahldick                           R. A. Boldra
General Chairman                                                           Director Labor Relations
RK                                                                                    Date: September 30, 1998