THE BELT RAILWAY COMPANY OF CHICAGO

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1 "--" THE BELT RAILWAY COMPANY OF CHICAGO 6900 SOUTH CENTRAL AVENUE - BEDFORD PARK, ILLINOIS TIMOTHY E. COFFEY GeneralCounsel, Secretary and Director Human Resources Phone: Fax: tcoffey@beltrailway.com May, 2003 Mr. Christopher W. Votteler, General Chairman United Transportation Union, Local College Drive, Suite 2000 Palos Heights, Illinois Re: Yardmaster Extra Board Agreement This will confirm our understanding with respect to the newly created Yardmaster Extra Board. We agreed as follows: '--" 1. It is the intent of the Belt Railway Company of Chicago (Company) and its Yardmen and Yardmasters represented by the United Transportation Union to establish new procedures for filling temporary Yardmaster vacancies by establishing a Yardmaster's Extra Board. Except for those provisions pertaining to filling temporary vacancies, the establishment of a Yardmaster's Extra Board will not alter in any way current working agreement language pertaining to regular Yardmaster positions already established or any regular Yardmaster positions established on future dates. 2. Temporary vacancies are defined as those vacancies of 30 consecutive days or less. When a vacancy is known to be of 30 consecutive days or more, the position will be bulletined in accordance with the current working agreement. 3. The Company may advertise Extra Board Yardmaster positions for a period of seven (7) calendar days with paid training at those locations where the successful applicants are not currently qualified. In those cases where successful applicants do not have Yardmaster seniority, seniority shall commence on the date that the position is awarded. In those cases where applicants have current Yardmaster seniority, the established seniority date will continue. "-' 4. Extra Board Yardmasters must be qualified at all locations where regular Yardmaster assignments exist. In those instances when successful applicants are not qualified at all locations, training will be provided at those locations where they are not qualified. The duration of the training periods, during which two (2) consecutive rest days will be granted, will be determined by the Company.

2 2 ' Extra Board Yardmasters will not be required to perform any service not associated with established Yardmaster duties. 6. The number of Extra Board Yardmaster positions needed will be determined by the Company. 7. A reduction in the number of Extra Board Yardmaster positions can only be made thirty (30) days after the establishment of the most recent position. Seven (7) days notice will be given to those employees affected by the reduction. The Company reserves the right to abolish an Extra Board Yardmaster position prior to thirty (30) days when the incumbent of the position voluntarily vacates the assignment. 8. When a Yardmaster Extra Board is initially established for more than (1) one position, the successful applicants will be placed on the Yardmaster Extra Board in seniority order. Those with current Yardmaster seniority will be given preference and in the case of (2) or more employees being placed on the extra board, seniority shall prevail. 9. Once assigned to an Extra Board Yardmaster position, employees will not be permitted to exercise their seniority rights to any position other than regular, bulletined Yardmaster vacancies. Employees who voluntarily relinquish their Extra Board Yardmaster position will forfeit their Yardmaster seniority. "---' 10. The work week for Extra Board Yardmasters will consist of (7) consecutive days starting at 12:01 a.m. Monday. 11. Extra Board Yardmasters will be used on a rotating (first-in-first-out) basis to fill all Yardmaster vacancies. No Extra Board Yardmaster will be entitled to work more than (5) five shifts in a work week until all Extra Board Yardmaster positions have done so. 12. When Extra Board Yardmaster positions are reduced, reduction will occur in reverse seniority order (youngest first). Extra Board Yardmasters removed from the Extra Board due to a reduction must exercise their seniority in accordance with previously established provisions within 48 hours from the time removed from the Extra Board. If the affected employee(s) have sufficient Yardmaster seniority to displace a junior regularly assigned Yardmaster(s), they will be required to exercise their seniority to such position or forfeit their Yardmaster seniority. If their seniority will not permit them to hold a regular Yardmaster position, they will retain their seniority as a Yardmaster. 13. In making promotions to Extra Board Yardmaster positions, seniority shall prevail. 14. Calling periods will be as follows: a. First shift between 4:00 a.m. and 5:30 a.m. b. Second shift between 12:00 noon and 1:30 p.m. c. Third shift between 8:00 p.m. and 9:30 p.m. Assigned Extra Board Yardmasters must be available during calling periods as designated above. An assigned Extra Board Yardmaster not available for service during calling periods will be

3 '--" 3 placed at the bottom of the Extra Board behind all assigned Extra Board Yardmasters, including those who performed service on that shift, and their Extra Board guarantee will be reduced accordingly. 15. When practicable, Extra Board Yardmasters will be given a {2} two hour call. This does not negate the requirement to be available to accept calls during the calling periods. 16. Extra Board Yardmasters who are available for service will be guaranteed (5) five shifts of work in a work week of (7) seven consecutive days beginning at 12:01 a.m., Monday, or be paid at the Yardmaster's straight time rate (less any special allowances) for each shift less than (5) five. This guarantee will not apply on any date or portion thereof that the incumbent of a position on the Extra Board misses a call within the calling time brackets or is unavailable for service. "'--" 17. Where an Extra Board Yardmaster is assigned for a lesser number of calendar days than seven (7) in a work week beginning on Monday, the guarantee of (5 five shifts of work will be reduced as follows: Days assigned to No. of shifts The guaranteed extra board will fill all temporary Yardmaster vacancies until it becomes exhausted. The guaranteed extra board becomes exhausted when there are no guaranteed Extra Board Yardmasters available, or all guaranteed Extra Board Yardmasters have worked (5) shifts in the work week. 19. Upon completion of five (5) shifts worked during the work week starting on Monday, Extra Board Yardmasters will be placed on the five trip board in the sequence they were removed until 12:01 a.m., Monday of the next week and returned to the rotating board in the sequence that they were removed except they will be placed under any employees that were paid the guarantee for the previous week. Any Extra Board Yardmasters that were paid the guarantee and not placed on the five (5) trip board will maintain their position on the board at 12:01 a.m., Monday. Use of an Extra Board Yardmaster in seniority order for service in excess of {5} five shifts in a work week will not change his position on the rotating Extra Board for the next work week. Extra Board Yardmasters will not be required to involuntarily work in excess of five (5) shifts in a work week. Any shifts worked voluntarily in excess of five (5) will be paid at the time and one half rate. '---'" 20. Where a Yardmaster Extra Board is established, regularly assigned Yardmasters will not be entitled to work twice on any calendar day or on their rest days or double when an Extra Board Yardmaster, who has not worked the minimum number of shifts guaranteed to him/her on the Yardmaster Extra Board, is available for the service at the straight time rate.

4 '--'" Extra Board Yardmasters, when called and used to fill a vacancy, will be paid at the rate of the position worked to include any arbitraries of the position, provided they qualify under seniority provisions. The time and one-half rate of pay will apply to all work in excess of eight (8) consecutive hours. Extra Board Yardmasters will not be required to involuntarily work more than once per calendar day. 22. When Extra Board Yardmasters are to fill (2) two or more vacancies on the same shift, the first out employee will have the choice of assignments. 23. When the Yardmaster Extra Board becomes exhausted, regular Yardmaster vacancies will be filled in the following manner: a. Regular Yardmasters on their rest days (in seniority order) that have registered with the Crew Dispatcher to be called for Yardmaster vacancies. A regular yardmaster will be entitled to one (1) overtime assignment per calendar day unless all other Yardmasters have refused the assignment. b. Regular Yardmasters not working the same shift as the vacancy (preceding and succeeding shifts) in seniority order that have registered with the Crew Dispatcher to be called for Yardmaster vacancies. ""-" c. Extra Board Yardmasters on five (5) trip board (in seniority order) that have registered with the Crew Dispatcher to be called for Yardmaster vacancies. d. Extra Board Switchmen (qualified and rested under the Hours of Service) who have not worked five (5) shifts in the work week (221/2 Hours Rule applies) and have not worked once in the calendar day. e. Regular Switchmen (qualified and rested under the Hours of Service) on rest days (in seniority order) that have registered with the Crew Dispatcher to be called for Yardmaster vacancies. f. Senior qualified regular Switchmen marked up on the same shift as vacancy (regardless of location) who have registered with the Crew Dispatcher to be called for Yardmaster vacancies. Will be paid at time and one half rate. g. Senior qualified regular Switchmen marked up on succeeding shift as vacancy (regardless of location) who has registered with the Crew Dispatcher to be called for Yardmaster vacancies. Will be paid at time and one half rate. 24. Regular or Extra Board Switchmen used to fill temporary vacancies, as outlined herein, will not establish or accumulate seniority as Yardmasters. ' ' 25. Commencing with the effective date of this agreement the Company shall pay all Yardmen and Yardmasters with a seniority date on or prior to June 1, 2003 a Special Allowance of $3.00 per day worked (only (1) one allowance per employee, per day worked). This Special Allowance will not be subject to any future wage increases or cost-of-living allowances.

5 "--" Yardmasters will be paid one (1) hour at the straight time rate when training any employee on Yardmaster assignments. Very truly yours, $ L Timothy E. Coffey General Counsel, Secretary & Director Human Resources ICONCUR: Christopher W. Votteler, General Chairman United Transportation Union c.w.v.

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