A P P E N D I X "A"

CREW CONSIST ADJUSTMENT AGREEMENT

BETWEEN: VIA RAIL CANADA INC.,
(hereinafter referred to as the "Corporation")

AND: THE BROTHERHOOD OF LOCOMOTIVE ENGINEERS
(hereinafter referred to as the "Brotherhood)

WHEREAS the implementation process of the crew consist adjustment of the Corporation is to commence on or about July 1, 1998.

WHEREAS, in accordance with the directives of the Canada Labour Relations Board, the parties have negotiated the reassignment of the duties and responsibilities of the operating personnel of the Corporation, whether it be under the provisions of the Canadian Rail Operating Rules (C.R.O.R.), applicable collective agreements or otherwise.

WHEREAS, the Corporation and the Brotherhood have agreed to negotiate the terms and conditions applicable to the implementation and application of the crew consist adjustment.

WHEREFORE THE PARTIES HERETO HAVE AGREED AS FOLLOWS:

1. The recitals hereto form an integral part of this agreement.

CREWING

2. Upon implementation of the crew consist adjustment, the trains will be crewed with two Locomotive Engineers. Exceptions to the crewing may be made in the event of the use of railiner equipment, similar equipment or other technological improvement, or in emergency situations, subject to applicable laws and regulations. Any permanent changes to the crewing that would have significantly adverse affects will be negotiated between the Corporation and the Brotherhood under the applicable material change provisions of the collective agreement in force at the time.

REMUNERATION:

3. (a) Beginning with the first complete pay period following July 1, 1998, in recognition of additional duties and responsibilities as agreed by the parties, the basic weekly rate of pay on June 30, 1998 of Locomotive Engineers in active road passenger service will be increased by an amount of 3.3%.

(ii Beginning with the first complete pay period following November 1, 1998, in recognition of additional duties and responsibilities agreed by the parties, the basic weekly rate of pay on October 31, 1998 of Locomotive Engineers in active road passenger service will be increased by an amount of 2.2%.

(ii The amounts resulting from the 3.3% and 2.2% increases stipulated above on the basic weekly rates of pay of Locomotive Engineers will be added to the incumbency of any employee presently entitled to receive a maintenance of earnings.

LOCOMOTIVE ENGINEERS TRAINING COURSE:

(ii The additional duties and responsibilities of the Locomotive Engineers will be determined and agreed by the training committee of the parties and will form part of the collective agreement: this agreement of the training committee will be attached to this agreement as an Appendix.

(ii For the purpose of this agreement and to minimize the adverse effects of the crew consist adjustment, a Locomotive Engineer training program will be jointly developed and implemented by the Corporation and the Brotherhood.

(ii (a) Conductors, Assistant Conductors and Yardmasters who apply for, qualify and obtain positions as Locomotive Engineers shall, after successful completion of the required training and qualification, receive the same rate of pay as stipulated in paragraphs 3 and 4 above.

(c) During the training process, they shall receive the student Locomotive Engineer rate of $1,173.00 per week.

(d) Conductors, Assistant Conductors and Yardmasters presently entitled to a maintenance of earnings will continue to receive it if greater than the above rate.

(ii Upon implementation of the crew consist adjustment, the present seniority rank of Locomotive Engineers shall remain as is. Upon qualifying as Locomotive Engineers, all Conductors, Assistant Conductors and Yardmasters shall have a seniority date of October 31, 1997; among themselves, such employees shall be ranked in accordance with their former bargaining unit seniority date. The present paragraph does not in any way modify the provisions of the Transfer Agreement dated June 4, 1987 between VIA, CN and BLE.

RETIREMENT OPPORTUNITIES

(ii In addition to the opportunities already provided for in the existing pension plan, the Corporation shall make a one time only change to the existing pension plan rules in conformity with the Federal Income Tax Act, as follows, for Conductors, Assistant Conductors, Yardmasters and Locomotive Engineers directly affected by the crew consist adjustment.

An individual who, at any time during the 1998 calendar year, is at least 50 years of age and whose age and years of service total at least eighty (80) will be entitled to a pension based on his average annual earnings over the last 60 months or over his best 5 consecutive years.

Conductors, Assistant Conductors and Yardmasters who elect to receive a voluntary retirement opportunity and who have not attained retirement eligibility (50-80) at the time of their election will be retained in the service of the Corporation at Transportation Liaison until they attain retirement eligibility; they shall then retire no later than the first day of the month after having attained retirement eligibility.

The amount of the pension so obtained will be increased until age 65 by the following additional amounts:

(a) The difference between the amount of the above pension and the amount of the pension that would have been payable to the employee if he had had 35 years of service on the date of his retirement;

(b) In addition thereto, the employee will receive as a special retirement incentive a fixed, annual amount of $3,600.00 payable monthly;

(c) The total of the said additional amounts, that is, the amount of the aforesaid difference and the amount of the special retirement incentive shall in no case exceed the following annual amounts:

NOTE: The above maximum annual amounts are not lump sum payments.

Should the employee die before attaining 65 years of age, 65% of the aforesaid additional amounts will be paid as a survivor benefit until such time as the employee would have attained the age of 65.

RETIREMENT BENEFITS:

10. Employees electing to receive the foregoing retirement opportunity shall:

(a) be entitled to have their group life insurance continued, fully paid by the Corporation, until age 65.

(b) be entitled to have their Extended Health Care benefits continued, fully paid by the Corporation, until age 65 (or time of death if earlier), such benefits to be those in effect at any given time in the collective agreement.

VOLUNTARY SEVERANCE OPPORTUNITIES:

11. There will be a maximum of 50 severance opportunities granted under the terms of this agreement.

(a) the 37 employees who qualify under the provisions of paragraph 17 hereof shall be entitled to receive a severance opportunity if they so elect.

(b) 13 other severance opportunities will be granted by the Corporation after consultation with the Brotherhood, taking into consideration the seniority, applicable options and other circumstances of the applicants; conductors, Assistant conductors and Yardmasters will have priority for such severance opportunities.

(c) should there be unused severance opportunities, they may be granted by the Corporation, after consultation with the Brotherhood, taking into consideration the seniority, applicable options and other circumstances of the applicants.

(d) Employees who are granted a voluntary severance opportunity will be paid a lump sum of $50,000.00 upon signing the required termination documents. In addition, they will receive:

(e) 2 weeks salary at the basic weekly rate of the employee's position for this first year service;

(f) 1 week's salary at the basic weekly rate of the position for each subsequent full year of service.

C - Conductors, Assistant Conductors and Yardmasters who are granted a voluntary severance opportunity shall effectively leave the service of the Corporation no later than July 1, 1998.

LAY-OFF BENEFITS - APPLICABLE ONLY TO PARAGRAPH 17

12. For each year of cumulative compensated service (or major portion thereof) a Conductor or Assistant Conductor will be allowed a gross lay-off benefit of five (5) weeks for each such year, to a maximum of fifty-two (52) weeks. This will be calculated from the last date of entry in the Corporation's service, as a new employee.

Employee must have at least two (2) years of cumulative compensated service to be eligible for this benefit. Prior to receiving a weekly lay-off benefit payment, an eligible employee must wait a period of seven consecutive days off continuous lay-off.

An employee who satisfies the eligibility requirements above shall be entitled to benefit payment in respect of each full week of seven consecutive calendar days of lay-off as follows:

(a) While in receipt of U.I. benefits, the employee is entitled to an amount that, when added to the U.I. benefit and or outside earnings, for each week, will result in an employee receiving 80% of his basic weekly rate.

(b) During any week following the seven day waiting period outlined above, that an eligible employee is not entitled to U.I. benefits due to such benefits having been exhausted, or due to the employee not being insured for U.I. benefits, the employee may claim a weekly lay-off benefit, for each complete week of seven consecutive calendar day laid off, of the maximum U.I. benefit then currently in force, or such lesser amount that when added to the employee's outside earnings will result in the employee receiving 80% of the basic weekly rate.
If an employee has been laid-off for a period of one year, the Corporation will sever the employment relationship and provide the employee with the severance opportunity as set out in Article 11, less any lay-off benefits the employee has received from the Corporation, excluding U.I. benefits and outside earnings, during the one year lay-off period.

CONDUCTORS, ASSISTANT CONDUCTORS LAND YARDMASTERS:

FORMER CN EMPLOYEES:

13. Conductors, Assistant Conductors and Yardmasters who were VIA employees as of October 31, 1997 and to whom the Memorandum of Agreement dated march 6, 1987 in respect to the inter-Company transfer of employees between CN and VIA (the "Transfer Agreement:) is applicable as per item 10 of the said Transfer Agreement, may apply for one of the following opportunities:

1. a voluntary retirement opportunity as defined in paragraph 9 above;2. training as a Locomotive Engineer, in seniority order;3. exercise their right to return to CN under the terms of the Transfer Agreement;4. receive a voluntary severance payment as set out in paragraph 11.

An employee may apply for one or more of the opportunities, in which case the opportunities will be given priority by the Corporation in the order of preference indicated by the employee. Should the employee fail to indicate his priorities, the opportunities will be given priority by the Corporation in the order in which they are listed above.

Should an employee fail to apply for any of the opportunities listed above, he shall be deemed to have applied to exercise his right to return to CN under the terms of the Transfer Agreement.

The opportunity to return to CN under the terms of the Transfer Agreement will be granted to eligible employees subject to the agreement of the parties in the event that CN should refuse to allow the eligible employees to return to CN under the terms of the Transfer Agreement.

14. Application for opportunities must be received by the Corporation no later than June 26, 1998, either by fax (514-871-6652) or otherwise at the following address:

Via Rail Canada Inc
2 Place Ville-Marie
Montreal, Quebec
H3B 2G6
C/o Mr. Ed. Houlihan

15. Conductors, Assistant Conductors and Yardmasters will be given full and unprejudiced consideration in the selection for training under paragraph 13(b) by the Corporation in accordance with the implementation plan established in consultation with the Brotherhood.

16. Conductors, Assistant Conductors or Yardmasters who apply for training as per paragraph 13(b) but are not selected or do not qualify for the position will be granted another of the opportunities they have applied for according to the provisions of paragraph 13.

VIA RUNNING TRADES EMPLOYEES NOT COVERED UNDER THE TRANSFER AGREEMENT:

17. Conductors, Assistant Conductors and Yardmasters who were VIA employees as of October 31, 1997 other than those mentioned in paragraph 13, may apply for one of the following opportunities:

1. a voluntary retirement opportunity as set out in paragraph 9 above;

2. training as Locomotive Engineer in seniority order;

3. receive a voluntary severance payment as set out un paragraph 11;

4. apply for another employment opportunity at Via;

5. apply for lay-off as set out in paragraph 12.

An employee may apply for one or more of the opportunities, in which case the opportunities will be given priority by the Corporation in the order of preference indicated by the employee. Should the employee fail to indicate his priorities, the opportunities will be given priority by the Corporation in the order in which they are listed above.

If an employee does not apply for any opportunity for which he is eligible under this paragraph, he will be laid-off in accordance with paragraph 17(e).

18. This application for opportunities must be received by the Corporation no later than June 26, 1998, either by fax (514-871-6652) or otherwise at the following address:

Via Rail Canada Inc
2 Place Ville-Marie
Montreal, Quebec
H3B 2G6
C/o Mr. Ed. Houlihan

19. Conductors, Assistant Conductors and Yardmasters will be given full and unprejudiced consideration in the selection for training under paragraph 17 (b) by the Corporation in accordance with the implementation plan established in consultation with the Brotherhood.

20. Conductors, Assistant Conductors and yardmasters who apply for training as per paragraph 17 (b) but are not selected or do not qualify for the position will be granted another of the opportunities they have applied for according to the provisions of paragraph 17.

LOCOMOTIVE ENGINEERS:

21. Locomotive Engineers may apply for severance opportunities in accordance with the provisions of paragraph 11.

22. Any eligible Locomotive Engineer may apply for a retirement opportunity as set out in paragraph 9.

23. Such applications must be received by the Corporation no later than June 26, 1998, either by fax (514) 871-6652 or otherwise at the following address:

Via Rail Canada Inc
2 Place Ville-Marie
Montreal, Quebec
H3B 2G6
C/o Mr. Ed. Houlihan

24. Effective retirement or severance of a Locomotive Engineer for whom a retirement opportunity or a severance opportunity has been granted shall be deferred until such time as a new Locomotive Engineer is qualified and trained to replace him.

IMPLEMENTATION AND RELOCAITON:

25. The crew consist adjustment shall be implemented in accordance with the needs of the Corporation to maintain its passenger services and the implementation plan established in consultation with the Brotherhood.

26. Should the implementation of the crew consist adjustment require the effective relocation of an employee's residence, as determined by the implementation committee, such employee shall receive a lump sum payment of $25,000.00 as a relocation indemnity and in lieu of any other relocation indemnity. In the case of a disagreement as to the payment of the relocation amount, the matter will be referred for resolution to the Director of Labour Relations and the General Chairman representing the employee affected.

GENERAL PROVISIONS:

27: Application for one of the opportunities made under the terms of this agreement by Conductors, Assistant Conductors, Yardmasters and Locomotive Engineers shall be deemed irrevocable upon receipt by the Corporation.

28. A Conductor, Assistant Conductor or Yardmaster who becomes qualified as an Locomotive Engineer shall not be eligible for this enhanced retirement opportunity or severance opportunity for a period of five (5) years from the date of his qualification. The right to retire when eligible under the terms of the Corporation's pension plan, as per its provisions at the relevant time, is maintained.

29. There will be two Locomotive Engineers within the locomotive cab although it is recognized by both parties that, for operating purposes, one Locomotive Engineer shall be designated as "in-charge". Such designation may very between the two Locomotive Engineers.

30. This agreement is in full and final settlement of all matters outstanding between the parties in direct or indirect relation to the implementation of the crew consist adjustment agreement.

31. This agreement shall form part of the collective agreement to be signed between the parties.

32. This agreement is subject to ratification by the VIA membership of the Brotherhood: the Brotherhood undertakes to complete the ratification process no later than June 21, 1998.

Signed this 12th day of June 1998.

VIA RAIL CANADA INC

THE BROTHERHOOD OF LOCOMOTIVE ENGINEERS

Bannon E. Woods - Director Human Resources and Labour Relations
John Tofflemire - General Chairman
Edward J. Houlihan - Senior manager-Labour Relations
Bradford E. Wood - General Chairman
Francine Hebert - Special Project Officer
Michael W. Simpson - General Chairman

Copyright © 1998 Brotherhood of Locomotive Engineers - National Legislative Board - Canada