Bulletin No. 008

	Canadian Council of Railway Operating Unions NATIONAL NEGOTIATIONS INFORMATION BULLETIN
D. C. (Dennis) Curtis General Chairman BLE/Western Lines		L. O. (Lou) Schillaci General Chairperson UTU/Western Lines
R. S. (Bob) McKenna General Chairman BLE/Eastern Lines		D. A. (Donald) Warren General Chairperson UTU/Eastern Lines

BULLETIN NO. 8

May 24th, 1999

Brother and Sisters,

On May 23^rd, 1999 the CCROU and the Company reached a tentative agreement. After meeting in Calgary for 10 consecutive days with the assistance of a two conciliation officers appointed by the Minister of Labour, a Memorandum of Settlement was signed late Sunday afternoon.

The following are the highlights of what the Memorandum of Settlement contains. Local Chairs will have a complete copy of the signed Memorandum forwarded to them by mail this week.

An 8% wage increase on all basic hourly, daily and weekly, and mileage rates of pay including all training rates, over the period of the contract at 2% per year in each year of a four year term, commencing January 1^st, 1999 and expiring on December 31^st, 2002.

Incremental increases in the Pension formula commencing on January 1^st, 1999 from the present 1.3% to 1.6% effective on January 1^st, 2001. This results in an annual increase to those going on pension this year of $1,309.00 or approximately $109.00 more pension each month. This will increase again in the years 2000 and 2001 for an overall gain in pensions of a minimum of $3,927 per year over the present pension formula. Those going on pension after January 1^st, 2001 will realize an increase in their pension from the present formula of at least $327.25 per month. This revised pension formula represents the highest rate increase of any union on CP Rail and is larger than the formula on CNR.

Over the period of the contract, members who have broken service, periods of suspension and/or dismissal or otherwise have periods where they lost pensionable service will be able to buy back that lost service and thereby regain that lost pensionable service. Unlike other railway contracts where this can only be accomplished in conjunction with material changes or other such issues where the member buying back pension must retire, this benefit is available to all CCROU members regardless of age and is not tied to any other requirement.

Revisions to the Pension Plan rules will also be made to permit employees who meet the requirements to qualify for an early retirement pension will be permitted to retire without the consent of the Company.

In order to partially finance the changes to the Pension Plan, we agreed to have the contributory level for employees, effective January 1, 2000, adjusted by half a percentage point. In other words, the current formula for calculating pension contributions will be adjusted by .5% from the present 5.4% up to the YMPE under the CPP/QPP to 5.9% and the present 6.98% for earnings in excess of the YMPE will now be 7.48%. For example, a member making $60,000 per year currently pays $3,597.08 per year in pension contributions. In the year 2000 and thereafter that contribution will increase by $300.00 per year to $3,897.08. That increased contribution will vary by earnings and it is tax deductible.

Effective January 1^st, 2000, children under the age of 18 will have extended dental coverage for pit and fissure sealants. The annual maximum limit on dental coverage, which has remained static since 1989, will go from $1,000.00 to $1,100.00 in 2000, to $1,200.00 in 2001 and $1,300.00 in 2002. This represents a 30% increase in the dental coverage limits for CCROU members and is a benefit that no other railway union can claim.

Paramedical coverage for the services of a registered naturopath, acupuncturist, chiropodist and the Victorian Order of Nurses (VON) will come into effect January 1^st, 2000.

Maximum limits on the amounts for chargeable expenses for vision care will increase from $175 to $200 on January 1^st, 2000.

Effective the first of the month following the ratification of the agreement CCROU members will receive an Emergency Travel Assistance benefit added to the Out of Canada medical insurance, that will provide a 1-800 number that will guarantee payment under the plan for emergency treatment outside of Canada. (Present coverage is for $1,000,000.)

These improvements in benefits are unique to the CCROU and its members, no other railway Union has them.

Life Insurance coverage for active employees will be increased from the present level of $25,000 to $29,000 effective the first of the month following ratification and then to $30,000 in 2000, $31,000 in 2001 and $32,000 in 2002. These increases will apply to the accidental death provision and effective the first of the month following ratification the double indemnity provision for accidental death will be expanded to include payment for paraplegia, hemiplegia and/or quadriplegia.

A new optional, employee paid life insurance program will come into effect January 1^st, 2000 which will permit CCROU members to purchase additional life insurance up to a maximum of $250,000 in units of $10,000. They will also be able to purchase life insurance for their spouse in units of $10,000 to a maximum of $150,000. This is another benefit that is available only to CCROU Members.

Weekly Indemnity benefits will be increased from the present $500 per week to $520 per week the first of the month following ratification, to $530 in 2000, to $540 in 2001 and $550 in the year 2002.

The Company has agreed to develop an updated "Benefit Booklet" within six months of ratification and additionally they will work with the Council to develop a presentation on employee benefits for the Council's internal use.

CCROU members will be able to purchase Canadian Pacific Limited common stock through payroll deductions and the Company will pay for the brokerage fees.

The gainshare program will be renewed and CCROU members will be credited with 20% of any savings generated by the program, up to a maximum of 4% in 1999 and in 2000 that share will increase to 40%. Before the program is instituted for 2001 or 2002, the share ratio and the maximum pay out will be reviewed by the Steering Committee, but under no circumstances will the share ratio be less than 40% or the payout cap be less than 4%.

Bereavement Leave will be amended to include spousal grandparents in 2000 and grandchildren and step-grandchildren in 2001. Additionally the Company has agreed that where extenuating circumstances, such as to schedule the leave in order to attend a funeral, exist the commencement of bereavement leave may be delayed upon authorization of the members supervisor.

All CCROU Members will have to have their annual vacation bids in by January 15 but local arrangements will be made for mutual agreement between the Local Union representatives and the Company to determine the number of employees who will be allowed to go on A/V at any one time per terminal and further accommodations will be made during peak annual vacation periods where traffic volumes permit.

Leaves of absence granted to Union Officers to conduct organization business will be considered as cumulative service (days worked and/or available) for the purpose of calculating annual vacation for those officers.

In regard to work rule changes, over the past 7 years a major concern for new hires has been the requirement for anyone hired on or after June 4, 1992 to qualify as a Locomotive Engineer or be released from service. This settlement changes that requirement to permit an employee who is unsuccessful at qualifying as a Locomotive Engineer to retain and continue to accrue seniority under the Trainperson/Yardperson Collective Agreement. They may be given a second opportunity to qualify, at the Company's discretion, but they will not be released from service regardless.

Road Switcher crews working a five day per week assignment will not be permitted to book rest beyond their assigned starting times during the regular work week, but those on a six or seven day per week assignment will be permitted to book rest beyond their assigned starting times once per week and twice per week respectively.

Assignments must be started within 5 hours of the bulletined starting time or they will be cancelled.

Crews asked to protect return movements while en route to the away from home terminal (AFHT) will be advised if the train to be protected has any expected work en route or at the away from home terminal, a change from the present rule.

When more than one TCS crew is deadheaded to or from the AFHT in the same vehicle, the Company will cover any buffer payment(s) instead of drawing from the buffer fund.

Yard assignments may be implemented on a ten-hour per day, 4 days a week basis if agreed upon locally. If such implementation of 10 hour shifts is agreed upon, arrangements may be made for flexible start times and the rates of pay for such assignments will be augmented with a $.50 per hour increase.

In response to complaints received by new hires about the one-week hold back of wages provided for in the current collective agreements, such hold back of wages will be eliminated.

A revised Locomotive Engineer training program will be implemented that will involve a combination of one-on-one training and on-the-job training while working as a Conductor. A revised pay system for candidates selected for training will be implemented that encompasses the greater of 3800 miles per month at Conductor's rate of pay or the individual's earnings for the past year.

Requirements for qualified Locomotive engineers to occupy the position of trainperson where seniority permits will be removed from the agreements and seniority alone will govern the placement of individuals.

Provisions for the creation of a Locomotive Engineer Extra Board are included in the settlement that creates a protocol for qualified Locomotive Engineers not working as such to request that they be called for ad hoc trips when necessary.

A procedure for familiarization trips for employees forced or transferring between terminals or between Yard and Road services is contained in the settlement. Pay rates and methods of dealing with appropriate levels of familiarization are contained in the settlement as well.

Changes to the investigation and discipline procedures have been agreed to that encompass a review process for the deferred discipline, dealing with customer service issues, admission of responsibility, notification of investigation, evidence and new mandatory time limits for the assessment of discipline within 20 days of the date the investigation is completed. If such time limits are not met or agreement for an extension of time limits is not secured, no discipline can be assessed.

In response to a perceived problem that the Company had in regard to employees moving into terminals where a surplus of protected employees exists, we have agreed that an employee transferring to such terminals on their seniority district will be restricted from applying for conductor only attrition opportunities at that terminal for a period of six months from the date of their transfer.

The Company's original demands to adjust the crew consists on Commuter Rail, Passenger and Excursion trains were addressed by a letter. Without changing any of the existing provisions in the respective collective agreement, we agreed that the Rocky Mountaineer operated between Kamloops and Calgary will be operated with a crew consist of one Locomotive Engineer and one Conductor, both of whom will be located in the locomotive. Conductor only rates of pay and premiums for the work performed will apply to this specific service.

There are other issues dealt with in the settlement as well. Once the Local Chair has received the Memorandum of Settlement, a complete review of the document should be made.

Company demands on the elimination of Conductor Only premium benefits, Yard Foreperson only yard crews, Extension of Yard Limits up to 75 miles, Variable Runs (Interdivisional, Wheeling and C-turns) and reductions in guarantee payments which were contained in their original demands are all gone. We believe this comprehensive settlement represents gains for our members in a number of very important areas. At the same time it also represents the first contract in the last 20 years or more where no major concessions have been achieved by the Company.

Your committee wishes to thank you for your patience and support in our efforts to achieve this agreement. A ballot is being prepared and will be distributed to you in the near future. Your decision in that ballot will govern this committee.

In solidarity,

Your negotiating committee.

Brotherhood of Locomotive Engineers and the United Transportation Union
TOGETHER WE PROUDLY REPRESENT CANADIAN RUNNING TRADES EMPLOYEES

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