2 1/2% PAY RAISE DUE EFFECTIVE JULY 1, 2004.... STEP RATES ELIMINATED JULY 1, 2004 ON UNION PACIFIC

-----Original Message-----
From: FORRESTEEBERSOLD@UP.COM [mailto:FORRESTEEBERSOLD@UP.COM]
Sent: Wednesday, June 30, 2004 2:20 PM
To: All BLET General Chairmen
Subject: BLE - T Rate and Step Rate Increases

The most recent National Agreement provided that all TEY employees who were hired on or before July 1, 2004 would have their step rates waived effective July 1st. On the morning of July 1st, the step rates for affected employees will be increased. Those increases should be completed by noon. We will repay all slips for July 1, 2004 for the affected employees after we close the last half of June payroll. This repayment process will be completed by close of business on July 9, 2004. If there any questions regarding shortage of pay because of step rate percentage issues, we would ask the individual employee not to call the Timekeeping Customer Service Center before July 9, 2004.

Also the National Agreement provided for a rate increase of 2.5%. All relevant BLE - T rate schedules have been updated and will be effective July 1. For those runs that are either "trip rated" or "flat rated" the increase will not be completed until after the close of the last half June payroll. The same would apply to individual classes of time that are subject to increases. The repayment process outlined for step rates will
also be used for reprocessing timeslips in the affected run areas. Again we ask individual employees not to call the Timekeeping Customer Service Center before July 9, 2004 regarding pay shortages due to rate increases in the "trip" or "flat" rated areas or classes of times that are subject a general wage increases.

If you have any questions about the process please do not hesitate to call me about them. Please feel free to do so immediately.

Forrest E. Ebersold
Team Leader, System Development and Support
Timekeeping Operations
Union Pacific Railroad
Phone (402) 997-2127
Fax (402) 233-2274