2011 FIRST QUARTER REPORT 

ALL LOCAL UNIONS                               

SYSTEM COUNCIL NO. 2

 Dear Brothers and Sisters:

   The Federal Railroad Administration’s (FRA) ban on the use of
    cellphones and other electronic devices became permanent on March
 28, 2011. The ban prohibits the use of an electronic device, whether
 personal or supplied by the carrier, if it interferes with the employee’s or
 another employee’s performance of safety-related duties. For more
 information, please find the enclosed attachment outlining the highlights
 of the ban.

Synthetic marijuana, commonly referred to as K-2/Spice, has now
 been declared a Schedule I controlled substance drug. Schedule I drugs
 are considered by the Federal Government to have no legitimate
 medical use. Therefore, on March 1, 2011, the Drug Enforcement
 Administration (DEA), U.S.Department of Justice issued its Final Order
 as set forth in the Federal Register. This action is based on a finding by
 the Administration that the placement of these synthetic cannabinoids
 into Schedule I is necessary to avoid an imminent hazard to the public
 safety. (See attached - DEA Federal Register Final Order)
 

            In my 2010 Fourth Quarter report, I advised that the National
 Bargaining Coalition consisting of the IBEW, IAM, TCU, TWU and
 ATDA, petitioned the National Mediation Board (NMB) for release from
 mediation in negotiations with the nations freight railroads. Thereafter,
 the NMB advised that they would not release us as they felt the time for
 release and proffer of arbitration was premature. Following the NMB’s
 denial for release, the bargaining coalition met again with the mediator
 and the railroads, the last session being held on January 25, 2011.
 During this session the mediator suggested two different settlement
 proposals which failed to lead to agreement. At this time it was obvious
 that further mediation would be unproductive and the mediator cancelled
 the mediation session for January 26^th and did not schedule any further
 sessions. He advised that he would notify the NMB, that in his opinion,
 the parties were at impasse. Following the January 25^th session, the
 IBEW along with the other Coalition Unions, petitioned the NMB a
 second time advising that the parties are at impasse and again
 requesting release and proffer of arbitration. The NMB has now
 scheduled a special session at the NMB offices in Washington DC for
 the dates of April 5^th & 6^th. I will continue to keep you advised with any
 updates.

(See attached – IBEW Rail Department “National Freight Railroads Bargaining Update February 18, 2011”)            

January 2011 

• During the week of January 10^th, VGC Shell, AGC Tortorice and I
   toured the Union Pacific West Colton and City of Industry,
   California locomotive facilities. Also, in preparation for the
   upcoming Positive Train Control project, we attended a
   presentation at the City of Industry facility concerning training and
   certification for the installation and maintenance of the locomotive
   PTC equipment.    
   

• On the dates of January 25^th – 27^th, the System Council staff and I
   met at the Council office to discuss our outstanding claims and
   other issues affecting the membership as well as our 2011
   objectives.      
   
• On the dates of January 30^th & 31^st, I attended the IBEW Rail
   Department General Chairmen’s meeting facilitated by IBEW Rail
   Director Bill Bohne’.
   
• During the month of January, the System Council staff and I
   handled several disciplinary issues with regards to membership
   on Union Pacific and the Kansas City Southern railroads. VCST
   Shell completed the 2010 System council financial reporting
   obligations. 
   

February 2011

• During the week of February 7^th, the System Council staff and I met
   at the Union Pacific Omaha office to conference outstanding
   claims and to finalize the provisions of the PTC training and
   certification agreement.
   
• On February 16^th, VGC Shell met with the North Little Rock Local
   Union 807 officers and attended the monthly meeting.
• 
  In February, AGC Tortorice met with the officers of Los Angeles
   Local 889 and attended the monthly meeting.
• 
  During the month of February, AGC Tortorice handled several
   disciplinary investigations. The System Council also began its
   preparation for cases tentatively scheduled for arbitration.