ALL LOCAL UNIONS
SYSTEM COUNCIL NO. 2

Dear Sisters and Brothers:

On the date of August 16, 2006, Assistant General Chairman Don Tortorice and myself visited the Progress Rail shop in Sacramento, California, and attended the Local Union meeting of Local Union 1682, Roseville, California.

After approximately three (3) years of working out a discipline diversion program and a CORE program for discipline, the Carrier has arbitrarily and capriciously taken it upon themselves to change the UP discipline policy.  Let it be known and understood that your General Chairman has not been a party to this, nor does he agree with any of their dictatorial policies.

On the date of August 30, 2006, Assistant General Chairmen Jim Wisniski, Don Tortorice and David Starkjohann, and myself, met with Communications Director Neal Spencer, General Director Labor Relations D.A. Moresette and Labor Relations Officer Mike Phillips advising them that by assigning the Installation Technicians, this does not change their Scope rule per se.  They are only limited to perform the work outlined in their Scope rule.     We are looking at changing some of their Scope rules to be in line with the work that they have been performing for almost ten (10) years.

Also, on the date of August 30, 2006, I entered into an Agreement with the Carrier establishing a new Public Law Board with Referee Don Hampton.  This should help expedite the handling of our discipline cases.

Vice General Chairman/Secretary-Treasurer Pat Perry is still recovering from his surgery but is still performing his duties on a limited basis.

Assistant General Chairman Don Tortorice helped hold an investigation at Albina Shops to which the Carrier was unable to support their burden of proof and the alleged charges were dismissed in part.  Brother Tortorice was also on vacation during the week of August 21-26, 2006.

He also attended the SACP meeting on discipline diversion program on August 29, 2006, to which the Carrier has already enacted their new policy effective October 1, 2006.  Brother Tortorice did convey our message that we are not a party to this discipline policy.

Assistant General Chairman Jim Wisniski handled outstanding claims and has been working on numerous submissions that he has prepared for the Board.

This will also advise that by a unanimous decision of the Executive Board Brother Juventino Ochoa has been appointed as Assistant General Chairman to replace Brother Tom Stefaniak who recently retired.

I am enclosing letter to five Carrier officers concerning Union Pacific Railroad’s new policy and procedures for insuring rules compliance and our problems with this new policy and cancelling of old agreements without the consent or consultation of the Organization.

Also hereto attached are the following items:
1.     List of Certified Labs for FRA urine drug testing (to be given to all Local
       Chairmen also); details
2.    CORE cancellation letter from Labor Relations dated August 31, 2006; details
3.    Thank you from VGC Pat Perry; details
4.    E-mail from Michael Bowgren on GA23000 rates for 2007; details
5.    RRB Job Vacancies list; details
6.    Scheduled Informational Conferences from RRB; details
7.    RRB V.M. Speakman, Labor Member, newsletter for Augus; details

Also, enclosed is our financial report for System Council No. 2 for the month of July, 2006, which is not to be disseminated or posted along with this newsletter.

With best wishes, I remain

Fraternally yours,

Vic Janecek

General Chairman, SC#2