ALL LOCAL UNIONS
SYSTEM COUNCIL NO. 2

Dear Sisters and Brothers:

    On the date of February 2, 2006, I met with General Chairman Robert Moore, General Chairman IAM (Machinists); Don Hall, General Chairman IAM; and Rich Nadeau, General Chairman, IAM; and with the Carrier.  We had the proxies for the Sheetmetal Workers, Firemen & Oilers and Boilermakers unions who were unable to attend this meeting.  The Carrier appears to be somewhat begrundled and adamant on our meeting as a group with the Coalition on generic issues.  Therefore, as required by law, they merely sat at the table without making any decisions, providing little input or response, except to get back with us.  We set forth our positions concerning the subcontracting, the TFO facilities and the Rock Train Agreement.  Since the Carrier was unable to come forth with any decision or agreement, we have agreed to meet again on March 1, 2006, in Kansas City, Missouri.  It appears all crafts will be present.  You may rest assured the Carrier will continue in every way to drive a wedge between the crafts and break the Coalition.  We cannot allow this to happen.  So far, with Machinist Director Bob Reynolds’ retirement, it appears that the Machinists are willing to stick with the Organizations and act as a group.  I would like to thank GC Bob Moore for not crumbling under the pressure and not agreeing with the Carrier.  Again, I would like to thank Brother Moore for allowing his conference time for the Federation to meet as a group.  Regardless of any personal feelings, there is strength in numbers.
    On February 8, 2006, Brother Bill Bohne, Director of Railroads, called a meeting for the General Chairmen in Miami, Florida, prior to the AFL-CIO meeting on February 9, 2006.  I met with Brother Bohne and attended the AFL-CIO cocktail hour.  Based on the meeting with new Director Brother Bohne, I feel that the membership will see a turn for the better as we have been reassured that we will be receiving better correspondence and prompt addressing of our issues.
    This will further advise that the Railroad Department conference will be held in Jacksonville, Florida, on May 22, 2006, through May 23, 2006.  The General Chairman’s meeting and Coordinating Council meeting will be held on Wednesday, May 24, 2006.  This meeting is only for the General Chairmen and staff.  The conference will be held at the Hilton Hotel in Jacksonville, Florida.  As soon as final arrangements are made with the hotel, Brother Bohne’s office will be forwarding details for the conference.  This is merely for your information and so that your delegates can make arrangements for time off and airfare.
    On February 13, 2006, myself and all other railroad union representatives attended a State Legislative dinner with Mr. Ron Ruff who will be running for that position.
    On February 14, 2006, I attended Local Union 1920’s union meeting and on February 28, 2006, I will be en route to Kansas City, Missouri, for the Coalition meeting.
    Whereas, there still seems to be some confusion and misunderstanding with respect to the One Step Appeal Agreement, this will advise that I am trying to eliminate the notification of a conference on the first level to be requested and to be removed from the Agreement.  However, irrespective of whether or not that is accomplished, this will formally advise that the Local Chairmen need not request the conference.  However, they must have their complete claim and all pertinent correspondence, including the transcript, sent to their respective Vice General Chairman and/or Assistant General Chairman for further handling within thirty (30) days.  This will enable this office to review and request conference prior to the expiration of the remaining thirty (30) days.  This Agreement was reached for one purpose and one purpose only.  That is, I was unaware of any claim that were won on the first step.  Therefore, this was a way to eliminate ninety (90) days off  the process.  Then, the General Chairman had sixty (60) days to appeal it to the Labor Relations which in turn had another sixty (60) days to decline the appeal and then we had nine (9) months to attempt to handle it before filing with a Board.  This was not acceptable and therefore, although the current process is still lengthy, we have removed approximately ninety (90) days or three (3) months from the process.  The Local Chairman need not send a claim letter, wait for a receipt from the Company, then send a declination letter and forward the entire information on to this office.  Now the Local Chairman merely submits his claim, as was done in the past, but not to the first officer, but to the highest designated officer, Mike Phillips, Labor Relations, Omaha, Nebraska.  This not only shortens the time limits by three (3) months but also cuts down on the work that the Local Chairman had to perform in the past.
    Although proper correspondence has again been sent out to the Presidents and Financial Secretaries concerning the per capita for wages received in our last contract, the following Local Unions have still failed to comply:  726, 799, 807, 1682, 1758, 1829, and 1911.  If any of the aforementioned Local Unions have submitted their per capita deduction to the Carrier and is in the process of being processed by the Carrier, please disregard.  However, those of you who have not, again it is imperative that we comply with the System Council Bylaws as written.  These Bylaws are not a request but a requirement to comply.

Please find hereto attached the following:

1.    Explanation of handling One Step Appeals to the Local Unions; (details)
2.    Voice at work dated February 16, 2006; (details)
3.    Temporary Assignment of Electricians to Roseville Locomotive Shop to
       decrease the bad order locomotive held count dated February 2, 2006,
       amending all other prior agreements; (details)
4.    RRB Newsletter dated February 2006 from V.M. Speakman, Labor Member;
       (details)
5.    RRB Scheduled Informational Conferences for March-December 2006; and
       (details)
6.    RRB Job Vacancies List; (details)

    Also hereto attached is our January 2006 financial report which should not be posted or disseminated as well as this newsletter.

With best wishes, I remain

Fraternally yours,

Vic Janecek

General Chairman, SC#2