CANADIAN PACIFIC RAILWAY

and the
CANADIAN COUNCIL OF RAILWAY OPERATING UNIONS

(UTU and BLE RED DEER)
in regard to a

FLAT RATE METHOD OF PAY FOR THE RED DEER ROADSWITCHER ASSIGNMENTS

It is hereby agreed that effective on August 18th, 2003, the Red Deer Roadswitcher Assignments will be placed on a flat mileage method of pay of 200 miles at yard rates and subject to the following terms and conditions.

Each Locomotive Engineer, Conductor and Trainman on these assignments must fulfill the following terms and conditions to qualify for flat rates as set above:

A) If notice is served in accordance with Article 29.04(UTU) or Article 27.04 (BLE) by a crew member(s) AND relief is required the crew member(s) relieved will no longer be considered to be on the flat rate mileage.

B) If the assignment is cancelled after commencing duty due to an unforeseen circumstance as outlined in Article 28 (UTU) or Article 10 (BLE), payment will be in accordance with each respective collective agreement.

C) The work assigned to this assignment, when practicable, must be completed as instructed. This could require the crew or crewmember, assigned or spare, to work up to the 12th hour. All rules and regulations as outlined in GOI section 3 apply. Employees being transported after working up to the 12^th hour will be paid straight time, in addition

to the established flat rate.

D) It is hereby agreed that effective August 18^th, 2003 the 30 mile limit for the Red Deer Roadswitcher Assignments have been extended to mile 36 on the Leduc Subdivision only in order to facilitate the servicing of Ritchie Brothers at Ponoka. The crew members involved in exceeding the 30 mile limit as set out herein will be paid 10 extra miles at the applicable rate. If this agreement is cancelled the mileage extension will no longer apply.

E) Employees will be paid the General Holiday an amount equal to the earnings for the tour of duty prior to the General Holiday.

This Agreement is without precedent or prejudice to either party and can be amended, revised or cancelled upon thirty days written notice by either parties. It is also agreed that if this assignment is abolished in accordance with each respective Collective Agreement and is recreated under the same parameters the agreed upon flat rate mileage would continue to apply.

Signed for the Union:

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M. D. Ropchan, Local Chairperson CCROU - UTU Local 1828

Signed for the Union:

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
J. F. Deegan, Sub Local Chairman CCROU - BLE Division 355

Signed for the Company:

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
J. L. Stevens, Manager Operations, Canadian Pacific Railway