NOTICE OF SETTLEMENT OF OUTSTANDING EXTRA BOARD REGULATION AND DROPPING TURNS CLAIMS

NOTICE OF SETTLEMENT OF OUTSTANDING EXTRA BOARD REGULATION

AND DROPPING TURNS CLAIMS

To: All employees of Union Pacific Railroad Company represented by the BLET Central Region General Committee of Adjustment (former Missouri Pacific Upper Lines):

For nearly 30 years, the GCA has been working hard to resolve time claims or grievances that Union Pacific locomotive engineers on the former MP Upper Lines have filed against UP’s wrongful application of the collective bargaining agreement provisions regarding regulation of the extra board and dropping turns.  This is to notify you that a settlement finally has been reached.  The settlement has two parts:

(1) extra board regulation and the “dropping of turns” on the territories governed by the GCA was modified effective the first regular pay half after May 3, 2019, and

(2) UP will pay $11,000,000 (“the Settlement Amount”) to resolve all outstanding time claims or grievances that have been denied by the Carrier at any level, including Timekeeping, involving the regulation of a guaranteed extra board and the dropping of turns, including time claims or grievances that were properly filed but not denied within the allowable contractual time period.   

The GCA’s records reflect that approximately 150,000 claims were filed by about 950 claimants since 1990.  The $11 million will be distributed amongst all claimants on a pro rata, per claim basis.  Each claimant will be entitled to a share of the Settlement Amount determined by multiplying the total money available ($11 million) by a fraction the numerator of which is the number of claims submitted by the claimant and the denominator of which is the total number of claims filed.  For example, if a claimant submitted 100 claims and the total number of claims filed by all claimants was 150,000, the claimant would receive $7,333.33 [$11,000,000 ÷ 100/150,000].

The GCA has reviewed its records and sent preliminary determinations to all claimants for whom it has records of the amounts they are eligible to receive under the Settlement.  If you received a letter and believe that you are entitled to a greater share of the Settlement Amount because you submitted more claims than the GCA’s records indicate, you must provide the GCA with evidence in support of your position in writing within 30 days of the date of the letter you received.  If you filed claims over extra board regulation and/or dropping turns and did not receive a letter from the GCA, that is likely because the GCA does not have your current address; you should immediately write to the GCA and provide us with your current address.  The GCA will evaluate all evidence submitted and, if it determines that the evidence supports your position, it will adjust the preliminary calculation it has made.  The final determination of each claimant’s share will be made after all claimants have been identified and the number of claims they filed has been verified.

 

The Settlement Amount will be distributed in two phases.  The initial distribution of $5.5 million will be made by the Carrier on or before December 6, 2019. Challenges raised by individuals regarding their eligibility for, or amounts of, distributions under this settlement that were not raised in response to the initial notification from the GCA must be submitted in writing to the GCA, with supporting evidence, and received no later than January 3, 2020.

 

The remaining $5.5 million balance is being held back to provide the parties time to resolve any additional claims or challenges that may arise from the initial distribution.  This could affect the total each claimant ultimately receives.  The balance will be distributed by the Carrier on or before March 15, 2020.

 

All payments to current employees will be subject to all applicable deductions, garnishments, federal, state and local income taxes, and employee railroad retirement taxes.  The claim settlement distribution will not be counted as earnings toward the 2020 1/52 vacation rate or count toward vacation qualification for 2020 or 2021.  For distributions to former employees or their estates, the Carrier will withhold employees’ share of federal and state income taxes using the applicable rate for supplemental wages.

 

If you are retired or no longer work for the railroad, you must submit a W-4 form in order to receive your share of the settlement; the form can be obtained at https://www.irs.gov/pub/irs-pdf/fw4.pdf. It must be filled out and returned to the GCA by U.S. mail within 30 days of the date of this letter.

 

Enclosed in your letter is a claimant verification form.  This form must be filled out and returned to the GCA by U.S. mail within 30 days of the date of your letter.

 

 

Central Region GCA Settlement

PO BOX 36

Hazelwood, Mo 63042

 

 

Because there are so many claimants, any questions you have about the settlement must be submitted to the GCA in writing by U.S. mail.  It will endeavor to respond as promptly as possible.