(UTU Letterhead not Reproduced)

October 5, 1999

Chairpersons
General Committees of Adjustments
Railroads in the United States
United Transportation Union

Letter No. WR-16-94

Dear Chairpersons:

The Award of Arbitration Board No. 559 contained a provision for a Cost-of-Living Adjustment to become effective December 31, 1999 and to be rolled into the basic daily rates of pay.

The formula for this C-O-L-A, set forth in Article II, Part B and Article II, Part C, Section 1 (e), produced 60-cent per hour cost of living adjustment. This amount will be offset by a 4-cent per hour health and welfare contribution so that the net allowance to be rolled into the basic daily rates will be 56-cents per hour.

Fraternally yours,

Charles L. Little
International President

cc: Mr. B. A. Boyd, Jr., Assistant President

International Officers
State Legislative Directors
Field Supervisors
Designated Legal Counsel


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