Employee's Exhibit 12. Instability of Employment of Non-Operating Railway Classes.

On September 1, 1961 the Organizations served the Carriers with a "Section 6 Notice," giving the customary 30 day notice, of a desire to revise and supplement all existing agreements, effective November 1, 1961 in two respects; (l) All pay rates to be raised 25 cents per hour on that date, and (2) Six month's notice to be given to employees to be affected by a reduction in force or abolition of positions, except in certain emergency situations. The Carriers made the following counter proposals; (l) Reduce by SO per cent the rates of pay of certain groups of middle and lower range employees, (2) Establish entry rates for seven groups at 80 per cent of existing rates, to be increased by 4 per cent per annum until established rates are reached, (3) Establish flat $1.25 hourly rate for diner car waiters and others who serve food and drinks, and (4) Eliminate all rules or provisions which require more than 24 hour advance notice prior to abolition of positions or reduction of force. On September 21, 1961 the Organizations invited the Carriers to meet on the issues. On October 5, the Carrier replied that they would consider the matter later. On October 10, 1961 the Organizations invoked mediation. The parties met in Washington, D. C. on January 10, 1962 to negotiate, where virtually nothing was accomplished. The Organizations declined the National Mediation Board's offer of arbitration whereupon certification of the dispute to the President and the appointment of the Emergency Board followed. The Board consisting of Saul Wallen, Chairman, and Laurence E. Seibel and Edward A. Lynch met with the parties in Chicago on March 6, 1962. Hearings were held there and in Washington for a total of 15 days. The Board also attempted to mediate the differences between the parties but failed. The Board issued its report on May 3, 1962.