PRE-EMPLOYMENT ALCOHOL AND DRUG SCREENS

The Company requires that prior to being employed; all new full time employees must have a pre--employment negative test for Drugs or Alcohol.

Any time the Company suspects that you are under the influence of an illegal controlled substance or alcohol while on duty, or otherwise have violated the Company drug policy as set out above, you will be required to submit to a drug and/or alcohol test.

It is not the Company's policy to measure the degree you are under the influence of an illegal controlled substance or alcohol. If a test indicates the presence of illegal controlled substances, or their metabolites, or alcohol, that employee is presumed to be under the influence by such drugs and will be subject to disciplinary action.

Because of the sensitivity, the substance abuse test may reveal whether or not you have used certain drugs within the recent past (in rare cases up to sixty (60) days before the sample was taken.) As a general matter, the test cannot distinguish between recent use and under the influence. A positive finding on any substance abuse test will support the presumption that you were under the influence at the time the sample was taken. Furthermore, it is Company policy to forbid the use of illegal drugs when off duty.

DRUG AND ALCOHOL PROCEDURES

Company supervisors are expected to monitor their operations and to investigate as necessary, situations which may violate Company drug and alcohol policies. If a supervisor detects the odor of alcohol on an employee, if the employee is found in possession of alcohol or illegal controlled substances, or if the supervisor has suspicion to believe that an employee's behavior is the result of being under the influence of drugs or alcohol, then the employee will be removed from service and will be required to complete the appropriate substance abuse testing for alcohol and/or drugs. In all cases the employee will remain out of service until the results of the substance abuse testing have been received.

The Company uses the Random method of testing selection to determine both Hours of Service and Non Hours of Service employees who will be subject to unannounced testing during the year. Hours of Service employees are covered under Code of Federal Regulations (CFR) 49 parts 40 and 219. Subpart G. Because the method of selection is random (or by chance of the draw) some employees may not be picked to be tested more than once and other employees may be tested more than once and other employees may not be picked to be tested.

It is the policy of the Company not to allow or permit employees who are suspected or have violated the Drug and Alcohol policy, or appear to be under the influence of alcohol or other drugs, to drive their personal vehicle or any other vehicle from the Company's property. This policy is based upon the Company's responsibility to protect the safety of the employee involved, and to protect the safety and health of others.

1. If a probable violation of the Drug and Alcohol policy has been found, a substance abuse test will be required. If the test concludes that a violation has occurred, the employee will be dismissed.
2. An employee who is dismissed under this policy who has at least one or more years of service and has had no prior violations of the Drug and Alcohol policy, may after a period of time to be determined by the Company, re-apply for employment with the Company, and at the sole discretion of the Company, may be reinstated on a 1 year probationary basis, subject to drug and alcohol testing at the sole discretion of the Company in accordance with recommendations from a Substance Abuse Professional.

IDENTIFICATION OF TROUBLED EMPLOYEES

Employees who may have a drug and alcohol problem should, before the problem is found through testing, talk to their supervisor and the supervisor can refer the employee to the Human Resources Department for the identification of a Substance Abuse Professional (SAP). The Company will not pay for any counseling or treatment programs, but will try to cooperate with the employee to help resolve the employees' problem as the Company deems appropriate within its sole discretion.

Whenever an employee talks to their supervisor, this information will be kept confidential. The employee must follow all recommendations of the Substance Abuse Professional to remain employed with the Company. This is a one time referral only.

Co-workers should immediately refer any employee to their supervisor or any management representative if the co-worker feels the employee is unsafe or appears to be in violation of the Company Drug and Alcohol policy. If the employee is found to be in violation of the policy, the employee will be removed from service. The employee will be given a one time option at the sole discretion of the Company unless otherwise mandated by respective DOT guidelines to meet with a Substance Abuse Professional (SAP) provider at the employee’s own expense. The employee must agree to undertake and successfully complete a course of treatment as recommend by the SAP provider at their own expense as a requirement of eligibility for employment.

HOURS OF SERVICE PERSONNEL

Voluntary Referral Policy.  This railroad’s policy to comply with Part 219.403 is as follows:

Employment Relationship.  A covered employee who enters and follows the tenants of this program as discussed below, will maintain his or her position upon successful completion of the program.  Before the employee is charged with conduct deemed by the railroad sufficient to warrant dismissal, the employee must seek assistance through the railroad for his or her alcohol or drug use problem or be referred for such assistance by another employee or by a representative of the employee’s collective bargaining unit.

Referral Sources.  The railroad must specify whether, and under what circumstances, its policy provides for the acceptance of referrals from other sources, including (at the option of the railroad) supervisory employees.  Identify acceptable referral sources besides the affected covered service employee:

The Company (Watco Companies, Inc.) has a program that allows either self-referral or co-worker referral to the Employee Assistance Program if an employee has a drug or alcohol related problem. Employees with drug or alcohol problems that have not resulted in, and are not the immediate subject of, disciplinary action may request approval to take unpaid time off to participate in a rehabilitation or treatment program through the Company’s Employee Assistance Program. Leave may be granted if the employee agrees to abstain from use of the problem substance, abide by all Watco Companies, Inc. policies, rules and prohibitions relating to conduct in the workplace. All railroads named herein will, to the extent necessary for treatment and rehabilitation, grant the employee a leave of absence from the railroad for the period necessary to complete primary treatment and establish control over the employee's alcohol or drug problem. The policy will allow a leave of absence of not less than 45 days, if necessary for the purpose of meeting initial treatment needs. The employee will be returned to service on the recommendation of the substance abuse professional. Approval to return to service will not be unreasonably withheld.

Employees with questions or concerns about substance dependency or abuse are encouraged to discuss these matters with their supervisor or Human Resources Department, without fear of reprisal, to receive assistance or referrals to appropriate resources in the community. Disclosures you make to the Company concerning your use of legal drugs or your participation in any drug or alcohol counseling or rehabilitation program will be treated confidentially.

Confidentiality.  The railroad treats the referral and subsequent handling, including counseling and treatment, as confidential.  With respect to a certified locomotive engineer or a candidate for certification, the policy of confidentiality is waived (to the extent that the railroad shall receive from the EAP Counselor, official notice of the substance abuse disorder and shall suspend or revoke the certification, as appropriate) if the person at any time refuses to cooperate in a recommended course of counseling or treatment.  Any drug and/or alcohol testing conducted pursuant to this railroad’s voluntary referral policy is non-Federal testing because a violation of Federal regulations has not occurred.

Leave of Absence.  The railroad will, to the extent necessary for treatment and rehabilitation, grant the employee a leave of absence from the railroad for the period necessary to complete primary treatment and establish control over the employee’s alcohol or drug problem.  The policy must allow a leave of absence of not less than 45 days, if necessary for the purpose of meeting initial treatment needs.

Return to Service.  The employee will be returned to service on the recommendation of the SAP.  Approval to return to service may not be unreasonably withheld.

Optional Provisions.

1.       The policy may provide that it does not apply to an employee who has previously been assisted by the railroad under a policy or program substantially consistent with 219.403 or who has previously elected to waive investigation under 219.405 (co-worker report policy).

Identify whether you adopt this optional provision:

Watco Companies, Inc. adopts this provision.

2.       A voluntary referral policy may provide that the rule of confidentiality is waved if the employee at any time refuses to cooperate in a recommended course of counseling or treatment; and/or the employee is later determined, after investigation, to have been involved in an alcohol or drug related disciplinary offense growing out of subsequent conduct.  Identify whether you adopt the first, second, or both options:

Watco Companies, Inc. adopts both provisions.

3.       The policy may provide that, in order to invoke its benefits, the employee must report to the contact designated by the railroad either during non-duty hours (i.e., at a time when the employee is off duty); or while unimpaired and otherwise in compliance with the railroad’s alcohol and drug rules consistent with 219.403.  Identify whether you adopt this optional provision:

Watco Companies, Inc. adopts this provision.

4.       The policy may require successful completion of a return-to-service medical examination as a further condition on reinstatement in covered service.  Identify whether you adopt this optional provision:

Watco Companies, Inc. adopts this provision.

5.       Other Optional Provisions:_________________________________________

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Co-worker Report Policy.  This railroad’s policy to comply with 219.405 is as follows:

Employment Relationship.  A covered employee who enters and follows the tenants of this program as discussed below, will maintain his or her position upon successful completion of the program.  This policy applies to an employee following an alleged first offense under Part 219 or the railroad’s alcohol and drug rules, subject to the conditions and procedures contained in 219.405.

General Conditions and Procedures. 

1)       The alleged violation must come to the attention of the railroad as a result of a report by a co-worker that the employee was apparently unsafe to work with or was, or appeared to be, in violation of Part 219 or the railroad’s alcohol and drug rules.

2)       If the railroad representative determines that the employee is in violation, the railroad will immediately remove the employee from service in accordance with its existing policies and procedures.

3)       The employee must elect to waive investigation on the rule charge and must contact the substance abuse professional within a reasonable period specified by the policy.  Contact time:  No later than the next business day following the waiver.

4)       The SAP must schedule necessary interviews with the employee and complete an evaluation within 10 calendar days of the date on which the employee contacts the professional with a request for evaluation under the policy, unless it becomes necessary to refer the employee for further evaluation.  In such case, all necessary evaluations must be completed within 20 days of the date on which the employee contacts the professional.

When Treatment is Required.  If the SAP determines the employee is affected by psychological or chemical dependence on alcohol or a drug or by another identifiable disorder involving the abuse of alcohol or drugs as a primary manifestation, the following conditions and procedures apply:

1)       Leave of Absence.  The railroad must, to the extent necessary for treatment and rehabilitation, grant the employee a leave of absence from the railroad for the period necessary to complete primary treatment and establish control over the employee’s alcohol or drug problem.  The policy must allow a leave of absence of not less than 45 days, if necessary for the purpose of meeting initial treatment needs.

2)       Agreement.  The employee must agree to undertake and successfully complete a course of treatment deemed acceptable by the SAP.

3)       Return to Service.  The railroad must promptly return the employee to service, on recommendation of the SAP, when the employee has established control over the substance abuse problem.  Return to service may also be conditioned on successful completion of a return-to-service medical examination.  Identify whether your railroad will be requiring a return-to-service medical examination:

Watco Companies, Inc. will require a return to service medical examination.

Approval to return to service may not be unreasonably withheld.

4)       Follow-Up Treatment.  Following return to service, the employee, as a further condition on withholding of discipline, may, as necessary, be required to participate in a reasonable program of follow-up treatment for a period not to exceed 60 months from the date the employee was originally withdrawn from service.

5)       Follow-Up Testing.  If there has been a violation of Federal regulations (219.101 or 219.102), the railroad must conduct Federal return-to-service and follow-up tests (as described in 219.104) of an employee who waives investigation and is determined to be ready to return to service under 219.405.

When Treatment is Not Required.  If the SAP determines that the employee is not affected by an identifiable and treatable mental or physical disorder, (1)  The railroad must return the employee to service within 5 days after completion of the minimum education requirements.  (2)  During or following the out-of-service period, the railroad will require the employee to participate in a program of education and training concerning the effects of alcohol and drugs on occupational or transportation safety.

If there has been a violation of Federal regulations (219.101 or 219.102), the railroad must conduct Federal return-to-service and follow-up tests (as described in 219.104) of an employee who waives investigation and is determined to be ready to return to service under 219.405.