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Norfolk Southern Railway and Brotherhood of Locomotive Engineers (BLE) recently came to terms on a collective bargaining agreement that continues to link engineers' compensation to NS' corporate performance.

With terms through 2009, the pact provides engineers with an annual bonus opportunity based on the same financial performance criteria that determines management bonuses, according to statements issued by NS and BLE. BLE has participated in NS' bonus program since 1996.

The pact also includes wage increases in 2005 and 2007, enhancements to BLE's 401(k) plan and incentive pay for weekend/holiday work.

"We want to take the lead in helping NS become more customer-focused and more successful," said BLE General Chairman R.C. Wallace in a prepared statement. "We expect to show results that will trigger even higher bonus payments."

Added NS Senior Vice President Administration Jim Hixon: "By resolving the contract issues now, we will be able to focus our combined energies on improving operating efficiency and customer service on the railroad."