SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 4, 1996
Illinois Central Corporation
Exact name of Registrant as specified in its charter
Delaware 1-10720 13-3545405
(State or other jurisdiction (Commission (IRS Employer
of incorporation File Number) Identification No.)
455 North Cityfront Plaza Drive, Chicago, Illinois 60611-5504
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (312) 755-7500
<PAGE>
Item 5. Other Events
The Company and the United Transportation Union (UTU) have agreed to
present a contract agreement proposal to the Company's employees
represented by the UTU. The employees will vote to select one of
three options. The first option would require the Company to make
a one-time payment of $60,000 to each trainman in exchange for the
elimination of Annual Productivity Fund payments. The second option
is for an agreement similar to that reached by the UTU and other
railroad companies. The third option would commit the Company and
the UTU to binding arbitration.
The costs associated with option one are the only costs which are
presently determinable. If option one is selected, the preliminary
estimates indicate that a special pre-tax charge of approximately
$10 million would be recorded. A pre-tax cash payment of
approximately $40 million would be required in 1997.
The UTU expects to announce which option has been selected by its
members during January 1997.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereto duly authorized.
ILLINOIS CENTRAL CORPORATION
/s/ DALE W. PHILLIPS
Dale W. Phillips
Vice President & Chief Financial Officer
Date: December 4, 1996
