NEGOTIATION SESSION NOTES 9/17/02

Mgmt Caucus

Union Caucus

Kelley: We feel we had an agreement yesterday that we would come back in today and discuss and complete the ground rules. We placed a demand to bargain on the ground rules for this session in June. Management is reniging on yesterdays agreement and the Union considers this bad faith bargaining. The union has call the FMCS and we are at impasse. We are at impasse on all items for this negotiation session.

Bob asked what the FMCS said. Kelley informed him that she had to leave a message.

Union team started to pack up and leave. Darryl Roberts stated: If you walk out of this session we will negotiate everything. Union left the room to wait on a call from FMCS.

Approx. 9:30 am.

Reconvened at 1:00 p.m. to meet with the mediator from FMCS.

Mr. Loefler is the mediator. Wants a view of why he is here. Kelley went first. Explained the Union position. Management took the position that the ground rules were already in place. Separate groups had ground rules but not the body we have now. Agreement to open today discussing the ground rules and possibly negotiate. Bob: Mgmt felt there was an agreement with Kelley to use prior ground rules and negotiate future ground rules. Use old ground rules with some tweaks for this session. Ready to negotiate ground rules for future sessions but felt this session was already agreed to.

Mr. Loeflerís role in this is to deal in interests. Cannot make us do anything, but can lead us to what is in the best interest of both parties. When go into separate caucus and what is said behind closed door, it stays there. "If you canít agree on the manner in which you proceed, what do you expect from me?" He has been on both sides of the negotiation table both mgmt and union. Need the main sticking points on the ground rules. If we canít get that, he will turn to Kelley and Bob to ask what they plan to do next. Until the mediator actually states we are at impasse we cannot go to the Federal Impasse Board. Any questions?

Management has a written proposal to give out. They have taken out some of the items that were put in by the Union. Some they are not willing to have in and others were considered to be not necessary. Will give out copies so that the Union can review and ask just simple questions. These ground rules will cover for negotiations from now until Feb 28, 03. For the record: These ground rules are for National negotiations only.