Session 6

(These are the notes represent the discussions from the 02/07/03 session; it is intended to represent the conversation and discussion to the best of our ability, it is not a verbatim transcription).

For the Union:
Holly Krig: worker
Jason Evans: worker
Simone Menier: worker
Bill Pearson, President
Bernie Hesse, Organizer
Jennifer Christensen, Representative

For the Company:
Maria Zachman, Store Manager
Mark Shiffmann, Attorney at Law
James Lathrop, Director HR

MS: We have an annual wage and benefit change that occurs each year and the changes are effective the 1st of April. What I have here is a letter with the open enrollment packet, also a memo we are suggesting be used to distribute the pkt. To the employees. There is one change in coverage. We currently have 100% coverage, we are changing that to 90/10. 100% is highly unusual, as is 90%, the union has 80% coverage. We are also asking the employees to increase
Current single $50 new: $57
E +1 $140 $160
Family $165 $185
There are changes in stock option grant. Currently issued quarterly, will be changed to annually �

JL: Used to be one grant per employee at a given quarter � now all on the same date

MS: Now need to be employees for two years. Employees who have received grants � with less than 2 years experience, they will have to wait until they have two years to get further options - limited to 50 options per year. We do a merit based wage adjustment. Pool established in the store. Based on management evaluations, the average wage increase would be equal to the pool. The pool is 3 � % increase.
Open enrollment is now February, that will be extended for these employees so they have four weeks. We also understand that all of these issues are subject to negotiations.
What we think the based way to go about this is to inform the employees of these changes. What I have is a copy of the memo and the packet.

What we are willing to do with respect to this store, instead of giving the excellent performer more and the lesser performer less, we are willing to give everyone the average, with exception of the very poor performer who is on the verge of being discharged, and I haven�t even discussed this with Maria, we would give them the increase.

BP: The 100% isn�t on everything?

JL: $150 on emergency room. Doctor�s visits not effected. $1000 per individual, $3000 for family. Hospital visits have co-pay and deductible. What we did was to try and keep overall percentage contribution at the same breakdown as it was before.

BP: For the cost that you had passed on to you� And this is in all the stores now?

MS: The benefits package is in the stores now.

BP: Are we going to get the actual costs of these plans?

JL: I have a call in we should be able to verify it today.

MS: In respect to your plan, you have one rate for single +1 and family?

BP: Yes, there is a different rate for PT coverage, but the rate is the rate is the rate. Do you have the breakdowns for this store?

JL: Everybody in this store is single coverage.

BP: You must have dental tacked on?

JL: However none of those changed.

MS: We provide a certain level of life insurance and disability coverage; the employees have the option of picking up extra.

If you could by the next time, new list of current employees and their wage rates, it is my understanding that the �seasonals� stayed on.

MS: Okay.

Break�

Resume 10:56

BP: I had Sam and Vicki on the phone from 876, Sam�s immediate reaction�was it the same letter?

MS: virtually identical
BP: I told them what you said over the table � I think from our perspective, put it in the stores, I have no sense that we will be done by April 1st. This isn�t about me, I am more concerned about what people in the store feel about the package. What they think is more important than what I think �
The one issue that we had a discussion about, was that Sam said the wage package was tied to the benefit package - ?

MS: again they are tied together - assuming we haven�t reached an agreement; we will implement them both. The thing I didn�t say to Sam was that we were going to give the 31/2 %. We have only interacted with them once. Vicki�s reaction has been atypical.

BP: are you saying to know you is to love you?
Are you saying if you don�t implement the wages you won�t implement the healthcare?

MS: we think what we said � is we are going ahead, subject to negotiations.
We are either going to implement it all or nothing.

BP: if the wage isn�t there is the benefit not there?

MS: the only way we could not implement it is to implement it and back it all out.
If we didn�t implement the health insurance, she�d have to pay the $10 and we would have to reimburse the $10.

BP: if you have a high utilizations person it could cost more.
That is why I asked you how many people you had on family because it could be much more expensive.

MS: I think it is the corporate norm to have everyone on single. We will get that in the hands of the employees by next week.

BP: then I can give you an official answer next week.

MS: Our next agenda item�
We were going to go through some language stuff�
I�ve (Katie has) updated language..

JE: can I ask about wage pool-
Does it include managers?

JL: They are still in a three and a half percent pool � but it is a different pool.

MS: I did check with Maria, there is not anyone in a disciplinary situation. If that is your preference we would distribute it evenly.

BP: did you preclude someone?

MS: The only people who would not be included are the milestone people.

JE: and the mile stones?

JL: those are preset.

BP: do contingents participate in the pool?

JL: I�ll have to check, I think so, but because they work very few hours it doesn�t really effect the pool.

MS:

HK: You had mentioned previously that if there were various levels of achievements that some would receive higher or lower percentages � if everyone were exemplary they would receive the 3.5%

MS: that�s right

HS: but if there was an exemplary employee at another store and someone who was not performing at the same level, the person with a high level of achievement could receive a 5% increase (even if they were performing at the same level as the exemplary employees in the other store)

JL: the regional director could make an exception.

HK: so there could be exceptions

MS: there were language pieces we had to go over.

BP: the probationary language will not be something that will hold this back, but I am not prepared to move on it yet.

MS: why don�t we just go through the language and see where we are and where we are not.

BP: 1.3 you were going to get back to us on payroll systems-

JL: we are prepared to do that

MS: the only other thing is the initiation fees and we are not prepared to move on that.

BP: I have a way around that � it matters to you.

MS: do we pay weekly or biweekly

JL: biweekly

MS: from each paycheck � is that all right?

BP: yes.

MS: managemen�s rights?

BP: the issue is the sub contraction and I am not sure that will change from our position.

MS: article 3 open on Paragraph B & E

BP: as we float these on the internet, these are proposals that make a lot of sense to people - as well as to people in the stores. The one that I got a lot of crap about was dropping the education piece � so those are still open.
Here is some new language on article 4- (see attached)

MS: is this in lieu of all of 4.4 C?

BP: this would replace all of this.
We deal with known overtime in 4.4B, so this would be in an emergency.

MS: I don�t like using the word overtime. I don�t want to argue over what emergency means, lets define it as daily over-time (as opposed to scheduled over-time). We are thinking the same here, we are really talking about a last minute need for overtime.

BP: if you are following BordersUnion.com, there has been a forum on hours being cut across the country. I am just trying to get something on the table.

MS: We need to clean up the language � and we had said and that the employer agrees (to working less the minimum � employee preference and employer agreement).
Changing the second sentence �in the event the employer doesn�t have hours available the least senior employee will be reduced in hours.

MS: on 4.7C I am really struggling with that one.
The question is once you�ve decided you�ve wanted it you request it. Once hours are there, they are there, unless hours need to be reduced.

BP: for example, when do you post the schedule?

MZ: when do you post the schedule � two weeks out
If there was an open shift on a Saturday that needed to be filled, you would just have it for that day.

BP: if a new person asks first �even though I was the senior person and I wanted it, I would get it.
Under our system would the same thing be accomplishable, by using the first come first serve system, by leaving a note or voicemail. I think that accomplishes the same thing without creating a new system.

MZ: We schedule based on what is in you file, you would need to let us know. We use availability forms, several times a year.

JL: if what you are saying is four people request more hours and you want the hours to go to the most senior, we don�t have a problem with that.

MS: we just want the onus to be on the employee to request more hours.

JL: the only other factor, that isn�t an issue in this store, is that if you had a caf�, the person would have to be able to do the job.

BP: Well, we�ll talk.
You currently use an availability form and you are willing to follow the hours by seniority.

JL: If we have the availability and there are working hours and they want more or less hours, they have to tell Maria. If there are four people who want more hours t

HK: I think we want a guarantee that that would happen.

JL: we aren�t saying that we can�t come to an agreement on language.
What we are talking about isn�t first come.

MS: we don�t want a less senior employee to be granted requested hours and then have a more senior employee take them.

JC: you mean you don�t want bumping �

MS: right. Article 5-

BP: where you have an incentive to hire more part-time people, then there is a greater need for hours protection for full-time. I have just marked it open in our book pending future discussions. The other economic features are critical

MS- Article 6 is the probationary piece..

BP: 6.2 this is one of those we will continue to disagree with.

MS: this is an area that is clearly subjective. If we have a three-month book seller with 10 years experience in a position and a 6 month book seller with no previous experience � we want to promote the 3 month person. You can grieve it under the grievance procedure and make us prove it.

BP: I hate arbitration with a passion. Here is a scenario a 2-year employee waiting to be full-time. Guy from Barnes and Nobel leaves to do something else, comes to work for you �

MS: He might be more entitled to, but we want the most qualified.
That is really all that is open in six. Let me through out a few concepts in six (maybe it�s four) but I threw them in 6. We discussed with you peoples concerns to get more hours based on seniority, as well as your concerns that they get laid off by seniority. We reduce and award hours across the board. Here is a supposal � another section, for temporary reductions of hours, for a duration of a couple of hours, we would follow a different procedure than permanent layoff, we would reduce part-time by seniority and then full-time by seniority.

BP: what you typically find out is that your long service employees are full-timers and your longer service people are full-time �

MS: that is not necessarily true in this store; we have some long service part-timers.

BP: we have this scenario in some of our contracts; we will talk about this conceptually. What we always do is talk about this conceptually.

MS: the other from our perspective. Hourly supervisors cannot be included in that scenario. They have opening and closing responsibilities. We would exempt the hourly supervisors. They would have super-seniority, because they are in a different classification. If we got rid of all the part-timers, then we would reassign the employees by inverse seniority to fill the scheduled shifts.

MS:
Insurance Total 2002 Cost: 166
493
541
Increases are based off of these costs and projected increases.

BP: What percentage of employees take stop options?

JL: Everyone

JE: Full-time

JE: Full-time

BP: if you want to put some language to together about short term-layoffs, we are interested in that. For example, in nursing home we have the ability to offer to give up hours to keep someone from being laid off.

MS: you could have a probationary Full-timer laid off after a long term part-timer.
In this store, if we have a FT probationary it is because the Part-timers don�t want to be full-timers.

BP: in 6.5 � We had talked about the person that goes up to supervisor, I think it works the way you suggested it. I thought what you had said �failure to return to the unit within 60 days after accepting a non-unit position�

And there are pieces of the proposal missing-

MS: that is because they are economic, or I have language to give you.
In an effort to resolve as much language as possible �
The dues and initiation � they are really stand alone �

BP: I can�t because I want to do this in conjunction with Anne Arbor-

MS: Well if you saw their proposal you would know that you are not.

BP: I haven�t seen their proposal, but I have heard of it. I do not want to make any decisions that make it more difficult for them to negotiate a contract.

MS: Here, their proposal is truly off the wall.

BP: sub-contract what was your answer � it is not an issue here but it is in other places.
If we get through everything else, some of it is not as relelvant to me.
I was always a fan of moodys book, An Injury to One is An Injury to All.
Probably not a big seller in your stores.

MS: Probably not now. Unsually when they come out, they are big sellers then they are put on the shelves.
(revisions of language for employers proposal from 1/17/03 distributed to union committee)
-In Article 7 what we have addressed is the language surrounding, not the actual days.
-Article 8 We do PTO on a plan year, not on a fiscal year. So in 8.3 you will see that explained. This is all current processes.

BP: you are proposing a black-out-

MS: if you are going to your sisters wedding we will probably say yes.
If you are going to your neighbors Christmas party we would say no.

BP: So part-timers don�t earn?

JL: No, part-timers don�t earn any personal time off

BP: So I work 34 hours and I don�t get any personal time off?
JC: You earn as you accrue?

MS: Yes.

JL: but you can take it in advance of your accrue. You would accrue at rate that would get you to eight hours.

JC: so you would have a negative balance show up on your check stub?

JL: yes and you would accrue up to that.
In your first year, you have a roll over because you can�t use any vacation for the first 6 months so we allow the employee to carry over until April.

BP: So the only way I can roll over my vacation is to get the approval from the regional director.

JL: generally the only time we do exceptions is when it is for a business reason, like a store remodel.

BP: so let me be clear, part-timers get nothing.

JL: no.

BP: no sick time. No vacation (personal) time. No holiday pay.

MS: no they get holiday pay, 4 hours.

MS: Section 9 - We should change inducted into the military service to enter; I just noticed that as I was sitting here.

BP: So let me clarify, your are only looking at those who qualify under FMLA-

MS: or ADA�

BP: 9.6 - from a clarification stand point you mean after 1 year, 1250 hours-
If I am reading this literally, it says an additional leave may be granted. It is not an automatic. I could potentially be fired.

MS: no it says we may grant you an extended leave if we choose.
12.6 should read stock option plan.

BP: Let�s just put it all on the table.

I have spent a lot of time reviewing the history of negotiations � if the goal is to have the company handbook and taking union dues, I have no interested in that. Paying union dues or percapita tax is not important. Having a contract I can ratify is. Look, we are trying to be creative and realistic here, but I have no interested in the company handbook. You make it too easy for me. When I say part-timers don�t get anything, and maybe you don�t care. We will put a spot light on these negotiations.
In looking at the things going around the country � in looking at the circuit city people, what can we do since commission sales just got taken away from us-
When people finally get angry and explode, it is our job to help it explode.
The employee group, the bus pass issue � I thought your comment was interesting, I think you said she was a little brusque � I can be an Ass-hole, I do this for a living. From what I know of Jim, at least from the e-mails he can be. When I say you make it easy for me, I don�t say that happily. I give you an example, the initial reaction from the attorney was to tell him to go to hell, and we will file charges �
I don�t need to run off to the board � Mark knows how to play the board as well as anyone.
I want it in the store, I want people to see that it is a benefit cut. The mix in the store has change, again, I do the math on everything. If the cost on your full-timer is the same as your cost on a part-timer -