Session 7

(These are the notes represent the discussions from the 02/20/03 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:
Jason Evans: worker
Simone Menier: worker
Holly Krig, 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

-Union Response to the Employer Proposals from 2/7/03
comments on the proposal as it is presented to the employer�..

BP: Have you brought us stuff?
You were going to bring us wage rates?

MZ: I sent it to you (JL & MS).

BP: Can you fax it to me?
Are you self-insured?
I have been sitting here looking at the numbers � are those actual costs?

JL: Yes.

JL: Yes, it is based on last years� utilization

BP: So what you are getting is adverse selection for single plus one and only those needing it are purchasing
I will give you responses to your proposals from last time-

MS: Starting with article 7?

BP: Yes �

7.1 Holding
7.2 Okay to the hours, but does the language preclude some on funeral leave?

MS: no, nor does it include jury duty leave � add, �Except bereavement leave or jury duty leave will disqualify an otherwise eligible employee from receiving holiday pay.�

BP:
7.3 We like our language
7.4Is this an economic item or are you saying no?

MS: We are saying no because we don�t do that nor do we wish to

BP:
Article 8
We prefer our proposal to yours, but we aren�t wedded to it. For us to look at your language, we need these things to happen:
1)Part-time need to be included in PTO and vacations
2)When an employee takes/uses a personal day there should be no point charged to them at any time.
3)Reduced black out dates, still allowing some employees to take vacation.
4)Any employee who quits or is termed is entitled to all vacation/PTO pay. (Even with probable cause or just termination - i.e. theft of a three-dollar magazine does not mean the employee should lose hundreds of dollars of [awarded] vacation benefits � as well as being terminated.
5)Employees who have remaining vacation shall not lose it, but they will be cashed out.

BP:
Article 9
9.1 Does this cover employees who are off and working for the Union in 9.2?

MS: does not apply to working for the union or for the government as in military service.

BP:
9.2 Modify to thirty (30) working days each calendar year

MS: so you don�t have a problem with 9.1 just 9.2?

BP: yes

JL: so we have a TA? (tentative agreement)

BP: yes

9.3 Add Employees who need additional time off (up to one week) without pay, may request and shall receive it (this language is added to funeral leave).

9.4 We can agree with the employer�s proposal if part-time employees are added back in � of course then we would need accompanying language that figured out how many hours.

9.6We prefer our language, yours is problematical because you exclude employees and the limit is 12 weeks

MS: you mean those that are exclude who haven�t yet qualified for FMLA.

BP: Some long term employees may never qualify for leave under FMLA because they don�t work enough hours per week.

JL: They would be able to request those leaves under personal leaves.

JC: no guarantee though.

JL: true

MS: Is there any question that our plan has better coverage?

BP: No I wouldn�t categorically agree to it
Better value is always in the eye of the beholder.
Is it a better value for employees�.

MS: Yours is a better value for employees because they don�t have to pay for it.

BP: First off on your plan he pays 700-

MS: To put the plans on equal footing � lets assume that the costs are the same (even if they are not) �

BP: ours includes dental, life, eye care, disability so they are not buying all those tack ons. So when we are talking about the value of the plan � I know that nobody in this store buys family coverage or single + one and there is a reason. In this there is always the question of who is buying what? The cost to the employer is 1.80/hour the value to the employees is .75 /hour. This is the reality of the economics. In the end, if no one can afford to buy the insurance � what value is it?

MS: people make choices. People in this store made choices. I don�t know if people in this store have families or domestic partners. If two people in a family are both eligible for insurance, if they are smart, they chose the one that�s better. People today make choices on insurance cost and with the co-pays throughout everywhere, employees are making those calculations.
If those two plans are on the shelf you don�t agree our plan is better? If you take out the cost of the plan.....

BP: If you compare just the amount for $307 � (cost to the employer) the employee gets family coverage, eye care, dental, life insurance�.

MS the total cost of what our employees have opted for is $166
(single coverage)� what we would be doing is subsidizing the people who chose family coverage and for those who chose the family coverage in your local. If we were to provide a benefit and purchase the coverage from you, where does the money go? The extra dollars would be going to subsidies other people in their plan?

BP: I am confused? How is this subsidizing others? Let�s say Holly gets married to someone with 10 kids- it is still $307. I�ll admit you guys are better than Wal-Mart - they have capped their major med at 35,000 per year. But these negotiations are still going to be about what workers are worth.

JL: you can�t try and negotiate a contract for Wal-Mart here. We are negotiating for our own store.

BP: No you are trying to give us the employee handbook
I didn�t go outside our jurisdiction just to organize 20 people. This campaign is about what workers are worth. And I will print it in every magazine and every newspaper �

JL: you�ve told us that before.

BP: Let�s finish this.
9.7Agreed
Article 12
12.1 We believe the health care plan offered by the Union is a far better value and will give everyone coverage in the store.
12.2 the Union plan is different than proposed.
12.3 unnecessary with Union insurance
12.4 employer pays all costs
12.5 okay � TA 10:06
12.6 okay � TA 10:06
12.7 We believe having the Bus Pass Purchase Plan as proposed by the Union to be valuable for both company and the employee.

MS: let me just ask last week we discussed the implementation of the wage and healthcare changes subject to changes we make here.

BP: Yes that is fine.

MS: here is some new language to consider-
Unlike a lay off � this is where you are coming back to work-

New 6.6
Temporary Reduction in Hours (anticipated duration of less than thirteen weeks).

(a)If the employer determines that the number of scheduled-employee hours are to be reduced, the reduction in hours shall occur in the following order:
1.No contingent employees shall be scheduled.
2.No temporary/seasonal employees shall be scheduled.
3.Part-time employees in inverse order of seniority.
4.Full-time employees in inverse order of seniority.
(b)Hourly supervisors shall not be impacted by hour reductions unless the employer determines that it needs fewer hourly supervisors. In such event, the hourly supervisors shall have their hours reduced in inverse order of seniority.
(c)In the event of hour reductions, the parties recognize that schedules of more senior employees may have to be modified in order to provide store coverage. Scheduled changes will be determined in inverse order of seniority. Employees affected may trade shifts with other employees provided they follow the shift-trading procedures described in Article 4.5.
(d)Notwithstanding the provision of 6.6 (a), (b) and (c), in the event of a temporary reduction in hours of one week or less, the store manager shall accomplish the reduction in the most practicable manner.

Response to Union�s Proposal

4.4 C. If the Employer has a last-minute need for overtime, the Employer shall first solicit volunteers from employees currently at the store. If no one volunteers, the Employer may assign the least senior employee to stay. The Employer will be cognizant of an employee�s other obligations.

4.7 B. Part-time employees shall normally be assigned a schedule of a minimum of 12 hours per week unless they request fewer hours and the Employer agrees. In the event the Employer does not have sufficient hours available, the least senior part-time employee will be reduced in hours and the remaining employees may be reassigned to other schedules to meet the store�s needs. (FOR DISCUSSION PURPOSES ONLY).

Break-

BP: I think we should involve the Federal Mediators in this process.

MS: let�s pick some dates and then we will see when she (the mediator) is available.

BP: all right �
We talked, we can agree to the 7.2 with the added language.
And the new language you gave with the two sections, we think it looks good but we don�t want to make a decision until the rest of the workers have a chance to look at it.

MS: I will start with your five points on article 8
Our part-timers are part-timers because they choose to be and we are not in a position to offer them (these benefits).
We provide a comprehensive package to our full-timers - if the part-timers want the benefits, they can be full time. Each store matches payroll hours to staff. Part-timers don�t choose to work all of the hours the store is open.

(re: missing work) We understand that there are things outside the employee�s control. The fact that you are being paid for the day doesn�t take away the inconvenience for the employer.

(re: vacations) We do consider and we will continue to consider the employees exceptional needs during the black out period and we will try to accommodate. All of the staff in the store know that the last 6 weeks in the store are important (for sales). We have a small staff in the store - that is not something we can agree to.

You can cross off �or is discharged for any reason other than dishonesty� � (on 8.3)

We do want people to take their vacation. The managers in the store monitor vacation and tell employees they better use it or loss it. People haven�t lost vacation. Employees monitor this fairly closely.

9.2 we will modify our response and max 10 cumulative days for union leave � we don�t feel it is our responsibility to provide a labor pool for the union.

9.4 we are not going to agree, 9.6 we are holding to our positions.
12.1 we think our plan is superior plan benefit wise and is cheaper for our store � even though it is single coverage.
12.7 (re: bus passes) we feel it is the employee�s responsibility to get to work. It is not up to us.

Are we done?

BP: Yes.