Borders Negotiations April 18, 2003

Session 9

(These are the notes represent the discussions from the 4/18/03 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

note - 4 employees at the uptown store did not receive the 3.5% increase do apparently to the company�s �milestone� program, not previously given to the Union.

MS: before we start talking about the language there is one issue I�d like to bring up.
Every year we evaluate the market for a starting wage adjustment. Your store if we agree to implement it, and I don�t see why we
Your store would increase a quarter at the starting rate.
People making over $.28 over the milestone would not get an increase.
9 employees would get a quarter, one would get .01
The other employees are already more than .28 over
JE how does it affect the overall payroll in the store.

MS: The budgets have to go up to accommodate this.
.01 � A.J 8.02 � 8.03 is .28 over the new top. 7/2/02 rehire from �98

BP: milestone doesn�t apply to rehire?

If someone is rehired the manager can hire them at regular rate or give them a milestone rate.
9 employees Eligible for up to .25 increase
(up to a wage that is .28 over the new top or 8.03):
L.S., D.B., S.M., J.M., S.P., T.Q., M.S., K.H., & J.E.

BP: What year was it last done?
Typically do the entire market?

JL: This is a market that was put up last year but didn�t get it?

BP: Was it all seven stores?

MS: Coon Rapids not getting it.

BP: Done every year?

JL: Within a month either way.
We wanted to make sure it comes after the evaluation process

BP: We want to make sure you implement it, we don�t want to see anyone to go without raises

DS: When is the date it is effective?

JL: Roughly the beginning of May.

MS: 7.25 new start 7.75 top of the new milestone

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Union�s April 18, 2003 �Items Open for Borders Negotiations�

1.Article 1, Section 1.3: The Union wants initiation fees deducted.

2.Article 2: The Union wants the word subcontract removed.

3.Article 3B: The Union wants the language regarding the Employee Empowerment Committee in the contract.

4.Article 3E: The Union believes the community service day is important to repair the stores� reputation and wants this clause in the contract.

5.Article 4, Section 4.1: Wages. Union will present a wage proposal.

6.Article, Section 4.2: The Union wants the language originally proposed to be in the contract on credit for experience.
(MS: We are agreeable if the employee is re-hired within 90 days.)
(BP: What I am hearing is discretion at hiring rate � regardless of their outside experience, what we want is for Borders employees to have credit for their past experience at Borders).
7.Article 4, Section 4.3: The Union wants the language as originally proposed.

8.Article 4, Section 4.4 A: This section must include overtime after eight (8) hours in a day.
(Tentative Agreement)

9.Article 4, Section 4.4 C: The Union can accept this language if the word cognizant is changed to respect.

10.Article 4, Section 4.7 C: The Union wants known available hours posted so workers can request them, and awarded by seniority.
(BP: these are hours open because of vacations, or someone quits, etc.)

11.Article 5, Section 5.6: The Union proposes that no less than two thirds (2/3) of the stores hours shall be full-time. Example 600 hours in the store = 400 hours full-time, 200 hours part-time. There may be one contingent employee for every five part-time employees.
(BP: This is newly proposed language)

12.Article 6, Section 6.2: The Union wants the language as proposed in the original contract, with the exemption of hourly supervisors.

13.Article 6, Section 6.6: The Union can agree to this.
(T.A.�d 4/18/03)

14.Article 7, Section 7.1: The Union�s proposal for ten (10) holidays is still on the table and a guarantee no employees will be forced to work on Thanksgiving and Christmas Day.

15.Article 7, Section 7.3: The Union will modify this proposal to: No employee shall have to work more than half the holidays listed in Section 7.1.
(BP: ask for volunteers first)
(MS: if we didn�t have a volunteer we could schedule someone who would not have worked 4?)
(BP: yes)

16.Article 7, Section 7.4: The Union will drop this proposal.

17.Article 8, Section 8.1: The Union agrees to unbundle the P.T.O. as proposed.

18.Article 8, Section 8.3: The Union wants to see the employers proposal on Personal/Sick days. It must include part-time employees on a pro-rata basis to be acceptable. Once we have seen the offer, we will respond to additional items.

19.Article 8, Section 8.6: The Union wants to see the employers proposal on vacation. It must include part-time employees earning vacation on a pro-rata basis. Employees shall not lose vacation time, and will work with the store manager to insure they get it.

20.Article 9, Section 9.2: The Union can live with the blackout dates from November 15 thru December 31, but must have the ability to use a member for twenty work days per year, not restrictions other than the Christmas blackout dates. The Union agrees to give the employer 30 days notice.

21.Article 9, Section 9.3: The Union can agree with an understanding a personal leave as provided in 9.1 maybe necessary in the death of a loved one.
(MS: that is the understanding)
(BP: then the Union can agree to this)
(T.A.�d 4/18/03)

22.Article 9, Section 9.4: The Union can agree if part time are added back in.

23.Article 9, Section 9.6: The Union wants the language proposed in the (original union proposed) contract regarding medical leaves of absence.

24.Article 11: The Union�s proposal on health care is more beneficial to the workers and so we continue to propose money to the grocery plan (full time and part time).

25.Article 16, Section 16.2: We propose the effective date of the agreement to be the date of ratification thru June 1, 2005.

26.Wages:

June 1, 2003 June 1, 2004
Hire $9.33 $9.50
6 months 9.53 9.70
12 months 9.73 9.90
18 months 9.93 10.10
24 months 10.13 10.30
30 months 10.33 10.50
36 months 10.53 10.70
42 months 10.73 10.90
48 months 10.93 11.10
54 months 11.13 11.30
60 months 11.33 11.50
Over scale 0.40

Hourly Supervisor premium:
(keep at current)

SPT/Additional responsibility pay:
(keep at current)

Sunday premium: $0.25/hr

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BP: from my perspective I tried to give you my opinion of where this needs to go. I assume that by the time of the next meeting, you�ll come with your proposal � rather than waste time I would like to see the package come back in response. I don�t see areas where we are going to move. If you are convinced that you can�t move.

MS: As we went through it there is a handful of items I see simple middle ground. Others not at all.

BP: Well, this meeting, next meeting and then we will vote.

-lunch break-

MS: Effective date is April 28th show up on the paycheck 5/16

Nest meeting 5/16/03