OFS Bargaining Report #11

OFS Bargaining Report – Day 10

Bargaining for Day 10 opened at 11:10AM.

The Union passed their counter to Article 16 – Force Adjustment Protection and Article 24 – Shutdown Scheduling.  Bill Bates reminded the Company that the Union was passing Article 16 and Article 24 as a packaged proposal, as we did the first time the Union put those Articles on the table.

The Union advised the Company that their counter to Article 16, assaulting our Members on Wage Protection Allowances (WPA) by cutting them further beyond what was cut three (3) years ago, is nothing but an insult to the Union and our Members.  Three (3) years ago our Members took severe hits in an effort to assist the Company through their financial crisis, and now the Company proposes to take advantage of our Members' good faith efforts by making outrageous demands on them.  The Union advised the Company that the Union cannot accept the Company's proposal to further cut WPA's or to eliminate "Lack of Work" downgrades from WPA protection.  In addition, the Union advised the Company that we would not go any lower on WPA's than our first proposal, and the first proposal did not even include any increases to WPA's but rather kept them at current levels.

The Union also advised the Company that, in our counter, we again put the Short Timing rate for Members with fifteen (15) years or more from the current 75% to 85%.  We advised the Company that we were trying to be reasonable in our demand and we didn't propose raising the other rates, but we do believe employees who give at least fifteen (15) years to the Company should be recognized for their efforts.

The Company will take the Union's counter under advisement.

The Union next presented their counter to proposal Article 24 – Shutdown Scheduling.  We advised the Company we did recognize some of their concerns about our initial proposal to strike the entire article and tried to address some of their concerns.  The Union did reduce the number of scheduled shutdowns the Company can call in a calendar year from four (4) weeks to two (2).  The Union also wants all other "unscheduled" shutdowns to be done on a voluntary basis in which our Members could opt to take the time as vacation, excused workdays or unpaid time.  Or they could opt not to participate in the shutdown and be reassigned to another job function within their Production Occupation for the duration of the shutdown.  And, most importantly, the Union advised the Company we are staying firm on our position that the Company not be able to force any Member to use their vacation on any shutdowns.

The Company took the Union's counter under advisement.

The Company then presented their counter to Article 5 – Union-Management Relations.  The Union advised the Company that they were moving in the right direction with their counter, but still have not quite reached a comfort point for the Union.  There is still language the Union needs in the proposal in order for us to feel comfortable with the final proposal.  Bill advised the Company that we would take their counter under advisement and would certainly respond.

The Company then presented their proposal for Defined Pension Plan.  The Company's proposal will not impact current retirees but will have an impact on current Members and future employees.

The Company proposes freezing current pensions at their current level and replacing the Pension Plan with a Cash Balance Account.  Under the Company's proposal, whatever the value of a Members' pension is today would not change and that amount would be payable at their retirement.  The Cash Balance plan would be based on 3% of a Member's annual wage, put into a Trust Account, and would be payable at the time of retirement.  Current Members vested in the Pension Plan would receive a combined payment of the Pension Plan amount and their Cash Balance Plan amount at retirement.  The Cash Balance Plan would also allow Members leaving the Company prior to retirement to immediately cash out their Cash Balance Account upon exiting.  The Company spent a significant amount of time explaining the proposed plan changes to the Union, and there is certainly a lot of information to review regarding the Company's proposal.  Bill advised the Company that the Union would be closely scrutinizing the Company's proposal and would follow up with the Company next week with questions, comments and possible information requests in regard to their proposal.

The Company again reminded the Union they would make themselves available to meet during the weekend should the Union desire to schedule meetings.

The next meeting will be Monday, May 22, 2006 – start time to be determined.

Meeting adjourned at 1:30PM.