OFS Bargaining Report #4

OFS Bargaining Report – Day 4

Bargaining for Day 4 opened at 10:15AM.  The Company introduced David Reid, Actuary and Subject Matter Expert on Pensions for the Company.  He is attending to speak on the impact of Health Care costs to the Company.

Bill Bates officially advised the Company that the Union was rejecting the Company's proposal on Retiree Health Care.

The Company countered to three of the five proposals the Union passed earlier in the week.

For Article 3 – Defined Terms, the Company rejected the Union's proposal to include a Day in Lieu of Saturday and Sunday for Con-Ops, saying it added costs to the business – even though the only group of employees who currently do not get double time pay for work on Sunday or Day in Lieu of Sunday are Con-Op employees.  Apparently the Company doesn't consider the fact that all other employees are guaranteed double time on Sunday or Day in Lieu of Sunday except Con-Ops.  Substantial discussions pursued around the denial of Day in Lieu of.

The Company accepted the Union's proposal to include "Just Cause" condition language under the definition for termination.

The Company changed some language proposed by the Union on Article 4 – Union Representation, but rejected the Union's demand for language that Stewards not be "unreasonably denied time off the job to conduct Union business".

On counter to Article 7 – Arbitration, the Company rejected the Union's demand that retroactive pay go back 12 months rather than 6 months from time of arbitration for employees wrongly paid in certain Job Occupations.  The Company rejected the Union's proposal to remove what the Union considers an unnecessary paragraph in the Arbitration Article, but did make some adjustments to the paragraph in an attempt to address the Union's concerns with the paragraph.

The Union advised the Company they would take the Company's counters under serious advisement and would respond.

The Bargaining Teams broke at 11:00AM and returned to the table at 3:00PM.

The Company opened the afternoon session with a short presentation on their concerns with Retiree Health Care costs' impact on the business.

The Company passed a second proposal for Retiree Health Care.

The Company is moving in the right direction on the proposal with reduced premium costs to Retirees.  First year costs of premiums would be 70% for Retirees and 30% for the Company; it would increase to 80% Retiree, 20% Company the second year and 90% Retiree, 10% Company the third year.  The average monthly premium cost to Retirees would still be around $725, an approximate average reduction in cost of about $300 from their first proposal.

The Union appreciates the Company's efforts to try to move in the right direction on their proposal, but we are still quite disappointed with the high premium costs they expect our Retirees to pay.  Our concern is that fixed income Retirees will have to make choices between food, housing and health care purchases.

The Union will be working on several proposals to submit to the Company throughout the evening, and tomorrow's session times will be determined in the morning.  Clem Johnson will be contacting Bill in the morning regarding meeting times for tomorrow.