Negotiation Update

Negotiations resumed this week in San Francisco. On June 16th and 17th the Teamsters Negotiating Team once again met with Company officials to continue discussions on non-economic items. Grievance Procedure Day 1 of the talks focused heavily on the grievance procedure, the Union feeling strongly that the system needs to be overhauled to encourage grievances to be settled at the lowest possible level. To get a sense of the direction the Union would like to take in re-shaping the grievance procedure process, the Union's Opening Non-Economic Proposal is available for viewing at: www.IBTUALNegotiations.com Discussion on the grievance procedure issue will continue when the parties reconvene in mid-July. Layoff and Recall The second day of negotiations centered on the Union's new Layoff and Recall proposal. The Company had a number of questions aimed at clarifying the portion of the Union's proposal that allows greater flexibility in the exercise of seniority in times of layoffs. You can read the language of the new Layoff and Recall Article proposed by the Union starting on page 81 of the Union's Opening Non-Economic Proposal posted on the Web at: www.IBTUALNegotiations.com