STATE OF WASHINGTON

MARINE EMPLOYEES’ COMMISSION

Evergreen Plaza Building

P.O. Box 40902

Olympia, Washington 98504-0902

(360) 586-6354

www.marineempcom.org

Friday, September 28, 2007 – 10:00 a.m.

Rainier Conference Room, Washington State Ferries Building—Seattle

MINUTES

Present: Members and staff - John Swanson, Chairman

John Sullivan, Commissioner

Linda Hoverter, Special Assistant

Kathy Marshall, Administrator

Others - Scott Braymer, Operation Watch Supervisors

Dennis Conklin, Inlandboatmen’s Union

Rod Falor, Arbitrator

Paul Ganalon, Washington State Ferries

Shannon Halme, Office and Professional Employees International Union Local 8

Kendra Harrison, Milliman, Inc.

Brad Killman, OFM Labor Relations Office

Karol Kingery, Marine Engineers Beneficial Association

Larry Knapp, Boilermakers

Yvonne Poe, Department of Personnel

Cary Randow, Department of Personnel

David Slown, Assistant Attorney General, Washington State Ferries

The meeting was called to order at 10:08 a.m.

Moved, seconded and carried: to adopt the agenda distributed at the meeting.

Salary Survey Update with Milliman and DOP

Cary Randow gave an update on the 2008 salary survey progress. Milliman is ready to commence the survey and it will be done entirely on-line. The Canadian benefit data is being done by Cary. He will research and compile the Canadian data using Milliman’s Northwest Benefits Survey and sources in Canada.

The survey is beginning 3 weeks late due to personnel changes in the State Compensation Unit. All survey data is to be received, analyzed, and reviewed by December 31. Drafts will be distributed for public review in January and February. Cary anticipates formal approval at the MEC’s March 28, 2008 public meeting.

STATUS OF CASES

MEC Case No. 5-05

IBU v. WSF (ULP) - Unfair labor practice complaint filed 7/21/04. IBU charges WSF with interference, refusal to bargain. Specifically, IBU alleges WSF made unilateral changes by implementing a new Maritime Security Transportation Plan. The parties reached a tentative agreement during the settlement conference on 10/18/04. IBU will keep MEC advised; parties are discussing the issue. A hearing was scheduled for this case on 1/20/05; however, Examiner Ford had a conflict on that date. The 1/20/05 hearing has been cancelled. If necessary, MEC will reschedule the hearing. On 1/6/05, WSF filed its Answer to the complaint. On 2/25/05, Jay Ubelhart reported that other pressing issues have kept the parties from getting back to this issue. On 4/22/05, Jay Ubelhart reported that contract negotiations have addressed some issues related to this case. On 6/24/05, IBU and WSF reported they are continuing efforts to resolve this matter. On 8/4/05, the parties participated in a second settlement conference with Chairman Swanson. IBU agreed to submit a list of alleged changes to the security to WSF; the parties will attempt to bargain those issues. On 1/27/06, Dennis Conklin, IBU, stated he will follow-up on this issue. During the 3/31/06 MEC meeting, Dennis Conklin reported that IBU has not had time to prepare the above list. On 4/28/06, AAG Slown reported he has not yet received anything. During the 5/19 MEC meeting, IBU stated it will get back to this issue as time allows. As of 7/28/06, contract negotiations have precluded getting back to resolving this issue. On 9/29/06, Margaret Pelland stated she would check on the status. On 4/27/07, Dennis Conklin stated he would follow-up on the status of this case. On 5/18/07, Dennis indicated he was still reviewing this case. On 9/28/07, Dennis reported the parties are discussing the issue.

MEC Case No. 15-05

IBU v. WSF - Unfair labor practice complaint filed 10/4/04. IBU charges WSF with interference, refusal to bargain. Specifically, IBU alleges WSF made a unilateral change in working conditions when they changed the application of Section 19 Rule 2 (alcohol or illegal drug use) in the Code of Conduct. On 10/21/04, the Commission wrote to IBU asking it to clarify the basis for the charge or withdraw it and refile as a grievance. MEC received a response from IBU counsel 11/19/04, indicating a grievance had been filed as well (none was filed with MEC). On 3/18/05, MEC issued an Order to Show Cause. On 3/28/05, IBU responded to the Order. IBU reasserted its position that the alleged violation constitutes an unfair labor practice and asked that it be processed as such. Upon further review, the Commission has determined that the facts alleged may constitute an unfair labor practice if later found to be true and provable. On 5/25/05, the parties participated in a settlement conference. IBU is reviewing the matter. On 6/24/05 and 8/26/05, IBU reported this matter close to being resolved. On 1/27/06, AAG Slown stated he would check on this issue and get back to the IBU. During the 2/24/06 MEC meeting, AAG Slown reported that this matter is not resolved yet. On 3/31/06, the parties stated they will discuss this further. On 5/19/06, AAG Slown stated the parties have spoken briefly, but need to discuss further. As of 6/28/06, counsel are discussing. On 12/8/06, AAG Slown stated he would follow-up. On 3/23/07, Dennis Conklin reported that this matter is resolved. By letter on 9/14/07, IBU withdrew the complaint. Case is to be closed.

MEC Case No. 17-05

MEC Case No. 39-05

IBU v. WSF — Grievance filed on 3/28/05 in which IBU alleges that on or about September 19, 2004, WSF changed the tie-up slip on the Anacortes #4 vessel from Friday Harbor to Anacortes and failed to properly pay crew members. Commissioner Swanson has been assigned as arbitrator. On 6/9/05, the parties met for a settlement conference with Commissioner Ford. WSF stated that an arbitrator’s decision (in favor of the union), recently issued in an MM&P case concerning this matter. WSF needed time to consider the MM&P award. On 7/14/05, the parties participated in a second settlement conference with Commissioner Ford. The matter is not yet resolved. On 10/28/05, AAG Slown reported that the clarification of the arbitrator’s award in the MM&P case has issued; the MM&P matter is fully resolved. The IBU and WSF are still discussing this case. A hearing was set for 3/8/06. On 2/24/06, AAG Slown stated he is optimistic about the parties resolving this matter; efforts are continuing. On 3/1/06, AAG Slown requested a continuance of the 3/8 hearing, due to an unexpected family issue. IBU agreed. AAG Slown also outlined a settlement offer, which IBU is considering. Arbitrator Swanson granted WSF’s request. The 3/8/06 hearing has been cancelled. MEC will contact the parties to reschedule, if necessary. As of 3/31/06, an offer is being considered. On 5/19/06, IBU requested a hearing be scheduled. The hearing has been continued to 10/25/06. On 10/24/06, IBU requested the 10/25 hearing be continued because of confusion over who was handling the case. Arbitrator Swanson granted the request, cancelling the 10/25/06 hearing. The hearing will be rescheduled when IBU proposes alternative dates agreeable to both parties. IBU has indicated they are considering a WSF proposal. On 12/8/06, the parties reported that WSF is compiling a list of affected employees for IBU, after which they will continue efforts to resolve. On 1/9/07, IBU requested another settlement conference with Mediator Ford. The settlement conference has been scheduled for 3/2/07. On 2/23/07, AAG Slown provided IBU with the requested information. The parties were unable to resolve this matter during the conference on 3/2/07. On 7/6/07, AAG Slown filed a Motion for Continuance. WSF requested the 7/12 hearing be continued because two key witnesses were not available. The IBU opposed the Motion. Arbitrator Swanson granted the request for continuance. Arbitrator Swanson convened the hearing on 8/6/07. The Arbitrator granted WSF’s request for a continuance. A second day of hearing was convened on 9/26/07. Transcript is due by 10/26/07. Briefs are to be simultaneously mailed on 11/30/07.

MEC Case No. 44-05

IBU v. WSF–Unfair labor practice complaint filed 5/9/05 in which IBU charges WSF with interference, discouraging union membership, and refusal to bargain. Specifically, IBU alleges WSF unilaterally changed the terms and conditions of employment by implementing a new pre-disciplinary procedure. Commissioner Swanson has been assigned as mediator. The parties participated in a settlement conference on 6/27/05; IBU needed more information. During a second settlement conference with Chairman Swanson on 8/4/05, the parties reached a tentative agreement. On 1/27/06, the parties indicated they believe this matter has been settled. On 3/31/06, the parties stated they would check the status of this issue and advise MEC. On 5/19/06, Margaret Pelland stated she would verify whether or not the disciplinary letters have been removed and advise MEC. As of 7/28/06, IBU had not received confirmation. On 9/29/06, Margaret Pelland indicated she would check on the status. On 2/23/07, John Dryer, LRO, reported he believes this matter to be resolved; he expects to be able to confirm after the parties meet next week. On 3/23/07, John Dryer reported he will sent verification to IBU, which should resolve this issue. On 4/27/07, John Dryer reported that he has spoken to Margaret Pelland, but needs to put the information in writing. On 8/29/07, AAG Slown reported John Dryer sent a letter to Margaret Pelland confirming all the letters have been removed. By letter on 9/14/07, IBU withdrew this complaint. Case is to be closed.

MEC Case No. 15-06

IBU v. WSF—Grievance filed 12/22/05 in which IBU alleges WSF assigned non-bargaining unit work to Kingston’s A watch. The parties were unable to reach agreement during the 3/24/06 settlement conference. Due to a schedule conflict, Arbitrator Ford cancelled the 6/5/06 hearing. On 7/19/06, the parties requested the 7/26/06 hearing be cancelled in order to use that date for continued interest arbitration. The 7/26 hearing has been cancelled. The hearing was continued to 12/19/06. On 12/18/06, IBU Counsel requested the hearing be cancelled. He indicated the parties are finalizing a settlement. On 12/20/06, AAG Slown delivered a copy of the parties’ Interim Settlement Agreement to the MEC. IBU and WSF have agreed to postpone further action on this case until resolution of bargaining on the effects of galley closures, which may affect Case 15-06 and is scheduled to commence early in 2007. As of 3/23/07, the parties are still discussing. On 9/28/07, AAG Slown reported he and MEBA Counsel Mike McCarthy are drafting language for an agreement on the galley closure issue, which may resolve Case 15-06 as well.

MEC Case No. 19-06

IBU v. WSF —Unfair labor practice complaint filed 1/27/06 in which IBU charges WSF with interference, domination, discouraging union membership, and refusal to bargain: 1) selective implementation of 01-03 collective bargaining agreement-LWOP; and 2) failure to abide by MEC Case 2-06 settlement. On 5/30/06, IBU requested expedited handling. On 6/26/06, the parties participated in a settlement conference with Mediator Ford. They made real progress, but another settlement conference is needed. The parties participated in a second settlement conference on 7/27/06. IBU and WSF agreed to hold a third settlement conference and to cancel the 9/20/06 hearing date. The 9/20/06 hearing has been cancelled. During a third settlement conference on 10/30/06, IBU and WSF settled this matter. The parties agreed that MEC would retain jurisdiction through the first pay period of January 2007. During the 2/23/07 MEC meeting, John Dryer reported that retroactive vacation awards have not been paid to those who have separated from WSF through resignation or retirement due to delays caused by the new HRMS payroll system. WSF is working to comply with the agreement. On 3/23/07, IBU reported that retirees have received their checks. There are questions about some of those amounts. On 4/27/07, John Dryer asked Dennis Conklin to provide a list of employees with reported errors in their checks. On 7/2707, John Dryer reported that WSF’s payroll department will be sending out a notice to each employee explaining how their pay was calculated. During the 8/29/07 meeting, AAG Slown confirmed this has occurred. On 9/28/07, Dennis Conklin reported the parties plan to meet on 10/2/07 to discuss pay calculations, after which they will analyze reported paycheck errors.

MEC Case No. 29-06

OPEIU v. WSF (Bayless) —Grievance mediation request filed 6/26/06 in which OPEIU alleges WSF violated Article 6 of the collective bargaining agreement. Specifically OPEIU alleges Carol Bayless’ application was not considered nor was she notified of the status of her application. On 10/31/06, Chairman Swanson conducted settlement conferences on 10/31/06 and 1/30/07. The parties are making progress. WSF is drafting settlement language for OPEIU’s review. On 4/27/07, AAG David Slown reported that he OPEIU is reviewing a proposed settlement agreement from WSF. On 9/17/07, Shannon Halme, OPEIU, withdrew this matter. Case is to be closed.

MEC Case No. 7-07 (Consolidated with MEC 20-07)

IBU v. WSF—Unfair labor practice complaint filed 10/27/06 in which IBU charges WSF with interference and refusal to bargain. Specifically IBU charges WSF with unilateral change in the respirator/facial hair policy. Following review, the Commission determined that the facts alleged in the complaint may constitute an unfair labor practice if later found to be true and provable. On 1/24/07, the Commission ordered Case 14-07 consolidated with this matter for settlement conference and hearing. On 2/16/07, the parties participated in a settlement conference with Commissioner Ford. The consolidated cases were resolved except for a single issue to be decided in grievance arbitration under Case 7-07. Case 14-07 has been withdrawn and will be closed. On 2/28/07, IBU requested the 3/8 hearing for Case 7-07 be continued, due to Margaret Pelland’s unavailability. AAG Slown did not object. Arbitrator Swanson granted the request. The 3/8/07 hearing date was cancelled. On 4/3/07, IBU requested that the 5/17 hearing date for this case be switched with the 5/3 hearing date in the Gill grievance, #16-07, because Mr. Berryman is not available on 5/17. AAG Slown did not object to the rescheduling. Arbitrator Swanson granted the request. On 5/3/07, Arbitrator Swanson conducted one day of hearing. WSF requested a continuance to provide additional witness testimony which would not be available for a few weeks. A second hearing date is to be scheduled. On 5/11/07, MEC consolidated this matter with IBU’s complaint, 20-07, for hearing. On 5/29/07, MEC received the transcript from the one day of hearing in Case 7-07. Arbitrator Swanson conducted two more days of hearing—9/6 and 9/17/07. Transcript from the final day of hearing is due by 10/15/07. Briefs are to be simultaneously mailed on 11/16/07.

MEC Case No. 12-07

IBU v. WSF (Perry)—Grievance filed 12/26/06 in which IBU alleges Linda Perry was unfairly demoted. Specifically IBU alleges WSF demoted Linda Perry from the quartermaster position on the Fauntleroy-Vashon C watch and replaced her with a less senior ablebodied seaman. On 3/5/07 the parties met for a settlement conference. This matter is tied to Case 23-06; the decision in that case should resolve this matter. On 3/28/07, IBU requested and was granted a postponement of the 4/12 hearing because a key witness is not available. A hearing will be rescheduled after the decision in Case 23-06 issues, if Case 12-07 is not resolved by that ruling. On 5/18/07, the parties reported that this matter was not resolved. On 7/23/07, the parties participated in a settlement conference; they are still discussing the issue. On 8/29/07, AAG Slown reported that WSF has sent proposed language to IBU. WSF has not received a response yet. A hearing remains scheduled for 10/3/07.

MEC Case No. 16-07

IBU v. WSF (Gill)—Grievance filed 1/29/07 in which IBU alleges violation of Rule 25.02, Rule 4.01, Rule 16, Rule 30.07, and Rule 30.10 regarding fitness for duty. Specifically IBU alleges WSF did not willingly return Pamela Gill to work on vessel, even though she was medically cleared by a WSF physician. The parties were unable to resolve this matter during the 2/28/07 settlement conference. On 4/3/07, IBU requested that the 5/3 hearing date for this case be switched with the 5/17 hearing date in the Berryman ULP, #7-07, because Mr. Berryman is not available on 5/17. AAG Slown did not object to the rescheduling. Arbitrator Swanson granted the request. On 5/15/07, WSF requested a continuance of the 5/17 hearing. The parties intend to pursue settlement discussions following additional medical evaluation. IBU counsel did not object to the request. The 5/17 hearing was cancelled. On 5/18/07, the parties reported that they were looking for another doctor to perform the evaluation. That second evaluation was completed by early July. At IBU’s request, the hearing has been rescheduled for 10/18/07.

MEC Case No. 19-07

OPEIU v. WSF—Unfair labor practice complaint filed 3/21/07 in which OPEIU charges WSF with interference and discouraging union membership. Specifically OPEIU charges WSF with assignment of OPEIU dispatch and crew dispatch coordinator duties to non-bargaining unit personnel. During the 8/8/07 settlement conference, the parties reached agreement. The signed settlement includes OPEIU’s withdrawal of the complaint. The 9/11/07 hearing has been cancelled. On 9/10/07, MEC entered Order Closing Settled Complaint, Dec. No. 526-MEC.

MEC Case No. 20-07 (Consolidated with Case 7-07)

IBU v. WSF—Unfair labor practice complaint filed 3/28/07 in which IBU charges WSF with interference and refusal to bargain. Specifically IBU charges WSF with failure to comply with settlement agreement reached in cases 7-07 and 14-07 on respirator policy. Following review, the Commission determined that the facts alleged may constitute an unfair labor practice, if later found to be true and provable. On 5/11/07, MEC consolidated this matter with IBU’s grievance, Case 7-07, for hearing. On 5/29/07, MEC received the transcript from the one day of hearing in Case 7-07. The consolidated hearing for Cases 7-07 and 20-07 has been continued to 9/6 and 9/17/07. Arbitrator Swanson conducted two more days of hearing—9/6 and 9/17/07. Transcript from the final day of hearing is due by 10/15/07. Briefs are to be simultaneously mailed on 11/16/07.

MEC Case No. 22-07

IBU v. WSF (Brickley)—Grievance filed 4/20/07 in which IBU alleges WSF unjustly removed him from his AB position based upon respirator use restriction from the Health Force doctor. The parties were unable to resolve this matter during the 6/5/07 settlement conference. On 7/13/07, WSF requested the 7/19/07 hearing be continued because the Work Force doctor who is the key WSF witness is out of the country. AAG Slown contacted IBU Counsel; IBU did not oppose a continuance. Arbitrator Ford granted WSF’s request. The 7/19 hearing was cancelled. The hearing has been rescheduled for 11/9/07.

MEC Case No. 23-07

IBU v. WSF (Johnston et al.)—Grievance filed 4/20/07 in which IBU alleges WSF incorrectly applied rules governing insurance benefits eligibility. On 7/23/07, the parties participated in a settlement conference; they are still discussing the issue. On 8/17/07, the parties jointly requested the 8/22 hearing date be converted to a second settlement conference. Arbitrator Sullivan granted the request. On 8/22/07, the parties continued settlement discussions without the assistance of the mediator; Chairman Swanson was not available that day. Progress was made. IBU is considering WSF’s offer.

MEC Case No. 25-07

Michael Zuvela v. WSF—Grievance filed 6/12/07 in which Mr. Zuvela alleges WSF denied him retroactive payments and benefits pertaining to the 2001-03 and 2003-05 collective bargaining agreements. On 7/13/07 MEC issued an Order to Show cause. On 7/27/07, grievant’s counsel filed a response to the Order to Show Cause. WSF filed a reply on 7/31/07. On 8/30/07, the Commission requested additional information from the parties. On 9/10/07, MEC received a copy of the requested agreement from Stephen Connor, counsel for grievant. On 9/13/07, MEC received a copy of the requested signed agreement from AAG Slown.

MEC Case No. 26-07

IBU v. WSF (May)—Grievance filed 6/15/07 in which IBU alleges WSF violated the collective bargaining agreement when it bypassed Deanne May for a 10-hour selling shift and for overtime. During the 8/3/07 settlement conference, the parties reached agreement. The 10/12/07 hearing has been cancelled. On 8/30/07, MEC entered Order Closing Settled Grievance, Dec. No. 525-MEC.

MEC Case No. 1-08

OPEIU v. WSF (Haney) —Grievance mediation request filed 7/2/07 in which OPEIU alleges Deborah Haney is not able to take breaks and performing work out of her class without compensation. By phone on 9/19/07, Shannon Halme notified the MEC that OPEIU and WSF have resolved this matter. The 9/20 settlement conference was cancelled. Upon receipt of OPEIU’s withdrawal, the case will be closed.

MEC Case No. 2-08

Dist. No. 1 MEBA v. WSF—Unfair labor practice complaint filed 7/10/07 in which MEBA charges WSF with interference and refusal to bargain. Specifically, MEBA alleges WSF unilaterally changed the respirator-facial hair policy by directing 1 individual employee to shave. On 8/8, WSF submitted information to MEC in opposition to the Commission’s accepting MEBA’s case as an unfair labor practice. On 8/23, MEBA withdrew the complaint “without prejudice”. On 8/29/07, MEC entered Order Closing Withdrawn Complaint, Dec. No. 527-MEC.

MEC Case No. 3-08

IBU v. WSF (Clark)—Grievance filed 9/25/07 in which IBU alleges WSF did not pay Donald Clark travel time, mileage and parking as an EFS tester, in violation of the CBA. Commissioner Sullivan has been assigned as arbitrator. Settlement conference and hearing are to be scheduled.

MEC Case No. 4-08

IBU v. WSF (Goddard)—Grievance filed 9/25/07 in which IBU alleges WSF released personal information related to new hire screening which violated Sheila Goddard’s privacy and resulted in a hostile work environment. Commissioner Ford has been assigned as arbitrator. Settlement conference and hearing are to be scheduled.

OTHER

Scott Braymer, Operations Watch Supervisors, expressed his concern that the new HRMS payroll system makes it almost impossible to tell what categories time and wages have been broken down into. This is especially a problem with the O.S. (Ordinary Seaman) employees and affects Watch Supervisors; they still have not received their retroactive pay.

Administrative Report

COMMISSIONER POSITION

Kathy Marshall reminded those present that the term of the Commissioner position currently held by John Sullivan expires June 15 of this year. Under MEC’s statute, this position is appointed from industry. If anyone is interested in applying or nominating someone to this position, please go to the Governor’s website (http://www.governor.wa.gov) and click on “Boards and Commissions” for the appropriate forms. The Governor’s Office has demanded at least 3 candidates to select from.

RULES REVIEW

Due to the recent legislative changes in our statute RCW 47.64.220, the MEC’s rules, WAC 316-85, need to be revised. The revised copy is available today and also is posted on MEC’s web site. Any comments, corrections or changes must be received by the MEC before October 12.A semi-final copy with all changes incorporated will be presented at the October 26, 2007 public meeting. If no comments are received at that time, MEC will go ahead and begin the rules review filing process on November 1.

BUDGET

MEC finished the 2005-07 biennium in the black. A supplemental budget request for 2007-2009 has been submitted to OFM in the amount of $50,050 to pay for the cost of the contracted-out salary survey.

Meeting adjourned at 10:57 a.m.

Next meeting:

Friday, October 26, 2007, 10:00 a.m., Rainier Conference Room, 4^th Floor, Washington State Ferries Office, 2901 3^rd Avenue, Seattle

***MEC Minutes are also available on the agency website at www.marineempcom.org.***