DATE:                        January 31, 2007

TO:                  All Local 709 Members

FROM:            Jeff T. Goen, President

SUBJ:             Cost of Living Fold-in

As per the current Collective Bargaining Agreement, Part B, Article VIII, Section 3, Sub-paragraph (2)(b) states:

“(b) Effective January 6, 2007, the difference between the current cumulative Cost-of-Living Adjustment, and such previous adjustment as set forth in Subsection 2(a), if any, payable on that date (including the amount effective on that date) shall be added to the maximums and minimums of the rage ranges in Article VIII, Section 2 . . .”

“ . . . On each of the above dates, the employee’s base rate will increase by the amount of COL being received by that employee on that date.”

A review by the Union’s legal advisor of the above stated language has determined that the amount of the fold-in is incorrect and inconsistent with past application of said language.

Additionally, grievances have been filed with the Company on this issue.  We will make every attempt to resolve this issue as expeditiously as possible.

Thank you for your patience and support in this matter.

Fraternally,

Jeff T. Goen

President

JTG:rrb