Barney's Madison Ave Negotiation Notes 6/18/08

Thank you to union committee member Steve Blecher for preparing this update:

NEGOTIATION NOTES June 18, 2008

The committee met at 9:30 to discuss the strategy for the day. We called the Company in at 11:43. The Company stated their proposal was based on some assumptions.

COMPANY PROPOSAL:

SELLING OFFSET INCREASE- $.25 per hour based on a figure of 1.1 million needed over the next 3 years needed to keep the fund at a 4 month surplus, no commission increase, no hourly rate increase (not including above offset), people who opt out of the insurance do not get the offset, and the employees pay an average of $22 per week for insurance.

At 11:50 we took a caucus and called the Company back at 1:03.

UNION PROPOSALS:

AGREE TO SAVINGS TO FUND TO ACHIEVE 1.1 MILLION NEEDED OVER NEXT 3 YEARS

HEALTH INSURANCE- Modify position to an average of $17.50 per week using 6 tiers (3 for non-selling who don’t get commission and 3 for selling)

SELLING OFFSET INCREASE- $.50 per hour

NON SELLING INCREASE- $.55 per hr in the 1st year, $.55 in 2nd year, $.55 in 3rd year and an acceptance of the $.25 offset in the 1st year

BONUS INCREASE- Withdrawn

SELLING COMMISSION INCREASE- Withdrawn

At 1:08 the company took a caucus and returned at 1:41. At this point the Company stated a possible mistake was made in the adding up of the savings to the fund that was to this point assumed to be at 1.1 million needed over the next 3 years. If the savings were to lower the number below the 1.1 million, it would create a lower proposal (currently at $22) from the Company for the employee share of insurance. The Company then stated they needed to re look at the numbers and it should be ready for the next session. They also showed optimism by stating we might be able to get a deal done in one more session. The meeting ended at 1:51 with the next meeting set for Tuesday June 24th.

These notes were prepared by Steve Blecher and this is not an official NY/NJ Joint Board document.