Midwest Generation Illegal Lockout Update
                          
                                 NLRB issues decision on Midwest Generation Lockout  

      On June 21, 2001 Local 15 began a strike against Midwest Generation following unsuccessful negotiations
   on a new contract. The Union members had voted to reject the Company's Last, Best and Final offer that was
   presented to them and took to the picket lines.  

       Later on August 31, 2001 after a vote by the striking members, the Union notified the Company that it was
   terminating the strike and made an unconditional offer to return to work.

      On September 6, 2001 the Company notifies the Union that it would not reinstate the striking employees.
   Instead it locked them out. However, the Company locked out only the members that remained on strike
   when it ended on August 31, 2001. They did not lock out those members who refrained from participating
   in the strike, those who initially participated, then returned to work or those who offered to return to work
   before the strike ended.

     Because of the lockout the Union submitted an otherwise unacceptable contract to the members for a vote
   and the membership eventually ratified it. That contract was effective October 22, 2001 through December 31, 2005.
   The Company ended the lockout on October 22, 2001 and those employees who wished to return to work were
   allowed to do so.

     It is important to note that prior to the ratification vote, the Union informed the Company that if the NLRB
   later found the Company had engaged in an illegal lockout, the Contract would be "void because the Company's
   unfair practice(s) ... coerced the employees into accepting it," and that "nothing the Union or its representatives
   say or do should be interpreted as a waiver of this position."

     The Union filed an Unfair Labor Practice charge for the illegal lockout and the NLRB Regional Director found
   that there was reasonable cause to believe the Act was violated. The parties submitted the issue of the legality
   of the lockout and remedy directly to the NLRB in Washington, D.C. The Board found that the lockout was lawful.
   The Union appealed that decision to the 7th Circuit Court of Appeals which reversed the Board and found the
   lockout unlawful. The 7th Circuit also ordered the NLRB to determine if the members were coerced by the Company
   into ratifying their Last, Best and Final offer. The U.S. Supreme Court refused to hear the Company's subsequent
   appeal. As directed by the 7th Circuit, the NLRB made their decision on March 17, 2008.

                                                       The Board's Decision

    The NLRB found that the Company's partial lockout was illegal from September 6 through October 22, 2001 and
  therefore the Company will be required to make the locked out members whole for loss of pay and other
  benefits incurred by them as a result of the lockout. The back pay will be computed to include interest.

   The decision further explored the Court's directive for the NLRB to determine if the Union and its members were
  coerced into accepting the Company's final demands in order to return to work. The Board had referred this issue
  to an Administrative Law Judge to determine if the 2001 and subsequent collective bargaining agreements
  should be voided in whole or part. The Union and Company will present testimony and evidence in support of their
  respective position at a hearing which will be scheduled in the future.

   In addition, the Board ordered the company to post a notice at all sites stating, among other things, that
  it will not discourage membership in the Union by locking out employees who participate in strikes while not
  locking out employees who refrain from doing so or who initially participate but then abandoned the strike.
  The Board also ordered the Company to make the locked out employees whole by paying them lost wages
  and benefits lost as a result of the lockout. It will still take time to calculate the lost wages and benefits and
  deduct from them employees' interim earnings, but the Company is required to produce information necessary
  to so this within 14 days unless it obtains an extension of time. Within this same time period, the Company
  must remove any reference of the lockout from the Company's files and within 3 days after that, inform
  all employees in writing this was done and that the lockout will not be used against them in the future.