August 23, 2002

Jim Denney, President
Nabors Alaska Drilling, Inc.
2525 C Street, Suite 200
Anchorage, AK 99503

Dear Mr. Denney:

I have been informed by Jean Ward of the Alaska Labor Relations Agency, who I had asked to facilitate mediation arrangements for the department's designated mediator, Tom Cashen, that Nabors Alaska Drilling refuses to participate in a mediation session for the purposes of settling your labor dispute with the designated bargaining agent of your employees, the Alaska State District Council of Laborers. I am writing to urge you to reconsider your decision and attend at least one mediation session to see if there is any chance of moving the parties beyond the current stalemate.

Your attorney, Mr. Mede, has stated that Nabors is "meeting its obligations under the National Labor Relations Act" and has not seen any cases that demonstrate that the department can require compulsory mediation for private industry. I have previously addressed the legality, precedent and appropriateness of state involvement in private sector labor disputes that threaten the industrial peace of the state in the enclosed letter to Mr. Mede on July 5, 2002. Whether the department can compel participation is, at this juncture, a moot point, since mediation by its very nature is a voluntary process. I am sure that Mr. Mede has explained that the role of a mediator is nothing like that of an arbitrator. The mediator has only that authority given to him by the parties, and does not render any decision, binding or otherwise, on any aspect of the dispute. Mediation is, nonetheless, a widely used and highly effective means of resolving labor disputes in the private and public sectors.

Nabor's obligations under the National Labor Relations Act include the obligation to bargain in good faith toward an agreement. It is the norm in modern collective bargaining for parties to a labor dispute who are acting in good faith but find themselves in a stalemate to at least give the mediation process a try. I would encourage Nabors to take this next logical step in the collective bargaining process and meet with Commissioner Cashen to discuss a mediation session with the Laborers at your earliest mutual convenience.

Sincerely,

Ed Flanagan
Commissioner

Enclosure

cc:    Governor Knowles
        Steve Marshall, BP Exploration
        Kevin Meyers, Phillips Alaska
        Chuck Pierce, Unocal Alaska
        Bell Mede, Owens and Turner
        Kevin Dougherty, Laborers Union

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