Part VII
Questions 1 - 5 refer to the following notification and response.
Inter-Departmental Notification
To: Employees.

Our Transportation Worker¡¯s Strike Contingency Plan

A potential strike, scheduled for 12:01 am, Monday, October 31, 2006, will affect our city¡¯s bus, subway and Market-Frankford rail service.

Service will not be affected on the Regional Rail services, which are operated by different union workforces and transport commuters from northern suburbs to the downtown financial district.

We understand that a transit strike will pose transportation problems for some of our employees. To provide assistance to those affected, we have hired a private transit service that will provide transportation for any of our 3000 employees who require it to commute. In the event of a strike, we will continue with business as usual.

For up-to-date schedules, information on car-pooling and a message from John Heuer, Head Manager for Human Resources and Marie Witt, Associate Vice President of Business Services, visit our company¡¯s homepage at www.privco.com.

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To: John Heuer
From: Anabelle Chan, Accounting Division
Re: Strike Contingency Plan

I believe that the private transit service that was hired by our company this morning will be unable to meet our requests as previously described due to payment increases. They asked for a $12,000 running service charge per day, although other times we normally only pay half of that. I believe that we should decline to meet their inflated request and begin pressuring Phillip Stuart at Transportation Authority management to give in to the union¡¯s demands.

I believe that a strike could hurt our company financially due to the lack of staff. Please let me know your opinion in this matter. Your strictest confidentiality is most appreciated.

Thank you,
Anabelle
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4. Why will the private transit service not satisfy the company's request?
(A) It is not connected to the union.
(B) Workers do not want it.
(C) The quoted price is too high.
(D) The company is bankrupt.
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