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 Dear Wally: 
As we agreed, this letter confirms our points of agreement on 
ground rules relating to the collective bargaining negotiations between NAATS 
and the FAA. 
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Any cost savings or efficiencies that result in cost savings 
agreed to between the FAA and NAATS, and that relate to the Flight Service 
Option, will be used to provide the NAATS bargaining unit with a correlative pay 
adjustment. 
  
   
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FAA may conduct a new market study and will not rely on the 
first market survey. The parties will attempt to jointly agree on the private 
and public sector jobs included in the new survey and the outcome of the survey. 
If, however, the parties are unable to agree, each party reserves the right to 
assert its position about the legitimacy and outcome of the survey. 
  
   
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If any pay adjustment is agreed to by the parties in addition to 
the government-wide increases, such pay adjustment will be made effective 
retroactive to the first pay period beginning on or after October 1, 1999. While 
negotiations are taking place, current pay procedures will remain in effect, 
including government-wide increases and the 5% ATRA. 
  
   
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The contract article teams will resume negotiations on July 12. 
Thereafter, smaller teams of about five members each will begin negotiations on 
cost-savings and compensation-related issues, as well as any articles not 
addressed in the July 12 session. Ray Thoman and I will lead the FAA's small 
team.    
 
  
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