BEFORE ARBITRATOR MICHAEL F. NAUYOKAS

STATE OF HAWAII

DECISION AND AWARD

                        This case comes before me as a grievance involving AMERON HAWAII (“AMERON” or the “EMPLOYER”) (including its employees, agents and representatives),

CEMENT, QUARRY WORKERS, READY MIX AND DUMP TRUCK DRIVERS, LOCAL 681 (the “UNION”) and RENNY REGO, JR. (hereinafter “REGO” or the “GRIEVANT”).   The parties have noted that;

                        WHEREAS, on or about August 3, 2000, the EMPLOYER discharged the GRIEVANT, and

                        WHEREAS on or about August 10, 2000, the UNION filed a written

grievance challenging the GRIEVANT’s discharge under the applicable collective bargaining agreement (“CBA”) as “wrongful” and “discriminatory”; and

                        WHEREAS AMERON has denied any violation of the CBA and has

admitted to no liability whatsoever arising out of the GRIEVANT’S discharge; and

                        WHEREAS, since the filing of the grievance the parties hereto have

agreed to permit the Arbitrator to mediate the claims and to have the arbitrator issue a decision based on such mediation;

                        NOW, THEREFORE, THE ARBITRATOR ISSUES THE FOLLOWING AWARD:

            While the UNION and the GRIEVANT concede the factual basis for the GRIEVANT’S termination, the parties have agreed, based on the intercession of the Arbitrator in his capacity as mediator, that the punishment of termination was too severe under all the relevant circumstances.  Therefore, the GRIEVANT’S termination is converted to a suspension without pay and the GRIEVANT is reinstated to employment with the Company.  The parties further agree the GRIEVANT’S seniority date will be restored.  The GRIEVANT will not be entitled to any backpay.  GRIEVANT will be placed on schedule as of June 4, 2001.

                        DATED:  Honolulu, Hawaii,                                               .

APPROVED AND SO ORDERED:

                                                                       
MICHAEL F. NAUYOKAS, Arbitrator

                                                                       
DATE

Subscribed and sworn to before me this
             day of                                    , 2001.

                                                                       
Notary Public, State of Hawaii
My Commission expires: