I've seen the memo the administration sent the FA announcing the ultimatum. Some office staffer made an honest mistake. The memo was dated March 28th, the first day of mediation. That is, the administration didn't wait until the end of the second day of mediation (March 29) to decide to declare an impasse; they had already decided on day one--at the latest. They had also already decided that we had rejected their ultimatum before they had made it. This is what you do when your goal isn't an agreement but an impasse. Here's the memo in full. Click on it to enlarge it.
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