The Greater Cleveland Regional Transit Authority (GCRTA), the largest public transportation agency in the State of Ohio, employs nearly 3,000 people and its employees are heavily unionized. Nearly seven years ago the GCRTA began an effort to change the culture of the organization to a customer focus by implementing Total Quality (TQ) management philosophy and process improvements. A combined labor-management Policy Committee identified the work rules and the discipline policy as major impediments to achieving TQ goals. A joint task force was formed to tackle this formidable challenge. The vision was lofty, with goals such as the attainment of a positive relationship among all employees. Utilizing the TQ problem solving process and consensus decision making the ten-member task force worked for over a year to study the problems and develop recommendations. The final recommendations, to reduce the sixty plus work rules to six rules and adopt a non-punitive discipline system, were accepted by both the management and the two unions. Implementation efforts began with the formation of a twenty-five (25) member labor-management team and the hiring of a national consultant on Positive Discipline. With great blood, sweat and tears the team accomplished its objective of developing a new discipline policy. Extensive training was provided for supervisors, focusing on building a high performance work team through recognition, coaching and formal discipline. The employees participated in an orientation class co-taught by union and management representatives. Measuring, monitoring and support systems were put in place to gauge the impact of the new policy and work rules. The changes represent a milestone not only in the efforts to achieve a customer-focused organization but also in the efforts to build a labor-management partnership.