I don't like the vague wording in the report much either, but understand why.
And in your scenario, it sounds like she is looking for a way to get out of paying back benefits.
That fits why the CF is not willing to enter mediation, and IF that is true, as a taxpayer and serving mbr, I would have to agree.
Excellent point on the 2 year contract, I was wondering "why 2 years" but couldn't guesstimate even. It sounded to me like a position that wasn't an ARE. I also think different LFAs have slightly different processes WRT B/As so...