Agreement has been reached on the Priority Mail Centers and correction 
to the Pay Scale slotting process.    The staffing of the PMPCs was not 
introduced as a proposal in negotiations; however, the union did present a 
proposal on the Pay Scale.  The resolution of these issues removes them from 
consideration by an arbitrator in the event that the contract is 
referred to arbitration.  If an agreement is not reached during the week of January 
8th on a negotiated national agreement, the terms of a new national 
agreement will be referred to binding arbitration.  

It is anticipated that the parties will meet during that period to 
determine if there is an opportunity for a negotiated agreement.  The union's 
demands remain the same and we will either achieve them in negotiations or 
defer to interest arbitration.  These two difficult issues have been resolved 
and do not require further review.  

Priority Mail Centers/Pay Scale Slotting Changes

Agreement has been reached on the transfer of the Emery PMPCs to Postal 
operations effective January 7, 2001.  The agreement on PMPCs is 
consistent with the document previously discussed over the past year, including:

* Transition period from January 7, 2001 until January 1, 2002

* Clerk craft compliment 75% career (all full time)/25% casuals

* Waiver of casual limitations in two Xmas APs and AP 4 (2, 3 and4)
 
* 359 day casuals

* Opportunity for career transfer opportunities during transition 
period

* Total craft seniority 

* Application of Memo if PMPCs are converted to Delivery Operations

* Withholding of vacancies pursuant to Article 12 during transition 
period

* Clerk craft staffing pursuant to RI399

* Tri-party Labor Management Improvement meetings 

* Penalty Overtime waived for clerk craft with selection of volunteers 
first and casuals prior to non-volunteers.  Penalty overtime will continue to 
apply to Maintenance and MVS crafts with overtime selection pursuant to Local 
Memo and Article 8

* Conversion of transportation to MVS

* Conversion of maintenance to Maintenance Craft 

Re: Modification of the Pay Scale Slotting Process

The slotting process agreed to in October 1999 included procedures that 
created significant short term losses for employees slotting from Steps 
B and C into the new pay schedule.  A modification of the process has been 
agreed to.  The specifics are as follows:

* From now until April 7, 2001 employees will continue to slot pursuant 
to the October 1999 MOU

* Effective April 21, 2001 the slotting process is modified as follows:

*  Employees in Grades 2 through 7, Steps D through H will remain in 
Schedule 1 (one) until reaching Step I at which time Grades 2, 3 and 4 will be 
slotted at Step N and Grades 5, 6 and 7 will be slotted at Step M;
 
*   Employees in Steps A through C will slot in Schedule 2 consistent 
with the October 1999 MOU;
    
* Employees in Grades 8, 9 and 10 ( All Steps) will continue to slot in 
Schedule 2 pursuant to the time table of the October 1999 MOU.

* Employees who will or who have slotted from Steps B and C to the new 
pay schedule  will receive the following cash payment: 

Grade 2 $2,500
Grade 3 $2,500
Grade 4 $3,000
Grade 5 $3,000
Grade 6 $2,000
Grade 7 $2,500

Payment will be made following April 21, 2000 and eligible employees 
will receive payment in two equal amounts following April 21, 2000 and 
following April 20, 2002.   When a specific date is confirmed, it will be 
publicized.

William Burrus, Executive Vice President, APWU
(1/3/01)