NATIONAL ARBITRATION UPDATE

UPDATE 29                   May 8, 2001

The union has received the list of nine arbitrators from the Federal 
Mediation Conciliation Service (FMCS) and over the next two weeks we 
will be 
reviewing the record of each of the arbitrators whose names have been 
submitted.  After the conclusion of the review process, APWU and USPS 
will 
begin the striking process of unacceptable arbitrators.  Each side will 
alternately strike until only one arbitrator remains who will be 
selected as 
the neutral arbitrator to serve in interest arbitration.  It is 
expected that 
this process will be completed within the next three weeks and upon its 
conclusion, interest arbitration will begin.

The union is completing its preparations for the interest arbitration.  
Our 
wage demands are increases equaling 13.5% over a 30-month contract.  
The 
union also intends to advance the unresolved non economic working 
conditions 
identified below: 

* Increase in the night differential rate
* Employee options when working on holidays
* The elimination of TEs
* Prohibition on employer changes to Handbooks and Manuals
* Modifications to Article 32 that the union can compete for 
subcontracted 
work
* Compensation for grievance decisions not complied with in a prompt 
manner 
and the right of the union to select cases to be heard in arbitration
* Major modification to the uniform program where employees are 
provided 
uniforms in lieu of money to purchase uniforms
* Increased options for employees seeking the opportunity to transfer
* Compensation for all employer required travel
* Additional training opportunities
* Craft items unresolved in contract negotiations

In addition, the union will be seeking to continue all rights and 
benefits 
included in the 1998 national agreement not modified by the proposals 
identified above.

Bill Burrus
Executive Vice President