Message from Executive Vice President Bill Burrus. January 12, 2001 Burrus Update #16 As previously reported, contract negotiations continued on January 11th to determine whether or not the parties can agree on the terms and conditions of a new national agreement. I had previously informed postal negotiators that APWU would not extend the discussions beyond January 11th and a final decision would be expected. The parties met and discussed the union’s wage demands for each year of the new contract. These discussions led to a number of requests for information detailing additional specifics of the union’s demands. In that the unions wage demands include general wage increases as well as upgrades for a number of employee categories, the impact is complicated in relation to the employer’s cost and requires the development of reams of data prior to a final decision on an agreement or referral to arbitration. The length of contract was also discussed combining the length with the specific annual wage increases. These discussions were in the form of gaining additional information regarding the unions demands and the need to begin the formal dispute resolution procedures in the event that final agreement cannot be reached. Agreement was reached on the following Memorandum that enables the negotiators to continue the exploration of an agreement while initiating the dispute resolution process that our members are not unduly delayed in achieving a new national agreement. The law requires that "In the event no agreement is reached within 90 days after the expiration or termination of the agreement or date on which the agreement became subject to modification pursuant to subsection (b) of this section, or if the parties decide upon arbitration but do not agree upon procedures therefor, an arbitration board shall be established consisting of 3 members....., one of whom shall be selected by the Postal Service, one by the bargaining representative of the employees, and the third by the two thus selected." If either of the parties fails to select a member, or if the members chosen by the parties fail to agree on the third person within 5 days after their first meeting, the selection shall be made by the Director." APWU has previously selected its member to serve on the arbitration panel if a negotiated agreement cannot be achieved and at this time we are willing to explore every opportunity to achieve a negotiated contract, but wish to apply the full intent of the law that our members are not unduly delayed in achieving a new national agreement. I am unable to make a prediction on the possibilities of a negotiated agreement, but I am encouraged that notwithstanding the clear message that I have conveyed that APWU is determined to achieve its objectives, postal management has not stated that agreement cannot be achieved. The parties have agreed to the following statement reflecting our agreement to continue the negotiations process while initiating the dispute resolution procedure. "Since the expiration of the 1998 National Agreement on November 20, 2000, the parties have met repeatedly in off the record meetings to attempt to narrow their differences in a good faith effort to negotiate the terms of the 2000 National Agreement. The parties now agree that it is necessary to begin the formal dispute resolution procedure to ensure that there is no undue delay in ` establishing the terms of the 2000 National Agreement. Accordingly, the parties have agreed to move forward in the direction of a jointly negotiated formal dispute resolution process, while continuing their efforts to negotiate an agreement." An additional meeting has been agreed to for Thursday, January 18th when the parties will continue to explore opportunities for a voluntary agreement and while I have no desire to waste time and effort in continuing discussions that do not ultimately lead to a voluntary agreement, I am available to consider all opportunities throughout the time frame of the legal dispute resolution process. Agreement has been reached in a Memorandum to refer Mail Processor upgrade grievances to the field for settlement or arbitration. The upgrading of Mail Processors is under discussion in the negotiation forum and if resolved, the grievances will probably be withdrawn as a part of the negotiated agreement but in the interim you should discuss settlement of related grievances consistent with this memorandum or prepare for arbitration.