Burrus Update UPDATE #13 December 21, 2000 As you are aware, the union and the Postal Service failed to reach a negotiated agreement on the expiration date of the 1998-2000 national agreement. At midnight, November 20th the parties were far apart on the subject of wages. The union's on the record proposal was a wage increase of 13.5%, continuation of the COLA, increase in night differential, a three-year contract and several additional proposals to improve working conditions. Postal management's on the record proposal included no increase in wages over a four year contract and significant modifications to benefits and working conditions. These on the record proposals represent the only official offers made by either party. Following November 20th the parties mutually agreed to meet again on November 27th and 28th in off the record meetings but failed to bridge the wide gap that separated us on the issues of wages and important working conditions. From November 28th through the present, there have been numerous additional meetings as the parties are voluntarily exploring ways of bridging the wage differential that separate us. It is shameful that so much time was wasted during the bargaining process when management refused to negotiate. Discussions that are now occurring could have taken place during the bargaining time frame. The subjects include selective upgrades for APWU represented employees, significant wage increases for all employees, additional Steps for selected employees and increases in night differential. I have attempted to convey to the postal negotiators that the American Postal Workers Union wants a negotiated agreement, but will not sacrifice our demands in fear of arbitration. These meetings have led to the exchange of several formulas to bridge the wage gap and satisfy the union's demands, but to date no agreements have been reached. The discussions have been frank and both parties have explored a wide range of options. The actions by the postal negotiators to continue to pursue options demonstrates that there is a good faith effort to explore ways of reaching a negotiated agreement. I cannot predict whether or not an agreement is possible but can assure you that an agreement will not be reached that does not address the major issues on the bargaining table. The American Postal Workers Union does not take the threat of arbitration lightly. The experiences of 1990 and 1994 have taught us that an arbitrator can render an unfavorable decision, but we will not be paralyzed by the fear of arbitration and if it becomes our only alternative, we will continue the fight in whatever forum available. All provisions of the 1998-2000 national agreement continue in effect until we obtain a negotiated agreement or an arbitration award. This extension includes the Memorandums on Dependent Care and Annual Leave Exchange. In addition, separate agreement has been reached extending employees' rights to bid that were restricted to 5 under the 1998-2000 National Agreement; the vacation selections pursuant to Local Memorandums and repostings due to cumulative changes. Discussions are continuing outside the bargaining process on the return of Priority Mail and the correction of the pay scale. It is anticipated that an agreement will be reached on these issues prior to the end of the year. The APWU Hot Line has been deactivated, however if it appears that a settlement is possible it will be re-activated to convey the details of any settlement. I will continue to explore every option to achieve a negotiated agreement that reflects the hard work and dedication of our membership. I will be away from the office from December 22nd thru January 3rd, but anticipate that it will be necessary that I be present at several meetings to discuss the contractual impasse. I wish each of you and your families a very Merry Christmas and a Happy and prosperous New Year! Bill Burrus Executive Vice President