1. As general principles, the parties agree that the purpose and intent of Article 16, Section 7 is:

A. To afford preference eligible employees, because of their status under the Veterans' Preference Act, a choice of forums in which to obtain a resolution on the merits of certain adverse employer actions set forth in Chapter 75 of Title 5, U.S. Code. (e.g., suspensions of more than 14 days, discharge), and

B. To prevent situations in which the Employer is required to defend the same adverse action before the MSPB and in the Grievance-Arbitration procedure.

2. In accordance with the principles stated in 1. above, the following procedures shall be applied:

A. A preference eligible employee may both file a grievance and appeal to the MSPB, as appropriate, and the Union shall be entitled, at its discretion, to pursue a grievance so filed to arbitration. However, the Union will be deemed to have waived access to arbitration in any of the following circumstances:

1. If at the time that the Union appeals the grievance to arbitration, the grievant also has an appeal pending before the MSPB. (Postmark will constitute the date of appeal to arbitration; Postmark will also constitute date of withdrawal of appeal to the MSPB);

2. If the grievant appeals the matter to the MSPB at anytime after the Union appeals the matter to arbitration. (Postmark will constitute the date of the MSPB appeal);

3. If the MSPB issues a decision on the merits;

4. If at any time the MSPB begins a hearing on the merits;

5. If at any time the employee requests the MSPB to issue a decision on the record without a hearing and the MSPB has closed the record; or

6. If at any time the employee and the Employer resolve the MSPB appeal through settlement.

3. In notices in which the Postal Service advises employees of their right to appeal to the MSPB, the following statement shall be included:

4. If the Postal Service erroneously advises an employee that he or she is entitled as a result of veterans, preference to appeal to the MSPB and if MSPB declines jurisdiction, the Union shall be entitled to reinstate the grievance that was not appealed to arbitration after a Step 3 denial, because of the employee's pending MSPB appeal, within 15 days from receipt of notice that the MSPB has dismissed the appeal for lack of jurisdiction. (Receipt of notice shall be presumed to have occurred 5 days from the date of the letter dismissing the appeal).

5. At the Step 3 discussion of a grievance, the Union representative and the USPS representative each have an obligation to inform the other of the existence of a companion MSPB appeal.