The employee group set forth in Section 1 above does not include, and this Agreement does not apply to:

The Employer and the Union agree that there shall be no discrimination by the Employer or the Union against employees because of race, color, creed, religion, national origin, sex, age, or marital status or because of a physical handicap with respect to a position the duties of which can be performed efficiently by an individual with such a physical handicap without danger to the health or safety of the physically handicapped person or to others.

Grievances arising under this Article may be filed at Step 2 of the grievance procedure unless filed directly at the national level, in which case, the provisions of this Agreement for initiating grievances at that level shall apply.

The Employer shall have the exclusive right, subject to the provisions of this Agreement and consistent with applicable laws and regulations:

a. To direct employees of the Employer in the performance of official duties;

b. To hire, promote, transfer, assign, and retain employees in positions within the Postal Service and to suspend, demote, discharge, or take other disciplinary action against such employees;

c. To maintain the efficiency of the operations entrusted to it;

d. To determine the methods, means, and personnel by which such operations are to be conducted;

e. To prescribe a uniform dress to be worn by letter carriers and other designated employees; and

f. To take whatever actions may be necessary to carry out its mission in emergency situations; i.e., an unforeseen circumstance or a combination of circumstances which calls for immediate action in a situation which is not expected to be of a recurring nature.

Both parties recognize the need for improvement of mail service.

The Union will be informed as far in advance of implementation as practicable of technological or mechanization changes which affect jobs including new or changed jobs in the area of wages, hours, or working conditions. When major new mechanization or equipment is to be purchased and installed, the Union at the national level will be informed as far in advance as practicable, but no less than 90 days in advance.

Upon receiving notice of the changes, an attempt shall be made at the national level to resolve any questions as to the impact of the proposed change upon affected employees, and if such questions are not resolved within a reasonable time after such change or changes are operational, the unresolved questions may be submitted by the Union to arbitration under the grievance-arbitration procedure. Any arbitration arising under this Article will be given priority in scheduling.

The Employer will not take any actions affecting wages, hours and other terms and conditions of employment as defined in Section 8(d) of the National Labor Relations Act which violate the terms of this Agreement or are otherwise inconsistent with its obligations under law.

It is agreed by the Employer that no employees employed in the regular work force will be laid off on an involuntary basis during this Agreement.

The rural carrier work force shall be comprised of the following categories of employees:

For administrative and reporting purposes, regular rural carriers who serve on an established rural route on the basis of triweekly, five (5), five-and-a-half (5 ½), or six (6) days in a service week, are considered to be full-time employees.

The following employees provide service on established regular and auxiliary rural routes in the absence of regular or auxiliary rural carriers. This service may be as leave replacement and/or covering vacant regular routes pending the selection of regular rural carriers, as an auxiliary assistant, or as an auxiliary route carrier:

1. Substitute Rural Carriers—(Designation Code 73) Substitute rural carriers are those employees hired prior to July 21, 1981, with an appointment without time limitation.

1. Temporary relief carriers are limited term, non-bargaining unit employees who provide service as a leave replacement or auxiliary assistant or provide coverage on auxiliary routes or vacant regular routes. There is no limit on the hiring of TRCs, provided the number of bargaining unit leave replacements (Substitutes, RCAs, and RCRs) in the district equals or is more than 80% of the number of regular routes in the district. When the number of bargaining unit leave replacements in the district is less than 80%, RCAs are the only leave replacement employees that may be hired.

2. TRCs will be hired pursuant to such procedures as the Employer may establish. Except as provided in D.3. below, TRCs will be hired for terms not to exceed 359 calendar days and will have a break in service of at least 6 days between appointments.

3. TRCs hired from the annuitant ranks (Des. Code 70-1) will be hired for terms not to exceed 359 days, with a break in service of at least 6 days between appointments, and will further be limited to 180 work days within each calendar year.

The basic work week for regular rural carrier employees shall be six (6) days, except as relief days are provided for certain carriers and for carriers serving triweekly routes.

Daily schedules shall be established to coincide with the daily evaluation of the route and adjusted periodically as required. The carrier's work day may vary above or below the daily evaluation of the route as mail volume fluctuates and road and weather conditions change.

When a rural carrier is being compensated on an hourly basis, the hourly rate is computed as follows:

1. Regular rural carrier —The annual salary for a 40-hour evaluated route divided by 2,080.

When a rural carrier craft employee is being compensated on an hourly basis, overtime pay is to be paid at the rate of 150% of the basic hourly straight time rate for regular carriers except in those instances when FLSA overtime is applicable.

Any employee scheduled to work and who does report for work shall be guaranteed two (2) hours work or pay.

Additional wash-up time for those rural carriers who perform dirty work or work with toxic materials on a daily or weekly basis may be claimed under "Other Suitable Allowances" at the time of a mail count, provided the carrier is subject to allergic reaction from such dirty work or toxic materials. The amount of wash-up time granted each employee shall be subject to the grievance procedure.

If, pursuant to present or future law, changes are made in the number of delivery days, the effects of the change on employees will be negotiated by the parties and all provisions of this Agreement inconsistent with the change will be amended to conform with the change.

The Employer shall notify the Union at least ninety (90) days prior to implementation of the contemplated changes in the number of delivery days. If, within ninety (90) days after such notice the parties are unable to agree on the treatment to be given to employees whose wages, hours, and working conditions will be changed, the Union shall be entitled to refer the matter to arbitration within ten (10) days. The arbitrator shall determine whether the Employer's proposed treatment of such employees is fair, reasonable, and equitable.

The above is not applicable to changes such as those resulting from route evaluations, etc., which are made under the present practice in the Postal Service.

The Employer shall continue funding the leave program so as to continue the current leave earning level for the duration of this Agreement.

Regular rural carriers shall be granted annual leave in minimum units of one day. Rural carriers should be granted annual leave in accordance with their personal wishes, provided a leave replacement is available. It shall be the responsibility of each rural carrier to plan annual leave at times when a leave replacement is available. If the leave replacement for the route is committed to serve another regular rural route, such leave replacement is not available. A regular rural carrier should not be unreasonably denied annual leave because of the leave replacement's assignment to a vacant route, auxiliary route, or a route where the regular rural carrier is on extended leave.

Care shall be exercised to assure that no employee is required to forfeit any part of that employee's annual leave.

All previously approved annual leave requests must be honored except in serious emergency situations.

The Employer agrees to continue the administration of the present sick leave program, which shall include the following specific items:

a. Credit employees with sick leave as earned.

b. Charge to annual leave or leave without pay (at employee's option) approved absence for which employee has insufficient sick leave.

c. Employee becoming ill while on annual leave may have leave charged to sick leave upon request.

d. Regular rural carriers shall be charged sick leave in minimum units of one day.

e. For periods of absence of three (3) days or less, a supervisor may accept an employee's certification as reason for an absence.

A. The approved absence on a Saturday of a regular rural carrier, substitute, or rural carrier associate in a leave earning capacity, which occurs within or at the beginning or end of a period of annual or sick leave, shall be without charge to such leave or loss of compensation provided the appropriate leave  balance on the Form 1223 (Earnings Statement) reflects at least 6 days of leave and the following conditions are met:

1. There are more than 5 days of annual or sick leave within the period; or

2. There are more than 4 days of annual or sick leave plus a holiday (see Article 11) within the period. If a holiday falls on Saturday, which is a scheduled work day, absence on the preceding Friday shall be without charge to leave. If the leave period is 4 days or less, absence on Friday shall be charged to leave.

3. Interruption during the approved period of annual or sick leave by court leave due to circumstances beyond the employee's control shall not disqualify the carrier for coverage as provided in 1. or 2. above.

B. Upon request, a rural carrier shall be granted annual leave or leave without pay on Saturday, at the carrier's option, provided a leave replacement is available.

A. Substitutes and rural carrier associates shall earn leave benefits when serving a vacant route, or when serving the route during the extended absence of the regular carrier in excess of 90 days. On the 91st day, the employee shall be credited with annual and sick leave for the first 90 days. These employees shall be granted leave in minimum units of one day.

B. Rural carrier associates assigned to an auxiliary route shall earn leave benefits based on the number of hours worked when serving the auxiliary route in excess of 90 days. On the 91st day, the RCA shall be credited with annual and sick leave for the first 90 days. These employees shall be granted leave in hourly increments.

The following ten (10) days shall be considered holidays for regular rural carriers:

New Year's Day

Martin Luther King, Jr.’s Birthday

President's Day

Memorial Day

Independence Day

Labor Day

Columbus Day

Veteran's Day

Thanksgiving Day

Christmas Day

A. A regular rural carrier whose regular scheduled work day falls on a holiday will not be required to work and will be paid at the daily rate for that day. When a holiday falls on a Sunday, the following Monday shall be observed as the holiday.

B. When a holiday falls on the relief day of an evaluated carrier, the carrier shall be granted the preceding work day as the designated holiday. A regular rural carrier required to work on a designated holiday shall receive the daily rate of pay for such day in addition to holiday leave pay to which the employee is entitled.

C. If a regular rural carrier is required to work on the designated Christmas holiday, such carrier shall receive one and one-half (1½) times the daily rate of pay in addition to the holiday leave pay.

D. Regular carriers shall not perform auxiliary assistance on any designated holiday or actual holiday.

E. A leave replacement may be utilized to perform duties on a holiday and will be paid actual hours worked.

The Employer will make an effort to assist employees who through occupational injury or occupational illness are unable to perform their regularly assigned duties. This effort will consist of possible assignment to limited duty work if such is available.

It is understood that the provisions of this Agreement are subject to the obligations and responsibilities imposed by the Federal Employees’ Compensation Act and its implementing regulations. Recognizing the mutual obligation to be fully responsive to the requirements of the Federal Employees’ Compensation Act, the parties will cooperate in making every effort to insure that employees with job-related illnesses or injuries are returned to duty subject to their medical restrictions.

In the rural carrier craft, at any local installation, regular rural routes shall not be considered for any light duty assignment.

It is the responsibility of management to provide safe working conditions in all present and future installations and to develop a safe working force. The Union will cooperate with and assist management to live up to this responsibility.

The Employer and the Union insist on the observance of safe rules and safe procedures by employees and insist on correction of unsafe conditions. Mechanization, vehicles and vehicle equipment, and the work place must be maintained in a safe and sanitary condition, including adequate occupational health and environmental conditions. The Employer shall make available at each installation forms to be used by employees in reporting unsafe and unhealthful conditions. If an employee believes he is being required to work under unsafe conditions, he may:

a) notify the supervisor who will immediately investigate the condition and take corrective action, if necessary;

b) file a grievance if no corrective action is taken during the tour; and/or

c) make a written report to the installation head.

The Employer will make health service available for the treatment of job-related injury or illness where it determines they are needed. The health service will be available from any of the following sources: U.S. Public Health Service; other government or public medical sources within the area; independent or private medical facilities or services that can be contracted for; or in the event funds, spaces, and personnel are available for such purposes, they may be staffed at the installation. The Employer will promulgate appropriate regulations which comply with applicable regulations of the Office of Worker's Compensation Programs, including employee choice of health services.

The Employer will comply with Section 19 of the Williams-Steiger Occupational Safety and Health Act.

Grievances which are filed pursuant to this Article are to be processed and adjudicated based on the principle of resolving such grievances at the lowest possible level in an expeditious manner, insuring that all facts and issues are identified and considered by both parties. In the event that a grievance is processed beyond Step 1, both parties are responsible to insure all facts, issues and documentation are provided to the appropriate union and management officials at the next higher level of the grievance procedure. The parties further agree that at any step in the grievance procedure, the Union representative shall have full authority to settle or withdraw the grievance in whole or in part. The Employer representative, likewise, shall have full authority to grant, settle or deny the grievance in whole or in part.

A grievance is defined as a dispute, difference, disagreement or complaint between the parties related to wages, hours, and conditions of employment. A grievance shall include, but is not limited to, the complaint of an employee or of the Union which involves the interpretation, application of, or compliance with the provisions of this Agreement.

a. Any employee who feels aggrieved must discuss the grievance with the employee's immediate supervisor within fourteen (14) days of the date on which the employee or the Union has learned or may reasonably have been expected to have learned of its cause. The employee may be accompanied by the steward or a Union representative, if the employee so desires.

b. For other than disciplinary actions the Union may also initiate a grievance at Step 1 in accordance with the above, and may initiate a class grievance at Step 1 when the grievance concerns the complaint of more than one employee in the office. If the Union initiates a grievance, the steward or Union representative is the only appropriate party to meet with the appropriate supervisor.

c. If no resolution is reached during such discussion, the supervisor shall promptly annotate a joint Step 1 grievance form, indicating briefly the issue and the date of the initial discussion, which constitutes the Step 1 filing date. The grievance will then be considered further by the installation head or designee and the steward or a union representative.

d. The installation head or designee will meet with the steward or a Union representative at the local installation as expeditiously as possible to jointly develop the facts and the grievance file and to attempt to resolve the grievance. The parties shall cooperate fully in the effort to develop all necessary facts, including the exchange of copies of all relevant papers or documents in accordance with Article 31. In those cases involving discipline, the parties may mutually agree to jointly interview witnesses where desirable to assure full development of all facts and contentions.

e. The joint grievance file shall include, at a minimum: (1) the joint Step 1 grievance form; (2) a full, detailed statement of undisputed facts; (3) full, detailed statements from management and the union of any disputed facts; (4) contentions of the parties; (5) contractual provisions involved; (6) any written statements from witnesses or other individuals; (7) copies of all relevant papers or documents; and (8) remedy sought.

f. If the parties are unable to resolve the grievance within ten (10) days of the Step 1 discussion, the Step 1 grievance form will be annotated accordingly, and the Union may appeal the grievance to Step 2 within seven (7) days thereafter. Such appeal must include copies of the joint grievance file and the Step 2 appeal form. The parties may extend these time limits, as necessary, by mutual agreement.

a. The Step 2 appeal shall be filed with the Manager, Human Resources, at the appropriate district office. In all grievances appealed from Step 1 or filed at Step 2, the grievant shall be represented for all purposes by a steward or a Union representative.

b. Within ten (10) days of the receipt of the appeal, the Employer's Step 2 representative will meet with the appropriate state steward or designee to attempt to resolve the grievance, unless the parties agree upon a later date. The parties shall cooperate fully in sharing all relevant and necessary information not previously included in the joint grievance file.

c. Any settlement or withdrawal of a grievance in Step 2 shall be in writing or shall be noted on the grievance form, but shall not be a precedent for any purpose, unless the parties specifically so agree or develop an agreement to dispose of future similar or related problems.

d. Where agreement is not reached, the Employer's decision shall be furnished to the state steward or designee in writing within seven (7) days after the Step 2 meeting unless the parties agree to extend the seven (7) day period. The decision shall include a full statement of the Employer's understanding of (1) all relevant facts, (2) the contractual provisions involved, and (3) the detailed reasons for denial of the grievance.

e. The Union may appeal an adverse Step 2 decision to Step 3 within ten (10) days after receipt of the Employer's decision, unless the parties’ representatives agree to extend the time for appeal. Any appeal must include copies of (1) the joint grievance file, (2) the Employer's written Step 2 decision, and (3) the Step 3 grievance appeal form.

a. Any appeal from an adverse decision in Step 2 shall be in writing to the Employer's Step 3 representative, with a copy to the Employer's Step 2 representative and the appropriate District Human Resources Manager.

b. The grievant shall be represented at the Step 3 level by the Union's Executive Committeeman, or appropriate designee. Unless the representative is an area, assistant state steward, or state steward, the representative shall not be the individual who acted as the Step 2 representative.

c. In cases of discipline or discharge, the management representative at Step 3 shall be a person who has had no direct connection with the case and who is at a higher management level than the Employer's Step 2 representative.

d. The Step 3 meeting of the parties' representatives to discuss the grievance shall be held within fifteen (15) days after it has been appealed to Step 3. Each party's representative shall be responsible for making certain that all relevant facts and contentions have been developed and considered.

e. The Employer's written Step 3 decision on the grievance shall be provided to the Union's Step 3 representative within fifteen (15) days after the parties have met in Step 3, unless the parties agree to extend the fifteen (15) day period. Such decision shall state the reasons for the decision in detail and shall include a statement of any additional facts and contentions not previously set forth in the record of the grievance as appealed from Step 2.

f. The Union may appeal an adverse decision directly to arbitration at the area level within twenty-one (21) days after the receipt of the Employer's Step 3 decision in accordance with the procedure hereinafter set forth; provided the Employer's Step 3 decision states that no interpretive issue under the National Agreement or some supplement thereto which may be of general application is involved in the case.

g. If either party's representative maintains that the grievance involves an interpretive issue under the National Agreement, or some supplement thereto which may be of general application, the Union representative shall be entitled to appeal an adverse decision to Step 4 (national level) of the grievance procedure. Any such appeal must be made within twenty-one (21) days after receipt of the Employer's decision and include copies of the joint grievance file, all grievance forms and appeal forms, and the Step 2 and Step  decisions. The Union shall furnish a copy of the Union appeal to the Employer's Step 3 representative and the appropriate District Human Resources Manager.

h. A copy of the Step 3 decision shall be enclosed with the letter of appeal to Step 4 or to arbitration as appropriate. It is further agreed that the National President of the Union or the Employer's representative shall have authority to overrule the parties at Step 3 regarding a mutual decision to appeal a case from Step 3 directly to arbitration.

i. Where grievances appealed to Step 3 involve the same, or substantially similar issues or facts, one such grievance to be selected by the Union representative shall be designated the "representative" grievance. If not resolved at Step 3, the "representative" grievance may be appealed to Step 4 of the grievance procedure or to arbitration in accordance with the above. All other grievances which have been mutually agreed to as involving the same, or substantially similar issues or facts as those involved in the "representative" grievance shall be held at Step 3 pending resolution of the "representative" grievance, provided they were timely filed at Step 1 and properly appealed to Steps 2 and 3 in accordance with the grievance procedure. Following resolution of the "representative" grievance, the parties involved in that grievance shall meet at Step 3 to apply the resolution to the other pending grievances involving the same, or substantially similar issues or facts. Disputes over the applicability of the resolution of the "representative" grievance shall be resolved through the grievance-arbitration procedures contained in this Article. In the event it is decided that the resolution of the "representative" grievance is not applicable to a particular grievance, the merits of that grievance shall also be considered.

j. A grievance may be filed by the Union's Executive Committeeman directly at Step 3 of the grievance procedure where a policy matter at a district or area level is involved. Such policy must direct an action which violates the National Agreement, and affects more than one office. The grievance may be filed prior to, but not later than fourteen (14) days after implementation of the change.

The parties shall meet at the national level promptly, but in no event later than twenty-one (21) days after appealing a Step 3 decision to Step 4 in an attempt to resolve the grievance. A written decision by the Employer will be rendered within fifteen (15) days after the Step 4 meeting unless the parties  agree to extend the fifteen (15) day period. The decision shall include an adequate explanation of the reasons therefor. In any instance where the parties have been unable to dispose of a grievance, the National President of the Union shall be entitled to appeal it to arbitration at the national level within thirty (30) days after receipt of the Employer's Step 4 decision.

The parties expect that good faith observance, by their respective representatives, of the principles and procedures set forth above will result in settlement or withdrawal of substantially all grievances initiated hereunder at the lowest possible Step and recognize their obligation to achieve that end.

The failure of the employee or the Union at Step 1, or the Union thereafter, to meet the prescribed time limits of the Steps of this procedure, including arbitration, shall be considered as a waiver of the grievance.

Failure by the Employer to schedule a meeting or render a decision in any of the Steps of this procedure within the time herein provided (including mutually agreed to extension periods) shall be deemed to move the grievance to the next Step of the grievance-arbitration procedure.

It is agreed that in the event of a dispute between the Union and the Employer as to the interpretation of this Agreement, such dispute may be initiated as a grievance at the Step 4 level by the President of the Union. Such a grievance shall be initiated in writing and must specify in detail the facts giving rise to the dispute, the precise interpretive issues to be decided and the contention of the Union. Thereafter the parties shall meet at Step 4 within thirty (30) days in an effort to define the precise issues involved, develop all necessary facts, and reach agreement. Should they fail to agree, then, within fifteen (15) days of such meeting, each party shall provide the other with a statement in writing of its understanding of the issues involved, and the facts giving rise to such issues. In the event the parties have failed to reach agreement within sixty (60) days of the initiation of the grievance at Step 4, the Union then may appeal it to arbitration, within thirty (30) days thereafter.

1. The processing of any grievance regarding an issue or fact situation which is also the subject of an EEO complaint shall be deferred until a final agency (USPS) decision or decision on appeal therefrom is rendered on the EEO complaint. The disposition of any allegation of discrimination in such proceeding shall be dispositive and binding on the same or similar issues presented in the deferred grievance. Management's Step 2 representative will provide written notification to the appropriate state steward that an EEO complaint has also been filed. In the event the grievance has been appealed to Step 3 or Step 4, management's Step 3 or Step 4 representative will provide the same written notice to the union representative at the step involved. Upon final disposition of the EEO complaint, only those contractual issues  which are separate and distinct from the discrimination issue may be reactivated in the grievance process at the same Step at which the grievance was deferred. The grievance will be reactivated by immediate scheduling for discussion at the step of the grievance procedure which the grievance had reached when deferred or, if applicable, will be moved to the head of the arbitration docket. Notwithstanding the foregoing, within fifteen (15) days after the filing of an EEO complaint, either party may notify the other that an otherwise deferrable grievance should continue to be processed where such grievance involves a removal action. Should the Union decline to continue to process a removal action after notification, such grievance shall be considered closed upon the expiration of the appropriate time limits for appeal or fifteen (15) days, whichever is longer.

2. The Union, at the national and local levels, will take affirmative steps to ensure that bargaining unit employees are informed that they may not pursue essentially contractual matters simultaneously under the grievance and EEO process. The Union, at the national and local levels, will not encourage dual filing of grievances.

A request for arbitration must be submitted within the time limit for appeal as specified for the appropriate Step. The National President of the Union must give written authorization of approval to the Employer at the national level before the request for arbitration is submitted.

Grievances referred to arbitration will be placed on a pending arbitration list. Except for discharge cases, the Union will have sixty (60) days from the date of such referral to certify the case to be scheduled for arbitration at the earliest possible date. Cases which are not certified for arbitration within the sixty (60) day period shall be considered waived and removed from the pending arbitration list. Discharge cases referred to arbitration shall be placed on a separate pending arbitration list. The Union will have fifteen (15) days from the date of such referral to certify the case to be scheduled for arbitration at the earliest possible date. Cases which are not certified for arbitration within the fifteen (15) day period shall be considered waived and removed from the pending arbitration list. If there are other certified disciplinary cases related to the employee's removal grievance, these cases shall be scheduled for hearing along with the removal cases.

National and Area Arbitration Panels are established as set forth below:

The members of these panels will be selected in accordance with the procedure set forth below and will serve for the term of this Agreement and shall continue to serve for six (6) months unless the parties otherwise mutually agree. To assure the expeditious processing of grievances, the parties by agreement may increase the size of these panels at any time. Should vacancies occur, or additional members be required on the National or Area panels, such vacancies shall be filled by mutual agreement. In the event the parties cannot agree on individuals to serve on these panels, or to fill any vacancies which may exist, a list of five (5) arbitrators will be supplied by the American Arbitration Association for each selection to be made. The parties shall then proceed by alternately striking names from the list until only one individual remains. Such individual shall be selected to remain on the panel.

Effective August 3, 1996, a National Panel of not more than three (3) arbitrators will be established to hear certified cases involving national interpretations or other cases which the parties agree have substantial significance. Arbitrators on the National Panel will be assigned to hear cases on a rotating basis. Member(s) of the Area Panel may by mutual agreement be member(s) of the National Panel. Prior to the scheduled hearing each party to the dispute may separately submit to the arbitrator who has been assigned the case, and to the other party to the dispute, a statement setting forth the following:

a. the facts relevant to the grievance;

b. the issue in the case;

c. the position(s) or contention(s) of the party submitting the statement.

A geographically balanced Area Panel of arbitrators is established to hear removal cases and contract cases not involving national issues. Normally, a stenographic record shall not be taken at these hearings, nor post hearing briefs filed. However, either party may make exception to this policy. The case with the lowest docket number pending before a panel will be scheduled to be heard first. However, the parties may mutually agree to assign such cases for hearing out of numerical sequence in order to fill a vacated hearing date, or to lessen the amount of the arbitrator's travel time and expense or for other valid reasons.

In the administration of this Article, a basic principle shall be that discipline should be corrective in nature, rather than punitive. No employee may be disciplined or discharged except for just cause such as, but not limited to, insubordination, pilferage, intoxication (drugs or alcohol), incompetence, failure to perform work as requested, violation of the terms of this Agreement, or failure to observe safety rules and regulations. Any such discipline or discharge shall be subject to the grievance-arbitration procedure provided for in this Agreement, which could result in reinstatement and restitution, including back pay.

For minor offenses by an employee, management has a responsibility to discuss such matters with the employee. Discussions of this type shall be held in private between the employee and the supervisor. Such discussions are not considered discipline and are not grievable.

Following such discussions, there is no prohibition against the supervisor and/or the employee making a personal notation of the date and subject matter for their own personal record(s). However, no notation or other information pertaining to such discussion shall be included in the employee's personnel folder. While such discussions may not be cited as an element of a prior adverse record in any subsequent disciplinary action against an employee, they may be, where relevant and timely, relied upon to establish that employees have been made aware of their obligations and responsibilities.

A letter of warning is a disciplinary notice in writing, identified as an official disciplinary letter of warning which shall include explanation of a deficiency or misconduct to be corrected.

In the case of discharge, any employee shall, be entitled to an advance written notice of the charges against the employee and shall remain either on the job or on the clock at the option of the Employer for a period of thirty (30) days. Thereafter, the employee shall remain on the rolls (non-pay status) until disposition of the employee’s case has been had either by settlement with the Union or through exhaustion of the grievance-arbitration procedure.

When there is a reasonable cause to believe an employee is guilty of a crime for which a sentence of imprisonment can be imposed, the advance notice requirement shall not apply and such an employee may be immediately remove from a pay status.

An employee may be immediately placed on an off-duty status (without pay) by the Employer, but remain on the rolls where the allegation involves intoxication (use of drugs or alcohol), pilferage, or failure to observe safety rules and regulations, or in cases where retaining the employee on duty may result in damage to U.S. Postal Service property, loss of mail or funds, or where the employee may be injurious to self or others. The employee shall remain on the rolls (non-pay status) until disposition of the case has been had. If it is proposed to discharge the employee, the emergency action taken under this section may be made the subject of a separate grievance.

In no case may a suspension or discharge be imposed upon an employee unless the proposed disciplinary action has first been reviewed and concurred in by a higher authority. Such concurrence shall be in writing. In associate post offices of twenty (20) or less employees, or where there is no higher level supervisor than the supervisor who proposes to initiate suspension or discharge, the proposed disciplinary action shall first be reviewed and concurred in by a higher authority outside such installation or post office before any proposed disciplinary action is taken.

A preference eligible is not hereunder deprived of whatever rights of appeal the employee may have under the Veterans’ Preference Act. However, if the employee appeals under the Veterans’ Preference Act, the employee thereby waives access to any procedure under this Agreement beyond Step 3 of the grievance-arbitration procedure.

A preference eligible who chooses to appeal the suspension of more than fourteen (14) days or the employee's discharge to the Merit Systems Protection Board (MSPB) rather than through the grievance-arbitration procedure shall remain on the rolls (non-pay status) until disposition of the employee's case has been had either by settlement or through exhaustion of the MSPB appeal.  (Also see supplement )

The records of a disciplinary action against an employee shall not be considered in any subsequent disciplinary action if there has been no disciplinary action initiated against the employee for a period of two years, except that a Letter of Warning shall not be considered in any subsequent disciplinary action if there has been no disciplinary action initiated against the employee for a period of one year.

Stewards may be designated for the purpose of investigating, presenting and adjusting grievances.

The Union will certify to the Employer in writing a steward or stewards and alternates in accordance with the following general guidelines. Where more than one steward is appointed, one shall be designated chief steward. The selection and appointment of stewards or chief stewards is the sole and exclusive function of the Union. Stewards will be certified to represent employees in specific work location(s). The number of stewards shall be in accordance with the formula as set forth below:

Up to 49 rural carrier craft employees per post office, station or branch — 1 steward

50 or more employees — 2 stewards

1. At the option of the Union, representatives not on the Employer's payroll shall be entitled to perform the functions of a steward provided such representatives are certified in writing to the Employer at the area level and providing such representatives act in lieu of stewards designated under the provisions of 2.A above.

2. A local steward who retires may continue to act as a local steward for a reasonable period of time at no cost to the Employer.

1. To provide steward service to a number of small installations where a steward is not provided, a Union representative (area, assistant state steward, or state steward) certified to the Employer in writing and compensated by the Union may perform the duties of a steward.

2. Under the above conditions, except for the written certification, the state steward may also act in the absence of a local steward.

3. The assistant state steward or state steward may handle a particular grievance in lieu of the local steward only upon written notification by the state steward to the local management.

When it is necessary for a steward to leave the work area to investigate and adjust grievances or to investigate a specific problem to determine whether to file a grievance, the steward shall request permission from the immediate supervisor, and such request shall not be unreasonably denied. In the event the duties require the steward to leave the work area and enter another area within the post office, the steward must also receive permission from the supervisor from the other area the steward wishes to enter, and such request shall not be unreasonably denied.

Section 4. Payment of Stewards

Section 5. Union Participation in New Employee Orientation

Section 6. Checkoff

B. Dues Authorization Form

The authorization of such deductions shall be in the following form: Page 63.

The Union in behalf of its members agrees that it will not call or sanction a strike or slowdown.

The Union or its local Unions will take reasonable action to avoid such activity, and where such activity occurs, immediately inform striking employees they are in violation of this Agreement and order said employees back to work.

It is agreed that the Union or its local Unions which comply with the requirements of this Article shall not be liable for the unauthorized action of their members or other postal employees.

The parties agree that the provisions of this Article shall not be used in any way to defeat any current or future legal action involving the constitutionality of  existing or future legislation prohibiting Federal employees from engaging in strike actions. The parties further agree that the obligations undertaken in this Article are in no way contingent upon the final determination of such constitutional issues.

Notice of such proposed changes that directly relate to wages, hours, or working conditions will be furnished to the Union at the national level at least thirty (30) days prior to issuance. Such notice shall identify the proposed changes in the appropriate handbook or manual, as they apply to the Rural Carrier Craft. After receipt of the notice, the Union may request a meeting concerning the proposed changes. Such request must be made within fifteen (15) days of receipt of the notice; and the meeting must be scheduled and held within thirty (30) days after receipt of the notice unless mutually agreed otherwise.

Following the meeting and prior to publication, the Union will be given a final written notification of the changes which shall include any modifications to the initial proposed changes. Upon receipt of this final notice, if the Union believes the changes violate the National Agreement (including this Article), it may then submit the issue to arbitration in accordance with the arbitration procedure within thirty (30) days after receipt of the final notice. Absent a request for a meeting in accordance with the time limit set forth above, a request for arbitration must be submitted within forty-five (45) days of receipt of the initial notice of proposed changes. Copies of those parts of all new handbooks, manuals and regulations that directly relate to wages, hours and working conditions, as they apply to employees covered by this Agreement, shall be furnished the Union upon issuance.

The existing parking program will remain in effect.

Rural carrier vehicles used for mail delivery will be given priority parking over non-delivery official vehicles, customer vehicles and privately owned vehicles not used for the delivery of mail.

The method for determining the Employer bi-weekly contributions to the cost of employee health insurance under the Federal Employees’ Health Benefits Program (FEHBP) will be as follows:

A. The Office of Personnel Management shall calculate the subscription charges under the FEHBP that will be in effect the following January with respect to self only enrollments and self and family enrollments.

B. The bi-weekly Employer contribution for self only and self and family plans is adjusted to an amount equal to 85% of the weighted average bi-weekly premiums under the FEHBP as determined by the Office of Personnel Management. The adjustment begins on the effective date determined by the Office of Personnel Management in January 2001.

C. The weight to be given to a particular subscription charge for each FEHBP plan and option will be based on the number of enrollees in each such plan and option for whom contributions have been received from employers covered by the FEHBP as determined by the Office of Personnel Management.

When a new employee who is eligible for enrollment in the Federal Employees' Health Benefit Program enters the Postal Service, the employee shall be furnished a copy of the Health Benefit Plan brochure of the Union.

The Employer shall maintain the current life insurance program in effect during the term of this Agreement.

The provisions of Chapter 83 of Title 5 of the U.S. Code and any amendments thereto shall continue to apply to employees covered by this Agreement.

Employees covered by this Agreement shall be covered by subchapter I of Chapter 81 of Title 5 and any amendments thereto relating to compensation for work injuries.

The Employer will promulgate appropriate regulations which comply with applicable regulations of the Office of Workers’ Compensation Programs and any amendments thereto.

The Employer shall furnish a separate bulletin board for the exclusive use of the Union, subject to the conditions stated herein, if space is available. If a bulletin board is not available, some space will be made available for the purpose outlined in this Article. The Union may place their literature rack in swing rooms, if space is available. Only suitable notices and literature may be posted or placed in literature racks. There shall be no posting or placement of literature in literature racks except upon the authority of officially designated representatives of the Union.

Upon reasonable notice to the Employer, duly authorized representatives of the Union shall be permitted to enter postal installations for the purpose of performing and engaging in official union duties and business related to the Collective Bargaining Agreement. There shall be no interruption of the work of employees due to such visits and representatives shall adhere to the established security regulations.

Any employee on leave without pay to devote full or part-time service to the Union shall be credited with step increases as if the employee had been in a pay status. Retirement benefits will accrue on the basis of the employee's step so attained, provided the employee makes contributions to the retirement fund in accordance with current procedure. Annual and sick leave will be earned in accordance with existing procedures based on hours worked.

Employees will be granted annual leave or leave without pay at the election of the employee to attend National, State and Area Union Conventions provided that a request for leave has been submitted by the employee to the installation head as soon as practicable and provided that approval of such leave does not seriously adversely affect the service needs of the installation.

In the event a leave replacement is not available on a rural route, the installation head will make every reasonable effort to secure a leave replacement.

A regular rural carrier is paid based on the evaluation of the route to which the carrier is assigned for the first 30 days of the temporary higher level assignment. At the beginning of the next pay period following completion of the first 30 days, the carrier's salary is converted to that of a 40-hour evaluated route, attained step. The salary is then adjusted in accordance with the salary rules for changes under the salary schedule to which assigned.

Any employee detailed to higher level of work shall be given a written management order, (Form 1723, Notice of Assignment), stating the beginning and approximate termination, and directing the employee to perform the duties of the higher level position. A copy of the Notice of Assignment shall be provided to the state steward. Such written order shall be accepted as authorization for the higher level pay. The failure of management to give a written order is not grounds for denial of higher level pay if the employee was otherwise directed to perform the duties.

In the event of an energy crisis, the Employer shall make every reasonable attempt to secure a high priority from the appropriate Federal agency to obtain the fuel necessary for the satisfactory maintenance of postal operations. In such a case, or in the event of any serious widespread energy shortage, the Employer and the Union shall meet at the national level to discuss the problems and proposed solutions.

Subject to a $10 minimum, an employee may file a claim within fourteen (14) days of the date of when the employee has learned or may reasonably have been expected to have learned of the loss or damage and be reimbursed for loss or damage to the employee's personal property, except for motor vehicles and the contents thereof, taking into consideration depreciation where the loss or damage was suffered in connection with or incident to employment while on duty or while on postal premises. The possession of the property must have been reasonable or proper under the circumstances and the damage or loss must not have been caused in whole or in part by the negligent or wrongful act of the employee. Loss or damage will not be compensated when it resulted from normal wear and tear associated with day-to-day living and working conditions.

The above procedure does not apply to motor vehicles and the contents thereof. For such claims, employees may utilize the procedures of the Federal Tort Claims Act in accordance with Part 250 of the Administrative Support Manual. Tort claims are for damage or loss of property, personal injury, or death caused by the negligent or wrongful act or omission of an employee (other than the claimant) while acting within the scope of employment. The procedure specified therein shall be the exclusive procedure for such claims, which shall not be subject to the grievance-arbitration procedure. A tort claim may be filed on SF 95, which will be made available by the installation head or designee.

The parties agree that continued public confidence in the Postal Service requires the proper care and handling of USPS property, postal funds, and the mails. In advance of any money demand upon an employee for any reason, the employee must be informed in writing and the demand must include the reasons therefor.

Employees who are assigned fixed credits or vending credits shall be strictly accountable for the amount of the credit. If any shortage occurs, the employee shall be financially liable unless the employee exercised reasonable care in the performance of the employee's duties. In this regard, the Employer agrees to:

A. Continue to provide adequate security for all employees responsible for postal funds;

B. Prohibit an employee from using the fixed credit or other financial accountability of any other employee without permission;

C. Grant the opportunity to an employee to be present whenever the fixed credit is being audited and, if the employee is not available, to have a witness of the employee's choice present;

D. Absolve an employee of any liability for loss from cashing checks if that employee follows established procedures.

An employee is responsible for the protection of the mails entrusted to the employee. Such employee shall not be financially liable for any loss, rifling, damage, wrong delivery of or depredation on, the mails or failure to collect or remit C.O.D. funds unless the employee failed to exercise reasonable care.

An employee shall be financially liable for any loss or damage to property of the Employer including leased property and vehicles only when the loss or damage was the result of misconduct of such employee.

A. If a grievance is initiated and advanced through the grievance-arbitration procedure or a petition has been filed pursuant to the Debt Collection Act, regardless of the amount and type of debt, collection of the debt will be delayed until disposition of the grievance and/or petition has been had, either through settlement or exhaustion of contractual and/or administrative remedies.

B. No more than 15 percent of an employee's disposable pay or 20 percent of the employee's biweekly gross pay, whichever is lower, may be deducted  each pay period to satisfy a postal debt, unless the parties agree, in writing, to a different amount.

An employee's driving privileges may be revoked or suspended when the on-duty record shows that the employee is an unsafe driver.

Elements of an employee's on-duty record which may be used to determine whether the employee is an unsafe driver include, but are not limited to, traffic law violations, accidents or failure to meet required physical or operation standards. When a revocation, suspension, or reinstatement of an employee's driving privileges is under consideration, only the on-duty record will be considered in making a final determination. An employee's driving privileges will be automatically revoked or suspended concurrently with any revocation or suspension of the employee's State driver's license and restored upon reinstatement. In the event such revocation or suspension of the State driver's license is with the condition that the employee may operate a vehicle for employment purposes, the employee's driving privileges will not be automatically revoked. When revocation, suspension, or reinstatement of an employee's driving privileges is under consideration based on the on-duty record, such conditional revocation or suspension of the State driver's license may be considered in making a final determination.

No installation will maintain a practice of revoking an employee's driving privileges without regard for the individual accident circumstances.

An employee shall receive Vehicle Familiarization and Safe Operation Certification when the employee has a valid State driver's license, has satisfactorily completed the Postal Service driver's training and has a satisfactory driving history.

An employee must inform the supervisor immediately of the revocation or suspension of the employee's State driver's license.

In the event a rural carrier or a substitute rural carrier in a leave earning capacity loses his or her driving privileges and cannot be employed in the installation, a licensed driver meeting the Employer's driving standards may be provided by the rural carrier or a substitute rural carrier in a leave earning capacity at the carrier's option and expense for a period not to exceed one (1) year. This paragraph is applicable to only the employee's personal vehicle.

The Union may, through employees employed by the Employer, solicit employees for membership in the Union and receive Union dues from employees in non-work areas of the Employer's premises, provided such activity is carried out in a manner which does not interfere with the orderly conduct of the Employer's operation.

The Employer will make available for inspection by the Union all relevant information necessary for collective bargaining or the enforcement, administration, or interpretation of this Agreement, including information necessary to determine whether to file or to continue the processing of a grievance under this Agreement. Upon the request of the Union, the Employer will furnish such information, provided, however, that the Employer may require the Union to reimburse the USPS for any costs reasonably incurred in obtaining the information.

Requests for information relating to purely local matters should be submitted by the local Union representative to the installation head or designee. All other requests for information should be directed by the National President of the Union to the Vice President, Labor Relations.

Nothing herein shall waive any rights the Union may have to obtain information under the National Labor Relations Act, as amended.

The parties agree that labor-management meetings will be scheduled at the national, area, and local levels. The purpose of such meetings shall be to discuss, explore, and consider matters of mutual concern and to improve labor-management relations, provided neither party shall attempt to change, add to, or vary the terms of this Collective Bargaining Agreement. Grievances shall not be a subject for discussion at these meetings. It is the intent of the parties that there be no fewer opportunities for meetings than existed in the previous Agreement. Agenda items should be submitted and exchanged at least three (3) days in advance of the scheduled meeting. The chairman will be designated by the Employer. The frequency, attendees, and type of agenda items considered proper for discussion at meetings at the various levels are as follows:

a. National Level

1. Frequency—Quarterly; however, by mutual agreement additional meetings may be held.

2. Attendees —The national representatives of the Union and Employer's designated representatives.

3. Agenda Items —Items of national concern such as Human Rights, Mech. and Tech., Subcontracting, Safety and Health, Jurisdiction, and other labor-management subjects.

b. Area Level

1. Frequency—Semiannually; however, by mutual agreement additional or less frequent meetings may be held.

2. Attendees —The area representatives of the Union and Employer's representatives.

3. Agenda Items —Items of area concern which affect more than one office, such as Safety and Health, Human Rights, and other labor-management subjects.

c. Local Level

1. Frequency—Quarterly; unless in an office having few carriers where the day-to-day relationship would render a meeting unprofitable. Meetings need not be held if mutually agreeable by both parties.

2. Attendees —The local steward and Employer's representative(s).

3. Agenda Items —Items of local office concern such as Safety and Health and other labor-management subjects.

4. The meeting shall be on official time, and the local steward shall be granted administrative leave or auxiliary assistance or accumulate the actual time required and be granted a day of administrative leave when eight (8) hours have been accumulated.

The Employer will give due consideration to public interest, cost, efficiency, availability of equipment, and qualification of employees when evaluating the need to subcontract.

The Employer will give advance notification to the Union at the national level when subcontracting which will have a significant impact on bargaining unit work is being considered and will meet to consider the Union's views on minimizing such impact. No final decision on whether or not such work will be contracted out will be made until the matter is discussed with the Union.

The Employer agrees to provide the Union with a schedule of Highway Contract Renewal Cycles as issued.

The Employer and the Union agree that, in those instances in which delivery is provided by Highway Contract Box Delivery Routes, upon the request of the state steward, the appropriate Office of Distribution Networks will furnish relevant cost information prior to the renewal of any such contract delivery route. The Employer's decision as to conversion of all or part of the territory involved to rural delivery will be made on a cost effective basis. All territory under review must qualify for rural delivery under the Employer's regulations.

No expansion of the Employer's current national policy on the use of contract service in lieu of rural carriers will be made except through the provisions of this Article, which are intended to be controlling. The parties recognize that individual problems in this area may be made the subject of a grievance under the provisions of Article 15.

The Employer agrees to place particular emphasis upon career advancement opportunities. First opportunity for promotions will be given to qualified career employees. The Employer will assist employees to improve their own skills through training and self-help programs.

The principle of a fair day's work for a fair day's pay is recognized by the parties to this Agreement.

The Employer agrees that any work measurement systems or time or work standards shall be fair, reasonable and equitable. The Employer agrees that the Union through qualified representatives will be kept informed during the making of time or work studies which are to be used as a basis for changing current or instituting new work measurement systems or work or time standards. The Employer agrees that the National President of the Union may designate a qualified representative who may enter postal installations for purposes of observing the making of time or work studies which are to be used as the basis for changing current or instituting new work measurement systems or work or time standards.

The Employer agrees that before changing any current or instituting any new work measurement systems or work or time standards, it will notify the Union as far in advance as practicable.

Within a reasonable time, not to exceed ten (10) days after the receipt of such notice, representatives of the Union and the Employer shall meet for the purpose of resolving any differences that may arise concerning such proposed work measurement systems or work or time standards.

Following such meeting, the Union must be notified, in writing, whether or not the proposed changes will be modified before implementation.

If no agreement is reached within ten (10) days after receipt of notification in 5 above, the Union may initiate a grievance at the national level. If no grievance is initiated, the Employer will implement the new work or time standards at its discretion. If a grievance is filed and is unresolved within ten (10) days, and the Union decides to arbitrate, the matter must be submitted to priority arbitration by the Union within ten (10) days.

The arbitrator's award will be issued no later than sixty (60) days after the commencement of the arbitration hearing. During the period prior to the issuance of the arbitrator's award, the new work or time standards will not be implemented. Data gathering efforts or work or time studies, however, may be conducted during this period in any installation.

The issue before the arbitrator will be whether the national concepts involved in the new work or time standards are fair, reasonable and equitable.

In the event the arbitrator rules that the national concepts involved in the new work or time standards are not fair, reasonable and equitable, such standards may not be implemented by the Employer until they are modified to comply with the arbitrator's award. In the event the arbitrator rules that the national concepts involved in the new work or time standards are fair, reasonable and equitable, the Employer may implement such standards in any installation. No further grievances concerning the national concepts involved may be initiated.

After receipt of notification provided for in Section 4 of this Article, the Union shall be permitted through qualified representatives to make time or work studies. The Union shall notify the Employer within ten (10) days of its intent to conduct such studies. The Union studies shall not exceed ninety (90) days from the date of such notice, during which time the Employer agrees to postpone live implementation. There shall be no disruption of operations or of the work of employees due to the making of such studies.

Upon request, the Union representative shall be permitted to examine relevant available technical information, including final data worksheets, that were used by the Employer in the establishment of the new or changed work or time standards. The Employer is to be kept informed during the making of such Union studies and, upon the Employer's request, the Employer shall be permitted to examine relevant available technical information, including final data worksheets, relied upon by the Union.

The Employer and the Union express strong support for programs of self-help such as the Employee Assistance Program (EAP). An employee's voluntary participation in such programs will be considered favorably in disciplinary action proceedings.

In offices having an EAP, the status and progress of the program, including improving methods for identifying alcoholism and drug abuse in its earliest stages and encouraging employees to obtain treatment without delay, will be proper subjects for labor-management discussions. Such discussions shall not breach the confidentiality of EAP participants.

In postal installations having professional medical units, the Employer will insure that the professional staffs maintain a current listing of all local community federally-approved drug treatment agencies for referring employees with such problems.

In the event that the Union or its local Unions presently operate or shall hereafter establish and charter credit unions, the Employer shall, without charge, authorize and provide space, if available, for the operation of such credit unions in Federal buildings, in other than workroom space. Any postal employee who is an employee of any such credit union or an officer, official, or board member of any such credit union shall, if such employee can be spared, be granted annual leave or leave without pay, at the option of the employee, for up to eight (8) hours daily, to perform credit union duties.

This Agreement constitutes the sole and entire existing agreement between the parties and completely and correctly expresses all of the rights and obliga