During our August 7, 2000 labor management meeting, Sam Ruden promised a craft reduction of between 275 and 350 employees by November of 2000. On August 7, 2000, Sam Ruden indicated this reduction would affect 50-65 mail handlers. Then he requested the union’s attendance in an "informational" follow-up meeting on August 17, 2000. This meeting was intended to outline future Denver P&DC plans and craft impacts. The union did attend this meeting.

Starting with the Flats operation, this is a brief outline of the information provided to the union:

· Management maintains three AFSM100’s can run the GMF’s entire (current) flat mail volume. The third AFSM100 is expected to be installed and operational by late September of 2000. In all, the GMF is expected to receive seven AFSM100’s.

· Management acknowledged acceptance problems with the new AFSM’s, adding the "burn-in/ acceptance process," is the reason for the current flat preparation method. This method will change and vary based on acceptance tests. Otherwise, flat tubs will eventually go straight to the ASFM’s.

· After the GMF gets three AFSM100’s up and running (by about 10/1/00), all FSM’s at the MPA will go away. They will be shipped to facilities outside the Denver P&DC.

· Management intends to keep "a couple" FSM1000’s at the GMF to run the 100 rejects. Ruden has stated the older 1000’s will only run AFSM100 rejects between 1500 & 0300.

All AFSM100’s (after the third), in theory are excess. Therefore, management is going to bring flats in-house for processing to get the most out of these "extra" machines.

· The gist of Ruden’s plan is geared around "high production operational windows."

· E.g. Go like hell for as short a time as possible, dispatch everything, shut the machines down and move on to something else.

· During the installation of the first three AFSM100’s, various sorts will run for 21 hours per day with a three hour maintenance window of 5 – 8am.

· As more ASFM100’s come on line, management plans to eventually staff the AFSM’s with full tour mail handlers on T-1 & T-2, indicating the ability to cover T-3 with "flexible resources." This is more of their "operation window" theory.

· The installation of the third AFSM will bring with it an integrated flat tray sorting system. This tray sorting system will eventually connect to four of seven ASFM100’s.

· The remaining three will run independently, focusing on associate office and station zones.

· Management intends to acquire all flats from associate stations for GMF processing.

· Ruden indicated the ability to reduce tow motor "flat support," but considering all FSM tow support is ad hoc drivers, this reduction issue seems moot.

MPA Impact:

· Management indicated they just secured a new five-year lease on the Mail Processing Annex.

· To secure necessary volume for the AFSM100’s, after Christmas, management plans to process an additional 300-600 pallets of standard "A" flats from the BMC daily. These flats will be prepped at the MPA for AFSM100 sorting.

· In addition, all associate office pallets will be prepped at the MPA for AFSM100 processing.

· Management expects MPA staffing to increase by 30-35 due to flat preparation duties.

· Priority will stay at the MPA.

· A four station SPBS will be moved from the BMC to the MPA, (possibly by December)

· There are plans to upgrade this four station SPBS to a six station machine.

· The priority "spider" conveyors will stay at the MPA.

Air Mail Center Impact

· The Automated Airline Assignment (AAA) system is being installed now. Management acknowledges problems with flat processing, but claims a fix is on the way.

· By September of 2000, management plans to have the entire AAA system with trays sorting conveyors (cash register) in place.

· The AAA system is expected to have an operation window of 1600 – 2100, and another from midnight into the early AM (or until clear).

· Ruden plans a direct conveyor from the AAA system to the "B" Concourse commodity truck on the dock.

· By November, there are plans to have the commercial carriers and all air taxi crews (other then United Airlines) tender inbound mail directly to commodity trucks in the AMC yard. The will precede the future closing of "A" Concourse. (no date offered)

· Management will instruct ground crews to deliver mail to and make separations by facility into the commodity trucks similar to those made on "B" Concourse.

E.g. MPA or GMF.

Operation 115 impact:

· Management plans to install another commodity truck induction line at or near bay 70 to bring op 115 letter trays into the GMF.

· It is planned to have the BMC load operation 115 letters into a commodity truck for GMF processing.

· A second tray sorting system is on the drawing board for this 115 mail. This will be installed near the COLP operation.

Terminal Annex impact:

· Due to the recent signing of a new five-year lease, management expects to close down and sell the Terminal Annex property.

Mail Handler Craft impact:

Recent AMC problems in which management reduced staffing before the new equipment was in place and operational seems to have brought about a new approach for this round of changes. Management intends to keep all current GMF mail handlers in place until the third AFSM100 is installed (late September/ early October).

· After the hit automation will take on 8/26/00, one would question this statement…

· Out of section and out of facility movement (by juniority) will become routine.

· Ruden stated current Tour 1 & Tour 3 GMF mail handlers can expect to be worked where needed by juniority. As a unit runs out of work, career GMF mail handlers will be shifted out-of-section to replace PTF’s and casuals in the GMF. Thus reducing PTF’s hours and eliminating casuals hours totally.

· ON 8/7/00, Ruden promised to reduce all PTF hours to an absolute minimum. There was no direct mention of this on 8/17/00.

· Management intends to send "extra" Tour 2 GMF mail handlers to the MPA based on a day-to-day need contingent on GMF work load. This is their short-term solution until the long-term staffing needs are better understood.

· The postal service will pay travel costs in accordance with current regulations.

· This travel will be on the clock.

· A van will be made available for those without vehicles.

· Management claims three ASFM100’s will eliminate 75 employees per tour.

· A reduction of 55 total employees is anticipated in manual the operations 175/ 030/ 040 & 160 by October of 2000.

· With the introduction of the tray sorting system behind the first three AFSM100’s, all manual spreading duties will go away by October of 2000.

· Operation 115’s will be impacted by the new commodity line and tray sorting system. The operation as we know it today will go away.

· AMC - "A" Concourse will eventually shut down. (No time frame was offered)

· The AMC staffing will be negatively affected by the AAA sorting system, the direct tendering of mail to commodity trucks and the "B" Concourse commodity conveyors out of the AAA operation.

· The AMC drive through mail induction area will go away

· Ruden claims mail prep will not be touched. I have no reason to believe this.

I write this update with hesitation. I have mixed feelings about being the party that disseminates Sam’s bad news. On the other hand, the union has an obligation to keep the membership informed, even if the news is not good.

Rest assured, your union representatives are doing everything possible within their contractual authority to fight and challenge every violation that presents itself. Our fight for jobs, hours and security is only beginning. Management’s methodology is not a phase, it is the future and we must maintain steadfast and unyielding pressure at every turn if we are to protect our jobs and future.

Problems are surfacing daily, the AMC was hit last month, automation just got popped. The flats are in line to be hit with craft impacts rippling into operations 115, mail prep, tow motors and COLP.

The only facility increasing in workload and size is the MPA and we would be naive to assume management will put mail handlers into mail handler work just because the contract says they should. Proportionately, the clerk craft is in line for the biggest craft impact. However, the reality of it seems to be management’s decision to place clerks into as much mail handler work as possible.

Please do not assume a union steward knows about problems in your pay location on the work floor. Help us help you. If in doubt, request to see a steward. Bring the problem to light so it can be addressed and challenged.

FMLA:

In an effort to combat management’s willful disregard for your federal FMLA rights and entitlements, Local 321 is in steadfast pursuit of legal and political guidance. Please continue to forward copies of ALL FMLA denials to Michael Hora or another union representative. In order to prove the blatant violations, we must continue to track and document them.

Every single FMLA denial should be challenged and presented to the grievance process, and every denial should generate a complaint to the Department of Labor. Please forward all relevant FMLA documents and a signed authorization to represent release to the union for action.

Clothing Allowance Arbitration:

As you are aware, Local 321 did prevail in the recent clothing allowance arbitration. We are now in the process of fighting management for every reimbursement due. Management has thrown numerous issues at us that making adjudication of this settlement kind of like putting together 250 different puzzles at one time.

An assortment of issues come into play when determining the amount due to each mail handler and management is attempting to use every variable to reduce the settlement amount. These factors include: (clothing allowance) anniversary date, bid (allowance) at the time of reduction, bid history since reduction of allowance, date notifying you of reduction, did the mail handler comply with reduction letter, how much has been spent since reduction of clothing allowance, what do Citibank records show, how are employees to be reimbursed, what spending time-limits will accompany the amount paid, will credit cards be reissued, will taxes be withheld etc…

Management’s attempt to minimize this settlement will fail. The union has worked too hard to settle for anything less then the FULL AMOUNT DUE, as stated by the Arbitrator! Therefore, we ask for your patience and indulgence. Rest assured, when the settlement figures are finalized, you will be notified. All settlement amounts will be posted. Local 321 has contacted the arbitrator requesting he maintain jurisdiction in this matter. However, I do expect it will take at least another month to resolve.

In Unity,

Michael J Hora

Vice President, Local 321