The issue in this National Level Arbitration was the California mode conversion. Approximately one year after the Work Rules Pilot MOU was "suspended" in August 2011, the Postal Service notified APWU that it intended to mode convert all 13 PVS sites in California, as well as several other PVS operations around the country. It is the proposed California mode conversion that is the subject of the instant grievance.

Award Summary: Arbitrator Goldberg issued the following in his award:
1. Article 32.1.8 applies to the proposed California mode conversion. Accordingly, the Postal Service must comply with Article 32.1.B before making a final decision on whether or not California PVS work will be contracted out.
2. Article 32.2 does not apply to the California mode conversion.
3. The Memorandum of Understanding Regarding Contracting or insourcing of Contracted Services applies to all contracting out of highway transportation work, including that controlled by Article 32.2.
4. The "fair comparison of all reasonable costs" called for by the Memorandum of Understanding Regarding Contracting or insourcing of Contracted Services is to be made at the times called for by Article 32 - in an Article 32.1.B proceeding at the time the Comparative Analysis report is being developed; in an Article 32.2 proceeding within 45 days of the Postal Service furnishing the Union with the information called for by Article 32.2.C.

Document Type:  National Arbitration

APWU National Grievance Number:  Q10V4QC12324573

Arbitrator Name: Stephen Goldberg

Tags: Subcontracting , Article 32.1.B , Contracting Out of PVS Work , MOU on Motor Vehicle Craft Jobs , MOU , Consideration of National Outsourcing Initiatives , MOU on Contracting or Insourcing of Contracted Services , Amended Work Rules Pilot MOU , PVS , Postal Vehicle Service , PVS Work , HCR , Highway Contract Route

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