The issue in this National Level Arbitration was whether or not the Postal Service violated Article 32 of the Collective Bargaining Agreement, as it related to the installation of the APPS. Some time in 1999, the Postal Service issued an RFP for bidders to supply a new package processing system, which was subsequently named the Automatic Package Processing System (APPS). The APPS was designed as a partial replacement and substantial upgrade for the Small Parcel and Bundle Sorter (SPBS). In October 2001 the Postal Service issued a Statement of Work (SOW) describing in detail what would be required of the supplier. The SOW was incorporated into the APPS contract, which was awarded to Lockheed Martin (Lockheed) on September 20, 2002. Pursuant to the contract, Lockheed was to supply the Postal Service with 74 APPS systems at a total cost in excess of $300 million, approximately $4 million per APPS system.
Award: Arbitrator Goldberg ruled that the work of installing the APPS systems was not bargaining unit work. Hence, the Postal Service did not violate Article 32.1.A or Article 32.1.B in allowing Lockheed to perform that work, rather than assigning it to Maintenance Craft employees.
Document Type: National Arbitration
APWU National Grievance Number: Q00T4QC06175320
Arbitrator Name: Stephen Goldberg