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National Arbitrator Margo R. Newman has ruled that non-probationary postal employees separated due to unfavorable background check results are entitled to due process and may challenge their removals through the grievance and arbitration procedure.

On Dec. 12, 2024, NALC joined the APWU, NPMHU, and NRLCA in a national-level arbitration concerning employees who had been separated after completing probation due to an unfavorable NACI (National Agency Check with Inquiries) background check.  The background checks are conducted by the Postal Inspection Service (PIS) and are standard for all newly hired postal employees.

The dispute escalated to the interpretive step after management argued that the separations were "administrative" and not subject to arbitration, claiming they were based on failure to meet a condition of employment rather than disciplinary action. However, the unions contended that once an employee completes probation, they are entitled to the full protection of the collective bargaining agreement, including the right to challenge terminations.

Arbitrator Newman rejected the Postal Service’s claim that the separations were outside the scope of the contract, noting that the National Agreement does not exclude such disputes from arbitration. She emphasized that the only explicit exclusion from grievance applies to probationary employees. In addition, Arbitrator Newman maintained that the Postal Service must prove it had just cause for the separation, as required by Article 16 of the National Agreement. Read the award here: C-37276.