ARTICLE 7
                          GRIEVANCE AND ARBITRATION


7.1         Purpose
            a.    This grievance procedure shall be used to process and
                  resolve grievances arising under this MOU and
                  employment-related complaints.
            b.    The purposes of this procedure are:
                  (1)   To resolve grievances informally at the lowest
                        possible level.
                  (2)   To provide an orderly procedure for reviewing and
                        resolving grievances and complaints promptly.


7.2         Definitions
            a.    A grievance is a dispute of one or more employees, or a
                  dispute between the State and ACSA, involving the 
                  interpretation, application, or enforcement of the express
                  terms of this MOU.
            b.    A complaint is a dispute of one or more employees, or
                  ACSA, involving the application or interpretation of a
                  written rule or policy not covered by this MOU and not
                  under the jurisdiction of the SPB.  Complaints shall only
                  be processed as far as the department head or designee.
            c.    As used in this procedure, the term "immediate
                  supervisor" means the individual identified by the 
                  department head.
            d.    As used in this procedure, the term "party" means
                  ACSA, an employee, or the State.
            e.    An "ACSA representative" refers to an employee
                  designated as an ACSA steward or a paid staff
                  representative.


7.3         Time Limits
            Each party involved in a grievance shall act quickly so that the
grievance may be resolved promptly.  Every effort should be made to complete
action within the time limits contained in the grievance procedure.
However, with the mutual consent of the parties, the time limitation for any
step may be extended.


7.4         Waiver of Steps
            The parties may mutually agree to waive any step of the
grievance procedure.


7.5         Presentation
            At any step of the grievance procedure, the State representative
may determine it desirable to hold a grievance conference.  If a grievance
conference is scheduled, the grievant or an ACSA steward, or both, may
attend without loss of compensation.


7.6         Informal Discussion
            An employee grievance initially shall be discussed with the
employee's immediate supervisor.  Within seven (7) calendar days, the
immediate supervisor shall give his/her decision or response.


7.7         Formal Grievance - Step 1
            a.    If an informal grievance is not resolved to the
                  satisfaction of the grievant, a formal grievance may be
                  filed no later than:
                  (1)   Twenty-one (21) calendar days after the employee can
                        reasonably be expected to have known of the event 
                        occasioning the grievance; 
                  (2)   Within fourteen (14) calendar days after receipt of
                        the decision rendered in the informal grievance
                        procedure.
            b.    However, if the informal grievance procedure is not
                  initiated within the period specified in Item (1) above,
                  the period in which to bring the grievance shall not be
                  extended by Item (2) above.
            c.    A formal grievance shall be initiated in writing on a form
                  provided by the State and shall be filed with a designated
                  supervisor or manager identified by each department head
                  as the first level of appeal.
            d.    Within fourteen (14) calendar days after receipt of the
                  formal grievance, the person designated by the department
                  head as the first level of appeal shall respond in writing
                  to the grievance.
            e.    No contract interpretation or grievance settlement made at
                  this stage of the grievance procedure shall be considered
                  precedential.


7.8         Formal Grievance - Step 2
            a.    If the grievant is not satisfied with the decision
                  rendered pursuant to Step 1, the grievant may appeal the
                  decision within twenty-one (21) calendar days after
                  receipt to a designated supervisor or manager identified
                  by each department head as the second level of appeal.  If
                  the department head or designee is the first level of
                  appeal, the grievant may bypass Step 2.
            b.    Within twenty-one (21) calendar days after receipt of the
                  appealed grievance, the person designated by the
                  department head as the second level of appeal shall
                  respond in writing to the grievance.
            c.    No contract interpretation or grievance settlement made at
                  this stage of the grievance procedure shall be considered
                  precedential.


7.9         Formal Grievance - Step 3
            a.    If the grievant is not satisfied with the decision
                  rendered pursuant to Step 2, the grievant may appeal the
                  decision within twenty-one (21) calendar days after
                  receipt to a designated supervisor or manager identified
                  by each department head as the third level of appeal.  If
                  the department head or designee is the second level of
                  appeal, the grievant may bypass Step 3.
            b.    Within twenty-one (21) calendar days after receipt of the
                  appealed grievance, the person designated by the
                  department head as the third level of appeal shall respond
                  in writing to the grievance.


7.10        Formal Grievance - Step 4
            a.    If the grievant is not satisfied with the decision
                  rendered at Step 3, the grievant may appeal the decision
                  within twenty-one (21) calendar days after receipt to the
                  Director of the Department of Personnel Administration or
                  designee.
            b.    Within thirty (30) calendar days after receipt of the
                  appealed grievance, the Director of the Department of
                  Personnel Administration or designee shall respond in
                  writing to the grievance.


7.11        Response
            If the State fails to respond to a grievance within the time
limits specified for that step, the grievant shall have the right to appeal
to the next step.


7.12        Formal Grievance - Step 5
            a.    If the grievance is not resolved at Step 4, within thirty
                  (30) calendar days after receipt of the 4th level
                  response, ACSA shall have the right to submit the
                  grievance to arbitration.
            b.    Within 14 calendar days after the notice requesting
                  arbitration has been served on the State or at a date
                  mutually agreed to by the parties, the parties shall meet
                  to select an arbitrator.  If no agreement is reached on
                  the selection of an arbitrator the parties shall,
                  immediately and jointly, request the State Mediation and
                  Conciliation Service or the American Arbitration
                  Association to submit to them a panel of nine (9)
                  arbitrators from which the State and ACSA shall
                  alternately strike names until one name remains and this
                  person shall be the arbitrator.  If the parties cannot
                  agree from which service to obtain the list of
                  arbitrators, the party requesting arbitration shall pay
                  all costs, if any, of obtaining the list of arbitrators.
            c.    The arbitration hearing, itself, shall be conducted in
                  accordance with the Voluntary Labor Arbitration Rules of
                  the American Arbitration Association.  The cost of
                  arbitration shall be borne equally between the parties.
            d.    An arbitrator may, upon request of ACSA and the State,
                  issue his/her decision, opinion, or award orally upon
                  submission of the arbitration.  Either party may request
                  that the arbitrator put his/her decision, opinion, or
                  award in writing and that a copy be provided.
            e.    The arbitrator shall not have the power to add to,
                  subtract from, or modify this MOU.  Only grievances as
                  defined in Section 2a. of this Article shall be subject to
                  arbitration.  In all arbitration cases, the award of the
                  arbitrator shall be final and binding upon the parties.