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arbitration will be conducted under the voluntary labor arbitration rules of the American <br />Arbitration Association. <br />Section 4, All awards of the arbitrator and all pre-arbitration grievance settlements <br />reached by the Union and the City shall be final, binding, and conclusive on the City, the Union, <br />and the employees. A grievance may be withdrawn without prejudice by the Union at any time <br />during Steps 1, 2, 3 or 4 of the grievance procedure. All rnonies agreed to be due in a <br />prearbitration settlement or following an arbitration award shall be paid to the employee on the <br />payday for the pay period following the date of the agreement as to the exact amount owed. <br />Such sum shall be issued in a separate payroll check. <br />Section 5. No grievance will be processed unless it -is filed within the time limit <br />established for filing grievances. If a grievance is not appealed by the Union to the next higher <br />step within the time limits established in the grievance procedure, the grievance will be deemed <br />to be settled on the basis of the City's last answer. If the City fails to answer a grievance within <br />the time limits, the grievance will automatically be appealed to the third step in the grievance <br />procedure. <br />Section 6. The time limits set forth in the grievance procedure shall, unless extended by <br />mutual written agreement of the City and the Union, be binding on both parties. Working days' <br />as used in the grievance procedure shall not include Saturdays, Sundays or holidays. <br />Section 7. In determining the time periods provided for under the grievance procedure, <br />the initial day of the operative event shall be excluded and the required number of days shall <br />then be computed successively, excluding Saturdays, Sundays, and holidays. <br />Section 8, A policy grievance is defined to mean a grievance in which a controversy has <br />been raised, the nature of which, if not resolved will affect the entire bargaining unit or members <br />within the bargaining unit who have a cammonality of interest in the outcome of the grievance. <br />Such policy grievance shall be filed within the time constraints established in Section 2, Step 1, <br />of this Article, and shall be heard on a Step 3 level of the grievance procedure. <br />s <br />.??