The Daily News reports on some personnel problems at The Union Club, the first social club in the United States. Seems that yesterday the all-boys, jackets-required club on Park Ave. canned an employee for using the N-word in front of a black food server. Back in early November Arnold Price, a 17-year-veteran of the club, was discussing a brand of lip balm with another employee when a manager cut in to say "all the big-lipped n------ use Blistex."

A shocked Price complained to management who gave the manager a two day suspension. When that wasn't enough for Price's union, Local 6 of the Hotel Trade Council, the manager was shown the door. This isn't the club's first trouble with inter-employee relations: In 1993 it faced a $30 million lawsuit from an employee who claimed he was demoted for refusing his boss sexual favors.