The National Association of Letter Carriers (NALC) has rejected a tentative labor contract with the U.S. Postal Service (USPS), marking a major setback in negotiations.
The vote was overwhelmingly against the deal, with 63,680 members opposing it compared to 26,304 in favor.
Why Did Letter Carriers Reject the Deal?
The tentative agreement covered the 2023-2026 contract and included:
- 1.3% annual pay raises for November 2023, 2024, and 2025.
- Retroactive cost-of-living adjustments (COLAs), with three lump sum payments.
- Additional COLAs scheduled for March and September.
However, letter carriers were vocal on social media, expressing frustration that these raises did not reflect the increasing workload and job demands.
What Do Letter Carriers Want?
Grassroots groups within the union, including Build a Fighting NALC, have pushed for:
- $30 starting pay for city letter carriers.
- An end to mandatory overtime.
- Full COLAs for all bargaining unit members.
What Happens Next?
- NALC and USPS have 15 days to return to the bargaining table.
- If no new agreement is reached, a third-party arbitrator will finalize the contract terms.
How Does USPS Compare to Private Sector Jobs?
- Letter carriers make 80-82% of equivalent UPS wages at the lower end of the pay scale.
- Senior USPS letter carriers earn about 87-88% of a comparable UPS employee’s wages.
- USPS does offer a stronger benefits package, but wages remain a key concern.
Financial Challenges
USPS faces a $9.5 billion net loss for fiscal year 2024, which could impact negotiations and arbitration outcomes. Historically, when USPS is in better financial shape, arbitration tends to favor letter carriers.
What’s Next for the NALC?
With the contract rejected, negotiations will resume, but tensions within the union are rising. Mike Caref, a national business agent and vocal critic of the rejected deal, is challenging NALC President Brian Renfroe in upcoming union elections, signaling internal divisions.
Bottom Line
Letter carriers made it clear that the deal wasn’t good enough, and they are willing to push for better terms. Whether through negotiation or arbitration, the outcome of this dispute could reshape pay and working conditions for tens of thousands of postal workers.
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