Union endorsement for fresh postal labor agreement
New Postmaster General and Approved Labor Contracts for USPS
The United States Postal Service (USPS) has been undergoing significant changes, with the recent approval of new contracts and the appointment of a new postmaster general.
In a move that could shape the future of USPS, David Steiner, former CEO of Waste Management and a board member at FedEx, is set to take over as postmaster general on July 14. Steiner's appointment comes after the departure of Louis DeJoy, who implemented a controversial plan called Delivering for America.
Prior to Steiner's arrival, a third-party arbitrator negotiated a deal between USPS and the National Association of Letter Carriers in March. However, the initial collective bargaining agreement was rejected by the union. The National Rural Letter Carriers' Association, on the other hand, approved a new contract in June.
The American Postal Workers Union (APWU), another significant player in USPS's labour landscape, has also approved a three-year labor contract. The agreement, which was approved by 95% of APWU members, includes no-layoff protections, cost-of-living-adjustments, and general wage increases for the next three years. Career employees will receive a retroactive pay increase of 1.3% effective November 16, 2024, and a $395 cost-of-living-adjustment (COLA) effective March 8, 2025.
APWU President Mark Dimondstein praised the union's power at the bargaining table, attributing it to the strength of member solidarity and unity. Acting Postmaster General and Chief Human Resources Officer Doug Tulino also praised the agreement, stating that it is fair, balanced, and financially responsible.
Despite these positive developments, Delivering for America has yet to generate savings for the agency. The plan, which includes a stamp price hike, has been met with criticism from postal stakeholders and congressional members of both parties. Notably, the new postmaster general, David Steiner, has not yet implemented the mailing rate increases from Delivering for America.
The agreement supports USPS's mission to modernize postal operations to better serve customers and provide first-in-class service. As Steiner takes the helm, the focus will be on implementing these changes while addressing the financial challenges facing the agency.
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