Clerk Division Settles Three Major Postal Support Employee National Disputes

(This article appeared in the January/February 2026 issue of The American Postal Worker magazine)

The Clerk Division recently resolved three issues regarding Postal Support Employees (PSEs) that prompted us to ­ le Step 4 disputes. They are described below.

PSE Pretextual Separation Issue

Clerk Division Director Lamont Brooks reached an agreement with the Postal Service regarding past separations of PSEs for alleged “lack of work.” The settlement applies to Clerk Craft PSEs separated for lack of work between May 6, 2022, and the signing date of the agreement on Nov. 17, 2025.

The dispute was initiated when the Postal Service misinterpreted the contract concerning PSE cap violation provisions. The Step 4 settlement references a prior 2014 agreement that stated, “PSEs shall not be terminated in order to come into compliance with the specific cap requirements.”

The resolution provides local unions with an opportunity to “demonstrate there was adequate work available for any, or all, of the separated PSEs,” and further states, “… the PSEs will be permitted to seek reinstatement at the local level, if they have not already done so, and will be reinstated retroactively and made whole.”

Local unions will be provided with a copy of each reinstatement letter and a copy of the settlement. These documents will be mailed to the affected separated PSEs at their last known address. This will allow separated PSEs to “fully understand their options.”

“This dispute repairs the damage done to PSEs who were improperly separated as a result of the Postal Service’s violation of our collective bargaining agreement (CBA). Our local unions must step forward once they receive notification of the affected PSEs in their representational area and do their part to assist them in returning to postal employment,” Director Brooks explained.

APWU President Jonathan Smith declared, “Congratulations to Director Brooks and the Clerk Division of­ficers for a tremendous settlement. This is an important victory that will result in PSE Clerk Craft conversions and stop management’s blatant attempts at denying PSEs an opportunity to convert to career status!”

The settlement closes three separate issues: PSE Career Conversions, PSE Multiple Probationary Periods, and PSE Health Benefits.

PSE Designation of Hire

The Postal Service identified 52 employees who were initially hired as PSEs for the 2022 holiday season but were later improperly classified as a different designation of employees. The settlement permits affected employees who have since separated from the Postal Service to seek reinstatement. Those choosing reinstatement will be retroactively reclassified as PSEs.

The Postal Service “will determine whether those employees were deprived of any subsequent non-wage benefits as a result of their separations/terminations, e.g., including but not limited to conversion to career status, establishment of seniority, health insurance eligibility/contributions, life insurance eligibility/contributions, Federal Employee Retirement System (FERS) eligibility contributions, and Thrift Savings Plan (TSP) eligibility/contributions, and, if so, will take the necessary measures to make those employees whole as it relates to those nonwage subsequent benefits.”

PSEs Separation/Termination Notifications

One hundred ninety-four PSEs who were improperly issued separation/termination notices in October 2020 by Postal Service Headquarters will be allowed to seek reinstatement at the local level if they have not already done so. The reinstatement will be retroactive to October 2020. Reinstated employees will receive $3,000 in back wages. These PSEs were issued separation notices due to having zero work hours in excess of eight weeks.

They will receive letters to their addresses of record inviting them to seek reinstatement. The settlement also requires the Postal Service to determine if these employees were deprived of subsequent non-wage benefits due to their separation/termination. If applicable, this includes conversion to career status, establishment of seniority, health insurance eligibility/contributions, life insurance eligibility/contributions, FERS eligibility/ contributions, and TSP eligibility/contributions.

NOTE: The letter to affected employees offering reinstatement will be to career status. This could mean full-time or part-time flex (PTF), depending on the size of the office.