We Have a New Union Contract!!

The big news is in – 200,000 postal workers represented by the APWU have a new union contract!

Neutral Arbitrator and Interest Arbitration Panel Chair Stephen Goldberg issued his binding decision on the terms of the new union contract between the American Postal Workers Union and the United States Postal Service.

The Award was the product of 20 months of preparation, member and local union input, negotiations, mediation, a strong contract campaign and a well-prepared and presented arbitration case. Thirty-two workers testified about their work. Officers and subject matter experts testified for the union. A team of economists presented our case and rebutted management’s presentations for union concessions.

“No interest arbitration is ever totally in favor of one side or the other,” said APWU President Mark Dimondstein. “But we have achieved a number of our major goals including retroactive annual pay raises, maintaining of full (and retroactive) COLA, narrowing the gap between the lower and higher career pay scales, the career conversions of thousands of PSEs and maintaining tremendous job security. We should all be proud to be union!”

“We also succeeded in stopping management’s deeply concessionary demands to end no-lay protections, increase percentages of non-career employees and create a new lower third tier of career employees,” shared Industrial Relations Director Vance Zimmerman. “I want to thank the many officers, witnesses, staff, attorneys, specialists and the members for their many efforts in this long battle that helped bring it to a strong conclusion.”

Unless specifically changed by this Award, all rights and benefits in the previous contract carry forward into the new one. These include seniority and bidding rights, protections against unjust discipline, the grievance procedure, annual and sick leave, holiday and overtime pay, health and safety protections and so many of the important rights and benefits won over many decades of struggle.

Click here to read the full award. Below, after the video, are the highlights and significant changes contained in the Award.  

Step Increases

APWU argued for the return of higher steps to the lower tier schedule. In response, Arbitrator Goldberg narrowed the gap in the two-tier career pay schedules by adding additional top steps in Grades 5-8 for employees hired after May 23, 2011 (There is no lower tier for Grades 9 and above).

• Grade 5: One additional top Step Increase (Step K).
• Grade 6-7: Two additional top Step Increases (Steps K & L).
• Grade 8: Two additional Step Increases (Steps L & M).
• Depending on Grade, each additional step increase approximates $1,000 per year based on full-time straight-time hours of work.

PSE Wage Increases

Since PSEs do not receive COLAs, they receive larger annual general increases:

• 2.3% effective November 24, 2018 (retroactive)
• 2.1% effective November 23, 2019 (retroactive)
• 2.0% effective November 21, 2020

PSEs will receive an additional forty cents per hour raise as follows:

• $.20 per hour effective May 23, 2020, and
• $.20 per hour effective May 22, 2021.

Over the life of the Agreement a Level 6 PSE pay will rise from the $17.19 to $18.69 per hour.

Career Employee Health Benefits

The FEHB Health Plans and benefits remain in effect for career employees.

• No change in employee share of premiums in 2019 and 2020.
• In 2021, the USPS contribution level for health premiums will be reduced from 73% to 72% and then remain the same in 2022. 72% is the share federal agencies pay for federal employees and the Postal Service pays for annuitants and EAS employees. This 1% shift represents a cost to an employee of between $75 and $165 per year depending upon health plan options.
• The USPS contribution level of 95% of the weighted average to the APWU Consumer Driven Health Plan option will remain in effect for 2021 and 2022.

PSE Health Benefits

Improvements in USPS payments of PSE Health Insurance premiums gained in a June 13, 2018 grievance settlement will be incorporated into the Collective Bargaining Agreement. Specifically, the Postal Service will make a bi-weekly contribution equal to 65% of the total premium in the USPS Non-career Health Care Plan for either self plus one or family coverage during a PSE’s initial year of PSE employment. And thereafter 75% of the total premium for either self plus one or family coverage. PSE share of premiums can be made on a pre-tax basis. The Postal Service will continue to contribute 75% of the total premium for PSEs electing the APWU Consumer Driven Plan in FEHB.

The union and management are meeting to determine the exact dates when the new pay rates will be reflected in the paychecks and the date when workers will receive the backpay retroactive checks. 

The national APWU will be printing and mailing an updated version of the new union contract to every member as soon as possible.