Union Approves Collective Bargaining Agreement in Postal Sector

In a significant development for the United States Postal Service (USPS), David Steiner, the longtime CEO of Waste Management and FedEx board member, has been named as the next Postmaster General by the bipartisan USPS board of governors. The appointment, which comes in July, was backed by President Donald Trump.

Steiner's predecessor, Louis DeJoy, resigned in March amid pressure and after the bumpy rollout of his 10-year plan to overhaul USPS received bipartisan pushback. DeJoy was designated as the Postmaster General in May, and he is set to assume office on June 15, 2020.

Meanwhile, the USPS has also announced new labor contracts with two major unions - the American Postal Workers Union (APWU) and the National Rural Letter Carriers' Association (NRLCA).

The APWU tentative agreement, which is up for a vote by members, includes annual wage increases, six full cost-of-living adjustments for career employees, no-layoff protections, 50-mile limits on excessing, elimination of some entry-level steps, restoration of one more top step in pay grades 4-7 on the lower tier pay scale, increase in uniform allowances, and more. Acting Postmaster General Doug Tulino praised the ratification of the contract, stating that it aligns with the Postal Service's mission to provide reliable, value-driven mail and package delivery service to all Americans.

The NRLCA has signed a new labor contract with USPS, effective until May 20, 2027. The contract, negotiated by a third-party arbitrator, includes three general wage increases and six COLAs for the NALC. The contract also includes new efforts to retain rural carrier associates.

Interestingly, the membership of the National Association of Letter Carriers (NALC) rejected a four-year tentative agreement in January, with 63,680 votes against and 26,304 in favor. In contrast, the ratio of votes in favor of the APWU contract was 67%. A total of 9,730 members of the NRLCA voted to approve the contract, while 4,880 voted against it.

APWU President Mark Dimondstein urged members to support the deal, while Tulino stated that the contract serves the best interest of the customers. Steiner has pledged to maintain the postal agency's independence, a commitment that is likely to be welcomed by all stakeholders.

The APWU is mailing ballots for members to vote on the three-year tentative agreement with USPS, with ballots due by July 10. The new Postmaster General, David Steiner, is expected to take charge in July, bringing fresh perspectives and strategies to lead USPS into the future.