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USPS Contract Arbitration: Union Rejects Agreement, Pushing for Higher Pay, Allowances

USPS contract, union, arbitration, postal workers, pay raise, uniform allowance, career jobs

USPS and Union Arbitration: Breaking Down the Impasse

Background

The United States Postal Service (USPS) and the National Association of Letter Carriers (NALC), the union representing its members, have been engaged in contentious contract negotiations. After union members overwhelmingly rejected a proposed bargaining agreement, the next step in the impasse is arbitration in court.

Union Demands

The NALC, representing 295,000 active and retired letter carriers, has outlined several key concerns that they sought to address in the latest contract.

  • General annual pay raise: The union demands a pay increase higher than the 1.3% increase included in the rejected contract.
  • Uniform allowances: Members are pushing for increased uniform allowances to offset rising inflation.
  • Non-career to career positions: The union advocates for converting non-career positions to career jobs, providing greater job security and benefits.

Rejection of Proposed Contract

In November 2022, union members voted overwhelmingly to reject the proposed contract, with 63,680 votes against and 26,304 votes in favor. Following this rejection, the postal service reopened negotiations for 15 days.

Failed Negotiations and Arbitration

Despite the extended negotiations, the two parties were unable to reach an agreement. As per federal regulations, when negotiations between federal workers and their employers fail, the next step is arbitration.

Arbitration Process

Arbitration involves a three-person panel consisting of a neutral arbitrator, a representative selected by the postal service, and a representative selected by the union. During the process, both parties will present their arguments, expert testimonies, and evidence to the panel.

The panel’s decision will be final and binding, setting the terms and conditions of the new contract.

Union’s Position

NALC President Brian L. Renfroe emphasized that while some progress was made during the 15-day extension, it was insufficient to produce a fair contract for union members. The union remains determined to pursue their demands through arbitration.

Previous Contract Negotiations

The last USPS contract was negotiated in 2018, with a term of four years. Since then, the union has expressed concerns about the rising cost of living and the need for increased compensation and benefits.

Impact of Arbitration

The arbitration process is expected to take several months. The outcome will have significant implications for USPS employees, affecting their pay, benefits, and working conditions.

Additional Points

  • Federal workers are legally prohibited from striking, hence arbitration is the designated process for resolving disputes when negotiations fail.
  • Arbitrator Dennis R. Nolan will chair the arbitration panel.
  • NALC President Renfroe has expressed the union’s resolve to "fight like hell" during arbitration.
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