Kelly Girl Arbitration Award To Cost USPS Millions

“Kelly Girl” Award Is Issued – $19,717,431.00 plus $128,142.74 in lost union dues.  Payout not to exceed $9,694 will be made individually to 2,034 Clerks

From reader:

It was just announced by the Arizona local APWU that the arbitrator has awarded the union  nearly $20 million ($19.7+). The PO had they’re chance to settle on a dollar amount but balked, so it was sent back to the arbitrator to settle it for them.
No word on what they could have settled at. This concerned people who  worked at Postal call centers and jobs that were contracted to Kelly Girl temp services.
Between this case the Mail Handlers, and MVS grievance wins the PO will have paid out nearly $36 million within the last year and a half alone.

 Kelly Girl Award Dated August 7, 2007 (PDF)

Note: According to National APWU, ”  management has informed the APWU that the contract with Manpower for casuals terminated on April 30, 2007. There is only one office, nationwide, that is still reporting the use of Manpower temporary employees and we are informed that is a temporary situation.

Brief synopsis of Kelly case from the Phoenix, Arizona APWU :


The Phoenix Metro Area Local has just received the arbitration award regarding the “Kelly Girl” case.  Arbitrator Henderson ruled the Employer violated the Collective Bargaining Agreement when it hired over 200 “Kelly Girl” employees to work at the Phoenix Telephone Center in April 1996.  The Center remained open for just over 3 years.  The APWU argued the Telephone Center should have been staffed by Level 6 Phoenix Clerks.  The arbitrator agreed with the Union.

The arbitrator has ordered the Employer and APWU to begin the process of settlement.  Steven Zamanakos, National Business Agent, will reach out to Area Management in an effort to resolve the remedy portion in a way that is fair to Phoenix Clerks who worked during this period. 

Related link: Previous National Level Award on Kelly Girl

48 thoughts on “Kelly Girl Arbitration Award To Cost USPS Millions

  1. I heard that retired employee should be receiving money in the next wave. Has anyone heard anything else, any retired employees get any money? When is that next wave? Any info would be appreciated.

  2. Isn’t that the truth. There is no information at all being given to those that did not get paid (ie retirees), from the post office or the union. No information about that last hearing. You would think there would be a link somewhere with updated information. They should have attached a provision for timely dissemination of information and interest penalities for delays. Oh no, I apologize for thinking the po would treat employees with dignity and respect. Retiring does that to your mind set…makes you think like a normal human being again.

  3. Finally the call center settlement has arrived for working employees. When, if at all, will recent retirees receive their settlement?

  4. wow just saw the update. The union wasn’t contacted about the payments to some? What’s up with that? I am sure the PO did not start paying out of the goodness of their heart. Union stewards were awful hush hush about it today. One would say yes we were getting paid this week and another would say no. Then turn around and tell someone else yes. WHATS UP!!!!!!!!

  5. Well…September 25, 2009 has come and gone and we have received no news regarding the decision as to whether or not Arbitrator Henderson will be allowed to clarify his award….. Why does this Union bother posting a flyer with a date on it when they dont intend to follow through with an update? So tell us….what was the outcome of the hearing that was supposed to have taken place on Friday, Septemember 25, 2009????? or at least tell us how much longer we have to wait before you decide to share this information with the CONCERNED members……???

  6. HEY!!! Who was that “Key witness for Management” anyway? This case has already been tried how many times? So now the Arbitrator is out of the picture and the lawyers are going to try to work something out? Hmmmmmmmmm…why does this sound SO MUCH like the way our grievances are settled…where Management and Union go behind closed doors and work out a “deal” which NEVER favors the grievant but only Management and/or the Union official? Frankly, I NEVER expect to see a cent of this award. Oh, wait a minute, I NEVER DID!!!

  7. The witness that was unavailable has since then retired and cant be found.Hmmmmmmmmmmmmm this is begining to sound like a movie of the week.I cant wait until the next episode.

  8. Now a certain union official said that the April 7th meeting with the arbitrator was no big deal but that the first week of May the lawyers for both sides are meeting to try and work something out. Hmmmmm! That oughta work out well. Did they just post that announcement to get us off their backs? Good question.

  9. Nobody in Management is that important to stop this meeting. Just drag in another slug. They lost they know it now they are just dragging it out. I just hope this union has the guts to finish it. DO NOT COMPROMISE! SETTLE FOR NOTHING LESS THAN THE ORIGINAL AWARD……………….

  10. April General Meeting has been changed to Wednesday, April 22, 2009 at 7pm – All union members should try to attend this meeting, if you realy care.

  11. We all need to get together and go down to the next union meeting and ask questions about what realy is going on. If we dont take control of our union they (our elected officials) are going to continue to do nothing. Remember they are supposed to be working us. A petition to de-certify this Union sounds like a good idea!!!!!
    We need change now.

  12. hey, surprise, surprise!!! it is delayed AGAIN!!! Management Witness is unavailable. Wow, and that’s all thats being said. JUST ANOTHER DAMN DELAY!!! I’m sick of it.

  13. Everyone I work with is tired of waiting for this settlement money. Some take it out on the union that fought to get the settlement in the first place. I rarely hear anger towards management that is refusing to pay.
    Pretty much whenever “Kelly Girl money” is mentioned, everyone has a pretty good laugh like “right, I’ll see it in my lifetime.”

  14. wow, have you seen the new posting on the apwu website. It shows the court docs they filed against po for non compliance. Filed June 6,2008 and they finally post it. But not much info. I sure hope this transfers to our kids. Or grandkids. LOL If there even is a Post Office. Tragic!!!!!

  15. The only other time you see ANY officials is during Election time. Someone needs to tell them not to bother showing up during the next election…THERE IS NO WAY ANY OF THEM WILL BE RE-ELECTED AFTER THIS FISACO!!! Time for ALL of them to return to CRAFT! HAHAHAHAHA….hope they work with ME!!!! Oh wait, that’s right, they’ll probably go into Management where they’ve been all along, although that might be real difficult now due to all the cutbacks!!! HAHAHAHAHA TIME TO ACCEPT THE EARLY OUTS!!!

  16. Hmmmmm… you wouldn’t happen to be referring to our WONDERFUL President Marylou Pavoggi would you? What a JOKE!:-D

  17. If you ask a certain union official about the grievance she’ll just laugh. A rumor of a November payoff was met with just that laugh. That union official was asked if there was any truth to it. And an answer of “I really doubt it”. The only time you see ANY officials is when there is a retirement or threat of quitting the union. Hmmmm!!!!!

  18. Hey Renee Breeden (Clerk Craft Director)Do you have anything to say to the clerks that your suppose to represent about the call center grievance. The last time we heard from you was about some bass fishing tournament! Why not come out of hiding and do what you were elected to do? REPRESENT THE CLERKS!Does any elected official of this union have any guts? When is the next fishing tournament? That should be big news in the HEATWAVE!

  19. A pretty new t-shirt we waited how long for? and how much whining was done by this Union about the increased cost of the t-shirts? how much do i pay each pay period in dues? think i’ll just quit and use that dues money to buy my own t-shirts!

  20. Just show me where to sign. They don’t seem to get anything done. Even the most obvious grievances are taking over a year to settle. And I think management and the union are in a TWIN bed together. WE NEED A CHANGE!!!

  21. What do you expect when you have a Union that is dominated and controlled by Management? The clerks in Phoenix need to file charges with the National Labor Relations Board for unfair Labor practices against BOTH the Union AND Management! In addition, Bargaining in Bad Faith charges should be brought against BOTH. We could also file a petition to de-certify this Union and then we wouldn’t even have to wait one term!!!!:-)

  22. It’s pretty clear the union botched this case,The arbitrators decision was poorly written and management is loving it. A law suit should be filed with the The Board of Labor against both the APWU and the USPS seeking interest on this award! This is one way to get the attention this case needs. Also local APWU officers you are one term and done! DISCUSTED IN PHOENIX

  23. The USPS owes the clerks in Phoenix the amount of $19,717,431 for their violation of the Collective Bargaining Agreement. Why in the world would they (the USPS) care how the APWU decides to distribute the award? If the clerks have problem with the amount they recieve then they can take it up with the APWU. The USPS needs to pay for their violation and let the APWU and the clerks take it from there!

  24. It’s now the middle of June and still nothing…
    Seems as if the APWU is hoping the clerks in PHX will just forget about this case and the award monies that were promised to forthcoming MANY times.
    Regarding Dave’s comment about the FAA, I’m sorry, but I do believe the Arbitrator DID render a definite award of $19,717,431 which was calculated based upon the number of Kelly Girls working during the period of violation by the USPS and the number of hours they worked.
    Bottom line, the USPS owes the clerks in Phoenix the amount of $19,717,431. At the end of the Arbitrators decision, he states ‘The Union is solely responsible for the designation of the recipients of the payments to be paid in resolution of this arbitration.’What is the problem?

    While I have yet to be able to find the by-law regarding payment to retirees that dave refers to, it seems to me that if the APWU is solely responsible for the designation of the recipients of the award and want to include the retirees, they should not be barred from doing so. Either way, the amount of the award does not change… However, the APWU has told us that the USPS wants the award reduced by nearly $8 million. I don’t get it!

    Does anyone besides me suspect something funny might be going on?
    How much interest would $19,717,431 earn if it were put into a high interest account for even one year?
    It will be one year on August 7, 2007 since the Aritrator made his decision.

    How ironic is it that Arbitrator Henderson also stated at the end of the award:
    ‘The Postal Service will process the payments as expeditiously as possible’

  25. Well, again rumors are flying. We have heard that the APWU wrote this grievance so poorly and without specifics that now if this is ever awarded the APWU is in for a major class action lawsuit. So now this grievance is at the bottom of the pile. A union official stated that arbitrations are so backlogged that since this doesn’t affect everyone it is NOT a priority. Is it that the union doesn’t want it to settle? Hmmm! We got an update on 3-06-08 and just what have we heard since. I do believe NOTHING! Way to keep us informed.

  26. The Federal Arbitration Act (FAA) allows parties four (4) bases to review an arbitral award. The fourth states,”the arbitrators…failed to render a…definite award.” This has been upheld in court (Coast Trading Co. v. Pacific Molasses Co., 681 F.2d 1195, 1198 (9th Cir. 1982) which vacated an award based upon, “awarded remedies barred by the agreement.”
    The APWU has itself contended that the original wording of the award violated it’s own by-laws regarding payments to retirees. The PO says the agreement is to pay only current employees.
    I think it will be awhile before any award is forthcoming.

  27. Another delay. Grievances have been settled and paid all over the country since this grievance was “WON” but still another delay. And why isn’t the union saying anything. We were told we would hear by the end of February and all I have heard is it is delayed, AGAIN! Its been 1 year since we heard we won this grievance. Maybe the union in writing the original grievance should have been more thorough and we wouldn’t have these delays. Management can’t be all to blame.

  28. It is now nearing the end of January and the clerks in Phoenix have yet to see a dime! Seems as if the list of eligible clerks was not presented to the Arbitrator by the APWU prior to him rendering his decision on August 7, 2007.
    Therefore the Arbitrator based his decision solely on the 1996 seniority list which was the only list admitted into evidence. When the APWU submitted their list to the Postal Service in September 2007, they included employees hired in 1997 thru 1999 as well as retirees. These employees were not included in the Arbitrators original decision and so the Postal Service is denying payment to these employees. A SECOND brief is to be submitted by the end of the week and then the Arbitrator has 30 days to make a ruling. We have been told that we should hear something by the end of February. My only question is: Why didn’t our APWU submitt the list of eligible employees to the Arbitrator prior to him rendering his decision on August 7, 2007? thereby avoiding all these delays and additional arbitrations? To date, I have not gotten an answer to this question.

  29. Maybe they should take these settlement payments from the retirement funds of those causing the violations. Hopefully that would get rid of their ” I don’t care if it’s wrong, grieve it” Attitudes I bet there would be NO infractions then. Make THEM pay not the consumers.Just a thought


  31. USPS has paid out hundreds of millions of dollars for the “in lieu of” settlements, and yet they dont care, because, as usual, no one is held accountable. We have slapped management for millions in Michigan, yet they still continue to be way over the caps for use of casuals, and they claim labor costs… ha ha…

  32. First, I would like to say that I agree that scabs shouldn’t receive a dime. I understand that the APWU must represent them but I feel it should be limited to disciplinary issues and maybe simple things like OTDL bypasses. Second, this issue at hand here is not whether or not we are overpaid, the issue is the fact that the USPS contracted out our work. If the union doesn’t fight for our jobs and our future, who will? The union must grieve these cases or we will all become expendable. The union has such big issues that they must face on a daily basis and unfortunately, they must waste their time dealing with non-dues paying employees. I was a steward for the Phoenix Metro Area Local from March 1999 through Oct. 2005. I found that most of the people complaining or in some kind of trouble were the scabs. Our representatives did an outstanding job on this case. Thank you Steve Zamanakos, JoAnn Gerhart, and Renee Breeden, plus anyone that I forgot to name.

  33. Sounds like “Workerant” is both a scab and a former Kelly girl. Too bad for you on both of those choices. You should get what you contribute…. nothing. I hope sometime soon the APWU will find a way to keep SCABS from collecting monetary settlements. Management is NOT accountable for making costly bad decisions and as long as upper management continues to let them… then keep on sending the career employees BIG settlement checks… I’ll just keep laughing all the way to the bank !!!!! A GREAT job by our devoted APWU rep’s for a huge pay out to the proud members of the Phoenix Metro Area Local !
    Thank You !!

  34. This is so awesome! My Chief Steward and I are working on a grievance against USPS for hiring casuals “in lieu of” career employees. Let’s all keep fighting for what is right and rightfully ours!! JUST AWESOME!

  35. Another great acheivement for APWU. You never hear this type WIN from NALC. With all of the
    contracting out going on in the carrier craft you would think a good settlemnt like this would come up but it never does. Hey Young ,
    we should be represented by APWU. You need to
    think about a merger.

  36. When will custodians receive their cash remedy from the MS47 ruling, it’s been a long wait. My 1188 is ready.

  37. Sounds like we need to increase PCES pay to ensure more disasterous decisions like this (and CSBCS staffing, and CDS routes, etc…) don;t happen!!??

    As long as our customers pick up the tab regardless, and none of the EL&R and PCES dummies that made this decision suffer the consequences they would if they were in private industry, it will continue.

  38. When Priority Mail started, the entire network was contracted out. It ended up being a disaster. So bad in fact USPS had to sue to get out of that contract. The contractor’s “cheap” labor was ridiculously incompetent and the contractor itself was found to be artificially inflating numbers to bilk the PO out of money they didn’t earn.
    YOU GET WHAT YOU PAY FOR. When you offer a decent compensation, you get a decent employee.
    B, you ask who complains about being “overpaid”?
    When this award notice was posted in Phoenix, I overheard one of the non members say “Great, more money we don’t deserve”. So these people do exist, and they all seem to be non union members – they hate themselves I guess…

  39. hey ant, this isn’t a sweatshop, it’s the postal service. why do you think postal labor unionized in the first place? if you don’t like the collectively bargained wage scale, then why don’t YOU go work for this Kelly Girls making $7.00 an hour? NO? yeah, i didn’t think so..i think your missing the point that the whole reason why laborers unionized, in the first place is because low wages, no benefits, shabby working conditions, and unfair treatment from management….you r probably one o those non-due paying leeches that doesn’t support the union, but doesn’t hesitate to enjoy the benifits negotiated for your craft…..or you are probably a member of management or maybe even one o those sycophantic 204b’s that we gotta deal with everyday… case you haven’t heard, contracting has proven not to be cost effective or operationally efficient. uh, wasn’t that a contributing factor to the horrible conditions at the Walter Reed VA hospital. also, i believe the postal aervice has tried contracting out and it was a miserable disaster!!!!! also, federal sector jobs should not be diced up and handed out to a bunch o private companies. all this contractin business is just an attempt of a bunch o rich powerful people drooling over the money that they want to suck out of the post office and a strategy to undermine the unions. WELL, I GOT NEWS FOR MANAGEMENT!!!YOU CAN’T CLOSE UP SHOP AND OUTSOURCE OUR WORK TO SOME THIRD WORLD COUNTRY TO EXPLOIT THE LABOR THERE!!!!THIS IS THE “U.S. POSTAL SERVICE!!!!!!!ANOTHER THING THE AMERICAN PUBLIC SHOULD BE ASHAMED THAT WE HAVE VETERANS COMING HOME FROM THE WAR AND FINDING OUT THAT THEY LOST THEIR JOB BECAUSE IT WAS OUTSOURCED!!!!!!!!NOT ONLY THAT, WHAT ABOUT VET’S PREFERENCE!!!!!!!!!EVEN IF VETERAN’S TAKE THE TEST AND ARE PUT ON THE HIRING REGISTER, THEY PROBABLY AREN’T GETTING HIRED ON BECAUSE OF ALL THE MANPOWER/CASUAL EMPLOYEES PERFORMING BARGAINING UNIT WORK!!!!!!!!!BOTTOM-LINE I DOUBT VERY SERIOUSLY THAT YOU WORK FOR $7.00/HR AND IF THE KELLY GIRLS WORKERS HAD A CHOICE BETWEEN UNION NEGOTIATED WAGES AND THEIR CURRENT WAGES, I WOULD BET MONEY THAT THEY WOULD CHOOSE THE UNION WAGES/BENEFITS. IF THEY WOULDN’T THEN THAT IS JUST DOWN RIGHT CRAZY!!!!!!!!A FAIR DAYS LABOR FOR A FAIR DAYS WAGE, THINK ABOUT HOW MUCH PROFIT IS GENERATED FROM THE PRODUCTIVITY OF UNION CRAFT EMPLOYEES…..IT COULD JUST AS EASILY BE SAID THAT IF THOSE KELLY GIRL EMPLOYEES ARE PERFORMING CRAFT WORK THAT WAS NEGOTIATED TO A CERTAIN WAGE SCALE THEN, GUESS WHAT, YEAH THAT’S RIGHT, THEY ARE JUST BEING EXPLOITED. OH YEAH BY THE WAY, ARE YOU ACTUALLY COMPLAINING ABOUT BEING “OVER” PAID?????WHAT KINDA IDIOT DOES THAT? GET A LIFE WORKER ANT!!!!

  40. wait till they have to pay for the outsourcing of our airmail facilities to THS which they are doing right now.When that cash comes in about seven years from now it will make 20 million look like child

  41. Level 6 clerks are no more skilled than untrained Kelly Girls at at $7 per hour. Invest this wisely as you just put another nail in your coffin. More contractors needed. You have proven how overpaid we are.

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