Facing a projected loss of $8 billion loss this year and a need to reduce workforce numbers by 220,000 by 2015, the Postal Service has begun contract negotiations with the National Association of Letter Carriers, AFL-CIO (NALC). Contract talks with the National Postal Mail Handlers Union (NPMHU) begin Aug. 30.
The two unions represent 247,000 of the Postal Service’s 560,000 career employees.
“Wages and benefits for all employees represent nearly 80 percent of our costs,” said Tony Vegliante, chief human resources officer and executive vice president. “To remain solvent, we must negotiate contracts that address our total labor costs and enable us to downsize quickly to adjust to America’s changing mailing needs while being fair to our customers and employees.”
Over the last four fiscal years, the Postal Service has reduced its size by 110,000 career positions and saved $12 billion. Expenses, however, continue to exceed revenues, due in part to an overstaffed workforce.
Wages and benefits for NALC and NPMHU employees exceeded $15 billion and $3 billion respectively last year. Both current contracts expire Nov. 20, 2011.
The Postal Service already has negotiated a new contract with the Postal Workers Union, AFL-CIO (APWU), which is projected to save more than $3.8 billion over its four-year term.
Negotiations with the National Rural Letter Carriers’ Association, whose compensation package totaled $6 billion last year, are at an impasse and will be resolved through interest arbitration.
For more information on labor negotiations, click here.
source: USPS News Link