PostalReporter News Blog

Postal Service Begins Labor Contract Negotiations

First of Four Unions Begin Negotiations

WASHINGTON – The U.S. Postal Service begins contract negotiations today with the largest of its four unions, the American Postal Workers Union, AFL-CIO (APWU).

The APWU represents employees who work as clerks, mechanics, vehicle drivers, custodians and some administrative positions. The current contract expires midnight, Nov. 20.

“We have worked successfully with our unions in the past to help transform the Postal Service and we hope to maintain this momentum during these negotiations,” said Anthony Vegliante, Chief Human Resources Officer and executive vice president. “Our goal is to negotiate a contract that’s fair to our customers, fair to our employees and meets our financial and operational needs.”

Three other unions represent most other postal employees. Employees represented by the National Association of Letter Carriers, AFL-CIO (NALC) deliver in metropolitan areas; National Rural Letter Carriers’ Association (NRLCA) employees deliver primarily in rural and suburban areas; and, employees represented by the National Postal Mail Handlers Union, AFL-CIO (NPMHU) work in mail processing plants and Post Offices.

Union Employees    Contract Expiration
APWU 211,000        midnight, Nov. 20, 2010

NALC 207,000        midnight, Nov. 20, 2011

NRLCA 67,000 career   midnight, Nov. 20, 2010

48,000 non-career

NPMHU 49,000       midnight, Nov. 20, 2011

Contract negotiations for the NRLCA begin September 13. The NALC and NPMHU begin negotiations next year approximately 90-days prior to the contract expiration date.

The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.

For additional background information on labor negotiations and the Postal Service’s workforce, please click on these links: Labor Negotiations and Workforce.

The U.S. Court of Appeals, Second Circuit, issued a startling decision on June 16, 2010, in Jeunes v. Potter.  The Court upheld the removal of a postal employee who “admits that he used profanity during a verbal altercation with a co-worker on October 26, 2007, conduct clearly proscribed by the zero tolerance policy.”  The Court based its decision upon Connecticut District’s version of the zero tolerance policy, which bans “any type of vulgar language which would lead to a hostile workplace.”

Jeunes also filed suit against the National Rural Letter Carriers Association , arguing that the union had failed in its duty to represent him.

The US District Court for Connecticut has ruled in favor of the union. Here are some excerpts:

On October 26, 2007, while employed at the New Fairfield Connecticut USPS branch, Plaintiff had a verbal altercation with a co-worker on the work room floor. As a result, Plaintiff was placed on an off-duty status without pay on that date and terminated effective December 27, 2007. Plaintiff and Defendant dispute what exactly occurred on October 26, 2007. The USPS notice of removal informing Plaintiff of his termination states that several witnesses heard Plaintiff making vulgar and threatening remarks to a coworker and challenging him to a fight.

Plaintiff’s co-worker informed him of a package awaiting delivery on his route. The notice of removal alleges that Plaintiff responded to his co-worker with statements such as: “why you f***ing bothering me?” “what’s your f***ing problem,” “f***ing asshole,” f***ing pussy,” and “bring it on pussy.” (Def.’s Br. Summ. J. 4.) Plaintiff admits to making some of these comments but denies others. At least two other USPS employees who witnessed the incident signed statements confirming that Plaintiff used this language and threatened violence.

The USPS has a zero tolerance policy on violence, which states: “each and every act or threat of violence from this day forward will elicit an immediate and firm response that could, depending on the severity of the incident, include removal from the Postal Service.”

Prior to this incident, Plaintiff had been disciplined four times by the USPS. The USPS has previously sought Plaintiff’s removal for failure to disclose a criminal arrest on his employment application. In addition, in 2006, Plaintiff was suspended for seven days for poor attendance. In 2007, he was suspended for fourteen days for failure to follow instruction. In 2008, he was suspended for seven days for failure to be regular in attendance, unsatisfactory work performance and failure to follow instructions. Plaintiff also has a criminal record for assault and was arrested in 2005 in connection with a domestic altercation.

Plaintiff filed a grievance protesting his October 2007 off duty placement and November 2007 removal. He refused, however, to attend counseling through the employee assistance program, stating that the program “is for crazy people.” Defendant represented Plaintiff in his grievances through step three. However, after review by Mr. Anderson and general counsel, Defendant concluded that Plaintiff had no reasonable likelihood of success at arbitration.

On July 31, 2008, Mr. Anderson wrote Plaintiff informing him of Defendant’s initial decision and his right to provide additional information. Plaintiff provided no further information, but Mr. Anderson and the general counsel’s office reviewed Plaintiff’s file again after the twentyone day period. Both offices reached the same conclusion and Plaintiff’s grievance was withdrawn on August 25, 2008.

Plaintiff’s brief in opposition to summary judgment contains conclusory allegations that Defendant’s decision not to pursue arbitration was made in bad faith and was discriminatory. However, the record does not provide any evidence to support these allegations. In fact, the record reflects a reasoned, good faith decision on the part of Defendant and a Plaintiff unhappy with the outcome of his grievance but without a legal claim. It is clear that Plaintiff does not have an absolute right to arbitration either under the CBA or federal law.

Throughout the grievance process, Plaintiff was represented by Nate Gillotti. Plaintiff admits that he was satisfied by Mr. Gillotti’s handling of his grievance from steps one through three. Plaintiff’s only complaint regarding his representation is that “they didn’t take the case to arbitration.” Plaintiff offers no examples of discriminatory conduct or even negligent representation by his Union. Instead he states, “I just didn’t like the outcome.” When asked what Defendant could have done differently to fairly represent him, Plaintiff vaguely responded that the Union should have “fought better in these [prior] grievances I would have – – I wouldn’t be fired right now.”

Furthermore, the record reflects Defendant’s thorough and competent representation of Plaintiff’s claim. Defendant took witness statements, filed the appropriate grievance forms and wrote letters on behalf of Plaintiff. Defendant followed its usual procedures before deciding to withdraw Plaintiff’s grievance from arbitration. NRLCA Director of Labor Relations Anderson and NRLCA General Counsel Gan each reviewed all material relating to Plaintiff’s case. Based on the documentation, both offices made the reasonable determination that because of Plaintiff’s hostile and threatening behavior during the incident at issue, history of discipline, refusal to engage in counseling, criminal record and the zero tolerance policy, Plaintiff’s grievance had “no reasonable likelihood of success in arbitration.” Following this determination, Plaintiff was afforded the opportunity to provide the Union with additional information or arguments. Although Plaintiff did not provide any additional information, the file was still given a fresh and second look by both Mr. Anderson and attorney Jean Marc Favreau from the general counsel’s office. This fresh look did not result in a different conclusion and Mr. Gan recommended that the case be withdraw from arbitration.

Even taking this evidence in the light most favorable to Plaintiff, there is nothing in the record from which a reasonable jury could conclude that Defendant acted arbitrarily, in bad faith or with discriminatory motives.

There is no question of fact for a jury to decide.

http://www.postalreporternews.net/2010/06/21/court-postal-workers-vulgar-language-is-sufficient-grounds-for-removal/

New ‘Family Circus’ Artwork Arrives for May 8 Promotion

The National Rural Letter Carriers’ Association (NRLCA), which has been a longtime supporter of the NALC National Food Drive in many locales across the country, has accepted an invitation by NALC President Fred Rolando to become a full national partner in the May 8 drive to “Stamp Out Hunger.”

With the new national role, NRLCA will assist NALC and the drive’s other co-sponsors in promoting the volunteer collection of non-perishable food on the second Saturday in May, encourage increased participation by rural carriers in the effort, and help deliver donations to local food banks, pantries and shelters.

NRLCA’s logo will appear on national publications and other promotional materials of the drive alongside those of the other national partners: the U.S. Postal Service; Campbell Soup Company; Valpak; the AFL-CIO; United Way Worldwide and its local United Ways; and Feeding America, the nation’s food bank network.

Announcement of the new alliance between NALC and the NRLCA came as famed newspaper cartoonists Bil and Jeff Keane again provided the drive with special artwork to help alert citizens of the May 8 collection. Hundreds of NALC branches have already registered to participate in the food drive which stands on the cusp of breaking the 1 billion-pound mark in donations over the history of the 18-year-old humanitarian effort.

As the NALC Bulletin went to press, the number of registered branches for the 2010 drive stood at 474. Branches that have not yet registered are urged to as soon as possible in order that materials can be sent to them to assist in their local drive. There is a January 25 deadline for receipt of branch registration forms.

“After several years of participating in the NALC food drive in a very limited capacity, the National Rural Letter Carriers’ Association is extremely excited by the invitation from President Rolando and the NALC to have a greater role in the NALC food drive,” Cantriel said. “We look forward to becoming a more active partner in the whole process and working closely with our brothers and sisters of the NALC for a very worthy cause.”

President Rolando, noting the severe situation that still exists in the nation’s economy and resultant jump in the number of food insecure Americans to more than 49 million, has asked all branches to redouble their efforts to surpass last year’s record collection of 73.4 million pounds, and push past the 1 billion-pound mark since the national drive began in 1993.

“There are millions and millions of fellow Americans who do not have jobs right now, or if they do, the wages are low, the benefits meager, and the security non-existent,” Rolando said. “Members of our great union have come to their aid in the past, and we must do it again. I urge all branches – however small or large – to sign up and be part of this great humanitarian effort on May 8.”

Questions regarding the food drive should be directed to Drew Von Bergen, national coordinator, at vonbergen [at]nalc.org.

source: NALC News Bulletin

APWU-represented employees will receive a 1.2 percent increase in annual salaries effective Nov. 21, based on the grades and levels in effect on Sept. 6, 2006. In accordance with the APWU National Constitution and Bylaws, the raise will result in an automatic dues increase. Locals and state organizations that wish to absorb the dues increase must notify the union’s Per Capita Department. The raise will be reflected in paychecks issued Dec. 11.

Here are the pay raise percentages for all postal workers:

APWU: 1.2%
NALC: 1.9%
NPMHU:1.2%
NRLCA:1.5%

From the National Association of Letter Carriers (NALC)

The Postal Service has negotiated agreements with the American Postal Workers Union and the National Postal Mail Handlers Union to offer cash incentives of up to $15,000 to employees in the APWU and NPMHU’s crafts to accept a Voluntary Early Retirement offer between now and November 30, 2009. The agreements (here and here) were prompted by the large financial losses incurred by the Postal Service as a result of the steep decline in mail volume due to the recession, as well as the heavy cost of pre-funding retiree health benefits. The incentives are targeted to the crafts with complements in excess of needs. A moratorium on excessing in the two unions’ crafts will be imposed until October 9. The Postal Service has not offered to negotiate a similar program for city or rural letter carriers with the NALC or the NRLCA. At present, the complements of city and rural carriers remain more closely aligned with the Postal Service’s needs to cover last-mile delivery at current mail volume. The new early-out programs should reduce the number of postal employees in other crafts excessed to the city carrier craft in the months ahead.

Postmaster General Briefing
July 14, 2009
USPS Headquarters

On Tuesday, July 14, 2009, Louis Atkins, NAPS Executive Vice President, represented NAPS at a briefing with Postmaster General Jack Potter. Also in attendance were the leaders of all of the craft unions and the other two management associations.

Postmaster General Potter briefed the attendees on the current situation facing the Postal Service:

Continued losses in volume are crippling the finances of the Postal Service. Between 2008 through 2010, the Postal Service expects that it could lose as much as 25 – 30 billion pieces of mail volume. Every time the Postal Service loses a billion pieces of mail, the Postal Service looses $ 360 million dollars in revenue at current rates.

Employees need to know that the Postal Service has already taken steps to bring our Health Benefits in line with the rest of the federal government by the agreements that were reached with the unions and management association in the last round of pay agreements by increasing the employee contribution by 1% each year.

There are no plans to have any new equipment deployments in the near future. Right now the Postal Service has enough equipment power to process all of the world’s originating mail in just six hours time.

The “Summer Sale” was explained to the attendees. Mailers who use this opportunity will be required to maintain their expected volume of mailings through October, 2009 to earn a rebate on summer mailings. Customers who simply advance their mailing cycle will not get the discount rebate.

PMG Potter then provided information on the Postal Service’s strategies for FY 2010 and beyond:

• The Postal Service needs to continue to cut costs

• Grow the Business

• Protect Liquidity

Key Strategies are expected to include:

• Continued freeze on hiring

• Additional Tour compressions

• Restructuring Delivery Routes

• Continued integration of Network Distribution Centers

• Flat Sequencing

• Station and Branch consolidations

• Further reductions in administrative positions

The Postal Service continues to stress that relief from the passage of HR 22 alone will not bring the Postal Service the financial relief that it needs and the implementation of five-day delivery is vital to the future solvency of the Postal Service.

Although there has been much discussion of the change to five day delivery, and that the change must have congressional approval and a change to the current law, it now appears that Saturday would be the day that delivery would be eliminated. In a five-day proposal, retail units would remain open on Saturday to provide service to customers.

Post Office boxes and Caller Service would also be maintained under the Postal Service’s plan. Remittance mailers could use Post Office boxes and/or Caller Service to maintain their cash flow.

Under the Postal Service’s proposal, there would be no delivery or collection of mail for city routes, rural routes or contract routes. Express Mail would continue to be delivered as it is currently.

• Mail processing would process originating mail Monday – Friday.

• Mail processing for destinating street addresses processed Monday – Friday.

• Mail processing for destinating PO Boxes and Callers Monday – Saturday.

• Mail processing for destinating remittance mail Monday – Sunday

The Postal Service is also considering options to increase the sale of non-postal items in retail units. As these plans are finalized there will be information provided to employees and the public.

PMG Potter stated that the new Priority Mail initiative with flat rate boxes is performing well and helping us improve our revenue. Employees should tell everyone they know about the benefits of the flat rate boxes’

source: http://haloscan.com/comments/rehema/deljuly1409/#463271

APWU Web News Article #079-09, July 16, 2009

The presidents of the four major postal unions have asked the White House to address the “deepening crisis” facing the Postal Service, asserting that “the Obama administration must intervene now to avoid both a political and economic train wreck.”

“The recession has had a severe impact on the Postal Service’s finances,” the union leaders wrote to White House Deputy Chief of Staff Jim Messina, “and the situation has deteriorated significantly” since they met with White House staffers in March.

A financial collapse of the nation’s mail system “would pose a dire threat to the administration’s recovery plan,” the letter said. “Fortunately, such a collapse can be averted without resort to a taxpayer bailout, by reforming the retiree health prefunding provisions of the law. The Postal Service needs immediate relief from a law adopted in 2006, which requires the Postal Service to prefund its future retiree health liabilities,” the union presidents wrote.

“No other government agency or private company in America is required to prefund at all,” they noted, “much less on such an accelerated schedule.”

Congress is attempting to find a solution with H.R. 22, the letter said, but is hindered by “questionable rules” of the Congressional Budget Office that “score” (calculate the “cost” of) intergovernmental transfers, the letter said.

“But it is increasingly clear that this legislation will not be enough to solve the crisis,” the union presidents wrote. “A policy decision must be made at the highest levels on whether it makes sense to sacrifice the future viability of the Postal Service to comply with a misguided policy devised by the previous administration that is, in any case, no longer appropriate in the current economic environment.”

“There is a need to look at long-term structural reforms to help the USPS survive in the Internet age,” the union presidents said, “but the current crisis is not the result of changing technology. Rather, it stems from two factors: the collapse of several mail-intensive sectors of the economy (housing, real estate, finance, etc.) and the excessively onerous prefunding requirements adopted in 2006. If not for the prefunding requirements, the USPS would be able to weather the economic crisis.”

Signing the letter were APWU President William Burrus, National Association of Letter Carriers President Fredric V. Rolando, National Rural Letter Carriers Association President Don Cantriel and National Postal Mail Handlers President John F. Hegarty.

According to PostCom.org

Word has it from reliable sources that the National Rural Letter Carriers Association intends to oppose the Postal Service’s proposed Standard Mail summer sale experiment. Reportedly the NRLCA is of the opinion that after having their contract mail piece counts expanded already by the Postal Service, any additional mail volume will not result in any additional rural letter carrier compensation.

From NALC.org: Contract COLA =0%

There was no projected accumulation toward the fourth regular cost-of-living adjustment (COLA) for letter carriers under the 2006-2011 National Agreement following the January 15 release of the December Consumer Price Index (CPI). The next COLA will reflect the increase in the CPI, if any, between July 2008 and January 2009, and will be payable the second full pay period following the release of the January 2009 index.

There are eight COLAs included in the 2006-2011 contract.
From APWU.org: Cost of Living Adjustment (COLA) Update

For Employees Covered by the National Agreement and the Operating Services Agreement:

In December, the Consumer Price Index (CPI-W) fell to 610.075. After the fifth month of the six-month measuring period, and assuming the next COLA were based on the December index, the fifth COLA under the 2006 National Agreement and the Operating Services Agreement would be zero. However, the next COLA will be based on the January 2009 index point and will be effective March 14, 2009.

The fourth COLA ($1,477) was effective Aug. 30, 2008 (pay period 19-2008, pay date Sept. 19, 2008).

From NEW JERSEY POSTAL AND RURAL NEWS

SPECIAL BREAKING NEWS: INTEREST ARBITRATION ISSUE
 
INTEREST ARBITRATION AWARD ISSUED
The link below is to the Award issued by the interest arbitration panel chaired by Arbitrator Herbert Fishgold as well as to the separate statement from NRLCA Arbitrator Dennis D. Clark. The Award sets the terms of the 2006-2010 USPS-NRLCA National Agreement.

Click here to view the Award and the separate statement from Arbitrator Clark

Highlights:

A- Salary increase effective 11-25-2006 1.2% increase in each step level

                              effective 11-24-2007 1.5% increase in each step level

The 2006 and 2007 step level increases will be paid as soon as practible.

                              effective 11-22-2008 1.5% increase in each step level

                              effective 11-21-2009 1.5% increase in each step level

B- Four year contract.

C-Cash payment of $686.00 for each regular carrier and proportional cash payments for other employees.

D-COLA roll-in base May 2007 with COlA roll in for RCAs February 2011

E- EMA $ 38.5 and increase of $ 07.5 over three years broken down as follows: 3 cents in January 2008, 2 cents in October 2008 and 2.5 cents in October 2009.

F- An additional 15,000 employer provided vehcles.

G- Change of address credit of 15 seconds.

H- TRC cap of 15% for each area level.

I- Employee health plan contributions will see a 2% increase in employee paid contributions for 2009, a 1% increase in 2010 and another 1%increase in 2011.

Archive: USPS, Rural Carriers Tentative Contract Agreement
USPS Press Release

Contracts Now in Place With All Four Major Postal Service Unions

A three-member arbitration panel led by neutral chairman Herbert Fishgold issued its award today, establishing the terms of the new collective bargaining agreement between the Postal Service and the National Rural Letter Carriers’ Association (NRLCA). The award establishes a four-year contract (from Nov. 20, 2006 to Nov. 20, 2010), affecting approximately 68,000 career employees and 55,000 non-career employees who deliver mail to residences and businesses on rural delivery routes.

“We are pleased to have contracts in place with all four of our major unions, bringing the 2006 labor negotiation process to an end,” said Doug Tulino, Postal Service vice president, Labor Relations.

The Postal Service and the NRLCA reached a tentative four-year contract agreement in Dec. 2006, in collective bargaining negotiations, but the two parties entered the arbitration process after the union membership failed to ratify the agreement.