Large union, U.S. Postal Service finalize 3-year contract

Deal balances worker benefits, operational needs

A new contract provides wage and cost-of-living increases to nearly 200,000 postal workers, including clerks, mechanics and drivers. (Photo: USPS)
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Key Takeaways:

  • The American Postal Workers Union (APWU) ratified a new three-year contract with the U.S. Postal Service, covering wage increases, cost-of-living adjustments, and other benefits.
  • The contract, approved by 95% of voting members, includes a first night-work differential increase in 30 years and protects against layoffs.
  • While the contract is seen as fair by both the union and the Postal Service, voter turnout was low, raising concerns about worker apathy.
  • The agreement aims to modernize postal operations and improve service while addressing financial responsibility.
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The American Postal Workers Union, which represents more than 190,000 clerks, mechanics, vehicle drivers, custodians and administrative personnel, has ratified a new three-year labor contract with the U.S. Postal Service that will run through Sept. 20, 2027.

The deal covers annual general wage increases, full semi-annual cost-of-living adjustments, recruitment and retention, work rule changes, the first differential increase for night work in 30 years, and use of postal support employees to provide the agency operational flexibility.

The contract was approved last week by 95% of members who voted, but turnout was low with only about 36,000 members participating, according to APWU figures. A letter carrier, who spoke on condition of anonymity and is represented by a different union, said voter apathy is increasingly common with some workers believing their vote doesn’t count or disillusioned with their leadership.

“This contract, with no givebacks or concessions, provides a strong foundation for us to build on in the years to come,” said APWU President Mark Dimondstein in a news release.  “At a time when government workers are facing layoffs and attacks on their union rights, this contract will protect postal workers through the turbulent years ahead.” Dimonstein signed the final contract on Friday.

The union, which is affiliated with the AFL-CIO, said the contract protects previous gains, including protections against layoffs, regular step increases and an automatic conversion for temporary workers to permanent status after two years.

Groups that want to keep down Postal Service costs, such as bulk mailers and small-government advocates, sometimes point to APWU jobs as a savings opportunity because clerks who handle bulk loads and sort mail make more money than counterparts at FedEx or UPS, where warehouse work is considered an entry-level job. Clerks, however, work in a variety of areas, including retail sales at post offices, call centers and administration.

“This agreement is fair and balanced. It addresses both parties’ bargaining objectives in a financially responsible manner, and importantly, supports our mission to modernize postal operations to better serve the needs of our customers and provide first-in-class service,” said acting postmaster general Doug Tulino, in a statement. 


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Eric Kulisch

Eric is the Parcel and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He was runner up for News Journalist and Supply Chain Journalist of the Year in the Seahorse Freight Association's 2024 journalism award competition. In December 2022, Eric was voted runner up for Air Cargo Journalist. He won the group's Environmental Journalist of the Year award in 2014 and was the 2013 Supply Chain Journalist of the Year. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com