USPS, letter carriers head to mediation for new contract

A mail carrier prepares to make deliveries in a residential neighborhood of Los Angeles in March 2026. (Photo: Shutterstock/Pamela Brick)

Negotiations between the U.S. Postal Service and the union representing its largest group of letter carriers on a new collective bargaining agreement have entered a 60-day mandatory mediation period after the current contract expired on Friday.

Representatives for the National Association of Letter Carriers and the Postal Service were unable to finalize a deal during talks in Washington last, the union said in a press release. The existing contract will remain in effect until a new negotiated or arbitrated agreement takes effect. NALC represents 295,000 current and retired delivery workers.

If no agreement is reached during legally-mandated mediation, unresolved issues will be addressed through an arbitration process, which could result in a final and binding decision. The parties will select a neutral arbitrator to chair an arbitration board that would also include one management and one union arbitrator.

“While good-faith bargaining with our counterparts from the Postal Service has brought progress in some areas, we have not yet reached agreement on terms that we believe properly reward NALC members for their hard work and value to the Postal Service. We are confident that both sides of the table will continue to productively engage throughout the 60-day mediation period. We will do everything we can to reach agreement but are fully prepared to use the interest arbitration process if necessary to resolve any remaining differences,” said NALC President Brian Renfroe.

The labor talks are taking place as the Postal Service continues to pile up huge amounts of debt. The national post recorded a $2 billion loss during the second quarter on the heels of a $9 billion loss during fiscal year 2025. Postal workers are not allowed by law to strike, but a frustrated workforce could result in service deterioration as the organization strives to increase revenues.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

US Postal Service reduces operating loss to $642M

Upcoming FreightWaves Events
AI

Supply Chain AI Symposium

Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.

July 15, 2026
The Old Post • Chicago, IL
Register Now
Rail

Future of Rail Symposium

Reshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.

July 28, 2026
The Signal at Chattanooga Choo Choo • Chattanooga TN
Register Now
FreightTech

F3: Future of Freight Festival

Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.

October 27, 2026 – October 28, 2026
The Signal at Chattanooga Choo Choo • Chattanooga, TN
Register Now
AI Supply Chain AI Symposium Jul 15 • The Old Post • Chicago, IL

Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.

The Old Post • Chicago, IL Register Now
Rail Future of Rail Symposium Jul 28 • The Signal at Chattanooga Choo Choo • Chattanooga TN

Reshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.

The Signal at Chattanooga Choo Choo • Chattanooga TN Register Now
FreightTech F3: Future of Freight Festival Oct 27 – Oct 28 • The Signal at Chattanooga Choo Choo • Chattanooga, TN

Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.

The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now

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