Third postal union ratifies new labor contract

Membership of another postal union approved their collective bargaining agreement, as the U.S. Postal Service faces new leadership that could revamp recent modernization efforts that have been heavily criticized. 

The American Postal Workers Union on Thursday approved a three-year labor contract through Sept. 20, 2027, with 95% of members voting in favor. 

Union officials touted no-layoff protections, cost-of-living-adjustments and general wage increases for the next three years. 

"Every member should be very proud of this huge accomplishment," said APWU President Mark Dimondstein in a statement. "Our power at the bargaining table was driven by the strength of your solidarity and unity, the foundation of our union.”   

Due to the ratification, career employees will receive a retroactive pay increase of 1.3% effective Nov. 16, 2024, and a $395 COLA effective March 8, 2025. 

USPS also praised the agreement.

“This agreement is fair and balanced,” said acting Postmaster General and Chief Human Resources Officer Doug Tulino, in a statement. “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.” 

Members of the National Rural Letter Carriers’ Association approved their new contract in June, and a third-party arbitrator in March negotiated a deal between USPS and the National Association of Letter Carriers after that union’s membership initially rejected a tentative collective bargaining agreement. 

On July 14, David Steiner, former Waste Management CEO and FedEx board member, is set to become the new postmaster general. 

Keep US Posted, a nonprofit advocacy group that represents consumers, nonprofits and newspapers, among other entities, in a recent letter lobbied for a freeze on mailing rate increases that are slated for implementation the day before Steiner officially takes the helm of the postal agency. 

The stamp price hike is part of Delivering for America, a long-term plan from Steiner’s predecessor, Louis DeJoy, to slow some delivery and increase certain prices to promote the financial sustainability of USPS. The initiative, however, has yet to generate savings for the agency and has been slammed by postal stakeholders and congressional members of both parties.