NPMHU AND USPS AGREE ON TWO-YEAR CONTRACT EXTENSION

TENTATIVE AGREEMENT PROVIDES GUARANTEED WAGE
INCREASES, COLA PAYMENTS, ADDED JOB SECURITY
During a nationwide conference call with all Local Union Presidents held on April 7, 2003, National President John Hegarty and National Secretary-Treasurer Mark Gardner announced that the NPMHU and the Postal Service have reached tentative agreement on a two-year extension of their 2000 National Agreement, which previously had been scheduled to expire on November 20, 2004.

The two-year extension contains two additional 1.3% general wage increases to be paid in November 2004 and November 2005, and four additional cost-of-living adjustments to be paid in March and September of both 2005 and 2006. "The extension sustains the pattern of general wage increases and full cost-of-living adjustments for an additional two years," said President Hegarty. "For a Level 4 mail handler at top step, based on current economic projections, these guaranteed wage increases should mean more than $2,300 in additional base wage increases over the two-year term of the extension - above and beyond the wage increases already set for the remainder of 2003 and 2004. It also provides tremendous peace of mind during these extremely difficult times. Given the ongoing war in Iraq, the economic downturn, the continuing deliberations of the Presidential Commission concerning the future of the Postal Service, the threat of legislative change from the Republican-controlled Congress, and recent changes to the USPS Board of Governors, among a number of other reasons, the NPMHU leadership came to the inescapable conclusion that this contract extension would best serve the interests of our membership."

The following is a summary of the tentative settlement. The actual language changes to be incorporated into the National Agreement will be circulated to all NPMHU members when they receive their ratification ballots within the next few weeks.

All items in the 2000 National Agreement will continue, with the following changes:
  1. Two additional general wage increases of 1.3% will be paid effective on November 27, 2004 and on November 26, 2005. These increases - which will be paid on top of the November 2003 general wage increase and the three COLA payments already scheduled for payment between September 2003 and September 2004 - will be calculated on the base salaries in effect on November 20, 2004, and therefore will be slightly higher than the increases received at the same levels and steps by other bargaining units that also will be receiving 1.3% increases on those dates.
  2. Four additional cost-of-living adjustments (COLAs) will paid in March 2005, September 2005, March 2006, and September 2006.
  3. All mail handlers employed as of November 20, 2000 will continue to be protected against layoff or force reduction during the two-year term of this extension. This means that, at the end of the extension in November 2006, any mail handler who was employed as of November 20, 2000 (and who works at least 20 of 26 weeks during the years covered by the 2000 National Agreement) will obtain full, lifetime job protections under the National Agreement.
  4. With regard to health care contributions, the extension agreement provides for the continuation - for an additional two years through calendar year 2007 - of the Postal Service's payment of 85% of the weighted average formula used by OPM for federal employees, with a maximum percentage of 88.75%.
  5. The extension agreement continues all other economic benefits under the 2000 National Agreement, including the current overtime program, night shift differential, and Sunday pay premium. It also increases the contract uniform allowance (to $127 per year effective November 21, 2004 and $130 effective November 21, 2005) and the work clothes program allowance (to $64 per year effective November 21, 2004 and $65 effective November 21, 2005).
  6. The extension continues the Joint Education and Training Committee, with additional funding of $1 million per year in both 2005 and 2006.
  7. The extension provides for two additional bids, so that mail handlers have a total of seven bids under the 2000 National Agreement.
  8. The extension contains a new Memorandum of Understanding entitled Workforce Repositioning. Under this MOU, the Postal Service and the Union will continue to explore various options to deal with any potential plant closings or consolidations, with the aim of ensuring that any possible dislocation and inconvenience to employees is kept to a minimum. All of the protections and requirements of Article 12 will remain in effect. Although there is nothing in the extension agreement directly addressing voluntary early retirements, this subject will continue to be discussed by the National parties. At this point in time, the Postal Service is seeking initial approval for the use of early retirements from the Office of Personnel Management with regard to APWU-represented employees, and may in the future offer such retirements, without monetary incentives, on the basis of specific geographic areas. As these matters develop, the NPMHU and the Postal Service will discuss early retirements as one option available in response to changes in the mail handler workforce.
  9. The extension also contains a new Memorandum of Understanding entitled Joint Task Force on Article 12. Under this MOU, the Postal Service and the Union will establish a specific task force, to issue findings and recommendations to address the withholding of mail handler jobs at particular postal installations, and the impact that withholding of such jobs may be having on any mail handlers who remain in those facilities, including part-time flexible employees.
As usual, the two-year extension is subject to ratification by the membership. The tentative agreement has been unanimously endorsed by the National Executive Board, which is urging all members to cast their votes in favor of ratification. Ballots will be circulated shortly, and should be received by all members at their home addresses, in accordance with voting procedures adopted by the National Executive Board. In the meantime, a full copy of the extension agreement already has been sent to all Local Union officers and representatives, and it also appears on the NPMHU Home Page at www.npmhu.org.