Last month the Postmaster General Pat Donahoe sent a letter to the Mail Handlers Union asking it to reopen the recently concluded contract negotiations with an eye to extracting more financial concessions from postal workers. The answer from the union was delivered this week, and it’s the same response Donahoe received from the other unions and management associations: “no thanks”.

Here’s the text of Mail Handler Union President John Hegarty’s reply to the PMG:

This is in response to your letter dated April 16, 2013, in which you request that “we reopen negotiations as soon as possible to address the potential for further cost reductions.”

The NPMHU must politely decline your request. As you know, the NPMHU and USPS just concluded a lengthy round of collective bargaining, ending in binding interest arbitration. The arbitrator (as always) took into account the financial condition of the Postal Service, and awarded a contract with substantial cost savings to the USPS. The Postal Service has just begun to implement the award, and as it does the savings will increase over time. The NPMHU therefore believes that to reopen negotiations only two months after issuance of a binding arbitration award would send the wrong message to the dedicated mail handlers working for the Postal Service, and would corrupt the collective bargaining process for future rounds of bargaining.

While we are always willing to work with the Postal Service to achieve cost savings, and to find new revenue streams, we cannot accommodate your request to reopen contract negotiations. Mail handlers already have contributed to the recent financial restructuring of the Postal Service; it is now up to Congress to authorize additional rate increases, to return the Postal Service’s pension overpayments, and to eliminate the onerous financial obligations imposed by the PAEA.

Mailhandlers Union President John Hegarty letter to the PMG.

(February 19, 2013)  Earlier today, the three-member arbitration panel established to determine the terms of the 2011 National Agreement between the National Postal Mail Handlers Union and the U.S. Postal Service released its Award.  The Award is dated February 15, 2013, and is effective on that day, but was not released until today, Tuesday, February 19, 2013.  The panel awarded a contract which runs for four and one-half years, from November 21, 2011 through May 20, 2016.  A copy of the full Award, covering seventy-two pages, is available, below, as a PDF attachment.

The Award fully protects the jobs and careers and living standards of all 42,000 career mail handlers now employed by the Postal Service.  After a two-year wage freeze, it restores, starting in November 2013 and continuing through May 2016, the historic pattern of annual general wage increases and semi-annual cost-of-living adjustments for all current mail handlers.  In particular, the Award contains three general wage increases for all career employees – 1.0% in November 2013, 1.5% in November 2014, and 1.0% in November 2015 – as well as seven COLAs to be paid from March 2014 through March 2016.  These wage and COLA increases follow the pattern previously established by the negotiated contract governing the American Postal Workers Union, and by the arbitrated contracts governing the National Rural Letter Carriers Association and the National Association of Letter Carriers.

The Award also continues the pattern, starting next year, of increasing employee contributions toward health insurance by 1% per year; and it includes, effective immediately, a small upward adjustment in night shift differential (of 7 cents per hour) and of clothing allowance.  The Award also provides full no-layoff protection, consistent with prior practice, for any and all career mail handlers hired on or before November 20, 2011.

At the same time, the Award substantially changes the workforce that will be allowed to perform mail handler work in the future.  In the larger facilities, all part-time flexible employees will be converted to full-time regular, the number of casuals will be reduced to 5.0%, and a new category of bargaining unit employee will be created.  More specifically, these changes include the following:

• Within 180 days of the Award (by August 14, 2013), all current part-time flexible employees working in the larger postal installations (those with 200 or more workyears of employment) will be converted into full-time regular employees.  Those few part-time flexible mail handlers still working in smaller facilities then should be able to transfer to a larger installation and be converted automatically to full-time regular status, if they so desire, although the part-time flexible status will remain for mail handlers in the smaller installations.

• Rather than the current 12.5% casual employees who are outside the NPMHU bargaining unit, the Award establishes a workforce that is no more than 5.0% casual employees, measured and counted by installation.  This reduced number of casuals will now be authorized to work without being restricted by the “in lieu of” clause under Article 7.1B of the National Agreement, with each individual casual allowed to work up to 360 days per year.

• The Award creates a new category of noncareer mail handler employee called the Mail Handler Assistant, or MHA.  The MHA category will serve as the entry point for all future career mail handlers to be hired by the Postal Service.  A maximum of 15% of mail handlers in any district may be MHAs, with a cap of 20% in any particular installation.  Unlike casuals, MHAs will be members of the NPMHU bargaining unit, will be hired based on the postal exam and other routine hiring criteria, and will be eligible for conversion to career status based on their relative standing.  Although MHAs will work flexible hours and may be separated for lack of work, many other provisions of the National Agreement will apply to their employment, and the Union will be able to represent them in the grievance and arbitration process.  Starting pay for new MHAs has been set at $13.75 per hour at Level 4 and $14.50 per hour at Level 5, but those amounts will be increased by a total of 7% during the remaining years of this Agreement.  MHAs also will have limited access to subsidized health insurance in accordance with the Affordable Care Act.

• Significantly, future career employees (those hired after February 15, 2013) will be placed on a revised pay scale that reduces entry pay, but contains seventeen step increases of more than $1,300, providing guaranteed increases in pay every 52 weeks, with top pay at Step P being precisely the same of current career mail handlers.  The wage scale governing future career employees will continue to be adjusted upward by general wage increases and COLA increases, although the COLA before top Step P will be proportional to Step P.  The USPS demand for a permanent two-tier pay scale was rejected.

• Also rejected by the arbitration panel were a series of draconian proposals from the Postal Service, including absolutely no general wage increases for career employees, no cost-of-living adjustments, and a drastic increase in employee contributions for health insurance to the current rate paid by federal employees.  Another proposal from the Postal Service sought to modify, and effectively eliminate, the current no lay-off clause.  In addition, the Postal Service sought the authority to hire and to utilize, without any contractual restrictions whatsoever, a total of 25% casual employees.  Finally, for new career mail handlers hired in the future, the Postal Service proposed that their pay rates be 20% lower at the entry level and 20% lower at the maximum level.

The arbitration panel was chaired by Herbert Fishgold, a longstanding arbitrator and mediator with decades of experience.  The NPMHU-appointed member of the arbitration panel was Robert Weinberg, from the law firm of Bredhoff & Kaiser, PLLC, which also is the home of NPMHU General Counsel Bruce Lerner.  USPS counsel Robert Dufek was the Postal Service’s appointed arbitrator.

The Award follows fifteen months of work by the NPMHU, including its National Officers, the National CAD, its legal staff, and a series of expert witnesses and consultants who diligently prepared the union’s case for the interest arbitration proceeding.

A complete copy of the Fishgold Award is attached, including new wage and night differential schedules, new and updated contract language, and new and amended Memoranda of Understanding and Letters of Intent.  A fuller description of the Award will be provided in publications to be circulated by the National Office, and during the Semi-Annual Meeting of the Local Unions already scheduled for the first week of April 2013.

We thank our NPMHU membership for its continuous patience and support during this lengthy and sometimes frustrating 2011 round of negotiations.

Read the PDF of NPMHU/USPS Interest Arbitration Award

USPS Announces Move to Five-Day Delivery

(February 6, 2013) Earlier today, the Postmaster General announced that the Postal Service plans to switch to five-day delivery later this year. The NPMHU previously has made clear that such a change in operations would be a serious mistake, and would eliminate a key component of the Postal Service’s longstanding mail network and service to the American people. Instead of cutting service, the USPS should be emphasizing, and capitalizing on Saturday delivery to grow the business.

In addition to what we consider to be a major blunder by the Postal Service in this matter, Congress also has been making a mistake, which now has continued for several years. More specifically, Congress has failed to return pension overpayments to the Postal Service, and has failed to adjust required overpayments to the Retiree Health Benefits Fund. Congress needs to fix these mistakes.

The NPMHU remains willing to work with the Postal Service and all stakeholders in the development of responsible postal legislation that addresses several key issues, including improving USPS finances, the continuation of full service to the American people, and protecting the jobs, rights and benefits of its members, and of all postal employees.

The Mailhandlers Union has received the following fax from USPS Headquarters:

As a follow up to the notice provided May 16 regarding the modified network consolidation plan for implementation of the decisions announced on February 22, a decision has been made to advance the implementation of the sites on the enclosed list to 2013.

Enclosed for your review is a list of the sites identified for advance implementation.

The reason for this change is that the Postal Service has identified the opportunity to accelerate the anticipated Savings while still maintaining the interim SCF service standard. The U.S. Postal Service continues to face one of the most difficult challenges in its history. The current economic downturn and continued internet diversion has led to historically large deficits. As a result, the Postal Service is not receiving enough revenue to sustain the cost of its processing and delivery network.

It is projected that this consolidation will result in significant savings for the Postal Service. Some affected career employees may be reassigned to other vacant positions. Reassignments will be made in accordance with the collective bargaining agreement.

Sincerely

Patrick M. Devine
Manager
Contract Administration (APWU)

From the Mailhandlers Union:

By letter dated November 16, the Postal Service has notified the NPMHU of an updated list of facilities that will be impacted in February 2013. The NPMHU will be meeting with Postal Headquarters to determine the impacts, by Installation, and to ensure that all appropriate Contractual provisions are adhered to regarding the affected Mail Handlers.

Click here for the original .pdf file.

(November 13, 2012)  Hearings in the ongoing interest arbitration proceedings to determine the terms of the 2011 National Agreement between the NPMHU and the Postal Service continued on Friday, November 9, 2012.  The hearings are being conducted before a three-person arbitration panel – chaired by Herbert Fishgold as the neutral member, with Robert Dufek serving as the USPS-appointed member and Robert Weinberg serving as the NPMHU-appointed member.  The next hearing is scheduled for November 16, 2012, with continuing hearing dates already scheduled through January of next year.

          At the hearing on November 9, the Postal Service’s lead advocate set forth the general outlines of the USPS arguments and evidence.  The agency’s case starts with the dire financial circumstances facing the Postal Service, which are caused, in the Postal Service’s view, primarily by electronic diversion of first-class mail.  This means that the Postal Service is “insolvent,” with more than $36 billion in losses over the past six years.  Its liquidity is approaching exhaustion; it has maximized its debt load at $15 billion; and thus, according to the Postal Service, it needs a total restructuring of its labor costs for mail handlers.

          What follows from these arguments is a series of draconian proposals from the Postal Service, including – for current mail handlers – absolutely no general wage increases, no cost-of-living adjustments, and a drastic increase in employee contributions for health insurance to the current rate paid by federal employees.  Another proposal from the Postal Service seeks to substantially modify, and effectively eliminate, the current no lay-off clause.  In addition, the Postal Service is seeking the authority to hire and to utilize, without any contractual restrictions on scheduling, use, or retention, a total of 25% non-career casual employees.  Finally, for new career mail handlers hired in the future, the Postal Service proposes that their pay rates be 20% lower at the entry level and 20% lower at the maximum level.  The bottom line is that the Postal Service seeks to freeze the wages for all current mail handlers, while reducing their take-home pay by approximately 8% to pay for health insurance premiums.  For new hires, the USPS proposal would mean a permanent, non-career workforce with low pay and no benefits for one-quarter of employees performing mail handler work, and a reduction of 20% in the wages of newly hired career mail handlers.

          In contrast, the NPMHU is seeking a restoration of general wage increases and cost-of-living adjustments for current mail handlers, which would be part of an overall financial package that would allow the Postal Service to reduce its overall labor costs in future years.  NPMHU representatives made clear that the Postal Service is institutionally incapable of either presenting or agreeing to a rational or common-sense approach to labor costs, and thus it would be necessary for the arbitration panel to issue an award that met those requirements.

          As noted, hearings reconvene on November 16, with the Postal Service expected to present evidence about its current financial situation.  Watch for future updates to learn about developments as they occur.

The interest arbitration proceedings to determine the terms of the 2011 National Agreement between the NPMHU and the Postal Service have begun, with hearing dates already scheduled through January 2013.

The three-member arbitration panel held its first planning and process meeting on October 15, 2012. The neutral member and chair of the panel is Herbert Fishgold, a nationally known arbitrator with more than thirty years of experience. As previously announced, Fishgold – who was appointed through a striking process run by the Federal Mediation and Conciliation Service –is an arbitrator of nationwide reputation and professional stature, who is also a member of the National Academy of Arbitrators. He has served as a third-party neutral for more than thirty years, during which time he has mediated and arbitrated bargaining disputes in a wide range of industries at the national, state, and local levels. Arbitrator Fishgold is familiar with many of the basic facts and issues presented by the Postal Service, the mailing industry, and postal employees generally – based on, among other things, his service as an interest arbitrator in the 2006 dispute between the National Rural Letter Carriers Association and the Postal Service.

Joining Fishgold on the panel as the USPS-appointed arbitrator is Robert Dufek, a Manager of Labor Relations at the Postal Service and long-time management attorney and representative. The third member of the panel has been appointed by the NPMHU, and he is union lawyer Robert Weinberg, a senior member of the law firm of Bredhoff & Kaiser, PLLC in Washington, DC. That firm, which has operated as General Counsel to the NPMHU since 1992, also is the home of Bruce Lerner and Matt Clash-Drexler, the lawyers representing Mail Handlers both in last year’s national negotiations and in the current arbitration proceedings.

Hearings are slated to begin on November 9, with as many as twelve dates scheduled in November, December, and January. As the testimony and evidence are presented, more details will be distributed.

The National Postal Mail Handlers Union has told its members that it will challenge the USPS decision to award operator positions on the AFCS-200 flat sorting machines to clerks rather than mail handlers. NPMHU President John Hegarty sent the following letter to the union’s local presidents:

In a letter faxed to the NPMHU office on Friday evening, September 28, 2012, the Postal Service has outlined its intent to assign one “operator position” on the new AFCS-200 to the clerical craft. The primary craft for the induction activities on the AFCS-200 will remain with the mail handler craft. (A copy of the USPS letter is attached).

“We are analyzing this decision to determine the impact on the Mail Handler Craft”, said National President John Hegarty. “We obviously disagree with this decision, and will challenge it through the appropriate channels.”

lt does not make sense to take Mail Handlers, who have been efficiently operating the AFCS machinery for decades, off of the “operator position,” and switch that over to the clerk craft. One can only guess at the rationale behind this blunder by the USPS.

The National Office is gathering the information necessary to determine the precise impact on Mail Handler jobs, both immediate and in the future. We will also update you on our challenges to this ill-advised jurisdictional assignment, and to any other developments going forward.

“Rest assured, we intend to fight for this Work and to protect the interests of our hard-working AFCS operators, and of all other Mail Handler nationwide, as We have always done,” said President Hegarty.

This may be the Postal Service’s decision for now, but it is not the final word in this dispute.

The Mail Handlers Union last month filed a national level grievance concerning the use of “lead clerks” to supervise mail processing units when a regular supervisor is absent. The “lead clerk” position was agreed to in the last APWU contract, with the aim of reducing the use of acting supervisors, usually referred to as “204B’s”. According to the USPS and the APWU, “lead clerks” would “guide” all employees in a unit, including mail handlers.

The problem, as far as the Mail Handlers are concerned, is that the USPS never negotiated with them on the issue. In practical terms, the provision would effectively preclude mail handlers from being used as acting supervisors in units that have lead clerks. The argument could get even more interesting if the arbitrator deciding the mail handlers’ next contract includes a “lead mail handler” provision in his award…

(If you can’t access the Scribd version of the grievance below, click here to view or download from Google Docs.)

Lead.clerk .National.level .Grievance.8.21.12

(August 16, 2012) As announced at the 2012 NPMHU National Convention last week, after the parties were done striking names from a list provided by the U.S. Federal Mediation and Conciliation Service, FMCS Director George Cohen has appointed Herbert Fishgold as the arbitrator for the NPMHU/USPS bargaining dispute. Mr. Fishgold is an arbitrator of nationwide reputation and professional stature, who is also a member of the National Academy of Arbitrators. Indeed, Mr. Fishgold has served as a third-party neutral for more than thirty years, during which time he has mediated and arbitrated bargaining disputes in a wide range of industries at the national, state, and local levels.

Arbitrator Fishgold is generally familiar with many of the basic facts and issues presented by the Postal Service, the mailing industry, and postal employees generally – based on, among other things, his service as an interest arbitrator in the 2006 dispute between the National Rural Letter Carriers Association and the Postal Service. And, Fishgold most recently served as the mediator in the last stage of the process to try and settle the NPMHU/USPS impasse.

The parties must now each select one additional member to serve on the three-person arbitration panel, and that process should be concluded shortly.

As the arbitration moves forward, the National Office will keep you updated, to the extent possible, during what is expected to be a lengthy arbitration process.

Read more: Arbitrator Appointed in NPMHU/USPS Bargaining Impasse – National Postal Mail Handlers Union.