Postal Service, unions agree to ban contracting out

DAILY BRIEFING

Postal Service, unions agree to ban contracting out

For the first time since 1987, the U.S. Postal Service has reached a voluntary bargaining agreement with its two biggest unions.

The American Postal Workers Union and the National Postal Mail Handlers Union agreed Wednesday night to a two-year agreement with the Postal Service, which would include an 18-month ban on contracting out postal jobs to private companies.

The agreement also includes plans to provide postal workers higher wages and improved health benefits. Union members must still ratify the agreement to make it official.

Postmaster General William Henderson said the deal is "in the best interest" of customers and employees and will preserve "universal [mail] service for the American people."

Negotiations began in August, and previous Postal Service contracts with the unions expired Nov. 20. In 1990 and 1994, the Postal Sevice and the unions were unable to reach agreement in bargaining and had to resolve their differences through binding arbitration.