Postal Service employees will receive pay raise in December

U.S. Postal Service employees will see a wage boost when Dec. 11 pay checks are distributed, as the latest in a series of raises took effect on Nov. 21.

The increase is part of a 2006 agreement with unions, which also includes cost-of-living adjustments subject to economic conditions. Employees represented by the American Postal Workers and National Postal Mail Handlers unions will receive a 1.2 percent pay raise. Members of the National Rural Letter Carriers' Association and the National Association of Letter Carriers will see 1.5 percent and 1.9 percent raises, respectively. Due to the recession, there will be no COLAs.

This is the final increase under the APWU and NRLCA contracts, which are set to expire Nov. 20, 2010. NALC and NPMHU members, whose agreements extend to Nov. 20, 2011, will receive their last pay raise in November 2010.

"At a time when the Postal Service is experiencing severe financial difficulties, the contractual commitment must be honored, and the required 1.2 percent pay increase must be paid," said APWU President William Burrus in a statement.

The Postal Service early last week reported a $3.8 billion loss for fiscal 2009 despite several cost-cutting measures. Most notably, the agency reduced work hours by 115 million, the equivalent of 65,000 full-time employees, and cut $4 billion in retiree health benefit payments. Officials in 2010 expect a net loss of $7.8 billion and plan to cut an additional 93 million work hours, equal to 53,000 full-time employees, through attrition and reassignment of personnel.

The Postal Service during the next year also will consider reducing delivery days and changing retiree health benefits' pre-funding requirements, said Chief Financial Officer Joseph Corbett. Going to five-day delivery is "not enough in and of itself to right the ship," he said. "We need at least two changes in order to get back on track."

According to Postal Service officials, the pay raise was reflected in the budgeting process and will have no additional bearing on the agency's financial situation.

USPS on Nov. 20 announced that 241 stations and branches remain under consideration for consolidation or closure, though no final decisions have been made.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
Close [ x ] More from GovExec

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.


When you download a report, your information may be shared with the underwriters of that document.