Postal workers get 4.4 percent raise

Postal Service employees were hoping to get the pay raise equivalent of a big box with a bow on top under their Christmas tree this year, but instead got a stocking stuffer. In a long-awaited ruling, a three-member arbitration panel awarded the American Postal Workers Union a new three-year contract with a 4.4 percent general wage increase. The union was seeking a 13.5 percent increase over 34 months. Under the panel's ruling, wages will climb 1.2 percent retroactive to Nov. 18, 2000; 1.8 percent retroactive to Nov. 17, 2001 and 1.4 percent next November. The ruling also continues cost of living increases, although in the first year these will be covered by a lump sum payment of $499. The APWU, the agency's largest union, represents more than 340,000 workers. The contract runs until Nov. 20, 2003. "The arbitration is not something to be criticized or embellished," said Danny Frank, spokesman for the APWU. "It is not something we can change." Frank did, however, criticize Postal Service management for failing to negotiate the labor contract in good faith. By law, the Postal Service must enter into collective bargaining with its unions. Should that process fail to result in an agreement, the parties must go to binding arbitration. Frank said the agency did not make a reasonable offer and thus forced the issue to arbitration. In a press statement, Anthony Vegliante, the Postal Service's vice president of labor relations, said the agency hopes it can improve relations with its unions and solve future problems through collective bargaining. A postal manager speaking on the condition of anonymity said neither side actually negotiates in good faith, largely because there is so much hostility between the two groups. The Postal Service is now in arbitration with the National Rural Letter Carriers and is also negotiating a new contract with the National Association of Letter Carriers. Talks with the National Postal Mail Handlers Union are on hold until the parties can assess the impact of the APWU ruling.