April 20, 2012 — The April 8 deadline for mediation has passed and negotiations for a new National Agreement between the NALC and the U.S. Postal Service have concluded. The process now moves to interest arbitration.
Formal talks between the two parties began in August, three months before the Nov. 20 expiration date of the 2006-2011 contract. But following several extensions, the USPS announced on Jan. 20 that it was declining to further extend its collective-bargaining negotiations with the NALC.
“I am disappointed by the Postal Service’s decision,” NALC President Fredric Rolando said in January. “We have been making steady progress in negotiations, and our negotiations have been innovative, professional and productive and have been conducted at the highest level.”
About three weeks after the impasse was declared, Federal Mediation and Conciliation Service Director George Cohen announced the appointment of a mediator, attorney Joshua Javits, to help NALC and USPS reach a new agreement. The two parties agreed on a mediation deadline of April 8.
In mediation, the neutral mediator—in this case, Javits—is called upon to assist the parties to jointly explore and attempt to settle their differences. Javits held a number of meetings with both sides, both jointly and separately, and attempted to focus on the parties’ common interests. Unfortunately, an agreement could not be reached.
The process now moves to interest arbitration.
In interest arbitration, each party selects an arbitration advocate to represent it on a three-person board, with the third person being an independent and neutral third party chosen by both parties to resolve the dispute. Much like a court case, each side presents evidence through witness testimony and documents, complete with opening and closing arguments, chances for cross-examination and rebuttal. After the arbitrator takes time to review the case, he or she announces a decision and explains how the arbitration decision was reached.
As with mediation, there are advantages and disadvantages to resorting to interest arbitration. That step in the contract negotiation process generally is perceived as fair and unbiased, resolving a dispute with a measure of finality. A disadvantage, though, is that there is no guarantee that both sides will come out winners in an arbitration decision. Of course, even after the arbitration gets started, the NALC and USPS could still choose to settle on an agreement on their own, sidestepping the binding arbitration process.
The last time an NALC-USPS agreement was reached through interest arbitration was in the summer of 1999, following 23 days of intense hearings and live testimony from letter carriers about the realities of their working conditions, both on the workroom floor and in weather extremes delivering mail on their routes. The arbitration decision, announced in September 1999 by Arbitrator George Fleischli, resulted in a substantial win for the NALC, with a three-year pact that provided a rise to Grade 6 pay for all city letter carriers, annual wage increases and continued cost-of-living adjustments, and improved health care benefits.
“The negotiating atmosphere is a lot tougher in 2012 than it was 13 years ago,” Rolando said, “which is why we’ve literally been preparing for interest arbitration since the 2010 national convention in Anaheim.
“Our members should have faith that we continue to bring all our resources to bear on this effort to achieve a new National Agreement,” he said, “and will work day and night to make sure our full case gets heard by the arbitration board, just as we did at the bargaining table.”
We traded the right to strike for a no layoff clause. The no layoff clause does not apply to workers with under 6 years of service. All employees with under 28 years of service are not under the old, defined benefit system. If I retire with 30 years service, my pension will be about $1100 per month, plus social security(which I pay into) and Thrift Savings(which is the exact same system as all government workers). I pay $200 per month for health insurance for my wife and I, a good, but not great deal by any stretch of the imagination. Our sick leave and vacation time policies are the same as that of the Federal Government employees. By the way, we have reduced our ranks by over 100,000 in the last 10 years, so the chances of an unemployed person getting a job with the Postal Service is slim and none, unless they become a part-time, non-career employee with little or no beneifts. By attrition, we are going to reduce our ranks by another 100,000 in the next 10 years.
This is to Bostontom….with 43 years of service your already at 80% of your annual pay which comes out to at least $ 45,600 per year! Why dont you retired and give another unemployed individual a chance to be one of the elite USPS employees.
Those of you, fortunate to be working for a company that has a no layoff clause, excellent health plans, accrued sick leave and vacation time. Wow, what wonderful benefits the best out of all Federal Workers!
With 43 years in the P.O. I’ve seen contracts come and go, I’m still optimistic, but realistic enough to know that this climate will be a big test. Rolando don’t let us down. You’ve been sleeping in their bed long enough. I’ve seen where cooperation has gotten us. And I am tired of bending over. Donahoe is a scourge to this great institution, time has come to bring him back to earth. Good luck Rolando, make it a good fight.