Feb. 20, 2014 – There will be no third cost-of-living adjustment (COLA) for letter carriers under the 2011-2016 National Agreement because the Feb. 20 release of the January Consumer Price Index (CPI) showed no increase in the CPI between July 2013 and January 2014. 

This morning’s release of the January 2014 CPI-W (1967=100), 685.220, showed no increase over the July 2013 index number, 685.350. As there was no increase in the index, the third COLA for letter carriers under the 2011-2016 National Agreement is $0—i.e., there is no third COLA. The COLA calculation is based on the increase in the CPI-W between July 2013 and January 2014.

However, under the terms of our agreement, the deferred payment of the previously announced first COLA, $146 annually, will take effect in the second full pay period after today’s release of the January CPI. This first COLA was based on the increase in the CPI between July 2012 and January 2013. It amounts to 7 cents per hour, the equivalent of $5.60 per pay period or $146 annually.

This COLA will be added to the Step O pay rates in Table 2 of the Pay Schedule, which applies to city carriers hired in career positions on or after January 13, 2013. The pay rates of steps A through N of Table 2 will be increased proportionally, as provided by the contract. (For example, Step A is set at 61.5% of Step O, so the COLA for Grade 1, Step A is $90 annually.)

Letter carriers with questions should speak with their shop stewards and branch leaders.