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NALC Collective Bargaining Timeline: 1962-2006


Month-Year Key Issues and Comments
January 1962 President John F. Kennedy signs Executive Order 10988 granting postal and other federal employees collective bargaining rights over non-economic issues. Pay and fringe benefits continue to be set by Congress.
June 1962 NALC wins election as the exclusive collective bargaining representative of the nation’s city letter carriers.
March 1963 NALC signs first negotiated agreement outlining a (non-binding) grievance procedure and permitting limited local negotiations.
March 1970 Postal employees across the country go on strike, led by letter carriers in New York City, after years of inadequate pay and worsening working conditions.
April 1970 Strike settlement: 6.0% wage hike retroactive to December 1969; 8.0% wage increase contingent on postal reorganization legislation; wage scale compression—reducing time from first to top step from 21 to 8 years.
August 1970 President Richard M. Nixon signs the Postal Reorganization Act of 1970. It provides: Collective bargaining rights for postal employees; financial and operational independence for the Post Office; a final legislated wage increase (8.0%) retroactive to April 1970.
November 1970 Wage schedules are compressed from 21 to 8 years.
July 1971 United States Postal Service replaces the Post Office Department and begins operations.
July 1971 First NALC-USPS National Agreement, July 1971–July 1973. Joint bargaining with seven postal unions (pre-APWU merger), including today’s APWU crafts, the NPMHU and the NRLCA. The contract provides: Wage increases totaling $1,250 annually; a single cost-of-living adjustment (COLA - capped at $160 annually); a $300 lump-sum payment; and no lay-off protection for length of contract.
July 1973 Second NALC-USPS National Agreement, July 1973–July 1975. Joint bargaining with other three unions (APWU, NPMHU and NRLCA). The contract provides: Wage increases of $1,100 annually over two years plus biannual uncapped COLAs based on the Consumer Price Index; new overtime rules; and new language on subcontracting.
July 1975 Third NALC-USPS National Agreement, July 1975–July 1978. Joint bargaining with other three unions. The contract provides: Wage increases of $1,400 annually over three years and uncapped biannual COLAs; a Memorandum of Understanding requiring that time/work standard changes be “fair, reasonable and equitable;” and a casual employee limit set at 5.0 percent.
July 1978

Fourth NALC-USPS National Agreement, July 1978-July 1981. Joint bargaining with APWU and the NPMHU (Rural Carriers bargained separately.) The tentative agreement provides: Wage increases of $500 annually in year one, 3.0% in year two and $500 annually in year three; a revised grievance-arbitration procedure; and improved work rules.

NALC membership rejects the agreement in a ratification vote because of cap on COLA (COLAs were not to exceed those paid in 1975 contract regardless of actual inflation). Mediation-arbitration process decides two issues: Whether to cap the COLA and whether to eliminate the no-lay-off clause.

Mediation fails and arbitrator James Healy rules in favor of unions on COLAs (no cap) and partially in favor of management on no lay-off clause, which is changed prospectively to cover only employees with a minimum of six years of service.

July 1981 Fifth NALC-USPS National Agreement, July 1981–July 1984. Joint bargaining with APWU. Mail Handlers and Rural Carriers bargained separately. National Labor Relations Board rejected USPS request to force merger into a single bargaining unit. The contract provides: Wage increases of $300 annually in each of three years; cash payments of $350 in all three years; a $150 ratification bonus; and the elimination of mandatory annual route inspections.
December 1984 Sixth NALC-USPS National Agreement, July 1984–July 1987. Joint bargaining with APWU. USPS seeks reduced COLAs and a two-tier wage schedule. Entire contract is set through interest arbitration featuring debate over pay comparability. Arbitrator Clark Kerr rejects two-tier pay scales and reduced COLAs, but lowers the starting salaries of carriers by 10 percent (by adding two new steps to bottom of pay scale) and calls for “moderate restraint” in future postal wage increases. The contract provides: annual wage increases of 2.7 percent; and a 10th national holiday in 1986 (Matin Luther King Jr. Day).
July 1987 Seventh NALC-USPS National Agreement, July 1987–November 1990. Joint bargaining with APWU leads to a negotiated 40-month contract. The contract provides: Six general wage increases (2.0% in year one and $1,300 in annual wage increases over the next three years) and seven COLAs at six-month intervals.
June 1991

Eighth NALC-USPS National Agreement, November 1990–November 1994. Joint bargaining with APWU. USPS demands a wage freeze, health benefit give-backs, more part-timers and a temporary work force during a “transition” to full letter-mail automation. Parties again debate pay comparability but expand the debate to cover benefits and work-force structure.

Arbitrator Richard Mittenthal invokes “moderate restraint” and issues a four-year contract with wage increases (1.2%, 1.5%, 1.5%, 1.6%), uncapped COLAs, a new starting step A and a $351 cash payment.

Separate dispute resolution procedures are begun to consider health benefits and “transitional employees.”

Mediation/Fact-Finding with mediator Rolf Valtin fails to achieve health benefits agreement and the parties resort to interest arbitration, with a panel chaired by Valtin. The resulting Valtin Award reduces the USPS contribution for health benefits from 90 to 85 percent and gives employees the ability to pay for health premiums with pre-tax dollars.

Mittenthal panel returns to resolve the terms and conditions of Transitional Employees (TEs) in the city carrier craft while APWU reaches a voluntary deal. The award provides: The salary of a Step A part-time flexible; twice-a-year COLAs; a four-hour minimum guarantee; and access to the grievance-arbitration procedure.

August 1995

Ninth NALC-USPS National Agreement, November 1994–November 1998. Convention in Atlantic City instructs NALC to bargain alone. NALC takes offensive and demands higher-level pay to reward productivity gains and more difficult work as a result of letter mail automation.

Negotiations and mediation fail and parties return to interest arbitration with a panel chaired by Arthur Stark. Pay comparability remains a central theme, but impact of automation is also litigated.

The Stark Award provides: the “cash out” of the first-year wage and COLA increases with a $950 lump-sum payment; two 1.2 percent general wage increases; a second lump-sum payment of $400; the conversion of Sunday and night premiums to fixed amounts per hour.

Stark does not find a violation of the pay comparability standard in the city carrier craft but labels the NALC demand for a pay upgrade as “premature.”

September 1999

Tenth NALC-USPS National Agreement, November 1998–November 2001. NALC bargains alone. NALC resumes campaign for higher-level pay with a nationwide media campaign and informational picketing in the summer and fall of 1998.

Bargaining is extended well beyond the expiration date but the contract is resolved through interest arbitration with arbitrator George Fleischli as chairman. Focus shifts from pay comparability to job content, automation impacts and productivity growth. Proceeding is converted into a Final Last Best Offer case and the NALC position is adopted.

The Fleischli Award’s contract provides: a pay upgrade for all city carriers (worth 2.5% - 3.1% as Grade 5 carriers are upgraded to Grade 6 and Grade 6 carriers are upgraded to Grade 7); a cash payment of $725-$1,034 (depending on a carrier’s grade and step); and annual wage increases of 2.0%, 1.4% and 1.2% over the next three years plus biannual COLAs during the same period.

November 2001

Eleventh NALC-USPS National Agreement, November 2001–November 2006. NALC negotiates alone and achieves an unprecedented five-year contract. Negotiations are delayed due to the terrorist attacks of September 11, 2001 and the postal anthrax attacks of October 2001, which together cause the most serious decline in mail volume since the Great Depression. NALC works with mailers and other employee organizations to win significant financial assistance from Congress to held defend the mail system against future bio-terror attacks.

The parties return to bargaining in the spring of 2002 and reach a voluntary agreement providing five general wage increases, eight COLAs and a single lump-sum payment.

The parties use the long period of stability to secure legislation to prevent the over-funding CSRS pensions and to explore the possibility of a new route evaluation system, Efforts on the former are successful, saving the USPS $2.6 - $3.4 billion per year, while talks on the latter fail.

September 2007

Twelfth National Agreement ratified by a 9-to-1 vote of the membership.

The contract had been on track for arbitration when the parties failed to reach a negotiated agreement by the November 20, 2006 deadline. The key bone of contention centered around the Postal Service's insistence on handing out city letter carrier delivery routes to private, non-union subcontractors.

Following several rallies across the country and testimony by President Young before Congress against contracting out, the NALC and the Postal Service reached a tentative agreement on July 12, 2007. The agreement called for limits on contracting out carrier work, as well as general wage increases of 8.85 percent over five years and regular cost-of-living adjustments (COLAs).

The Agreement abolished the use of “casuals,” replacing them with bargaining unit “transitional employees.” Also negotiated were resolutions to several long-standing issues involving automated sorting of large flat mail, adjustment of carrier routes and other operational matters. In addition, the contract provided the Postal Service relief on health care costs by increasing the share of health care premiums paid by city letter carriers by five percentage points over the life of the contract.

Ratification was certified September 14, 2007.



© National Association of Letter Carriers, AFL-CIO