USPS calls in the mediators for union negotiations

The United States Postal Service has said its talks with two different labour unions have now reached an impasse, and look set to go into mediation. USPS has been negotiating separately with the National Association of Letter Carriers (NALC) and the National Postal Mail Handlers Union since August 2011, seeking new long-term work contracts following the end of the deals that ran out on November 20.

The negotiations have been marked by the intentions of USPS to cut its labour costs, which represent around 80% of the organisation’s overall operating costs.

USPS wants to make use of more part-time and flexible full-time workers, and end lay-off protections for its workers as it seeks to reduce its overall workforce from around 570,000 towards 400,000 over the next few years.

Since the previous union deals ran out in November, the talks with both unions have twice been extended, but today USPS said the latest extension, which ran out today, has also failed to secure agreement.

The Postal Service said if both sides now agree, the process moves to mediation, in which a mediator will assist the parties in trying to reach a voluntary agreement. The mediator would be appointed by the Federal Mediation and Conciliation Service unless both parties waive mediation.

The mediator would not have the power to impose terms of a contract, but if the mediation period fails to achieve a voluntary agreement, the process would move to arbitration, in which an arbitrator would have the power to set the terms of a contract.

A USPS spokesperson explained that mediation would generally be given 60 days to try to find agreement. US federal workers employed in essential services like USPS not permitted to strike in the event of labour negotiations breaking down.

NALC represents nearly 196,000 employees at USPS, generally letter carriers delivering mail in urban areas, while the NPMHU represents 46,000 workers employed in mail processing plants and post offices.

USPS said the unions’ employees represented $15.7bn and $3.5bn in operating expenditure last year.

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