Mail handlers union members approve five-year contract

Members of the National Postal Mail Handlers Union (NPMHU) have voted to ratify a new five-year contract. The new contract will run through Nov. 20, 2011, and affect approximately 55,000 career U.S. Postal Service employees who are engaged in bulk transfer, loading and unloading of mail.

The agreement provides for the following retroactive and future general wage increases (based on salary in effect on Sept. 2, 2006):

* Effective Nov. 25, 2006 – 1.2 percent increase.
* Effective Nov. 24, 2007 – 1.2 percent increase.
* Effective Feb. 16, 2008 – 0.6 percent increase.
* Effective Nov. 22, 2008 – 1.2 percent increase.
* Effective Nov. 21, 2009 – 1.2 percent increase.
* Effective Nov. 20, 2010 – 1.2 percent increase.

Effective Nov. 25, 2006, a new step (Step P) is added to the top of the Mail Handler pay schedule, and effective Feb. 3, 2007, a new entry step (Step AA) will be added to the beginning of the Mail Handler pay schedule.

The contract also contains continuation of cost-of-living adjustments (COLA) at current levels and a reduction in the Postal Service contribution rate for health insurance by one point during each year of the contract.