Letter Carriers' Payday: The Power of Collective Bargaining

Generated by AI AgentIndustry Express
Thursday, Aug 21, 2025 1:38 pm ET2min read
Aime RobotAime Summary

- The 2023-2026 National Agreement secures 6.3% top pay raises and four COLAs for U.S. city letter carriers via collective bargaining.

- Full retroactive pay covers all work/leave hours from August 2023 to April 2025, ensuring back payments for all wage increases.

- NALC's retroactivity win strengthens union leverage, improving carrier financial stability and setting precedents for future negotiations.

LETTER CARRIERS' PAYDAY: THE POWER OF COLLECTIVE BARGAINING

BUY NOW! The 2023-2026 National Agreement is a game-changer for America’s city letter carriers. This isn’t just about a pay raise; it’s about the power of collective bargaining in action. Let’s dive into the details and see why this agreement is a BIG WIN for letter carriers and the Postal Service.

THE NUMBERS DON’T LIE!

- Wage Increases: The top pay of letter carriers, Step P, increased by $4,758 annually, or 6.3 percent, on April 19, 2025. This percentage increase was applied to every carrier in other steps of Table 2.

- COLAs: Four cost-of-living adjustments (COLAs) and two general wage increases (1.3 percent and 1.4 percent) were secured in the interest arbitration award issued by Arbitrator Dennis R. Nolan on March 21, 2025.

- Retroactive Pay: Career letter carriers will receive full back pay resulting from the six wage increases between Aug. 26, 2023, and April 18, 2025. CCAs will also receive full back pay for their two increases, 2.3 percent and 2.4 percent, respectively.

THE POWER OF RETROACTIVITY

The Nolan Award provides for full retroactivity for the first two general wage increases (for Tables 1, 2, and 3) and the first four COLAs for Tables 1 and 2. This required the Postal Service to recalculate the pay for every paid hour—including all work hours (straight time, overtime, penalty overtime, and other premium pay) and all paid leave hours—between Aug. 26, 2023, and April 19, 2025.

THE BREAKDOWN

For career city carriers in Tables 1 and 2, the backpay periods covered are:

1. First COLA—$978 at Step P: 8/26/23 to 4/18/25

2. First General Increase—1.3 percent: 11/18/23 to 4/18/25

3. Second COLA—$353 at Step P: 3/9/24 to 4/18/25

4. Third COLA—$978 at Step P: 9/7/24 to 4/18/25

5. Second General Increase—1.4 percent: 11/16/24 to 4/18/25

6. Fourth COLA—$416 at Step P: 3/8/25 to 4/18/25

For CCAs in Table 3, the back pay periods are as follows:

1. First General Increase—2.3 percent: 11/18/23 to 4/18/25

2. Second General Increase—2.4 percent: 11/16/24 to 4/18/25

THE STRATEGIC ADVANTAGE

Securing full retroactivity in the Nolan Award is a MAJOR WIN for the NALC. It ensures that letter carriers receive all the wage increases and COLAs they are entitled to, dating back to the effective date of the contract's first COLA on August 26, 2023. This not only provides financial relief to the members but also demonstrates the union's effectiveness in negotiating favorable terms.

THE FUTURE OF COLLECTIVE BARGAINING

The NALC's ability to secure full retroactivity strengthens its position in future collective bargaining negotiations. The union has a history of fighting for and achieving full retroactivity, which sets a precedent for future negotiations. This precedent can be used to leverage better terms in future agreements, as the Postal Service is aware of the union's resolve and ability to secure favorable outcomes.

THE BOTTOM LINE

The implementation of the 2023-2026 National Agreement has had a significant impact on the financial stability and job satisfaction of city letter carriers and CCAs. The wage increases and COLAs, along with the retroactive pay, have improved their financial stability and job satisfaction. The long-term effects on the Postal Service's operational efficiency and employee retention rates are likely to be positive, as the agreement can lead to more motivated and committed employees, which can improve operational efficiency and service quality.

DO THIS!

Stay tuned for more updates on the 2023-2026 National Agreement and the power of collective bargaining. This is a BIG WIN for letter carriers, and it's just the beginning of what's to come. BOO-YAH!

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