Earlier this year, America’s city letter carriers once again witnessed the value and power of collective bargaining when the Postal Service implemented the first six wage increases called for in the 2023-2026 National Agreement. These consist of four cost-of-living adjustments (COLAs) and two general wage increases (1.3 percent and 1.4 percent), which were secured in the interest arbitration award issued by Arbitrator Dennis R. Nolan on March 21 of this year.
Under the terms of the Nolan Award, the top pay of letter carriers, Step P, increased by $4,758 annually, or 6.3 percent, on April 19—a percentage increase that every carrier in other steps of Table 2 also received. City carrier assistants (CCAs), who do not receive COLAs under the contract, received pay increases of 4.7 percent, which reflects the two general wage increases plus an additional 1 percent for each one. On June 14, a $1,000 annual increase in the salary of Step P (in both Tables 1 and 2), to a level of $81,057 annually, was implemented. Additionally, on July 12, Steps AA and A in the Table 2 wage schedule were eliminated, boosting starting career pay by about 4.5% to $51,133 annually.
But that demonstration of collective bargaining was only part of the story. Later this month, career letter carriers will receive full back pay resulting from the six wage increases between Aug. 26, 2023—the effective date of the contract’s first COLA—and April 18, 2025. CCAs will also receive full back pay for their two increases, 2.3 percent and 2.4 percent, respectively.
Retroactive pay to be included in Aug. 29 paychecks
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, (the effective date of the first COLA) and April 19, 2025, when the new contract’s wage rates were implemented.
