Taking a Look at the Last Contract and Step “O” Pay

The current contract or National Agreement began on September 20, 2019. It will expire next year on May 20, 2023. During those years, up until this November 19, 2022 all career letter carriers will have received 10 pay increases in their salaries and can expect to receive one more/last (COLA) after the January 2023 Consumer Price Increase (CPI) is released.

I think a review of those pay raises will be beneficial to both “old” and “new” letter carriers for the purposes of what they should or may expect for our “NEW” National Agreement. These increases may be based on what the Employer offers and what the workers and their representatives will be demanding!

The current contract will have been in existence for approximately 44 months and a review of those pay periods clearly indicates that it was the rise in the cost of living that increased letter carrier wages significantly.

Prior to the first pay raise (November 23, 2019) a Step “O” letter carrier received $65,037 annually. The first pay raise was 1.1 % of that amount or $715. A second raise occurred with the release of the January 2020 Consumer price Index. It was only $166. This raised annual wages to $65,918. Another COLA was triggered in August 2020. It was $188. The annual salary for a Step “O” carrier increased to $66,106. Another increase which was a regular pay raise occurred. It was the same 1.1 % of the annual salary of $65,037 or another $715. It was not based on the increased wages that had occurred in November, January and August. If it had, it would have been $727 not $715. That raise occurred on November 21, 2020.

The next pay raise was $416 and was triggered by the January 2021 release of the CPI. It was substantially higher than the two previous COLAs (166 plus 188 = total $354). Another (COLA) increase occurred on August 28, 2021. At that time, this was probably the “highest” cost-of-living that had ever been paid. It totaled $1934. Step “O” letter carriers were now receiving annual salaries (without overtime) of $69,171. In less than 2 years, a Step “O” letter carrier had received pay raises totaling ($4134). What this means is that in about 2 years. Letter carrier wages went up almost 6.4%.

Another regular pay raise took effect on November 2021. It was 1.3% but it was based on what the annual salary ($65,037) was in late 2019. Thus, it was an increase of $845. lf it was 1.3% of the current salary at that time ($70,016) it would have been $910.

The fifth contract COLA that occurred in February 2022 was $1331. This raised the annual salary of step “O” letter carriers to $71,347. Again, this was a significant pay increase. What was even more astonishing was the August 27, 2022 COLA increase. It was $2,455. Step “O” annual letter carrier salaries were increased to $73,802.

Currently, all career letter carriers will receive another 1.3% pay raise starting on November 19, 2022. Unfortunately, the 1.3% is based on what the annual salary was in November of 2019. Step “O” letter carrier will receive another $845. The same that was paid in November 2021. A true 1.3% of what a step “O” letter carrier is making now out of $73,802 would be a $959 increase. I would contend that any “future” pay raises be based on what the salary is at the time. Not what it was 3 years (2019) ago!

The final pay raise that is also to be included on November 19, 2022 was a “new” Step “P” for all letter carriers who had achieved “TOP” pay. This means the carrier would have had at least 12 years 3 months on the job. I am not sure if that means all carriers with less time will have to work another 46 weeks or be at 13 years 2 months to reach Step “P.” One more COLA will be payable after the January 2023 release of the Consumer Price Index. As of the writing of this article, on November 10, 2022 the COLA stood at $124 with about 8 more weeks to go before it becomes final. Again, it will be the last pay increase until a “new” contract is negotiated!

Our “new” contract will either be negotiated or time limits to negotiate will be extended or it will be “impassed” and scheduled for arbitration after the contract expires on May 23, 2023. I believe this is the best time to know what we have achieved as concerns wages and what we think we should be paid in the future.

Yours for the Union!