June 2025 Update
Things continue moving at a rapid pace as we head into the summer months. We continue to fight a two-front battle on Capitol Hill, we have been informed that mail processing operations will be discontinued at the Twin Cities L&DC, and the National Union is preparing to enter negotiations over the terms of our next contract. Once again, it’s time to lean our shoulders to the wheel.
The 2025 NPMHU Legislative Conference was held on May 13th and 14th in Wahington, DC. The Local 323 legislative team was comprised of myself, Vice President Dean Abatte, and ND State Executive Board Member Brock Engstrom. After a day of training, we went to Capitol Hill to lobby our Congressional representatives. Congress was in session and all but one of our meetings ended up being with Legislative Assistants. Additionally, there was one Congressional office that was unable to fit us into their schedule. That did not deter us, however, as we stopped in anyways and provided materials. Pictures of the Local 323 team at the Legislative Conference may be found in the Photo Galleries.
As I previously noted, we are fighting a two-front battle on Capitol Hill. First, to ensure that the Postal Service remains an independent establishment of the Federal Government and is not subject to privatization. And second, to preserve the current retirement benefits of Postal employees. The latter, of course, has recently been a prominent subject of contention on the web as well as social media.
Our efforts at ensuring that the Postal Service remains an independent establishment of the Federal Government and is not subject to privatization, centers around House Resolution 70 (H. Res. 70) and Senate Resolution 147 (S. Res. 147). Both Resolutions are in support of this proposition and that determined our approach to the issue at each Congressional office. In offices where the Senator or Representative had not signed on a cosponsor, we provided information and requested that the Senator or Representative become a cosponsor. Conversely, in Congressional offices where the Senator or Representative was a cosponsor, we thanked them for their support. It is worth noting that one Minnesota Representative became a cosponsor of H. Res. 70 the week following our meetings.
Turning to our battle to preserve the current retirement benefits of Postal employees, some context is necessary. During the early hours of May 15, 2025, the U.S. House of Representatives voted along party lines (215-214) to pass its budget reconciliation package (H. R. 1 (a.k.a., The Big Beautiful Bill) which includes proposed cuts to the retirement benefits of Postal employees. That bill has now been sent to the Senate for consideration. What follows is an analysis of the changes made to the bill passed by the House of Representatives on May 15, 2025. This is where things stand right now. This is not to say that further changes couldn’t be made by the Senate.
Section 90001. INCREASE IN FERS EMPLOYEE CONTRIBUTION REQUIREMENTS.
The section initially proposed to increase the FERS annuity contribution of all Postal (and Federal) employees hired before to 2014 to 4.4% of their basic pay. Several sources referred to the language as an “ungrandfathering provision”, which is a confusing way to say that the change would be made retroactive. This proposal was removed from H. R. 1 by the House Budget Committee and is not contained in the version of the bill that was sent to the Senate. As such, it currently appears that no change will be made in the percentage of the FERS annuity contribution made by Postal employees.
Section 90002. (Now Renumbered as Section 90001) ELIMINATION OF THE FERS ANNUITY SUPPLEMENT FOR CERTAIN EMPLOYEES.
The section initially proposed to eliminate the FERS annuity supplement effective on the date of the bill’s (Budget Resolution’s) enactment. This proposal was changed in H. R. 1 by the House Budget Committee and expanded an exemption for Federal employees required to retire at an earlier age (air traffic controllers, Federal law enforcement officers, etc.). Unfortunately, there is currently no such exemption for Postal employees. The House Budget Committee also amended the effective date of the change to January 1, 2028, and clarified that employees may maintain eligibility for the annuity supplement if they’re “entitled” to it prior to that date. The Union will continue to advocate against this change with the objective of having the Senate remove it from the Budget Resolution.
Section 90003. (Now Renumbered as Section 90002) HIGH-5 AVERAGE PAY FOR CALCULATING CSRS AND FERS PENSION.
The section proposes to change the calculation of CSRS and FERS annuities from an average of an employee’s base pay during their “high 3” years to an average of an employee’s base pay during their “high 5” years. The only amendment adopted by the House Budget Committee was to delay the effective date from the date of enactment to January 1, 2028. There has been a common misconception that only employees covered by FERS would be impacted by this change. That is not the case. The proposed change in the calculation will affect employees covered by both FERS and CSRS. If this provision is included in the final budget resolution, everyone retiring after January 1, 2028, will receive a reduced retirement annuity irrespective of whether they are covered by FERS or CSRS. Again, the Union will continue to advocate against this change with the objective of having the Senate remove it from the Budget Resolution.
Section 90005. (Now Renumbered as Section 90004) FILING FEE FOR MERIT SYSTEMS PROTECTION BOARD CLAIMS AND APPEALS.
The section proposes to charge a fee of $350.00 to employees eligible to file an appeal with the Merit Systems Protection Board (MSPB). Generally, Preference Eligible Veterans may appeal a Notice of Proposed Removal, a Suspension of more that 14-Days (or Enforced Leave), a Reduction in Force, or a Reduction in Grade, to the MSPB. In addition, employees who have been injured on-the-job may file an appeal to the MSPB in situations where the Postal Service refuses to reemploy them following their recovery from a compensable injury. To put it bluntly, how anyone can conclude that it is a good idea to charge Veterans or injured employees a fee to exercise their rights is beyond my comprehension. The Union opposes this change and will seek to have the Senate remove it from the Budget Resolution.
These proposals represent a direct attack by Congress on the benefits and rights of Postal Employees. While there are other changes, and other proposals which the Union will seek to have removed by the Senate, these are the big-ticket items. This is where things stand following the May 15th passage of H.R. 1 (Budget Resolution, Big Beautiful Bill). The Senate could make these proposals better or they could make them worse. This has been a difficult topic to address and sorry if I became overly technical. Still, I can’t emphasize strongly enough how fervently the Union has been fighting, and will continue to fight, any Congressional attacks on the benefits and rights of the Membership.
Turning to a local situation, by letter dated May 15, 2025, the Union was informed of the upcoming elimination of Mail processing operations at the Twin Cities L&DC. A meeting was immediately scheduled with the St. Paul Plant Manager to discuss management’s plan. In attendance for the Union were me, Branch President Edward Yun, and L&DC Steward Brian Lay. Management informed us of their plan, which represents a complete closure of the Mail processing aspect of the building, and that they’ve made all the machinery and equipment available to other Postal facilities. Mail volume at the L&DC has been declining since the shift from air to ground transportation under the former Postmaster General. For several years I worked with the National Union to insource work being performed by a Terminal Handling Service (THS). It was my hope to see this THS work insourced to the L&DC. While we were successful in securing an agreement to have the THS work insourced, it is being insourced into the St. Paul plant. I guess that I’ll have to be satisfied with knowing that work which had been subcontracted will soon be in the hands of Mail Handlers. Management has indicated that the change will occur during July and has stated that Mail Handlers will remain as long as Mail processing remains. In any event, this is a fresh issue and we’ll be keeping a close eye on the situation as things progress.
The fight for our next contract will commence on June 25th when negotiations open between the NPMHU and the USPS. There is a commitment to increasing the wages of both Mail Handlers and MHAs, as well as many substantial contract proposals (including a couple good ones from Local 323) which aim to improve our workplace lives. Everyone is fired up and the NPMHU is ready to roll. Updates on the progress towards our next contract will be sent out by the National Union and posted on our website.
Lastly, the Local 323 2025 Organizing Drive has commenced. Any Member who signs up a non-member will receive a check in the amount of $100.00 for the duration of the 2025 Organizing Drive. Materials and lists of Mail Handlers and MHA’s who are not Members of the Union as well as an 1187 form to sign them up are available from your Branch Union office. See your Branch President or Steward for more information. The Union fights like hell for Mail Handlers and it’s time for everyone to Join the Union and Join the Fight. There is no good reason for not belonging to the Union.
JL