July 2025 Update
We’re all breathing a sigh of relief after several items impacting our retirement benefits were removed from the “Big Beautiful Bill”, contract negotiations are underway, and locally, we’re experiencing some chaos resulting from the insourcing of Terminal Handling Services (THS) into the St. Paul P&DC.
The “Big Beautiful Bill” 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 (with no corresponding increase in benefits), change the annuity computation from “high 3” to “high 5” average salary, eliminate the FERS supplement for those who are eligible to retire before they qualify for Social Security, and, link new hire FERS contribution rates to Union Membership. Fortunately, between a coalition of impacted groups and procedural hurdles contained in the rules of the Senate, all these items were removed from the final Budget Resolution. In addition, a proposal to charge Preference Eligible Veterans a $350.00 fee for filing an appeal with the Merit Systems Protection Board was also, and appropriately, removed from the final Budget Resolution.
I don’t believe it would be overstating the point to say that we really dodged a bullet here. If these proposals had been enacted, they would have had a substantial impact on Mail Handler prosperity, both while working and when receiving future retirement benefits. One battle may have been won, but more than a few could be looming on the horizon. There are several pieces of legislation held in various committees which have the potential to detrimentally impact the Postal Service and Postal employees; and we don’t have the luxury of presuming that Congress or the administration is done with Federal or Postal employees. We must and will continue to be vigilant.
Contract negotiations continue at an initial stage; and contract updates are being circulated to the Branches as well as posted on the website. It’s too early to speculate on any potential outcome. We must keep in mind that any tentative agreement is subject to a ratification vote. I know firsthand that the National Union is well prepared and focused on addressing the issues of upmost concern to the Membership. Primarily wages, proportional COLA, and the use of 204-b’s. Further information and additional contract updates will be provided as things progress.
For several years I’ve been working with the National Union to “insource” the subcontracted Terminal Handling Services (THS) back into a Postal facility and put his work back into the hands of Mail Handlers. On July 21st, the THS operation went online in the St. Paul P&DC. Since then, I’ve observed the operations personally, and I’ve been working with our LDRC representatives (Vice President Dean Abatte and Branch President Edward Yun) on developing an appropriate jurisdictional inventory. In addition, Branch President Yun and I have been working on the integration of the operation into the facility. Further implementation of the THS operations remains at the top of our current activities.
So far this has been a summer of intense activity, and I don’t see the pace slowing anytime soon.
JL