Members of the National Postal Mail Handlers Union (NPMHU) have voted to ratify a new five-year contract. The new contract will run through Nov. 20, 2011, and affect approximately 55,000 career U.S. Postal Service employees who are engaged in bulk transfer, loading and unloading of mail.

The agreement provides for the following retroactive and future general wage increases (based on salary in effect on
Sept. 2, 2006):

  • Effective Nov. 25, 2006 1.2 percent increase.
  • Effective Nov. 24, 2007 1.2 percent increase.
  • Effective Feb. 16, 2008 0.6 percent increase.
  • Effective Nov. 22, 2008 1.2 percent increase.
  • Effective Nov. 21, 2009 1.2 percent increase.
  • Effective Nov. 20, 2010 1.2 percent increase.

Effective Nov. 25, 2006, a new step (Step P) is added to the top of the Mail Handler pay schedule, and effective Feb. 3, 2007, a new entry step (Step AA) will be added to the beginning of the Mail Handler pay schedule.

The contract also contains continuation of cost-of-living adjustments (COLA) at current levels and a reduction in the Postal Service contribution rate for health insurance by one point during each year of the contract.

Since 1775, the United States Postal Service and its predecessor, the Post Office Department, have connected friends, families, neighbors and businesses by mail. An independent federal agency that visits more than 146 million homes and businesses every day, the Postal Service is the only service provider delivering to every address in the nation. It receives no taxpayer dollars for routine operations, but derives its operating revenues solely from the sale of postage, products and services. With annual revenues of $72 billion, it is the world's leading provider of mailing and delivery services, offering some of the most affordable postage rates in the world. The U.S. Postal Service delivers more than 46 percent of the world's mail volumesome 213 billion letters, advertisements, periodicals and packages a yearand serves 10 million customers each day at its 37,000 retail locations nationwide.