USPS APWU 2024-2027 Tentative Collective Bargaining Agreement

The American Postal Workers Union (APWU) and the U.S. Postal Service (USPS) have reached a tentative three-year Collective Bargaining Agreement (CBA), covering the period from September 21, 2024 through September 20, 2027. Announced by APWU President and Lead Negotiator Mark Dimondstein, this agreement represents significant wage, benefits, and job protections for over 200,000 postal workers. Below is a comprehensive summary of the key terms:

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Contract Time Period

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• A three-year term effective September 21, 2024, through September 20, 2027.

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General Annual Wage Increases and Cost-of-Living Adjustments (COLA)

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• Wage increases for career employees:
  
  • 1.3% on November 16, 2024 (paid retroactively)
  • 1.4% on November 15, 2025
  • 1.5% on November 14, 2026
• Postal Support Employees (PSEs), who do not receive COLA, receive an additional 1% increase each year (2.3%, 2.4%, and 2.5%) and an extra $0.50/hour after 26 weeks.
• PSEs working four-hour Remotely Managed Post Offices (RMPOs) not subject to automatic career conversion receive an additional $1.00/hour after four years.
• Full COLA for career employees will be paid six times, in the second full pay period after CPI release for January 2025 (retroactive), July 2025, January 2026, July 2026, January 2027, and July 2027. APWU remains the only postal union with full COLA protection. You should read about the apwu pay scale 2025 if you know about the agreement.

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Changes to Post-2010 Pay Scales

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• Within 180 days of contract ratification:
  
  • Grade 4 eliminates Step-JJ; new starting step is Step II.
  • Entry Step-GG eliminated in Grades 5-7 for PSEs automatically converted to career after 24 months.
• Grade 3 upgraded to Grade 4 effective September 19, 2026.
• New top steps added for Grades 4 through 7:
  
  • Grade 4 Step J, Grade 5 Step L, Grade 6 Step M, Grade 7 Step M.
• Waiting period for step increases remains the shortest of all postal contracts.

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Increased Night Shift Differential

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• Increased by 4.0% effective September 25, 2025.
• Additional increase of 2.0% effective September 19, 2026.

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Job Security

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• Career employees with six years of service retain protection from layoff.
• All career employees on the rolls as of September 20, 2024, including those with fewer than six years of service, are protected from layoff for the life of the agreement, extending no-layoff protection to over 70,000 additional employees.
• The 50-mile limit on excessing (forced transfer) remains.
• Moratorium on subcontracting Postal Vehicle Service (PVS) work continues unchanged.
• Automatic conversion of PSEs to career status after two years remains in full effect (except for four-hour RMPO PSEs).

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Health Insurance

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• No change in USPS contribution percentage for health premiums.
• USPS continues to contribute 95% of premiums for the APWU Consumer Driven Health Plan (CDHP).

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Uniform/Work Clothes Program Allowances

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• Annual 2.5% increases in uniform/work clothes allowances for 2025, 2026, and 2027.
• A National Level Task Force established to review the uniform purchase program.

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Additional Work Rule Changes

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• Annual leave exchange doubled from 40 to 80 hours.
• Annual leave carryover increased from 440 to 520 hours.
• Bereavement leave expanded to include mothers- and fathers-in-law, grandchildren, and stepparents.
• Employees converted to career within their first PSE term no longer serve two probationary periods.
• Additional nondiscrimination terms added to Article 2.1 to align with federal law.
• Existing Memorandums of Understanding (MOUs) carried forward.
• Expanded list of cases eligible for expedited arbitration and a pilot for virtual hearings in expedited arbitration.
• Arbitrators can no longer order briefs in discipline cases without joint party agreement.
• MOUs added to address Step-4 dispute backlog and letter of warning purging.
• Administrative leave due to “Acts of God” extended to include PSEs.

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Clerk Craft Provisions

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• Part-Time Flexible (PTF) employees may identify specific offices within a 50-mile radius where they want to work.
• Permanent PTF Hub Assignment MOU.
• One-time voluntary reassignment opportunity MOU for PTFs.
• USPS to provide 60 days’ notice for posting or revising EAS position descriptions involving bargaining unit work.
• Work group established to review Job Bid Management (JBM) tool to address bid exceptions locally.
• Telework MOUs guaranteeing no subcontracting for Customer Care Center and Mail Requirement Clerks for the life of the agreement.

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Motor Vehicle Service (MVS) Craft Provisions

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• Renewal of HCR Limitation MOU.
• Increased dollar and mileage limits for Highway Movement of Mail provisions.
• Seniority date protections for MVS transfers delayed beyond 90 days.
• Definition of “Reversion” added.
• Overtime Desired Lists updated by section/tour or LMOU.
• MVS employees in 204(b) status barred from conversion to full-time or career unless they return to craft full-time for continuous pay period.
• Clarification of seniority rights for “Preferred Assignments.”
• Vehicle Maintenance Repair Agreements (VMRA) terms added to Article 39.3.K.

• Updated MVS Training Initiatives Committee MOU.

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Maintenance Craft Provisions

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• Per diem payments continue for all offsite training.
• Annual In-Service Register opened to all APWU non-career employees.
• No yearly purge of employees on In-Service Register; removal only after twice declining positions.
• Updated JCIM Pecking Order: preference given to Maintenance employees excessed from closed installations, new steps added, and language strengthened.
• Eligibility expansion for Mail Processing Equipment Mechanics (MPE) for NST (ET-11).
• Revised article expanding Area Maintenance Technician (AMT) protection to those also classified as Maintenance Mechanic PS-7.
• Continuing education training every three years guaranteed for skilled Maintenance Craft workers.
• AMTs can request changes to reporting stations.
• Residual vacancies open to Notice of Intent (NOI) postings with local joint agreement after 120 days vacant.
• Established job protections for employees failing in-service promotion qualification or those hired from Entrance Register.

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Other Provisions

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• All provisions not modified remain in effect, including overtime, discipline, grievance-arbitration, holidays, and others.

This agreement was ratified with overwhelming support, with 95% of APWU members voting affirmatively. It provides balanced wage increases, cost-of-living protection, expanded job security, and critical improvements in work conditions without concessions, ensuring a stable and fair contract for thousands of postal workers through 2027.

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FAQs

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What is the new APWU contract 2025?

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The new APWU contract is a three-year tentative collective bargaining agreement between the American Postal Workers Union (APWU) and the U.S. Postal Service (USPS)** covering September 21, 2024, through September 20, 2027**. It includes annual wage increases, six full cost-of-living adjustments (COLA) for career employees, job security protections for tens of thousands of workers, improved benefits, and overtime, leave, and pay scale reforms with no givebacks or concessions.

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Are postal workers getting a raise in 2025?

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Yes, postal workers represented by APWU will receive a 1.4% general wage increase effective November 15, 2025. Additionally, career employees will receive a COLA adjustment in 2025 based on the Consumer Price Index (CPI) to keep wages aligned with inflation. Postal Support Employees (PSEs) get a higher raise of 2.4% plus additional hourly increases.

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How much is level 7 pay at USPS?

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Level 7 pay varies by step and location, but in the new contract, Grade 7 includes the introduction of a new top step (Step M) effective September 2026, providing higher maximum pay within that grade. Exact dollar amounts depend on the USPS official wage tables, which are published by the USPS and APWU following contract ratification.

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What is a tentative union agreement?

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A tentative union agreement is a preliminary contract negotiated between a labor union and an employer. It outlines agreed terms pending approval by union members and sometimes ratification by the employer. It is not final until ratified subject to member voting but establishes the framework for wages, benefits, and working conditions until the next negotiation.

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