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NPMHU, USPS Contract Arbitration Award

NPMHU, USPS Contract Arbitration Award

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mail handlers arb award

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Published by: PostalReporter.com on Feb 19, 2013
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BEFORE THE BOARD OF INTEREST ARBITRATION  _______________________________________ In the Matter of: ) )UNITED STATES POSTAL SERVICE ) )and ) 2011 National Agreement  )NATIONAL POSTAL MAIL HANDLERS )UNION, AFL-CIO ) _______________________________________ ) AWARDBOARD OF ARBITRATION HERBERT FISHGOLD, Impartial Chair ROBERT DUFEK, USPS Member ROBERT WEINBERG, NPMHU Member  AWARD DATE: FEBRUARY 15, 2013 APPEARANCES FOR THE PARTIES NPMHU Bruce R. Lerner, Bredhoff & Kaiser, PLLC, Washington, D.C.Matthew Clash-Drexler, Bredhoff & Kaiser, PLLC, Washington, D.C.USPS Thomas E. Reinert, Jr., Esq., Morgan Lewis & Bockius, LLP, Washington, D.C.Stephan J. Boardman, Esq., Chief Counsel, Appellate and Commercial Litigation, Washington, D.C.Teresa A. Gonsalves, Esq., Chief Counsel, Labor Relations, Washington, D.C.Sonya J. Penn, Labor Relations Specialist, Washington, D.C.Katherine P. Sullivan, Labor Relations Specialist, Washington, D.C.
1BACKGROUND This Award sets forth the terms and conditions of employment for the employeesrepresented by the National Postal Mail Handlers Union (“NPMHU), which is a nationallabor organization that is the exclusive collective bargaining agent for approximately42,000 mail handlers employed by the United States Postal Service (“USPSor “PostalService”) throughout the United States. The USPS is an independent establishment of the Executive Branch of theGovernment of the United States, authorized to provide mail services to the Americanpublic. 39 U.S.C. Sections 101 and 201. The Postal Service was created by the PostalReorganization Act (“PRA”) of 1971, as subsequently amended by the PostalEnhancement and Accountability Act (PAEA”) of 2006. It is the successor to the formerPost Office Department.Pursuant to Section 1207(c) of Title 39 of the U.S. Code, the PRA, P.L. 91-373,39 U.S.C. Section 101 et seq., the Federal Mediation and Conciliation Service (“FMCS”)has designated the undersigned as an Arbitration Board for the purpose of resolving thepresent dispute between USPS and the NPMHU regarding the terms of the 2011National Agreement between the parties that will serve as the successor to their 2006National Agreement, which expired at midnight on November 20, 2011. During the 90-day period prior to the expiration of the 2006 Agreement, the parties’ representativesengaged in good-faith collective bargaining with respect to proposals for a newagreement. Formal negotiations began on August 30, 2011, and were extended untilthe parties declared impasse on January 27, 2012.On March 22, 2012, FMCS appointed Arbitrator Herbert Fishgold to mediate thedispute between the parties. Mediation between the parties was unsuccessful. The
2parties then proceeded to interest arbitration, and a striking procedure implemented bythe parties led to Arbitrator Fishgold’s appointment as Chair of the Arbitration Board.On October 15, 2012, the Postal Service and the NPMHU entered into a Memorandumof Agreement regarding “Interest Arbitration Procedures” executed by counsel for theUSPS and NPMHU (hereinafter, “Ground Rules”).In accordance with the Ground Rules, the parties submitted pre-hearing briefs tothe Board on November 7, 2012. The Board heard opening statements from bothparties at the offices of Morgan, Lewis & Bockius on November 9, 2012. The partiesproceeded to present evidence over the course of several additional hearing datesscheduled from November 2012 through early in February 2013. Throughout the course of the hearing, the Postal Service argued the followingpoints:
The Postal Service has experienced an unprecedented and permanentdecline in First-Class mail revenue due largely to electronic diversion. This fact, combined with certain regulatory burdens imposed by Congress,has led to a dangerous and untenable financial situation for the PostalService—one that cannot be solved by Congressional action alone. Aspart of a comprehensive solution, the Postal Service, with the aid of thisBoard, must restructure its labor costs, including those involved in mailhandling and processing.
Part of the Postal Service’s response to its financial crisis has beenrationalization of its mail processing network. This has includedconsolidation of over 600 mail processing facilities into approximately 417,with possible further consolidation down the road to better align the

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