The U.S. Postal Service and the American Postal Workers Union (APWU) on Tuesday reached a tentative one-year contract extension. Subject to approval by union members, the tentative agreement is scheduled to cover the period between Nov. 20, 2005, and Nov. 20, 2006, and includes a 1.6% wage increase that would take effect in March 2006. The agreement, which would affect more than 287,000 postal employees, also includes the continuation of a cost-of-living allowance and maintains members’ current share of health-care costs.
APWU spokesperson Sally Davidow says that the agreement has been in the works for some time. “A few months back – in March or April – President Bush announced an extension on this issue, and then it lost momentum for a while,” says Davidow. “But about a week ago or so the issue began to be taken seriously and was finally taken care of.”
While there is no set timetable, an official decision on the proposed extension could come down within one month.