April 7, 2023
Last April, NALC and USPS settled an interpretive dispute over the Postal Service’s method of calculating overtime pay, Sunday premium pay, general wage increases, and cost of living adjustments (COLAs) for Part-Time Flexible (PTF) city letter carriers in Step AA. The dispute centered around the implementation of the new language contained in Article 9 Section 8 and Article 11 Section 7 of the 2019 National Agreement and how they interact with each other. The settlement upheld NALC’s position.
At the time of the settlement, the parties recognized significant administrative changes would be necessary to implement the terms of the agreement. Those changes are now ready to be implemented beginning with Pay Period 9, which begins this Saturday, April 8. All hours worked beginning on that date should reflect the new rates specified below. Any back pay that may be due to letter carriers for hours in which they worked while in Step AA prior to that date will tentatively be paid on the paycheck that will be received on July 21, 2023.
As a result of the Postal Service’s incorrect calculation, PTF’s currently at Step AA are being underpaid by $1.25 for each overtime hour worked, $1.67 for each penalty overtime hour and $0.21 for each hour of Sunday Premium. The calculation has also currently resulted in an eleven-cent deviation of the straight time rates between PTFs at Step AA and Full-Time Regulars at Step A. The new rates for PTFs in Step AA should reflect the following:
Sunday premium – $5.53 per hour
Straight time rate – $22.13 per hour
Overtime rate – $33.20 per hour
Penalty overtime rate – $44.27 per hour
The settlement from last April, M-01980 in NALC’s Materials Reference System, can be read here (or below).