WASHINGTON, D.C. – After months of negotiations, the U.S. Postal Service (USPS) and the National Association of Letter Carriers have reached a tentative contract agreement covering 200,000 city mail carriers. The deal promises pay raises, cost-of-living adjustments, and long-awaited air-conditioned delivery vehicles. If ratified by union members, the contract will run through November 2026 and aims to improve working conditions and modernize USPS’s fleet.
The new agreement, which still requires a vote by union members, includes three annual pay increases of 1.3% each by 2025, along with retroactive raises dating back to November 2023. Additionally, mail carriers will receive retroactive cost-of-living adjustments (COLAs), providing immediate financial benefits to workers who have been operating under an expired contract since May 2023.
“This is a fair and responsible agreement that serves the best interest of our employees, our customers, and the future of the Postal Service,” said Doug Tulino, USPS Deputy Postmaster General, and Chief Human Resources Officer. The agreement aligns with USPS’s “Delivering for America” plan, which aims to modernize operations and adapt to changing customer demands over the next decade.
A significant component of the tentative contract is a commitment to improve working conditions by providing air-conditioned mail trucks—a long-standing demand among carriers. The updated fleet will include newly designed electric delivery vehicles, which began rolling out this summer. The initiative addresses safety concerns that have persisted for years, as older trucks have been prone to breakdowns, fires, and a lack of air conditioning.
Brian Renfroe, President of the National Association of Letter Carriers, acknowledged the challenges of the negotiations but praised the outcome. “Both sides didn’t get everything they wanted. But by bargaining in good faith, we ended with an agreement that meets our goals and rewards our members,” Renfroe told The Associated Press.
Renfroe emphasized that the new contract provides immediate benefits and supports long-term career growth. One of the most significant changes in the agreement is a faster pathway for new employees to reach top pay levels, addressing concerns about pay disparities within the workforce.
The tentative deal also mandates that USPS consult with the union on any plans to purchase new vehicles without air-conditioning, underscoring the union’s commitment to improving working conditions. “This contract recognizes the hard work and dedication of our members, who have delivered for the American public through challenging conditions,” Renfroe added.
In line with the agreement, USPS’s new electric delivery vehicles will become the primary delivery trucks nationwide over the next few years. The fleet expansion, expected to reach 60,000 vehicles, will prioritize safety and sustainability. The vehicles have air-conditioning, enhanced safety features, and better fuel efficiency.
While the new trucks may not win design awards, they have already received positive feedback from mail carriers, who have long dealt with outdated vehicles lacking basic amenities. “It’s a night-and-day difference,” said one carrier. “Having air-conditioning alone is a game-changer, especially during hot summer months.”
The new fleet will replace the existing delivery vehicles that have been in service for decades. Many of these vehicles have become notorious for breaking down or overheating in extreme temperatures. The shift toward electric vehicles is part of USPS’s broader sustainability goals, as the agency aims to reduce its carbon footprint while enhancing operational efficiency.
Union members must ratify the contract, which could take several weeks. If approved, the agreement will mark the second contract negotiated under Postmaster General Louis DeJoy, appointed in 2020. The agreement, however, only applies to city mail carriers, as a different union represents rural carriers.
Union leaders are optimistic that members will vote to approve the contract, given the backdated pay raises, COLAs, and commitment to improving working conditions. “We believe this contract is a strong step forward for our members,” Renfroe said. “It’s a testament to what can be achieved through collective bargaining and mutual respect.”
The contract represents a critical step for USPS in addressing workforce challenges while implementing its “Delivering for America” plan. The agency has faced ongoing financial difficulties, operational setbacks, and service delays. According to USPS, the agreement not only meets labor demands but also aligns with its broader mission to provide reliable service across the country.
The tentative agreement arrives at a time when labor relations have become a central focus for many industries. Amid increasing demand for fair pay and improved working conditions, mail carriers have been vocal advocates for better treatment. The promise of air-conditioned trucks, in particular, reflects a shift toward addressing long-standing safety and comfort concerns.
As USPS works to modernize its fleet and improve service, the agency must also navigate the complexities of implementing the new contract. “The real test will be how quickly and effectively the changes outlined in this agreement are put into practice,” said a labor expert. “But this deal is a positive signal for workers and the organization.”
If ratified, the contract will stabilize USPS and its workforce after months of uncertainty. It will also serve as a benchmark for future negotiations as the agency seeks to balance labor needs with financial sustainability.
