PostalPEOPLE will feature redesigned processes that streamline, standardize, and automate HR processes by replacing existing, outdated technology with one, fully integrated HR system that will include a Shared Service Center and enhanced self-service. The result will be "one-stop shopping" for all employees and managers to conduct their personnel activities.

Implementation of PostalPEOPLE begins in January 2005 with completion in 2007. In 2004 the Board of Governors approved the Decision Analysis Report for PostalPEOPLE. Field briefings about the project were conducted for all Personnel employees and a location for the Shared Service Center was selected. Benefits Online, a Web-based tool that provides benefit information, was implemented to a segment of employees, with plans to expand coverage to a wider audience.

6. Labor Relations

a. Collective Bargaining

The Postal Service has nine collective bargaining agreements with seven unions covering approximately 680,000 employees. Negotiations with Postal Service unions cover a full range of topics involving wages, benefits, and conditions of employment.

In August 2004 the Postal Service and the National Rural Letter Carriers' Association reached a tentative agreement to extend the current 2000–2004 National Agreement for two additional years through November 20, 2006. The tentative agreement provides for a 1.3 percent wage increase effective November 27, 2004, and a 1.3 percent increase effective November 26, 2005. Other terms include continuing the cost-of-living allowance, establishing a standard time allowance for reloading and unloading vehicles, an increase in the reimbursement rate for rural carriers who furnish their own vehicles, and creating a joint task force to discuss issues related to future developments in mail delivery. The tentative contract extension is applicable to approximately 118,000 employees. The tentative agreement has since been ratified.

In May 2004, the Postal Service and the National Postal Professional Nurses (NPPN) reached a tentative agreement to extend the 1999–2004 National Agreement for an additional two years. The extension agreement was ratified in June 2004. The terms of the extension include annual general salary increases based on increases in the Employment Cost Index — the first effective August 21, 2004, and the second effective August 20, 2005. Eligible employees received uniform allowance program increases of 5 percent in August 2004.

The Postal Service and NPPN also agreed to work together to address the grievance backlog. The agreement is now due to expire August 18, 2006.

In October 2004 a tentative agreement was reached with the Fraternal Order of Police (FOP), National Labor Council USPS No. 2 (which represents approximately 870 postal police officers) for a successor to the collective bargaining agreement that expired on April 9, 2003. The tentative agreement has since been ratified.

The Postal Service and the NALC, AFL-CIO published the fifth edition of the Postal Service-NALC Joint Contract Administration Manual in February 2004. Distribution was made in both hardcopy and electronically to insure availability to all city delivery and Labor Relations offices. First negotiated and published in 1998 and updated yearly, this guide is an essential component of the Postal Service-NALC dispute resolution procedure. In August 2004 the Postal Service and the NALC jointly developed and delivered contract application training and process support to nearly 150 Postal Service and NALC Step B representatives in two sessions. Step B representatives are responsible for addressing and resolving disputes at the local level. This training component was developed by the national parties in the belief that continued success in reducing workplace disputes is dependent on continued support and training at the national level.

The Postal Service finalized a Joint Contract Interpretation Manual (JCIM) with the APWU in June 2004. The purpose of the JCIM is to provide guidance to the field on contract application and to reduce grievances. The parties began conducting joint training on the JCIM in October 2004, with a target audience of supervisors and union officials nationwide.

The Postal Service and NPMHU continued joint training on their Contract Interpretation Manual. In addition, for the seventh consecutive year, the parties co-hosted an annual Quality of Work Life Conference.

b. Consultation with Management Associations

Throughout the year a program of consultations was conducted with each of the management organizations. These organizations represent postmasters, managers, supervisors, and other nonbargaining employees. The sessions provided an opportunity for the organizations — the National Association of Postal Supervisors, the National Association of Postmasters of the United States, and the National League of Postmasters - to participate directly in the planning, development, and implementation of programs and policies affecting approximately 80,000 managerial employees. The resident officers of the three organizations collaborated with senior management in support of this effort.