The U.S. Postal Service and the union representing its members could not come to an agreement on the agency’s newest contract for federal workers, and the next step is arbitration in court. 

The decision comes after union members voted to reject a proposed bargaining agreement  63,680 to 26,304, the National Association of Letter Carriers (NALC) announced last month. Shortly after, the postal service confirmed that negotiations would be reopened for 15 days.

The NALC represents 295,000 active and retired letter carriers, and according to some union members, one of the primary changes they’d like to see in the new contract is a general annual pay raise higher than the 1.3% increase included in the rejected contract.

Some members also pushed for higher uniform allowances amid inflation and converting non-career positions to career jobs.

'We deserve more':USPS union members vote to reject contract agreement

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Next course of action is arbitration

The National Association of Letter Carriers (NALC) made its most recent announcement about arbitration Wednesday.

According to the NALC,  the union’s executive council voted unanimously to shut down terms with the postal service that would’ve led to a modified tentative agreement. The agreement would’ve been sent to eligible NALC members for a second vote.

“While there was some movement on the issues that matter to letter carriers during this 15-day period of good faith bargaining, it was not enough to produce a fair contract for the active members of NALC,”  NALC President Brian L. Renfroe said in the announcement. 

Postal workers:USPS workers push for higher pay, uniform allowances after rejecting contract

What is arbitration?

Because federal workers legally cannot strike, when the union and the postal service cannot come to an agreement, the next step is arbitration, Renfroe previously told USA TODAY.

The arbitration panel is made up of a neutral arbitrator, one selected by the postal service, and one selected by the union, Renfroe said. During the process, there may be expert witnesses, attorney arguments and also testimonies from union members, Renfroe said.

“(We) basically put on our case to support what we want to achieve in bargaining,” he said. “That decision is made by that neutral arbitrator as to what the terms and conditions of the agreement will be.”

Once made, that decision is final, he said.

Arbitrator Dennis R. Nolan will serve as chair of the three-person arbitration panel, the NALC said Wednesday.

“We’re ready to fight like hell in arbitration,” Renfroe told USA TODAY previously.

Saleen Martin is a reporter on USA TODAY's NOW team. She is from Norfolk, Virginia – the 757. Email her at [email protected].