USPS Offers $15K Buyouts In Overstaffed Facilities: Unions And Critics Weigh In

The United States Postal Service (USPS) is offering employees a voluntary early retirement incentive to address overstaffing in its facilities. This incentive includes lump-sum payments equaling up to $15,000. According to the Federal News Network, Postmaster General Louis DeJoy is employing this opportunity to improve the organization’s efficiencies as part of a broader strategy. 

A spokesperson for USPS told the Federal News Network that the retirement incentive is available for certain employees within the National Postal Mail Handlers Union (NPMHU) and the American Postal Workers Union (APWU). 

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A memorandum of understanding (MOU) between USPS and the APWU went out to employees, stating that eligible full-time employees will receive $10,000 on Aug. 15, 2025 and the remaining $5,000 on Aug. 28, 2026. Certain part-time employees may also be eligible for prorated amounts. 

Not every full-time employee can volunteer for this incentive. There are certain qualifications one must meet, including: 

• Being at least 50 years old with at least 20 years of creditable federal service OR any age with at least 25 years of creditable federal service
• At least five years of creditable civilian service

The offer is available until March 7, 2025 and those who volunteer to retire must do so by April 30, 2025 – even if they already had a set retirement date for later this year, according to the MOU.

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Certain exclusions also apply. Employees with pending removal notices or those retiring due to disability won't be eligible for the incentive. Also, employees who reapply for USPS positions within two years may be required to repay the incentive. 

Since DeJoy assumed office in 2020, the USPS has faced significant workforce reductions. During his tenure, the USPS cut about 20,000 jobs and reduced the total number of work hours by 45 million, according to Federal News Network. At the same time, the USPS converted 190,000 noncareer employees to career positions, offering them better benefits and pay. 

The APWU and NPMHU have expressed support for the voluntary retirement incentive, seeing it as a collaborative effort with USPS to address workforce challenges. However, concerns remain about the broader implications of workforce reductions. Republican lawmakers have criticized converting noncareer employees to career positions, citing increased labor costs. USPS reported a $9.5 billion net loss for fiscal year 2024, intensifying scrutiny of its financial decisions.

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This isn't USPS's first attempt at voluntary workforce reductions. In 2013, the agency offered a similar $15,000 incentive to APWU employees. More recently, nonunion employees at USPS headquarters were offered early retirement opportunities in 2021, albeit without additional financial incentives.

As USPS continues to navigate financial and operational changes, the success of this buyout program could set a precedent for future workforce restructuring efforts. Eligible employees have until early March to decide and their choices will likely shape USPS's ability to balance cost savings with service quality.

For more information, employees are encouraged to review the detailed guidelines provided by USPS and consult with their union representatives.

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