National Association of Postal Supervisors v. United States Postal Service, No. 20-5280 (D.C. Cir. 2022)
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The Postal Reorganization Act of 1970 authorizes USPS to “classify and fix the compensation and benefits of all officers and employees,” 39 U.S.C. 1003(a), to “provide adequate and reasonable differentials in rates of pay between employees in the clerk and carrier grades . . . and supervisory and other managerial personnel.” USPS must “achieve and maintain compensation for its . . . employees comparable to the rates and types of compensation paid in the private sector of the economy” and must allow organizations representing supervisory and other managerial employees “to participate directly in the planning and development of pay policies and schedules” relating to supervisory and managerial employees.
The Association, a recognized organization of supervisory personnel, challenged USPS’s adoption of the 2016–2019 pay package for “Field” Executive and Administrative Schedule personnel. The district court dismissed the complaint, finding that the cited provisions state “policy goals.” not mandatory and enforceable directives.
The D.C. Circuit reversed. The Association plausibly alleged that USPS exceeded its statutory authority by failing to institute “some differential” in pay for supervisors and by failing to demonstrate that it set its compensation levels by reference, inter alia, to the compensation paid” in the private sector. USPS failed to comply with the Act by refusing to consult with the Association on compensation for “Area” and “Headquarters” employees; by refusing to consult regarding postmasters; and by failing to provide the Association with reasons for rejecting its recommendations.
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