APWU Milwaukee Area Local 3
8/13/25
Second Cost of Living
Adjustment Announced
Today
On August 12, 2025, the July Consumer Price Index
(CPI-W 1967=100) was released. This is the index that
sets the Cost-of-Living Allowances (COLAs) for the
APWU contracts. In July, the final month of the six-
month adjustment period for the second COLA under
the 2024 Agreement, the CPI-W Unadjusted Index
(1967=100) increased from last month to 942.307.
Based on this increase, the second COLA for career
employees who fall under the National Agreement will
be $811.00 per year. That equates to 39¢ per hour. So
far, under the 2024 National Agreement, employees
have accrued adjustments totaling $1,206.
Under the terms of the National Agreement,
career employees are due multiple pay increases
•
1.3% effective November 16, 2024
•
$395 COLA effective March 8, 2025
•
$811 COLA effective September 6, 2025
•
1.4% effective November 15, 2025
Postal Support Employees (PSEs) are due a 2.3% raise
according to the new union contract.
As of August 12, 2025, the Postal Service has not
informed the APWU of the date that the pay increases
will be reflected in paychecks. The Postal Service is in
the process of setting the necessary programming
timeline to implement all the pay increases.
“Our union family who work in IT/AS must program the
necessary changes to the payroll systems for these
increases to take effect. Postal management has not
yet provided a timeline as to when these changes will
show in your paycheck, but the parties agree on the
effective dates and that these pay increases will be
paid retroactively,” said Industrial Relations Director
Charlie Cash, “I am in constant communication with
the Postal Service on these pay issues, and as soon as I
have a tentative schedule of when the pay increases
our members are due will show up in paychecks, it will
be announced.”
In addition to the pay increases, other provisions of
the 2024 National Agreement are set to go into effect
“the first full pay period 180 days after ratification”.
These provisions include:
•
Upgrade of Grade 3 to Grade 4
•
Elimination of Step JJ in Grade 4
•
Elimination of entry Step-GG for PSEs who are
automatically converted to career after 24 months
•
Additional Pay/New Steps for PSEs and PSEs in
RMPOs
Based on the date of ratification, the date of
implementation for these provisions will be the start of
pay period three of 2026 (PP03-2026), which starts on
January 10, 2026.
New top steps for employees who are in the post-2010
(new/lower tier) Pay scales (Grade 4 to Step J, Grade 5
to Step L, Grades 6 and 7 to Step M) effective
September 19, 2026 (PP21-2026.)