U.S. Code » Title 39 » Part PART II— PERSONNEL › Chapter CHAPTER 10— EMPLOYMENT WITHIN THE POSTAL SERVICE

39 U.S.C. § 1004

Supervisory and other managerial organizations

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(a) It shall be the policy of the Postal Service to provide compensation, working conditions, and career opportunities that will assure the attraction and retention of qualified and capable supervisory and other managerial personnel; to provide adequate and reasonable differentials in rates of pay between employees in the clerk and carrier grades in the line work force and supervisory and other managerial personnel; to establish and maintain continuously a program for all such personnel that reflects the essential importance of a well-trained and well-motivated force to improve the effectiveness of postal operations; and to promote the leadership status of such personnel with respect to rank-and-file employees, recognizing that the role of such personnel in primary level management is particularly vital to the process of converting general postal policies into successful postal operations.(b) The Postal Service shall provide a program for consultation with recognized organizations of supervisory and other managerial personnel who are not subject to collective-bargaining agreements under chapter 12 of this title. Upon presentation of evidence satisfactory to the Postal Service that a supervisory organization represents a majority of supervisors, that an organization (other than an organization representing supervisors) represents at least 20 percent of postmasters, or that a managerial organization (other than an organization representing supervisors or postmasters) represents a substantial percentage of managerial employees, such organization or organizations shall be entitled to participate directly in the planning and development of pay policies and schedules, fringe benefit programs, and other programs relating to supervisory and other managerial employees.(c)(1) The Postal Service and the supervisors’ organization shall, unless otherwise mutually agreed to, meet at least once each month to implement the consultation and direct participation procedures of subsection (b) of this section.(2)(A) At least 7 days before each meeting, each party shall—(i) provide notice of agenda items, and(ii) describe in detail the proposals such party will make with respect to each such item.(B) Grievances of individual employees shall not be matters which may be included as agenda items under this paragraph.(d)(1) In order to facilitate consultation and direct participation by the supervisors’ organization in the planning and development of programs under subsection (b) of this section which affect members of the supervisors’ organization, the Postal Service shall—(A) provide in writing a description of any proposed program and the reasons for it;(B) give the organization at least 60 days (unless extraordinary circumstances require earlier action) to review and make recommendations with respect to the program; and(C) give any recommendation from the organization full and fair consideration in deciding whether or how to proceed with the program.(2) If the Postal Service decides to implement a program described in paragraph (1) of this subsection, the Postal Service shall before such implementation—(A) give the supervisors’ organization details of its decision to implement the program, together with the information upon which the decision is based;(B) give the organization an opportunity to make recommendations with respect to the program; and(C) give such recommendations full and fair consideration, including the providing of reasons to the organization if any of such recommendations are rejected.(3) If a program described in paragraph (1) of this subsection is implemented, the Postal Service shall—(A) develop a method for the supervisors’ organization to participate in further planning and development of the program, and(B) give the organization adequate access to information to make that participation productive.(4) The Postal Service and the supervisors’ organization may, by agreement, adopt procedures different from those provided by this subsection.(e)(1) The Postal Service shall, within 45 days of each date on which an agreement is reached on a collective bargaining agreement between the Postal Service and the bargaining representative recognized under section 1203 of this title which represents the largest number of employees, make a proposal for any changes in pay policies and schedules and fringe benefit programs for members of the supervisors’ organization which are to be in effect during the same period as covered by such agreement.(2) The Postal Service and the supervisors’ organization shall strive to resolve any differences concerning the proposal described in paragraph (1) of this subsection under the procedures provided for, or adopted under, subsection (d) of this section.(3) The Postal Service shall provide its decision concerning changes proposed under paragraph (1) of this subsection to the supervisors’ organization within 90 days following the submission of the proposal.(f)(1) If, notwithstanding the mutual efforts required by subsection (e) of this section, the supervisors’ organization believes that the decision of the Postal Service is not in accordance with the provisions of this title, the organization may, within 10 days following its receipt of such decision, request the Federal Mediation and Conciliation Service to convene a factfinding panel (hereinafter referred to as the “panel”) concerning such matter.(2) Within 15 days after receiving a request under paragraph (1) of this subsection, the Federal Mediation and Conciliation Service shall provide a list of 7 individuals recognized as experts in supervisory and managerial pay policies. Each party shall designate one individual from the list to serve on the panel. If, within 10 days after the list is provided, either of the parties has not designated an individual from the list, the Director of the Federal Mediation and Conciliation Service shall make the designation. The first two individuals designated from the list shall meet within 5 days and shall designate a third individual from the list. The third individual shall chair the panel. If the two individuals designated from the list are unable to designate a third individual within 5 days after their first meeting, the Director shall designate the third individual.(3)(A) The panel shall recommend standards for pay policies and schedules and fringe benefit programs affecting the members of the supervisors’ organization for the period covered by the collective bargaining agreement specified in subsection (e)(1) of this section. The standards shall be consistent with the policies of this title, including sections 1003(a) and 1004(a) of this title.(B) The panel shall, consistent with such standards, make appropriate recommendations concerning the differences between the parties on such policies, schedules, and programs.(4) The panel shall make its recommendation no more than 30 days after its appointment, unless the Postal Service and the supervisors’ organization agree to a longer period. The panel shall hear from the Postal Service and the supervisors’ organization in such a manner as it shall direct. The cost of the panel shall be borne equally by the Postal Service and the supervisors’ organization.(5) Not more than 15 days after the panel has made its recommendation, the Postal Service shall provide the supervisors’ organization its final decision on the matters covered by factfinding under this subsection. The Postal Service shall give full and fair consideration to the panel’s recommendation and shall explain in writing any differences between its final decision and the panel’s recommendation.(g) Not earlier than 3 years after the date of the enactment of this subsection, and from time to time thereafter, the Postal Service or the supervisors’ organization may request, by written notice to the Federal Mediation and Conciliation Service and to the other party, the creation of a panel to review the effectiveness of the procedures and the other provisions of this section and the provisions of section 1003 of this title. The panel shall be designated in accordance with the procedure established in subsection (f)(2) of this section. The panel shall make recommendations to the Congress for changes in this title as it finds appropriate.(h)(1) In order to ensure that postmasters and postmasters’ organizations are afforded the same rights under this section as are afforded to supervisors and the supervisors’ organization, subsections (c) through (g) shall be applied with respect to postmasters and postmasters’ organizations—(A) by substituting “postmasters’ organization” for “supervisors’ organization” each place it appears; and(B) if 2 or more postmasters’ organizations exist, by treating such organizations as if they constituted a single organization, in accordance with such arrangements as such organizations shall mutually agree to.(2) If 2 or more postmasters’ organizations exist, such organizations shall, in the case of any factfinding panel convened at the request of such organizations (in accordance with paragraph (1)(B)), be jointly and severally liable for the cost of such panel, apart from the portion to be borne by the Postal Service (as determined under subsection (f)(4)).(i) For purposes of this section—(1) “supervisors’ organization” means the organization recognized by the Postal Service under subsection (b) of this section as representing a majority of supervisors;(2) “members of the supervisors’ organization” means employees of the Postal Service who are recognized under an agreement between the Postal Service and the supervisors’ organization as represented by such organization;(3) “postmaster” means an individual who is the manager in charge of the operations of a post office, with or without the assistance of subordinate managers or supervisors;(4) “postmasters’ organization” means an organization recognized by the Postal Service under subsection (b) as representing at least 20 percent of postmasters; and(5) “members of the postmasters’ organization” shall be considered to mean employees of the Postal Service who are recognized under an agreement—(A) between the Postal Service and the postmasters’ organization as represented by the organization; or(B) in the circumstance described in subsection (h)(1)(B), between the Postal Service and the postmasters’ organizations (acting in concert) as represented by either or any of the postmasters’ organizations involved.(Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 731; Pub. L. 96–326, Aug. 8, 1980, 94 Stat. 1023; Pub. L. 108–86, § 2(a)–(c), Sept. 30, 2003, 117 Stat. 1052.)Editorial NotesReferences in Text

The date of the enactment of this subsection, referred to in subsec. (g), is the date of enactment of Pub. L. 96–326, which was approved Aug. 8, 1980.

Amendments

2003—Subsec. (b). Pub. L. 108–86, § 2(a)(2), which directed substitution of “supervisors or postmasters)” for “supervisors)” in second sentence, was executed by making the substitution the second time “supervisors)” appears in the sentence to reflect the probable intent of Congress.

Pub. L. 108–86, § 2(a)(1), inserted “that an organization (other than an organization representing supervisors) represents at least 20 percent of postmasters,” after “majority of supervisors,”.

Subsec. (h). Pub. L. 108–86, § 2(b)(2), added subsec. (h). Former subsec. (h) redesignated (i).

Subsec. (i). Pub. L. 108–86, § 2(b)(1), (c), redesignated subsec. (h) as (i) and added pars. (3) to (5).

1980—Subsecs. (c) to (h). Pub. L. 96–326 added subsecs. (c) to (h).

Statutory Notes and Related SubsidiariesEffective Date of 2003 Amendment

Pub. L. 108–86, § 3, Sept. 30, 2003, 117 Stat. 1053, provided that: “The amendments made by this section [probably should be “this Act”, amending this section and enacting provisions set out as notes under this section and section 101 of this title] shall take effect 60 days after the date of the enactment of this Act [Sept. 30, 2003].”

Effective Date

Section effective July 1, 1971, pursuant to Resolution No. 71–9 of the Board of Governors. See section 15(a) of Pub. L. 91–375, set out as a note preceding section 101 of this title.

Thrift Advisory Council Not To Be Affected

Pub. L. 108–86, § 2(d), Sept. 30, 2003, 117 Stat. 1053, provided that: “For purposes of section 8473(b)(4) of title 5, United States Code—“(1) each of the 2 or more organizations referred to in section 1004(h)(1)(B) of title 39, United States Code (as amended by subsection (b)) shall be treated as a separate organization; and“(2) any determination of the number of individuals represented by each of those respective organizations shall be made in a manner consistent with the purposes of this subsection.”

Notes of Decisions
Cited in 12 cases (2 in the last 5 years), 1974–2023 · leading case: Nat'l Ass'n of Postal Supervisors v. USPS, 26 F.4th 960 (D.C. Cir. 2022).
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Nat'l Ass'n of Postal Supervisors v. USPS, 26 F.4th 960 (D.C. Cir. 2022). · cites it 18× “See 39 U.S.C. § 1004 (b); National Association, 602 F.”
Morrison-Knudsen Constr. Co. v. Dir., Off. of Workers' Comp. Programs, 461 U.S. 624 (1983). · cites it 2× “V); 39 U. S. C. § 1004 (1976 ed. and Supp. V); 38 U.”
Bohdan Maksymchuk v. Anthony M. Frank, 987 F.2d 1072 (4th Cir. 1993). “The USPS is granted broad authority to manage its operations, including the power to fix wages and other terms of employment.”
Harper v. Frank, 985 F.2d 285 (6th Cir. 1993). “Although postal employees who belong to a union have an avenue for grievances that nonmembers lack, all postal employees enjoy the benefit of comprehensive procedures, including consultation rights and referral to the Federal Mediation and Conciliation Service.”
Lutz v. United States Postal Serv., 538 F. Supp. 1129 (E.D.N.Y. 1982). “In the district court the supervisors had successfully argued that the amount they received violated the Postal Service’s obligation under 39 U.S.C. § 1004 (a) to maintain “adequate and reasonable differentials” in rates of pay between the two general classes of employees.”
Davis v. United States Postal Serv., 675 F. Supp. 225 (M.D. Pa. 1987). “39 U.S.C. § 1004 (a). It is undisputed in this case that the non-entry level positions would be available to plaintiff as well as any other outside applicant once the Postal Service has met its obligations under the PRA and collective bargaining agreement.”
Burns v. United States Postal Serv., 380 F. Supp. 623 (S.D.N.Y. 1974). “These increases were mandated by 39 U.S.C. § 1004 (a). When this Order was issued, the nation was in the midst of Phase Two.”
Peoples Gas, Light & Coke Co. v. United States Postal Serv., 658 F.2d 1182 (7th Cir. 1981). “In that case three associations of postal service supervisory personnel filed an action against the Postal Service, alleging that its denial of future cost of living raises and reduction of salary differentials violated section 1004(a, b) of the Postal Reorganization Act, 39…”
Nat'l Ass'n of Postal Supervisors v. United States Postal Serv., No. 2019-2236 (D.D.C. Aug. 15, 2023). · cites it 13× “at ¶¶ 80–87) (“Count I”); (2) 39 U.S.C. § 1004 (a) by failing to provide for an adequate supervisory differential adjustment (id.”
Nat'l Ass'n of Postal Supervisors v. United States Postal Serv., No. 2019-2236, 2020 WL 4039177 (D.D.C. July 17, 2020). · cites it 8× “Dissatisfied with USPS' s decision, the Association requested a factfinding panel to review USPS' s proposal in accordance with the dispute resolution mechanism provided by 39 U.S.C. § 1004 (t). Id. at 120 . Both USPS and the Association presented exhibits and witnesses to the…”
Nat'l Ass'n of Postmasters v. Runyon, 821 F. Supp. 775 (D.D.C. 1993). “The Court, after careful consideration of the submissions of the parties, the exhibits, the arguments of counsel, the applicable law, and the entire record herein, concludes that the Defendants fully complied with their obligations under the Postal Reorganization Act, 39 U.S.C.…”
Nat'l Labor Relations Bd. v. U.S. Postal Serv., 827 F.2d 548 (9th Cir. 1987). “The Postal Service points out, however, that section 1205(a) also authorizes the deduction of dues for management organizations that have “consultation rights” under 39 U.S.C. § 1004 (a). These management organizations, unlike labor unions, are not governed by the NLRA and are…”
39 U.S.C. § 1004(b): 2 cases
Nat'l Ass'n of Postal Supervisors v. United States Postal Serv., No. 2019-2236 (D.D.C. Aug. 15, 2023). “at ¶¶ 80–87) (“Count I”); (2) 39 U.S.C. § 1004 (a) by failing to provide for an adequate supervisory differential adjustment (id.”
Nat'l Ass'n of Postal Supervisors v. United States Postal Serv., No. 2019-2236, 2020 WL 4039177 (D.D.C. July 17, 2020). “Dissatisfied with USPS' s decision, the Association requested a factfinding panel to review USPS' s proposal in accordance with the dispute resolution mechanism provided by 39 U.S.C. § 1004 (t). Id. at 120 . Both USPS and the Association presented exhibits and witnesses to the…”
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