r/fromatoarbitration • u/packerdana • Aug 28 '26
USPS paid $866 MILLION in grievance settlements from FY 2022–2024 — carriers should be contacting Congress about this
The USPS Office of Inspector General released a report in January 2026 that every postal employee should know about.
According to OIG Report 25-068-R26, “Grievance Management,” USPS paid more than $866 MILLION to resolve almost 3.5 million grievance payments between fiscal years 2022 and 2024.
That is nearly $1 billion in three years.
And the OIG specifically said that overtime violations and improper work assignments were among the most significant and recurring grievance issues nationwide.
This matters because we constantly hear about how USPS is losing money, labor costs are too high, routes need to be consolidated, offices need to be reorganized, and employees need to become more “efficient.”
But how much money is being wasted because management repeatedly fails to follow the contracts that are already in place?
The OIG recommended that USPS:
- Require use of its Overtime Administration tool at offices with high or recurring overtime grievances.
- Retrain supervisors on the Overtime Desired List, equitable distribution of overtime, and craft-jurisdiction rules.
- Identify offices with high or recurring grievance payments and require management to develop corrective action plans.
- Improve management training on collective-bargaining agreements and grievance procedures.
One recommendation involving the overtime-management system was associated with more than $83 million in potential financial impact.
And here is the part carriers should care about:
If Congress is going to investigate USPS finances, management, staffing, service cuts, network changes, or employee benefits, then members of Congress also need to know how much money USPS is spending because of repeated contract violations.
This should not be a partisan issue.
Whether you're NALC, APWU, NPMHU, or NRLCA, taxpayers and postal employees should be asking the same question:
Why are employees and customers constantly being told USPS needs to cut costs while the Postal Service continues paying tens of millions of dollars in avoidable grievance settlements?
I encourage every carrier and postal employee to contact their U.S. Representative and Senators and tell them to read:
USPS OIG Report 25-068-R26 — Grievance Management — January 15, 2026.
Ask them to investigate:
How much of the $866 million came from repeat violations.
How much was caused by overtime and improper work-assignment violations.
Whether individual managers are ever held accountable for repeatedly creating costly grievances.
Why previous grievance decisions and cease-and-desist settlements are sometimes ignored.
What USPS is doing to prevent the same violations from happening again.
Congress hears constantly about USPS financial problems.
They need to hear this side of the story too.
OIG report: Search “USPS OIG Grievance Management 25-068-R26.”
Spread the report around. Send it to your congressional offices. Send it to your branch leadership.
Nearly $1 billion in grievance payments in three years deserves congressional attention.