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Grievance Management

Audit Reports

  • Grievance Management - 25-068-R26.
Jan
15
2026
Report Number:
25-068-R26
Report Type:
Audit Reports
Category: Contracting, Internal Services

Grievance Management

Background

The U.S. Postal Service paid out more than $866 million in resolution of almost 3.5 million grievance payments from fiscal years (FY) 2022-2024. Grievances are typically complaints lodged by individual employees or unions about the implementation or interpretation of collective bargaining and local agreements concerning wages, hours, and conditions of employment.

What We Did 

Our objective was to evaluate the Postal Service’s management of grievances. We analyzed data from various Postal Service systems to identify trends, risk areas, and anomalies. We reviewed 25 facilities and labor relations offices in eight districts and conducted interviews with management and employees at those locations to gain an understanding of their grievance payments.

What We Found

Although total grievance payments nationwide trended slightly downward from FYs 2022-2024, some districts and facilities incurred high payment amounts or experienced significant increases in payments. Grievance issues related to overtime and improper work assignments accounted for some of the most significant and recurring grievance payments nationwide. In addition, field management entered into binding local agreements with unions that contained escalating remedies, did not always align with current operational needs, and did not have defined end or revision dates. Lastly, management did not always maintain a standardized, centralized repository that contained local agreements and did not consistently complete all required elements of decision letters in the Grievance and Arbitration Tracking System for payments.

Recommendations and Management’s Comments 

We made eight recommendations for the Postal Service to improve its management of grievances, reduce recurring grievances, clarify policy, and improve tracking. Postal Service management agreed with seven and disagreed with one. We consider management’s comments responsive to recommendations 1, 2, 3, 4, 5, 7, and 8, and will pursue recommendation 6 through the audit resolution process. Management’s comments and our evaluation are at the end of each finding and recommendation.

Report Recommendations

# Recommendation Status Value Initial Management Response USPS Proposed Resolution OIG Response Final Resolution
1

Provide remedial or refresher training to management handling grievances in areas of concern to include topics such as, but not limited to, knowledge of national bargaining and local agreements, grievance arbitration procedures, responding to union requests for information, and contending with challenges from union representatives.

 Open $0 Agree
2

Develop a platform to share best practices identified by individual districts on grievance management and require each district to provide a plan to implement applicable best practices.

 Open $0 Agree
3

Require the use of the Overtime Administration tool at facilities with high or recurring overtime grievances, unless restricted by local agreements.

 Open $83,165,820 Agree
4

Require and reiterate training for supervisors on proper administration of overtime, including, but not limited to, overtime desired lists, equitable distribution of overtime, and craft jurisdiction rules.

 Open $0 Agree
5

1) identify high or recurring grievance payment locations, 2) require applicable local management in those locations to develop and implement an improvement action plan to reduce grievances, and 3) monitor grievance progress in those locations.

 Open $0 Agree
6

Develop guidance to 1) identify which management positions have the authority to enter into local agreements, 2) include risk management practices such as expiration dates, legal review, or mandatory periodic review clauses, for management responsible for negotiating future local agreements, and 3) create a digital repository for local agreements.

 Open $0 Disagree
7

Develop and maintain a national repository for local memorandums of understanding for standardized ease of access by and for all levels of local management.

 Open $0 Agree
8

1) Develop automated controls in the Grievance and Arbitration Tracking System to add system-required fields for justification statements on decision letters, and 2) provide refresher training for supervisors on requirements for proper completion of decision letters.

 Open $201,099,806 Agree