Govexec.com is reporting that employees of the U.S. Postal Service will get a raise when they get paid on Dec. 11.

According to the article, the raise in part of a 2006 agreement with unions. The raise took into account cost of living adjustments and the economic conditions.

“Employees represented by the American Postal Workers and National Postal Mail Handlers unions will receive a 1.2 percent pay raise. Members of the National Rural Letter Carriers’ Association and the National Association of Letter Carriers will see 1.5 percent and 1.9 percent raises, respectively.”

A $3.8 billion loss was reported by the Postal Service last week. To curb that, the Postal Service has reduced work hours by 115 million and cut $4 billion in retiree health benefits.

It’s expected that in 2010 there will be a net loss of $7.8 billion. Officials said they plan to cut another 53,000 full-time employees. It’s also seriously considering reducing work days and employee health benefits.

“At a time when the Postal Service is experiencing severe financial difficulties, the contractual commitment must be honored, and the required 1.2 percent pay increase must be paid,” said APWU President William Burrus in a statement.

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