Postage stamps rise to 45 cents

First-class stamps now cost 45 cents each, an increase that officials estimate will generate an additional $888 million in annual revenue. "Forever" stamps, as the name indicates, remain valid as prices increase.

The price hike came as negotiations between the Postal Service and two of its labor unions reached an impasse that may require a ruling by an arbitrator.

Postal and union officials announced late Friday that separate talks had collapsed between the USPS and the National Association of Letter Carriers and the National Postal Mail Handlers Union. Contracts with both unions, which represent a combined 242,000 postal workers, expired in late November. Negotiations were extended twice before failing Friday.

Under the rules of postal labor negotiations, the parties may next engage in talks with a mediator if both sides agree. The mediation process generally lasts about two months, the USPS said. If those talks fail, both sides would probably turn to a third-party mediator, who would determine the final details of a new labor agreement. By law, arbitrators are not required to consider the Postal Service's financial condition when making a ruling.Federal law prohibits postal workers from striking during a labor impasse.

The NPMHU, which represents mostly backroom mail handlers, thanked its members Friday for their continued patience.

NALC President Fredric Rolando said Friday that his union's negotiations had been "innovative, professional and productive," adding that "a negotiated agreement is in the best interests of the parties, the businesses that rely on us and the nation we serve."

AP-WS-AP-WF-01-23-12 0117GMT