PMG UPDATE – March 06, 2014

PMG Pat Donahoe says there’s a lot to like in legislation designed to help USPS restore financial stability and make basic improvements in its business model.

In his latest state of the business video, the PMG reports the proposal, S.1486, is “a good bill for the Postal Service and the postal industry.” Donahoe believes the bill sets a course for a positive future, with provisions that include:

• The ability for USPS to get back on solid financial footing.
• A roadmap to pay off its debt.
• A strategy for investing in new postal vehicles and processing equipment.

Donahoe also discusses how the Senate proposal will improve health care for its employees and retirees. He says the bill converts retirees’ primary coverage to Medicare and uses Federal Employees Health Benefits plans as a backup — “Pretty much the same way all of America does things today.”

If adopted, Donahoe reports S. 1486 also will change the pre-funding requirement USPS currently faces by reducing the current $50 billion requirement to approximately $3 billion to be paid over a 40-year period. “It’s a win-win for all of us,” he says.

The Senate bill imposes a 2-year freeze on plant consolidation. It also delays conversion from 6-to-five-day mail delivery until volume reaches a level of 140 billion mailpieces per year — now expected to occur in 2018. The PMG says he’s satisfied with both provisions, adding it will give USPS and employees time to plan for the day when these reductions take place.

In his video, the PMG also reviews with employees some of the comments the Postal Service’s Customer Care Centers are receiving. And he concludes by informing employees that 70,000 new scanners soon will soon be available, increasing the ability of carriers to report package pickups and deliveries on a more timely basis.

“Your work on scanning has been tremendous,” he says, adding the new scanners will help improve service and reliability.

Finally, Donahoe urges career employees to “reach out” to the thousands of new employees now entering the Postal Service. He asks them to remember the early days of their careers and to use that experience to welcome their new co-workers into “a great organization.”