Senator Urges Postmaster General to Honor Senate Bill’s Provision Hold off on Montana Shutdowns

(Washington, D.C.) – Montana’s senior U.S. Senator Max Baucus blasts the Postmaster General today for plans to shut down the Kalispell area mail processing facility. Baucus is specifically calling out the United States Postal Service for ignoring his provisions in Postal Reform legislation that cleared the Senate and is now awaiting action in the House. The U.S. Postal Service just its newest plan for consolidating mail processing facilities across the nation. Kalispell is on the chopping block for shutdown this summer. Prior to today’s information released to Baucus’ office, the Kalispell facility was under study for potential closure, but the decision was not final.

Baucus successfully pressed the Postal Service to back away from plans to consolidate or shut down area mail processing facilities in Missoula, Butte, Helena and Wolf Point and is vowing to continue pressure on the Postmaster General to back away from plans to shut down Kalispell’s facility.

“We stopped them from shutting down Missoula, Butte, Helena and Wolf Point mail processing facilities – and I’ll fight tooth and nail to protect Kalispell and the 20 jobs that are on the line. I brought the Postmaster General to Montana and showed him firsthand that shutting down Montana facilities is a small-minded way to address a large scale problem. I’m fighting the Postmaster’s plan to close Kalispell’s processing facility and urge the House to pass our Senate postal reform bill, because it would solve the Postal Service’s problems without unfairly targeting rural Montana,” said Baucus.

Baucus included a provision in the Senate’s Postal Reform Bill that would ensure that no postal facility could be closed prior to November 13th in a state that conducts all elections by mail or permits no-excuse absentee voting (Montana qualifies). If the House passes the Senate bill, the Postal Service couldn’t even consider closing the Kalispell facility until after November 13th. Additionally, if the House fails to pass the Senate’s Postal Reform Bill, mail processing facilities in Butte, Helena and Wolf Point are all likely to be right back on the chopping block as early as next year

The plans released to Baucus’ office include 48 consolidations this summer and an additional 140 closings between December 2012 to February 2013. Unless circumstances change for USPS in the interim, they would then enter a second and final round of closings that would encompass the remaining group of 89 centers which they wanted to originally close, beginning February 2014.

from NAPS
May 21, 2012

The Postal Service’s announcement last Thursday regarding its modified, two-phase plan to consolidate its mail processing network, coupled with its May 9 POStPlan to keep rural post offices open (but with limited operating hours), is likely to move the House of Representatives closer to bringing postal legislation to the floor some time in June. Until now, House Republican leaders have been unable to find enough votes within their own party to assure passage of the controversial Issa-Ross postal legislation, H.R. 2309.

Closures of post offices and mail processing plants are radioactive issues for Washington lawmakers in an election year, with thousands of jobs and significant local interests in jeopardy. But the Postal Service’s recent announcements, significantly downsizing its original plans, have softened the breadth and negative political impact of closures. Far less facilities will be immediately closed than the Postal Service originally announced. Many lawmakers, particularly Republicans with rural districts, are breathing a sigh of relief that their post offices will remain open, albeit with reduced operating hours. Significant numbers of House Members and Senators are similarly relieved that mail processing plants in their districts and states are not among the 40 mail processing plants that will be closed between now and early next year, or the additional 89 to come next year, after the November election.

These events are likely to give Republican House leaders enough confidence to bring a modified version of the Issa-Ross postal legislation, H.R. 2309, to the floor next month. How much the Issa-Ross measure will be modified still remains uncertain. If the House acts and approves a postal measure next month, House and Senate negotiators potentially could iron out the differences between their bills over the summer, opening the way for Congressional approval of a final postal reform measure by early October, before the start of the election recess. A lot of very troubling questions yet remain, however.

The Issa-Ross bill and the Senate-approved measure are dramatically different in their fundamental views of the Postal Service itself and what is necessary to put the troubled enterprise back on its feet. Finding compromise could be especially difficult for House and Senate conferees, especially in the ramp-up to the November elections, when a failing government institution like the Postal Service could become a popular target for many Republicans.

In the meantime, the clock toward financial armageddon for the Postal Service continues to tick. Without Congressional intervention, the Postal Service will be unable to make the twin $5.5 billion retiree health prefunding payments for 2011 and 2012 that are due in early August and late September. Even worse, the Postal Service may run out of cash and find itself unable to meet its payroll by later this fall.

It is critical that the House of Representatives act immediately and pass sensible postal reform legislation. NAPS supports the Senate-approved bill and is urging its members to contact their House lawmakers to ask them to support the Senate bill. SEND THAT MESSAGE TO YOUR HOUSE LAWMAKER TODAY BY CLICKING HERE.

The postmaster general announced on Thursday, May 17, that he would move forward with the closing of hundreds of mail-processing plants. That followed his announcement on Wednesday, May 9, that rather than proceed with post office closings he would sharply reduce hours in thousands of rural post offices.

In response to the latest announcement, NALC President Fredric Rolando said: “Since $3.1 billion of the reported $3.2 billion loss in the most recent fiscal quarter stems from pre-funding future retiree health benefits—which no other entity in America is compelled to do—the USPS and congressional response ought to address the actual problem. Moreover, what’s lacking is a business plan for the future that takes advantage of opportunities to meet the needs of an evolving society. Dismantling the network and reducing services to Americans and their businesses is not a business plan.”

APWU Web News Article 61-2012, May 21, 2012

The APWU and the National Postal Mail Handlers Union (NPMHU) are asking their locals and state organizations to meet with their U.S. representatives at their district offices during the Memorial Day congressional recess, May 21 to May 29, to urge them to act now to save the Postal Service from financial collapse.

“APWU members should urge House members to act on postal reform as soon as they return, and use the Senate bill as a starting point for discussion,” said APWU President Cliff Guffey. The Senate passed S. 1789, the 21st Century Postal Reform Act of 2012, on April 25, by a vote of 62-37.

Although the bi-partisan bill is not perfect, it is far better than H.R. 2309, which was approved last year by the Republican-controlled House Oversight and Government Reform Committee, Guffey said. H.R. 2309 would destroy the Postal Service as we know it by forcing extreme service cuts and by creating a “solvency authority” that could void our contract and order massive layoffs.

Although the Senate adopted S. 1789, the legislation is not final. The House of Representatives also must approve a bill; a conference committee must resolve differences between the House and Senate versions; both chambers must pass the conference version, and the president must sign it.

“Meeting with House members gives us an opportunity to seek improvements to the Senate bill and to stress the urgency of enacting postal reform,” said APWU Executive Vice President Greg Bell.

The APWU is asking the House to make several improvements to the Senate bill, including:

• Provide greater relief from unnecessary and excessive pre-funding requirements;
• Improve protection of service standards, which are essential to preserving the Postal Service and postal jobs, and
• Eliminate provisions, not relevant to postal reform, which would have devastating consequences for the thousands of postal and federal employees who were injured on the job and who receive compensation from the Office of Workers Compensation Program (OWCP).

Meet at Your Congressperson’s Offices

As a result of the efforts of APWU members and officers, as well as other postal unions and supporters, several important amendments to S. 1789 were adopted, including provisions to offer some protection for service standards, allow greater public input before a post office or mail processing facility can be closed, and grant authority to the Postal Regulatory Commission to overturn improper USPS decisions to close offices. In addition, S. 1789 would return $11 billion to the USPS for overpayments to the U.S. Treasury for FERS pension benefits. It would also re-amortize the pre-funding of retiree health benefits, easing the burden that pre-funding has placed on the Postal Service’s finances.

“Local leaders should contact their representative’s district office to schedule an appointment as soon as possible,” Bell said.

“During your visit, explain the urgency of enacting postal reform before the Postal Service begins to dismantle its critical infrastructure of plants and post offices. It is urgent that the House take immediate action to protect existing service standards. The Postal Service cannot eliminate hundreds of mail processing facilities and still meet its current service commitments,” said Reid.

The APWU has provided talking points [PDF] for locals to use when meeting with their congressperson.

Whether or not your plant or post office is targeted for closure or consolidation this summer, the Postal Service’s plans threaten the jobs of every postal worker. Forty-eight plants are scheduled for consolidation before the end of August, with an additional 92 slated for consolidation beginning in January 2013 as part of Phase 1 of the Postal Service’s latest consolidation plan. The USPS intends to close an additional 89 plants during Phase 2.

“The Postal Service’s strategy remains the same,” Bell said. “Management still plans to eliminate half of all mail processing facilities.”

Furthermore, the USPS strategy of dismantling the network and slashing service will not fix the USPS’s finances. It will lead to the demise of the Postal Service by making its services less timely and less valuable.

“Locals are doing a fantastic job getting our message out at rallies, public input meetings, and in the media. We need to keep up the pressure on Congress to act now, before management does irreparable harm to the postal network and our jobs,” Guffey said.

Please join us in contacting Congress over the Memorial Day recess. If you require any assistance, contact the APWU Vice President’s office at 202-842-4250 or the Legislative Department at 202-842-4211.

The possibility that the House of Representatives could consider H.R. 2309 towards the end of June or beginning of July has generated renewed interest in the bill, and, how the House Leadership will deal with the controversy relating to a number of its provisions. The week’s eNAPUS Legislative and Political Bulletin seeks to put into context the process and calculations that will be made in scheduling the bill for possible floor votes. In addition, this Bulletin will review the past week’s Senate budget discussions, in light of last week’s House passage of a Budget Reconciliation bill. Finally, the Bulletin takes a quick look at Senate electoral politics.

Click on May 18 edition of eNAPUS Legislative and Political Bulletin (PDF)

May 18, 2012

This morning, Postal Service headquarters released a list of Post Offices that will be upgraded under the new Post Office Structure Plan (POStPlan.) More than 4,600 lower level offices will be upgraded to EAS 18 offices. The list also includes Level 51 -53 offices that will be upgraded to career 6 hour offices. Incumbent Postmasters in the upgraded offices will receive a letter notifying them of their upgraded status. These Postmasters will receive a 2% salary increase or slotted into the minimum salary range of the new level, as a result of the upgrade

Click here for a list of upgraded offices Post Office Upgrades

Charlie Moser
May 18, 2012

May 17 2012

WASHINGTON – Today, Sen. Tom Carper (D-Del.), chairman of the subcommittee that oversees the U.S. Postal Service and co-author of the 21st Century Postal Service Act, released the following statement reacting to the Postmaster General’s announcement that the Postal Service would begin closing select mail processing centers in an effort to save approximately $1.2 billion annually:

“Today’s announcement comes a week after the Postal Service announced that it lost a staggering $3.2 billion in the second quarter of Fiscal Year 2012. In fact, the Postal Service is hemorrhaging money at a rate of at least $25 million a day and is on track to lose far more over the course of this fiscal year. Given these dire circumstances it shouldn’t come as a surprise that the Postmaster General is moving forward to reduce costs with the limited tools at his disposal, but the reality is that efforts of this scale are not enough to fundamentally fix the Postal Service’s financial problems.

“For example, today’s proposal does not address the Postal Service’s two upcoming payments of $5.5 billion for its future retiree healthcare fund, its past overpayments of $11 billion into the Federal Employee Retirement System, or the need to significantly downsize the postal workforce. Only comprehensive, long-term reform of the Postal Service can address these and other serious issues facing this American institution, and that reform can only come from Congress. The Senate has recognized that need and last month passed a comprehensive, bipartisan bill that would modernize the Postal Service, allowing it to right-size and become competitive in the 21st Century. Now it’s up to the House to pass a bill. In the three weeks since the Senate acted, the Postal Service has lost over $500,000,000 – already wiping out nearly half of the savings today’s plan would achieve annually. Clearly, the Postal Service can’t afford to wait any longer for Congress to pass a comprehensive plan. I hope that my colleagues in the House will recognize the urgency of this situation and announce when they intend to act to save the Postal Service.”

Postal Service Moves Ahead with Modified Network Consolidation Plan
9-Month Implementation; $1.2 Billion in Cost Reductions

May 17, 2012

WASHINGTON — The U.S. Postal Service today announced plans to move ahead with a modified plan to consolidate its network of 461 mail processing locations in phases. The first phase of activities will result in up to 140 consolidations through February of 2013. Unless the circumstances of the Postal Service change in the interim, a second and final phase of 89 consolidations is currently scheduled to begin in February of 2014.

“We revised our network consolidation timeline to provide a longer planning schedule for our customers, employees and other stakeholders, and to enable a more methodical and measured implementation,” said Patrick R. Donahoe, Postmaster General and Chief Executive Officer of the Postal Service.

“We simply do not have the mail volumes to justify the size and capacity of our current mail processing network. To return to long-term profitability and financial stability while keeping mail affordable, we must match our network to the anticipated workload,” said Donahoe. “Our current plan meets our cost reduction goals, ensures seamless and excellent service performance throughout the implementation period, and provides adequate time for our customers to adapt to our network changes.”

The Postal Service will begin consolidating operations this summer – which mostly involve transferring mail-processing operations from smaller to larger facilities. Due to the volume of high-priority mail predicted for the election and holiday mailing seasons, no consolidating activities will be conducted from September through December of 2012. Approximately 5,000 employees will begin receiving notifications next week related to consolidating and other efficiency-enhancing activities to be conducted this summer.

“We will be conducting consolidation activities this summer at only 48 locations,” said Megan Brennan, chief operating officer of the Postal Service. “As a result, nearly all consolidating activities in 2012 will occur in August and then will resume again the early part of next year.”

These consolidating activities will reduce the size of the Postal Service workforce by approximately 13,000 employees and, when fully implemented, will generate cost reductions of approximately $1.2 billion annually.

“The Postal Service will be communicating with our customers and employees about these changes in great detail,” said Megan Brennan. “We will work closely with our customers to ensure there are no surprises as we move forward.”

The Postal Service also announced it is working with its unions for an employee retirement incentive, although no final decision has been made. “The Postal Service has reduced the size of its workforce by 244,000 career employees since 2000 without resorting to layoffs,” said Brennan. “We are a responsible employer and we will work with our employees to ensure a smooth transition to a much leaner organization.”

The Postal Service also announced that it would soon issue a new regulation to modify its existing Service Standard for overnight delivery. The Postal Service said a Final Rule would soon be published in the Federal Register that would initially shrink the geographic reach of overnight service to local areas and enable consolidation activity in 2013. The new rule would further tighten the overnight delivery standard in 2014 and enable further consolidation of the Postal Service mail processing network absent any change to the circumstances of the Postal Service.

“We are essentially preserving overnight delivery for First-Class Mail through the end of 2013, although we are collapsing the distance that we can provide overnight service to the distribution area served by a particular mail processing facility,” said Megan Brennan. Approximately 80 percent of First-Class Mail will still be delivered overnight.

The Postal Service stated its expectation to pursue additional consolidation activities for an additional 89 mail processing locations beginning in 2014 unless its circumstances change. These consolidations would be based on long-term service standards that would significantly revise mail-entry times for customers seeking overnight delivery.

“Given that the Postal Service is currently projecting a $14 billion net loss in FY2012, and continuing annual losses of this magnitude, we simply cannot justify maintaining our current mail processing footprint,” said Donahoe.

When fully implemented in late 2014, the Postal Service expects its network consolidations to generate approximately $2.1 billion in annual cost reductions, and lead to total workforce reduction up to 28,000 employees.

The list of 140 mail processing locations to be consolidated by February of 2013 is available after 3 p.m. ET today at http://about.usps.com/news/electronic-press-kits/our-future-network/welcome.htm.

The Postal Service’s announcement that there are no immediate plans to offer incentives or VERA to EAS employees will be received by some as a mixed message. We are aware that some EAS employees have been waiting for some time to take advantage of an incentive. On the other hand, there are other EAS employees who need to have a job, a job where they now work, close to their homes and families.

NAPS has been a leader the in the fight to keep processing facilities and post offices open to serve the American public. In this fight, we have been successful. As a result there will not be massive job losses in our ranks. NAPS believes that what we have accomplished is good for our members and good for our country.

Now that the Postal Service has determined there is no need to keep “landing spots” for impacted EAS employees, NAPS will emphasize the immediate need to fill vacant positions that exist throughout the country. We can no longer function with the number of vacancies we have in operations and these positions need to be filled now.

While we will be working to get vacant positions filled, and our members point to the postmasters who can take advantage of incentives and VERA’s, all must be mindful that there are large numbers of postmasters that may not be able to take advantage of the incentives and will have to make the hard decisions on where they will be able to work after their restructuring.

Had the Postal Service implemented their plans to close half of the processing facilities in the country, there would have been hundreds if not thousands of EAS employees faced with the decision of moving great distances to keep a job. If the Postal Service’s plans were initiated, our veterans would have been RIF’d because of the current rules on closure of competitive areas.

NAPS will continue our efforts to minimize the impact of the Postal Service’s consolidation plans on our members now and in the future. We will continue to do everything in our power to protect the interests of our members.

May 17, 2012

Contact: James F. Killackey, III
naps.jk@naps.org
1727 King St, Suite 400
Alexandria, VA 22314

APWU News Bulletin 14-2012
May 17, 2012

The House of Representatives voted for a 5 percent cut in postal and federal workers’ pay on May 10 by approving an increase in employees’ pension contributions. Republican members of the House provided all 218 votes in favor of the measure, while 183 Democrats and 16 Republicans opposed it.

The 2012 Sequester Replacement Reconciliation Act, (H.R. 5652) introduced by Budget Chairman Paul Ryan (R-WI), would phase-in the five percent employee contribution increases for both the Federal Employees Retirement System (FERS) and the Civil Service Retirement System (CSRS) over five years.

The bill requires FERS employees to contribute 5.8 percent of each paycheck toward the FERS basic annuity portion of their pensions and requires CSRS employees to contribute 12 percent, yet it does not increase employees’ annuities or improve benefits upon retirement.

The bill would also require new federal employees who are hired after 2012 with fewer than five years of previous federal service to immediately pay 5.8 percent to the FERS plan, with no phase-in. In addition, the bill would eliminate the FERS Social Security supplement for new employees hired beginning in 2013, which is now paid to FERS employees who voluntarily retire before reaching age 62.

“This should serve as a reminder to APWU members when voting in the November elections. Vote for candidates who support postal workers and working families,” said APWU President Cliff Guffey.