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.

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.

‘Modified’ Consolidation Plan Is More of the Same
USPS Union Members Must Fight Back, House Must Act Now

APWU News Bulletin 15-2012, May 17, 2012

USPS management announced [PDF] on May 17 that it would begin implementing a “modified” consolidation plan immediately, but the “new” plan [PDF] employs the same essential strategy as the old plan: Impose drastic cuts to service and the mail processing network, and eliminate tens of thousands of jobs. The only difference is that the “new” plan will take a little longer to complete.

“The Postal Service’s announcement provides new evidence that union members must contact their U.S. representatives and urge them to address postal reform immediately, using the recently-approved Senate bill as a starting point for discussion,” said APWU President Cliff Guffey. “Slashing the postal network will destroy service, drive away customers, and weaken the USPS,” he said.

“The situation is urgent. We are asking local union leaders to arrange meetings with their U.S. representatives during the Memorial Day recess, which begins May 21,” Guffey said. “We are urging rank-and-file union members to attend as well. It is imperative that as many union members as possible are involved.”

The USPS intends to consolidate 48 plants [PDF] between now and Aug. 31, take a break for the fall mailing season, and consolidate another 92 plants [PDF] beginning in January 2013. During Phase 2, which management expects to complete by the end of 2014, the USPS intends to consolidate an additional 89 plants. The “new” plan would eliminate 229 plants. In February, the Postal Service announced it had approved 223 plants for consolidation, with decisions still pending on six.

“This is essentially the same plan management proposed last fall,” Guffey said. “It will reduce the mail processing network by half.”

The plan is expected to eliminate 28,000 jobs.

The Postal Service also intends to proceed with plans to degrade service standards, with an interim change effective this summer and more drastic reductions in service in 2013.

“Postal officials seem to be ignoring the wishes of numerous members of Congress who asked the USPS to postpone consolidations until after postal reform legislation is enacted,” the union president said. “And they are proceeding without the benefit of an advisory opinion from the Postal Regulatory Commission, which is required by law.

“Postal managers are also disregarding evidence that was revealed during commission hearings: Reducing service standards will drive away customers.” During the proceedings, the Postal Service admitted that a secret study indicated that revenue losses could virtually wipe out projected savings from consolidations if service standards were reduced.

“We will not stand by while postal managers destroy the USPS,” Guffey said. “We will join with the American people and elected officials to stop them.”

USPS Frequently Asked Questions about Network Consolidation [PDF]

USPS Human Resources Frequently Asked Questions [PDF]

USPS Announces ‘Modified Consolidation Plan’
Implementation to Begin This Summer, No Specifics Provided

APWU Web News Article 59-2012, May 16, 2012

The USPS notified the APWU [PDF] today, May 16, that it has developed a modified network consolidation plan and, “Now that the moratorium has expired, consolidation activities will begin this summer.” However, postal managers did not provide the union with a list of which facilities would be affected and when. The information will be made available to the union on May 17, in advance of the public release, the letter says.

The USPS letter, which was faxed to the union at approximately 3 p.m., says that postal managers will begin giving “stand-up talks” to employees on Tour 3 on May 16. Copies of the service talks [PDF] were provided.

APWU President Cliff Guffey said, “The Postal Service’s actions are the best evidence there is that union members must contact their U.S. representatives and urge them to address postal reform immediately, using the recently-approved Senate bill as a starting point for discussion.”

Fall Break, Service Changes

There will be a break in consolidation activities from September through December for the election and holiday mailing seasons, the letter says. Following the break, the first phase of consolidations will resume in January 2013. Phase two will be completed by the end of 2014.

The letter says that a new, interim regulation to modify existing Service Standards for overnight delivery will be introduced that “will shrink the geographic reach of overnight service to local areas.

“This new interim Service Standard will enable consolidating activity in 2013, and will be replaced with a permanent Service Standard for overnight delivery in 2014.”

The stand-up talks say that “Actions taken will comply with collective bargaining agreements, Postal Service regulations and policies, and other applicable law.” It also says, “The Postal Service is working with its unions regarding an employee incentive offer and will announce details when final decisions are made,” but the USPS and APWU have not been negotiating about incentives, Guffey said.

The talk for employees who interact with customers says, “Some consolidation activities will begin this summer, but there will be no facilities closures this summer.” The other talks do not include this language, nor does the letter to the APWU. (In fact, the stand-up talks for other employees refer to “closing facility.”)

“The Postal Service’s plans seem to be in constant flux,” Guffey said. “I hope members of Congress are paying attention. They must act quickly to prevent a severe degradation of service and massive cutbacks in the mail processing network.”

The Republican-controlled House of Representatives, on a mostly party-line vote, approved a budget measure Thursday that would require federal employees in both the Civil Service Retirement System and the Federal Employees Retirement System to contribute 5 percent more of salary toward their pensions—in effect, a 5 percent cut in pay phased in for current workers over five years. Click here to read more.

More than 100 U.S. representatives have signed a letter to Postmaster General Patrick R. Donahoe [PDF], urging him to extend the moratorium on the closure of post offices and mail processing facilities, and asking him to refrain from cutting hours at rural offices.

“We write to urge you to extend the May 15 moratorium on post office and mail processing facility closures until the Congress has completed action on postal reform legislation, including any action that would result in cuts to rural postal services such as cutting back hours at rural facilities,” the May 9 letter said.

The passage of a postal reform bill in the Senate “is evidence that Congress is moving toward putting the United States Postal Service on a path to sustainability,” 107 House members said. “We understand that the USPS cannot sustain itself under its current system, and we agree it is up to Congress to act,” they wrote.

Recently the Postmaster General has said there won’t be a large number of closures as soon as the moratorium expires, but he has not agreed to extend the moratorium.

But postal workers, along with many lawmakers and postal customers, are unwilling to rely on his public reassurances that closures will be handled methodically and will not be disruptive.

“The Postmaster General’s positions and plans have changed many times in the last year, but his strategy has been consistent,” said APWU Executive Vice President Greg Bell. “His goal is to cut jobs, close post offices and mail processing facilities, and dismantle the postal network. We must do everything we can to stop him.

“The Postal Service should drop its plans to cut service, and develop a strategy to expand service and strengthen the USPS,” Bell added.

Forty-seven senators have also asked the Postmaster General to extend the moratorium. The four co-sponsors of a Senate bill asked Donahoe to extend the moratorium until after legislation is enacted. In a letter dated April 30, Sen. Joe Lieberman (I-CT), Sen. Susan Collins (R-ME), Sen. Tom Carper (D-DE) and Sen. Scott Brown (R-MA), wrote, “There is considerable concern in the Senate that this approach will unnecessarily degrade the infrastructure which is one of the Postal Service’s most important assets.

“We believe an attempt to proceed with the planned closures — to ‘get in under the wire’ while legislation to the contrary is being considered — would be counterproductive and would violate the clear intent of the Senate.”

On May 2, 43 senators, including 37 Democrats, five Republicans, and independent Sen. Bernie Sanders (VT) also asked Donahoe to extend the moratorium on the closing of post offices and mail processing facilities. They wrote [PDF], “We are deeply concerned that the closing of these postal facilities prior to postal reform legislation being enacted would be devastating to communities around the country.”

However, three Republicans — Sen. John McCain (AZ), Sen. Tom Coburn (OK), and Sen. Bob Corker (TN) — have urged Donahoe to proceed with planned closures and other cutbacks. “Despite the Senate’s passage last week of S. 1789, the 21st Century Postal Service Act of 2012, we believe it is very unlikely that both the House and Senate will come to agreement on legislation that reforms the postal system anytime soon and strongly encourage you to move forward with the cost-saving changes you have previously outlined,” they wrote.

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, introduced by Budget Chairman Paul Ryan (R-WI), would phase-in the five percent contribution increases to 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 provide any additional 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.

“Once again, Congressional Republicans are insisting on balancing the budget on the backs of public servants who provide important services to the American people,” said APWU President Cliff Guffey.

The bill will next be considered by the U.S. Senate. Members are urged to contact their two U.S. Senators and ask them to oppose this egregious attack on postal and federal employees.

“This bill is reprehensible. I encourage union members to contact their Senators and ask them to remove this provision when it is considered,” the union president said.

“APWU members should also contact the offices of their U.S. representative and ask why supporters of H.R. 5652 voted to cut their pay,” said Legislative and Political Director Myke Reid.

Union members can reach their senators’ and representative’s offices by calling the Capitol switchboard at 202-224-3121.

To find out how your representative voted, click here.

May 10, 2012 — Today’s U.S. Postal Service’s announcement about the most recent fiscal quarter reinforces our view of the financial situation facing the USPS and how it can be fixed.

The Postal Service reports that 96 percent of its losses – $3.05 billion out of $3.18 billion – have nothing to do with mail delivery expenses, but rather result from an external political mandate. Since 2007, Congress has compelled the Postal Service to pre-fund future retiree health benefits for 75 years into the future, an obligation that will cost the USPS $11 billion this year. No other public agency or private company in the country is compelled to pre-fund.

Today’s report follows on last quarter’s financial statement by the Postal Service, which also showed that in operational terms the Postal Service is doing quite well – in fact last quarter there was a $200 million profit delivering the mail, with pre-funding accounting for all the losses.

The Postal Service’s own data shows that the first thing Congress needs to do is address this artificial political burden that is driving almost all the red ink. For the first half of this fiscal year, the USPS reports that pre-funding accounts for $6.2 billion of the $6.5 billion in red ink.

It would be absurd to start to dismantle the universal network and degrade service to the American people and America’s businesses – when almost all of the red ink has nothing to do with the costs of those services but stems directly from a burden that Congress imposed and Congress could fix overnight.

The service reductions called for in the Senate bill, and the worse ones called for in the House bill, would not fix the actual financial drain on the Postal Service. Rather, they would worsen things by driving customers away and reducing revenue.

We acknowledge that a thoughtful restructuring of the Postal Service is needed to adapt to the country’s changing needs. For 200 years, the USPS has adapted to an evolving society. Neither of the bills before Congress provides for such a thoughtful or constructive approach.

The Postal Service’s own figures and statement shows that the major cause of the financial problems is not – despite the conventional wisdom – Internet competition. In fact, the USPS today, as last quarter, cited a sharp rise in the shipping of packages ordered online as contributing to the good operational performance. That bodes well for the future, because that part of the business will continue to grow. If Congress will step up and fix the pre-funding problem it created, the USPS can focus on taking full advantage of this and other opportunities to better serve the public.

For 30 years, the Postal Service has not used a dime of taxpayer money, while providing the world’s most efficient and most affordable delivery service.

The APWU is continuing to analyze the Postal Service’s May 9 announcement that it will allow rural post offices to remain open, but with reduced hours.

“We support efforts to preserve service to the American people,” said APWU President Cliff Guffey. “In fact, we believe the long-term survival of the Postal Service depends on expanding service and offering new products.

“We applaud the proposal to allow greater community input on rural postal services and to keep offices open, but we are disappointed by the decision to reduce hours at these offices.

“The outpouring of interest in USPS plans demonstrates the importance of the Postal Service to our nation. It also demonstrates the importance of maintaining the service standards the American people have come to expect.

“Unfortunately, the Postal Service’s latest plan will not solve the USPS financial crisis, and it is important to note that 223 mail processing facilities remain in jeopardy.

“Only Congress can restore financial stability to the USPS by relieving the agency of the unreasonable requirement to pre-fund 75 years worth of healthcare benefits for future retirees in a 10-year period.

“It is imperative that the House act quickly to consider postal reform. We believe the appropriate starting point for discussion is the bill that was approved by the Senate on April 25.

“We urge House leaders to begin debate on the Senate bill.”