Kick the Can
The numbers do not add up in the proposed constitutional change approved by the executive council to be presented to the 2012 national convention. The proposal increases national dues from $9.05 to $10.05, a $1.00 per member increase per Pay Period. Assuming 160,000 members this amounts to $3.3 million per year in additional revenue for the national union. In addition, the division of future per capita increases derived from employee pay raises is changed with the General fund’s share increased from 0.9% to 1.0% and the Contingency Fund contribution reduced from 15 cents to 5 cents. Combined, these adjustments will generate approximately $4 million annually in additional revenue for the national union. If these proposals are approved and the membership is reduced by 20,000 members (160,000 to 140,000), the revenue to the national union will remain the same. If as anticipated the loss of members exceeds 20,000, each additional 5,000 members will equal a loss to the national of one million dollar annually. Hypothetically, if the Postal Service follows through with its threat of a 30,000 employee reduction, assuming an 85% membership rate, the membership loss will be 25,500 members and a net deficit of 5,500 members (25,500 minus 20,000) or $11 million less in revenue than planned through this per capita tax adjustment.
The per capita tax adjustment is obviously the preferred choice over the restructuring of the officers, staff and the elimination of positions, but it will be an inadequate response to the projected downsizing of the bargaining unit. National conventions are scheduled bi-annually so if this opportunity is missed, it will be two years before the opportunity is repeated in the 2014 convention and $22 million of expenses over revenue before the next convention.
What has not been factored into the loss of revenue is the replacement of retiring career employees by PSEs as management maximizes the contractual allowances and the loss of revenue from the lower dues structure for PSEs who have been capped at $12.00 per Pay Period divided into $6.00 for Locals and $6.00 for the national. If the convention Resolution does not repeal this arbitrary dues allocation, for every PSE replacement, the national will lose $4.05 in per capita. Locals will be particularly hard hit as PSEs, absent Local action will receive only $1.95 per PSE per Pay Period after deducting the $10.05 national per capita proposed by the Resolution. I do not know many locals can survive on dues of $1.95 per Pay Period for a compliment of employees that has been dramatically increased in the current contract and as career employees retire they will increase in their percentage of the local membership.
This proposal intends to defer to another day the serious discussions that must occur on the officers’ structure. At the time of merger in 1971, the structure represented accommodations for merger with anticipation that correction would be made. For 40 years we have been unable to reach a 2/3 consensus on changes and in fact the union has more officers in 2012 than at the time of merger in 1971. The surprise is that “the other day” has arrived and the time left to kick the can down the road has expired. This proposal will not satisfy the pending changes and additional time will be lost. If legislation is not enacted favorably resolving the retirement and health care funds and the employee compliment stabilized, this effort will not be a shiny example of leadership by elected officials, but represents swimming against the tide with a massive wave on the horizon.
Bill Burrus