‘NCED No-Show’ Fee Dispute Resolved

In response to an APWU protest, the Postal Service has instructed field-level managers to bill USPS scheduling offices – rather than employees – for any costs associated with an employee’s failure to attend scheduled training sessions at the National Center of Employee Development.

The protest was launched after the union became aware of a field-level policy in which the Postal Service was issuing Letters of Demand— for the purpose of collecting a “No-Show fee” — to employees who were unable to attend their NCED training sessions, and/or cancelled their training less than 21 days before the start of the sessions.

Management claimed that its training center incurred the same costs regardless of whether the classes were full. The “No-Show fee” minimized the likelihood of seats going unused and helped recoup the cost of missing students, the Postal Service said.

The policy apparently was first applied in Delaware in April, when management issued a letter that said:

“Employees scheduled for training who wish to withdraw from a class must discuss it with their SMO or MMO immediately. The employee will be responsible for the full cost of the NO SHOW fee if the request is received within the 21 day period prior to the first day of class.”

The union immediately contacted the Postal Service at the headquarters level, pointing out that the policy had been unilaterally created and that issuing such a Letter of Demand to a bargaining-unit employee equated to levying a disciplinary fine.

In addition, the APWU challenged the Postal Service to provide evidence that an employee’s inability to attend NCED training resulted in the Postal Service incurring a loss of funds.

The APWU position is that the NCED is a postal facility, and as such is no different than a BMC, a P&DC, an Associate Office, etc., so an employee's inability to attend training at the NCED could not result in a loss of funds or cause the Postal Service to incur a debt, which are the basic requirements that the agency must demonstrate prior to issuing a Letter of Demand.

In response to the APWU's protest, the Postal Service issued a new policy by letter, titled "NCED No Show Chargeback Policy," which provides the definition of a No-Show fee. The policy also provides a definition for the method by which a No Show fee will be administratively handled. The policy reads:

“NCED charges a no-show fee equivalent to the full course fee for students that offices enrolled in a resident course but who do not show up for class. The responsible office's finance number will be journal-vouchered for the full fee of the scheduled resident class.”

The policy also clarifies that the scheduling office is responsible for the costs: "If the seat cannot be filled, the scheduling office will be billed for a no-show."

Contact your Maintenance NBAs or the division’s national officers with questions on NCED No-Show fees or any other Maintenance issues.