Ask the President

Question:

You have written about union demands that the Postal Service offer incentives to employees who are offered early-outs. Do you expect to accomplish this within the one-year time frame (ending June 2009) that the Office of Personnel Management (OPM) has given the Postal Service for Voluntary Early Retirements (VERs)?

Cynthia, Florida Postal Workers Union

President Burrus:

I have received several recent inquiries about the Voluntary Early Retirement offer by the USPS; I will reply to them with a single response:

The union’s effort to require the payment of an incentive to employees who opt to retire early will not be resolved in the near future, as it is expected that we will be forced to refer the issue to an arbitrator for a final ruling. We have requested that all employees who retire early be provided severance pay, as required by the contract, and, if we prevail, employees who retire under the VER offer will receive payment.

Employees who followed my advice and refrained from retiring will not have another opportunity from this VER offer to opt for the early-out or to receive an incentive.

It has been reported that 3,600 eligible employees accepted the retirement offer that ended Sept. 30, but this number will not satisfy the Postal Service’s need to reduce costs. Other offers are pending, and it is expected that additional opportunities for early retirement will be offered in the near future. Budget shortfalls of $5 billion in Fiscal Years 2008 and 2009 will continue to put pressure on the Postal Service to reduce the workforce.

If the Postal Service resorts to layoffs as a means of reducing costs, the contractual provisions permitting the layoff of non-protected employees requires the offer of Voluntary Early Retirement and the payment of severance pay for employees who elect the early-out.

Oct. 21, 2008