William Burrus  APWU President

Ask the President

Question:

With the Postal Service stating that the USPS lost money this year to the tune of $2.8 billion, and knowing that there are executive wage caps in the GS pay scale and the military pay scale, it seems odd that the Postmaster General is receiving $867,459 annually in compensation, as reported by the Postal Regulatory Commission.

No other federal job compensates their officers this much. Other officers are making $600,026 and $338,317. I don’t believe they are willing to take a pay cut.

Why does the Postal Service always seem to want cut back on the wages, compensation, etc. of the employee — not offering VER buy outs, and just generally interrupting employees’ lifestyles by implementing the Tour 2 initiative?

As a steward, while negotiating settlements at Step 2, I hear almost every day, “Don’t you think you are asking too much? We can’t afford to pay him that,” on and on…

George, Cascade Area Local

President Burrus:

Thank you for communicating with my office on the subject of the Postmaster General’s pay. You state that PMG Potter’s reported salary of $857,459 is excessive, and you make reference to management decisions affecting employees.

There is no question that under Potter’s leadership, decisions detrimental to the Postal Service have been made; but I do not begrudge him a salary commensurate with his responsibilities.

Jack Potter is the Postmaster General of the largest postal system in the world; he is the CEO of the 10th largest commercial enterprise in our country, which is second only to Wal-Mart in the number of workers it employs. Despite the scope of his responsibility, he is the lowest paid CEO of a major corporation in our country.

The compensation figure that you refer to ($857,459) is not annual salary; it represents deferred income he will receive after he leaves the position and other types of compensation.

• The actual annual salary of the Postmaster General is $263,575.
  
  
• $381,496 is the estimated change in the future value of Civil Service Retirement benefits to be paid out (as it would be with any CSRS retiree) over the PMG’s remaining life-time once retired — perhaps 35 years.
  
  
• $135,041 is incentive and performance compensation and will be paid out in 10 annual installments beginning when the PMG leave postal employment.
  
  
• $69,253 is security costs spent on the PMG and charged to his total compensation.
  
  
• The remaining money pays for various benefits such as life insurance and perquisites like parking, physical exams, and spousal travel.

As the president of the union representing postal employees, it is my responsibility to demand a fair share of the revenue generated from their efforts. I do not find it necessary to criticize the salaries of non-bargaining unit employees in order to justify the negotiated salaries of bargaining unit employees. In a capitalist society, individuals are compensated based upon demand and/or their skills, knowledge, or responsibility. I do not criticize others for their success in achieving fair compensation.

The Postmaster General is deserving of the deferred annuity — and more — for presiding over the best postal system in the world.

Dec. 23, 2008