William Burrus  APWU President

Ask the President

Question:

In light of the reduction in the number of postal workers, I am requesting your staff to “explore the option” of offering a dues payment to start a union pension plan. I believe it would:

Retain postal workers in the union;

1. Offer a financial building block to buy the Postal Service if it is ever made private, and
   
   
2. Create funds to be made available to the union for union business.
   
   
3. The dues pension program has worked for numerous other unions, including the International Brotherhood of Electrical Workers.

Stephen, Houston Area Local

President Burrus:

Thank you for your e-mail regarding the creation of a union pension plan. I congratulate you for thinking of creative ways to address the severe problems facing the Postal Service.

Although I have serious reservations about creating a union pension plan in response to declining mail volume, your idea is worthy of praise because you are thinking about the future.

Pension plans are means of saving and investing today’s income to be accessed at a later date when income from employment is reduced. Many laws have been enacted to protect enrollees, and participation in such programs has been encouraged through exceptions to the tax code.

The Electrical Workers program you cite is funded through supplemental dues paid by union members. The union does not fund the program. Given the current economic climate, an increase in members’ dues to fund a new pension program is not feasible at this time.

The national union has established a voluntary pension program for local union officers and stewards who are full-time or part-time or employees of the union. This plan is designed to help local officers re-coup losses from leave without pay that they incur as a result of their participation in union activities. Since rank-and-file postal workers are not employees of the APWU, they are not permitted to participate in this plan.

As always, your input is appreciated.

June 29, 2009