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Service Forecast: Cuts, Freezes, Eliminations
(This article first appeared in the January/February 2010 issue of The American Postal Worker magazine.)
Happy New Year! While I sincerely wish you all good health and happiness, I know that 2010 is going to be one of the most challenging years we have ever faced. In Fiscal Year 2009, the Postal Service reported a $3.8 billion deficit, despite more than $6 billion in cuts, which it achieved by:
Many of these actions have had a dramatic effect on the APWU bargaining unit: There have been countless incidents of job reposting and rebidding, assignments across craft lines, excessing out of facilities, as well as retirement and separation incentives. Yes, some of our members have resigned rather than be relocated. (Thankfully, we are contractually protected against layoffs.)
The USPS Board of Governors has made no secret of its plan to continue the current attacks on workers and has outlined several key restructuring actions.
Five-Day Delivery: The Postal Service is lobbying hard to get Congress to reduce mail deliveries from six days to five. The claim is that it will save billions of dollars … at the workers’ expense (primarily Letter Carriers).
Reduce Compensation and Benefit Costs: Management hopes to reduce costs by getting many of the almost 300,000 employees who will be eligible for retirement within the next four years off the rolls. Most of these individuals are at the top step, and many are in high-level assignments.
Management’s primary objective is to lower labor costs by lowering benefit costs. The USPS pays a higher percentage of employee health benefit premiums than other federal agencies (80 percent versus 72 percent). In addition, the Postal Service pays 100 percent of employee life insurance premiums, while other federal agencies pay about 33 percent.
Consolidate Retail and Processing Networks:
Armed with a General Accounting Office study that says the USPS should remove “excess capacity,” postal executives are determined to consolidate mail processing facilities and close stations and branches. Management claims the current processing capacity exceeds needs by an enormous 50 percent.
Consolidate Field Structure: We have already seen the merger of six District offices into others. The Postal Service is expected to review the need for the 74 remaining district offices and nine area offices with a view toward consolidating more. This will have more of an impact on managers than workers. Too bad.
The Impact on Us
Everyone must be prepared for the battles ahead. Nationally, we are preparing for our most difficult labor negotiation ever, with the employer already sending signals that it will come to the negotiating table with its pockets turned inside-out and a cup in hand: Management will be looking for charity from the workers.
In the Eastern Region, I will continue the difficult daily battles over each excessing notice, for every office, in every meeting where an employee is identified to be displaced. We have had good results in eliminating some excessing events, reducing the employee impact in most events, and reducing by thousands the number of affected employees from the original impact notices. Yet we still have lost a number of fights, the most distressing of which is the consolidation of mail from one facility into another.
Local union officers have done yeoman’s work under difficult circumstances, contacting their legislators, rallying the employees and customers, and effectively courting the media to ensure that their messages are heard.
Relocation Blues an/or ‘Make ’Em Pay’
The Office of Inspector General recently performed an audit that concluded that the Postal Service should consider postponing all employee-relocation proposals in favor of shifting funds to more critical operations. The report was released after it was announced that the Postal Service spent approximately $73 million to relocate some 2,000 employees in 2008 for bargaining- and non-bargaining-unit employees.
But if the Postal Service is going to continue to consolidate and close facilities, our members will be dislocated no matter what the OIG has recommended, so we have to continue to fight back and take full advantage of the right to relocation benefits.
While some members faced with reassignment choose to quit and or retire, I often recommend sticking with the USPS, especially in these times of high unemployment. The Postal Service is required to pay relocation expenses for those who are reassigned more than 50 miles beyond their current commute between home and work, and it may be the better economic choice in the long run.
Here are some of the expenses that are covered:
House Hunting: To look for a residence in the new community to which they are being reassigned, employees are to be reimbursed for one trip, not to exceed nine nights and 10 days of lodging, mileage, and per diem for the employee and spouse. The 10 days are considered working status.
Temporary Quarters: If a new residence is not available, employees are entitled to be lodged in temporary quarters for up to 30 days.
Relocation Leave: Employees are entitled to five days of Administrative Leave for the move to a new location.
Miscellaneous Expenses: Employees are entitled to reimbursement for having utilities disconnected at the old residence and installed in the new home.
Moving-Company Expenses and Storage of Household Goods: Employees are entitled to have household effects packed, loaded, and shipped to the new residence, as well as reimbursement for some storage costs.
Real Estate Transactions: Employees are entitled to be reimbursed for up to 10 percent of the sales price of their home on the selling end, and up to 5 percent of the purchase price on the buying end.
You can see why the Postal Service is better off offering incentives for people to leave the business rather than incur substantial costs for relocations.
