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Postal Reform Update:
GAO Asked to Investigate Big Mailers' Discounts

APWU News Service Bulletin #9-02, May 15, 2002 | PDF 

APWU is grateful that Sen. Daniel K. Akaka (D-HI), and Reps. Henry A. Waxman (D-CA) and Danny K. Davis (D-IL), have asked the General Accounting Office (GAO) to investigate whether postal rates subsidize big mailers. The GAO is Congress' investigations and accounting agency, and Akaka, Waxman and Davis are influential members of committees that have jurisdiction over the Postal Service.

"We are concerned with recent reports that the United States Postal Service may be offering 'worksharing' discounts to mailers that exceed the cost-savings realized by the Postal Service," the congressmen told GAO Comptroller General David M. Walker in their May 15 letter.

"Given the Postal Service's severe financial problems, it is important that no worksharing discounts be offered when the size [of] the discount exceeds the cost-savings to the Postal Service."

The congressmen requested that GAO determine if, and to what extent, major mailers' discounts are justified by examining "the adequacy of the costing data and formulas used by the Postal Service to make avoided-cost calculations, as well as the economic assumptions underlying such calculations."

In investigating the discounts, the congressmen asked GAO to "visit a range of mail processing facilities that receive mail subject to worksharing discounts and consult with officials of the Postal Rate Commission, postal management and the American Postal Workers Union, as well as other postal stakeholders."

It remains to be seen how swiftly the GAO will conduct its study and respond to the congressmen's request.

Burrus Opposes Postal 'Reform' Commission

APWU President William Burrus wrote President Bush on May 14 to urge him to reject requests from the big mailer's lobby to create a presidential commission to shape the Postal Service's future. President Burrus' letter coincides with stepped-up efforts to implement the Postal Service's "Transformation Plan."  A copy of President Burrus' letter to President Bush is reprinted below.

On May 13, the Senate Governmental Affairs Committee held a hearing on the Postal Services's Transformation Plan. Only Postmaster General John E. Potter and David Walker, Comptroller General of the GAO, were invited to testify. Unfortunately, neither addressed the discount issue that APWU has consistently raised, and we will continue to challenge the Postal Service's practice of subsidizing big mailers through giveaway discounts for pre-sorting their mail.

APWU is closely monitoring postal reform efforts and will remain a forceful advocate for the interests of postal workers in Congress as the postal reform debate takes place in Washington, DC.  We will post updates on the APWU website www.apwu.org as developments occur.

Cost-of-Living Inches Up

The consumer price index rose in April to 523.7.  After the third month of the six-month cost-of-living adjustment period, employees have accrued the following amounts toward the second cost-of-living adjustment under the 2000 Collective Bargaining Agreement:

Per Year:                            $280.80
Per Pay Period:                       10.80
Cents Per Hour:                      13.50

The Postal Service will begin paying the second adjustment effective Sept. 7, 2002 (pay period 2002-20).

Due to a falling consumer price index, employees did not receive any increase from the first cost-of-living adjustment period. This was anticipated, and was announced when Arbitrator Stephen B. Goldberg released his ruling on the Collective Bargaining Agreement on Dec. 18, 2001.

Lump-Sum Tax Withholdings Prompt Questions

Many members have inquired about the large tax deductions that were withheld from the $499 COLA lump-sum payments that were issued March 15, 2002, as a result of the collective bargaining decision by Arbitrator Goldberg.

The lump-sum tax deductions were governed by a special Internal Revenue Service Rule (Publication 15, Circular E, Employees Tax Guide, Page 12), which required the Postal Service to withhold a flat 27 percent for federal taxes. Additional deductions were withheld for state and local taxes.

The back pay due on May 23, 2002, is not covered by this rule and normal tax withholding rates will apply.

Basic Arbitration Training Conference

The Research and Education Department of the American Postal Workers Union will conduct a weeklong Basic Arbitration Training Conference to acquaint local and state union officers and stewards with the techniques needed to effectively prepare a case for basic arbitration. (See information below about weeklong Advanced Arbitration Training Conference). Students will be required to attend classes daily, meet with the members of their assigned team during evening hours, complete homework assignments, and participate in a mock arbitration case.

Registration

To register for the conference, participants must submit a written request from their local or state president (on local or state letterhead) authorizing their attendance, and must pre-register prior to the conference deadline, Friday, June 7, 2002.  No walk-ins will be allowed.  Space is limited.  Therefore, it is imperative that students register early.

Arrival and Departure

All participants should plan to arrive at the hotel on Monday, June 24, 2002 no later than 2 p.m. to register. Classes will begin promptly at 3 p.m. on Monday. The conference will adjourn no later than 11 a.m. on the following Sunday morning.

Curriculum

Participants must be in attendance for the entire week to receive certificates. Instructors will be APWU national officers and business agents. Classes are: Introduction to Arbitration, Preparing the Case, Identifying and Framing the Issues, Threshold Issues, Exhibits and Stipulations, Opening Statements, Rules of Evidence, Objections, Direct Examination, Cross Examination, Closing Statements and Finality of Awards.

Hotel Accommodations

To secure the hotel rates listed below, please inform the hotel that you are with the American Postal Workers Union. Check-in time is 4 p.m.

Date: Monday, June 24, through Sunday, June 30, 2002

Hotel:

Radisson Plaza - Warwick Hotel Philadelphia
1701 Locust Street
Philadelphia, PA 19103
Phone Number: (215) 735-6000
Toll Free Phone Number: 1 (800) 333-3333
Room rate: $118 + 14 percent tax, single/double occupancy
(A full American breakfast is included)
Parking:     $24 per night (subject to change)

Deadline to register for hotel rooms and conference is: Friday, June 7, 2002

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Advanced Arbitration Training Conference

The Research and Education Department of the American Postal Workers Union will conduct a weeklong Advanced Arbitration Training Conference. The conference is designed to acquaint arbitration advocates who are currently arbitrating with the advanced techniques needed to prevail in arbitration. Students will be tested daily.

Prerequisite: To register for the conference participants must meet one of the following criteria:

a. Must be a certified national advocate.
b. Must be a local certified advocate who is currently arbitrating cases.
c. Must have previously attended a Basic Arbitration Training Conference.

Registration

To register for the conference, participants must mail a letter from the local or state president (on official letterhead) authorizing their attendance along with the registration form and check.

All participants must pre-register prior to the conference deadline, Friday, Aug. 9, 2002. No walk-ins will be allowed. Space is limited; please register early.

Arrival and Departure

All participants must arrive at the hotel on Tuesday, Sept. 10, 2002, no later than 2 p.m. to register; classes will start promptly at 3 p.m. on Tuesday. The conference will adjourn no later than 11 a.m. on the following Sunday morning.

Curriculum
Participants must be in attendance for the entire program.  Certificates will be awarded based on class performance. Instructors will be APWU national officers and business agents.

Classes
Rules of Contract Construction, New Evidence / New Arguments, Major Mistakes Made by Arbitration Advocates, Just Cause Concepts and Challenges, Writing an Effective Brief, Due Process, Witnesses (special situations), Nexus, Latin in the Hearing, Affirmative Defense, Framing Multiple Issues and Threshold Strategies.

Hotel Accommodations

To secure the hotel rates listed below, please inform the hotel that you are with the American Postal Workers Union.  All hotel rooms must be guaranteed by credit card, check or money order. Refunds will be granted if reservations are canceled 72 hours in advance of the arrival date. Check-in time is 4 p.m.

Date:  Tuesday, Sept. 10 through Sunday, Sept. 15, 2002.

Hotel:           

Holiday Inn on the Bay
1355 Harbor Drive
San Diego, CA 92101
Direct Phone Number: (619) 232-3861
Toll Free Phone Number: 1 (800) 877-8920
Room Rate: $99+10.5 percent tax, single/double occupancy
Parking: Currently is $15 overnight, with in-and-out privileges.

Deadline to Register for Conference and Hotel Rooms is Friday, Aug. 9, 2002.

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