NALC President Cautions Postal Service On Slashing Delivery Costs Outside Contract

NALC, Other Unions Briefed By Postmaster General Potter On USPS Financial Condition

NALC President William H. Young and the leaders of several postal unions and management associations met with Postmaster General John Potter on September 22 to discuss how the deterioration of the U.S. economy is adversely affecting the United States Postal Service.

PMG Potter reported a significant erosion in the financial health of the USPS as mail volume fell sharply and rising fuel prices increased both transportation costs and labor expenses (COLAs). He indicated that a severe recession in several mail-intensive industries — housing,real estate, finance — would likely cause the USPS to lose $2.5 billion in fiscal year 2008.

“There is no doubt that the crisis in the American economy is having a severe impact on the Postal Service,” Young noted after the meeting. “NALC is committed to working with the PostalService to find ways to deal with the difficult circumstances facing us.”

However, he cautioned the Postal Service from launching unilateral initiatives to slash delivery costs outside the parameters set by the National Agreement.

“Our union is deeply engaged in efforts to find win-win solutions for the parties;we will act responsibly, but we will not accept management dictates that violate our rights,” Young said.

“Our goal is to help the Postal Service survive and prosper; if we work together, we will overcome the challenges posed by the poor economy,” he added.

source: NALC