NAPS: USPS May Lose $3 Billion By Year’s End
USPS reports nearly $1 Billion lost for August 2008
Accordng to the National Associationof Postal Supervisors (NAPS) Legislative Update
Postmaster General Jack Potter, in his address at the NAPS convention last week, reported that the Postal Service will lose more than $2 billion by the approaching end of the USPS fiscal year. “We are struggling,” Potter said, pointing to declining mail volume and a weakening economy. “We’re in a dynamic situation, with greater losses in volume than we’d expected.”
Potter’s remarks to NAPS were similar to those he delivered in a Public Customer Council broadcast yesterday, warning of a “perfect economic storm” that threatens to deteriorate mail volume further. Citing fluctuating oil prices, inflation in paper prices and strife in financial markets, Potter described the impact of economic conditions upon USPS as the most difficult since the 1960s, along with the impact of email and questions about mail’s environmental impact that have led to a volume decline of 9 billion pieces this year.
“But the economy will bounce back,” Potter predicted optimistically, “and we have to be ready to adapt,” Potter added.
The Postal Service reported a net loss of approximately $960 million in August, according to recent reports filed with the Postal Regulatory commission. While year-to-date revenue is slightly above the same period last year, revenue for August was about ten percent below August 2007 in spite of a 2.9% increase implemented in May.
Pointing to a “vigorous debate” going on right now at USPS headquarters on 2009 mail volume projections, Potter said that those numbers will influence craft staffing levels, and in turn supervisory staffing. He noted the possibility of movement to 4-day/ten-hour shifts, but continued to insist that USPS will not offer financial incentives coupled with VERAs. “We have to be prudent. In 1992, we paid 46,000 employees a half-year’s salary to go, then ended up rehiring 70,000,” Potter maintained.
More details on the Postal Service’s financial situation and possible reorganization will likely be released during next week’s meeting of the USPS Board of Governors.
Postmaster General Cautions of Perfect Economic Storm
Postal Service Outlines Plan to Tackle Tough Times, Reach New Heights
ST. LOUIS — Postmaster General John E. Potter challenged the mailing industry today, cautioning mailers about the severity of the current economic climate and urging them to create new growth opportunities.
Citing fluctuating oil prices, inflation in paper prices and the strife in the financial markets, Potter described challenging economic conditions as the most difficult time since the 1960s. The additional move of hardcopy messages to the Internet and questions about mail’s environmental impact have led to a volume decline of 9 billion pieces this year.
Despite the toug h times, Potter called on the mailing industry to seek new sources of growth.
“We have to approach the business in a whole new way,” Potter said. “We have to develop new ways for the American people and American business to use the mail.”
Despite the challenges ahead, Potter remains confident in the strength and commitment of the Postal Service and the mailing industry as a whole.
“Once the economic storm passes, our industry will rebound,” Potter told the audience of 14,000 PCC members. “If we remain focused on the fundamentals of our industry and if we reach out to new audiences, we will again reach new heights.”
The Postmaster General’s comments came during the national Postal Customer Council (PCC) Day broadcast, an annual event that brings mailers, industry partners and customers together to recognize their contributions to the Postal Service and outline future plans and goals.
One of these goals is to continue to improve record-setting levels of service. Working with the mailing industry and the Postal Regulatory Commission, the Postal Service has developed a new set of modern service standards for each class of mail and will begin measuring performance against these standards this year. In addition, improvements in customer satisfaction, scan rates, network effectiveness and the Postal Service’s website, usps.com, will be top priorities moving forward, Potter said.
“Service is what we’re all about. It is our franchise, the very reason for our existence,” he said.
Potter also called on the mailing industry to adapt to the changing marketplace and invest in the future. The Intelligent Mail Barcode is one way the Postal Service is leveraging technology to provide greater value and ease to business mailers, he said. Storing three times the amount of data of the current barcodes, the Intelligent Mail Barcode helps customers manage mail flow by uniquely identifying every piece in a mailing. The technology allows mailers to sort, track and receive address correction, all from one barcode.
Affordable prices that deliver value are a key element to retain and grow business, Potter said. The agency has reduced costs $1 billion or more for each of the past seven years and, through creative business solutions, absorbed the $700 million rise in fuel costs last year so that these costs were not passed on to customers as fuel surcharges.
“The price you see is the price you pay,” Potter said.
Reduction in costs alone will not be enough to overcome difficult economic times, he said, identifying several opportunities for growth through innovative new products, including a new, large Priority Mail Flat Rate Box and using the mail for recycling and product take-back programs.
Potter took a moment in the broadcast to recognize the recent devastation caused by Hurricane Ike and pledged the Postal Service’s continued support to victims in the areas affected by the storm, acknowledging the organization’s role to “bring a sense of normalcy” to the affected areas.
The Postal Customer Council (PCC) is a network of community-based business mailers and representatives of the U.S. Postal Service, who gather regularly to share ideas and resources to create a closer working relationship. On both the national and local levels, PCCs work to improve service and communications.
To help keep the lines of communication open, the Postal Service has launched the first official postal blog at 2blogPCC.com. Customers can discuss important topics facing the mailing industry, access the latest information and provide feedback.
National PCC Day also showcases the work of PCCs and includes a series of awards recognizing outstanding service and individual achievement. The following award winners were announced:
PCC Industry Member of the Year: Peggy Smith, Co-Chair, Greater St. Louis.
PCC Postal Service Member of the Year: Victor Laudisio, Customer Relations Coordinator, Buffalo/Niagara.
PCC of the Year: A tie! Buffalo/Niagara and Greater New York (large market) and Capital Region (small market).
PCC District Manager of the Year: Charles Howe, Greater Michigan District.
Communication Program Excellence: Greater New York and Capital Region (gold), Buffalo/Niagara and Greater Dallas (silver) and Fort Worth and West Michigan (bronze).
Education Program Excellence: Capital Region and Greater New York (gold), Buffalo/Niagara and Greater Atlanta (silver) and Greater Cleveland (bronze).
More information on Postal Customer Councils and National PCC Day can be found at usps.com/nationalpcc.
Video: USPS Express Mail 1987 Ad
1987 Commercial for the US Postal Service Express Mail
[video]http://www.youtube.com/v/TqCbYl66HNI[/video]
APWU: USPS Rejects Pilot Program For New Retail Position
From the American Postal Worker Magazine, September/October 2008 issue:
During the last round of contract negotiations, the APWU proposed another pilot for a Crew Chief position, with the new title, “Team Lead.” An agreement to implement the program was signed after the National Agreement was finalized.
Fifteen sites tested the Team Lead concept, which supports our strong belief that rank-and-file union members understand the retail environment as well as, if not better than, most supervisors. We believe that there is room for growth in the number of positions under this concept.
As structured in the pilot, the Team Lead was not responsible for discipline and did not determine schedules or overtime. The Team Lead simply was a voice making recommendations to management regarding proper staffing of the window on a daily basis. The Team Lead also worked the window when necessary.
This last point was essential for the union to agree to such a pilot: The APWU did not want another supervisor in the retail section. We wanted more responsibility given to our workers. We also wanted more jobs.
Monitoring Problem
Tragically, this is all in the past. During a recent meeting, the USPS officials informed us that they are not interested in the Team Lead concept. The announcement came after a disappointing effort by management to monitor the success of the program. Basically, all management wanted to do was look at the numbers.
If “wait time in line” times didn’t improve, the pilot was a failure. If revenue did not go up, the pilot was a failure. If the “data” didn’t look good, the pilot was a failure.
We knew something was wrong when management told us that travel restrictions were preventing them from keeping their commitment to visit the pilot sites. We know that the Team Lead concept would work if employees and supervisors were given the proper training and support. Now the union will have to focus on generating more Lead Sales and Service positions through the grievance procedure.
There is new leadership in the Postal Service Retail Division. Unfortunately, we are left to conclude that new doesn’t mean fresh or forward-thinking, it just means “new.”
Bilingual Retail Associate
Because of the failure of the Team Lead pilot, the opportunity for success of the “bi-lingual retail associate” concept is also in doubt.
As with the Team Lead program, the union entered into an agreement in good faith. But it is no secret that the bilingual retail associate issues are complex and demand more than the usual amount of cooperation and trust.
At this time, there are no plans to discuss the bilingual retail associate. It is unfortunate that the parties who negotiated the agreements are no longer present to try to bring them to closure.
Connecticut Congressman Presses Postal Service for Answers Regarding Meriden Route Changes
Press Release issued on Friday September 12, 2008
NEW BRITAIN, CT – Today, Congressman Chris Murphy (CT-5) released a letter he sent to Frank Marshall, Acting District Manager for the United States Postal Service to get answers for Meriden residents about how the Postal Service is going to resolve the mail delivery delays in the city caused by the recent elimination of eight routes.
“Individuals and businesses rely on the United States Postal Service; they expect to receive their bills, paychecks, and other important packages in a timely manner. The Postal Service’s sudden change in service begs not only explanation, but a solution,” said Murphy.
Murphy has received calls into his office about the situation. Many of those affected by the route changes are senior citizens, who are waiting until the late evening for their mail to arrive.
Minor adjustments to the routes have not remedied the delays. As a result, Murphy has asked the United States Postal Service detail how the routes are being improved to provide better customer service.
“I don’t think it’s too much to ask that the Postal Service deliver for their customers, the residents of Meriden, before they go to bed every night,” said Murphy.
FERS Sick Leave Credit Legislation Update
From the National Association of Postmasters of the United States (NAPUS) Legislative and Political Bulletin
Earlier this week, Sen. Cornyn, the Senate sponsor of the Senate companion to HR 1108, legislation to give the Food and Drug Administration regulatory authority of the tobacco products, indicated that the Senate is unlikely to take up the measure this year. HR 1108 includes a provision, authored by House Oversight and Government Reform Committee Chair Henry Waxman (D-CA) that provides FERS retirement credit for unused sick leave. The House passed its version of the bill on July 30 by a 326-102 margin. The September 10 issue of CQ Today reported that when Sen. Cornyn was asked about whether the Senate would take up H.R. 1108, he answered, “Realistically, I don’t think so.” According to Senate leadership staff, the crowded end-session legislative calendar renders consideration highly doubtful.
Potter Names Cochrane and Betman to VP Positions
Filed under: postal managers, press releases, usps, vice presidents
USPS Newslink
Postmaster General Jack Potter today announced the appointment of Jim Cochrane as Vice President of Ground Shipping and Mitzi Betman as Vice President of Corporate Communications.
Both have been acting in their respective positions for several months, and each has done an outstanding job during that time,” Potter said.
As Vice President of Ground Shipping, Cochrane is responsible for developing products and programs that will improve profitability and customer value while leveraging pricing freedoms made possible by the Postal Act of 2006.
“Jim’s previous experience as Manager of Package Services, Product Development, and his Sales background uniquely position him to understand customers’ needs in this market. His extensive prior experience in operations including Manager of the Capital District will be beneficial in developing customer solutions that align with operational capabilities ensuring efficiency, world-class service and profits,” said Potter.
Cochrane is a graduate of American University with a master of public administration from the School of Public Affairs. He reports to Shipping and Mailing Services President Robert Bernstock.
As Vice President, Corporate Communications, Betman is responsible for all internal and external communications for the Postal Service, including media relations, design and brand equity, video production and photography, speechwriting and community relations.
Betman most recently served as Director, Operations Planning and Strategies, in the office of the Deputy PMG and Chief Operating Officer. There she performed the duties of chief of staff and principal executive for implementation and coordination of national postal operations plans and strategies.
“Mitzi’s strong operational, field, and corporate experience, and connection with our customer base, lend themselves well to shaping our corporate messages internally and externally,” Potter said.
Mitzi holds a bachelor of science degree in business management from the University of Maryland University College and a master of public administration degree from American University. She reports to Customer Relations Senior Vice President Stephen Kearney.
Photo: Post Office In Stockton Utah
Stockton, Utah Post Office 84071
Postal Service Issues New Procedures for Handling Inbound International Registered Mail Items
From USPS Postal Bulletin dated 9/11/08:
After completing a National Security Review of Registered Mail, the U.S. Postal Inspection Service recommended new procedures for handling inbound international Registered Mail® items, in line with requirements of the Universal Postal Union (UPU). Under the new policy, inbound international Registered Mail items are placed in the same mailstream as First-Class Mail® items.
Inbound international Registered Mail items are still verified and accepted at international service centers (ISCs). At delivery units, the following new procedures are in effect:
- Inbound international Registered Mail items are submitted to accountable clerks.
- Accountable clerks assign the mail to a delivery employee in bulk, by number of pieces, instead of by Registered Mail number.
- Letter carriers document delivery, or attempted delivery, of the mail using PS Form 3849, Sorry We Missed You; obtain a signature from the addressee or agent; perform appropriate scans; and submit the signed PS Form 3849 to the accountable clerk. If the mail cannot be delivered, it is returned to the accountable clerk.
At processing and distribution centers, inbound International Registered Mail items on the workroom floor remain in the First-Class Mail items mailstream, outside of registry operations.The new procedure became effective August 25, 2008, for inbound international Registered Mail items at the JFK ISC. The other ISCs will implement the new procedures on September 30, 2008.
GAO: New Delivery Performance Measures Could Enhance Postal Managers’ Pay for Performance Program
Summary of Report From GAO:
The U.S. Postal Service (USPS) pay for performance (PFP) program for managers includes quantitative performance indicators. PFP ratings are the basis for salary increases and lump sum awards for nearly 750 Postal Career Executive Service (PCES) executives and about 71,700 other participants, mostly Executive and Administrative Schedule (EAS) employees. GAO was requested to provide information about USPS’s PFP system. This report (1) describes the key features of USPS’s PFP system, (2) provides information on the weight of its performance indicators in determining PFP ratings, and (3) identifies opportunities for USPS to incorporate delivery performance indicators into its PFP system. GAO obtained USPS documents and data, interviewed USPS officials, and primarily based its assessment on laws related to timely delivery and interviews with senior USPS officials.
Key features of the PFP program are quantitative corporate and unit indicators of performance and individual performance elements that are used to rate participants and provide the basis for awards. Quantitative performance targets are established for corporate and unit indicators. Corporate indicators apply to all participants and include measures of timely delivery, productivity, revenue, and net income, among others. Unit indicators apply to selected groups of participants and vary according to the groups’ responsibilities and span of control. Individual performance elements are tailored to the participant group and, within some groups, to individuals. Individual performance elements may be defined by narrative standards or may be quantitative indicators defined with specific target performance levels. The overall PFP rating is based on results of corporate and unit indicators and individual performance elements and is used to determine the salary adjustment and any lump sum award. PFP indicators related to three USPS strategic goals–increasing efficiency, improving service, and generating revenues–collectively account for two-thirds of the average participant’s rating (see fig.). However, indicator weights vary considerably by participant group, based on the responsibilities and span of control of various positions. As USPS implements requirements of the postal reform law for measuring delivery performance, it will have opportunities to incorporate new indicators into its PFP program, notably for timely delivery of Standard Mail (49 percent of mail volume in fiscal year 2007) and bulk First-Class Mail (25 percent of volume). Once new delivery performance measurement systems are fully implemented and mailers’ participation is sufficient to generate representative data, USPS will be able to incorporate new delivery performance indicators into its PFP program. These new indicators would create a more “balanced scorecard” that uses service performance metrics for the mail that is measured to support personal and unit accountability.
As USPS implements requirements of the postal reform law for measuring delivery performance, it will have opportunities to incorporate new indicators into its PFP program, notably for timely delivery of Standard Mail (49 percent of mail volume in fiscal year 2007) and bulk First-Class Mail (25 percent of volume). Once new delivery performance measurement systems are fully implemented and mailers’ participation is sufficient to generate representative data, USPS will be able to incorporate new delivery performance indicators into its PFP program. These new indicators would create a more “balanced scorecard” that uses service performance metrics for the mail that is measured to support personal and unit accountability
Chart: Average Annual PFP salary Increases for PCES executives
Chart: Average annual PFP salary increases for EAS managers, supervisors and non-PCES
