USPS: Combination Carrier-Clerk Duty Assignment Cancelled
Tarzana, CA Postmaster Shawn White has notified Local APWU President Richard “Ski” Kwiatkowski that the Combination Carrier-Clerk duty assignment posted on July 27, 2010 has been cancelled:
“This is to inform you that the combination bid assignment #70445772 has been cancelled and will not be re-posted at this time.”
Previous article posted July 28, 2010:
USPS has notified a Local California APWU President of its intent ( it appears that the assignment has already been posted) to post a “combined full-time assignment” , consisting of six (6) hours of carrier duties and two (2) hours of clerk duties. The Postal Service has proposed to post this job as a City Carrier Craft assignment under the jurisdiction of NALC.
Here is a breakdown of the duties:
Manual Distribution, Breakout and Spreading: 1:59,
Office Time 1:16 and
Street Time: 4:45.
The Full-Time assignment also has a “scheme” attached along with qualifications necessary to be awarded the job.
Excerpts of the letter from USPS to the Local California President:
This is to inform you of my intent to utilize the provisions of Art 7.2A of the National Agreement to create a full-time assignment by combining duties from different crafts. The reason for establishing the combination assignment is to provide maximum full-time employment and provide necessary flexibility.
Attached you will find a copy of the combination assignment to be posted. This bid job will be designated to the NALC represented craft.
Postal Clerk Gets Prison For Embezzling $240,000
DES MOINES, Iowa — A postal clerk from Indianola has been sentenced to a year in prison after pleading guilty to embezzling more than $240,000.
The U.S. attorney says 47-year-old Kimberly Sue Nordhagen was sentenced Friday after admitting to converting Postal Service money orders and cash transactions to her own use.
Nordhagen, who worked at the West Suburban Station in Clive, admitted to stealing the money between January 2004 and March 2009.
In addition to her sentence, she was ordered to make full restitution to the Postal Service.
source: Associated Press
USPS OIG Audit Report – Flats Sequencing System: Program Status and Projected Cash Flow
This report discusses the Flats Sequencing System (FSS) program status and its projected financial impact and addresses both operational and financial risks (Project Number 09YG052DA000). The objective of this audit was to assess procedures for reporting of FSS performance and program savings shortfalls. See Appendix A for additional information about this audit.
In December 2006, the U.S. Postal Service approved a (redacted) project to develop,purchase, and deploy 100 FSS machines, which are designed to sort flat mail in the precise order in which it is delivered. The first two contract requirements tests of FSS machines (designed to ensure functionality, quality, and compliance with specifications) have shown shortfalls in expected performance. Typically, when there is a First Article Test (FAT) failure, Postal Service acquisition guidelines call for retests before beginning deployment. However, in this case, the Postal Service has decided to deploy FSS machines despite major performance shortfalls in order to capture savings earlier; however, deploying FSS machines that do not meet contract requirements could reduce
expected savings. Although the Postal Service has adjusted its savings expectations and project assumptions have changed, it has remained optimistic when communicating expected financial outlooks.
Conclusion
The Postal Service’s revised performance projections in Quarter 1 (Q1) of fiscal year (FY) 2010’s Investment Highlights report do not use current actual machine performance and its projection of a gain of at least $872 million from FSS appear optimistic. In addition,there have been significant changes in assumptions for FSS machines and measurement criteria since the 2006 approval of the original investment. For example, flats volumes have decreased significantly, expected throughput rates have not been met, planned FSS sites have increased, the program schedule has changed by a year, and additional savings for transitional employees (TE) have been introduced to the investment return.These changes make it challenging for the Postal Service to measure project success as initially defined.
Particularly, we believe adding TE savings to the evaluation of FSS program success is questionable for several reasons. First, these savings were never considered as part of the original investment decision. Second, 44 percent of TEs are not in districts that will eventually host FSS machines. Lastly, management claimed these savings prior to FSS deployment and has the option of reducing TE complements for volume declines irrespective of the FSS program’s success. Thus, much of the savings from these employees will likely not be associated with FSS deployment.The Postal Service’s Q1, FY 2010 Investment Highlights report shows a projected gain for the FSS program of at least $872 million and a return of at least 27 percent. Using current actual performance data for the highest performing machine and operational target metrics, we calculated four financial scenarios for measuring program status and progress
against program goals. These scenarios were at least $431 million lower than the scenarios the Postal Service presented. Such a large difference exists because the Postal Service used more optimistic performance assumptions rather than actual machine performance or operational target results.
Our analysis shows that using current FSS performance data to calculate projected savings results in a net present value (NPV) of $215 million (a rate of return of 14.49 percent). If we remove the questionable TE savings, the NPV decreases to a negative $311 million (a rate of return of 5.18 percent). Assuming the FSS machines reach the operational target metrics, we calculate gains from FSS to be $441 million (rate of return of 19.26 percent). If we remove the questionable TE savings, there is a projected NPV of a negative $85 million (a rate of return of 8.54 percent).
The Postal Service’s Handbook F-661 requires accurate analysis and reporting of program impact. One purpose of the Investment Highlights report is to show the progress of large-scale programs within the Postal Service. Reporting program performance based on actual and operational target data is critical so that key decision-makers (such as the Board of Governors) have sufficient information to monitor program progress on projects of significant duration. See Appendix B for our detailed analysis of this topic.
We recommend the vice president, Engineering:
1. Use actual machine performance and operational target data to more accurately report the progress of the Flats Sequencing System program’s financial outcomes in compliance reports such as the Investment Highlights report.
1 General Investment Policies and Procedures (November 2005, updated with Postal Bulletin revisions through October 11, 2007) provides a single source overview of investment projects.
Management’s Comments
While management agreed with the recommendation to use actual machine performance data for compliance reports, they took exception to certain findings and our recommendation to use operational target data. Specifically, the Postal Service will include an additional FSS financial scenario when reporting outcomes in Investment Highlights reports. Management will take this action in time for the Q3, FY 2010 Investment Highlights report. The reported scenario will represent the Postal Service’s most current assessment of actual machine performance. In reference to using operational target data,the Postal Service does not believe they are representative of long-term expectations and elected not to present them in future Investment Highlights reports.
Management also said the financial outcomes presented in the report do not recognize:
- Throughput improvements demonstrated during tests in November 2009 and April 2010.
- Performance improvements over the 10-year program life and performance levels already achieved by the first article machine.
- Over 17 hours of daily runtime for unconstrained machines.
- The relevance of TEs, their strategic use, and the resulting savings attributable to the FSS program.
- Scheduling adjustments that address lower mail volumes.
- Additional savings related to delivery unit space reductions and vehicle capital investment and maintenance avoidance.
Thus their lower bound outcomes represent the likely worst case scenario. We have included management’s comments, in their entirety, in Appendix D.
full report from the USPS Office Of Inspector General
Two Congressional Panels Approve Bills to Continue Six-Day Mail Delivery
Two Congressional Panels Support Six-Day Service
APWU Web News Article 074-2010, July 30, 2010
Two congressional panels voted on July 29 to approve spending bills that would require the Postal Service to continue to provide mail delivery six days per week. The two bills — one in the Senate and one in the House — still have a long way to go before they could become law, however.
“These are important steps, but we must clear many more hurdles in order to stop the Postal Service from eliminating Saturday delivery,” said APWU Legislative & Political Director Myke Reid. “The full Senate and House would have to approve the bills, and then the two versions would have to be reconciled to resolve any differences between them.” Spending bills are traditionally very difficult to pass, he said.
The Senate Appropriations Committee voted 18-12 to approve a spending bill for Fiscal Year 2011 that would prevent the U.S. Postal Service from reducing mail delivery from six days to five. The House Financial Services and General Government Subcommittee voted by voice.
On July 28, Sen. Jon Tester (D-MT), a member of the Senate Subcommittee on Financial Services and General Government, announced that he had persuaded the members of the Senate panel to reject the USPS proposal. Sen. Tester explained the importance of six-day mail delivery to rural America.
“Folks in rural and frontier communities often rely on their Saturday mail to bring them the things they need to live. Unlike in urban areas where folks can walk down the block to the local drug store, many Montanans live long distances from the nearest pharmacy or newsstand. Getting mail six days per week is part of what keeps rural America strong and thriving.”
The bill notes the crucial role of six-day service. It says, “The Committee believes that six-day mail delivery is one of the most important services provided by the Federal Government to its citizens. Especially in rural and small-town America, this critical service is the linchpin that serves to bind the Nation together.”
PMG Potter’s Response To White House On Pilot Test For Five-Day Delivery
Excerpts from PMG John Potter letter regarding Pilot test on Five-Day Delivery:
From an operational standpoint a pilot test conducted on a regional basis would increase some of our costs in the short term. For example, we either would have to make manual changes to mail processing sorting schemes and payroll or utilize information technology to program such changes for a limited time or geographic area. We believe that our information technology programming changes, estimated to cost $10 million-$12 million for a national, full-time implementation, would grow significantly to accommodate a test, as would administrative costs if we decided to forego programming changes in favor of performing manual processing for the defined test period. We also would have to communicate the pilot’s parameters to the public and employees. During such a test we would be unable to make the permanent, necessary changes to our delivery workforce, transportation networks, and mail processing operations that would yield the projected $3.1 billion savings. The largest financial impact of a pilot would be the fact that many career employees in the pilot area would have to be paid not to work or be relocated, white many of our non-career and part-time employees would see their wages reduced or eliminated. Any savings in wages that the Postal Service would realize during the test would immediately disappear at the test’s conclusion.
It may be helpful for me to offer a distinct example of the internal challenges that a test would present. In City Letter Carrier operations, full -time, regular City Carriers generally are assigned to a single delivery route that they service five days per week. These Carriers are scheduled to have Sunday off as well as one other day of the week. A category of full-time Carriers, known as Carrier Technicians. also are scheduled to work five days per week; but instead of servicing the same route each day, they cover the day off- and the route–of five different carriers. The five-day delivery proposal anticipates the reduction of approximately 25,000 full-time City Carrier assignments and $2.2 billion in annual savings in City Carrier operations. The savings are generated primarily by the fact that under a five-day delivery model, regular Carriers assigned to a single route would have Saturday and Sunday off, eliminating the need for the Carrier Technician and Relief Carrier assignments. We plan to transition full-time Carrier Technician assignments into Carrier positions (that cover a single route) that become available through attrition (a significant percentage of our current workforce is eligible for retirement between now and 2014). Under a pilot test we would be unable to carry out this Carrier alignment, and during the test itself, we would have a surplus of Letter Carriers for whom we would have to find productive work within their craft, and if unsuccessful, pay them to perform no work because our contract with the National Association of Letter Carriers guarantees full-time, regular Carriers a 40-hour work week. Under our national proposal for five-day delivery we Intend to preserve the employment of our career City Carriers.
read letter from Postmaster General John Potter submitted to the Postal Regulatory Commission
Nation’s oldest mail carrier retires at 91 in Tennessee
NASHVILLE, Tenn. (AP) — At 91 years old, the country’s oldest mail carrier is finally hanging up his keys after driving more than 1.1 million miles delivering mail in Tennessee.
According to the U.S. Postal Service, rural carrier Mancel Prince will make one more lap of his nearly 100-mile route before he retires on Friday in Decherd.
Georgia Congressman Says Moving Columbus To Macon Will Cause Mail Delivery Delays
Rep. Sandford D. Bishop Jr., D-Ga. , issued the following press release:
July 29 2010
Washington, DC – Congressman Sanford D. Bishop, Jr. (GA-2) today sent a letter to the Chairman of the House Committee on Oversight and Government Reform, Representative Edolphus “Ed” Towns (NY-10), regarding the U.S. Postal Service operations transfer from the Columbus Customer Service Mail Processing Center to the Macon Processing and Distribution Center. In the letter, dated July 28, 2010, Congressman Bishop stated a series of concerns about the transfer and its negative effects on the Columbus area.
“Attempts by the Postal Service to improve productivity and increase efficiency have resulted in new procedures which have severely impacted postal service in the Columbus area,” wrote Congressman Bishop. “Especially impacted is mail originating from Columbus, Georgia and destined for Columbus, Georgia.”
Congressman Bishop expressed his concern that the new system will force mail to be postmarked in Macon, 96 miles away, before it can be sent back to Columbus to be delivered, adding up to three days to delivery schedules. In addition, the transfer was approved May 26, 2010 and the process was to be completed by the first of this month.
“According to conversations with mail employees at the Columbus mail facility, there have been significantly more delays with mail, even though the Postal Service study suggested there would be an improvement in service,” wrote Congressman Bishop.
While a study of mail delivery systems in the Columbus area was conducted, it did not include Fort Benning, which is scheduled, under the BRAC process, to greatly increase in size. This increase in population, combined with the 96+ miles of mail travel distance will only further mail delivery delays.
“It appears that the Macon facility, which now has idle equipment, cannot deliver mail to Columbus in a timely fashion,” added Congressman Bishop
Rep. Chaffetz Introduces Bill Designating 12 Postal Holidays To Reduce USPS Operating Costs
Congressman Jason Chaffetz (R-Utah) issued the following press release:
Washington, DC—Today Congressman Chaffetz introduced HR 5919. This bill would grant USPS Postmaster General the authority to implement up to twelve “postal holidays” per year in order to reduce USPS operating costs. The Postmaster General would select days in which delivered mail volume is historically lower than normal. By reducing the number of delivery days, USPS will be able to achieve savings by reducing work hours.
“USPS is experiencing severe financial pressures due to competition from the Internet, reduced demand due to the recession, and large unfunded liabilities for retiree healthcare,” said Chaffetz. “While my bill will help to reform its dire financial situation, there is no silver bullet that will solve the Postal Service’s financial problems. Postal holidays are one of many steps needed to reform the Postal System. I am also supporting efforts to consolidate postal facilities by replicating the successful BRAC process that was used to close surplus military facilities.”
• In past three years, USPS has lost $12 billion and is expected to lose about $7 billion this year.
• At the end of FY 2009, USPS was $10 billion in debt and is expected to reach its maximum debt limit of $15 billion in 2011.
• USPS Postmaster General John Potter has stated that USPS could lose $238 billion over the next ten years unless significant reforms are implemented.
• The USPS retiree health benefit plan was $52 billion underfunded at the end of fiscal year 2009.
APWU: Arbitrator Denies Union’s Challenge To USPS Two-Tour Initiative
Arbitrator Issues Decision in Dispute Over Two-Tour Initiative
Arbitrator Das denied the union’s grievance challenging the Postal Service’s two-tour initiative. Das accepted the Postal Service’s argument that “Article 3 of the National Agreement grants the Postal Service the authority to unilaterally adopt and implement the … initiatives at issue, without further bargaining with the Union.” He cited language in Article 3 that states the Postal Service “‘shall have the exclusive right’ to ‘assign … employees,’ to ‘maintain the efficiency of the operations entrusted to it’ and to ‘determine the methods, means, and personnel by which such operations are to be conducted.’” Das also cited a 1977 national award in which Arbitrator Garrett stated that the Postal Service isn’t obligated “to engage in ‘collective bargaining’ as to whether or how it should exercise its authority under Article III of the National Agreement.” In addition, he referred to a 1973 national award in which Arbitrator Gamser stated that the right to change tour complements “appear[s] [to be] specifically reserved to Management under Article III of the Agreement as well as dictated in enabling legislation, Section 1001 of the Postal Reorganization Act.” (USPS #Q06C-4Q-C 09051867; 7/27/2010)
Click here for a summary and copy of the decision
USPS Freezes Hiring, Promotions at Headquarters, Areas and Districts
From the National League of Postmasters:
We are in receipt of a July 28, 2010, letter from Postal HQ stating effective immediately, all hiring, promotions and placement of non-bargaining employees at Headquarters, Areas and Districts are suspended until further notice. Selections received by COB 07/30/2010, will be processed by HR Shared Services but the postings have been placed on hold. We are communicating with Headquarters for more information, updates will be provided as they become available.
see National League of Postmasters