Highlights of the Issa-Ross Postal Reform Act

WASHINGTON- Today the House Oversight and Government Reform Subcommittee on Federal Workforce, the U.S. Postal Service, and Labor Policy reported out on a 8-5 vote HR 2309, the Issa-Ross Postal Reform Act of 2011, with changes that bring the total mandatory minimum savings for USPS in the bill to $10.7 billion annually. The bill will be heard at a full committee markup before heading to the floor.

The bill was introduced in June by Oversight Committee Chairman Darrell Issa, R-Calif., and Subcommittee Chairman Dennis Ross, R-Fla. The bill is the only postal reform legislation introduced this Congress that would restore the postal service to solvency and prevent a multi-billion dollar taxpayer funded bailout.

“Getting to a profitable situation with the core business is our requirement, and that is all I am dedicated to,” Issa said.

“The status quo for the Postal Service is no longer sustainable and reform is urgently needed,” said Ross, who chaired the markup. “I thank my colleagues for being here today and look forward to working with them to ensure postal services are available to all Americans for the next 200 years.”

The legislation moves forward several cost-cutting structural reforms that would allow the postal service to right-size operations and reduce workforce cost. Seven amendments designed to eliminate reforms in the legislation or change its intent were defeated.

Highlights of the Issa/Ross Postal Reform Act according to Congressman Darrell Issa

  • No Taxpayer Bailouts: plan delivers an efficient, effective Postal Service without the thinly-veiled taxpayer bailout proposed by other bills.
  • Savings through Flexible Delivery: the Postal Reform Act saves an estimated $3 billion a year by giving the Postal Service the option of eliminating Saturday delivery.
  • Pay the Real Delivery Cost: phases out expensive loopholes and special deals that force the Postal Service to actually charge certain customers less than the true cost of delivery.
  • Ending Special Treatment for Political Parties: our plan eliminates the cut-rate prices now benefiting national and state political committees of all stripes.
  • A Team Approach: a team of postal experts will target and eliminate the expensive excess the Postal Service doesn’t need. In just a year, the Commission on Postal Reorganization will focus on redundant post offices – saving at least $1 billion a year. Year two will focus on excess mail processing – saving at least $1 billion per year – and the 30% of management facilities without much to manage.
  • Pitching in for Health & Life Insurance: mandates that postal workers pay at least the same health and life insurance premiums federal workers do.
  • Constant Accountability: when the Postal Service fails to pay its bills for more than 30 days, an independent watchdog is empowered to cut costs much like a bankruptcy judge when corporation can’t pay its bills – this includes addressing expensive labor agreements. And we don’t ask taxpayers to foot the bill: the watchdog can borrow up to $10 billion with postal facilities as collateral.
  • New Revenue: even though the Postal Service is supposed to act like a private business, it can’t make money from selling advertisements. The Issa-Ross Postal Reform Act allows USPS to sell advertising space on vehicles and facilities, as long as the ads respect the Postal Service’s integrity.
  • Fair Pay: right now, the law says “compensation” means only a postal worker’s paycheck. Our plan eliminates this fuzzy math so that compensation means the same thing it does everywhere else: pay and benefits.
  • Rightsize Non-Profit Discounts: today, non-profit organizations enjoy a 40% advertising discount from the Postal Service. The Postal Reform Act gradually reduces this discount by 5% a year until it reaches 10%.

source: Oversight & Government Reform

15 thoughts on “Highlights of the Issa-Ross Postal Reform Act

  1. As soon as Congress passes Term Limits, then they can mess with the US Postal system. That way you won’t see any changes for either institutions.

  2. This week I lost the last shred of faith I may have had in our government. Reading the reporting of Issa/Ross’s Postal destruction plan tore me down. These hypocritical bastards have the right to propose these things while maintaining and increasing their own pay, benefits and pensions, all the while crying to the public that everything is all about “jobs, jobs, jobs”! I also read some of the Republicans comments about returning our prepaid pension funds as “bailouts”. Of course, it’s all about union busting. I believe they want the Postal Service to default so their new commitee can take over and subvert the unions, bringing the death of everything we’ve worked so hard for. He wants to create a level playing field so that our pay and benefits are in line with the rest of the entire private sector, whatever that means. I guess there will be no incentive anymore for a kid flipping MacDonalds fries to look for a better job! What in the hell is this country coming to? Congress and the banks trashed our whole economy and the regular folks like us have been paying for it ever since, and our kids and grandkids will continue to pay, and all Congress can do is turn people against each other by saying if someone makes more money or has a better pension than someone else, they don’t deserve it and takes it away. I’m sick to my stomach!

  3. Maybe congress and the senate should be held to the same reforms, as they see fit to impose on the rest of us. How about they pay for there benefits, and retire after 20 yrs. Be constatly accountable for their actions

  4. Ok i love all your comments. As you know congress has been trying to tear us apart and kill the union. I for one think its crap. If you let the majority of the postal workers go, this country that has already gone down the tubes no thanks to republicans will die. There are thousands of postal workers out there that depend on there jobs to take care of their families. The post office is not asking for a bail out. They just want to get rid of the prefunding which i think is stupid but once again thank u president bush. Why doesn’t congress cut their pay and health care and retirement just like they are asking us to do. Wake up people, even if and when they retire they still make the same amt of money as if they were working and get better benefits they we will ever see. Sound fair to you? So, please support us postal workers as we are taking care of america one letter at a time. And please forgive the post office window clerks. They are short staffed and have to listen to their supervisor so please be patient. If management is looking to move people then maybe they should take that persons place and do the work also instead of standing their with your arms folded. So its not the clerks fault please be patient with them. Thanks for listening

  5. You would not believe the people who still work for the Postal Service or other sectors of the government who will still vote Republican. I use to think Americans were smart, and government employees a big notch above everyone else. But after seeing the dumb idiots at this post office who are against Obama, just because he is black, and willing to vote Republican, which means literally losing their jobs and their way of life, you have to wonder about their intellect. The Republicans are all about money and power…period! They have wanted to get their hands on the Postal Service since 1980 that I know of. They mount an attempt nearly every four years to dismantle the Postal Service, just so they can privatize it and make money for themselves and the rural delivery can be damned. And yet, still….these idiots vote Republican. We as a service will be destroyed if somebody doesn’t wake up right now and see these crooks for what and who they really are. It is all about Greed on their part. Congress has hamstrung us with their stupid rules and regulations, biggest one is can’t keep profits in good years, you have to break even…but yes you are business so act like one, but no you are a govenment agency so follow these restrictions. Such contradictions, filled with stupid rules designed to tie our hands. So here we lie, like a wounded animal, needing some help, looking for a little compassion for all of our work and sacrifices (maybe just an incentive like any other company would offer), but instead the Republicans like a pack of wolves close in the for kill…and still we vote for their money hungry a*sses. Just how stupid can we be?? This is not about politics, this is about survival. Wake up people, demand what is fair, demand repect for the elderly and seniority, uphold the principles of discrimination, in this case age discimination, and most of all hammer the hell out of these congressmen and your senators. Let them know you are going to vote them all out if they don’t put a stop to this maniac. Issa is a multi millionaire, his job is to dismantle the service then retire and buy a piece of the pie for FedEx or UPS…we all know this guy is bought and paid for by them, so he is like a bull running loose in the china shop, we can’t take him head on, but we can let our voice be heard with our senators who can put a stop to his insanity by not ratifying this “Postal Assination Bill” that he and that puppet Ross of Fla has put forth. Do not vote Republican, period! If you do vote Republican do not vote for the incumbant, vote their sorry asses out. Rotate these guys every four years like a term limit, and they will get the message. Contact your Senators now and raise hell and do not vote for the wolves. Best of luck to all. J.

  6. We need all gov’t employees (postal – we are only government when it is convenient for the govt) to vote ISSA out, his name backwords is ASS – I. just saying. We have to stick together and try to get our family to vote against these fools that are trying to take the USPS down. He wants to make USPS employees retire from the top down. He is targeting the disabled employees that have never retired. I agree with this part of hi proposal. But, on the otherhand, he will work until he is 99. Who is going to stop him? With a fat pension and all the money he has stolen through the years.

  7. mr ross and mr issa plain and simple want to destroy the middle class of our nation, force me to retire before i am ready to… i will lose my house… i guess thats ok with the tea party?// be ashamed if you ever voted republican and work for the government or post office. a repulsive bill.

  8. Why would anyone require a company or business to pre-pay benefits for possible employees 75 years into the future? And to pre-pay it in just 10 years? This is like asking a middle class family to pay their 30 year mortgage in just 5 years!

    The USPS has not hired any new career employees off the streets in years. They are merely allowing employees to transfer from other areas. So as far as retiree benefits and health benefits, this is it! They only hire (if needed) transitional, non-career employees who can be let go at any time and have no benefits. The number of career employees is decreasing, not increasing.

    Vicki Oxner
    USPS retiree

  9. The cuts that Issa is asking for – Reorganization will focus on redundant post offices – saving at least $1 billion a year. Year two will focus on excess mail processing – saving at least $1 billion per year – and the 30% of management facilities without much to manage.
    funny, could cut more than this if they just reduce the mandate of paying 5.5 billion a year for pre funding future health care. why is this needed? The postal service is in a hiring freeze and will probaly not hire any more employees and will lose at least 100,000 employees over next two years in retirement. Issa is just trying to bash and do away with the union. I suppose if he get’s his way, and does away with the collective bargaining agreement which was put in place for a trade off of no strike policy. Wonder If Issa plans on cutting the no strike portion of the contract.
    needs to stop the scare tatics of saying there will have to be a bail out by tax payers. Bull shit, It’s simply a republican hate of unions.

  10. why aint you florida members flooding mr.ross district with fliers and pititions and letting the joe public know just what is going on,preasure will break pipes and congressman he’s the weakest link mr issa is a multi-millionaire mr ross is not,and the orlando area if florida can go both ways. so joe instead of jet setting to Vegas next month spend some time in central florida.

  11. Returning severe overfunding for people
    to retire who have not been born yet, is
    not a taxpayer bailout. The post office
    runs on stamp money only, and is a cash
    cow for the govt.

  12. This bill is nothing short of disgusting and the Republican Party should be ashamed of themselves for following the likes of Issa and Ross!

    Joe Paul
    Clerk Craft Director
    APWU of Florida

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