Postal News and Information
Lower volume customers would receive a “Dear John” letter while higher volume customers would get the message delivered in person by the sales team accompanied by something along the lines of “we’d love to keep your business, but unfortunately not at current margins. We think this proposed pricing is a win/win and still offers lower-than-market pricing and value.”
full story via Big Fat Marketing Blog
The U.S. Postal Service has an “agreement with AT&T Wireless to provide discounted wireless phone service, phones, and accessories to postal employees.” However, whenever Postal Employees order products online at AT & T’s website, the items are shipped via FedEx or UPS. An AT & T representative explained that shipping costs are cheaper using FedEx or UPS.
So let me get this straight, Postal Employees order products from AT & T online and its boosts the shipping volume for its largest competitors? If USPS signs an agreement with a company (which may include shipping) shouldn’t one of the prerequisites be that products are shipped via the U.S. Postal Service?
The USPS also has wireless phone service, phones, and accessories agreements for its employees with Verizon Wireless, Sprint Nextel Wireless, T-Mobile Wireless and U.S. Cellular. It will be interesting to find out if any of these companies utilize USPS for shipping its products to Postal Employees.
AT & T Ships Products To Postal Employees Via Fedex, UPS
This report presents the results of our self-initiated audit of the Federal Express (FedEx) transportation agreement. The objectives of our audit were to determine whether selected transportation operations were effective and economical (Project Number 09XG027NL000). See Appendix A for additional information about this audit.
On August 2, 2006, the U.S. Postal Service signed a new 7-year agreement with FedEx. FedEx transports time sensitive mail for the Postal Service, including Express Mail®, Priority Mail®, and First-Class Mail® (FCM). FedEx transportation is usually more expensive than commercial air carrier or surface transportation, and Postal Service policy requires transportation managers to balance service and cost in determining the best transportation mode. In addition, the Postal Service uses Terminal Handling Services (THS) contractors to prepare and load mail into containers for transport on FedEx planes. The containers include both bypass and mixed containers.
Bypass containers hold mail bound for the same destination airport and move through or “bypass” the sorting operations at the FedEx Memphis hub at no additional cost to the Postal Service. Mixed containers hold mail bound for various destination airports and must be sorted at the Memphis hub onto departing planes. The Postal Service is required to pay FedEx for sorting mail at the Memphis hub.
Conclusion
It was more effective and economical in some cases for the Capital Metro, Eastern,Great Lakes, and Northeast Areas to use ground transportation and domestic air carriers as well as to sort mail at Postal Service plants than to use FedEx to perform these functions.1 Because the areas used FedEx, the Postal Service incurred about $35.3 million in unnecessary costs. If these areas implement our recommended changes, we estimate the Postal Service could save $170.6 million over a 10-year period.
Transporting Surface Mail on FedEx
We concluded that in some cases using ground transportation was more advantageous than using FedEx. By flying surface mail on FedEx instead of using cheaper ground transportation, the Postal Service spent about $32.1 million more than necessary during fiscal years (FYs) 2007 and 2008. This occurred because plant employees did not properly segregate surface mail classes from FCM and Priority Mail. By using ground transportation, the Postal Service could lower overall FedEx lift requirements and save about $138.3 million over 10 years. See Appendix B for our detailed analysis of this topic.
Mixed Versus Bypass Air Containers
Finally, it was more advantageous in some cases for the Postal Service to sort mail than use FedEx to do it. During the period May 1, 2008, through April 30, 2009, the Capital Metro, Eastern, Great Lakes, and Northeast Areas unnecessarily spent about $1.5 million to pay FedEx to sort mail because processing plants did not separate and distribute it in available bypass containers.3 If these areas properly sort and distribute this mail, the Postal Service could avoid about $14.9 million in unnecessary costs over 10 years. See Appendix B for our detailed analysis of this topic.
FedEx News
Press Release
FedEx SmartPost Introduces Returns Service
Collaboration with U.S. Postal Service Will Provide Millions of Access Points for Customers Returning Packages
September 10, 2009
FedEx SmartPost announced today that it is introducing a new and convenient way for consumers to return items back to a retailer using the U.S. Postal Service for package pickup. Consumers will gain the convenience of Postal Service access points for a return pickup ” collection boxes, Post Offices, and Free Package Pickup from home or business addresses.
Launching in time for the busy holiday shopping and shipping season, FedEx SmartPost Returns Service, utilizing the Postal Service’s Parcel Return Service, will provide retailers and their customers an easy solution for returning merchandise. Retailers will include a prepaid label in the original shipment along with return instructions. Initially, the service will be available for shippers with high volumes of returns.
After packages are picked up, they will be consolidated into larger shipments at local Post Offices and picked up by FedEx for shipment to the original retailer.
The returns option is an expansion of the existing FedEx SmartPost cost-effective offering that utilizes the Postal Service for final-mile delivery of low-weight packages to residences.
“FedEx SmartPost has successfully created and operated an economical delivery option for the shipment of low-weight packages from catalogers, e-tailers and others to residences across the United States,” said Ward B. Strang, president of FedEx SmartPost. “Knowing that returns are an expected part of business, we wanted to create an option that is easy for the consumer and cost-effective for the retailer.”
The returns service will continue to maximize the advantages of both the Postal Service delivery network with its daily reach to every household in the country and the efficiency of the FedEx SmartPost package sortation and transportation network.
“Our presence at every household and business provides customers and merchants with the most convenient pickup and delivery of their packages,” says Jim Cochrane, vice president, USPS Ground Shipping. “Leveraging the strengths of both companies provides consumers with unparalleled convenience in the marketplace.”
The USPS alliance with FedEx to provide Global Express Guaranteed (GXG) service has been extended for a five-year term.
The renewed GXG agreement — under which the two companies will collaborate to operate the Postal Service’s premier, date-certain international delivery service to more than 190 countries and territories — continues an alliance that began in 2004. Since the alliance was formed, GXG volume has almost doubled.
“The Postal Service is pleased to renew this important agreement with FedEx,” said Pranab Shah, USPS vice president and managing director, Global Business. “We intend to build on the accomplishments of the initial agreement, enhancing GXG’s world-class service reliability by using the resources of both organizations to provide quality and value for our customers.”
GXG is available at thousands of participating postal retail locations and through Click-N-Ship online at www.usps.com/clicknship.
source: USPS
The Postal Service first entered into a contract with FedEx to provide air transportation in 2001 for $6.3 billion. On Aug. 2, 2006, the USPS announced that it had ‘truncated the original contract and signed a new seven-year agreement that included an “immediate price reduction in all contract categories.” The revised contract allowed the Postal Service to continue outsourcing Terminal Handling Services (THS), which sort and prepare mail for FedEx.”
Air Networks – Federal Express Transportation Agreement
OIG audited Three of Nine USPS Areas (Southwest, Pacific and Western) to determine whether selected transportation operations were effective and economical. the Southwest was the most recent USPS Area audited.
The OIG found that USPS incurred over $50 million in unnecessary costs by the use of “expensive FedEx transportation to move mail that could have been moved on low-priced surface transportation or on less costly passenger airlines. The OIG also concluded that USPS could save at least $267 million over a 10-year period if management used “ground transportation and domestic air carriers, and to sort mail at U.S. Postal Service plants in some cases, than to use FedEx to perform these functions.” Of course these figures could increase if OIG audits the remaining six USPS areas (Eastern,Great Lakes, New York Metro,Northeast, Southeast and Capital Metro) .
Here’s an overview of the costs on the three USPS areas:
Southwest (PDF) – $9 million in unnecessary costs, save $44.3 million over 10-year period =$53.3 (recent audit)
Pacific (PDF) – $17.8 in unnecessary costs, save $45 million over 10-year period = $62.8 million
Western - $23.7 in unnecessary costs, save $117.6 million over 10-year period = $141.3 million
Potential McCain VP Pick Fred Smith: Bad For America, Bad For Workers
WASHINGTON, DC July 30, 2008 – The following is a statement from Change to Win Chair Anna Burger regarding recent speculation that union-busting FedEx CEO Fred Smith is on presumptive Republican presidential nominee John McCain’s short list for vice-presidential picks:
“Recent reports that FedEx CEO Fred Smith is being considered by John McCain as a potential vice-presidential pick are beyond disturbing. As a well-known lifelong union buster, Smith has a disgraceful record of stripping workers of their most basic rights to organize and fight for a living wage. It is disheartening, although not surprising, that John McCain would consider picking such a notorious enemy of hard working men and women to be his running mate.
“In the 35 years that Fred Smith has been the CEO of FedEx, he has repeatedly fought against workers joining together to have a voice on the job, openly stating that he ‘doesn’t intend to recognize any unions at Federal Express.’ Less than 2% of the 200,000 American workers at FedEx are in a union. In contrast, UPS unionized workers make nearly 30 percent more than they non-union counterparts at FedEx. Despite organizing efforts, FedEx has filed appeal after appeal to deny their workers the right to bargain collectively, and has sought national legislation to thwart union organizing.
“Americans have already suffered through seven years of a White House that places corporate interests before the interests of America’s working families and we’ve seen the results – millions of homeowners facing foreclosure, gas prices at record levels, and skyrocketing health care costs. Workers cannot afford another lobbyist-dominated administration. A vice-president Fred Smith would be bad for America, and bad for workers. Working families need leadership in the White House that will help them reclaim the American Dream, not a third Bush term.”
About Change to Win
Seven unions and six million workers united in Change to Win to build a new movement of working people equipped to meet the challenges of the global economy and restore the American Dream in the 21st century: a paycheck that can support a family, affordable health care, a secure retirement and dignity on the job. The seven partner unions are: International Brotherhood of Teamsters, Laborers’ International Union of North America, Service Employees International Union, UNITE HERE, United Brotherhood of Carpenters and Joiners of America, United Farm Workers of America, and United Food and Commercial Workers International Union.
SOURCE Change to Win
NALC Presdient William Young released the following message:
My thanks to all of you who responded to my call over the weekend to contact Senators Bill Nelson, Ben Nelson, Mark Pyror and Blanche Lincoln. At present, Senator Harkin’s amendment to the Labor-HHS appropriations bill that would make it easier for FedEx workers to organize a union remains in the draft Labor-HHS appropriations bill. A related provision will be included House appropriations legislation as well. We are now well-positioned to win this important battle for a stronger middle class and a level playing field for the Postal Service in the express delivery business.
Earlier this week, we activated the state association’s legislative phone tree to request activists in your states to contact Senators Inouye, Stevens and Cochran regarding Senator Harkin’s amendment to the Labor-HHS appropriations bill that would make it easier for FedEx workers to organize a union. My thanks to all of you who responded.
It is not known at this time when the appropriations legislation will be taken up on either side of the Capitol. Other spending disputes between Congress and the White House (on the Iraq war and domestic spending) have stalled consideration of the legislation for now. If these disputes cannot be resolved, Congress may forgo the appropriations process altogether and enact a continuing resolution to keep the government running through the rest of the year. In any event, I will keep you informed.
Please suspend calling the Senators’ offices until I contact you again. Thank you again for your activism and your commitment to improving the lives of all working Americans.
In Solidarity,
William H. Young
President
From NALC President William Young:
In last year’s postal reform bill, we secured our collective bargaining rights. The ability to form a union and to negotiate collectively ensures workplace fairness and a decent standard of living. Every American worker should have that ability. It is especially important to letter carriers that workers from competing delivery companies have that ability – if they work for low wages and receive few benefits, our position at the bargaining table is damaged.
Unfortunately, tens of thousands of Federal Express workers are effectively denied the right to organize a union because of a loophole in the law that permits FedEx to classify its delivery workers as “airline employees,” even though they never go close to an airport. As such, they are covered by the Railway Labor Act (RLA), which makes organizing a union almost impossible – you have to win a national ballot instead of building a union location by location, as permitted by the National Labor Relations Act (NRLA). Workers at the Postal Service, UPS and other delivery companies are covered by the NRLA.
But we can do something about this injustice today. Sen. Tom Harkin, who has led the battle against contracting out our jobs, has introduced an amendment to the pending Labor-HHS appropriation bill to require that all express delivery workers who do not work at or near airports be covered by the NLRA, not the RLA. This weekend the Senate is working on that appropriations bill. Continue reading ‘NALC’s Young Urges Support For Harkin Amendment to Labor-HHS Appropriations Bill’ »