USPS To Conduct Two-Part Survey Of Employees and Customers
From the National Association Of Postmasters of the United States (NAPUS)
President Bob Rapoza received on July 20, 2010 a notice from the Postal Service that they will conduct a two-part survey of the employees and customers. The survey is intended to gain insight into people’s perception of the Postal Service brand and how the organization has impacted them. The Postal Service will solicit input from two different groups of 500 randomly selected Postmasters. Employee participation is voluntary. The research will be conducted through two surveys: The first will begin approximately July 26 and is expected to conclude by August 6. The second will begin approximately September 20 and is expected to conclude by October 1.
Senate-Passed Health Bill Safeguards FEHBP Risk-Pool, But Taxes Premiums
eNAPUS Legislative & Political Bulletin
At 7:00 AM on Christmas Eve, the U.S. Senate sent to a yet-to-be-named House-Senate Conference Committee legislation (H.R. 3590) to revamp the nation’s medical marketplace. The Conference Committee will attempt to resolve the differences between the House and Senate-passed bills. The Senate passed its version on a 60-39 party-line vote; Senator Jim Bunning (R-KY) did not vote.
At the outset, Congress and the Administration sketched a plan to provide health insurance to the uninsured, make health care more affordable, and improve its quality and accessibility. After running through the Saturday Night Live Bass-O-Matic (2009 version), it’s unclear how close to or far from the mark the lawmakers fell. It is obvious, however, that the debate over health care reform is far from over. It will continue to be highly charged and will pull at the seam holding the House Democratic Caucus together. For its part, NAPUS focused its legislative attention on two key elements that may directly affect Postmasters: the integrity of the Federal Employees Health Benefit Program (FEHPB), and shielding FEHBP participants from the impact of an excise tax on certain health plans.
As has been reported in previous eNAPUS Bulletins and Postmasters Gazettes, the Senate has been toying with the idea of opening up the FEHBP to the non-Federal population, as proposed by Sen. Ron Wyden (D-OR); or forcing FEHBP participants into state-administered insurance exchanges, as originally proposed by Sen. Charles Grassley (R-IA). While Postmasters and their allies successfully deflected these proposals, the Senate Leadership suggested that the Office Personnel Management (OPM) contract with two or more national insurance carriers to participate in state-based health insurance exchanges. Our concern was two-fold. First, NAPUS feared that the proposal could result in a merger of the risk-pool for FEHBP and the OPM-contracted plans. This would have resulted in dramatically higher premiums for FEHBP participants. Second, NAPUS was concerned that OPM’s newly-created health insurance contracting authority would divert its limited resources from its core mission of administering the FEHBP on behalf of the federal population. The legislation, as passed by the Senate, responds favorably to NAPUS concerns in this area. Specifically, section 1334(g) of the bill prohibits OPM from allocating “fewer financial or personnel resources to functions of the OPM related to the administration of the FEHBP” and directs the OPM to establish a separate unit to administer its health care reform responsibilities. Moreover, this section requires that participants in the new OPM-contracted plans “be treated as a separate risk pool apart from enrollees in the FEHBP.” Finally, the bill does not require FEHBP plans to participate in the state-based health exchanges. Nevertheless, if this provision were to be included in a final bill it is expected that Blue Cross Blue Shield would elect to participate in the state-exchanges. House Speaker Pelosi has indicated that she supports OPM’s new task.
One of the major points of contention in the soon-to-be-started House-Senate Conference Committee will be the Senate-passed 40% excise tax on high-premium insurance plans. The Congressional Budget Office (CBO) projects that the tax, which begins in Fiscal Year 2013, would raise $149 billion in through Fiscal Year 2019. The excise tax would be levied on the amount that the health insurance premiums exceed a specified threshold – $8,500 for single coverage and $23,000 for family policies. After 2013, the thresholds would be indexed to inflation plus 1 percent. This tax proposal has created a firestorm of protest, particularly from unions, and has created a major political problem for Democrats. One of the defining issues in 2008 elections was taxation of employer-provided health benefits – Democrats, led by Presidential Candidate Obama, campaigned against the levy. (Interestingly, this morning’s Washington Post reported that President Obama accepts the tax.) Besides the political issue of how the campaign promise could impact Democratic turnout in the 2010 Congressional elections, the proposal has a direct bearing on future FEHBP benefits. First, the premium threshold includes the total FEHBP premium (not just the enrollee contribution), vision and dental plan premiums, and contributions to a Flexible Spending Account. This sum of these amounts adds up quickly. Second, the premium threshold is indexed to general inflation, not medical inflation. Additionally, medical inflation, as reflected in FEHBP premium growth, increases much faster than general inflation. Consequently, FEHBP plans will be hit the threshold within a very few years. The result of hitting the mark will force FEHBP plans to reduce benefits, including increasing copayments and deductibles. It is likely that OPM will direct the plans on how to reduce benefits, probably in the form of “Call Letters” to FEHBP carriers, similar to actions taken by the Reagan Administration in the 1980s.
The problem with the excise tax is much more fundamental than its impact upon the active and retired federal workforce. The tax strategy was originally sold as a way to penalize Cadillac health plans (luxury plans), encouraging generous employers to ratchet down excessive benefits. The tax was also a method to raise funds to offset the cost of providing health benefits to the uninsured. However, the tax is not being imposed on the plan’s benefit-value; rather it is levied against the plan’s premium-value. Rule one of insurance: Benefits do not equal premiums – claims reflect premiums. Two plans with identical benefit packages can and will have dramatically different premiums. Plan A has a sick population, it has more claims; the premium will be high. Plan B has a healthy population, it has less claims; the premium will be low. This phenomenon is known as risk-selection. Unlike other plans, FEHBP provides non-discriminatory coverage to all members of the Federal population; it does not cast off retirees. Moreover, there are a significant number of Federal retirees who are not yet Medicare-eligible, and they represent the most expensive population to insure. The net effect of the excise tax is to penalize those health plans that insure an older and sicker population, not those plans that actually provide Cadillac benefits. (If this were the case, the USPS would get nailed for providing such benefits to its PCES employees.)
NAPUS plans to aggressively ensure that the integrity of the FEHBP is protected and to continue to oppose a regressive health care excise tax, which penalizes comprehensive – not excessive – health plans that provide health protection to NAPUS members.
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USPS To Close 65 Stamp Distribution Offices
And five Accountable Paper Depositories
The Postal Service notified NAPUS President Dale Goff that they will be consolidating its supply chain configuration in order to reduce the total cost of distribution and fulfillment for the Accountable Paper Network. The USPS plans to consolidate and close 65 Stamp Distribution Offices (SDO’s) and the five Accountable Paper Depositories (APD’s). The Postal Service will now consolidate the network into six Stamp Distribution Centers (SDC’s). President Dale Goff voiced NAPUS concerns in a letter to the Postal Service on October 15th which included: “What about emergency orders; time frame for receipt orders; scheduling for ordering; and response to customers when we can’t get the special orders or just normal inventory.” These same issues have been brought forward in previous consultative sessions.
Additional information from PostalReporter:
As reported earlier this year, “The Postal Service purchases and distributes accountable paper1 to its network of over 39,000 retail units across the U.S. for re-sale to the general public. It accomplishes this fulfillment effort through its network of 79 SDOs, two stamp services centers (SSCs), four Accountable Paper Depositories (APDs), and one Stamp Fulfillment Services (SFS) site.”
“The Postal Service has identified opportunities to re-engineer its accountable paper fulfillment network and save between $2 million and $14 million annually by consolidating operations.”
“The SDO is a Postal Service unit other than the parent sectional center facility (SCF) that is, for security reasons, designated to supply postage stamp stock to post offices, stations, branches, and contract stations within its service area.”
Other descriptions:
accountable paper depository — A stamp distribution office (SDO) designated to provide to other SDOs items such as emergency orders, reserve supplies of stamps that cannot be ordered through bulk requisitioning, and philatelic products produced by Postal Service contractors.
stamp distribution network — A system that encompasses an area formerly serviced by multiple stamp distribution offices. It provides all accountable paper stock and defines ordering cycles for each unit (post office, station, branch, or contract station) within its service area regardless of size.
stamp distribution office — A section of a major post office that receives and disburses stamps, stationery, philatelic products, and nonpostal items. It provides stamps and stamp products for all post offices, stations, branches, and contract stations within its service area that are not authorized to order in bulk quantities.
Postmasters Request A "Me Too" On USPS Retirement Incentive
NAPUS Letter sent to Postmaster General Jack Potter
August 25, 2009
Honorable John E. Potter
Postmaster General, Chief Executive Officer
United States Postal Service
475 L’Enfant Plaza, SW Room 10022
Washington, DC 20260-0010
Re: Your Letter of August 25, 2009
Dear Jack:
Earlier today, I was advised that the U.S. Postal Service will extend to employees represented by the American Postal Workers Union and the National Postal Mail Handlers Union a $15,000 retirement incentive. The USPS projects that the offer will reduce operating costs by $500 million.
I urge you to make a similar offer to Postmasters. Equity demands that Postmasters be offered the same retirement incentive as the individuals whom they manage. In fact, at NAPUS’ May consultative with the USPS, I asked for such a Postmaster retirement incentive, but was advised by your representative that there were no funds available for my request. Apparently, funds are now available for clerks and mail handlers. Jack, NAPUS’ request must be revisited in light of to day’s news. Failure to provide Postmasters with a meaningful retirement incentive will further degrade Postmaster morale, and will confirm an incalculable level of disrespect.
At the same time, I am alarmed about the operational implications of the clerk and mail handler retirement incentive. Currently, postal operations are compromised by grave staffing inadequacies. These complement deficiencies yield late-arriving mail at destination Post Offices, and letter carrier scarcity that results in Postmasters performing after-hour delivery functions. Managers cannot safeguard quality customer service, while also filling processing, window and carrier vacancies. Among the situations that confront my members are: too many Postmasters work ten and twelve hour work days, six and seven days a week; and an increasing number are forced to violate the Fair Labor Standards Act. Consequently, the clerk/mail handler retirement incentives, as rolled-out, will intensify staffing problems – not increase operational efficiencies. Please recall the misguided reductions implemented by your predecessor, Marvin Runyon.
In sum, simple fairness requires that Postmasters be extended a financial retirement incentive, and the clerks and mail handler incentive may degrade postal service, rather than improve it.
Sincerely,
O Dale Goff, Jr.
National President
source: President Goff’s Request For Incentive Package, 8/26/09
PMG Briefs Management Associations, Unions On Current Situation Facing USPS
Postmaster General Briefing
July 14, 2009
USPS Headquarters
On Tuesday, July 14, 2009, Louis Atkins, NAPS Executive Vice President, represented NAPS at a briefing with Postmaster General Jack Potter. Also in attendance were the leaders of all of the craft unions and the other two management associations.
Postmaster General Potter briefed the attendees on the current situation facing the Postal Service:
Continued losses in volume are crippling the finances of the Postal Service. Between 2008 through 2010, the Postal Service expects that it could lose as much as 25 – 30 billion pieces of mail volume. Every time the Postal Service loses a billion pieces of mail, the Postal Service looses $ 360 million dollars in revenue at current rates.
Employees need to know that the Postal Service has already taken steps to bring our Health Benefits in line with the rest of the federal government by the agreements that were reached with the unions and management association in the last round of pay agreements by increasing the employee contribution by 1% each year.
There are no plans to have any new equipment deployments in the near future. Right now the Postal Service has enough equipment power to process all of the world’s originating mail in just six hours time.
The “Summer Sale” was explained to the attendees. Mailers who use this opportunity will be required to maintain their expected volume of mailings through October, 2009 to earn a rebate on summer mailings. Customers who simply advance their mailing cycle will not get the discount rebate.
PMG Potter then provided information on the Postal Service’s strategies for FY 2010 and beyond:
• The Postal Service needs to continue to cut costs
• Grow the Business
• Protect Liquidity
Key Strategies are expected to include:
• Continued freeze on hiring
• Additional Tour compressions
• Restructuring Delivery Routes
• Continued integration of Network Distribution Centers
• Flat Sequencing
• Station and Branch consolidations
• Further reductions in administrative positions
The Postal Service continues to stress that relief from the passage of HR 22 alone will not bring the Postal Service the financial relief that it needs and the implementation of five-day delivery is vital to the future solvency of the Postal Service.
Although there has been much discussion of the change to five day delivery, and that the change must have congressional approval and a change to the current law, it now appears that Saturday would be the day that delivery would be eliminated. In a five-day proposal, retail units would remain open on Saturday to provide service to customers.
Post Office boxes and Caller Service would also be maintained under the Postal Service’s plan. Remittance mailers could use Post Office boxes and/or Caller Service to maintain their cash flow.
Under the Postal Service’s proposal, there would be no delivery or collection of mail for city routes, rural routes or contract routes. Express Mail would continue to be delivered as it is currently.
• Mail processing would process originating mail Monday – Friday.
• Mail processing for destinating street addresses processed Monday – Friday.
• Mail processing for destinating PO Boxes and Callers Monday – Saturday.
• Mail processing for destinating remittance mail Monday – Sunday
The Postal Service is also considering options to increase the sale of non-postal items in retail units. As these plans are finalized there will be information provided to employees and the public.
PMG Potter stated that the new Priority Mail initiative with flat rate boxes is performing well and helping us improve our revenue. Employees should tell everyone they know about the benefits of the flat rate boxes’
source: http://haloscan.com/comments/rehema/deljuly1409/#463271
NAPUS “Intervenes” in USPS Facility Consolidation Initiative
On Tuesday, NAPUS “intervened” in the deliberations that Postal Regulatory Commission (PRC) is undertaking relating to the Postal Service’s “Station and Branch Optimization and Consolidation Initiative,” Docket N2009-1. The PRC involvement in this matter stems from its statutory review authority, which predates the Postal Accountability and Enhancement Act.
In May, the Postal Service announced that it will be examining about 3,200 postal stations and branches for possible “closure or curtailment.” Depending on the outcome of the initial review, and the remaining 1,600 stations and branches may be evaluated for closure or curtailment. The USPS goal is to “identify and take advantage of opportunities for increased efficiency.” The USPS goes on to state in its PRC filing that it also seeks to maintain postal accessibility. While the Initiative does not affect small and rural post offices, it will impact the operations of urban and suburban post offices, where multiple branches and stations are subordinate to the post office. For this reason, NAPUS President Goff elected to intervene with the PRC.
The USPS Optimization Initiative resulted from the current economic conditions and the persistent decline in mail volume. On July 2, the USPS requested that the PRC determine whether the nationwide reorganization of postal branches and stations, as described in the initiative, represents “a nationwide change in the nature of postal services.” If the PRC decides affirmatively on this point, the Postal Service is seeking an “advisory opinion” as to whether the change is consistent with existing postal law (i.e., Title 39 of the United States Code).
source: National Association of Postmasters of The US http://www.napus.org/govrelations/E6-11.pdf
House GOP Leadership Proposes Federal Retirement Cuts
From the National Association of Postmasters of the US
Last week, House Republican Leaders John Boehner (R-OH) and Minority Whip Eric Cantor (R-VA) sent President Obama a budget proposal outlining approximately $375 billion in cuts over the next five years. Among the proposed reductions was changing the formula for calculating Civil Service Retirement System (CSRS) annuities from the average of the highest three salaried years to the highest five years. The Congressional Budget Office (CBO) projects that this change would save about $1.2 billion over a five-year period. Another recommendation proposed by the House Republican Leadership is to increase the retirement age of certain members of the federal workforce. Boehner and Cantor recommend no retirement benefits be available for federal employees until they reach age 62. CBO estimates that this proposal would save approximately $1.3 billion over the next five years. These misguided proposals have been considered and rejected, in a bipartisan way, in the past. Moreover, it is highly doubtful that the GOP plan has support either at the White House, or can get any traction on Capitol Hill.
NAPUS is maintaining an eagle-eye on budget shenanigans that may directly or indirectly impact postal employees and retirees. As referenced in the FERS sick leave article, it appears that federal and postal employees were milked, through the creation of the TSP Roth IRA, to help pay for a piece of legislation that has absolutely nothing to do with the federal or postal workforce; and the federal workforce’s financial contribution to the tobacco to bill was greeted with the elimination pro-employee provisions in the bill – first by the Senate Health Committee, and second by Sen. DeMint. In addition, we need to be attentive to H.R. 22, the pending postal relief legislation, to ensure that it does not morph from providing temporary relief to becoming a revenue stream for deficit reduction, or simply a venue for postal cost-cutting.
NAPUS Sounds Off On USPS Suspending Postmasters Convention Leave
Press Release
For Immediate Release
For more information, contact Dale Goff at 703-683-9027
Alexandria, VA, May 22—“The Postal Service’s decision to suspend a convention leave benefit for the remainder of the current Postmaster pay agreement is tantamount to a breach of faith, if not contract, with the nation’s approximately 27,000 Postmasters,” O. Dale Goff Jr., national president of the National Association of Postmasters, charged today.
Goff was reacting to the agency’s abrupt and ill-conceived decision to suspend, effective May 31, Postmasters’ convention leave for the remainder of FY-09 and all of FY-10. Prior to May 31, the Postal Service said it will not attempt to convert to annual leave the approved convention leave some Postmasters already have used this fiscal year.
“Under the existing benefits schedule, Postmasters are entitled to five paid days of leave to attend the annual state or national convention of NAPUS,” Goff explained. “Existing law limits altering such benefits to statutory pay consultations; consequently, the Postal Service has run afoul of the law and NAPUS has so advised Congress,” he added.
Postmaster General Jack Potter personally informed me on May 22 that, basically, Postmaster convention leave is a luxury the Postal Service no longer can afford,” Goff stated. “The PMG further indicated he was not willing to compromise on the matter.”
“No one has a better understanding than Postmasters of the serious economic challenges facing the Postal Service,” Goff said. “But to violate a pay and benefits package by taking away a benefit that serves to help Postmasters better perform their jobs makes absolutely no sense at all.
The Postmasters organizations were informed in mid-May of the proposed decision and recommended convention leave be continued at least through FY-09. In return, they said, there would be no challenge to the proposed suspension for FY-10, with the understanding no additional elements of the current pay package would be addressed prior to the start of the 2011 pay talks.
Labor Relations Vice President Doug Tulino responded for the Postal Service: “I do appreciate your recognition of the difficult economic circumstances that have necessitated this decision and, therefore, we must decline your recommendation.” Tulino alluded to a May 1, 2009, letter in which he referenced “provisions within the law that permit this action under these extraordinary circumstances.”
“Postmasters remain optimistic about the future of the Postal Service,” Goff said. “Nonetheless,” he quickly added, “NAPUS is in discussions with its attorneys regarding the suspension of this valuable Postmaster benefit. This also will be a matter for NAPUS to call to the attention of our many
friends on Capitol Hill.” “That said,” Goff noted, “it’s important to note the USPS considers this action to be, in the agency’s words, a ‘suspension,’ not a cancellation.
That gives us every reason to believe our Postmaster convention leave benefit will be fully reinstated during the next pay talks.”
_________________________
The 111-year-old National Association of Postmasters of the United States represents more than 42,000 of the nation’s active and retired Postmasters, Officers-in-Charge and Postmaster Leave Replacements. The NAPUS National Office is located in Alexandria, VA. National President Dale Goff is the Postmaster of Covington, LA.
USPS Cancels Associate Supervisor Program
According to the National Association of Postmasters ocf the US (NAPUS):
On April 10, 2009 Susan M. LaChance, Vice President Employee Development & Diversity, USPS notified the Managers, Human Resources, Area that the Associate Supervisor Program (ASP) is being canceled because of the current business conditions.
NAPUS: PRC Monitoring USPS Post Office Suspension Process
From eNAPUS Legislative & Political Bulletin (PDF)
PRC Issues Compliance Determination and Keeps Tabs on Postal Suspensions
On Monday, the Postal Regulatory Commission issued its Fiscal Year 2008 Annual Compliance Determination. The Report is required under the Postal Accountability and Enhancement Act (PL 109-435) and reviews the Postal Service’s Annual Compliance Report that details financial and service data.
The Report recognized that the Postal Service is operating under economic duress, experiencing a $2.8 billion loss during FY 2008. The PRC acknowledged four factors that played a role in the USPS dire financial position: the $5.6 billion retiree health care pre-funding health payment; a 9.5 billion piece decline in mail volume from the previous year; a 0.5% decline in postal productivity, the first time in 9 years, despite a reduction of 50 million work- hours; and an increase in operating revenue of a paltry 0.2%, despite a May 2008 postage increase of 2.9%. Ironically, at the same time that the USPS has been laboring under serious fiscal threat, service for measured-mail improved.
Besides general data and performance issues, the PRC addressed two concerns that NAPUS raised during last year’s Universal Service Obligation (USO) hearings and, again, as part of our Reply Comments to the USPS Compliance Report. First, NAPUS took exception to comments filed by the PRC’s “Public Representative” that seemed to endorse the privatization of particular postal services, including retail postal operations. The Compliance Determination notes, “NAPUS argued that the Public Representative’s proposal to sell post offices is counter to current public policy and requirements of the Postal Accountability and Enhancement Act. In fact, NAPUS characterizes the proposal as an effort to privatize the Postal Service.”
NAPUS was particularly pleased that the PRC has taken a significant interest in “temporary emergency” Post Office suspensions. For years, NAPUS Post Office Closing and Consolidations Chairman Betty Eickler has found that the USPS has abused the “temporary emergency” post office suspensions process to circumvent the due process protections afforded to local communities when the USPS elects to commence a post office closing. (In response to a PRC request, on September 22, 2008, PMG Potter sent a letter to the Commission that listed 186 suspensions.) Earlier this year, Betty Eickler communicated this concern to the PRC, and in its response, the PRC indicated it would discuss the matter of temporary suspension with the USPS. Moreover, in the Determination Report, the PRC reference that these “temporary” suspensions have “in many cases been pending for many years.” This phenomenon was supposed to have been addressed by the “official” post office suspension procedure, to which the USPS and the postmaster organization agreed nine years ago. Regrettably, too many times, USPS flouts the process. Consequently, the PRC FY 2008 Annual Compliance Determination includes the following:
The Commission expects that those communities impacted by a suspension and/or closing are allowed to voice their opinions and concerns and that the Postal Service will be responsive to those needs. In future Annual Compliance Reports the Commission requests that the Postal Service provide updates on the disposition of any emergency suspensions as well as post office closings …
PO Closings and Consolidations Chair Eickler is monitoring the situation