House Republicans Pass Pay Cut For Postal, Federal Employees
APWU News Bulletin 14-2012, May 17, 2012
The House of Representatives voted for a 5 percent cut in postal and federal workers’ pay on May 10 by approving an increase in employees’ pension contributions. Republican members of the House provided all 218 votes in favor of the measure, while 183 Democrats and 16 Republicans opposed it.
The 2012 Sequester Replacement Reconciliation Act, (H.R. 5652) introduced by Budget Chairman Paul Ryan (R-WI), would phase-in the five percent employee contribution increases for both the Federal Employees Retirement System (FERS) and the Civil Service Retirement System (CSRS) over five years.
The bill requires FERS employees to contribute 5.8 percent of each paycheck toward the FERS basic annuity portion of their pensions and requires CSRS employees to contribute 12 percent, yet it does not increase employees’ annuities or improve benefits upon retirement. Read more
USPS List of First 48 Facilities to Be Consolidated Summer 2012
“USPS will begin consolidating operations this summer — mostly transferring mail processing operations from smaller to larger facilities. Beginning next week, approximately 5,000 employees will receive notifications related to consolidating and other efficiency-enhancing activities to be conducted this summer.”
USPS List of First 48 Facilities to Be Consolidated Summer 2012
APWU: ‘Modified’ Consolidation Plan Is More of the Same
Union Members Must Fight Back, House Must Act Now
APWU News Bulletin 15-2012, May 17, 2012
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USPS management announced [PDF] on May 17 that it would begin implementing a “modified” consolidation plan immediately, but the “new” plan [PDF] employs the same essential strategy as the old plan: Impose drastic cuts to service and the mail processing network, and eliminate tens of thousands of jobs. The only difference is that the “new” plan will take a little longer to complete.
“The Postal Service’s announcement provides new evidence that union members must contact their U.S. representatives and urge them to address postal reform immediately, using the recently-approved Senate bill as a starting point for discussion,” said APWU President Cliff Guffey. “Slashing the postal network will destroy service, drive away customers, and weaken the USPS,” he said.
“The situation is urgent. We are asking local union leaders to arrange meetings with their U.S. representatives during the Memorial Day recess, which begins May 21,” Guffey said. “We are urging rank-and-file union members to attend as well. It is imperative that as many union members as possible are involved.”
The USPS intends to consolidate 48 plants [PDF] between now and Aug. 31, take a break for the fall mailing season, and consolidate another 92 plants [PDF] beginning in January 2013. During Phase 2, which management expects to complete by the end of 2014, the USPS intends to consolidate an additional 89 plants. The “new” plan would eliminate 229 plants. In February, the Postal Service announced it had approved 223 plants for consolidation, with decisions still pending on six.
“This is essentially the same plan management proposed last fall,” Guffey said. “It will reduce the mail processing network by half.”
The plan is expected to eliminate 28,000 jobs.
The Postal Service also intends to proceed with plans to degrade service standards, with an interim change effective this summer and more drastic reductions in service in 2013.
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“Postal officials seem to be ignoring the wishes of numerous members of Congress who asked the USPS to postpone consolidations until after postal reform legislation is enacted,” the union president said. “And they are proceeding without the benefit of an advisory opinion from the Postal Regulatory Commission, which is required by law.
“Postal managers are also disregarding evidence that was revealed during commission hearings: Reducing service standards will drive away customers.” During the proceedings, the Postal Service admitted that a secret study indicated that revenue losses could virtually wipe out projected savings from consolidations if service standards were reduced.
“We will not stand by while postal managers destroy the USPS,” Guffey said. “We will join with the American people and elected officials to stop them.”
USPS Frequently Asked Questions about Network Consolidation [PDF]
USPS Human Resources Frequently Asked Questions [PDF]
Florida Rural Letter Carrier Convicted of Workers Comp Fraud
TALLAHASSEE, FLORIDA – Former postal employee, Jacquelyn V. Myers, 55, of Tallahassee, Florida, was found guilty by a federal jury yesterday of healthcare fraud and making false statements to obtain workers’ compensation benefits.
Evidence presented at the two-day jury trial established that, while claiming she was physically unable to fulfill her responsibilities as a rural letter carrier with the Postal Service, Myers competed in more than 80 athletic events in Florida and Georgia. Although she claimed that she could only handle “light duty” in her government job, Myers was competing in 5K races, 10K races, triathlons, and marathons, including the Boston Marathon, which she ran in April 2010.
In May 2009, Myers reported that she had suffered a lower back injury during the annual letter carriers’ food drive. As a result, she was relieved of the letter carrying duties for which she had been hired, and placed on “light duty.” Between June and December of 2009, Myers told her treating physicians and physical therapists that her back injury had not improved, and that she was unable to twist and bend at the waist – activities associated with the delivery of mail. Photographs and videotapes taken during the same period show Myers running barefoot on gravel in a cross-country event, and swimming, cycling, and running in a triathlon. Evidence at trial demonstrated that Myers’ race times actually improved over those recorded prior to her reported date of injury.
The defendant faces maximum sentences of five years in prison for false statements and ten years in prison for healthcare fraud. Sentencing has been scheduled for July 25, 2012, at 11:00 a.m., before United States District Judge Robert L. Hinkle.
Pamela C. Marsh, United States Attorney for the Northern District of Florida, praised the work of the United States Postal Service, Office of Inspector General, whose investigation led to the convictions.
The case was prosecuted by Assistant U.S. Attorney Jason Coody.
NAPS Statement on USPS Announcement Regarding EAS VERA
The Postal Service’s announcement that there are no immediate plans to offer incentives or VERA to EAS employees will be received by some as a mixed message. We are aware that some EAS employees have been waiting for some time to take advantage of an incentive. On the other hand, there are other EAS employees who need to have a job, a job where they now work, close to their homes and families.
NAPS has been a leader the in the fight to keep processing facilities and post offices open to serve the American public. In this fight, we have been successful. As a result there will not be massive job losses in our ranks. NAPS believes that what we have accomplished is good for our members and good for our country.
Now that the Postal Service has determined there is no need to keep “landing spots” for impacted EAS employees, NAPS will emphasize the immediate need to fill vacant positions that exist throughout the country. We can no longer function with the number of vacancies we have in operations and these positions need to be filled now.
While we will be working to get vacant positions filled, and our members point to the postmasters who can take advantage of incentives and VERA’s, all must be mindful that there are large numbers of postmasters that may not be able to take advantage of the incentives and will have to make the hard decisions on where they will be able to work after their restructuring.
Had the Postal Service implemented their plans to close half of the processing facilities in the country, there would have been hundreds if not thousands of EAS employees faced with the decision of moving great distances to keep a job. If the Postal Service’s plans were initiated, our veterans would have been RIF’d because of the current rules on closure of competitive areas.
NAPS will continue our efforts to minimize the impact of the Postal Service’s consolidation plans on our members now and in the future. We will continue to do everything in our power to protect the interests of our members.
Sen. Carper Reacts to PMG’s Announcement on Further Cost-Cutting Measures
WASHINGTON – Today, Sen. Tom Carper (D-Del.), chairman of the subcommittee that oversees the U.S. Postal Service and co-author of the 21st Century Postal Service Act, released the following statement reacting to the Postmaster General’s announcement that the Postal Service would begin closing select mail processing centers in an effort to save approximately $1.2 billion annually:
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“Today’s announcement comes a week after the Postal Service announced that it lost a staggering $3.2 billion in the second quarter of Fiscal Year 2012. In fact, the Postal Service is hemorrhaging money at a rate of at least $25 million a day and is on track to lose far more over the course of this fiscal year. Given these dire circumstances it shouldn’t come as a surprise that the Postmaster General is moving forward to reduce costs with the limited tools at his disposal, but the reality is that efforts of this scale are not enough to fundamentally fix the Postal Service’s financial problems.
“For example, today’s proposal does not address the Postal Service’s two upcoming payments of $5.5 billion for its future retiree healthcare fund, its past overpayments of $11 billion into the Federal Employee Retirement System, or the need to significantly downsize the postal workforce. Only comprehensive, long-term reform of the Postal Service can address these and other serious issues facing this American institution, and that reform can only come from Congress. The Senate has recognized that need and last month passed a comprehensive, bipartisan bill that would modernize the Postal Service, allowing it to right-size and become competitive in the 21st Century. Now it’s up to the House to pass a bill. In the three weeks since the Senate acted, the Postal Service has lost over $500,000,000 – already wiping out nearly half of the savings today’s plan would achieve annually. Clearly, the Postal Service can’t afford to wait any longer for Congress to pass a comprehensive plan. I hope that my colleagues in the House will recognize the urgency of this situation and announce when they intend to act to save the Postal Service.”
USPS Moves Ahead with Modified Network Consolidation Plan
9-Month Implementation; $1.2 Billion in Cost Reductions
WASHINGTON — The U.S. Postal Service today announced plans to move ahead with a modified plan to consolidate its network of 461 mail processing locations in phases. The first phase of activities will result in up to 140 consolidations through February of 2013. Unless the circumstances of the Postal Service change in the interim, a second and final phase of 89 consolidations is currently scheduled to begin in February of 2014.
“We revised our network consolidation timeline to provide a longer planning schedule for our customers, employees and other stakeholders, and to enable a more methodical and measured implementation,” said Patrick R. Donahoe, Postmaster General and Chief Executive Officer of the Postal Service.
“We simply do not have the mail volumes to justify the size and capacity of our current mail processing network. To return to long-term profitability and financial stability while keeping mail affordable, we must match our network to the anticipated workload,” said Donahoe. “Our current plan meets our cost reduction goals, ensures seamless and excellent service performance throughout the implementation period, and provides adequate time for our customers to adapt to our network changes.” Read more
USPS Plans to consolidate 140 facilities in first phase
From USPS News Link:
Modified network consolidation plan
Nine-month implementation announced
USPS is moving ahead with a modified, phased plan to consolidate its network of 461 mail processing locations.
The first phase of activities will result in up to 140 consolidations through February of 2013. Unless the Postal Service’s circumstances change, a second and final phase of 89 consolidations currently is scheduled to begin in February 2014.
“We revised our network consolidation timeline to provide a longer planning schedule for our customers, employees and other stakeholders, and to enable a more methodical and measured implementation,” said PMG Pat Donahoe.
Donahoe said the Postal Service must match its network with its anticipated workload to return to long-term financial stability. “We simply do not have the mail volumes to justify the size and capacity of our current mail processing network,” he said. “This modified plan meets our cost reduction goals, ensures seamless and excellent service performance throughout the implementation period and provides adequate time for our customers to adapt to our network changes.”
USPS will begin consolidating operations this summer — mostly transferring mail processing operations from smaller to larger facilities. Beginning next week, approximately 5,000 employees will receive notifications related to consolidating and other efficiency-enhancing activities to be conducted this summer.
Due to the volume of high-priority mail expected during the election and holiday mailing seasons, there will be no consolidation activities from September through December, 2012. “We will be conducting consolidation activities this summer at only 48 locations,” said Chief Operating Officer Megan Brennan. “As a result, nearly all consolidating activities in 2012 will occur in August and then resume again the early part of next year.”
These consolidating activities will reduce thsummer — mostly transferring mail processing operations from smaller to larger facilities. Beginning next week, approximately 5,000 employees will receive notifications related to consolidating and other efficiency-enhancing activities to be conducted this summer.
Due to the volume of high-priority mail expected during the election and holiday mailing seasons, there will be no consolidation activities from September through December, 2012. “We will be conducting consolidation activities this summer at only 48 locations,” said Chief Operating Officer Megan Brennan. “As a result, nearly all consolidating activities in 2012 will occur in August and then resume again the early part of next year.”
These consolidating activities will reduce the size of the USPS workforce by approximately 13,000 employees and when fully implemented, will generate cost reductions of approximately $1.2 billion annually.
“The Postal Service will communicate with our customers and employees about these changes in great detail,” said Brennan. “We’ll work closely with our customers to make sure there are no surprises as we move forward.”
The PMG is featured in a video explaining in further detail the network consolidation plan. The list of mail processing locations to be consolidated by February 2013 will be posted at approximately 3 p.m. Eastern Daylight Time on the Our Future Network website.
Service standards
USPS soon will issue a new regulation to modify its existing Service Standard for overnight delivery. A Final Rule will be published in the Federal Registerthat would initially shrink the geographic reach of overnight service to local areas and enable consolidation activity in 2013. The new rule would further tighten the overnight delivery standard in 2014 and enable more consolidation, unless the Postal Service’s circumstances change.
Brennan said USPS is essentially preserving overnight delivery for First-Class Mail through the end of 2013, adding USPS is “collapsing the distance that we can provide overnight service to the distribution area served by a particular mail processing facility.” She said under the new standard, approximately 80 percent of First-Class Mail still will be delivered overnight.
Unless its circumstances change, USPS expects to pursue consolidation activities for an additional 89 mail processing locations beginning in 2014. These consolidations would be based on long-term service standards that would significantly revise mail-entry times for customers seeking overnight delivery.
“Given that the Postal Service currently is projecting a $14 billion net loss in fiscal year 2012 and continuing annual losses of this magnitude, we simply cannot justify maintaining our current mail processing footprint,” said Donahoe.
When fully implemented in late 2014, the Postal Service expects its network consolidations will generate approximately $2.1 billion in annual cost reductions and lead to total workforce reductions of up to 28,000 employees.
Retirement incentive
USPS is working with its unions on an employee retirement incentive, although no final decision has been made. “The Postal Service has reduced the size of its workforce by 244,000 career employees since 2000 without resorting to layoffs,” said Brennan. “We are a responsible employer and we will work with our employees to ensure a smooth transition to a much leaner organization.”
USPS Network Webinar Presentation 5-17-2012
USPS Release POStPlan FAQs
USPS has released Frequently asked Questions (FAQS) for HR Related POStPlan and POStPlan Questions.
USPS Postplan FAQ 05.15.12 (1)
Here is the second POStplan FAQ
USPS Postplan FAQ Internal HR 05.15.12
USPS Announces ‘Modified Consolidation Plan’; Implementation to Begin This Summer, No Specifics Provided
The USPS notified the APWU [PDF] today, May 16, that it has developed a modified network consolidation plan and, “Now that the moratorium has expired, consolidation activities will begin this summer.” However, postal managers did not provide the union with a list of which facilities would be affected and when. The information will be made available to the union on May 17, in advance of the public release, the letter says.
The USPS letter, which was faxed to the union at approximately 3 p.m., says that postal managers will begin giving “stand-up talks” to employees on Tour 3 on May 16. Copies of the service talks [PDF] were provided.
APWU President Cliff Guffey said, “The Postal Service’s actions are the best evidence there is that union members must contact their U.S. representatives and urge them to address postal reform immediately, using the recently-approved Senate bill as a starting point for discussion.”
Fall Break, Service Changes
There will be a break in consolidation activities from September through December for the election and holiday mailing seasons, the letter says. Following the break, the first phase of consolidations will resume in January 2013. Phase two will be completed by the end of 2014.
The letter says that a new, interim regulation to modify existing Service Standards for overnight delivery will be introduced that “will shrink the geographic reach of overnight service to local areas.
“This new interim Service Standard will enable consolidating activity in 2013, and will be replaced with a permanent Service Standard for overnight delivery in 2014.”
The stand-up talks say that “Actions taken will comply with collective bargaining agreements, Postal Service regulations and policies, and other applicable law.” It also says, “The Postal Service is working with its unions regarding an employee incentive offer and will announce details when final decisions are made,” but the USPS and APWU have not been negotiating about incentives, Guffey said.
The talk for employees who interact with customers says, “Some consolidation activities will begin this summer, but there will be no facilities closures this summer.” The other talks do not include this language, nor does the letter to the APWU. (In fact, the stand-up talks for other employees refer to “closing facility.”)
“The Postal Service’s plans seem to be in constant flux,” Guffey said. “I hope members of Congress are paying attention. They must act quickly to prevent a severe degradation of service and massive cutbacks in the mail processing network.”