Federal Daily News

Sweeping new USPS proposals draw union ire

Unions say the U.S. Postal Service has sent congressional lawmakers proposals to move USPS employees out of federal health and benefits plans, and pave the way for the layoff of thousands of employees.

Employee groups said one of two white papers USPS sent lawmakers asks Congress to allow the Postal Service to create its own health plan outside the Federal Employees Health Benefits Program — and to let the agency create its own pension plan separate from the Federal Employees Retirement System and Civil Service Retirement System. The other asks Congress to void the layoff protection provisions of various postal labor contracts.

According to a report in The Washington Post, which had obtained copies of the documents, USPS said it needed to bypass the layoff provisions because it must cut back its workforce by 120,000 career slots by 2015. That number is above an expected reduction of 100,000 employees through attrition over the period, the paper said.

“We believe both programs can be administered more cost effectively than the current federal plans we now participate in,” USPS said in a “mandatory standup talk” to employees. “We also believe we can best protect our employees’ and retirees’ interests by managing these funds ourselves. This will help our financial position, and increase the Postal Service’s stability.”

Fredric Rolando, president of the National Association of Letter Carriers, said that although the stand-up talk claimed postal unions had been briefed on the proposals, “the reality is quite different.”

“The USPS developed their plans without any discussion or negotiation with NALC or any of the other unions,” Rolando said. “Not surprisingly, the health and pension proposals would dramatically cut employee benefits below those earned by other federal employees. Let me be clear: We would never agree to any benefit plan unilaterally designed by postal management.”

NALC’s contract negotiations with USPS formally begin on Aug. 18. Rolando said the new proposals “constitute a transparent attempt to gut our benefits and reduce our bargaining rights without negotiation.”

Other unions were equally firm in their opposition.

“The APWU will vehemently oppose any attempt to destroy the collective bargaining rights of postal employees or tamper with our recently-negotiated contract,” said American Postal Workers Union President Cliff Guffey of the proposals. “Crushing postal workers and slashing service will not solve the Postal Service’s financial crisis.”



 

Reader comments

Thu, Aug 18, 2011

Retired 44 The Postal Service says they want to withdraw all existing 480,000 annuitants and 570,000 active employees from the Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) plans and place them in the proposed new Postal Service retirement program. The same as with the health benefits. They are saying they could save money that way. Very Scary if you're retired with not a lot of options for dealing with the kind of changes the USPS may make to save money from your retirement and health benefits.

Wed, Aug 17, 2011 Kathy

I worked for the Post Office for more than 20 years. As I watched over the years I saw: endless collection of data that they did nothing with or didn't know how to use; incompetent management; ineffective management policies; poor use of resources; abusive management styles. Post Office hides behind 'privacy of the mail' in order to lie, stonewall, or just avoid true oversight that might actually help save this organization.

Mon, Aug 15, 2011 Retired 44

I retired from the United States Postal Service in 2008. Office of Personnel Management (OPM) currently manages my annuity along with my FEHBP medical insurance. If the Postal Service is successful in creating its own health plan outside the Federal Employees Health Benefits Program — and to let the agency create its own pension plan separate from the Federal Employees Retirement System and Civil Service Retirement System, will this action affect my annuity and health insurance coverage as a retiree?

Fri, Aug 12, 2011

Correct me if I'm wrong, but did not the ads ptoduced by the USPS unions state that Postal Employees are not Federal Employees, but are included in the retirement system. Why do USPS employees want it both ways? Were Federal employee when we want the benefits, but were're not when they want better bargaining rights.

Fri, Aug 12, 2011 Diann Cullen

Maybe the USPS should consider raising the cost of bulk mailing. The majority of my mail is junk mail with less than $.44 postage. A $.10 increase in junk mail postage could raise millions of dollars in income over the course of a year.

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Your Name:(optional)
Your Email:(optional)
Your Location:(optional)
Comment:
Please type the letters/numbers you see above