Agencies prodded to reduce postage costs
May 20th, 2012 | General Services Administration Postal Service | Posted by Sean Reilly
In the mood for a little irony? Even as Congress is laboring to rescue the U.S. Postal Service from a protracted financial crisis (proposed solutions include pumping billions of dollars into the mail carrier), federal agencies are now under orders to take steps that will reduce their spending on postage.
Among those steps: Using flat-rate boxes and envelopes whenever possible; taking more advantage of USPS discounts; and reducing hard-copy mailings between agencies, according to a recent General Services Administration bulletin to agency heads.
As reasons for the new policy, GSA cites several Obama administration executive orders instructing agencies to reduce waste, cut greenhouse gas emissions and strengthen environmental management. The amount of money at stake is substantial: In fiscal 2011, agencies spent more than $1.2 billion on mail.
The new bulletin doesn’t say by how much agencies should now reduce mailing costs. Last year’s total represents almost a 15 percent drop from 2010, although much of that reduction may be related to the end of the 10-year census. An employee in GSA’s Office of Governmentwide Policy referred questions Wednesday to the agency’s press office. As of Friday, FedLine hadn’t gotten responses from GSA spokeswoman Diane Merriett, but we’ll update this post if we do.
Postal Service launching digital enterprise
May 15th, 2012 | Postal Service | Posted by Sean Reilly
The U.S. Postal Service, an organization inextricably associated with the delivery of lots and lots of paper, is creating a new enterprise focused on the online sphere, according to a memorandum today from Postmaster General Pat Donahoe. The “digital solutions” group is intended “to better explore growth opportunities in the digital space, and to translate those opportunities into new streams of revenue, enhance the value of our current offerings, and improve customer experiences,” Donahoe told Postal Service officers in the memo obtained by Federal Times.
The venture comes as the agency is under pressure from Congress and postal employee unions to explore alternatives to service cutbacks. “We are convinced there is growth potential in this dynamic digital environment,” Donahoe said.
Heading the group will be Paul Vogel, who has been USPS president and chief marketing/sales officer. Vogel, who started with the Postal Service as a clerk and letter carrier in 1969 while working his way through college, later left for consulting work on international business and business strategies, according to his official bio. He returned to the Postal Service two years ago.
“Paul has a great track record of driving successful new initiatives within the Postal Service,” Donahoe wrote. “In addition to his excellent recent service as chief marketing/sales officer, he was instrumental in establishing our transportation partnership with FedEx, he stood up and launched our global business, and he played a vital role in early efforts to realign our operational network.”
The digital solutions group will begin “with a matrixed structure and will grow into a separate business unit over the coming year with the flexibility to explore, pursue and/or create quickly evolving digital technologies,” Donahoe continued. “Paul will be taking us into new waters in a number of ways that should generate a lot of external interest and excitement.”
Replacing Vogel as chief marketing/sales officer will be Coca-Cola executive Nagisa Manabe. At the soft drink giant, Manabe served as vice president of new growth platforms, according to Donahoe’s memo. Before that, she was vice president of marketing for Diageo Guinness USA Inc., part of the company that makes Johnnie Walker whiskey, Smirnoff vodka, and Guinness beer. Manabe “will lead our efforts to frame a new generation of ideas to better promote and grow our organization,” Donahoe said.
Tags: Nagisa Manabe, Pat Donahoe, Paul Vogel, Postal Service
Inspector general: More than one-third of Postal Service workers eligible to retire this year
May 9th, 2012 | Postal Service | Posted by Sean Reilly
The U.S. Postal Service’s inspector general is out with a new overview of employee retirement options. This is a hot topic nowadays, given that USPS leaders have been open about their interest in using early-out incentives as a glide path to a much smaller agency.
One finding: More than 189,000 postal employees (that’s well above one-third of the current career workforce) are eligible to retire in fiscal 2012. That number appears to be a good bit higher than the figure used by postal execs, who generally put the ratio at around one in four. The report also notes that the Postal Service already has the authority to offer early retirements in fiscal 2012, and “may request an extension to” 2013.
The IG also makes no recommendations on how USPS leaders should proceed, but does offer a handy summary of annuity formulas, the mechanics of early retirement options, etc. Definitely worth a look.
In postal standoff, lawmakers mail it in
May 4th, 2012 | Postal Service | Posted by Sean Reilly
Postmaster General Pat Donahoe may be having his difficulties with Congress, but he can take solace in one fact: Lawmakers on both sides of the aisle still use the mail.
Among the correspondence Donahoe received this week: A Wednesday letter from 43 senators pressing him to extend the U.S. Postal Service’s self-imposed freeze on post office and processing plant closings. That moratorium is currently set to expire May 15; the group of mostly Democratic senators wants the Postal Service to hold off on any closures until Congress approves a comprehensive fix for the mail carrier’s problems.
“We are deeply concerned that the closing of these postal facilities prior to postal reform legislation being enacted would be devastating to communities around the country,” they wrote.
A spokeswoman for the lead signer, Sen. Mark Pryor, D-Ark., confirmed that the letter was sent both by email and regular mail.
The next day brought tidings from three Republican senators who want the downsizing to begin pronto. Despite last week’s Senate passage of a postal bill, “we believe it is very unlikely that both the House and Senate will come to agreement on legislation that reforms the postal system any time soon,” the three wrote, “and strongly encourage you to move forward with the cost-saving changes you have previously outlined.”
That letter went out by email, regular mail and fax, according to an aide to Sen. Bob Corker, R-Tenn., who was the lead in that case.
So remember, folks: Whatever your message, all it takes is a stamp.
Tags: Bob Corker, Mark Pryor, Pat Donahoe
Uh-oh, the U.S. Postal Service is doing a little better
May 3rd, 2012 | Postal Service | Posted by Sean Reilly
Financially, the U.S. Postal Service has been performing a bit better than expected lately. Politically, that could be bad news for the mail carrier.
Why? Because USPS leaders have banked on a sense of crisis to rouse Congress to agree to some heavy-duty service cuts. The faintest glimmer of hope may be all it takes to persuade lawmakers to let the Postal Service instead muddle through until after the November elections–if not longer.
“Congress is never going to really do something final until it knows the clock has run out, the money has run out, it’s got no choice,” said Gene Del Polito, president of the Association for Postal Commerce.
That wasn’t quite the message Postmaster General Pat Donahoe conveyed this past weekend in an appearance on the C-Span cable TV show, “Newsmakers.” True, Donahoe hammered home the importance of immediate legislative action to fix the USPS’ crumbling finances. But he acknowledged that revenues are running slightly ahead of projections, while continued cost-cutting is also helping the bottom line. As a result, the Postal Service’s cash-flow situation “is OK through the fall and into probably late next year,” he said.
Yowza! So what’s everyone so worried about?
Of course, that’s assuming the Postal Service skips about $11 billion in legally required payments into a retiree health care fund due by the end of September. But lawmakers will probably be happy to push back those deadlines indefinitely. And even though the Senate last month passed postal overhaul legislation at the (for the Senate) warp speed of two days, the measure got a ice-cold reception from House leaders, who have nonetheless not moved ahead with their own, very different, bill.
Senators are meanwhile intent on dissuading the Postal Service from proceeding with any post office or mail processing plant closures after a self-imposed moratorium expires May 15. On that score, Donahoe didn’t back down, but he also said the 15th was never intended to be a “shutdown date.” “Any changes that we make will be incremental over the course of the summer,” he said. After August, the Postal Service plans on another breather–this one for the elections–until year’s end.
The USPS Board of Governors holds a public meeting tomorrow morning; expect there to be some discussion of what happens next. Surprisingly, the Postal Service’s second-quarter financial results–covering the period from January through March–aren’t on the agenda. Those figures aren’t due out until next Thursday, May 10.
Tags: Pat Donahoe
Proposed federal workers’ comp changes; what’s your take?
May 2nd, 2012 | Postal Service | Posted by Sean Reilly
On Capitol Hill, members of Congress have had plenty to say about alleged abuse of the federal workers’ compensation program. Ricky Cook would like to offer a different view.
“I’m very upset at the perception that everybody who’s on workman’s compensation is abusing it,” Cook, a Federal Aviation Administration employee in the Kansas City, Kansas area, said in a phone interview this week. “That’s just not the case.”
Cook, who had been an air traffic control supervisor, suffered lasting spinal damage in an on-the-job accident in 2007. He was out of work for almost two years. Although the FAA eventually brought him back, his medication disqualified him from returning to his old position, so he’s now in a job paying a lot less and relies on workers’ comp to make up the difference. Which is why he’s concerned about a provision in Senate postal legislation that would eventually cut benefits for people in his situation from 75 percent of pre-injury pay to 50 percent. If that were to happen, Cook said, he might lose his home.
The bill passed the Senate last week; at this point, nothing comparable has gotten through the House. The original rationale for the proposed workers’ comp reductions was to lessen the incentive for feds to stay on the program long past normal retirement age. Some 2,000 U.S. Postal Service recipients are beyond the age of 70, while a half-dozen other federal employees are past the century mark, Sen. Susan Collins, R-Maine, said during the debate on the bill.
Collins has been leading the charge for change. Should the proposed benefit cuts in the bill become law, they would save about $1.2 billion over 10 years, according to her office. Although the legislation would grandfather in retirement-age beneficiaries already on workers’ comp, Cook, 46, is a long way from retirement.
So, there you have two sides. We at Federal Times would love to get other readers’ perspectives, particularly if you are or have been on workers’ comp. Please email me at sreilly@federaltimes.com.
Tags: Federal Aviation Administration, Susan Collins, workers' compensation
Postal Service governing board “disappointed” with Senate bill
April 25th, 2012 | Postal Service | Posted by Sean Reilly
As anyone who follows postal matters knows, the Senate this afternoon approved legislation aimed at putting the U.S. Postal Service back on its feet financially. But the USPS Board of Governors just put out the following statement indicating that it’s anything but happy with the outcome. Here’s the statement in full, following by separate comments from Postmaster General Pat Donahoe:
“The Board, in working with management, has spent the past two years preparing a comprehensive business plan to make the Postal Service viable so it would not become a liability to the American people. This plan was validated by outside experts. We stand behind this plan, and we are convinced it is the right approach.
Unfortunately, action by the Senate today falls far short of the Postal Service’s plan. We are disappointed that the Senate’s bill would not enable the Postal Service to return to financial viability. A strong Postal Service is important to the health of the entire mailing industry and the Postal Service’s ability to finance universal service for the American public.
Given volume losses we have experienced over the past five years along with expected future trends, it is totally inappropriate in these economic times to keep unneeded facilities open. There is simply not enough mail in our system today. It is also inappropriate to delay the implementation of 5-day delivery when the vast majority of the American people support this change. Failure to act on these changes will ensure that the Postal Service’s losses will continue to mount.
We remain hopeful that Congress will ultimately produce legislation that will enable the Postal Service to return to financial viability.”
Now, here’s Donahoe’s statement, which strikes a somewhat more conciliatory note:
“We appreciate the hard work of the Senate in addressing postal issues, and we believe that there are important and valuable provisions contained in the legislation. We would have preferred the Senate allow the Postal Service to move further and faster in addressing its cost reduction goals.
Today the Postal Service incurs a daily loss of $25 million and has a debt of more than $13 billion. Based on our initial analysis of the legislation passed today, losses would continue in both the short and long term. If this bill were to become law, the Postal Service would be back before the Congress within a few years requesting additional legislative reform.
The Postal Service does not seek to be a burden to the American taxpayer, and we believe such an outcome is entirely avoidable. The Postal Service has advanced a comprehensive five-year plan that would enable revenue generation and achieve cost reductions of $20 billion by 2015 ― restoring the Postal Service to long-term profitability.
The plan we have advanced is a fair and responsible approach for our customers, our employees and the communities we serve. We are hopeful that the legislative process will continue and that enacted legislation will put the Postal Service on a sustainable path to the future.”
Tags: Pat Donahoe, Postmaster General, U.S. Postal Service Board of Governors
Senate reaches deal for voting on amendments to postal bill
April 19th, 2012 | Postal Service | Posted by Sean Reilly
Looks like the Senate’s going to be very busy next Tuesday with rapid-fire voting on more than three dozen amendments to S. 1789, the postal overhaul legislation. According to a message this evening from the office of Senate Majority Leader Harry Reid, D-Nev., the amendments pertain to everything from post office closings to unions to compensation for U.S. Postal Service executives.
There’s also one from Sen. Tom Coburn, R-Okla., that would require more reporting by government agencies on conference spending. (Hmm–FedLine can’t imagine what prompted that.) Anyway, for the hard-core postal aficionados out there (and in the interest of open government), here’s the portion of Reid’s email that lists the amendents set for a vote:
“- McCain #2001 (substitute);
- Tester #2056 (modify process for closing facilities);
- Coburn #2060 (government sponsored conferences)**;
- McCain #2033 (Reorganization Commission);
- Wyden-Feinstein #2020 (vote by mail)**;
- Coburn #2058 (access to postal facilities)**;
- McCaskill-Merkley #2031 (rural post offices) ;
- Coburn #2061 (retirement);
- Snowe #2080** (3rd party study closings);
- Udall (NM) #2043 (six day delivery);
- Durbin #2082 (to protect efficient processing facilities)**;
- Akaka #2034, with a modification agreed to by both managers (workers compensation);
-Bennet-Blunt #2047 (protection advocate)**;
- Corker #2083 (frequency of mail delivery) ;
- Mikulski #2003 (Governor certification)**;
- Akaka #2049, ** (managerial organizations);
- Paul #2025 (end mailbox use monopoly);
- Manchin #2079 (extend moratorium on closings);
- Paul #2026 (performance based bonuses)**;
- Bingaman #2076 (state liaisons)**;
- Paul #2027 (capitol complex);
- Cardin #2040 (50 mile limit)**;
- Paul #2028 (alternative methods pilot program);
- Carper #2065 (stamp rate authority);
- Paul #2029 (profitability plan)**;
- Carper #2066 (executive compensation);
- Paul #2039 (prohibit collective bargaining);
- Casey #2042 (delivery time);
- Paul #2038 (first class mail and mailbox use);
- Landrieu #2072 (impact on small businesses)**;
- DeMint #2046 (unions);
- McCaskill #2030 compensation reforms)**;
- Coburn #2059 (close unprofitable facilities);
- Pryor #2036 (SoS re: closing and consolidation)**;
- Rockefeller #2073 (Medicare coordination)**;
- Rockefeller #2074 (health benefits program)**;
- Schumer #2050 (delivery point services);
- Tester #2032 (executive pay)**;
- Warner #2071, with modification to be agreed to by two Managers (OPM retirement implementation plan).
On Tuesday, April 24th at a time to be determined by the Majority Leader, after consultation with the Republican Leader (likely following the 2:15pm vote in relation to S.J.Res.236), the Senate will vote in relation to the amendments in the order listed, with two minutes equally divided in the usual form between the votes. All votes after the first vote will be 10 minutes in duration. The amendments are subject to a 60 affirmative vote threshold. No other amendments are in order to the bill or the substitute. No points of order or motions are in order to any of these amendments, the substitute amendment, or the bill other than budget points of order and the applicable motions to waive.
Upon disposition of the amendments, the substitute amendment, as amended, if amended, will be agreed to. The bill, as amended, will be read a third time and the Senate will proceed to a vote on passage of the bill, as amended. Finally, the vote on passage of the bill is subject to a 60 affirmative vote threshold.
** indicates the amendments we would like to consider by voice vote.”
Senate leader: Seniors “love to get” junk mail
April 19th, 2012 | Postal Service | Posted by Sean Reilly
Politicians are fond of invoking the elderly on behalf of a favored cause, but Senate Majority Leader Harry Reid, D-Nev., took that gambit to a new level yesterday when discussing S. 1789, a bill intended to keep the U.S. Postal Service afloat. Who knew that the only thing connecting Gramps to the rest of us were auto insurance come-ons and grocery store fliers? Here, straight from a transcript in the Congressional Record, is Reid’s take on one reason for saving the Postal Service.
For seniors who cannot leave their
homes, mail carriers deliver lifesaving
medications—an important link to the
outside world. Elderly Americans rely
on the U.S. Postal Service.
I will go home tonight to my home
here in Washington, and there will be
some mail there. A lot of it is what
some people refer to as junk mail, but
for the people who are sending that
mail, it is very important.
And talking about seniors, seniors
love to get junk mail. It is sometimes
their only way of communicating or
feeling they are part of the real world.
Elderly Americans, more than any
other group of people in America, rely
on the U.S. Postal Service.”Reid, by the way, is 71. FedLine’s not sure what to make of that.
Tags: Harry Reid
Arbitration ahead for Postal Service and National Association of Letter Carriers
April 18th, 2012 | Postal Service | Posted by Sean Reilly
Well, that didn’t take long. Less than a month after National Association of Letter Carriers President Fredric Rolando said the union was “committed” to reaching agreement on a new labor contract through mediation, it’s now headed to binding arbitration with the U.S. Postal Service, according to a release posted on a USPS site. The arbitration process will wrap up later this year, the Postal Service said.
A NALC spokesman had no immediate comment this morning.
The news comes three months after impasses were declared in the Postal Service’s negotiations with both the NALC and the National Postal Mail Handlers Union. Although the unions’ previous contracts officially expired in November, the terms remain in effect until new agreements are reached. After an impasse, the next step is normally mediation, followed by arbitration. Talks with the mail handlers union remain in mediation, according to the Postal Service.
Although both USPS and union negotiators are typically tight-lipped about the status of contract talks, there’s no question that the latest round has been exceptionally difficult. The National Rural Letter Carriers’ Association and the Postal Service are already in arbitration. Although the Postal Service clinched a new contract last year with the American Postal Workers Union, the final deal created a two-tier wage system that means new hires will make 10.2 percent less on average.
Tags: American Postal Workers Union, National Association of Letter Carriers, National Postal Mail Handlers Union, National Rural Letter Carriers Association