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
Postal unions to take their case to income tax filers Tuesday
April 16th, 2012 | Postal Service Postal Service | Posted by Sean Reilly
Even if fewer people mail their income tax returns in this era of electronic everything, plenty of last-minute filers will likely be showing up at post offices today to meet the IRS’ deadline. Two unions plan to use the opportunity to press their case against proposed U.S. Postal Service cutbacks.
The American Postal Workers Union and the National Postal Mail Handlers Union are teaming up to do “informational leafleting” at numerous post offices around the country, particularly those that draw media coverage because they stay open late.
“We’re trying to just educate the public as to what would happen to the Postal Service if Congress doesn’t act,” NPMHU President John Hegarty said in a phone interview Monday.
In an apparent coincidence, the Senate will again try today to take up a bill that—as originally proposed—would let the Postal Service tap surplus pension contributions to pay for buyouts and early retirement incentives for up to 100,000 USPS employees. A procedural vote to move forward is set for 11:10 a.m. Washington time. Sen. Joe Lieberman, I-Conn., and the bill’s other sponsors will need 60 votes to prevail; a first try last month garnered only 51. If they prevail in this round, they are expected to proceed with an amended bill that could be quite different from the original measure.
The Postal Service, which has lost almost $14 billion in the last two years, says it has to close post offices, slash the number of mail processing plants and end most Saturday delivery under a long-term plan to regain profitability. But postal unions say the cutbacks would “inflict long-term damage to the nation’s mail system,” according to a copy of the leaflet to be distributed tomorrow.
[Post updated at 9:14 a.m. Tuesday to note Senate vote this morning.]]
Tags: American Postal Workers Union, John Hegarty, National Postal Mail Handlers Union
Now in progress: a push to keep (contract) post offices open
March 31st, 2012 | Postal Service | Posted by Sean Reilly
It’s no secret that the U.S. Postal Service is looking at shutting more than 3,200 post offices as part of a major downsizing initiative. Less known is that 20 privately run post offices are also on the chopping block, but in this case because of a labor agreement with the American Postal Workers Union.
Under its latest contract with the APWU signed last year, the Postal Service agreed to close 20 “contract postal units” (CPUs) or else insource the work “as soon as practicable.” Those units are in New York, Texas, Florida,Puerto Rico and several other states. Given that there are more than 3,000 contract postal units nationwide, it’s not clear why these were singled out, but several Republican members of Congress aren’t happy about it.
The 20 CPUs in question provide “handsome levels of revenue” to the Postal Service “in a more cost-effective manner than traditional post office facilities,” Reps. Gus Bilirakis and Steve Southerland, both of Florida, and John Carter and Ted Poe of Texas wrote in a letter earlier this month to Postmaster General Patrick Donahoe and APWU President Cliff Guffey. Besides employing more than two dozen people, the units generated an estimated $20 million in revenue last year and are “highly-trafficked businesses that provide their surrounding areas with unparalleled levels of customer service,” they added. The four lawmakers concluded by asking for a review and reconsideration of the decision to close them.
It should come as no surprise that the APWU would prefer to have the work done in-house by career postal workers. It’s not clear, though, whether this is a first-ever arrangement or has some precedent in previous contracts. FedLine’s attempts to get comment from the Postal Service and the APWU were unsuccessful.
Tags: American Postal Workers Union, Cliff Guffey, Gus Bilirakis, John Carter, Pat Donahoe, Steve Southerland, Ted Poe
American Postal Workers Union mounts new TV ad campaign
March 19th, 2012 | Postal Service | Posted by Sean Reilly
The American Postal Workers Union has returned to national television with three new 30-second commercials. But unlike a softer-focus ad campaign that ran last summer, these spots have a definite target: the U.S. Postal Service’s downsizing agenda and, in particular, its plans to close or consolidate more than 220 mail processing plants.
If a Maine plant closes, “we would have to consider layoffs” because of increased mailing times, says the president of a Bangor company that produces billing statements, appointment reminders and other documents, in one ad. The other commercials suggest that the processing plant closures could slow delivery of mail-order prescription drugs and warn that the Postal Service wants to lop 100,000 jobs from its payroll overall.
“They’re going to be putting people out of work everywhere,” says Walt Gale, a retired USPS manager from Colorado. “The American people depend on the Postal Service.”
The ads, which began airing last week on NBC, CNN, Fox News Channel and MSNBC, are set to run through May. APWU spokeswoman Sally Davidow declined to give a dollar figure for the total buy, but in an email described it as “a significant amount.”
The timing is no accident. Late last month, the Postal Service released the list of processing plants targeted for demise by next year; meanwhile, the Senate could soon take up legislation that would authorize the mail carrier to offer buyouts or early retirement incentives to up to 100,000 employees and relax requirements for funding retiree health care in advance. But while the legislation would make the Postal Service jump through a few more hoops before shutting post offices and mail plants, it wouldn’t bar such closures outright.
Union-backed proposals, however, by Sen. Bernie Sanders, I-Vt., and 26 Democratic senators would effectively prohibit large-scale plant closings for at least four years and also make it much harder to shutter rural post offices. The bill’s lead sponsor, Sen. Joe Lieberman, I-Conn., has not said where he stands on those proposed amendments, but postal observers see the tug-of-war as one reason that the bill–which was cleared for Senate floor action almost two months ago–has not yet been brought up for debate.
One final footnote: The bill’s co-sponsors include Sen. Susan Collins, a Republican from–yes–Maine.
Tags: American Postal Workers Union, Bernie Sanders, Joe Lieberman, U.S. Postal Service
U.S. Postal Service labor negotiations collapse
January 20th, 2012 | Postal Service Postal Service | Posted by Sean Reilly
This probably comes as a surprise to just about no one, but an impasse was officially declared today in contract talks between the U.S. Postal Service and two unions: the National Association of Letter Carriers and the National Postal Mail Handlers Union. The next step will presumably be mediation or binding arbitration.
The impasse comes two months after prior contracts with both unions officially expired Nov. 20. All sides kept talking after that through two extensions, but could not agree on another extension to keep negotiations alive past today. The parties “currently are discussing how they will proceed,” USPS spokesman Mark Saunders said in a news release. “The existing contracts will be followed until terms of a new contract are resolved.”
The Postal Service is already in arbitration with the National Rural Letter Carriers’ Association. Members of its fourth union, the American Postal Workers Union, ratified a new contract last year that will run until May 2015.
No official word on what triggered today’s breakdown, but the Postal Service has made no secret of its desire for cost-cutting concessions, at least some of which labor was bound to resist. In a news release, NALC President Fredric Rolando said it was the Postal Service’s decision to end negotiations. Calling the decision a disappointment, Rolando said the union “will pursue a negotiated agreement through mediation and prepare to vigorously defend our members in interest arbitration, if it reaches that step.”
Tags: American Postal Workers Union, National Association of Letter Carriers, National Postal Mail Handlers Union, National Rural Letter Carriers Association
Why the Postal Service’s halt to plant and P.O. closings may not mean much
December 13th, 2011 | Postal Service | Posted by Sean Reilly
So, how big a deal is the U.S. Postal Service’s freeze on closings of post offices and mail processing plants?
Less than you might think, perhaps.
No doubt, today’s abruptly announced moratorium was made under mounting political pressure from Capitol Hill Democrats. “Cave-in” was how Reps. Darrell Issa, R-Calif., and Dennis Ross, R-Fla., described it in a news release.
But the long-term consequences for the Postal Service’s downsizing plans won’t necessarily be that pronounced. Last week, for example, a USPS spokeswoman told Federal Times that processing plant closings would start in April at the earliest. The five-month freeze would push that timeframe back only until May. As American Postal Workers Union President Cliff Guffey stressed on the union’s web site, the freeze “is a temporary reprieve.”
And by getting in the way of the Postal Service’s cost-cutting agenda, members of Congress have put themselves on the line with an implied promise to come up with a better alternative. Or, to quote from a letter signed by 20 senators last week: “We believe it is very important to give Congress the opportunity to reform the Postal Service in a way that protects universal service while ensuring its financial viability for decades to come.”
But to state the obvious (a favorite pastime here in the nation’s capital), lawmakers have already had that opportunity and thus far failed to deliver. Don’t be too hard on them: Fixing an organization that’s losing almost $100 million per week would tax the savviest turnaround artist.
For the APWU and other postal unions, the answer is to let the Postal Service tap into as much as $75 billion in purported pension fund overpayments. Even when you discount the fact that the Government Accountability Office recently dismissed the idea that any erroneous overpayments occurred, a refund is not in the cards as long as Republicans control the House, which they will for at least another year. Short of some miraculously lucrative new business lines or Americans’ mass rediscovery of the continuing relevance of snail mail, it’s hard to imagine postal revenues rebounding any time soon.
Lawmakers may have thus put themselves in a box. If they can’t find out a way by May, they could have to concede that the Postal Service’s route—however distasteful for thousands of communities and USPS employees—is basically the only one they have.
Tags: American Postal Workers Union, Cliff Guffey, Darrell Issa, Dennis Ross, U.S. Postal Service
U.S. Postal Service extends contract talks with two unions
November 21st, 2011 | Postal Service | Posted by Sean Reilly
No surprise here, but the U.S. Postal Service and two of its unions failed to agree on new contracts by yesterday’s deadline and have agreed to keep talking at least through Dec. 7.
Existing agreements with the National Association of Letter Carriers and the National Postal Mail Handlers Union officially expired at midnight Sunday. “The parties continue to discuss a host of important and complicated issues,” NPMHU officials said in a news release posted on the union’s web site. “The negotiations are at a very delicate stage, and of this writing, it still is impossible to tell whether an overall deal is likely.”
“We have been working in good faith to hammer out a new contract and we hope that this extension will lead to an agreement that our members can enthusiastically ratify,” NALC President Fredric Rolando said in a separate online release.
Rolando, incidentally, has scheduled a news conference this afternoon at the National Press Club at which he will outline a new approach to employee health benefits to save the “Postal Service billions of dollars, paving the way for financial stability and preventing major service cuts for the public and businesses,” according to a news advisory.
The mail handlers union represents more than 45,000 USPS employees who work in mail processing plants and post offices; the NALC represents more than 195,000 letter carriers who deliver mail mainly in urban areas, according to the Postal Service. In May, the financially struggling agency reached a deal with the American Postal Workers Union that will run until 2015. Talks with the fourth major postal union, the National Rural Letter Carriers’ Association, have reached an impasse, meaning a new contract in that case will be decided through arbitration.
Tags: American Postal Workers Union, National Association of Letter Carriers, National Postal Mail Handlers Union, National Rural Letter Carriers Association
U.S. Postal Service financial crisis: Little agreement, but lots of commotion
September 20th, 2011 | Postal Service | Posted by Sean Reilly
All of a sudden, federal policymakers have noticed that the U.S. Postal Service is staggering toward financial collapse. There’s little consensus on a solution, but the ensuing attention is generating plenty of news. Here’s a recap of major developments just on Monday:
1) The Obama administration publicly outlined one approach for putting the Postal Service back in the black (check out p. 23 of the pdf).
2) A House Oversight and Government Reform subcommittee scheduled a Wednesday vote on legislation by Rep. Darrell Issa, R-Calif., offering an opposing strategy.
3) Rep. Gerald Connolly, D-Va., and 74 other lawmakers released a letter to Postal Regulatory Commission Chairman Ruth Goldway, objecting to USPS plans for the possible closing of thousands of post offices.
4) The American Postal Workers Union, the National Association of Letter Carriers and the National Postal Mail Handlers Union announced the second round of a national television ad campaign with a commercial that faults Congress for the Postal Service’s financial mess.
Meanwhile, the Postal Service continued to deliver the mail and to lose money. Anything we missed?
Tags: American Postal Workers Union, House Oversight and Government Reform Committee, National Association of Letter Carriers, National Postal Mail Handlers Union, Rep. Darrell Issa, Rep. Gerald Connolly, U.S. Postal Service
Postal unions uniting for nationwide rallies
September 9th, 2011 | Postal Service | Posted by Sean Reilly
There’s nothing like the prospect of looming disaster to bring people together. The latest case in point: The U.S. Postal Service’s four unions are teaming up for an unprecedented “Save America’s Postal Service” day later this month.
The basic purpose is to gin up support for legislation by Rep. Stephen Lynch, D-Mass., that would let the Postal Service take advantage of billions of dollars in pension fund overpayments identified by an outside actuary to cover retiree health care obligations. Despite almost 200 cosponsors, that bill, like other proposed legislative fixes, is currently stuck in a congressional committee. But on Sept. 27, union members will be visiting the home offices of every member of the U.S. House of Representatives and also holding informational rallies, according to a joint website.
The four participating groups are the American Postal Workers Union, the National Association of Letter Carriers, the National Rural Letter Carriers’ Association and the National Postal Mail Handlers Union.
These are of course dark times for the venerable mail carrier, one of the nation’s largest employers and a bastion of relatively well-paying middle-class jobs. The Postal Service, running short on cash, now wants to lay off up to 120,000 career workers in the next three years.
In a phone interview, Philip Rubio, a historian at North Carolina A&T State University, could not recall anything comparable in USPS labor history. “This does speak to the severity of the current crisis that the four of them would make common cause,” Rubio said. “It’s the kind of grass-roots effort that a lot of people will welcome.”
Tags: American Postal Workers Union, National Association of Letter Carriers, National Postal Mail Handers Union, National Rural Letter Carriers Association, North Carolina A&T State University, Philip Rubio
Issa labels postal union ad misleading
July 13th, 2011 | Postal Service | Posted by Sean Reilly
In a letter released today, Rep. Darrell Issa, R-Calif., takes aim at a union’s claim that the U.S. Postal Service gets no taxpayer support.
Issa, chairman of the House Oversight and Government Reform Committee, concedes that the Postal Service no longer receives a direct government operating subsidy, but cites a 2007 report that the agency benefits from many “implicit subsidies” and “extra powers” worth several hundred millions of dollars a year. Those include federal, state and local income tax exemptions, Issa wrote, as well as the ability to borrow from the federal treasury at low interest rates.
The letter, dated Monday, is addressed to American Postal Workers Union President Cliff Guffey. That was the same day the APWU began airing an ad on national TV cable channels asserting that its members’ work is “funded by solely by stamps and postage.”
As anyone following USPS issues knows, Issa and Guffey haven’t exactly been best buds of late, given that they have starkly different ideas about what’s needed to cure the Postal Service’s ills. Issa acknowledges those differences in his letter, but adds that “we must be clear about the underlying facts.
“I ask you not to engage in a campaign to mislead the American people.”
In an email, APWU spokeswoman Sally Davidow said the ad is accurate and “is intended to dispel the myth that the Postal Service is funded by tax dollars.”
The Federal Trade Commission report cited by Issa lists not only implicit subsidies for the Postal Service, but also added burdens, Davidow said, and concludes that the burdens exceed the subsidies. The union plans to formally respond to Issa in writing.
Tags: American Postal Workers Union, Cliff Guffey, Darrell Issa, U.S. Postal Service

