Archive for June, 2009

USPS work force down 5.4% compared to last year

The US Postal Service has reduced its career complement by 36,326 employees in the last twelve months, a reduction of 5.4%. The clerk craft took the biggest hit, losing 15,374 employees, or -7.7%. The larger city carrier craft lost 11,435 positions, or -5.3%. Mail handlers were down 2,938, or -5.2%. Rural carriers had the smallest decline, 753 jobs, or -1.1%. Managers and supervisors lost 1,902 jobs, or -6%, Headquarters is down 153 or -5.3%, while the Area offices lost 173, or -13.3%.

(Source: On Rolls and Paid Employee report filed by USPS with the PRC. All numbers reflect actual on rolls complement, not authorized staffing.)

USPS lost $677 million in May: volume down 20% from prior year

The US Postal Service processed 2.8 billion fewer pieces of mail in the month of May than it did in the same time period a year ago. The steepest decline was in advertising mail, down 24%. First class mail was down 16%. The 19.9% decline in overall volume yielded a 15.3% decrease in revenue. Combined with a decrease in expenses of just 6.7%, the end result was a net loss of $677 million. That brings the fiscal year to date loss to $3.4 billion, putting the USPS on track lose around $6 billion by the time the fiscal year ends on September 30.

The loss comes despite unprecedented reductions in employee workhours. City carriers’ hours were down 10% from May 2008, while hours for “inside” staff at post offices and processing centers were down 16%.

It should be noted that the postal service is required by Congress to set aside $5.4 billion this fiscal year to “pre-fund” future retiree health benefits. No other business or agency is required to do this. That $5.4 billion is included in the expected $6 billion deficit. All of which means that despite the sharp decline in mail volume, the USPS would otherwise be seeing only a modest net loss this year, or even a profit if it weren’t for the “pre-funding” requirement. We’ve covered this congressional shell game in the past, and the Inspector General’s office has found that even if the pre-funding requirement is considered legitimate, the USPS is being overcharged by $3.3 billion a year- read their report here.

Read the full financial summary here.

H.R. 22 moves toward full committee

The subcommittee on the Federal Workforce, Postal Service and the District of Columbia marked up H.R. 22 today and passed it by a unanimous vote. This legislation will allow the United States Postal Service to pay its share of contributions for annuitants’ health benefits out of the Postal Service Retiree Health Benefits Fund.

I commend the hundreds of letter carriers, state presidents and congressional district liaisons (CDLs) who worked tirelessly, both here in Washington and back at home, to bring us the 337 co-sponsors of this bill. No other pending legislation in Congress has as many cosponsors and such bipartisan support.

For purely technical reasons, the Congressional Budget Office (CBO) “scored” the bill, which means they gave it a projected cost of about $12 billion, even though the bill does not require any taxpayer funds. Nonetheless, this was a threat to passage on the floor due to the “pay-go” rules currently enforced in the House.

With major input from the NALC and with the leadership of Committee Chairman Stephen Lynch (D-MA) and Full Committee Chairman Ed Towns (D-NY), an amended version of the bill was crafted, which shortens the relief from eight years to three years in order to reduce the score and improve the chances of House passage. Full Committee Ranking Member Darrel Issa (R-CA) and Subcommittee Ranking Member Jason Chaffetz (R-UT) were also instrumental in the passage of the amended bill.

We worked hand-in-hand with the bill’s original authors, Rep. John McHugh (R-NY) and Rep. Danny Davis (D-IL), both longtime friends and advocates for letter carriers. Although the bill falls short of what was originally intended, we stand firm in our support for H.R. 22 as amended and will continue to work diligently to pass this bill in full committee and to send it to the full House of Representatives for a vote.

When there is an opportunity in the future through other legislative vehicles to strengthen the Postal Service, we will pursue them. However, at this time, I want to thank the above-mentioned committee leadership as well as the other members of the subcommittee who took the first step in advancing this very important bill. I will keep you posted on the progress of this legislation. I ask that you continue to thank all the original co-sponsors of the bill and impress upon them the importance of sticking with us as we approach floor action in the House of Representatives.

My sincere thanks again to all of those who worked with us to help protect the future of all letter carriers and the United States Postal Service.

In Solidarity,

William H. Young, President

Sacramento man sentenced to 21 months for fencing items stolen from the mail

The U.S. Department of Justice’s U.S. Attorney’s office for the Eastern District of California issued the following press release:

Acting U.S. Attorney Lawrence G. Brown announced today that DAVID ALLEN GIBSON, 42, of Sacramento, was sentenced this morning by United States District Judge John A. Mendez to 21 months in prison to be followed by a three-year term of supervised release for possessing items stolen from the U.S. Mail and for possession of a loaded firearm. He was also ordered to pay restitution.

This case was the product of extensive investigation by the U. S. Postal Inspection Service.

According to Assistant United States Attorney Michelle Rodriguez, who prosecuted the case, on September 26, 2008 a registered mail bag was stolen from a locked U.S. Postal Service truck in Sacramento County. The bag contained cash from the daily receipts of the Carmichael Post Office, a $400 money order, basketball cards, cremated human remains, and eight unique gold coins valued at $1, 393.

On October 31, 2008, GIBSON pawned two coins: a 1373-75 Iran Azadi gold coin, and a 1926 Netherlands 10 gulden gold coin. Then on November 8, 2009, he sold an 1876 German 20 mark gold coin to a coin shop. Both times he used his own driver’s license for identification.

On November 18, 2008, federal agents executed a search warrant on GIBSON’s residence where they found the basketball trading cards and the remaining five gold coins: a 1979 South Africa gold coin, a 1923 Turkey gold coin, an 1875 Belgium 20 francs gold coin, a 1348 Iran 1/2 pahalavi gold coin, and an 1882 R Italy 20 lira gold coin. GIBSON, a previously convicted felon, was in possession of a loaded 380 caliber semi-automatic pistol.

After his arrest, the cremated human remains anonymously were returned via deposit in a Sacramento blue mail box. The theft from the U.S. Postal Service Truck is unsolved and anyone having information concerning the crime are encouraged to contact the U.S. Postal Inspection Service. GIBSON pleaded guilty on March 3, 2009.For more information please contact: Sarabjit Jagirdar,Email:- htsyndication@hindustantimes.com

Board of Governors meets in closed telecon sessions

Notices in the Federal Register reveal that the US Postal Service Board of Governors have held two closed meetings via telecon since the last regularly scheduled meeting on May 6. The sessions took place on May 22 and June 2, and the agenda items were listed as

1. Strategic Issues.
2. Financial Matters.
3. Pricing.
4. Personnel Matters and Compensation Issues.
5. Governors’ Executive Session–discussion of prior agenda items and Board Governance.