Archive for October, 2010

PostalOne! suffers four hour midday blackout

From Intellisent’s Postal Affairs Blog:

No official word yet (I’m sure it will be forthcoming), but the USPS Business Customer Gateway is accessible now.

4+ hours of unscheduled downtime, during the middle of a business day. Not good.

via Postal Affairs Blog.

UPS 3Q Earnings Climb 69 Percent on Revenue Growth of 9 Percent

UPS (NYSE:UPS) today announced adjusted diluted earnings per share of $0.93 for the third quarter of 2010, a 69% improvement over the prior-year period. Global revenue grew 9.3%, generating $1.5 billion in adjusted operating profit, a 62% increase.

On a reported basis, diluted earnings per share were $0.99, an 80% increase over the $0.55 in the same period last year. During the quarter, UPS recorded an after-tax benefit of $61 million on the sale of real estate.

"UPS once again exceeded expectations due to superior execution across all business units and our ability to provide solutions that create value for our customers," said Scott Davis, UPS chairman and CEO. "We continue to deliver significant earnings growth and margin expansion in the current economic environment. This is a true testament to what can be accomplished when you have excellent people, superior service and an unmatched global portfolio."

Based on the company’s performance, UPS has increased its guidance for 2010 adjusted diluted earnings to a range of $3.48 to $3.54 per share, a 51%-to-53% increase over last year.

Full story: UPS 3Q Earnings Climb 69 Percent on Revenue Growth of 9 Percent – UPS Pressroom.

Quicksort agrees to pay USPS $4.2 million to settle underpayment allegations

WASHINGTON – California-based companies Quicksort Inc., Quicksort LA Inc. and Quicksort Sacramento Inc. have agreed to pay the United States $4.2 million to settle allegations that Quicksort violated the False Claims Act by falsely representing the level to which it had pre-sorted mailings in order to obtain discounted postage rates from the U.S. Postal Service, the Justice Department announced today.

The U.S. Postal Service offers lower postage rates to mailers who automate and sort their mail by zip code because these steps save the Postal Service time and money. Mailers use the services of businesses such as Quicksort that combine the mail of many customers and pre-sort it in order to qualify for the pre-sort discounts. After processing customers’ mail, these pre-sort businesses present the mail to the Postal Service for mailing.

The settlement resolves allegations that the Quicksort companies misrepresented the pre-sort level of mail they submitted to the U.S. Postal Service at various times in 2008, 2009 and 2010.

“Making false claims to obtain discounted postage rates is dishonest, and such conduct interferes with the Postal Service’s effort to swiftly and accurately deliver the mail,” said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. “We will hold businesses accountable for underpaying for postage and will ensure that taxpayer funds are protected from fraud and abuse.”

“The Postal Service enters into mailing agreements with entities such as QuickSort to help ensure the US mail is collected, prepared, and delivered as cost effectively and efficiently as possible,” said Benjamin B. Wagner, U.S. Attorney for the Eastern District of California. “When a pre-sort business overstates the level of presorting it has performed, the Postal Service not only pays for services not rendered, but then also has to incur the costs of sorting the mail to its proper ZIP Code. The False Claims Act provides a powerful remedy when this activity occurs.”

“The Postal Inspection Service investigates these types of cases to not only protect the Postal Service but also protect the mailing community from those who seek to gain an unfair competitive advantage,” stated Postal Inspector-in-Charge Adam P. Behnen.

The settlement was reached by the Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Eastern District of California. The U.S. Postal Inspection Service investigated the matter.

Burrus: Notion that USPS Can’t Afford Unions Is a Cheap Shot at Workers

APWU President William Burrus has again refuted assertions about the financial condition of the Postal Service that appeared in a recent column in The Daily Caller: “The Postal Service Can’t Afford Unions.”

In an Oct. 18 letter [PDF], Burrus wrote that if Tad DeHaven, the author of the column, “knew what he was talking about, he could be dangerous.”

Burrus dispelled DeHaven’s claims that the Postal Service’s current financial situation arises from “the combination of a weak economy and growing competition from cheaper, quicker electronic communication alternatives,” and that “a big drag on the Postal Service’s bottom line is the pesky postal unions.”

“An article devoted to explaining the poor financial position of the Postal Service that never once mentions the congressionally imposed mandate to pre-fund future retiree costs (in amounts of more than $5 billion annually for 10 years) is clearly biased,” Burrus wrote, noting that no other government agency of private company bears this burden.

“I am not surprised that a right-wing publication such as yours wishes to avoid mentioning these fundamental facts,” Burrus said.

The union president pointed out that without the pre-funding obligation, which is unrelated to the wages and benefits of postal employees, the USPS would have experienced surpluses of $3.6 billion over the three-year period from Fiscal Year 2007 through 2009 — despite the fact that mail volume declined by 30 percent.

Burrus refutes DeHaven’s claims that postal unions are a “giant anchor on an already sinking ship.” The author claims that the rights and benefits postal employees have fought long and hard for — such as no layoffs, healthcare premiums, and limited use of part-time workers — have pushed the Postal Service into the red.

The union president noted that the APWU is currently engaged in collective bargaining, and the union welcomes the opportunity to discuss increased flexibility of its workforce.

“We have long maintained that our members can perform many of the tasks historically reserved for supervisors and postmasters,” Burrus wrote. This would eliminate the need for the USPS to pay premium wages for performance of routine administrative tasks.

Burrus also mocked DeHaven’s that arbitrators do not have to consider the financial condition of the USPS when reaching a decision. He pointed out that every arbitrator who has ruled on the Collective Bargaining Agreement did consider the financial condition of the Postal Service.

Instead of requesting a bailout from American taxpayers, Burrus wrote, congressional action to correct the Postal Service’s $142 billion overpayment to its pension and healthcare funds is needed.

“The next time that you are inclined to take a cheap shot at workers,” Burrus wrote, “I suggest you at least present a façade of impartiality and get your facts straight.”

via Notion that USPS Can’t Afford Unions Is a Cheap Shot at Workers.

Priority mail flat rate ad campaign expands

Maybe you already noticed. The Priority Mail Flat Rate Box campaign — perhaps better known for the “If it fits, it ships” commercials — is promoting another item in the flat-rate products line.

This time, Al, the letter carrier who has appeared in previous commercials, reprises his role in a new ad featuring the Priority Mail Flat Rate Envelope. According to Advertising and Media Planning Manager Joyce Carrier, USPS is focusing on the $4.90 envelope because research indicates large and small businesses will respond to the product.

“We know our ad campaign has resonated with viewers,” said Carrier. “Once again, Al provides a simple and competitive solution for customers who already understand the benefits of the flat-rate concept and will immediately recognize the benefits of expanding the basic offering.”

The Postal Service is airing the ad on several broadcast and cable TV networks. Supporting the new ad is direct mail to 6 million businesses, an

e-mail campaign, online advertising, and print commercials in trade and news publications.

USPS also has updated its prioritymail.com website to include the envelope as part of the flat-rate shipping story. And the fulfillment kit USPS sends to customers responding to the campaign now includes the envelope along with the four flat-rate boxes.

via USPS News Link – Oct 20, 2010.

Recent criminal enforcement actions against postal union officials

On September 23, 2010, in the United States District Court for the Eastern District of Michigan, Donald Kister, former President of National Postal Mail Handlers Local 307 (located in Detroit, MI), was charged in a two-count indictment with one count of embezzling union funds in the amount of $4,137.35 between August 2006 and October 2007 and one count of making false statements. The indictment follows an investigation by the OLMS Detroit District Office.

On September 1, 2010, in the United States District Court for the Northern District of Illinois, Mozelle E. Means-Swanson, former President of American Postal Workers Union (APWU) Local 7139 (located in Aurora, Ill.), pled guilty to one count of willfully failing to maintain union records. On May 6, 2009, Means-Swanson was indicted on one count of embezzling union funds in the amount of $4,900. The plea follows an investigation by the OLMS Chicago District Office.

On August 18, 2010, in the United States District Court for the Southern District of Mississippi, Sharron Dixon Haynes, aka Sharron A. Haynes, former election candidate of National Association of Letter Carriers (NALC) Branch 217 (located in Jackson, Miss.), was indicted on three counts of making and causing to be made, and using and causing to be used, a false writing or document in a matter within the jurisdiction of the executive branch of the United States Government.. Haynes is alleged to have submitted a false certification of her eligibility for election to Branch 217, which she knew falsely certified that she had not served as a supervisor within two years prior to October 2008, when in fact she had served as a supervisor in May 2008. The indictment follows an investigation by the OLMS New Orleans District Office.

via U.S. Department of Labor — Office of Labor-Management Standards (OLMS) — OLMS Enforcement.

Postal worker admits stealing mail

A former worker at the U.S. Postal Service’s Baltimore distibution center admitted in federal court that he regularly rifled through greeting cards, stealing cash and gift cards and discarding the rest.

Andrew C. Walsh, 51, of Cockeysville, Md. pleaded guilty Wednesday in federal court in Baltimore to mail theft. Authorities said he stole about 1,600 gift cards worth between $30,000 and $70,000, and about $12,000 in cash.

Walsh, who worked as a maintenance mechanic, didn’t process mail but had access to areas where it was kept. From August 2009 to April 2010, court papers say, he began plucking mail off a conveyor belt in an isolated area, opening the envelopes and stealing valuables inside. He took about 10 gift cards and $75 in cash each shift.

Full story: Crime Scene – Postal worker admits stealing mail.

OSHA fines Columbus, Ohio, USPS processing center $210,000 for willful safety violations

COLUMBUS, Ohio – The U.S. Department of Labor’s Occupational Safety and Health Administration has cited the U.S. Postal Service with five alleged willful violations at its Columbus processing center. The Postal Service faces a total of $210,000 in fines for electrical and equipment hazards following an OSHA inspection conducted in response to employee complaints.

OSHA’s inspection, which began in April 2010, found that the Postal Service failed to provide adequate electrical safety training, ensure that workers followed safety-related work practices while working on electrical equipment and provide workers with appropriate personal protective equipment while working on energized electrical equipment.

A willful violation is one committed with intentional, knowing or voluntary disregard for the law’s requirements, or plain indifference to employee safety and health.

"These sizable fines reflect the severity and ongoing nature of these hazards," said Assistant Secretary of Labor for OSHA Dr. David Michaels. "The Postal Service ignored long-established safety standards and knowingly put its workers in harm’s way."

The Department of Labor has filed an enterprise-wide complaint against the U.S. Postal Service for electrical work safety violations. The complaint asks the Occupational Safety and Health Review Commission to order the Postal Service to correct electrical violations at all its facilities nationwide. This complaint marks the first time OSHA has sought enterprise-wide relief as a remedy.

The Postal Service has 15 business days from receipt of its citations and penalties to comply, request an informal conference with OSHA’s area director or contest the findings before the independent Occupational Safety and Health Review Commission. This inspection was conducted by OSHA’s area office in Columbus. To report workplace accidents, fatalities or situations posing imminent danger to workers, call OSHA’s toll-free hotline at 800-321-6742.

Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to assure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit http://www.osha.gov.

via 2010 – 10/19/2010 – US Labor Department’s OSHA fines Columbus, Ohio, US Postal Service processing center $210,000 for willful safety violations.

Louisiana rural carrier critically injured while delivering mail

Bossier Parish – On October 16, 2010, at 9:47 a.m., Louisiana State Police Troop G responded to a two vehicle crash on LA 527, east of LA 157, in Bossier Parish. The crash critically injured a 59-year-old United States Postal Service worker from Castor.

According to investigating troopers, two Bossier Parish Sheriff’s Deputies were traveling east on LA 527 while responding to an ATV accident. Both deputies were traveling in fully marked patrol units with their overhead light bars activated. While traveling east on LA 527, both units approached Deborah B. Wood, United States Postal Service worker, who was stopped partially in the roadway and on the right shoulder in her 2007 Jeep Wrangler, delivering mail.

The lead Sheriff’s unit steered safely around the Jeep Wrangler and continued east. The trailing Sheriff’s unit, a 2008 Ford Crown Victorian, operated by 68-year-old Deputy Joe Young, struck the Jeep Wrangler from behind causing it to veer right into the ditch area and overturn ejecting Mrs. Wood.

Mrs. Wood, who was unrestrained at the time of the crash, was air lifted to LSU Medical Center in Shreveport with life threatening injuries. According to Louisiana’s seatbelt law, United States Postal Service workers are exempt from wearing their seatbelts in the performance of their duties.

Deputy Young, who was restrained at the time of the crash, was transported to Willis Knighton Bossier Medical Center in Bossier City with minor injuries.

Although impairment is not suspected to be a factor, routine toxicology test results are pending and the crash remains under investigation.

Congressional Research Service updates report on USPS finances

The Congressional Research Service has updated its report on the USPS’s financial condition and the issues it raises for Congress:

The U.S. Postal Service’s Financial Condition: Overview and Issues for Congress