January 30, 2012

Addressing the National League of Postmasters on Monday at a conference in Crystal City, Va., Sen. Bernie Sanders  was greeted with a standing ovation from local officials who welcomed his effort to block widespread closings of post offices and processing plants.

Sanders said he hopes legislation slated to come before the Senate next week will protect 100,000 jobs that are in jeopardy under a plan to close facilities around the country, including 15 post offices and two mail sorting centers in Vermont. Sanders also wants Congress to preserve overnight delivery of first-class mail and maintain Saturday mail service, both of which could fall under the budget ax as a result of drastic cost-cutting measures the Postal Service is considering.

Under an agreement with the Postal Service worked out by Sanders and other senators, closures and job cuts under study by the Postal Service were delayed until May 15 to give Congress time to consider reforms.

One of the bills before Congress is one introduced by Sanders last November. It would establish a blue-ribbon commission to create a new business model for the Postal Service and examine ways to expand services and boost revenue. He suggested, for example, letting postal workers make copies for customers, notarize documents and provide check-cashing services, all things that are now against the law.  He also said post offices could work with states to sell hunting and fishing licenses.

Letter carriers go to 150 million households and businesses across the United States six days a week. “Are there other services that they could be providing to bring in revenue for the post office in addition to just delivering the mail? I believe that there are.”

Instead of a strategy of “cut, cut and cut” advocated by the Postmaster General Patrick Donahoe, Sanders called for a business model that acknowledges first-class mail is declining because of e-mail and the digital revolution

“The Postal Service must change,” he told the postmasters, “but it will be a major step backward for our economy if we begin a death spiral for the Postal Service by making mail delivery slower and less efficient.”

Sanders’ legislation also would waive what he called “an incredibly onerous requirement” that the Postal Service set aside billions of dollars over a 10-year period to fund health care benefits for the next 75 years. He also would let the Postal Service recoup billions of overpayments to its pension funds.

On Thursday, January 26, Senate Majority Leader Harry Reid announced that the Senate would take up the “Stock Act,” rather than postal reform legislation during the week of January 30. The Stock Act bans insider trading by Members of Congress. In his State of the Union Address, President Obama indicated that he would promptly sign into law the Stock Act, when passed.

At this point, there is some uncertainty about scheduling Senate consideration of S. 1789, although the Senate Leadership, Homeland Security and Governmental Affairs Chairman Joseph Lieberman, and Ranking GOP Member Susan Collins would like to begin consideration during the week of February 6. A number of speed-bumps confront floor action: the Committee has yet to file its report on the bill; the Congressional Budget Office calculated a significant cost associated with bill; and there are number of controversial provisions in the bill that are generating strong opposition.

via NAPUS.

The APWU has learned that the Senate will consider postal legislation very soon, and President Cliff Guffey is asking union members to contact their senators immediately and tell them that the 21st Century Postal Service Act (S. 1789) is unacceptable in its current form. “The stakes couldn’t be higher,” Guffey said.

As currently written, the bill would give the USPS some short-term financial relief, but also would inflict long-term damage to the nation’s mail system, he said.

“The bill would force the Postal Service to close hundreds of mail processing centers, shut thousands of post offices, and cause massive delays in mail delivery,” the APWU president said. “By failing to give more substantial financial relief, the bill would weaken the Postal Service, kill jobs, and drive customers away,” he added.

Call Your Senators:

202-224-3121

(Capitol Switchboard)

Tell them you oppose

S. 1789 as it is currently written.

“APWU members have done an outstanding job of expressing our concerns to their senators and representatives,” Guffey added. “At this critical time, union members must continue to let them know where we stand.”

The union is seeking support for amendments to:

• Set strict service standards. (This is crucial, because the Postal Service is planning to degrade delivery standards in order to eliminate more than half of all mail processing facilities.)
• Allow the USPS to recover overpayments the Postal Service made to its retiree pension funds.
• Adequately address the requirement that forces the USPS pre-fund future retiree health benefits.
• (This mandate is the primary cause of the agency’s financial crisis. No other government agency or private company bears this burden, which costs the USPS approximately $5.5 billion annually.)
• Establish new ways to generate revenue, such as providing notary services, issuing licenses, contracting with state and local agencies to provide services, and allowing the USPS to offer services that mail systems in many other countries provide, such as digital services.
• Prevent the closing of small post offices by giving the Postal Regulatory Commission (PRC) binding authority to prevent closures based on the effect on the community and employees.
• Protect six-day delivery.
• Eliminate the provision that would drastically reduce the compensation of workers who are injured on duty once they reach retirement age.
• Repeal the provision that would require arbitrators in postal contract negotiations to consider the financial health of the USPS. (Postal unions note that arbitrators routinely do so, and criticize the provision as an attempt to skew contract negotiations in favor of management.)

“We must not allow this bill to destroy service to the American people,” Guffey said.

via Senate to Vote on Postal Bill; APWU Members Must Take Action NOW!.

Dear Supporter,

Thanks to you and your brothers and sisters across the country, S. 1789 will not be brought to the Senate floor next week. We were successful in delaying a floor vote on S. 1789 because letter carriers called their senators and urged them to oppose the bill in its current form.

S. 1789 is still on the docket, though, and it might be brought up in the near future. Therefore, it is imperative that you continue to check your e-mail and the NALC website for the most up-to-date information regarding further action on S. 1789.

The NALC is continuing to work with Senate leadership and our allies in the Senate to reform the bill before the Senate considers it for passage.

This week, you did your part to protect the future of the United States Postal Service and, when I call on you again, I know you will take action to keep the pressure on the Senate to do the right thing.

Thank you for your continued efforts.

In Solidarity,

Fredric V. Rolando, President

National Association of Letter Carriers

SUMMARY

S. 1789 would change the laws that govern the operation of the United States Postal Service (USPS). Major provisions of the bill would:

•  Transfer more than $11 billion in surplus retirement contributions from the Civil Service Retirement and Disability Fund (CSRDF) to the Postal Service Fund;
• Change the payments that the Postal Service is required to make to the Postal Service Retiree Health Benefits Fund (PSRHBF);
• Permit the Postal Service to reduce mail delivery from six days per week to five;
• Authorize the Postal Service to offer employees credit for additional years of service as an incentive to retire; and
• Reduce payments to most federal workers receiving benefits under the Federal Employees¡¦ Compensation Act (FECA) and reform the administration of that act.

In addition, other provisions of S. 1789 would aim to help the Postal Service reduce its costs and increase its revenues.

CBO estimates that enacting the bill would result in off-budget savings of $25.6 billion over the 2012-2022 period and on-budget costs totaling about $31.9 billion. (USPS cash flows are recorded in the federal budget in the Postal Service Fund and are classified as off-budget, while the cash flows of the PSRHBF, CSRDF, and the FECA account are on-budget.)

Combining those effects, CBO estimates that the net cost to the unified budget of enacting S. 1789 would be $6.3 billion over the 2012-2022 period. All of those effects reflect changes in direct spending. In addition, we estimate that enacting S. 1789 would decrease revenues by $15 million over the 2012-2015 period. Pay-as-you-go procedures apply because enacting the legislation would increase on-budget direct spending and decrease revenues.

Here’s the full report:

CBO Analysis of S. 1789

Future of the Post Office.

Congressman Stephen F. Lynch (MA-9) is joining Congressman Brian Higgins (NY-27) in asking the U.S. Postmaster General to remove the Buffalo Mail Processing facility from the list of those slated for closure. Congressman Lynch is a member of the Committee on Oversight and Government Reform, where he serves as Ranking Member on the Subcommittee on Federal Workforce, U.S. Postal Service and Labor Policy.

“Congressman Lynch understands the struggles of hard-working communities and the devastating economic impact closing the Buffalo facility would have on families and businesses in Western New York,” said Higgins. “We are thankful to add the Congressman’s name to the hundreds of others locally who are fighting to keep the William Street plant open.”

“The Buffalo Processing and Distribution Center plays a key role in western New York’s economy and its closure could have serious economic ramifications for the entire region,” Congressman Stephen F. Lynch said. “Based on the U.S. Postal Service’s own criteria for closing facilities, it makes no sense that the Buffalo facility should be closed. I join with my colleague, Congressman Brian Higgins, in asking that it be removed from consideration for closure.”

Prior to serving in Congress, Lynch worked as an ironworker for 18 years at sites across the country and was eventually elected president of his local union. Congressman Lynch is the son of a postal clerk.

Below is a copy of the letter sent jointly by Congressmembers Higgins and Lynch:

January 26, 2012

The Honorable Patrick R. Donahoe
Postmaster General
475 L’Enfant Plaza SW
Washington D.C. 20260-3500

Dear Postmaster General Donahoe,

We write in strong opposition to the potential closing of the Buffalo Processing and Distribution Center (Buffalo P&DC) and respectfully urge you to remove this site from the United States Postal Service’s list of Area Mail Processing facilities that could be subject to consolidation. Importantly, the Buffalo P&DC plays a vital economic, service, and community role in the Western New York region and its continued operation is essential to the economic vitality of the City of Buffalo and its surrounding areas, all of which depend on this facility as an invaluable source of employment, commercial stimulus, and exceptional delivery standards.

In examining the consolidation and closure of any mail processing or retail facility, we believe that USPS must consider all relevant factors prior to reaching a determination that a site will subject to such action. In particular, due diligence requires that the Postal Service afford maximum consideration to the overall impact of a decision on local residents, postal employees, businesses, and the affected community at-large. Included among the variety of factors that must be taken into account is the economic importance of the facility to the continued vitality of the region. In this regard, the Buffalo PD&C is essential to maintaining economic growth in the City of Buffalo and the greater Western New York area.

Specifically, in September of 2011, the United States Postal Service (USPS) recognized the Buffalo Niagara region as a gold medal award winner for its practices that “create business growth opportunities for the Postal Service.” Given that the Buffalo P&DC currently employs over 700 postal employees and generates significant regional economic activity in terms of labor income and tax revenue, the presence of this facility has been a critical factor behind such economic growth. In addition, with the recent announcement by New York Governor Andrew Cuomo, in his State of the State address, that $1 billion will be invested in the Buffalo area for economic development, it is clear that the continued operation of the Buffalo P&DC will be essential as the Western New York region undertakes efforts to enhance economic, business, and employment opportunities in the area. Moreover, this important facility is located in the second-largest city in the State of New York and as such, is integral to USPS’s commitment to providing exceptional delivery to a significant customer base that not only consists of the greater Buffalo residential and business population but also customers in surrounding areas.

Regrettably, a recent Area Mail Processing Feasibility Study for the Buffalo PD&C and an advisory opinion issued by the Postal Regulatory Commission N2001-1 on the USPS’s Retail Access Optimization Initiative indicate that the USPS has not considered several relevant factors before placing the facility on its consolidation study list.

Ruth Goldway, the Chairman of the Postal Regulatory Commission stated in respect to the PRC opinion from December of 2011 that “The Commission was unanimous in expressing its concern that the Postal Service’s plan did not and could not, because of a lack of data and analysis, determine the facilities most likely to serve the greatest number, reduce the greatest costs, or enhance the potential for growth or stability of the system.” This advisory opinion in regards to retail locations illustrates a need for greater analysis and data collection by the USPS in their review processes.

In addition, the Area Mail Processing Feasibility Study that was released on December 20, 2011 contained one page of data on the savings to the USPS that closing the Buffalo PD&C would realize. That data was subsequently updated and proven to be contradictory to the original statements of the USPS in terms of total positions impacted, savings in management, transportation, and maintenance, all while providing no data on the economic impact on the community. International commerce and trade are never mentioned in the report though over 30 million pieces of mail from Canada are processed at the facility every week.

We applaud the decision by USPS to place a 5-month moratorium on the consolidation and closure of mail facilities through May 15, 2012. However, given the economic detriment, employee displacement, and disruption of service to the Buffalo Region that would result from the consolidation of the Buffalo P&DC, we again urge you to remove the facility from your list of potential consolidation sites. In the intervening time, we also ask that the consolidation study undertaken by USPS in relation to the Buffalo PD&C includes a review of all relevant data and analytical tools in order to ensure maximum input from postal stakeholders and residents in the Western New York community.

Sincerely,

The figures are “totally unacceptable and disrespectful to hardworking American taxpayers,” said Rep. Jason Chaffetz (R-Utah). “If you’re on the federal payroll, the very least you can do is pay your taxes.”

Fair enough- but what’s so special about being “on the federal payroll”. Why don’t the Republicans want to fire everybody who owes taxes? I think it’s safe to assume that people who work in the private sector owe far more than a billion, since there so many more of them!

But that’s probably the reason the GOP likes to target federal workers: they are a very small minority of the population, and the perception is that they are doing better than the average American. It would be reprehensible to target an ethnic group this way, but it seems perfectly acceptable to target federal workers.

That’s something you might expect Jason Chaffetz to understand. He happens to be Jewish, and represents a state largely populated by Mormons, another minority religion that has been singled out for persecution in the past.

Why is it “class warfare” when Democrats ask fat cats like Mitt Romney to pay their fair share of taxes, but it’s OK for people like Chaffetz to demonize middle class working people who can’t afford teams of lawyers and offshore private bank accounts?

via Federal employees owe $1.03 billion in unpaid taxes – The Federal Eye – The Washington Post.

• Volatile Organic Compounds: 2,705 lbs.
• Carbon Monoxide: 10,627 lbs.
• Oxides of Nitrogen: 77,865 lbs.
• Particulate Matter: 1,642 lbs.
• Carbon Dioxide: 24,683 tons

The NALC has learned that 218 House members from both parties—a majority—have now signed on as co-sponsors of H.Res. 137, the measure introduced by Rep. Sam Graves (R-MO) that expresses the sense of the House that the USPS should take “all appropriate measures” to ensure continuation of six-day delivery. “Our members’ hard work continues to pay off,” NALC President Fredric Rolando said. “This level of support will shore up our defense against the attempts by Congressman Darrell Issa and others to ‘save’ the Postal Service by cutting service—a counterproductive proposal that would surely fail if implemented.” Click here to find out whether your representative is among this majority, and if he or she is not, click here to find out how you can ask your House member to become a co-sponsor of H. Res. 137.

via NALC | The National Association of Letter Carriers, AFL-CIO.