In yesterday’s monthly meeting with Postmaster General Patrick Donahoe, NAPUS President Bob Rapoza discussed Voluntary Early Retirements (VERs), Incentives and adding years of service as possibilities to help ease the financial burdens of the USPS. While many options are being considered as the Postal Service attempts to reduce the number of on roll employees, President Rapoza suggested that VERs, Incentives and adding years of service should be strongly considered as part of the process.

Postmaster General Donahoe is scheduled to address nearly 1,200 attendees at the NAPUS National Convention in San Juan, Puerto Rico next week. Attendees are hopeful that the PMG may provide a preview of a “major announcement” that is scheduled to be released on September 15.

In a story published in the Washington Post, the White House plans to present a USPS financial rescue plan in coming weeks. The proposed plan would be included in the Obama administrations deficit reduction package. The White House is requesting that Congress provide the USPS with a 90-day extension to pay mandatory annual retirement payments of more than $5 billion.

In a related story, the PMG told Senators that the Postal Service could lose up to $10 billion by the end of the fiscal year.

Charlie Moser

September 7, 2011

• July 19-22, 2011— Annuity estimates and VER offer mailings to VER-eligible employees
• July 25-August 26, 2011— Window period for employees to consider VER offer
• August 26, 2011 — Decision-to-retire irrevocable date for VER
• September 30, 2011— VER effective date. Note: If eligible, employees may choose to retire early on August 31, 2011.

Should the number of employees electing to take the VER exceed the number of impacted employees at the select sites, first consideration will be given to the impacted employees. Additional VER applications will be approved on a first-come, first-serve basis as determined by the earliest date of receipt of Acknowledgement of Irrevocability & Application for Immediate Retirement (VER).

These changes are part of the Pacific Area’s efforts to streamline operations, increase efficiencies and reduce costs in support of the USPS action plan to ensure a strong, viable organization now and in the future.

For more information, contact your district Human Resources office.

Pacific Area VER Timeline July 2011

In a move to further right-size complement levels to better match workload, the Pacific Area is offering a voluntary early retirement (VER) to carriers and clerks working at select impacted sites and at non-impacted offices within a 50-mile radius of the impacted sites.

VER offer sites and timelines will be announced when the information becomes available.

These changes are part of the Pacific Area efforts to streamline operations, increase efficiencies and reduce costs in support of the Postal Service’s action plan to ensure a strong, viable organization now and in the future.

For more information, contact your district Human Resources office.

Pacific Area VER Offer

June 1, 2011

To: APWU Members

Perhaps it is time for the Postal Service to consider offering a healthy incentive for APWU represented employees to retire. The wage difference between a Grade 6 Step 0 employee and a newly hired replacement is $18,000 per year ($53,102 vs. $35,182) so for every 1000 employees replaced, the Postal Service saves 18 million dollars per year. It would be in their financial interest to entice those employees eligible for retirement to retire.

The Postal Service is strapped for cash so it will not be easy to fund the cost of an incentive, but there are creative ways to defer the cost while generating savings. In the previous effort, agreement was reached to spread the incentive over two years to lessen its immediate impact on the USPS’ financial position and other innovative approaches could be explored.

The problem is that employees, who are eligible, refrain from severing their employment for a variety of personal reasons and continue to work for lack of an alternative that meets their objectives. An incentive would influence many who will otherwise continue their employment for an indeterminable period.

The consideration of offering an incentive does not include what is known as "early outs" permitting employees to retire earlier than the legal formula. The Postal Service must receive the approval of OPM to offer early outs and such permission will not be granted, if it is intended to replace the retiring employee. Early outs cannot be used to reduce payroll costs.

At a time when the Postal Service is experiencing severe financial problems brought on by the unreasonable payment for future health care costs consideration should be given to this opportunity for significant savings.

In solidarity,

Bill Burrus

via burrusjournal.org – Special Bulletins.

The Postal Service is offering a version of the Special Incentive Offer announced earlier this year limited to supervisors, Customer Services, and supervisors of Distribution Operations, in seven districts.

The districts affected are: Caribbean, Honolulu, Long Island, New York, Westchester, Triboro and Northern New Jersey.

According to Human Resources (HR), the affected districts have an exceptionally high number of supervisors but no placement opportunities within their commuting areas. In order to limit the impact on these employees, the Postal Service is extending its Limited Special Incentive Offer to supervisors of Customer Services and Distribution Operations who are VER-eligible, optional retirement-eligible or those who want to voluntarily leave USPS.

USPS has mailed annuity estimates and incentive offer packets to eligible supervisors in the seven Districts.

June 30 is the irrevocable date for VER-eligible employees as well as the opt-in deadline for optional retirement and voluntary resignation under the Limited Special Incentive Offer. The VER-Optional-Resignation effective date is July 31.

Information about the Limited Special Incentive Offer will not be posted on the Organizational Changes website. Instead, local area and district HR managers will advise employees on details about timelines and guidance.

THIS SECTION ADDRESSES SPECIFIC RIF NOTICE QUESTIONS RELATED TO THE 2011 REDESIGN. FOR A MORE COMPREHENSIVE LIST OF QUESTIONS AND ANSWERS, CLICK ON THE ORGANIZATIONAL CHANGE/RIF FAQS (GENERAL FAQS).

21. I received a May 27, 2011 Specific RIF Notice that states that I will be assigned to another position. When does this new position become effective? Can I apply for other positions during the job posting period that begins on June 14? (Added 05/26/2011)

Assignment to your new position as stated in the May 27, 2011 Specific RIF Notice—either a demotion to a lower-grade position or a reassignment to a same-grade position—will be effective on September 10, 2011, which marks the end of the 2011 Organizational Redesign process.

A PS Form 50 effecting your RIF assignment on September 10, 2011 will be processed and mailed out in mid-September. However, you may be expected to begin performing the duties of your RIF assignment prior to the September 10 effective date. Managers will discuss these details with their respective employees.

Jobs will be posted in eCareer beginning on June 14, 2011. If you meet the eligibility requirements indicated in a job posting, you can apply. If you are selected for a position, a PS Form 50 specifying the new position and effective date will be processed.

22. I received a May 27, 2011 Specific RIF Notice that states that I did not receive an assignment and will be separated. When does this separation become effective? Can I apply for positions during the job posting period that begins on June 14? (Added 05/26/2011)

Your separation will become effective close of business on September 9, 2011.

Jobs will be posted in eCareer beginning on June 14, 2011. If you meet the eligibility requirements indicated in a job posting, you can apply. If you are selected for a position, a PS Form 50 specifying the new position and effective date will be processed.

23. I didn’t receive a May 27, 2011 Specific RIF Notice. Why not? Can I apply for positions during the job posting period that begins on June 14? (Added 05/26/2011)

Based on information available at the time, the RIF process was conducted in May as necessary in competitive areas impacted by the 2011 Organizational Redesign. Then, Specific RIF Notices were generated and sent on May 27, 2011 to the following categories of employees:

* employees who did not receive an assignment;
* employees who received a demotion to a lower-grade position; and
* employees who received a reassignment to a same-grade position.

If you did not fall within one of the three categories of employees identified above, you were not sent a Specific RIF Notice.

Jobs will be posted in eCareer beginning on June 14, 2011. If you meet the eligibility requirements indicated in a job posting, you can apply. If you are selected for a position, a PS Form 50 specifying the new position and effective date will be processed.

24. If I didn’t receive a May 27, 2011 Specific RIF Notice, is it possible for me later to receive one? If I did receive a May 27, 2011 Specific RIF Notice, is it possible for the result stated in the notice to later change? (Added 05/26/2011)

After the mailing of the Specific RIF Notices on May 27, 2011 and on or before the RIF effective date at the close of business on September 9, 2011, circumstances can change in a competitive area—for example, an employee’s preference eligibility status—that changes the impact of the RIF process on one or more of the competitive area’s employees. Therefore, it is possible for an employee who was not sent a May 27 Specific RIF Notice to later be sent one. It is also possible for an employee’s May 27 Specific RIF Notice to later be amended to provide a different result, or to be rescinded.

* Note: Please be aware that if you choose an April 30th effective date, you may experience a delay in receipt of your first interim annuity payment from OPM due to the short processing time involved.

NAPS Restructuring Document 03-24-11

“I am confident that we have developed a strong plan that takes a key step toward a leaner and less bureaucratic structure. One that is fair to our employees and one that will meet the future needs of our customers and the mailing industry,” Donahoe said.

About 7,500 positions will be eliminated across the organization through the redesign that also includes the closing of seven district offices and offers limited financial incentives to those who meet specific qualifications.

The seven district offices that are closing are Columbus, South East Michigan, Northern Illinois, South East New England, South Georgia, Big Sky and Albuquerque. District offices house only administrative functions and do not affect customer service, mail delivery, Post Office operations or ZIP codes. The functions of these seven districts will be assumed by district offices within close proximity.

A Voluntary Early Retirement and financial incentive programs will be offered to eligible employees. Employees must be 50 years old, with at least 20 years of service; or any age with at least 25 years of service to qualify for the incentive. Employees who accept the VER offer or already meet existing retirement qualifications will receive $20,000 paid over two fiscal years to separate from the Postal Service.

“It’s critical that we adjust our workforce to match America’s changing communications trends as mail volumes continue to decline,” Donahoe said. “At every step and with every change, our focus remains on our customers and continuing to provide outstanding customer service.”

Today’s announcement focused on the administrative and executive corps. Additional staff reductions will occur as the Postal Service makes necessary changes to its network and retail operations. The full scope and financial impact of these personnel actions should be realized in one calendar year – March 2012.

While cost savings will be realized, the main objective of the restructuring is to enhance and strengthen customer service and relationships. The realignment flattens the organization, enabling flexibility to more quickly adapt to changing market forces and continuing mail volume decline.

The Postal Service is streamlining operations and improving efficiencies across the organization in order to protect its ability to provide affordable, universal mail service. By modifying networks, consolidating functions and restructuring administrative and processing operations, the Postal Service is adapting to meet the evolving needs, demands and activities of its customers.

“Mail remains valuable. It is at the heart of a $900 billion industry that continues to drive commerce and the American economy,” Donahoe said. “We will continue to work with Congress and our employees to achieve the long-term, structural and legislative changes we know we need to remain a viable organization.”

via USPS News Release: Postmaster General Continues Efficiency Improvements.

In fact, today’s announcement is not expected to include anything about layoffs- the USPS has already outlined its plans to reduce 7,500 positions, some of which are already vacant, using the same RIF (Reduction in Force) and RIF avoidance processes it has used in previous reorganizations. What is expected today are the details of which district offices and positions are to be eliminated.

Postmaster General Pat Donahoe announced in January that the USPS would be eliminating administrative positions, and up to ten district offices. As the Post reported at the time,

Donahoe’s plans include a reorganization of the executive ranks he unveiled last week, closing up to 10 district offices nationwide and cutting about 7,500 positions through attrition as eligible workers retire. (emphasis mine)

Yesterday the USPS provided details of a $20,000 retirement incentive it was offering to employees who may be affected by the reductions. Once the affected district employees are notified, later today, the USPS will initiate what it calls “RIF avoidance”, a process that seeks to find vacant positions for anyone whose job is going away, but who isn’t ready to retire. Once the deadline has passed for accepting early retirements on April 25, the USPS will determine which, if any of the affected units may still need to conduct a Reduction in Force (RIF).

On May 25, any employees still in affected positions will receive what’s called a “Specific RIF” notice: “The notice advises employees that they are either placed in a different position in the new organization of the competitive area…, OR that they did not receive a placement offer and will be separated from the Postal Service.”

Even that notice, however, is not a “pink slip”, since affected employees would still be eligible to apply for vacant positions in two additional rounds of job postings. Only those employees, if any, who have not retired or been placed by September 9 would actually be separated. And those employees would have the option of remaining on the rolls in a non-pay status for 30 days to continue trying to land a new position. Separated employees would also have the option of reinstatement if a job they’re qualified for becomes available within two years of separation.

It’s certainly possible that some employees will find themselves without a position- but it’s far from certain that anyone will actually be let go involuntarily. The bottom line is that big changes are coming, but we’re still a long way from layoffs.

2011 Organizational Redesign Information – At-A-Glance.

By the way- someone in the USPS web team needs spell check:

“Over the past 8 weeks, we have been taking a careful look at our internal structure — the way we position our people — and determining the best way to align the organization to succeed in a more competitive world,” said Donahoe. “We also have been making some tough but necessary decisions that will enable us to better meet the needs of our employees, our customers and the American public.”

Donahoe said a strong plan has been developed that will result in a leaner, less bureaucratic structure that creates greater efficiencies among managerial and administrative functions.

The announced redesign reduces administrative layers and achieves a 20 percent reduction in authorized administrative office complement and Postal Career Executive Service (PCES) positions.

Seven districts will be closing. A general announcement identifying the districts will be made March 24, after employees in those districts are notified.

Voluntary Early Retirement (VER) and financial incentive programs will be offered to eligible career non-bargaining employees in targeted groups at Headquarters, Headquarters-related Field Units, Area Offices and Customer Service District Offices (Administrative).

* The incentive program is $20,000 and is offered on a first come, first-served basis to eligible employees who choose to leave on the May 31, 2011, effective date through a VER, optional retirement or voluntary resignation. The incentive will be paid in two equal payments of $10,000 distributed in November 2011 and November 2012.

* To be eligible for the incentive, employees must begin the optional retirement process or submit voluntary resignation by the deadline of April 25, 2011. The same date, April 25, also is the irrevocability date for employees who accept the VER offer.

* Disability retirements and Federal Transfers are not eligible for the incentive. Employees in a probationary status as of March 23, 2011, are not eligible.

* Employees already in progress as of March 23, 2011, for optional retirement or voluntary resignation with a scheduled retirement or separation date on or before May 31, 2011, will be permitted to retire or separate on the scheduled date and be eligible for the incentive.

* Further details of the VER and incentive programs will be available on the Organizational Change website.

Donahoe said employees will be given comprehensive information to help them make the best decisions about their future. “I know change can be challenging,” he said. “I thank all of our employees for their continued dedication and focus on continuing to provide high levels of customer service while the organizational redesign proceeds.”

Efforts in the coming weeks and months will help the Postal Service become a leaner, faster and smarter organization, Donahoe said. “The redesign will improve our financial situation, ensure that we are better able to compete for customers, and provide greater value and service to the American public.”

via USPS News Link – MARCH 23, 2011.

For more, see the USPS Organizational Change web site.