WASHINGTON- Seeking to prevent another taxpayer bailout, Rep. Darrell Issa, R-Calif., chairman of the House Committee on Oversight and Government Reform, introduced today legislation to implement sweeping, structural reforms of the United States Postal Service (USPS). The legislation represents the most fundamental reform of the postal service that has been proposed since USPS was first created from the old Post Office Department.
“The Postal Service lost $8.5 billion last year. It is going to lose, at least, $8.3 billion this year. And it is projected to lose $8.5 billion the year after that,” Issa said. “Congress can’t keep kicking the can down the road on out of control labor costs and excess infrastructure of USPS and needs to implement reforms that aren’t a multi-billion dollar taxpayer funded bailout.”
The legislation creates the Postal Service Financial Responsibility and Management Assistance Authority (Authority) which will have a broad mandate to restructure the Postal Service and reduce costs in order to bring the institution back to fiscal solvency when the Postal Service goes into default to the Federal government. The Authority will be disbanded once USPS meets several benchmarks that ensure financial health.
The legislation empanels a separate body, the Commission on Postal Reorganization (CPR) to review postal infrastructure and recommend closures and consolidations to Congress, that will ultimately save the Postal Service at least $2 billion a year. If Congress does not reject the CPR’s recommendations, they become law. The legislation will also remove several legal hurdles that USPS currently faces when it comes to reducing costs, including allowing financially unsustainable retail postal facilities to be closed.
“This legislation encourages USPS to modernize its retail network and enables USPS to act more like a business,” Issa said.
The legislation will eliminate the benefit disparity between the postal workforce and other federal employees, which would have saved $700 million in fiscal year 2010, and it will ensure that postal wages are comparable to the private sector. The bill will also make several changes to USPS revenue and contracting policies.
Issa introduced the bill the day after USPS announced it would stop paying the employer share of its employees’ retirement fund. “USPS has felt the need to give themselves a taxpayer-funded bailout. This unprecedented action indicates the urgent need for these reforms,” Issa said.
The changes in the Postal Reform Act that can be currently quantified will save USPS at least $6 billion per year when fully in effect. The Authority will be required to make additional adjustments to bring costs into line with expenditures in order to avoid the prospect taxpayer bailouts in the future.
Highlights of the Postal Reform Act include:
• Postal BRAC: Creates the Commission on Postal Reorganization to eliminate costly excess capacity and facilities. Over its first year the CPR will recommend closures worth $1 billion/year for post offices. Over the second, it will recommend $1 billion/year closures for mail processing and a 30% reduction in management facilities.
• Solvency Authority: Creates an Authority modeled on and named after the DC Control Board with a mandate to cut costs, protect universal service, and return USPS to financial solvency. The Authority is triggered into existence when USPS goes into default on any obligation to the federal government for more than 30 days. It has the authority to require renegotiation of existing collective bargaining agreements and the power to unilaterally modify those agreements if renegotiation fails. To accomplish its mission, the Authority may use a supplemental borrowing authority of $10 billion, backed by USPS property as collateral.
• 5-Day Delivery: Allows USPS to move to 5-day delivery of mail.
• Pay Comparability: Clarifies existing law to include wages and benefits in determining total compensation comparability with the entire private sector.
• Health and Life Insurance: Requires USPS employees to pay the same health and life insurance premium percentage as other federal workers. This provision is phased in to apply to union employees after their current bargaining agreements expire.
• Mediation Arbitration: Modifies the collective bargaining process to the 2003 Presidential Commission recommended mediation-arbitration process. Also requires arbitrators to take into account total compensation comparability and the financial situation of the Postal Service in any decision.
• Cost Coverage: Requires all market-dominant products to cover costs, while maintaining the CPI price cap.
• Underwater Products: For classes below 90% cost coverage, rates are increased by 5% annually above the price cap.
• Non-Profit Discount: The non-profit advertising discount is reduced by 5% a year from 40% to 10% of the most closely corresponding class.
• Political Committees: Ends the rate preferences for national and state political committees.
• Advertising: Authorizes USPS to sell advertising space on USPS facilities and vehicles. All advertising must maintain at least 200% cost coverage and be consistent with USPS’s integrity.
• State Government Services: Authorizes USPS to provide services for state governments that enhances USPS’s value to the public. Such services must not interfere with or detract from the value of postal services.
• Contracting accountability and transparency: Reaffirms accountability for delegations of contracting authority and requires their disclosure when outside the functional contracting unit. Requires disclosure of most noncompetitive purchase requests above $250,000.
• Contracting ethics: Requires USPS to establish regulations to prevent conflicts of interest in the contracting area, with ethics officials reviewing any ethics issues that arise.
Read a copy of Issa’s legislation here .
The language used by 9 out of 10 comments really shows the integrity of the postal workers. The noose around USPS that they call a union needs to be busted up before the USPS is crushed by its weight.
If you vote Republican YOU now get to feel the results.
No good union man would ever vote Republican, ever.
This guy issa needs to go i agree that their pay should be in line with the private sector, also remember every member of congress and the house recieve FREE medical for LIFE after they r voted OUT. postal workers do not get paid alot like they say we do it is the miss mamagement of money that continues to put use in the fore front of the nation. KEEP DELIVERING THE MAIL.
I think the Senators and Congressman plus the President should also share in the pain. At least a 25% pay cut. However Issa should pay more since His net worth has been estimated at more than $250 million, making him the “richest member of Congress”.
More information from mister do as I say not as I do:A fellow soldier, Jay Bergey, claimed that Issa stole his Dodge Charger in 1971 while they were serving together and that, the day after he confronted Issa, the car was found abandoned on a nearby expressway. Asked about this charge in 2011, Issa denied it and suggested it was possible that other soldiers stole the car or that Bergey, whom he claims had a drinking problem, had abandoned it himself while intoxicated.”[3]
Twice during that year he was arrested. In March, Issa and his brother William were charged with stealing a Maserati from a dealer’s showroom in Cleveland. Issa says it was a matter of mistaken identity by the Cleveland Heights police; the case was later dismissed.[3 This is what leads this country!!!
Simply put, Why doesn’t the “Honorable Congressman” introduce some more legislation on “re-aligning” the pay and benefits(especially retirement) of our elected officials to be more “inline” with the private sector? I know, fat chance! Oh well, as always, they look to the real work-forces to blame and make-up the deficits that our gvt. has created.
Simply put, Why doesn’t the “Honorable Congressman” introduce some more legislation on “re-aligning” the pay and benefits(especially retirement) to be more “inline” with the private sector? I know, fat chance! Oh well, as always, they look to the real work-forces to blame and make-up the deficits that our gvt. has created.
Simply put, Why doesn’t the “Honorable Congressman” introduce some more legislation on “re-aligning” the pay and benefits(especially retirement) to be more “inline” with the private sector? I know, fat chance! Oh well, asalways, they look to the real work-forces to blame and make-up the deficits that or gvt. has created.
Wake up Issa! The USPS is NOT a business and can NOT be run like one. IT IS a GOVERNMENT SERVICE mandated by Congress to deliver to EVERY HOUSE in the Country. If it were private millions of Americans would lose their delivery or pay a lot more for it. Turn the USPS back into a full Government agency. Then when it is right sized, Congress can go back to stealing $$$ from it!
All you morons are just like the Obama administration. Absolutely no idea of your own on how to fix anything, but condemn anything that someone else comes up with on how to solve the problem. Get your head out of your asses, things can’t keep going as they are without some drastic action.
Mmmmmm…….Let’s get back to Stretch Pelosi. She supports union workers so well, she won’ t use them in her own business.
Any of you idiots who think the Democraps are for the working man, come to Illinois.
Who are the f$#king idiots in this guy’s district that keep electing a completely corrupt a$$hole like this?
Health and Life Insurance: Requires USPS employees to pay the same health and life insurance premium percentage as other federal workers. This provision is phased in to apply to union employees after their current bargaining agreements expire.
How about allowing USPS employees to pay the same health and life insurance premium percentage as Congress and the Senate politicians and have access to the same health coverage since it is the citizen (which includes USPS employees) who actually pay for it.
Someone just put the guy out of the Postal Services misery and be done with it.
REPUBLITARDS MUST GO…. REMEMBER THIS YOU RIGHT WING MORONS THAT VOTED THEM IN. BAILOUTS FOR MEGA BANKS, SHIT FOR YOU THE AMERICAN WORKFORCE. WAKE UP AMERICA.
congress man Isaasshole forgets one thing, The Post Office is not a business but a service to the American People. Concentrate on delivering the mail and give the American people the service they deserve. Stop huge discounts to bulk mailers, end pfp, get rid of 70% of management. Hive full time employees with descent pay and benefits and a chance to live the American dream. Republicans SUCK!!!!!!!!!!!!!!!!!!
I Stole Several Autos= I S S a Comparable maybe UPS they make more than I do. hmmm maybe he’s got something after all. I hope it blows up in his face.
Pay Comparability: Clarifies existing law to include wages and benefits in determining total compensation comparability with the entire private sector. They say retail window clerks at the post office are 50% overpaid, should be about $12.50 p/hr and carriers about 20% overpaid, should be about $20.00 p/hr. Management should not be hourly and not paid overtime. Management should be salary with a 20% pay cut. Case closed.
Republicans have got to go in 2012 if the working people are going to survive
Republicans are no different than democrats. Corruption and ineptness is not discriminate. Calm down. Hell, let’s go fishing. We, the people have 0 control on the direction of anything other than our own little family environment. Oh, I can.t help it, I.ve got to make a negative statement. Joe Biden could.nt pluck a feather from his butt if he was a peacock.
Issa is an Assa!
He comtinues to misperceive reality.I guess He and his rich buddies need more money!
Issa’s criminal record alone would keep him from being employed by the USPS. What were the California idiots thinking when they elected him to Congress? Have any cars been stolen around the House of Representatives lately?
Issa and the other GOP TEA BAG FREAKAZOIDS continue to prove that they have no idea on how to govern.
More layers of bull shit and wads of Congressional Toilet Paper.
As days go by, the Republicans grow more blatant in their hatred of the American working man. They CONTINUE TO USE THE CONSERVATIVE TOOL of “comparing the wages and benefits” of American Workers to THE LOWEST MOST UNBENEFITED WORKERS IN AMERICA….quick find out how much workers at McDonalds make and use it as a guideline for the rest of America.
THIS IS WHAT THE CURRENT REPUBLICAN TEA BAG PARTY DOES…
THIS IS WHO THEY ARE….
IT’S IN THEIR DNA….AND THE ONLY AMERICANS THAT INTEREST THEM ARE THE MEGA RICH(KOCH BROTHERS) AND CORPORATIONS.
Wake up America !!
YOU ARE BEING TAKEN TO THE CLEANERS BY THESE FREAKISH MORONS WITH NO HEARTS OR MINDS.
KICK THESE PEOPLE TO THE CURB BEFORE THEY DO IT TO YOU….
Thank you Congressman Issa for reinventing the wheel now get back to work pillaging and raping your constituents.
Let’s face it. The overpayments are already gone into the “Money Pit” of Congrees. We won’t EVER see that back AND that is why they won’t stop taking them. I think the final goal is PRIVATIZATION with all workers making low wages. I’ve seen this coming. Hopefully the American public will come to see the light. With Congress it is all smoke and mirrors anyway.
Gee and just when I thought Congress, in particular Republicans as concerns the Postal Service, couldn’t be any dumber…they continue to prove me wrong…they are all IDIOTS!
How about letting employees with 20 years service retire without penalty and a lump sum of 250,000. The postal service would still save a ton of money and could hire our sevicemen and women when they need a job when they get home!
Why don’t Rep Issa talk about ther salary nand his counterparts are raking in compared to the private sector!!! Why do Congress Republicans want all Americans making minnimun wage? This is not a bailout, this is money the Postal Service have already paid in to the retiree pre-fund account, that no other federal agency is required to do!!! Stop lying to the American people. The Post Office is a very important agency to theAmerican people to insure that every family receiver their mail on a daily and inexpenisive manner!!
This is a terrible piece of legistation, it appoints another oversite authority (they must be paid by someone) to oversee $10 billion of borrowing using Postal Service property as collateral, that money will be gone in two years because of the perfundng mandate for CSRS/ FERS retirement health care benefits at $5.5 billion per year, they will then liquidate the assets and sell off the Postal Service to their political supporter friends in the private sector.