Senate Panel Approves Postal Legislation That Will Severely Weaken USPS

A Senate committee approved postal legislation that would severely weaken the USPS, by a vote of 12 to 5 on Nov. 9.

The 21st Century Postal Service Act (S. 1789) would give the USPS short-term financial relief, but it also would force the agency to dismantle its retail and mail-processing network, APWU President Cliff Guffey said.

“Mail will be delayed as a result of the elimination of hundreds of mail processing facilities and thousands of post offices, stations and branches,” he said. The bill also would allow the USPS to eliminate  Saturday mail delivery after two years and would degrade delivery to customers’ to doors no later than 2015.

“These drastic cuts will severely damage the Postal Service. It will make the USPS less relevant and drive away customers,” Guffey said.

The bill would return approximately $7 billion in overpayments the USPS made to the Federal Employees Retirement System (FERS), but it would not return $50 billion to $75 billion in overpayments to the Civil Service Retirement System (CSRS). Two independent actuarial studies concluded that the USPS has overpaid the CSRS account by $50 billion to $75 billion.

Earlier bills introduced by Democratic Sen. Tom Caper (DE) and Republican Sen. Susan Collins (ME) both contained provisions that would return the CSRS overpayments, but the new “compromise” bill excludes that provision. (The Government Accountability Office [GAO] issued a report in October that did not specifically refute the overpayments, but concluded that the overpayments did not violate federal law.)

In addition, although the bill would restructure required payments to pre-fund healthcare benefits for future retirees, it would not do enough to relieve the Postal Service of the pre-funding obligation, Guffey said. No other government agency or private company is required to make these payments.

“By failing to provide more substantial financial relief, S. 1789 will harm the USPS and its customers,” the union president said. “The Postal Service desperately needs funds to modernize its mail processing and retail networks, so it can continue to serve the American people.

Several other provisions of the bill are deeply troubling to the APWU:

It would dramatically reduce the compensation of employees who are injured on duty, once they reach retirement age.

The bill also would require arbitrators in postal labor negotiations to consider the financial health of the USPS. Postal unions have denounced this provision as an attempt to skew contract negotiations in favor of management by giving greater emphasis to financial considerations, at the expense of employees.

“We will work to improve the bill when it comes to a vote before the full Senate,” Guffey said. “APWU members must remain vigilant and let their senators know about our concerns.”

APWU: Short-Term Relief, Long-Term Damage, Senate Panel Approves Postal Legislation

8 thoughts on “Senate Panel Approves Postal Legislation That Will Severely Weaken USPS

  1. son in other words, don, you think PMG Donuthole is doing a great job and knows what he is doing…. hahahhahahhahahahhahahahahhahahahahhahahahahhaha

  2. Let’s calm down and really look at this. We get back 7.9 Billion, contracts honored, early out offer, a reduction of force over 3 years, no solvency authority, and a moratorium on no- Saturday delivery. What’s not to like and if the P.O. respects the contract it mean no lay offs, no pay cuts, binding arbitration and you keep your retirement. Am I missing something here? Closing mail distribution centers that are not needed because there’s machines that do the work in one that three could do makes sense to me. And that’s what a lot of the closing are about. Sorry if that inconveniences any one.

  3. no one looks at there mail on saturdays, the union keeps crying some private company will still our buisness BULLSHIT NO COMPANY WORKS ON SATURDAY THAT WOULD STEAL OUR BUISNESS, IF WE WOULD ELIMINATE SATURDAYS THE SAVINGS WOULD BE 30 BILLION OVER 10 YEARS,,THATS HUGE SAVINGS THAT WONT HURT OUR BUISNESS MODEL, THE AMERICAN PEOPLE ARE HAVING FUN AND ENJOYING SPENDING SATURDAYS WITH THERE FAMILIES THEY DEFINETLY ARE NOT WAITING FOR SOME OUTDATED JUNK MAIL ON SATURDAYS THE REASON THE UNIONS ARE CRYING BECAUSE THEY WILL LOSE UNION DUES PLEASE CUT SATURDAY DELIVERY DUE THE MATH

  4. Don’t forget this has to get past the “Do Nothings” in the house. Issa and Ross have already had their bill passed out of committee and waiting a vote in the full house. This will be good for us older workers if they pass it. I’m gone!!!!!!!

  5. Unions have little to do with workers. The only reason they allowed pse workers is that they can take union dues from them, at the cost of career employees of course. People say that we didn’t take a pay cut, i beg to differ, when our health benefits start rising from an apwu agreement this is actually a decrease in pay. Is there a conflict of interest if a pse can only get apwu health benefits and the apwu plan was the only on “agreeed’ to not go up in price for employees. Sounds like APWU lining their pockets at our expence.

  6. What a bunch of baloney. I support this bill. 1789 is by luck the best possible outcome out if all of the suggested changes. This bill would save the postal service giving it some muscle to really provide safe and much more efficient deliveries while protecting long term employees from the other options on the table. I thank congress for this great bill and beg the white house to sign up on it ASAP. There are so many people that want to retire.the only thing holding them back is the signing of this bilk. Those retirements will save many more rookie jobs than anything the unions are proposing. I hate the stupid NALC and APWU you guys must be run by the devil himself to be opposing a bill that would save our company and our way of life. Do not be fooled into siding with the unions blatant and irresponsible lies. A
    They have shown beyond any doubt that their only concern is protecting their dues purses not your way of life.

  7. Guffey! You state its a bad Bill! What about the contract that you negotiated this past summer! No COL For four Years!No pay increases for two years! You sold us down the river with PSE’s!
    Don’t screw up the incentives that will be offered soon! People with 30 years deserve more but we will take whats offered and leave this disfunctional organization to the back -room private sector deals that gots us in this mess!

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