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

APWU News Bulletin 03-2012, Jan. 27 2012 | PDF

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.

“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.
  

• Call Your Senators: 202-224-3121 (Capitol Switchboard) [Click here for direct #s] Tell them you oppose S. 1789 as it is currently written

  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.

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House Republicans Attack Postal and Federal Retirement Benefits

APWU Web News Article 131-2011, Dec. 14, 2011

The House of Representatives voted 243-193 on Dec. 13 to pass the so-called “Middle Class Tax Relief and Job Creation Act of 2011,” which would cut take-home pay for postal and federal workers by increasing their contributions to the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS). The bill also would slash unemployment benefits, place unreasonable burdens on unemployed workers, and cut vital healthcare programs.

Voting in favor of H.R. 3630 were 224 Republicans and 10 Democrats. Fourteen Republicans and 179 Democrats voted no. Action on the bill now moves to the Senate.

The bill was introduced by Rep. Dave Camp (R-MI), and co-sponsored by Reps. Spencer Bachus (R-AL), Frank Lucas (R-OK), Dan Lungren (R-CA), Ileana Ros-Lehtinen (R-FL), and Fred Upton (R-MI).

The bill also would change the calculation of pensions for new hires with less than five years of creditable service and eliminate the FERS annuity supplement, which is designed to provide a benefit approximating the pension retirees would receive once they become eligible for earned Social Security benefits.

If enacted into law, employee contributions to CSRS would increase from the current rate of 7 percent to 8.5 percent of salary over a three-year span beginning in calendar year 2013. Contributions for employees covered by FERS would increase from 0.8 percent to 2.3 percent over the same period.

The bill would increase the contribution rate for postal and federal employees hired after Dec. 31, 2012, with less than five years of creditable service, from the current rate of 0.8 percent to 4 percent of salary. The pension formula for these employees would be based on the employees’ “high-five” years of service instead of the current “high-three” formula. Pensions for current employees’ would continue to be based on the “high-three.”

President Obama issued a statement before the House vote threatening to veto the bill if it reaches his desk.

"APWU members are encouraged to immediately contact their senators and urge them to oppose this unfair and misguided attack on postal and federal workers when the bill is considered in the Senate," said APWU Legislative and Political Department Director Myke Reid.