Postal Service Looks To Cut 40,000 Jobs In First Layoff In History

[KevinD]

SHREVEPORT, LA (KSLA) - "We lost 2 billion dollars and like any other business we have to stay afloat."

http://www.ksla.com:80/global/story.asp?s=9247633

[Show-me]

This was posted today, don't know how reliable it is.



Nov 10 2008 10:59 am
Chicago Postal Managers Meeting On FSS, Pay Freeze, VER (http://www.postalreporter.com/news/2008/11/10/chicago-postal-managers-meeting-on-fss-pay-freeze-ver/)
This is what was discussed at a meeting of all District Managers and Plant Managers held in Chicago last week:
7000 to 9000 routes have to be removed in FY 09.
Two rate increases in FY 09 packages will go up 5% in January, 1st Class will go up 4.8% in May.
Base pay will be frozen.
If we stop Saturday delivery it will be a savings of 3.5 - 5.0 billion, but we can’t do that by ourselfs, has to go through congress.
DPS goal will be 95% in FY09.
Mail will have to be finished in processing by 0600AM.
FSS orders have been cut, so if your district was getting 4 or five you will be getting only three now.
The volume we are working now is the same as it was in 1977.
Letters are going out this week informing clerks they are now going to be carriers.
We need to cut our compliment by 64,600 employees this FY.
Only 8,500 took the VERA, the goal was 40,000.
HQ will be reduced by 1,200 positions.
Registry jobs will not be posted as registry only jobs, they will have other duties including registry.
Pay is frozen for all executive positions.
SOURCE: http://www.lettercarriernetwork.info (http://www.lettercarriernetwork.info/) (scroll down)

[McDuck]

The postal service is also offering early retirement packages to workers over the age of 50 who have more than 20 years on the job. But according to pepper it may not be enough. "The preliminary numbers look like it's not going to be enough and we may have to do something else."

Does you know the details of this offer to FERS people? For example like for someone 51 yo and has 24 years and is in plain FERS ?

[KevinD]

Does you know the details of this offer to FERS people? For example like for someone 51 yo and has 24 years and is in plain FERS ?

What do you do for the PO?

I don't know if this will help answer your question or not but theres some info over on FederalSoup.

http://community.federalsoup.com/4/OpenTopic?a=tpc&s=4944011921&f=7604055441&m=1831021071

[McDuck]

What do you do for the PO?

I don't know if this will help answer your question or not but theres some info over on FederalSoup.

http://community.federalsoup.com/4/OpenTopic?a=tpc&s=4944011921&f=7604055441&m=1831021071

I don't work for the PO. I'm interested in hearing if there is actually a retirement for someone in FERS before they are 58 yo.

[nnuut]

Bummer folks. I've already been BRACed, and was forced to move to Georgia that was in 1995. If age 50 with 20 years or 25 years at any age you get VSIP VERA. I know many USPC folks, best of luck to you all.
Norman

[Show-me]

Does you know the details of this offer to FERS people? For example like for someone 51 yo and has 24 years and is in plain FERS ?

This offer is open to employees in those positions who meet the OPM conditions, and who are at least 50 years of age with 20 years of creditable federal service or any age with 25 years of creditable federal service.

[Show-me]

http://www.google.com/hostednews/img/ap_logo.gif?hl=en
Go to Google News (http://news.google.com/news?hl=en-US)




Postal Service investigates boss's VIP mortgage

By MATT APUZZO – 1 day ago
WASHINGTON (AP) — The Postal Service is investigating whether the nation's postmaster general improperly received a sweetheart deal on a mortgage from Countrywide Financial Corp., the chairman of the service's governing board said.
Postmaster General John E. Potter is one of several prominent current and former U.S. officials who received discounts and other benefits from the mortgage giant. The Postal Service has hired an outside investigator to review the deal, which reportedly included one shaved point and waived fees for Potter's $322,700 loan.
"We're taking it seriously enough that we wanted it reviewed and we didn't want it done internally," the chairman of the Postal Service Board of Governors, Alan Kessler, told The Associated Press.
Details of Potter's deal with Countrywide was first reported by Conde Nast Portfolio magazine earlier this summer. The disclosure touched off calls for a Capitol Hill investigation into how prominent lawmakers and others received VIP loans.
Countrywide, a leading subprime lender, is at the heart of the mortgage crisis. It has been criticized for using initially low teaser rates that later ballooned higher than borrowers could afford. The company agreed in January to be acquired by Bank of America Corp. for about $4 billion in stock.
Potter did not return an e-mail seeking comment, and a Postal Service spokesman said the postmaster general would have no comment. Potter told the magazine in August that he did not know he was getting a deal on the loan.
Kessler did not say how much the investigation would cost the Postal Service, which is cutting hours and overtime for its employees after finishing its fiscal year $2.8 billion in the red. He said the board was working to keep costs down.
"But something like this is serious enough where I don't want someone to do a cut-rate investigation," he said. "We want a professional review."
He did not say how long the investigation would take.
To run the investigation, the Postal Service hired Abbe Lowell, a Washington defense attorney who has taken on some of the city's most sensitive and high-profile cases. Lowell said he would not discuss the matter and referred questions to the Postal Service.
Sens. Christopher Dodd, D-Conn., and Kent Conrad, D-N.D., have acknowledged receiving mortgages through the VIP program but have said they were unaware of any favorable treatment. Dodd was instrumental in crafting a $700 billion bailout for the financial industry.

[weatherweenie]

http://www.ksla.com:80/global/story.asp?s=9247633

The postal service says we were given misinformation on our original story on October 27th...saying nationwide job cuts of 40,000 people is incorrect.

[Show-me]

Yea, I heard that too. The lay off is contractually possible, but the USPS says they are not planning lay offs. What "was" discussed at a managers meeting in Chicago and reveled through a leak was the reduction of employee's, 5k to 7k routes, and the elimination of Saturday delivery.

http://www.postalreporter.com/news/2008/11/10/chicago-postal-managers-meeting-on-fss-pay-freeze-ver/

[Show-me]

Eliminating 9,200 routes will have a major impact. I know from observation that a route adjustment in a large office is like a nuke going off in your work hours. Sucks to be anyone involved with that mess.




Nov 20 2008 01:42 pm
USPS Says It Needs To Eliminate 9,200 City Carrier Routes in FY 2009 (http://www.postalreporter.com/news/2008/11/20/usps-says-it-needs-to-eliminate/)
Association for Postal Commerce (http://postcom.org/)
“From today’s MTAC meeting: ‘The USPS today at the MTAC meeting announced an unprecedented route adjustment process as a result of a joint effort between the USPS and the NALC. The USPS said it needs to eliminate 9200 city carrier routes in FY 2009 in order to meet its budget goals. It said the route adjustments could impact 50 million addresses, 85,000-90,000 carrier routes and 5,000 delivery units. The USPS already has eliminated 1100 routes a change that took effect November 15. Adjustments will begin again on January 5 and continue until early April. The USPS urged mailers to update their address lists on a monthly basis over the next 4-5 months because a significant number of routes may be changed or eliminated. The USPS plans to post the information on its RIBBS web site as the adjustments are made.”


http://www.postalreporter.com/news/2008/11/20/usps-says-it-needs-to-eliminate/

[James48843]

Postal Service may cut 120,000 jobs



Postal Service May Cut 120,000 Jobs

By THE ASSOCIATED PRESS

Published: August 11, 2011 at 6:33 PM ET

WASHINGTON (AP) — The financially strapped U.S. Postal Service is considering cutting as many as 120,000 jobs.

Facing a second year of losses totaling $8 billion or more, the agency also wants to pull its workers out of the retirement and health benefits plans covering federal workers and set up its own benefit systems.

Congressional approval would be needed for either step, and both could be expected to face severe opposition from postal unions which have contracts that ban layoffs.

The post office has cut 110,000 jobs over the last four years and is currently engaged in eliminating 7,500 administrative staff. In its 2010 annual report, the agency said it had 583,908 career employees.

More:

http://www.nytimes.com/aponline/2011/08/11/us/politics/AP-US-Postal-Problems.html?_r=1

[tsptalk]

Postal Service may cut 120,000 jobs

The link required me to login so I couldn't read it, but here is the Wasington Post's headline on this:

Postal Service proposes cutting 120,000 jobs, pulling out of health-care plan (http://www.washingtonpost.com/politics/usps-proposes-cutting-120000-jobs-pulling-out-of-health-care-plan/2011/08/11/gIQAZxIM9I_print.html)

"The financially strapped U.S. Postal Service is proposing to cut its workforce by 20 percent and to withdraw from the federal health and retirement plans because it believes it could provide benefits at a lower cost."

Better plan than the FEHB healthcare? Interesting.

[KevinD]

Obamacare? :worried:

[James48843]

Cut health care AND retirement. I presume they mean taking Post Office out of FERS. That should be an interesting fight.

Good thing I get first class mail for just .44 cents, AND corporations get junk mail at less than half that price.

That's right- While you get to pay retail .44 cents, some bulk-mailers get to send YOU junk mail, for as low as 13.9 cents a piece.

Thank goodness for discounted junk mail.

[KevinD]

Everyone should fill out those business reply postcards to request free catalogs.

I'm being serious... :worried:

[James48843]

Now they are upping the number to 220,000 jobs cut-



U.S. Postal Service looks to cut 220,000 jobs

WASHINGTON (Reuters) - The U.S. Postal Service would eliminate about 220,000 full-time jobs and shutter about 300 processing facilities by 2015 under a proposal to bring its finances in order, a postal official said on Friday.
The Postal Service needs to cut payrolls to about 425,000 employees and take over its retirement and health benefits instead of participating in federal programs, Postmaster General Patrick told Reuters.

The mail carrier, which receives no taxpayer funds, has been struggling with falling mail volumes as people communicate increasingly by email and pay bills online.

The agency reported a $3.1 billion net loss in its most recent quarter. It expects to be insolvent next month and default on a $5.5 billion retiree health payment.


More:

http://news.yahoo.com/postal-looks-cut-220-000-jobs-175217611.html

[Warrenlm]

What's the solution? The Chinese have their own postal service and don't want to lend for ours. IMHO the Defense Department, all Branches and DOD Agencies, should be initiating hiring freezes and reducing military and civilian staffing in an orderly way now to glide slope the numbers without hurting people. But, they'll do like the PO, hand out RIF notices and people will get hurt. Even your bud Beckles, when asked what to do in order to keep up transfer payments to individuals to avoid London style riots, said cut Defense.

[James48843]

[edit]...You make it sound like it's the big corporations fault for their bulk mail rates and screwing YOU for the higher postal rates for your first class mail...It is the USPS that sets those rates, not the big corporations….geesus!

Gee there Buster- who do you think sets postal rates?

Hint- It is NOT the USPS.

If USPS could set their own market-based postal rates, we wouldn't even be having this conversation.

I'm not complaining about .44 cents for a first class letter. I'm happy to pay that, and then some, since the U.S. Postal Service is FAR FAR superior to private corporations. Let's see FEDEX or UPS try to deliver a letter for .44 cents.

I'm pissed that junk mail corporations can pay just .136 cents for the same service that I have to pay .44 cents for.

Why do we subsidize corporations?

How about we take care of PEOPLE instead of corporations?

[KevinD]

Maybe it's because corporations send out hundreds of thousands of pieces of mail. 14989

It's called bulk rate because they mail in bulk. Not to mention that it's pre-sorted.14990

[Buster]

Gee there Buster- who do you think sets postal rates?

Hint- It is NOT the USPS.

If USPS could set their own market-based postal rates, we wouldn't even be having this conversation.

I'm not complaining about .44 cents for a first class letter. I'm happy to pay that, and then some, since the U.S. Postal Service is FAR FAR superior to private corporations. Let's see FEDEX or UPS try to deliver a letter for .44 cents.

I'm pissed that junk mail corporations can pay just .136 cents for the same service that I have to pay .44 cents for.

Why do we subsidize corporations?

How about we take care of PEOPLE instead of corporations?
Again you don't know what you're talking about..Like KevinD said; Since Corps are mailing zillions of pieces of mail, the USPS sets the rate for such large amounts of mail..Like any other facets of buisness, the more you buy of a widget, the less you pay per unit price..nothing new..so get use to it, it's a fact of life in business economy 101..

You'll just have to start making a better living for your self, other than hoping Uncle Sam sends you a pay check every two weeks from taxpayer taxes....Ooooh Noooo Mr Bill..!

[James48843]

Again you don't know what you're talking about..Like KevinD said; Since Corps are mailing zillions of pieces of mail, the USPS sets the rate

Once again Buster, if you think the USPS sets the postal rates, you are ignorant (http://www.merriam-webster.com/dictionary/ignorant).



Rates are set by the Postal Rate Commission, (Postal Regulatory Commission), a group appointed by the President to fixed terms of service, and are totally independent of the USPS. It's a five member panel. The current panel was appointed by....now get this- by George W. Bush for two of the members, and 2 were appointed by President Obama. A fifth panel member is awaiting confirmation by the Senate - but the Senate is dragging it's feet on all of President Obama's nominations.

They are lobbied very heavily by the corporations to reduce rates- see

http://www.prweekus.com/postal-commission-denies-rate-increase/article/180221/ about the last Postal Rate increase request which was DENIED, and the 900 lobbing corporations who fought a 2 cent rate increase request.

NO, BUSTER, THE USPS DOES NOT SET THEIR OWN RATES.

The good news here, Buster, is that your ignorance can be cured by education.

[James48843]

A little education for you Buster-

This is who turned down the .2 cent Postal rate increase request that the USPS WANTED to get:

Two were republican, two were dems. The 5th seat is currently awaiting Senate confirmation.




Chairman Ruth Y. Goldway (D)
Nov, 22, 2014



Vice Chairman Mark Acton (R)
Oct, 14, 2010


Commissioner Nanci E. Langley (D)
Nov, 22, 2012


Commissioner Tony Hammond (R)
Oct, 14, 2010




Awaiting Senate Confirmation is Robert Taub, who was nominated earlier this year.
He has not yet been confirms- his nomination, like many others, is awaiting Senate action.

[James48843]

And here is a story about how the law operates when the USPS wants to do a rate increase.
http://www.dmnews.com/mailers-plan-coalition-to-fight-postal-rate-increase/article/173179/

They are limited by law to no more than inflation, UNLESS there are :extraordinary or exceptional circumstances". . Guess what? Last year, because there is no inflation, the USPS was prohibited from being granted a rate increases by law, unless they could convince the Postal Regulatory Commission of some "extrordinary or exceptional circumstance". More than 900 CORPORATIONS lobbied against the increase, and guess what? The Commission denied the USPS request.

Yes, the CORPORATIONS- the MONEY-- own everything in this country.



Everything.

And they will continue to squeeze the little worker, because you all are convinced that things will get better if we just destroy Unions, teachers, and anything that could possibly lift the educational accomplishment in this country- and thereby the benefits for employees (No, it won't, but that won't stop the money people from doing it).


http://www.youtube.com/watch?v=y6i9OJ3SWLA

[KevinD]

Yes, the CORPORATIONS- the MONEY-- own everything in this country.


Including the government.

[Show-me]

.................................................. .. here it goes.

USPS financial woes stem from a perfect storm of events.
1. Internet
2. 2008 recession which dramatically reduces standard (junk) mail volumes. Junk mail is the grease on the skids.
3. Higher fuel cost
4. Higher health insurance rates,
5. Bad legislation, prefunding retirees health care at a unreasonable rate not used by anyone in the pivate or public sector.
6. Contract requirements.

Lets look at the business facts.
1. USPS revenue last year $67 billion, so that means we have cash flow and there is money to be made.
2. USPS loss last year $8.5 billion, see above.
3. No lay off clause in contract. While every USPS competitor was laying off, cutting wages, and suspending 401k contributions to keep the company viable the USPS continued to march.
4. Over sized retail network. Way too many rural Post Office's. A office that cost USPS $70,000 to operate and brings in $4,000 to $6,000 in revenue. That rural PO need to sell $1400 in stamp a week to make a profit.
5. Six day delivery standard. Going to 5 like our competators could save $3 billion.
6. Right sizing pay for skill level is a big one.
7. USPS over paid CSRS by about $50 to $75 billion and Congress won't give it back because that would require other Agencies to make up where they have been slacking.

I could go on but I'm tired of thinking about. Look at Page A of the USPS Nation Payroll Hour Summary Report here (http://www.prc.gov/Docs/72/72535/Payroll%20Hours%20PP08.pdf). Look it over, it is for a two week period and I could cut enough to save about $3 billion a year without touching wages, retirement, or insurance.

Note: USPS pays $40 million in TSP 1% and match every pay period. That is the TSP hook, lol. Payroll and benifits for a two week pay period is $1.8 billion............................every two weeks ya'll......................

One thing is for sure Congress is to blame because management and the Unions have been telling them that we are out of money. Where is Congress? Where is that leadership Mr. President?

You guys ain't seen nothing yet, stay tuned because it is going to be a huge train wreak in a couple of weeks. STANDBY!!!!

[crws]

Some reading to pass along:

USPS Volume Mix Changes; Periodicals Still Declining Dr. Joe Webb on economics, strategy, marketing, and other random thoughts (http://blogs.whattheythink.com/economics/2011/05/usps-volume-mix-changes-periodicals-still-declining/)

Congress hog-tied the USPS when this y2k GAO report was issued about the USPS as it related to Electronic Commerce:
U.S. POSTAL SERVICE - Postal Activities and Laws Related to Electronic Commerce (http://www.gao.gov/archive/2000/gg00188.pdf)

and linked from the first URL, the cover story of Business Week (one of the best pubs out there, IMO, and I delivered many of them):
http://images.businessweek.com/lede/11/350x230/0526_mz_cover.jpg
The U.S. Postal Service Nears Collapse (http://www.businessweek.com/magazine/content/11_23/b4231060885070.htm)

Finally, this program sponsored by New Hampshire public radio addressing the rural delivery issue, with Ruth Goldberg from the PRC as one of the guests:
Postal Problems (http://www.nhpr.org/postal-problems) - available as a podcast / broadcast here : http://www.nhpr.org/audio/audio/ex-2011-02-23.mp3.

[Buster]

At least this maybe some good news for our Letter Carriers...



Congress set to force Postal Service to keep Saturday delivery

(http://news.msn.com/politics/congress-set-to-force-postal-service-to-keep-saturday-delivery)



Congress butts in here (probably so they get their monthly Playboy subscription)..But they can't seem to get their sh!t together on keeping the rest of the honest hard working Government employee from losing their pay or jobs...BASTARDS!!!!

(http://news.msn.com/politics/congress-set-to-force-postal-service-to-keep-saturday-delivery)

[sniper]

sucks, i feel bad for anyone going through this right now. we have any postal workers on this site?

[Sensei]

sucks, i feel bad for anyone going through this right now. we have any postal workers on this site?
Konakathy, rcknfrwld, I think KevinD (at least his picture looks like a mail carrier). Sorry if I'm forgetting others.

[alevin]

crws is also postal service, not a mail carrier, but likely even harder worker from what I know of what he does. He hasn't been around here in some time.

[Show-me]

Me, but I have applied for disability retirement.

[burrocrat]

i think buster might be postal too.

[nnuut]

i think buster might be postal too.
Not Buster!

[Buster]

Don't forget our brother Show-me....

[Buster]

Shadup Maxwell, I'm not the one ON Medicationhttp://www.hummer4x4offroad.com/forum/images/smilies/icon%20hypnotize.gif