Volume 102

Postmasters Online

Volume 102

Feb 12, 2001

Contents:

But Wait, There's More (Editorial Commentary)

1) House Abolishes Postal Subcommittee

2) Not So Fast

3) Postmasters Fairness Bill Introduced Again

4) United Postmasters of America

5) Postal Achievement Awards announced by Postcom

6) It's a PC World

7) Courtship First, Then Marriage

But Wait, There's More

By David Rupert

Editor

Postmasters Online

We are still waiting on all the fallout from the latest price hike : Declining volumes, 21 cent stamps, and stamp destructions. Now the Post Office is preparing another bomb: Rate Hike 2002. That's right. As predicted in Volume 95 of Postmaster's Online, the small penny rate hike we just invoked will be nowhere what we need. In fact, even with the increased revenue from the 34 cent stamp, auditors are now leaping over the 2.5 billion dollar loss projection for this fiscal year. Despite Christmas and all its hype, we lost 280 million dollars for the quarter.

So what will the new rates be?

Let's look at what the Postal Rate Commission is calling for. They lowered the rate hike request, angering the Board of Governors, leading to the resignation of PMG Henderson. The Board of Governors displeasure then led to the resignation of PRC Governor Ed Glieman, who has called for reform for a number of years. Gleiman understood the relationship between spiraling rates and declining business. He thought we should save from within before we go to the customers to ask for more money.

The problem is that internal reform is even more difficult to maintain. So many of our costs are fixed that beyond a little tweaking here and there, little can be done. The Board of Govenors has called for a cutback of 1 billion in capital expenses, but that is like delaying your car payment: It's still due next month, but this time double the payment with interest accumulating.

Even if we cut 1 billion this year, it will have to be spent next year. So our deficit of 2 billion this year becomes an additional 5 billion next year. A one cent stamp increase raised about 1.5 billion dollars. My guess is that to even come close to paying the bills, we will be looking at 37 cent stamp next year with (more) large increases in second class and standard mail. Priority mail may soon be priced out of "the good deal" category it now marginally maintains.

Of course, all of this becomes a snowball. The more we raise rates, the less the American public will stomach us. In fact, they will continue to find other ways to communicate. Declining volumes means declining revenues. Declining revenues means that we will saunter up to the bar and ask for another "drink" from the stamp buying public, only next time it will be a double. At this rate, we will wither away. What will it take? Sacrifice. We will need to sacrifice service. PMG Henderson in some of his lame duck remarks has stated that removing the sixth day of delivery is not the answer. In fact , he is proposing a seven day parcel delivery. This idea has some merit - parcels for everyday of the week will remove the "8-10 business day" delivery promise that companies make. If they ship with the USPS, then the parcel could be delivered on the weekends. However, on the flip side we should discontinue delivery of all other classes of mail on Saturdays. The savings would be dramatic and immediate.

The other sacrifice hits home, but the day may come when we have to sacrifice with our pocketbooks. The unions will quit having to coming to the tables with their palms upturned. The employees of our company will have to quit expecting automatic, nonperformance based raises every few months. If we want jobs for our futures and for our children, then we will need to dispatch with the entitlement culture we are entrenched in.

All of us are guilty. Craft, management, PCES: We all expect what the other guy is getting. Everytime the craft gets a hefty raise, managers ask for the same or more. Somewhere the cycle must be broken.

The unions have always depended on " a broken system" to walk away from the table, go to arbitrator and get what they want. The 34 cent stamp can almost be blamed exclusively on the Letter carriers and their new level 6 pay. Guess what APWU wants? Look for Level 6 pay for clerks as well. Then the Rural carriers and Mailhandlers will want similar deals. Then the supervisors and Postmasters will want raises to keep pace. We all win, but who loses: The Post Office and ultimately the mailing public. When the last letter is mailed from the Post Office, it may very well be mine. I'll stick the 62 cent stamp on the letter addressed to the unemployment office. I'll remember the good old days and mourn for an America that can no longer communicate without electricity. As rolling blackouts snuff out American communication we will blot out the global village and return the days of gathering at the local post office , now closed, to catch up on the all the news.

David Rupert

Editor

If you have a comment, question or news tip on this or any other subject, send them to me at Rupzip@cs.com

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We have some wonderful monetary contributions to our new domain name (coming soon) and dedicated server. Thank you to all of you who believe that this is a valuable service. If you wish to contribute a dollar, two, five or 20, send what you can to the Wordsmiths Group, David Rupert, POB 3 Wilson WY 83014

~~~~

1) House Abolishes Postal Subcommittee

Surprising nearly everyone who follows postal issues, the House of Representatives has announced the elimination of the Postal Service Subcommittee. The House Government Reform Committee, of which the postal service panel was a member, will now hear all postal issues.

The committee described the move as enhancing the attention given to the U.S. Postal Service. "Postal issues have been elevated to the full committee so that Congressman John McHugh and Congressman Dan Burton, the two primary champions of postal service modernization, can continue to aggressively pursue postal reform," said committee spokeswoman Josie Duckett.

Rumors of the subcommittee's demise began to spread in recent days before the official word came. House Government Reform Committee Chairman Burton, R-Ind., indicated what was coming when he announced the eight other subcommittee chairmen but said nothing about the postal service panel.

It was only after committee staff was pressed on the subject that they confirmed the postal subcommittee was being dissolved.

Until six years ago, the Postal Service had a specific oversight committee in Congress before it became a

subcommittee.

Rep. John McHugh, R-N.Y., stepped down as postal subcommittee chairman this session after six years in the post. He had to relinquish his position because of rules imposed by House Republicans to prevent committee or subcommittee chairmen from holding a seat more than three terms.

McHugh championed postal reform in his postal reorganization bill, H.R. 22, which was designed to give

the Postal Service more freedom to manage its business operation. The bill ended up stalled in committee during the last session of Congress.

He will remain a sitting member of the full committee and could continue to play a key role in shaping postal reform efforts in the 107th Congress. With McHugh there, it is likely that his legislation will stay as the framework for postal reform discussions.

Last fall, McHugh and Burton asked the Clinton Justice Department to look at possible antitrust questions

involving the Postal Service. Postmaster General William J. Henderson, who is stepping down in May, said in late January that the attention postal reform receives in Congress this year will depend in part on how strongly President Bush pushes it.

The absence of a postal subcommittee, which Henderson did not anticipate when he spoke, may be a troubling development for supporters of postal reform. With all the areas the full committee must address, it is unclear how much demand other issues will put on McHugh and Burton's time, say supporters of postal reform legislation.

Their fear is that the Postal Service could get lost in the crowd. What happens next will depend on the time and energy that the full committee can give the agency.

(EDITOR: I don't know what to think of this move. I believe that it is intended to follow Rep. McHugh, who has been the only US legislator who has the guts to try to reform the Postal Service. Since he couldn't chair the subcommittee, then the leadership put the responsiblities under the full committee. Remember, it hasn't been that long ago when the Postmaster General was a cabinet position. PMG Henderson believes the reason that McHugh's work was in vain was because the President himself was never concerned about it. Just think, if Pres. Bush would only mention the need for Postal reform in just one of his weekly radio addresses, then suddenly the press, the talking heads, and even Congress might start talking. This whole thing could spin on dime.)

~~~

2) Not So Fast

While the alliance with FedEx may indeed prove fruitful I would wait before praising since we are in direct competition with them in overnight service. I also guess that if airports are snowed in their flights will be delayed as well as commercial airlines MHO

Bob Early

~~`

Rural Carriers Take Stock

I have been a rural carrier for 20 years and have never heard that we don't have to carry stamp stock. I have heard of carriers that don't. I figure they are lazy. Stamps were carried back when people did not go to town often. In most areas people now have access to a Post Office without causing them to go out of their way. I have people on my route who also have a P.O. Box and have never bought a stamp. When I see their flag up I know I am going to have to fish a hand full of change out of the box. [They know I sell stamps.] And then their are the ones that have 15-20 letters for me to put stamps on. I think we need to carry stamps to help the people on occasion, but we should not be taken advantage of. If the stamp credit is taken away, then, mail count procedures will have to be changed. That is another problem for management to deal with.

Please don't use my name

3) Postmasters Fairness Bill Introduced Again

On January 30, Rep. Connie Morella (R-MD) introduced the following bill:

H.R. 250 - A bill to amend the provisions of title 39, U.S. Code, relating

to the manner in which pay policies and schedules and fringe benefit

programs for postmasters are established. Referred to the House Government

Reform Committee.

Cosponsors:

76 cosponsors (Dems: 50 Reps: 25 Inds: 1)

Abercrombie (D-HI) Evans, L. (D-IL) McCarthy, C. (D-NY) Ackerman (D-NY) Filner (D-CA) McCarthy, K. (D-MO) Andrews, R. (D-NJ) Frost (D-TX) McGovern (D-MA) Baldacci (D-ME) Ganske (R-IA) Moore (D-KS) Baldwin (D-WI) Gilchrest (R-MD) Moran, James (D-VA) Bartlett, R. (R-MD) Gillmor (R-OH) Murtha (D-PA) Bentsen, K. (D-TX) Gilman (R-NY) Norwood (R-GA) Berry (D-AR) Gordon, B. (D-TN) Oberstar (D-MN) Bishop Jr. (D-GA) Hefley, J. (R-CO) Peterson, C. (D-MN) Bono (R-CA) Hinchey (D-NY) Petri (R-WI) Brown, S. (D-OH) Hoeffel (D-PA) Rahall II (D-WV) Calvert (R-CA) Holden (D-PA) Riley, B. (R-AL) Capps (D-CA) Hooley (D-OR) Rivers (D-MI) Cardin (D-MD) Hoyer (D-MD) Rush (D-IL) Clement (D-TN) Isakson (R-GA) Sanders (I-VT) Condit (D-CA) Kanjorski (D-PA) Saxton (R-NJ) Costello (D-IL) Kaptur (D-OH) Sessions, P. (R-TX) Coyne (D-PA) Kelly (R-NY) Shimkus (R-IL) Crowley (D-NY) Kilpatrick (D-MI) Skeen (R-NM) Cummings (D-MD) King, P. (R-NY) Skelton (D-MO) Davis, D. (D-IL) Kleczka (D-WI) Towns (D-NY) Davis, T. III (R-VA) Kucinich (D-OH) Whitfield (R-KY) Deal (R-GA) LoBiondo (R-NJ) Wolf (R-VA) Ehrlich Jr. (R-MD) Lucas, K. (D-KY) Wynn (D-MD) Emerson, J. (R-MO) Luther

(D-MN) Engel (D-NY) Maloney, J. (D-CT)

(EDITOR: Time to get on board again. Contact your Congressmen now.)

~~~~

4) United Postmasters of America

I used to be a dual member of both the League and Napus, but no more. The year I dropped my League membership was the year that I applied for 3 days of State Convention leave - 2 days with the League and 1 with Napus - and was called by my POOM and told that this was not possible. I could attend either one or the other, but not both. I explained that I wanted to attend 2 days with the League because they were holding workshops that could benefit me in my job as a level 13 postmaster and 1 day with NAPUS for the same reason. My POOM explained that the rule is that postmaster's must choose one convention to attend. I could attend either 3 days with the League or 3 days with NAPUS, but I could not split it up and attend 2 days with one group and 1 day with the other group. What is the point of paying dues to two organizations if I can only attend one convention? Dual dues paying postmasters are denied the right to break up the days and attend both conventions. It is time for postmasters to unite. Let's do what's best for postmasters instead of what's best for headquarters. It is time to eliminate BOTH the League and Napus and unite under a new name - United Postmasters of America.

Ellen Power

Postmaster

Searsmont, Maine 04973-9998

~~~~

5) Postal Achievement Awards announced by Postcom

by Cary Baer

The first, and probably the most important, award is for the Individual Who Has Done the Most to Further the Cause of Postal Reform. The recipient is George Fleischli. Who, you ask, is George Fleischli, and why should he win this award? Fleischli was the arbitrator who decided the recent labor contract between the U.S. Postal Service and the National Association of Letter Carriers. You will recall that current postal law requires that postal management and the labor unions negotiate a contract. If they are unable to agree on contract terms, they jointly appoint a third-party arbitrator.

That arbitrator, after hearing testimony from both sides, issues a binding agreement. The majority of recent labor agreements have been settled through an arbitrator because the parties have been unable to reach agreement on their own. In those cases it was generally thought that the arbitrator's decision was favorable to the postal service. Therefore, the postal service probably didn't fear arbitration again.

However, in this decision, Fleischli accepted the union argument that the carriers' job was more difficult than previously rated and upgraded the letter carriers job to a higher wage band. This decision will add hundreds of millions of dollars to annual postal expenses. Fleischli's decision was a shock to postal management and the Board of Governors. They've finally realized that the labor-management contract resolution system is broken and that the only way to change it is through postal reform legislation.

The Comeback Player of the Year award goes to Richard Strasser, the postal service's chief financial officer.

As some may recall, when Tony Frank was postmaster general, Strasser was assistant PMG for planning. He later was put in charge of marketing. Under Marvin Runyon's reign, Strasser was demoted, sent to the Washington-area hinterlands and given a mid-level operations assignment. Through hard work, diligence and fortunate circumstances he has re-emerged as CFO. Initial indications are that he's giving the postal service and the Board of Governors exactly the kind of straightforward financial advice they need to hear.

As a balance to the award to Strasser, we give the Biggest Fall award to Richard Porras, the postal service's previous CFO. As a result of ill-considered reimbursements for "moving" expenses, Porras was forced to retire from the postal service.

The Congressional Award for the congressman who has been most dedicated to postal health and reform goes to Rep. John McHugh, R-NY, former chairman of the House postal subcommittee.

McHugh spent untold hours trying to understand the postal service's situation and likely future. With that knowledge he crafted a bill, H.R. 22, the Postal Reorganization Act, that he thought would provide the flexibility that would permit the postal service to survive in this new hi-tech environment.

Unfortunately or fortunately, depending on your perspective, the bill never made it out of committee. It has now become apparent that the service's plight is more dire than previously thought and legislation that provides more substantial change is necessary.

The Most Diligent Fact Finder award goes to retiring Postal Rate Commission chairman Ed Gleiman.

During the 2000-01 rate case proceeding, Gleiman issued several notice-of-information requests of the USPS to provide information on flats, or catalog-shaped, processing. As a result of several of these NOIs we've learned that despite millions spent on flat automation, the processing is less productive than it was five years ago. And this is not a trivial issue, as flats account for about 25 percent of all mail. Bringing this deficiency to light has forced the postal service to concentrate on this area.

• Cary H. Baer is a direct marketing consultant and chairman of the Association for Postal Commerce (Postcom), New York. His e-mail address is CaryHB@aol.com.

~~~

6) It's a PC World

The Post Office is teaming with Compaq and IBM to offer low cost computer systems and Internet access for postal employees. For about $600, you should soon be able to purchase a complete system that will connect postal employees with each other and give them powerful computing ability.

The deal has been in the works for a few months and is a strong move to give employees both technological ability and company access. The Compaq machiens will offer NetZero free internet access while the IBM machines will offer Juno access. Of course, full service Intenet access will be at user cost

What's you opinion?

Send it to Rupzip@cs.com

7) Courtship First, Then Marriage

`I WOULDN'T JOIN ANY CLUB THAT WOULD HAVE ME AS A MEMBER'

The great line above was said by one of my favorite guys, Groucho Marx, who maybe knew more about himself than most of us do. In any case, it also portrays a reaction to life that is common: as soon as we get to one place, it is not quite good enough and we want something better; overblown instincts, some say, being spoiled may be the response of others.

So, in the midst of all the `discussion' about one, two, three Postmaster Organizations, I tend to reflect on Groucho. Why? That is a good question. Let me see we are having a rough time these days (again) in the Postal Service. We have breakthrough productivity, which is so creative (maybe I am missing something here) that we are supposed to just do more with less and `motivate' our employees who have no reason or responsibility to increase productivity. We have Postmasters who are picking up the extra work whenever possible so that they do not get yelled at about budget, or because they cannot hire workers (PMR salary, complement freeze) or both. We have level III in BPI, which will, according to what I have been told, `cut 10,000 post offices and go to five day delivery'. Isn't that original! And in the middle of all of that, we are trying to sell Christmas ornaments when we cannot get mail through major plants all around the U.S.A. Do not even get me started on the political games and agendas present in Washington, D.C. where we have the following players: postal, private and elected officials who truly want reform in the USPS to make it more flexible and better able to compete; postal, private and elected officials who truly want reform in the USPS so that it will go under and provide further financial opportunities for private industry to expand; postal, private and elected officials who truly want reform in the USPS so that they can get their own deal included; postal, private and elected officials who truly believe that all federal employment is just a modified form of welfare for workers and rural areas, and some more players who just are mad because we lost their letter in 1986 and broke their model airplane kit in 1994.

Not that there is no problem in the USPS this year. On the contrary, there is a very large problem; the income is less than the outgo. However, the USPS has cried `wolf' so many times about budget that there is little credibility left in the latest gloom and doom forecast. The field response is not there this time. Part of the problem is also that what truly motivates people is not money. It all gets spent, in any case, but the core tradition of honor and service has been trampled by the dollar sign over the past years. In addition, more disharmony than motivation was created by differential (or lack thereof), EVA and salary increases.

The solutions here are to refocus on what is important (we are the UNITED STATES Postal Service) and reinvent. Tighten up and hunker down are not going to get it this time, but, unfortunately, that will be the primary operating mode for the USPS, creating stress, dissension and chaos. When there is a situation that is critical, and it is critical THIS time, I believe that our representative organizations should do their jobs. They need to be counted in the reform process. They can use this situation to create legislative and workplace reform. They must stringently guard against abuses that are already here and will be further spread due to this annual budget crisis. They need to be on the front line to insure the survival and prosperity of the UNITED STATES Postal Service. So, to me, debating merger during this critical time is like arguing over deck chairs on the Titanic, shortsighted and a terrible waste of energy. There is only some much time and effort to go around, and we need to put it to use where things are critical. I have relayed my opinion and assessment to our president, Joe Cinadr. I think he is in agreement.

In addition to our Postal situation, any approach to the forming of one Postmaster organization must be like a successful courtship. Having had many unsuccessful courtships, I can tell you that I never got anywhere by ignoring or slighting a potential partner. No one got anywhere with me doing that either. I recall once arranging a vacation, without input from the wife, only to be told, `Who said I want to go to Baluchistan, anyway???' The destination could have been Paris; the point was and is that courtship is mutual. I never did well by `taking over' and `running the show' no matter how good my motives were. It just does not work, and we all know it. So any approach that ignores this fundamental premise must be classified as a hostile takeover, where agendas are hidden and intent is masked. I have that opinion, because it looks just like something I would have pulled a few years ago.

So where does that old Groucho statement come in to play? For one thing, it reminds me to not take myself too seriously. That is one reason I stay away from large state and national capitols as much as possible. I do not want to start believing that I am the only one that can save the world, and that is a common concept inside the beltway. Also, it reminds me that each organization is really only a sum of ALL of its parts, and each part must be considered, even if it is Groucho.

When the house is on fire, we should not argue about whom has the better-looking firehose. It is no way to make a relationship, and we need every hose we can get to put out this fire. If we can work together to meet this challenge, then maybe we have a common ground for a relationship. Maybe not. But, it might be a good way to find out! Fire first, courtship next, long before we look at a wedding and after we have some facts.

By Wade Rumney

National Vice President

League of Postmasters

( In keeping with the spirit of this newsletter, I invite the NAPUS president or other national officer to respond. One thing is certain…we have had a century of disagreement and our return to unity will not be quick. There are wounds to heal first, and both parties should work at those unions. In my opinion, we should work toward joint Postmaster conventions at the state levels. We should combine our newsletters immediately. When these two things begin, then we can talk merger at the top. Agree, disagree? Let me know at Rupzip@cs.com )

Correction: An unidentified poster in Issue 101 (tongue in cheek, I believe) nominated League President Joe Cinadr for PMG based on his belief that customers should be charged for delivery. Cinadr's position has always been for the continuation of free, universal service. He Has however, maintained that extra services like, forwarding of mail, should have some sort of small assessment. PM Online apologizes for the poor information posted. He was however honored for the thought.

Check out my friend Rick's website at

www.postalemployeenetwork.com

He sends out a weekly newsletter that is entertaining AND postal! How's that for a mix! He presently has about 1500 subscribers and will soon overtake this newsletter as the largest - and I don't mind, because he does a great job. This Louisiana letter carrier has a great balance. Look at his rich web site, but better yet sign up for his newsletter which (unlike this one) faithful comes on time every week. Send him an email at postalWORKZ@aol.com

Postmaster's Online is the work of David Rupert, Wordsmiths Group, POB 3, Wilson WY 83014. Its contents are those solely of the editor and its contributors and do not represent the US Postal Service, Tom Hanks, or the Golden Girls.

If you have a comment or questions, direct it to Rupzip@cs.com

Does a friend forward this copy to you? Then get your own subscription at Rupzip@cs.com

The archives and other interesting items are found on the web at http://ourworld.cs.com/rupzip