07/09/2015 – In response to a lawsuit filed by the APWU, the Postal Regulatory Commission (PRC) has coughed up 231 documents that shed new light on the secretive deal between Staples and the Postal Service.
Perhaps most jarring is the acknowledgement that the Staples’ deal was intended to serve as a model for transferring postal retail operations from the U.S. Postal Service to private retailers.
The PRC released the documents only after extended legal wrangling. The APWU filed a Freedom of Information Act (FOIA) request with the PRC on May 30, 2014, requesting documents pertaining to the agreement between the USPS and Staples.
The PRC initially denied the request, but finally handed over the information on April 29, 2015, after the union filed a lawsuit.
Template for Takeover
“These documents show that the management’s dirty deal with Staples was designed to be a blueprint for offering postal services through private retailers. This privatization would dismantle the public Postal Service and close post offices.” observed APWU President Mark Dimondstein.
PRC Order No. 1870, dated Nov. 7, 2013, (Doc. 165), did more than simply approve the Staples deal, he noted. It designated the Staples deal as the baseline model for an entire class of contracts with private providers of international package handlers, known as “Global Reseller Expedited Package Contracts.” The Postal Regulatory Commission “designates the [Staples] Agreement as the baseline agreement for the GREP Contracts 3 product.”
The Sept. 25, 2013, Shipping Services Agreement, Section I.E. (Doc. 53) reveals that although Staples must sell package shipping at the published retail price, the Postal Service must pay Staples a rebate every month based on an undisclosed lower figure. “This is further evidence that the deal privatizes postal work with hidden rebates,” Dimondstein said.
“The material shows that the Staples deal degrades postal work,” he added. “It reduces postal retail service to a ‘product’ that low-wage employees sell, rather than a public service performed by highly-trained professionals.”
Section II of the agreement reveals the extent of the Postal Service’s influence over Staples’ postal operation. It requires Staples to conduct joint quarterly business reviews with USPS management of the office-supply chain’s performance as a postal operator. The agreement shows that Staples is not just a distant licensee of the Postal Service; it is an integral part of the Postal Service’s operation.
Stealth Privatization
A March 22, 2011, USPS Board of Governors Decision (Doc. 203) listed as “Restricted and Sensitive Business Information,” reveals that the USPS Board of Governors first cleared the way for the partnership in 2011, long before the program was publicly announced in the fall of 2013.
Governors’ Decision No. 11-06 sets out a schedule of prices for Negotiated Service Agreements that the Staples deal followed two years later. The Governors’ Decision states at Attachment A: “Competitive instruments are often negotiated with customers and foreign postal operators for better cost coverage, higher overall contribution, and improved service with respect to postal services classified as competitive.”
When considered in conjunction with the 2013 Staples Agreement, the Governors’ Decision reflects an alarming direction for the Postal Service – to use discounts and rebates to induce private firms such as Staples to take over postal work.
The lower cost of low-wage private retailers was – and is – an integral part of the USPS Board of Governors’ marketing plan.
“These documents provide more evidence of the importance of our campaign to stop privatization. Secret deals like the one with Staples cannot survive public scrutiny in the light of day,” Dimondstein said.
“It’s regrettable that the PRC – which is supposed to act in the public’s interest – was complicit in keeping the details of the deal secret,” he added. The PRC reviewed the deal and listed it on a public docket but hid all references to Staples and specifics on volumes and discounts the retailer receives from the Postal Service, making it impossible for the APWU – or anyone else – to weigh in on the deal.
Doc 161 Orders Folder (785.89 KB)
What i do know is as a Letter Carrier ; is Customers complaining about under staffed windows,
P.O using local gas station in city as Postal Service Official outlet and cutting Clerk hours. Get the service you need and shop your local gas station.
P O sets them up in big and blue print diverting customers to them and it is working. We are getting the business but at a clerk (PSE ) expense.
What i also know is the C C A ‘s from the Carriers side are at the whim of Mgmt. Speed no accuracy,
skip lunches , controlling hours and the old Salts with 30 plus years see many from both crafts with a complacent attitude when these Carriers and Clerks should be taking a stand together.
Would be discussing all the Unions working together and merge as one especially the Clerks and Carriers,
bargaining together.
In one last note, Rural territory should be City delivery. We have Rural Routes in city delivery box to box
and cluster boxes established as Rural Carriers expanded with rural carriers delivering a subdivision
in a dividing line one street over on one side of the street in city limits. The city carriers travel further than the rural carriers within the city limits.
When brought up years ago was ignored.
Saw a one office P O of city routes and 2 rural routes grow into a rural route expansion of exploded growth.
Respectfully ,
Michael J Riordan
Its just like the so called fiscal conservatives to try to exploit waste in the Federal Government and then turn around and suck its #//^ on a hog at the trough..Funnel the Money of the Agency to a poor business model like Staples who is losing money so investors won’t keep losing theirs..PURE CAPITALISM!
“public service performed by highly-trained professionals.”
Really? Highly trained? What is it, 2 weeks of training? And they get $25 an hour? The service counter employee at Walmart has more skill.
Its 16 hours of computer training, 24 hours of classroom training, and 40 hours of training from a OJI.
Whenever I have a review I am asked any comments? Every time I say the same thing in comments. I feel SCA’s are not given enough pre window training.
TRY THIS..I DO IT: go into a staples store, fill up a shopping cart with things from all over the store. small things especially. then just leave. one of their employees will have to spend about an hour putting all that stuff back on the shelves…lmao!!!
Real mature. No wonder the service has issues with employees like you.
Dick,
The true facts about this no-bid deal is its understandable for many to not comprehend it totally. Its quite complicated to the person not aware of the tricks, lies , and corrupt business decisions intent to harm and destroy the successful society each American must expect.
So to you Dick get the facts understood so no doubt will be had from your statements about this issue.
I appreciate you for wanting to share statements on this issue but it is a disgrace to so many when its not based not facts.
Solidarity forever
Ernest
So the union wants staples out of the postal business. So when a customer goes to ship an item at staples or from staple, the customer is left with two choices FEDEX and UPS, both companies have shipping services provided by staples. A customer would surely use those services available rather than drive to a Post Office to ship their item. The APWU is surely cutting off their nose despite their face. Customers will always choose convenience over brand. FEDEX, UPS and the Teamsters are smart get volume into the systems anyway possible.
LOL! Cutting off their nose despite their face??? Better look up that expression, buddy!
BOYCOTT STAPLES!!!!!!
Once again that ol’ USA green gets the nod to follow to most problems !
This is why customer get such poor service at the window and fewer hour open. Not open on Sat.! You have to be kidding me.
Time for some higher up’s to be fired from the Postal Service
Unfortunately, Staples is just one of many fish in the pond of privatization. The USPS already pays non-postal presort houses “rebates”, in our office an average of $5,000 PER DAY! Non postal contract stations, no different than the Staples model, have existed for decades and while salaries are not paid by the USPS, these stores, found in drug stores, grocery stores, etc, do receive a commission payment. If you are going to keep your eyes on Staples only, you are missing the big picture.
Staple is losing money as is USPS. U r fighting outdated battles. U useless beings will allow equally useless postal management 2 downsize as they please. And u will shamelessly continue 2 peddle grossly overpriced dental-insurance. U r far too arrogant 2 ever change. Cancel these contracts with the insurance scam-artists, if y have the slightest human respects.
I have a better idea, contract out the PRC and the board of governors jobs! I’m quite certain people can do the work for $7.25 per hour. First step, be sneaky, let the big time operators know nothing. Treat them like the low class employees are treated! Like dirt!