July 22, 2013—On July 17, Rep. Darrell Issa (R-CA), chairman of the House Oversight and Government Reform Committee, held a full committee hearing to discuss his discussion draft of a possible postal reform bill. This was the second House hearing on postal reform held this year. (Watch video of the hearing at right.)
Invited to testify were American Postal Workers Union President Cliff Guffey, Postmaster General Patrick Donahue and Quadgraphics President and CEO Joel Quadracci. Rep. Adrian Smith (R-NE) also was called to be on the panel as a representative of rural postal customers. NALC President Fredric Rolando testified at the first hearing in March.
Issa announced a number of modest improvements to his proposed bill—including his intention to incorporate into it Rep. Stephen Lynch’s (D-MA) H.R. 961 (more on that below)—but the chairman’s proposed legislation would cripple the Postal Service by eliminating door-to-door service and Saturday mail delivery, while leaving in place the onerous mandate to pre-fund the health benefits of future retirees. In fact, the cost of pre-funding would rise, not fall.
“The Issa bill still falls far short of what the Postal Service desperately needs—and in fact, this bill could be destructive,” Rolando said. “That’s because it proceeds from a false premise—that the Postal Service is irreversibly failing.”
To refute that notion somewhat, Donahoe testified that although the Postal Service had projected an operating loss of $2 billion loss for fiscal year 2013 (a total loss of $7.6 billion with the scheduled $5.6 billion pre-funding payment factored in), “We’re going to finish our finances approximately about a billion dollars better than we said at the beginning of year, because we’ve had revenue increases—especially in the package business.
“We’ve also been able to work and take advantage of negotiated contracts with our union leaders,” he added, “so that’s helped.”
There is little else in the Issa draft that distinguishes it from the bill he proposed in 2011. That measure, H.R. 2309, also called for massive cuts that, if implemented, would drastically diminish the quality and value of the mail by eliminating Saturday mail delivery service and phasing out door-to-door delivery to nearly 40 million American households. The bill managed to gain only one other co-sponsors besides Issa, and it never advanced beyond his committee to a House of Representatives vote.
One positive note was sounded when the California Republican also announced at the hearing that he plans to include in his bill the proposals found in Rep. Lynch’s H.R. 961. That measure calls for using postal-specific assumptions when evaluating USPS’ FERS-account surpluses. The USPS Office of the Inspector General estimated that an approach like this would result in a $12.5 billion postal surplus.
“Those surpluses should be measured properly,” NALC President Fredric Rolando said in his written response to the discussion draft, “and the released funds should be used to pay down the liability for future retiree health benefits and to allow the Postal Service to invest in new ways to help it build on its growing success in package delivery.”
In the last Congress, a similar bill introduced by Lynch, H.R. 1351, attracted 230 co-sponsors from both parties.
Downsizing USPS
Following the hearing, Issa formally introduced his draft as H.R. 2748, The Postal Reform Act of 2013. The bill targets the elimination of more than 100,000 postal jobs and would dramatically cut service.
“Cuts such as the ones the chairman has proposed would drive more mail out of the postal system and could send the Postal Service into a death spiral,” Rolando said, “and they would diminish USPS’ ability to take advantage of the obviously booming e-commerce market.”
The president stressed that more than 80 percent of the Postal Service’s losses in recent years have nothing to do with mail delivery. They result from the 2006 congressional mandate to massively pre-fund future retiree health benefits. Though Issa’s bill alters the pre-funding formula, it does not alter the burden of a mandate shared by no other private company or public agency in America. In fact, were proposals in Issa’s draft to be implemented, the USPS could wind up on the hook for an extra $5.8 billion over the next 11 years, under a revised pre-funding schedule.
There was word that Issa would formally introduce and mark up his measure on July 24, shortly before Congress begins its six-week summer recess.
Already before the House is Rep. Peter DeFazio’s (D-OR) H.R. 630, which contains a call to implement the results of a 2010 private-sector audit of the postal account in CSRS. That audit found a surplus of $50 billion to $55 billion, using modern accounting methods that could easily be mandated by Congress.
H.R. 630’s Senate counterpart, Sen. Bernie Sanders’ (I-VT) S. 316, so far is the only reform measure before the Senate, although there are indications that a bill might be introduced by Sen. Tom Carper (D-DE) later this year.
Meanwhile, Rep. Elijah Cummings (D-MD), the ranking member of the House Oversight and Government Reform Committee, has introduced a postal reform measure of his own: H.R. 2690, The Innovate to Deliver Act of 2013.
“Cummings’ draft does address many of our legislative priorities,” Rolando said, “but it ultimately falls short of what is needed as well.”
The Maryland Democrat’s measure doesn’t go far enough to solve the pre-funding problem, the president said. “Instead, it too accepts the idea that downsizing somehow provides a path toward prosperity.”
The people out there that want five day delivery are you aware that New Zealand is moving to three day delivery? And Canada Post is thinking of doing the same! Be careful of what you wish for, you may get what you want!
Real mail man,
Not really worried about my job getting eliminated. Got enough seniority. Thanks to the union.
And if there wasn’t a union, my work ethic would make me more than valuable to keep.
Show up everyday on time, rarely use my sick leave. Production numbers are always met.
If the real slackers would be let go (regardless of seniority) then this whole mess wouldn’t be happening. Wouldn’t have to worry about them cutting my job or yours (if you show up). But keeping more jobs than are needed for the amount of mail that is there, only makes management do stupid thing to piss off the workers.
Republicans aren’t going to do us any favors, the union doesn’t throw them any money.
Democrats won’t do anything either because they know that cuts have to be made. They will just let management continue to do what they are doing and the Democrats will cry and stomp their feet “I can’t believe they are doing this!!” Meanwhile, they walk back to their cushy jobs because they know they can depend on your union dues to get them re-elected.
If you think any politician(Dem or Rep) is going to help the USPS you are sadly mistaken. We will continue to lose money. (Which is what the Republicans want), and the Democrats are either too stupid to do anything or don’t give a shit.
It’s time you wake up, no one in Washington is going to help you.
hey 101…if you were eliminated by getting rid of saturday delivery, would you still be for it??? Probably has not been to a meeting in years….in the military, we called you a crap house lawyers…lol
Who you jiving Issa. Deliberate crippling of the postal service.
Sat delivery will only go away a short time. When 3 day delivery comes a carrier will deliver 1 rt m/w/f and another t/t/s with a floater for the 6th day. Residential delivery needs to be 3 times weekly at most!
Had the Greedy Unions co-operated with management two years ago, Congress would not be involved to the point of butchering our ability to negotiate wages and benefits….Congressman Micha? asked if the postal employees could be placed under Obama Care Program….the Union official sheepishly Said “we’re happy with our insurance like it is”…Would serve them right if management scrapped the program and anounced that since Obama care is available they are ending funded insurance in order to save the service….Thats what most companies are going to do……
To “Proud Postalguy”:
There are no unassigned employees in my break room. Haven’t been for the decade I’ve been there. Everyone is working 8-10 hours daily. Why do you make such unsupported blanket assumptions?
Anyone who thinks the average American cares about Saturday delivery is not listening. Most could care less on receiving their bills and junk mail on Saturday. People do want their packages which will still be delivered if Congress doesn’t mess that up. Employees losing their jobs would be a concern if the PO. ever really did lay off anyone. Look in your break room and see how many “unassigned employees”are in there all day.
Maybe if the American public still used the PO we wouldn’t be in this situation. Some type of change is a must. Offer an early out to the ones who have earned it and eliminate Saturday delivery. Case closed!
101 either stop paying dues or start bieng united with the majority of the Union.The reason the apwu doesnt agree to most bills being presented is there not i the best interst of the post office the postal worker and the American poeple .
where is the supposed savings in ending saturday delivery? eliminating carriers? the mail that is delivered on saturday would then be delivered on overtime through the other 5 days.gas? vehicles would ride through every route to deliver packages on sat.
Dues paying,
I’m embarrassed to say, I actually belong to the union.
I’m just sick of the union bosses , who don’t even touch the mail, balk at every bill that is voted on. How many bills have been proposed only to have the union say “Don’t support it” ? Even the bi-partisan bill was not sufficient for these idiots. Meanwhile, management has to make cuts, and who pays for it you and I do, the people who actually work the mail.
If they put out and pass a bill, then management will be the lazy fucks they are and get off the workers backs.
Relax service standards and management will lose their pay for performance incentives.
Sure, jobs will be cut, but if you work hard, it won’t be you.
I don’t blame you, Dues Paying, you have just read too many union papers to think for yourself. You don’t understand the union is hurting you, the efficient worker. Unless, you are one of those FMLA using, “one day on, two days off, one day on, two days off “workers.Then you want the status quo to stay the same.
nevermind-Guffey and the APWUseless are management stooges and don’t care about the rank and file’s best interests.Where has the APWU been since Donahoe came out with his plan to take postal employees out of FEHB and start his Donahoecare Postal Service plan?…crickets….
It’s because of people like you that don’t understand the Postal Service. We have cut over 250,000 people,slowed down delivery,have to pay more for health care,and let more part time help with little benefits in. What else do you want?
Little has been done from Congress to let us add sales or do other services to increase sales,or get our over payments back. You can’t start the year out with a $5.5 billion payment just because Congress needs more money.
The Unions have gave up enough it’s time for Congress to give up something.
Hey 101 what about the 50,000 people they would get rid of if sat is out.
Guest 101 are you Darrel Issa ,You must be because hes the only Dick.If he and you think you have us fooled your wrong we see right through you little sceme of trying to make the USPS look bad so you and your cronies can reap the profits of privatization at the expense of sevice to the US public.
The only reson the so called majority of the workers dont want Saterday delivery is so they wont have to work weekends.
The US public ,who we serve ,does want Saterday delivery.Its only lazy scabs like guest 101 who dont.
the more they say it is going to change the more it stays the same. the won’t get shit done contracts will remain in place lol ISSA f’n scumbag.
Do our unions support any kind of bill? Congress’ inaction is because everything that is put out there is automatically rejected by the unions. 5 years and nothing gets done because of the tantrums of the National union officers. The majority of the “actual workers” want Saturday delivery eliminated. Would make scheduling and thus more job security and stability.
Our unions are dicks.
bkizzle & nevermind have only their self interest and jimmy is just plan out of it.
jimmy ignores the fact that 25% of rural America has no internet service at all.
Another 25% of America which includes seniors 65 & older plus low (poor) income earners cannot afford and wouldn’t know how to use digital communication.
Plus considering all the digital theft off the internet of private information, its only a matter of time before it happens to all of us.
Support Issa, cut everything, we don’t need paper mailing, save trees save earth, all digital communication, privatization, lol…….
the nalc is only concerned with preserving
6 day delivery. rolando will shut up and go away if he knew 6 day delivery would remain. one of the reasons that donahoe and congress have been able to keep the postal charade of ‘we are on the brink of bankruptcy’ going so many years is because each postal union is selfish and concerned only about the small picture. the apwu and mailhandlers seemed to cry the loudest about excessing and plant consolidations. the nalc was silent for a long time and only got involved when 6 day delivery looked as though it might get changed to 5. the unions have been utter failures at coordinating a unified effort to attack donahoe’s service-slashing suicide plan and forcing congress to shit or get off the pot.
Washington FATCATs @ it again
Cut Saturday delivery so I can head south for some beach time on the weekends. The thought of a Korhs orange twist Ice cream cone weekly, sounds nice!!!! I’m looking to catch a tan!!!! If I was a usps big wig, I’d concentrate on getting some of these new CCA’s some uniforms. !!! They look a little scary!!!! Makes me want to hold on to my wallet just a little tighter. SAD!!!