POSTAL REVIEW

Anthrax Update

The Postal Service is watching the progress of cleaning up the Senate Hart Building before determining how to clean up postal facilities that have been exposed to anthrax. However, the EPA, which is in charge of the Hart Building cleanup, is on a learning curve and has yet to declare the Hart Building safe after fumigating twice with chlorine dioxide gas. The CDC has declared fumigation the best method for sanitizing after anthrax exposure, however, the EPA has had difficulty getting the chlorine dioxide to the saturation point needed to effectively clean Hart.

Meanwhile, the government is offering the anthrax vaccine to approximately 3000 congressional staffers and postal workers in Washington, New Jersey and New York who have been exposed to anthrax. The government is responding to studies that suggest that anthrax spores can remain in the lungs up to as much as 100 days despite taking antibiotics. However, the vaccine was not intended for post-exposure use and comes with a long list of potential side effects. At this writing, the government has not yet issued protocols on taking the vaccine.

Postal Budget

The Postal Service is reporting a loss of $1.7 billion for fiscal year 2001. This loss reflects the combined effect of electronic competition, a weak economy, the September 11^th terrorist attacks and anthrax-contaminated mail. The Postal Service has asked Congress for $5 billion in subsidy with $2 billion to cover lost revenue and $3 billion for bioterror cleanup and mail sanitization. The House has agreed to the White House request to defer any funding to the Postal until next year while the Senate has voted $600 million for the Postal Service into the Defense Appropriations bill. Hopefully, this amount, while far less than that requested by the Postal Service will survive the Conference process.

Performance Pay Controversy

The Postal Service will issue $164 million in annual incentive payments to about 84,000 managers who do not receive annual raises or cost of living increases. Critics are calling these payments bonuses and are decrying the fact that they are being issued in a year when the Postal Service has a significant lost of revenue. The Postal Service has responded that by giving managers the performance payments, they have saved $520 million that they would have had to pay in raises.

However, the Postal Service Inspector General has undermined the savings argument by issuing a report charging that the way in which the Postal Service has calculated the payments has resulted in increased payments to managers in the past three years, as much as $805 million. The Report also criticizes the Postal Service for paying these bonuses while profits fell and argued that if the change in calculation had not been made, managers would have received smaller payments in fiscal years 1998 and 1999 and none in 2000.

It remains to be seen whether these payments will continue in light of the Inspector General’s report and efforts such as that of Representative Walter B. Jones, (R-NC) who has sponsored a resolution calling for the forbearance of bonuses of managerial personnel in years where the Postal Service anticipates it will operate at a deficit or in a year where an increase in postal rates has been requested.

Postal Heroes

Representative Christopher Smith, (R-NJ) has sponsored the Postal Heroes Commemoration Act of 2001, which would require the Postal Service to issue a special commemorative stamp to provide funding for bio-terror security enhancements.

FEDERAL NEWS

Government Diversity Programs Lag Behind Private Sector

A report from Pricewaterhouse Coopers Endowment for the Business of Government, “A Changing Workforce: Understanding Diversity Programs in the Federal Government,” found that federal agencies lag behind private sector employees in developing diversity programs. The Report urged the federal government to go beyond equal opportunity and affirmative action programs. The Report also found that programs are significantly different across agencies and questioned the effectiveness of such a system.

African-American Museum Coming Soon

Things can happen quickly in Washington. Even if it takes 12 years to get it done. On December 11, 2001, the House voted on H.R. 3442, sponsored by John Lewis (D-GA) and J.C. Watts (R-OK), to create a Commission to plan and build a National Museum of African-American History and Culture. Received in the Senate on December 12 for consideration, that body passed the legislation on December 17, 2001 by unanimous consent and without amendment. For the past 12 years, Representative Lewis had introduced a bill for the creation of a national museum dedicated to the accomplishments of African-Americans. The bill is now on its way to the White House for the President’s signature.

Long Term Care Insurance Update

OPM has awarded the contract for the government Long Term Care insurance program to Metropolitan Life and John Hancock insurance companies. The companies have formed a joint venture company, Long Term Care Partners, LLC to administer the program. The Program will provide discounted long term care insurance to federal workers, retirees and the military. Unlike normal health insurance, the government will not subsidize long term care premiums.

OPM has launched a website explaining the benefits of the program at www.opm.gov/insure/ltc. The program will be available in 2002, first during an early enrollment period and then during open season.

HAPPY HOLIDAYS AND

A PEACEFUL NEW YEAR