NAPFE
NEWSLETTER October 2001
NAPFE
NEWSLETTER October 2001
On September 20, 2001, new Postmaster
General Jack Potter testified before the Senate Committee on Government Affairs
on the Post Office’s response to the terrorist attacks, the application for a
rate increase and plans to reduced costs in light of expected deficits. Potter was able to report that the Postal
Service was able to get the mail from grounded planes and effect delivery. In response to questions on the rate
increase, Potter insisted on the Postal Service’s need for flexibility in
planning rates. See below for an
example of the Postal Service’s attempts at cost cutting.
Postmaster General
Potter has announced that the Postal Service will institute a management
reorganization plan in which 800 headquarter jobs will be eliminated and an 30
percent reduction in regional management offices. Potter also plans to reduce administrative staff by 10 percent.
The Postal Service plans to create a
private, employee owned company to investigate EEO complaints. The employee stock ownership plan will
function as a tax-qualified employee benefit plan in which most of the assets
will be invested in the company’s stock.
Last year, Postal Service employees filed 10,500 EEO complaints.
Citing the Postal
Service’s struggle to remain competitive under current market conditions,
former Postmaster General William Henderson has called for its privatization in
an article in the Washington Post.
Henderson argued that the Postal Service already operates as a $65
billion corporation with a board of directors and a profit and loss
statement. He suggests privatization in
the form of an employee-owned company allocating stock to workers over
time.
The General Accounting
Office (“GAO”) has issued a report in which it directs the Postal Service to
study pay disparities between postmasters and supervisors and the clerks and
carriers who work under them. As expressed
in the title of the GAO report, the reasonableness and adequacy of pay
differences is unclear. Representative
John McHugh (R-NY) requested the GAO report.
Kay Coles James is the
new Director of OPM. Confirmed this
past July, she has pledged to address the expected retirement crisis within the
federal government by enhancing minority employment outreach programs and using
incentives to retain experienced and high-performing employees.
In light of the recent
national tragedy, OPM is inviting former federal employees to return to
government service to help with emergency relief efforts. Interested employees can call 1-888-353-9447
to get a copy of the Federal Employee Re-employment Readiness form. Information requested includes names, social
security numbers, security clearance information, and former employment
history. The information will be sent
to interested agencies, which would then contact employees they wish to
rehire. The Postal Service is included
in the agencies participating in the program.
Citing an aging
workforce, costly medical technology and rising prescription drug costs, OPM
has announced that Federal employees’ health premiums will rise as much as 20
percent next year. The average increase
for premiums is expected to be 13.3 percent. The NAPFE Alliance Health Benefit
Plan is raising rates 10.4% for single and 8 % for family. Well below the OPM average.
The National will make
a donation to the victims of the
September 11th attack and is urging all Districts and Locals to
participate. Individuals interested in
making donations may contact any of the organizations listed below.
American
Red Cross is accepting donations through its website, www.redcross.org or
by phone at 1-800-435-7669.
The United Way along with the New York Community Trust has established
the September 11th Fund.
Those interested can contribute through www.september11fund.org
or at 1-800-710-8002.
Salvation
Army is accepting donations at www.redshield.org/crisis or at 1-800-725-2769.
The
New York State World Trade Center Relief Fund is accepting donations at www.helping.org and
800-801-8092.