e-Team Report, March 8, 2013

Postal Service Protection Act Gains More Co-Sponsors

S. 316 and H.R. 630, bills endorsed by APWU President Cliff Guffey have gained more support in both houses of Congress.  The Senate bill has gained an additional 3 co-sponsors since February 14th; and the House bill has gained 31 co-sponsors. Among other things, the Act would end the aggressive and unsustainable pre-funding mandate that continues to be the primary cause of the Postal Services financial difficulties; refund the agency’s overpayments to FERS and the CSRS; and re-establish delivery standard that help keep mail processing facilities open.

APWU President Cliff Guffey and Legislative & Political Director Myke Reid would like to thank those who attended the National President's Conference and took the time to meet with their members of Congress and advocate on behalf of this commonsense reform.

Keep the pressure on!  Continue to contact your legislators or encourage others to do so to get these bills passed! To send a letter or email message to your legislators in support of S. 316 and H.R. 630, click here. To see if your representative in the House is a cosponsor of H.R. 630, click here. To see if your senators are cosponsors of S. 316, click here.

House Bill Would Recalculate USPS Payments to FERS

This week, Rep. Stephen Lynch (D-MA) introduced H.R. 961, the United States Postal Service Stabilization Act of 2013.  Through properly determining USPS pension costs, this bill could provide some much needed breathing room to the Postal Service’s financial situation. H.R. 961 would revise the way that the Office of Personnel Management (OPM) calculates how much the Postal Service owes the Federal Employees Retirement System (FERS) to fulfill its pension obligations.  Right now, OPM determines the Postal Service’s pension obligation based on data from the entire federal workforce, which differs greatly from the postal workforce.  

Rep. Lynch’s bill wisely calls for OPM to use postal-only data in determining Postal Service obligations to FERS.  Further, the bill allows for any overpayment to FERS determined by the recalculation now and in the future to be paid back to the Postal Service, which can put the funds towards its other financial commitments. To see the bill summary and status of Rep. Lynch’s H.R. 961, please click here.

Sequestration Threatens the Postal Service’s Bottom Line

Last week, the automatic across-the-board government spending cuts known as sequestration went into effect.  Although the Postal Service does not face a funding cut from sequestration, as it does not receive taxpayer dollars to begin with, the cuts still pose a serious threat to the Postal Service’s financial condition. 

Sequestration is projected to put a significant drag on the U.S. economy and cause the loss of some 750,000 U.S. jobs.  Much like the 2008 financial crisis, an economic slowdown brought on by sequestration could lead to a decrease in postal revenues and first-class mail volume.  Given the Postal Service’s already precarious financial condition, any significant drop-off in mail volume caused by sequestration makes the need for comprehensive postal reform legislation even more urgent.

To read more about sequestration’s effect on postal finances, please click here.

House Passes Measure to Keep Six-Day Delivery

This week, members of the U.S. House of Representatives passed a stop-gap spending measure, Continuing Resolution (CR), H.R.933, which includes a provision requiring the Postal Service maintain six-day delivery until November 1.  The measure passed in the House 267 to 151; with 137 Democrats and 14 Republicans voting against it.  The CR, which is meant to keep the government operating through the next six months, would maintain current appropriations levels for most accounts and keep discretionary spending at $984 billion after the March 1 sequester cuts began.

Within in the 270-page CR bill a few short – but significant –lines send a clear message rebuffing Postmaster General Patrick Donahoe’s plans to eliminate six-day delivery. For the more on the U.S. House’s move to keep six-day delivery, click here.  To view the text of H.R. 933, with relevant part at Line 3 on Page 244, click here (Heads up: this link is a 270-page pdf file).