USPS offers $20,000 incentive and early out for some management employees

Postmaster General Pat Donahoe today announced a newly redesigned Postal Service, one that is better positioned for growth, reflects further alignment within the organization to achieve core business strategies and, when fully implemented, by March 2012, will eliminate almost $750 million in costs to the organization.

“Over the past 8 weeks, we have been taking a careful look at our internal structure — the way we position our people — and determining the best way to align the organization to succeed in a more competitive world,” said Donahoe. “We also have been making some tough but necessary decisions that will enable us to better meet the needs of our employees, our customers and the American public.”

Donahoe said a strong plan has been developed that will result in a leaner, less bureaucratic structure that creates greater efficiencies among managerial and administrative functions.

The announced redesign reduces administrative layers and achieves a 20 percent reduction in authorized administrative office complement and Postal Career Executive Service (PCES) positions.

Seven districts will be closing. A general announcement identifying the districts will be made March 24, after employees in those districts are notified.

Voluntary Early Retirement (VER) and financial incentive programs will be offered to eligible career non-bargaining employees in targeted groups at Headquarters, Headquarters-related Field Units, Area Offices and Customer Service District Offices (Administrative).

* The incentive program is $20,000 and is offered on a first come, first-served basis to eligible employees who choose to leave on the May 31, 2011, effective date through a VER, optional retirement or voluntary resignation. The incentive will be paid in two equal payments of $10,000 distributed in November 2011 and November 2012.

* To be eligible for the incentive, employees must begin the optional retirement process or submit voluntary resignation by the deadline of April 25, 2011. The same date, April 25, also is the irrevocability date for employees who accept the VER offer.

* Disability retirements and Federal Transfers are not eligible for the incentive. Employees in a probationary status as of March 23, 2011, are not eligible.

* Employees already in progress as of March 23, 2011, for optional retirement or voluntary resignation with a scheduled retirement or separation date on or before May 31, 2011, will be permitted to retire or separate on the scheduled date and be eligible for the incentive.

* Further details of the VER and incentive programs will be available on the Organizational Change website.

Donahoe said employees will be given comprehensive information to help them make the best decisions about their future. “I know change can be challenging,” he said. “I thank all of our employees for their continued dedication and focus on continuing to provide high levels of customer service while the organizational redesign proceeds.”

Efforts in the coming weeks and months will help the Postal Service become a leaner, faster and smarter organization, Donahoe said. “The redesign will improve our financial situation, ensure that we are better able to compete for customers, and provide greater value and service to the American public.”

via USPS News Link – MARCH 23, 2011.

For more, see the USPS Organizational Change web site.

  • Jim

    They could get rid of 40% of these positions and no one would ever notice.

  • seenoevil
  • Tony

    What about PM’s..again nothing.

  • Disgusted

    I’m gone. Almost went 3-3 but sure glad I waited a month

  • Daryl

    I work with ALOT of bargaining employees (clerks) that are very disappointed…they were ready to jump ship even without any incentives. If this VERA trickles down I bet the monetary incentives will disappear!!

  • vincent

    Let’s see five week’s vacation , 12 days sick leave 10 days holiday , $55,500 pay a year +over time of $15,600 last year. for $10,000 IN six month and $10,000 in NOV 2012. HELL NO

  • Joe Mama

    Where did everyone get the idea that this incentive announcement was for clerks and carriers? All that was ever mentioned by HQ regarding reductions at this time were upper mgt. Craft will most likely be offered by years end, especially since the NALC hasn’t even started talks yet and clerks haven’t even ratified their offer yet.

  • cindy

    there will be no more early outs.
    RIFS will be it.

  • Terry

    It should be interesting. Hdq management does not have a clue to the effects of last years RIF and whom or what is really holding everything together within the organization. The clerks and carriers have it rough doing more with less and a lot of lower managment is doing two or three different functions to keep it all together. It is as if the current process is to take the Postal Service private in the future and then the American public will really understand what they had and lost. All things are being done on the assumption that mail flow is perfect day to day and conditions are the same from Post Office to Post office and this is not so. We live in a fluid work enviroment that differs daily from one office to the next. It can not be accurately micro- managed and be truthful with the results in every location. Just like there is a tolerance applied to financial issues, there needs to be a tolerance applied to daily operations to properly achieve what senior management is about to do. And let’s be honest, except for what Congress mandated of the USPS in 2006, we have been actually making a profit. The true figures speak for themselves. Sox, why? We do not fall under the SEC. Front loading of retirement benefits? What other organization does that? Presently the Government owes the USPS somewhere between $50-$75 BILLION dollars. Show me the money, then we adjust what is necessary!

  • Payola

    Terry, will you please stop making sense. After all, we are talking about the U.S Postal service here.

  • brian

    So vincent- based on your math, no one should ever retire because they would make more money not retiring? I guess you’ll be one of those people we read about in a few decades vying for the title of oldest postal worker. Whatever turns you on!

  • Rodney King

    Brilliant offer. So it’s 10 at the end of this year & 10 late next year or work 4 more months and earn 20, then retire. What should one do? As in 2009 the only people retiring are the ones set to go anyway.

  • brian

    Rodney- so you think you’re better off getting $20K for working 4 months than getting $20K for NOT working 4 months?

  • piastasucks

    I heard Houston, Northern New Jersey, Westchester
    are the first three Districts being closed.

  • Danny

    These jobs were meaningless anyway 20+ years of nodding off?
    They should just have gotten the axe not a
    Bonus! Smart people run this place! Highly educated…
    I meant friends of friends……! Keep the top fat you
    Dumb cats!!

  • RW

    The Postal Service throws money away everyday. Take the money and run. The craft employees of today don’t give a damn about anything, especially the quality of their work. Get rid of all collective bargaining agreements and save the Postal service retirement for those that actuall cared about their jobs “WAY BACK WHEN.”

  • Don

    This will only push someone off the fence if they were already “on the fence” about retireing. We may see some sort of incentive for clerks once their contract is ratified. Since it allows for up to a 20% complement of “clerk assistants” who will start at a much lower ( my guess $14/hr +- ) and never reach current top wage levels, less annual & sick leave. Do the math: top wage step $27+-, new hire $14+-, 1800+- work hours in a year. They could offer $25,000 and SAVE that the FIRST YEAR for each old timer ( CSRS) they replace !!!!!

  • Barb Erickson

    How do we go about getting the retirement incentive? Who do we contact. I am in Houston district.

  • scott

    Is this not the same deal in 91 or 92 whith the same thing in mind,get rid of management? then look what happened

  • Jose

    INCENTIVE EARLY out for carriers will be coming toward the end of the year. With DPS flats here, each office will be eliminating 3 to 7 routes per office.
    What are they going to do with all the carriers that have no jobs ?? and the Clerks ??
    INCENTIVE early out is the only way, unless they start firing people ?? Old timers hang in there a few more month’s.

  • The tired mailman

    It looks like no early out for craft. gotta tough it out.

  • ury marcus

    incentives are nice, you need to look at what might happen to your supplement from opm,if eligible,feers people.if an incentive and it is split over two years,there is the potential for your supplement check from opm to be reduced.so you or we need to look at this,and the powers to be need to offer and give us any incentive all in one offer.otherwise,for me,it is not going to be worth it.