Factfinding Report Validates NAPS’s Position that EAS Pay Rates and Pay System Have “Serious Flaws”

On April 30, 2019, a factfinding panel commissioned by the Federal Mediation and Conciliation Service issued its Report and Recommendations in response to NAPS’s challenge to the Postal Service’s pay plan for postal managers and supervisors covering fiscal years 2016-19.

Approximately 45,000 managers, supervisors and postmasters are covered by the Executive Administrative Schedule (EAS). The panel agreed with NAPS on nearly every aspect of its challenge to the USPS pay plan and recommended substantial changes to the Postal Service’s pay rates for EAS employees, as well as their calculation.

The panel’s recommendations are not a final Postal Service pay decision. The Postal Service, as required by law, must “give full and fair consideration to the panel’s recommendation(s)” and issue its final pay package within 15 days of the panel’s report. The law also requires the Service to “explain in writing any differences between its final decision and the panel’s recommendation.”

“We are gratified by the panel’s findings and recommendations to the Postal Service about how it pays EAS employees,” said NAPS President Brian J. Wagner. “The panel’s report validates the longstanding concerns of EAS employees about the fairness of their pay and the Postal Service’s compliance with the law.”

The panel found that the USPS’s Pay for Performance (PFP) system is broken and counterproductive. “[T]he Panel is of the opinion that the PFP program, as currently designed and administered, is seriously flawed in that it does not accomplish its objectives or comport with the requirements of the PRA [Postal Reorganization Act].” The panel “strongly recommends that the
parties establish a joint work group to examine and report on the issues of locality pay, SDA, PFP, and, possibly, a permanent Cost of Living Adjustment for career, non-bargaining unit employees who are in Field EAS positions”

NAPS presented a solid business case at factfinding with relevant documentation and credible witnesses. NAPS is pleased with the factfinding results, not only for all of its members, but for all EAS, too. “We trust that the Postal Service will agree to implement the panel’s recommendations,” President Wagner said. “NAPS looks forward to working with the Postal Service in promptly convening a work group to focus on those issues that require further joint study.”

A copy of the panel’s Factfinding Report and Recommendations is attached.