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NALC Statement on USPS’ Q2 financial report

 

 

May 10, 2013—Statement from Fredric Rolando, president of the National Association of Letter Carriers, about the USPS financial report today.

 

The Postal Service’s financial report—which included the first revenue increase in five years—reflects an improving financial picture as the economy gradually improves.

Operating revenue in the most recent fiscal quarter was $121 million higher than the same period a year ago, while expenses fell by $1.2 billion.

This positive trend undermines the doom-and-gloom scenarios postal critics cite—and it shows the folly of reducing services to Americans, as the postmaster general seeks to do.

As Chief Financial Officer Jim Corbett stated, increases of 2.4 percent increase in advertising revenue from mail and a striking 9.3 percent jump in revenue from package deliveries—an increase of $267 million—largely offset a 2.7 percent decline in first class mail revenue.

Friday’s report shows the absurdity of taking the radical step of degrading the postal network by eliminating Saturday delivery. This would cost the USPS its competitive advantage, drive customers away, reduce revenue and make the Postal Service less able to adapt to an evolving society.

The report also shows the urgency of fixing the congressional mandate that the USPS pre-fund future retiree health benefits decades in advance. Pre-funding—which no other agency or company is required to do—accounts for 90 percent of this year’s red ink, according to the USPS report.

The sharp rise in Postal Service package deliveries, which reflects the opportunities offered by the Internet, outpaced the two major private competitors, the CFO reported.

This was accomplished with the smallest USPS career workforce since 1966, the USPS said, because of record worker efficiency.

The report shows the USPS moving sharply towards breaking even, despite a still struggling economy. The agency reported a $200 million operating loss in the first half of fiscal 2013; in the full fiscal year of 2011 it had a $5.1 billion operating loss, and $4.8 billion in fiscal 2012. Instead of the postmaster general’s “shrink to survive” strategy—which will only begin a death spiral for the USPS—what is needed is a dynamic business plan for the future to take advantage of the many opportunities for growth, including in the exploding package delivery market.

 

Make Mommy Proud: Contribute to the Nation’s Largest Single-Day Food Drive

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WASHINGTON , May 8, 2013 /PRNewswire-USNewswire/ – The day before Mother’s Day, make mom proud by contributing non-perishable foods to help Stamp Out Hunger.

On Saturday, May 11, the U.S. Postal Service and the National Association of Letter Carriers will deliver for America by conducting the nation’s largest single-day food drive. Other partners of the food drive include the National Rural Letter Carriers’ Association, AARP, Feeding America, Campbell Soup Company, Valpak, United Way, AFL-CIO, Uncle Bob’s Self Storage, GLS Companies, Publix, Source Direct Plastics and Valassis.

“The Postal Service is proud to again join forces with the National Association of Letter Carriers, the National Rural Letter Carriers’ Association, and other partner organizations to conduct the nation’s largest single-day food drive,” said Postmaster General Patrick R. Donahoe . “With more than 50 million Americans living at risk of hunger, food banks across the country continue to experience record demand for emergency food assistance. Together, we are helping to address this demand and making a difference in the lives of millions of Americans in communities throughout the nation.”

The nation’s 175,000 letter carriers will collect food donations left at the mailboxes of generous Americans in more than 10,000 communities and deliver them to food banks and other hunger relief organizations, such as pantries, soup kitchens and shelters.

You Can Help…

  • Helping Stamp Out Hunger is as easy as checking your mailbox. Just leave a bag of non-perishable food items by your mailbox on Saturday, May 11. Your letter carrier will then pick up and deliver the food to a local food bank. Examples of non-perishable items include:
    • Peanut butter
    • Canned soup
    • Canned meats and fish
    • Canned vegetables, fruits and juices
    • Boxed goods (such as cereal)
    • Pasta and rice
  • For more information about the annual Stamp Out Hunger food drive, ask your letter carrier, contact your local post office or visit either www.helpstampouthunger.com or www.facebook.com/StampOutHunger, and follow the food drive at www.twitter.com/StampOutHunger.

 

NALC’s Rolando addresses PostalVision 2020 conference

April 24, 2013 — At Wednesday’s session of PostalVision 2020, NALC President Fredric Rolando explained in persuasive — and un-rebutted — terms why going to five-day mail delivery is neither warranted nor wise, and would in fact be destructive.

The factor accounting for almost all of the Postal Service’s red ink, Rolando told the audience at the L’Enfant Plaza Hotel in Washington D.C., is the congressional mandate to pre-fund future retiree health benefits for the next 75 years and do so within a decade, a requirement faced by no other agency or company in America.

"It’s important to face up to where the losses are coming from," President Rolando said, as he made the case against eliminating Saturday delivery, as pushed for by the postmaster general and anti-worker elements in Congress.

In the most recent fiscal quarter, Rolando said, that mandate accounted for all of the red ink — in fact, in operational terms, the USPS had a $100 million profit delivering the mail, Rolando said. And so, pre-funding is the issue that Congress needs to address to set the Postal Service on a sound financial course.

Later, as the panel concluded, the conference’s host turned to President Rolando and said, "I think you’ll find a lot of agreement with you," and singled out the need to address pre-funding.

Rolando was on a four-member panel titled "The Road Ahead."

Outlining how well situated the USPS is in terms of its future pension and health benefit obligations, President Rolando said, "This is the richest ‘broke’ company I’ve ever heard of."

Further, he said, it is illogical to try to "right-size" the unique universal network of the USPS without first defining its mission in an evolving society. It’s clear that people have changed the way they communicate, and that the Postal Service needs to adapt — and "slashing" services and the network before developing a plan of how to adapt makes no sense and would be self-defeating.

Those pushing for a reduction of services to the American people aim "to take the Postal Service in a different direction from what it was established for — to serve the American people," Rolando said.

"It’s time to be honest with the American people. This isn’t just about Saturday delivery. It’s about ideology, about selling off the Postal Service for corporate profit."

One reason the Postal Service is so well trusted — and that letter carriers do so much in terms of community safety and well-being — is that there is a stable workforce of letter carriers who work in the same neighborhoods for years and develop knowledge of, and ties to, their customers.

There are ways to save money that don’t involve degrading the network, including changes in health care provisions and pricing reforms, and a plan should be developed to grow the business and increase revenue, Rolando said. Labor costs have decreased in recent years, even as worker productivity has reached record highs, he said.

"The Postal Service has a great future," Rolando said, noting the "unlimited" future of e-Commerce, but the USPS needs improved leadership. The current Board of Governors suffers from too many vacancies and too little business expertise.

"We’ve got to get a governance structure in there that has a vision for how to run a $65 billion company," and that understands the concepts of growth and profits, Rolando said.

Read more: Rolando testifies before House committee.

Letter Carriers’ Annual Food Drive Set for May 11 Throughout Nation

Donations Critical in This Difficult Economy; Effort Will Help Feed Needy Families in All 50 States

WASHINGTON, April 22, 2013 /PRNewswire-USNewswire/ – The National Association of Letter Carriers (NALC) will conduct its 21st annual food drive to combat hunger on Saturday, May 11. Letter carriers will collect non-perishable food donations on that day as they deliver mail along their postal routes.

It is the nation’s largest single-day food drive, and is held annually on the second Saturday in May in 10,000 cities and towns in all 50 states, the District of Columbia, Puerto Rico, the Virgin Islands and Guam.

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Rolando: PMG’s Press Club speech paints improved financial picture

April 19, 2013 — In his appearance Friday at the National Press Club, Postmaster General Patrick Donahue said that the Postal Service will have an operational loss of $1.7 billion this year.

“This reflects a sharp improvement in the financial picture at the USPS, as the economy improves,” NALC President Fredric Rolando said in a statement afterward. “And it is dramatically different from the doom-and-gloom scenarios postal critics cite.

“In fiscal 2011, the operational loss was $5.1 billion and in fiscal 2012 it was $4.8 billion. The 2013 figure of $1.7 billion stated Friday shows a positive trend, with red ink from operations down by about two thirds. Indeed, in the first quarter of fiscal 2013, the Postal Service had an operating profit of $100 million. All this occurred delivering six days a week.

“These figures—and this trend—show the folly of now taking the radical step of reversing decades of congressionally approved six-day delivery and eliminating Saturday delivery. This would cost the USPS its competitive advantage, drive customers away, reduce revenue and make the Postal Service less able to adapt to an evolving society.

“Instead of a ‘shrink to survive’ strategy—which will only begin a death spiral for the USPS—what is needed is a dynamic business plan for the future to take advantage of the many opportunities for growth, including in the exploding package delivery market.”

 

NALC’s Rolando testifies at oversight hearing

April 17, 2013 — NALC President Fredric Rolando was among those called to testify today on Capitol Hill before a House Oversight and Government Reform Committee hearing on the Postal Service’s financial situation.

The hearing began with several representatives accusing Postal Service Board of Governors Chairman Mickey Barnett of backing away from USPS’s announced plan to reduce the number of delivery days each week from six to five beginning in August because of intense pressure from postal unions.

But under closer questioning from lawmakers, Barnett and Government Accountability Office Comptroller General Gene Dodaro made it clear that the decision not to unilaterally reduce the delivery schedule resulted from the need to follow the law, which calls for a six-day delivery schedule.

Rolando said that on the merits, eliminating Saturday delivery would be a costly mistake that would not only make it harder for the Postal Service to grow the business but also would cost money by driving away customers.

Testifying alongside Postmaster General Patrick Donahoe on the second panel, President Rolando said it was not necessary to reopen postal union contracts in search of cost savings. “Renegotiating contracts is unnecessary,” the president said, “because our recently arbitrated agreement allows us to look for ways to work with the Postal Service to find cost reductions, in health care expenses and in an improved route adjustment process.

“Before we start make changes to the workforce or to the delivery schedule,” Rolando said, “we need to focus on deciding what Postal Service’s mission is.“

Committee members should focus on finding ways to strengthen the Postal Service for the future, not on slashing services and dismantling the universal network, he said.

“I don’t see where this is a partisan issue,” he told the committee. “This is America’s Postal Service.”

Click here to read President Rolando’s submitted written testimony.

 

NALC calls USPS bid to renegotiate contracts “insulting and unnecessary”

NALC President Fred Rolando says he’s “gratified” that the USPS Board of Governors has, for now, pulled the plug on plans to discontinue Saturday mail delivery. The NALC is not pleased with another of the Board’s decision to ask the unions to reopen contract negotiations in order “to lower total workforce costs”:

“The Board’s call to reopen and renegotiate the postal labor contracts is yet another sign that the Postal Service needs new executive leadership. Asking the NALC to renegotiate a contract that was just settled in January is insulting and unnecessary. The new agreement, which reduced starting pay by 25 to 33 percent and allows for major health care savings, provides for several labor-management task forces to work on ways to increase revenues and cut costs.

Read more: Latest News | NALC President Rolando statement on USPS Board of Governors announcement.

BJ’s apologizes for flyer that ‘missed the mark’

BJflyerBJ’s apologizes for flyer that ‘missed the mark’: The CEO of BJ’s Wholesale Club has sent a letter apologizing for a mailing that began hitting post offices across the country this week. The mailing was apparently intended to acquire new customers and contained some humor directed at letter carriers. “While the message was supposed to be humorous, we may have missed the mark,” BJ’s President and CEO Laura Sen wrote. “We apologize to the U.S. Postal Service and mail carriers for any offense or misunderstanding caused by our mailer message.” The 15 states targeted by the mailer are Connecticut, Delaware, Florida, Georgia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island and Virginia. Click here to see the flyer, and click here to read the apology letter.

NALC | The National Association of Letter Carriers, AFL-CIO.

NALC: Rallies Sunday to Preserve the Postal Service

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WASHINGTON, March 21, 2013 /PRNewswire-USNewswire/ – Letter carriers will hold rallies around the country Sunday in a day of action for a strong U.S. Postal Service and continued Saturday mail delivery. They will be joined by others in their communities who recognize the importance of maintaining universal mail service six days a week.

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Video: Retired letter carrier’s pension, health insurance stop after OPM declares him dead

LITTLETON – Jim Clarkson has spent the last six weeks trying to prove to Washington D.C. based bureaucrats he’s not dead.

The 75-year-old’s deceased status caused him to lose his pension and some of his medical benefits.

"I haven’t received the January, February or the March [pensions]," Clarkson said. "That’s three months pension that I haven’t received."

The 30-year veteran of the U.S. Postal Service has been retired for a while and has been drawing a pension paid by the Office of Personnel Management.

Read more: Mistake delays pension benefits for Littleton Man | 9news.com.