Forty-seven members of Congress have signed a letter to Postmaster General Patrick Donahoe urging him to stand by his commitment to keep more than 70 mail processing facilities open until next spring.

“We believe it would be imprudent of the United States Postal Service (USPS) to close or eliminate processing of mail, at any facility, ahead of schedule,” the May 20 letter [PDF] says.

The letter was written in response to management’s decision to close or consolidate 71 mail processing facilities this year that were scheduled for possible consolidation in 2014.

Maintaining operations at the mail processing centers would allow Congress to take action on postal reform legislation, the letter said. “It is critically important the Postal Service not preempt Congressional action by unilaterally moving forward with elimination of overnight delivery, allowing for major shutdowns across the country of mail processing facilities,” the letter said.

The letter was initiated by Rep. Rosa DeLauro (D-CT) and was signed by numerous legislators who represent districts where facilities are set to close ahead of the timeframe the USPS announced last year. Rep. DeLauro has spearheaded efforts to prevent the closure of the Southern Connecticut Mail Processing Facility, said Bob Johnson, president of the Greater Connecticut Area Local. Her office has worked closely with Northeast Region Coordinator John H. Dirzius and the local on these efforts, he said.

The letter echoes requests by the APWU urging the Postmaster General to honor the commitment made to communities, lawmakers and postal workers, and encouraging legislators to move quickly to prevent the USPS from implementing the consolidations ahead of schedule.

In a May 16 letter to affected local and state presidents, Executive Vice President Greg Bell noted, “The Postal Service continues to use the lack of action by Congress to justify moving forward with its mail processing consolidations plan. By accelerating plans to close mail processing centers, the Postal Service intends to make saving these facilities a moot point.”

President Cliff Guffey praised the letter. “We are pleased that these members of Congress have recognized the urgency of the situation,” he said. “Accelerating the consolidations will unnecessarily disrupt the lives of employees, harm communities, delay service, and drive away customers,” he said.

“If management is preparing to close your plant and your representative has not signed the letter, we encourage you to find out why,” he added.

Office of Rep. Blake Farenthold (R-TX) News Release

WASHINGTON – U.S. Representative Blake Farenthold (TX-27), Chairman of the House Oversight Subcommittee on the Federal Workforce, U.S. Postal Service and the Census, today held a hearing looking at the time it takes the Office of Personnel Management (OPM) to process federal worker pension claims.

“2.5 million retired federal workers and their survivors rely on their pension check every month to make ends meet. What’s shocking to me is that OPM, who administers these checks, does it the same way today that they did it in 1987. This lack of modernization has resulted in a backlog of 30,000 claims, while the OPM averages $100 million each year in payments to deceased annuitants and survivors. OPM’s processing of these claims is clearly not efficient and effective and just reinforces the government’s poor IT record,” said Congressman Farenthold in his opening statement.

“While the President’s budget recommends $2.6 million to fund a case management system, the budget is short on detail and provides little guidance on how OPM will achieve a modern system. We’ve seen hundreds of millions of dollars wasted in failed information technology contracts, yet reform still seems vague,” continued Rep. Farenthold.

The Subcommittee heard testimony from Mr. Patrick McFarland, Inspector General at the U.S. Office of Personnel Management, Mr. Kenneth Zawodny, Associate Director of Retirement Services at the U.S. Office of Personnel Management, Ms. Valerie C. Melvin, Director, Information Management & Technology Resource Issues, U.S. Government Accountability Office, Mr. Joseph A. Beaudoin, President, National Active and Retired Federal Employees Association, and Dr. George Kettner, President, Economic Systems, Inc.

During the questioning portion of the hearing, Congressman Farenthold spoke to the benefits of using technology to modernize and streamline OPM’s processing of retired federal employee pension claims.

“Do you see some things that OPM could do immediately to kick the technology up, save some time and get the claims processed faster?” Rep. Farenthold asked government IT expert Valerie Melvin.

“The approach that they are taking now, which we see as a very modest, incremental step…is probably a prudent and risked-based approach for them to take, given their inability to be successful with such initiatives in the past,” replied Ms. Melvin.

Congressman Farenthold asked the same question to Dr. Kettner, whose company, Economic Systems Inc., specializes in data entry software.

“I think there are certainly steps that could be taken immediately, and I think you’re entirely correct in thinking that more could be done at the agency level. That’s where the data comes from and where much more can be done. There is no reason in the world the data should not be given to OPM electronically,” concluded Mr. Kettner.

OPM has less than 60 days to achieve its short-term goal of reducing the backlog and processing 90 percent of claims within 60 days. In response to a question from Representative Farenthold about meeting this short-term goal, Mr. Zawodny expressed some insecurity but told the committee he was hopeful it could be met.

Read more: Factiva.

WASHINGTON – Today, Homeland Security and Governmental Affairs Committee Chairman Tom Carper (D-Del.) and Ranking Member Tom Coburn (R-Okla.) released the following reactions to the announcement that the U.S. Postal Service lost $1.9 billion in the second quarter of fiscal year 2013:

“Today’s announcement that the U.S. Postal Service lost $1.9 billion in the second quarter of Fiscal Year 2013 shouldn’t come as a surprise to anyone,” said Chairman Carper. “While this quarter’s losses are less compared to the $3.2 billion lost this time last year, a $1.9 billion dollar loss is nothing to celebrate. The reality is that any financial loss at this rate is unsustainable and threatens the Postal Service’s long-term viability. As I’ve said time and time again, Congress and the Administration need to come to agreement on comprehensive legislation that reforms, right-sizes and modernizes this American institution. Although the Postal Service has seen an increase in revenue from package delivery – which is encouraging news — much more must be done to make its outdated business model financially viable long term. It is critical that we complete the difficult work ahead of us and find a solution to the Postal Service’s serious but solvable financial crisis as soon as possible – and today’s financial report should underscore that sense of urgency. We can’t afford to wait any longer.”

“Today’s announcement clearly demonstrates why postal reform is imperative. Unfortunately, this $1.9 billion loss in the second quarter of this fiscal year is only a small fraction of the $15.8 billion the Postal Service has lost since last year,” Dr. Coburn said. “While reform is necessary, the Postal Service should not wait on a parochial-minded Congress and must immediately take steps within its control to secure additional revenue and achieve cost savings, including potential action to secure additional revenue through price increases. I will continue to support giving the Postal Service the independence it needs to ensure its long-term viability.”

Among the pundits weighing in on yesterday’s USPS financial report was Slate’s Matthew Yglesias. He’s billed as the web site’s “business and economics correspondent”, so you’d think he’d be fairly good at arithmetic, but I have my doubts…

Here’s some of Matthew’s take on yesterday’s report:

This issue of the payments to retirees is interesting. I’ve heard plausible defenses of it, but at the same time it’s true that private-sector firms don’t account in this way. That said, if you add a $1.3 billion first-quarter loss to a $1.9 billion second-quarter loss, then it looks pretty clear that the USPS would be losing money even without the question of the $5.5 billion.

If you didn’t know better, you would probably come away from reading Matthew’s piece with the impression that the USPS has already lost $3.2 billion, on top of the $5.5 billion it’s supposed to come up with on October 1.

It hasn’t.

Let’s see if we can help Matthew out here. First of all, the USPS’s PAEA pre-funding obligation for this fiscal year is $5.6 billion. Even though the USPS doesn’t have $5.6 billion lying around to send the Treasury, it does take a charge on its books each quarter for one fourth of that amount. This is pretty simple math- if half the fiscal year has passed, then the USPS has already booked pre-funding charges totaling $2.8 billion as of yesterday’s Q2 report.

Now take a look at the year to date “loss” the USPS reported yesterday- it comes to $3.130 billion. That means that without the pre-funding requirement, the USPS YTD loss would be $330 million.

So yes, Matthew, the USPS would still be losing money this year without the pre-funding. But why didn’t you bother doing the math and explaining exactly what that loss would be? Why did you instead leave the impression that the USPS is losing billions even without pre-funding? Why didn’t you mention that 89% of this year’s loss is due to pre-funding? Why didn’t you explain that the USPS has already stashed away $44 billion in past profits to meet the PAEA requirements?

You do know all of that, don’t you?

Slate: USPS losses mount..

The US Postal Service today announced a second quarter “loss” of $1.9 billion. Most of the “loss”, $1.4 billion, results from bookkeeping entries required by the 2006 PAEA law, not actual cash expenses.  While the USPS has previously sought to have Congress modify the politically inspired PAEA retiree health benefit payment schedule, it now seems to have settled on a strategy that would allow it to eliminate Federal Employee Health Benefit coverage for current employees and retirees, slashing billions from its expenses. Here’s the USPS press release: Read the rest of this entry »

WASHINGTON, DC–Congresswoman Rosa DeLauro (CT-3) released the following statement on United States Postal Service (USPS)’s official notice that they will close the Wallingford Processing Center in September. The closure is expected to cost over 360 employees their job. The closure was originally scheduled for February 2014.

“I am outraged at USPS’s decision to consolidate one the region’s newest mail processing centers ahead of schedule. Our postal workers do an extraordinary service for the community and they should be treated with the respect and gratitude they have earned. That includes taking every opportunity to solve USPS’ financial problems without destroying these good middle class jobs.”

“USPS has unilaterally sped up with closing process, ignoring the many members of Congress who have tried to engage with them. This will cost millions of Americans across the country their job, including many veterans.”

DeLauro has repeatedly asked USPS for answers about their actions, including the accelerated closures, and advocated for alternative solutions. She has strongly opposed closing mail processing centers, redefining First-Class mail, and closing retail Post Offices, instead pushing Congress to approve comprehensive legislation that would put USPS back on the path of financial solvency. DeLauro is a cosponsor of the Postal Service Protection Act of 2013, which would remove the retiree benefits pre-funding burden from USPS and transfer the billions in overcharges back to the Postal Service.

Legislation to restore financial health to the U.S. Postal Service has gained more support in Congress, thanks in large part to the efforts of APWU members who have contacted lawmakers.

Support S. 316 and H.R. 630 Contact Congress Today! By Email: Click here to e-mail your legislators. By Phone: Call the Capitol switchboard at 202-224-3121 to reach your representative and senators. By Mail: Write to your member of Congress: [Name], U.S. House of Representatives, Washington, DC 20515. Send letters to your senators: [Name], U.S. Senate, Washington, DC 20510. Current Cosponsors of The Postal Service Protection Act Postal Reform That Makes Sense [PDF] Postal Service Protection Act     (S.316/H.R 630) Fact Sheet [PDF] [more about fixing USPS finances]

As of April 24, 20 senators and 120 representatives have signed on as co-sponsors of the Postal Service Protection Act (S. 316 in the Senate, H.R. 630 in the House).

The legislation would “go a long way toward solving the Postal Service’s financial crisis,” said APWU President Cliff Guffey.  “It would make many of the planned cutbacks in service unnecessary; give postal employees a greater sense of security, and give the American people a Postal Service they can count on for the future,” he added.

Guffey called on union members to continue reaching out to lawmakers who have not yet signaled their support for the legislation.

“Our members must make sure that lawmakers — and the public — realize that widespread plant closings will delay mail by two to three days all week long, in cities and towns across the country,” he said.

“Plant closures have already forced the USPS to eliminate 25 percent of overnight mail delivery,” Guffey noted in an April mailing to APWU members. “Another round of closures will cripple service, further weaken this great American institution, make it less relevant, and make it less competitive.

As key lawmakers in both chambers are said to be close to reaching a bipartisan agreement on postal reform, APWU Legislative and Political Director Myke Reid said, “Additional support for the Postal Service Protection Act can help convince lawmakers that Congress must act soon to pass a responsible bill that will improve service, protect postal workers, and strengthen the Postal Service in the digital age.”

The Postal Service Protection Act would:

• Fix the Postal Service’s immediate financial crisis by ending the mandate that requires the USPS to pre-fund healthcare benefits for future retirees — a burden no other government agency or private company bears;
• Allow the Postal Service to recover overpayments the USPS made to federal pension plans;
• Re-establish overnight delivery standards for first-class mail, which would ensure the timely delivery of mail, help keep mail processing facilities open, and protect jobs;
• Protect six-day delivery;
• Allow the USPS to develop new products and services that would generate new sources of revenue, and
• Protect post offices by giving the Postal Regulatory Commission binding authority to prevent post offices from being closed based on the effect on the community and the effect on the employees.

The White House has announced the nomination of D. Michael Bennett as a member of the Board of Governors of the US Postal Service. Bennett is a former executive of Northrup Grumman, one of the USPS’s biggest contractors, and one which is currently involved in a litigation with the USPS over the failed FSS automation program. More recently, Mr. Bennett has been an executive at BAE Systems, a worldwide arms manufacturer, and one of the US government’s biggest contractors.

Here is the official announcement:

D. Michael Bennett, Nominee for Governor, Board of Governors of the United States Postal Service

D. Michael Bennett is Senior Vice President of Information Management and Chief Information Officer of BAE Systems, a position he has held since 2010. Previously, Mr. Bennett was Vice President and General Manager of the Enterprise Solutions Business Area of BAE System’s Information Solutions Line of Business. He worked at Northrup Grumman, ultimately becoming Vice President for Contracts, Pricing, Procurement and Risk Management for Northrop’s Information Technology Sector in 1999. From 1980 to 1999, Mr. Bennett practiced law in various positions with Northrup Grumman, EDS Corporation, and the U.S. Department of Commerce. He serves on the Board of Visitors of the Howard University School of Business, Vice President of Duke University Alumni Association Board of Directors, and Chair of the Manna Ventures Board of Directors. In 2012, he received the Minority Business Leader Award from the Washington Business Journal. Mr. Bennett received a B.A. from Duke University and a J.D. from The George Washington University Law School.

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.