April 30, 2003 Response of Murray Comarow to the statements of Anthony J. Vegliante, U.S. Postal Service William Burrus, American Postal Workers Union William F. Young, National Association of Letter Carriers on April 29, 2003 Before the Presidential Commission on the USPS Perhaps it is time to review a few basic facts with respect to collective bargaining in the U.S. Postal Service. Postal workers are federal employees. The Postal Service is not quasi-government or quasi-private, it is part of the executive branch of the U.S. government. Federal employees have never had the right to strike. That prohibition does not stem from the Postal Reorganization Act of 1970. Except for the USPS, federal employees' wages are set under congressional guidelines by duly authorized federal officials. Postal wages, 80 percent of postal costs, are negotiated under threat of arbitration, or set by individual arbitrators, who have no responsibility for management. Most studies reveal that postal workers arc paid at least 30 percent more than comparable workers in industry: $54,000 a year for letter carriers; $52,000 for clerks (including retirement and health benefits). There is no sound public policy which supports the view that only one federal agency's employees should have their wages set by arbitrators. The unions have skillfully and effectively defended their unique advantage. In their place, I would do the same. The Postal Service, on the other hand, has historically been unwilling to publicly identify arbitration as a root cause of its labor costs, although many postal governors and officials are convinced that is the case. Mr. Vegliante's statement touches on this issue, but does not deal with it head-on. Doing so would unleash a major stack by the unions and their supporters in Congress. USPS officials have been reluctant to launch an initiative which would be "dead on arrival" on the Hill. A presidential commission, not concerned with long-term good relations with the Congress. business mailers, unions, or competitors, is positioned to deal with this fundamental issue. It should consider these options: 1. Abolish binding arbitration; set postal wages tinder congressional guidelines after mediation. 2. Less desirable, recommend final best offer arbitration; this should force both parties to take more reasonable positions. 3. If the present system is not to be fundamentally altered, have three neutral arbitrators on the panel. The law should require them to take the Postal Service's financial situation fully into account. This issue is being ducked by mailers and by the Postal Service. It is up to the Commission. Murray Comarow, a lawyer, is a director and senior fellow of the National Academy of Public Administration. Among other positions, he was a Distinguished Adjunct Professor and Acting Dean of the College of Public and International Affairs at. American University; executive director of President Johnson's Commission on Postal Organization in 1967-68; executive director of President Nixon's Advisory Council on Executive Organization in 1970-71; executive director of the Federal Power Commission; and Senior Assistant Postmaster General of the United States Postal Service. The views expressed in this "Response" are his own.