Latest News and Highlights  

PostCom is at NPF!  Come visit us at Booth #11 and download our special PostCom NPF Bulletin!  

 

 

National Association of Letter Carriers and the U.S. Postal Service Reach Agreement. The National Association of Letter Carriers (NALC) and the U.S. Postal Service have reached tentative agreement on a national labor contract, covering 213,000 active city letter carriers across America. The tentative agreement includes provisions rewarding all letter carriers for their contributions to the Postal Service’s extraordinary comeback following the Great Recession; narrowing the compensation gap between city carrier assistants (CCAs) and career letter carriers; creating a formal mechanism to address the problems that have undermined the workplace culture of the Postal Service for much of its history; and preserving the core achievements of our bargaining history, including regular general wage increases and cost-of-living adjustments (COLAs), protections against outsourcing and layoffs, as well as other contractual elements that define our standard of living.

U.S. Postal Service Reports Fiscal Year 2017 Second Quarter Results. The U.S. Postal Service posted modest controllable income for the second quarter of fiscal year 2017 (January 1, 2017 - March 31, 2017) of $12 million, short of the $576 million that it had for the same quarter last year. This reduction was driven by the April 2016 expiration of the exigent surcharge, which would have generated approximately $500 million in additional revenue during the quarter had it remained in place, and to a lesser extent, a $69 million increase in controllable operating expenses.

U.S. Postal Service and Other Parties File Brief in Support of PRC. On May 8, the Postal Service, Amazon Fulfillment Services, the National Association of Letter Carriers (NALC), and the Parcel Shippers Association filed a brief in a proceeding before the US Court of Appeals, DC Circuit wherein United Parcel Service had petitioned the court to review PRC orders regarding the attribution of costs. UPS is challenging the methodology used by the PRC to allocate costs among products. They argue that the strict causation standard used by the PRC to attribute variable costs does not properly account for how USPS products and services incur costs when multiple products share costs; for example when transportation costs are incurred when various products share truck space. Current attribution rules specify that costs are not attributed to a mail product without “reliable evidence” that the product causes the costs. UPS is advocating a broader definition that would allocate common costs in a way that would reduce the proportion of USPS costs that are currently defined as institutional. In their brief, the parties argue that governing statute, regulatory precedent, and analytical principles support the PRC’s long-standing approach to attribution. Further, the parties contest the appropriateness of UPS’ petition given the pendency of a proceeding before the PRC that will determine what share of the Postal Service’s institutional costs must be funded by competitive products and services.

PRC Releases Financial Analysis Report.  On Friday, March 31, the PRC released its Financial Analysis Report which analyzes the USPS's financial position in FY 2016.  In FY 2016, the Postal Service generated its third consecutive year of Operating Income despite an increase in operating expenses and the expiration of the exigent surcharge in April 2016.  When all adjustments are included, the net operating income of $0.6 billion becomes a total net loss of $5.6 billion, a deterioration of $0.5 billion compared to FY 2015. The increase in the total net loss is largely driven by a $1.5 billion increase in overall compensation and benefits costs and an increase in non-cash workers’ compensation expense of $0.9 billion caused by a decrease in the discount rate. 

 

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Five Things You Need to Know

  1. USPS posts $12 Million in Controllable income Q2 2017 
  2. House Oversight & Government Reform Committee approves H.R. 756.
  3. Informed Delivery now Available Nationwide. 
  4. NALC & USPS reach tentative Agreement on a National Labor Contract 
  5. Rep. Jason Chaffetz (R-Utah) announced he is leaving Congress before his term ends. 

Upcoming Events

  • 5/21/17 - 5/24:  National Postal Forum, Baltimore, MD 
  • 5/25/17, 9:30 am ET, Hearing on the Stopping the Shipment of Synthetic Opioids: Oversight of U.S. Strategy to Combat Illicit Drugs
  • 6/13/17, PostCom Study Day/Legislative Meeting - Open to all Members   Register Here
  • 6/14/17, PostCom Board of Directors Meeting Register Here
  • ICYMI: All past USPS presentation are available on RIBBS.