Postal Service proposes cutting 120,000 jobs, pulling out of health-care plan

The Postal Service has reduced its workforce by 212,000 positions in the past 10 years and recently announced it is considering the closing of 3,700 post offices. It also has asked Congress to allow it to deliver mail five days a week instead of six and to change a requirement that it pre-fund retiree health benefits.

The USPS said it needs to reduce its workforce by 120,000 career positions by 2015, from a total of about 563,400, on top of the 100,000 it expects by attrition. Some of the 120,000 could come through buyouts and other programs, but a significant number would probably result from layoffs if Congress allows the agency to circumvent union contracts.

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The U.S. Postal Service wants to cut 120,000 jobs as it reports another loss in revenue.

The U.S. Postal Service wants to cut 120,000 jobs as it reports another loss in revenue.

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“Unfortunately, the collective bargaining agreements between the Postal Service and our unionized employees contain layoff restrictions that make it impossible to reduce the size of our workforce by the amount required by 2015,” according to the optimization document. “Therefore, a legislative change is needed to eliminate the layoff protections in our collective bargaining agreements.”

The layoff protection, however, does not apply to employees with fewer than six years of service, which presumably would include thousands of workers.

Postal union leaders quickly and sharply rejected the plans.

“The APWU will vehemently oppose any attempt to destroy the collective bargaining rights of postal employees or tamper with our recently negotiated contract — whether by postal management or members of Congress,” American Postal Workers Union President Cliff Guffey said.

“Our advisers are not encouraging us at all to even consider it,” said National Rural Letter Carriers’ Association President Don Cantriel.

“We are absolutely opposed” to the layoff proposal, he said. “We are opposed to pulling out of the Federal Employees Health Benefits plan.”

National Association of Letter Carriers President Fredric V. Rolando said: “The issues of lay-off protection and health benefits are specifically covered by our contract. . . . The Congress of the United States does not engage in contract negotiations with unions, and we do not believe they are about to do so.”

How Congress will respond to the proposals, however, remains to be seen. Many Republicans, including those who have sponsored legislation that labor considers anti-union, may support the plan. Some Democrats, for which organized labor is an ally, could back union opposition. But the Postal Service’s critical financial situation could make some Democrats have second thoughts.

Two members of Congress who have introduced separate postal reform bills were noncommittal on the USPS plan.

A spokeswoman for Sen. Thomas R. Carper (D-Del.) said, “He is particularly interested in learning whether these proposals would be fair to employees and effective in reducing the Postal Service’s costs.”

Rep. Darrell Issa (R-Calif.), chairman of the House Oversight and Government Reform Committee, said: “These new ideas from the Postal Service are worth exploring. Options for reform and cost savings that will protect taxpayers from paying for a bailout, now or in the future, need to be on the table.”

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