Congressman Ross Open to Tradeoffs in Postal Reform Bill

In a set of tweets relating to a tweet promoting the Post, “Congressman Ross Clarifies His Position on Retiree Obligations,” Congressman Ross states that RepDennisRossDennis Ross @CEP_Observer It is not in there now, but there are many things that could change about the bill. Open to tradeoffs.   The full discussion in Twitter is as follows:   CEP_ObserverAlan Robinson Did @RepDennisRoss change his position on #usps FERS overpayment? What else did he say about retiree payments?   RepDennisRossDennis Ross @ @CEP_Observer didn’t change positions at all. even OPM says FERS is a diff story than CSRS. still, FERS “overpmt” is not in hand.   CEP_ObserverAlan Robinson @ @RepDennisRoss Then [...] Read more »

Congressman Ross Clarifies His Position on Retiree Obligations

In response to a comment on his Facebook Page, Congressman Ross clarified his position on prefunding and overpayments of retiree liability. Doc Piper’s Comment Rep. Ross, if you truely denied the overpayment of USPS to OPM, you are intentionally lying. OPM collects it into their budget with no reguard to the overpayment. If you are an honest Representative you will admit the money paid and demand it into a trust fund, so that no taxpayer will have to supplement the USPS. But you canot deny the payment made and then refuse its return. That’s a plain lie. Congressman Ross’s Response Post #1 FERS, perhaps, but not CSRS. The prefunding requirements is [...] Read more »

Representative Ross Indicates that Issa/Ross Bill will have no Change in Retiree Payments

In a tweet, Representative Dennis Ross hinted that the bill that Representative Darrell Issa and he will introduce tomorrow will not contain any change to the payment schedules for retiree obligations that are now contained in all other postal reform bills. RepDennisRossDennis Ross #USPS, this is why you prefund retiree benefits. | “no one else does…” and this is where they are now. If there are no changes in the payment schedules to reflect overpayment of either FERS or retiree healthcare benefits then the Issa/Ross bill will need to find quick reductions in Postal Service costs elsewhere.   There are few options but all will likely affect both compensation to [...] Read more »

Why Mail Matters: Macy’s

Macy’s today announced its First Quarter 2011 earnings this morning and provided another clear indication that the courier, express and postal industry provide the an increasingly important role by delivering web based sales to consumer’s homes.  The description of Macy’s sales in the press release provides an indication as to how important web-sold and home-delivered sales are to Macy’s Sales in the first quarter of 2011 totaled $5.889 billion, an increase of 5.7 percent, compared with sales of $5.574 billion in the same period last year. On a same-store basis, Macy’s, Inc.’s first quarter sales were up 5.4 percent. Online sales ( and bloomingdale’ combined) were up 38.3 percent in the [...] Read more »

Hiccups in Consolidation

Recently, the USPS-OIG issued a report on the consolidation of Lima Ohio processing into the Dayton Ohio plant.  The USPS-OIG conducted the investigation at the request of Congressman Jim Jordan (R-OH).   The audit showed that the transition did no go smoothly The result of the audit resulted in critical comments from Congressman Jordan but he did not call for processing to return to Lima Ohio.   In fact, his comments, and a careful reading of the USPS-OIG report clearly indicates that the problems in delayed mail that has occurred between December 2010 and March 20111 are solvable through better management of labor and capital assets and hiring additional staff in Toledo, Ohio.   The problems that [...] Read more »

Senator McCain’s Healthcare Premium Amendment Explained

In offering Amendment 251 ot S. 493, the bill reauthorizing a number of Small Business Administration programs, Senator McCain proposes to reduce the Postal Service’s share of the the health insurance premium from  81%  to 72%  and reduce the Postal Service’s share of the life insurance premium from 100% to 33%.   According to the Government Accountability Office this would have saved the Postal Service $619 million in FY 2009.   Given increases in health insurance premiums, this is likely significantly higher today. This amemdment has different effects for the Postal Service’s unionized and non-union employees.    The Postal Service could implement this provision nearly immediately for its non-union employees.  For unionized employees, it [...] Read more »

Why the April 5th Hearing is Important

The quotes from Congressmen Darrell Issa and Dennis Ross that have been quoted in the press have all come from  a press release of  the House Oversight and Government Reform Committee.    Most articles ignored the following quote “This hearing will establish an important baseline for Congress’ upcoming work on the Postal Service’s structure, fiscal health and self-governance,” from Congressman Darrell Issa that better than anything so far lays out the issues that the committee will look at in regards to the Postal Service.  These are: Postal Service’s structure – this most likely focuses on the management structure as well as questions regarding the network of processing plants and retail outlets, the use [...] Read more »

Compensation Comparison Chart

Thanks to my readers I was able to create a chart comparing Postal Service compensation to compensation at FedEx Express and United Parcel Service.  As all readers know FedEx Express is non-union UPS is organized by the Teamsters and the Postal Service is organized by one of four craft unions.  The Postal Service compensation figures are from 2009 and were provided by the Postal Service to reporters prior to beginning of negotiations with APWU and NRLC. The comparison’s are a bit disingenuous for the APWU includes a number of maintenance crafts that are higher paid then the most employees that sort mail.  Therefore a fairer comparison would compare the average compensation of employees that [...] Read more »

Tweets from Congressman Dennis Ross and Possible Implications for Postal Unions

In the last few days, Representative Dennis Ross has made a number of tweets regarding the conflict between the Governor and the teachers unions in Wisconsin.   While none of the tweets mention postal issues, they may provide a hint to stakeholders and policymakers  regarding the tone on labor issues that the House will take when discussing changes required to return the Postal Service to solvency.    RepDennisRoss Dennis Ross Hypocrisy & big labor are synonymous. RT @Reaganista: RT @JebBush: Must see video. Stay strong @GovWalker. #wiunion RepDennisRoss Dennis Ross Working on that. RT @michellemalkin: Unions get waivers from Obamacare. Why can’t workers get waivers from forced unionism? #wiunion RepDennisRoss Dennis [...] Read more »

Unbundling Postal Prices

Currently most postal customers have their rates set as a discount from a base rate for the class of the product being mailed.   The discount is based on an analysis of the savings generated from reductions in the amount of work that the Postal Service that the Postal Service does for the customers. One of the most common discounts for Periodical, Standard, and Parcel products are drop shipment discounts.  These discounts allow customers to reduce their rate by tendering the mail or parcels at a facility close to the destination. In order to get the drop shipment discounts, the mailer must either provide or purchase transportation services from their plant [...] Read more »