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North Carolina Letter Carrier|Editor's Page
Health Care or Health Scare?
Postmaster General Pat Donahoe would like to have control over your health care. He says he can do a better job than the OPM-administered Federal Employee Health Benefits Plan (FEHBP).
This from the same man who is currently lobbying Congress in an effort to lay off 200,000 employees, shutter over 3,000 post offices, consolidate mail processing plants across the country, eliminate Saturday delivery (and later, another day), and limit employees collective bargaining rights.
He has your best interests at heart.
He agrees that the Congressional mandate forcing the USPS to pay $5.5 billion a year to pre-fund future retiree medical costs for the next 75 years is wrong. He also agrees that the government owes the Postal Service around $70 billion from its over-funded retirement plans. But despite this, and the fact that it would have actually made $600 million in profit over the last four years had it not been for this, it’s just not enough.
What he would like to do is remove all employees from the FEHBP and enroll them in one cobbled together by the Postal Service.
It, he says, will do a much better job than OPM and save the agency millions of dollars.
In a recent “State of the Business” video enjoyed by thousands of appreciative employees, Mr. Donahoe explained the plan this way:
“This (plan to take over your health coverage) ties into the larger picture of what we’ve been talking about over the last several months (the aforementioned service cuts, etc.) regarding legislative change. The whole idea and aim is to secure a strong financial future for the organization, the industry, and for you as an employee.”
That’s right, although Mr. Donahoe is committed to securing the financial future of the Postal Service and the mailing industry, he is also concerned about your welfare as well. He truly treasures you as a hard-working, loyal employee. As for the 200,000 workers he plans to lay off, not so much. But as for you, you he treasures.
But there’s more. Again, Mr. Donahoe: “While all of us have been taking great steps to reduce our costs, the health care cost is one we’re unable to address in its current model. We need to change this.”
You have been taking “great steps” to reduce costs haven’t you? In fact, you’ve been taking faster steps in an effort to carry your 10-hour route, plus part of another route, and be back in eight hours.
You’re a real trooper.
Finally, he says, “If we (that’s him and us together, a team) take over our own plan, cover 1 million people, employees and retirees (Wow, that’s everybody!), the experts tell us you can cut your costs by somewhere between 8 to 10 percent.”
Although Mr. Donahoe fails to name these “experts,” one of them definitely isn’t Walt Francis. Mr. Francis is an independent consultant and author who is the leading expert on the FEHBP. For over 30 years he has been the principal author of the annual Checkbook’s “Guide to Health Plans for Federal Employees.”
Mr. Francis had this to say about the PMG’s health care plan: “(The Postal Service) will be less competent and less efficient than the Office of Personnel Management, by far, in trying to run their own insurance program. Anything they propose to do, if it will help them financially, will necessarily involve reducing benefits, reducing their share of premiums or playing some financial game like stripping reserves.”
But Mr. Francis didn’t stop there. “Anyone who is expert in health insurance will recognize that it is nonsensical propaganda, written by someone who didn’t even know what he or she was talking about. This proposal is not about better health insurance, it is about finding ways to get money from someone, whether that be the public, the Treasury or the employees.”
Ouch!
Someone else who thinks the PMG’s health plan is screwy is Ron Ashkenas, senior partner at Schaffer Consulting in New York. In short, his firm helps organizations achieve their potential. He says of the Postal Service, “If you were an investor wouldn’t you want to look at the track record of the management team asking for money? The Postal Service has been notoriously slow in developing alternative business models, has allowed competitors to capture lucrative parts of its market, and has generally relied on pricing increases and service cuts to survive.”
No, he’s definitely not a fan of the plan, or of postal management.
Don’t be deceived by the “larger picture,” as Donahoe describes it. Yes, the plan may have as its goal a stronger financial future for a postal service, but it won’t in any way resemble the one now in existence. It will be a privatized postal service, a postal service that will be mandated by its owners to make big profits; not a few paltry million dollars but billions. We’re talking Fortune 500.
Although the PMG may seem sincere in his video messages to the beleaguered troops down in the trenches, your financial wellbeing is not one of his priorities. His financial wellbeing, on the other hand, is.
The plan (the scheme) now being advocated by the PMG and the brass in Washington, DC, is the same one being implemented by anti-worker lawmakers in Congress and in various governorships around the country. The plan is relatively simple, and simple-minded. Their plan for growing the economy and creating jobs is to cut, cut, and then cut some more.
Patrick Donahoe’s plan is not only about cutting days of service, but it’s also about cutting full-time employees in favor of part-timers, it’s about cutting wages, cutting retirement benefits, cutting health care, cutting your right to collectively bargain, and cutting your union.
This is the “larger picture” that PMG Donahoe has in mind for you and me.
We must make sure that it’s a picture that never develops.
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From the Editor's Desk
Postal Service Announces Possible Closing of 252 Mail Processing Plants But Promises No One Will Notice
In its latest effort at imploding, the Postal Service announced on Thursday (September 15) that it will be "studying" 252 mail processing facilities around the country over the next three months with an eye towards closing and/or consolidating them in the not too distant future. There are currently 487 of these facilities. Because Postal Service officials in Washington aren't known to be "studious" and often take short-sighted short-cuts in attempting to find solutions to problems, the news was received with much concern.
There are six such facilities in North Carolina: two in Fayetteville, two in Kinston, one in Rocky Mount and one in Asheville.
Postal employees were treated to a standup talk and a video message from Postmaster General Pat Donahoe this week on why such a hair-brained move was necessary. In the standup talk the potential closings are referred to as "network changes," and (the one I particularly like) "network adjustments."
But to put everyone at ease, postal officials are quick to add that the future closings and layoffs will only have "some impact" on commercial mailers but that individual customers aren't likely to notice any change at all. They say that these changes will be "seamless."
For those who are familiar with the inner-workings of the Postal Service, you pretty much recognize this as a lie. A whopper. No one, I don't care how smart they are, can close hundreds of mail processing plants and post offices (approximately 3,700) and lay off several thousand employees, and it not be noticed.
The mathematical whizzes in Washington estimate the closing of these facilities (before "studying" them) will save them $3 billion. That's in addition to the money that will be saved by closing nearly 4,000 post offices and laying off 220,000 of its hardworking employees.
There's something else that you and I won't notice once this is seamlessly implemented: first-class mail will be delayed by an extra day. Mail that normally gets somewhere in a day will take two, and so on. Then if they succeed in duping Congress into believing that eliminating Saturday delivery is a great money-saving idea, then you can factor in another day of delay. But you won't notice. Remember, it'll be seamless.
Except if you happen to be one of the thousands that lose their jobs. No doubt you'll notice that.
In responding to Thursday's announcement, APWU President Cliff Guffey said, "Degrading service is not the answer to the Postal Service's problems. The Postal Service should be looking for ways to strengthen service and increase relevance in the age of digital communication."
Unfortunately, that would require innovative thinking on their part. And the geniuses in Washington can't spell innovative, much less practice it.
When the standup talks were given this week, craft employees were warned not to talk to the media lest they be disciplined for insubordination. You don't suppose they might have a differing opinion, do you? We wouldn't want that getting out, now would we?
At any rate, the standup talk ended on a cherry note: "Thank you for listening and for the great job you are doing every day."
(Now doesn't that make you feel all warm and fuzzy?)
(Photo source:msnbc.com)
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Rep. Darrell Issa: How I Spent My Summer Vacation
Rep. Darrell Issa: How I Spent My Summer Vacation
Well, we can see how Rep. Darrell Issa (R-Calif.) spent his summer vacation. He's been putting together a web site. And it's a doozy. It's called "Saving the Postal Service," but the actions he and his cronies in Washington are advocating would actually destroy it and the service it now provides to millions of Americans.
According to The Federal Insider, the web site was launched on Wednesday (August 31). The site, which is featured under the banner of the Committee on Oversight and Government Reform, is patently partisan, espousing many of the agenda items the GOP has been pushing since they took over the House back in January.
Unlike Fox News (sarcasm here), the site is not fair and balanced. With hearings coming up next week, the purpose of the site is to push Issa's efforts at hobbling the Postal Service, with the ultimate goal of eventually privatizing it.
The means by which Issa and the GOP would do this is HR 2309, which he falsely trumpets as upgrading "the Postal Service, building off what works and fixing what doesn't."
One of the things that isn't working, according to Issa, is collective bargaining for its craft employees. One of the "highlights" of his bill is this: "Constant Accountability: when the Postal Service fails to pay its bills for more than 30 days, an independent watchdog is empowered to cut costs much like a bankruptcy judge when a corporation can't pay its bills--this includes addressing expensive labor agreements...(emphasis added)."
Another of the bill's "highlights" is "Saving through Flexible Delivery: the Postal Reform Act (HR 2309) saves an estimated $3 billion a year by giving the Postal Service the option of eliminating Saturday delivery (emphasis added)."
There's plenty of skewed information to be had on the site including a non-fact that Issa continues to use even though he has been corrected about it numerous times. It comes under the misleading heading of: "No Taxpayer Bailouts: plan delivers an efficient, effective Postal Service without the thinly-veiled taxpayer bailout proposed by other bills (emphasis added)."
By thinly-veiled taxpayer bailouts, Issa is referring to HR 1351, a bill supported by the NALC and other postal unions. That bill, introduced by Rep. Stephen Lynch (D-Mass.), would allow the Postal Service to use billions of dollars in pension over-payments to meet its financial obligations--including the Congressional mandate to pre-fund the healthcare benefits of future retirees. That mandate -- which no other agency has to pay -- requires the USPS to fund a 75-year liability over a 10 year period and costs the Postal Service (not taxpayers) more than $5.5 billion a year.
But rather than consider that bill, Issa wants to pass his bill, a bill that would, among other things, empower a board to unilaterally cut wages, abolish benefits, and end protection against layoffs; create a commission to order $1 billion worth of post office closures in the first year, and $1 billion worth of facility closures in the second year; increase employees' costs for healthcare and life insurance; eliminate the right to bargain over these benefits; and eliminate Saturday service (and several thousand jobs).
All of the site's so-called "facts" and news items are slanted in favor of Issa's plan for the Postal Service and its employees.
To contact Rep. Issa's office, you may go here.
To contact your congressional representative and ask them to support a much better bill, HR 1351, go here.
And for the real facts on how to save the Postal Service, go to the NALC's web site.
(Image Source:FreeRepublic.com)
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