Contract Update and the Evolution to Privatization
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NO CONTRACT ….. NO SURPRISE
Neither I nor most other Union Officials across the country were surprised that the parties could not come to terms on a new contract. The APWU and USPS are diametrically opposed when it comes to the future of the Postal Service. While the APWU would like to improve the service to the American public and continue maintaining middle class living wage jobs for its future members, the USPS is working towards degrading service and evolving Postal positions into low wage unskilled jobs that can easily be turned over to private industry.
BASIC PROPOSALS AS OF CONTRACT DEADLINE
While it’s been reported that the concessions we made during our last agreement resulted in a total combined savings to the USPS of over 12 billion dollars, one would think that our modest contract proposals this time would have stood a chance. We basically were looking for a modest wage contract increase in each of the three years, in addition to the continuation of the COLA distributions utilizing the same formula. Additionally, we asked for an increase in the USPS share of the cost of our health benefits, an immediate no lay-off protection for all employees working under this agreement and an increase in the work clothes and uniform allowances. We also requested the continuation of the 50 mile limit on excessing ( APWU recently negotiated a MOU to maintain the 50 mile limit) , an increase in PSE conversions to career, and a change in the pay scale so that employees hired after the start of the last agreement can reach the step O level.
At the end of negotiations, it’s been reported that the best the USPS would offer economically was a 1.1 % across the board raise for three years with no COLA during the first year. Additionally, they proposed to change the future COLA increases into lump sum payments instead of increases in base salary. They also demanded an increase in our health plan contributions in addition to a lower tier wage scale for new career hires. This lower tier wage scale was designed so that over a lifetime the new hires would never reach the salary level of our current employees. They also demanded an increase in the amount of non-career employees, as well as increasing the amount of years needed to obtain no-layoff protection. Acceptance of this agreement would have perpetuated “the race to the bottom” of middle class living wage Postal positions for future employees.
While it’s been reported that there were several tentative craft agreements reached, at this time, it is not known whether or not the parties will agree to automatically include them in the arbitrated agreement.
WHAT’S NEXT
In accordance with the 2006 Postal Accountability and Enhancement Act, the parties attempted but were unsuccessful in the mediation stage. The arbitration portion is scheduled to begin on February 17, 2016. However, even while going through the arbitration phase, the parties, if they choose to do so, are still able to negotiate in an effort to come to terms on a new agreement. The 2010 Contract will remain in force until a new contract is reached.
THE USPS EVOLUTION TO PRIVATIZATION
USPS EXTERNAL ACTIVITY TO PRIVATIZATION
Let’s take a closer look how the USPS is evolving the entire Postal network into a “turnkey” business to be handed to private industry. The evolution to privatization began many years ago when the transportation and maintenance functions were partially turned over to private contractors. Then the evolution to privatization in mail processing started with the closing of the AMC’s and AMF’s and the subsequent hand off to private industry by utilizing what they call terminal handling contracts. Pitney Bowes and other private mailing houses are then utilized by private corporations to presort and process mail in an effort to take advantage of the substantial discounts offered by the USPS. As a matter of fact, Pitney Bowes has the largest pre-sort network in the country and would stand to make significant profits if the USPS was privatized. Additionally, it’s now being reported that the USPS plans on soliciting private companies in an effort to determine the interest these companies have in handling various mail processing operations in many of our plants.
The external evolution to privatization in the retail area began many years ago with the use of Contract Postal Units and Private Village Post Offices. Today, the USPS has continued to expand its evolution to privatization in the retail services by entering into contracts with Staples, Wal-Mart and other approved shipper stores.
USPS INTERNAL ACTIVITY TO PRIVATIZATION
While the external evolution continues, it’s been an objective of the USPS to make it as “turnkey” as possible to transition into private industry by internally evolving as well. For example, on January 5, 2015, the USPS began by slowing their service standards up just enough to be able to consolidate and close as many plants as they could, in order to begin reducing their plant network as they evolve into transition to private industry. Additionally, they are de-skilling most of the Clerical positions in an effort to make it as simple and accommodating as possible during the turnover. The new automated Parcel equipment in mail processing, along with the scheme eliminations and PASS equipment in the retail offices, is part of their plan to de-skill the work (At the time of this article the parties have been able to resolve some of the issues concerning scheme elimination). Smaller unskilled operations will make it much easier to eventually reach their goal of a simple turnover to private industry, which would leave the USPS with only the last function of the business, which is to simply to “deliver the last mile”. At that point, there is no doubt in my mind that the USPS would then look for private delivery companies to handle the function of “delivering the last mile”.
ONLY OUR UNION CAN STOP THE EVOLUTION TO PRIVATIZATION
First and foremost, we must remain vigilant against all efforts to privatize the USPS. Our Union is the key to the preservation of middle class living wage USPS jobs. We must stand behind our Union when needed to participate in informational Pickets and Rally’s. We must respond to the call of our Union to get the message out to our politicians, the media and through a “grassroots” movement to the American Public. Collectively, only our Union will be able to fight back against attacks by the right wing of Congress and the privateers of the Wall Street Community, who seek to turn the people’s Postal Service over to profit seeking corporate entities.
Let us get out from under the apathetic cloud and stand with our Union to stop the “evolution to privatization”. The discussion I want to have in years to come, is how we through our Union, collectively, not only saved a treasured public institution for the American people, but also preserved thousands of middle class living wage jobs
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