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Pass H.R. 22! To Save the Postal Service, Congress Must Fix the 2006 Postal ‘Reform’ Law William Burrus President Myke Reid Legislative & Political Director April 2009 “The most critical thing we face this year is… “We’re going to run out of money.” 

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pass h r 22

Pass H.R. 22!

To Save the Postal Service,

Congress Must Fix the 2006 Postal ‘Reform’ Law

William Burrus

President

Myke Reid

Legislative & Political Director

April 2009

slide2

“The most critical thing we face this year is…

“We’re going to run out of money.” 

Postmaster General John E. Potter March 25, 2009

Testimony before the House

Federal Workforce, Post Office,and District of Columbia Subcommittee

slide3

“The most important thing Congress can do

is to pass H.R. 22…

“Absent this relief, it is unlikely the Postal Service can survive in its present form.”

APWU President William Burrus

March 25, 2009

Testimony before the House

Federal Workforce, Post Office, andDistrict of Columbia Subcommittee

a dire situation
A Dire Situation

The USPS is threatened by a financial crisisthat jeopardizes our jobs and the nation’s

235-year-old postal system.

The collapse of the Postal Service would have a

devastating effect on postal workers and consumers, as well as on the nation's fragile economy.

a dire situation5
A Dire Situation

The USPS has already launched an aggressive

program to:

  • Consolidate the postal network;
  • Close thousands of post offices;
  • Cut work hours;
  • Outsource mail processing, transportation, maintenance, and retail operations, and,
  • Slash service to the American people.
threats to our livelihood
Threats to Our Livelihood

The postal crisis is caused by three major forces:

1) Declining mail volume and revenue amid a severe recession;

threats to our livelihood7
Threats to Our Livelihood

2) A provision of the postal "reform" law that is costing the USPS more than $5 billion each year, from 2008 to 2016;

threats to our livelihood8
Threats to Our Livelihood

3) USPS business practices that cater to the mailing industry at the expense of workersand customers.

declining volume and revenue
Declining Volume and Revenue

In Fiscal Year 2008, mail volume declined by

9 billion pieces – the largest one-year drop

in history.

declining volume and revenue10
Declining Volume and Revenue

And the USPS suffered a net loss of $2.8 billion – despite cutting costs by $2 billion.

declining volume and revenue11
Declining Volume and Revenue

By the end of Fiscal Year 2009:

  • Volume is expected to have declined by 30 billion pieces from 2007 levels;
  • Revenue is projected to have dropped by$12 billion.
declining volume and revenue12
Declining Volume and Revenue

Despite facility consolidations, drastic cuts in work hours, tour compression, a hiring freeze,

and early retirement offers,

“Without a change, we’re

going to exhaust our

cash resources…” Postmaster General Potter

March 25, 2009

legacy of postal reform
Legacy of Postal ‘Reform’

The 2006 Postal Accountability and

Enhancement Act strangles USPS finances by:

  • Limiting postal rate hikes to the rate of inflation. (USPS expenses – such as fuel andhealthcare often exceed inflation.)

And…

legacy of postal reform14
Legacy of Postal ‘Reform’
  • Requiring the USPS to spend more than $5 billion per year for 10 years to “pre-fund” retiree healthcare benefits. (No other federal agency is subject to this requirement.)

The pre-funding requirement is pushing the

USPS toward insolvency, and jeopardizing

our livelihoods.

pass h r 2215
Pass H.R. 22

H.R. 22, a bill pending

in the U.S. House of

Representatives, would

provide relief from this

crushing burden.

pass h r 2216
Pass H.R. 22
  • H.R. 22 would allow the USPS to pay for healthcare benefits for current retirees from its Retiree Health Benefit Fund instead of its operating budget.
  • This change would save the Postal Service an average of $3.5 billion per year over the next eight years.
pass h r 2217
Pass H.R. 22

H.R. 22 won’t change

retirees’ benefits.

It won’t place a burden

on taxpayers,

because it’s not a bailout.

pass h r 2218
Pass H.R. 22

H.R. 22 was introduced in January 2009 by

Rep. John McHugh (R-NY) and Rep. Danny

Davis (D-IL).

More than half of the members of the House of

Representatives have signed on as co-sponsors.

pass h r 2219
Pass H.R. 22

H.R. 22 is strongly supported by:

  • All postal unions andmanagement associations
  • The Postmaster General
  • The Board of Governorsof the USPS
  • The Postal Regulatory Commission
  • The mailing industry
pass h r 2220
Pass H.R. 22

To protect our jobs and preserve the USPS, APWU members must work to ensure thatH.R. 22 becomes law.

  • Check the APWU Web site, www.apwu.org,to find a list of co-sponsors.
  • Where representatives haven’t signed on, contact them and ask them to become co-sponsors.
  • If they have, thank them.
pass h r 2221
Pass H.R. 22

A similar bill is expected to be introduced

in the Senate soon.

As soon as this happens, we must be

prepared to act:

We must urge our senators to support the

legislation.

pass h r 2222
Pass H.R. 22

“This is not business as usual.

“The future of the Postal Service and the future of

your job depend on the passage of this bill.

“Contact your representatives today.”

William BurrusAPWU President