President's Viewpoint

A Year of Challenges, Opportunities

(This article was first published in the March/April 2005 issue of The American Postal Worker magazine.)

We began 2005 by establishing our goals and expectations as a union, and hoping that we have the determination and the good fortune to realize our objectives. We face daunting challenges this year, both contractual and legislative.

The most significant challenge confronting American workers today is what some politicians bemoan as the “crisis” in Social Security. The commercial airwaves are being saturated with claims that unless specific and radical changes are enacted, the Social Security system will be irreparable and future beneficiaries will be left to fend for themselves. The truth is that while Social Security is in need of adjustment, it is not in crisis: Presently and far into the future, the fund’s reserves will exceed payments.

The APWU National Executive Board recently adopted a resolution on Social Security, favoring only those changes that would “strengthen the retirement safety net for American citizens.”We oppose, however, privatization efforts that would undermine the guarantees of the current system. (See Page 33.)

The present debate often overlooks the fact that the changes proposed by President Bush could negatively affect all Social Security recipients – the benefits of current recipients could be jeopardized, and the benefits of future recipients would be cut, regardless of whether they choose private accounts.

Before Congress embraces proposals involving risky investment schemes converting guaranteed benefits to Wall Street gambits, the American public demands a full accounting of total contributions, total benefits, and a plan to repay the money that has been borrowed from the Social Security trust fund.

Postal Reform: The Struggle Continues

Postal workers also face the lingering prospect of postal reform. In January, a House postal reform measure was one of the first bills proposed in the 109th Congress and it is expected that the Senate as well will renew its efforts to enact postal legislation. (See Page 32.) Congress is spurred by influential forces who continually push reform at the top of their agenda.

The rationale for reform, though widely debated, generally is misunderstood by the average employee.As a result,much of our membership views the entire process as alien to their individual interests.While there is an appreciation that the decline in mail volume in recent years has likewise led to a decrease in the size of the postal workforce, few employees connect the dots between postal reform and their employment next year and into the future.

The union has attempted to frame this debate in personal terms so that individual employees can relate to the possible impact. Some employees “get it,” while many others believe that, if reform is instituted, it will still be business as usual, because that is how it has always been.

Inevitable, Dramatic Change

If postal reform as presently being considered is signed into law, the working life of postal employees will change dramatically, and I do not mean 20 years from now. The possibilities of change will include the communities where postal plants will be located, the tour and timing of work, the activities involved in the work performed, and, if the “reformers” have their way, changes to the rate of pay for work performed.

Changes are, of course, inevitable in our rapidly evolving world. Our industry actually has been protected against the wrenching changes that competition has inflicted upon virtually every major industry in our country. Unfortunately, these union-won protections too often have led to complacency among our members and a belief that things will always be as they have been.

Well, brothers and sisters, fasten your seatbelts, because change is on the way. The passage of postal reform will put in place processes and pressures that will ensure change immediately, constantly, and far into the future.

We are protected contractually by no-lay-off provisions, so there is no danger that in the short run current employees will suffer the fate of millions of other displaced American workers. But while contract-modification language in the proposals made by the President’s Commission on the U.S. Postal Service have not been included in proposed legislation, the White House continues to insist that postal reform include some adjustments to the collective bargaining process.

I am equally concerned about the effect of the proposed Postal Regulatory Board and the arbitrary cap on future rates that are included in the pending bills. These easily could have a strong negative impact on employee compensation.

Mailers’ Primary Objective

Despite the lofty public pronouncements as to the reasons for postal reform, the primary objective of those hoping to exert their influence is to control rate increases for the major mailers. In that they provide over 70 percent of total mail volume, without their use of mail, obviously, the postal system and the relatively high number of postal jobs would collapse. We expect that the mailers will demand “controlled” postal costs. No matter how flowery the rhetoric, the underlying driving force of postal reform is cheap postage.

The current legislation in the House of Representatives and a similar measure expected in the Senate have similar provisions for cost control. The central provision in the legislation is the establishment of a Postal Regulatory Board with the authority to establish regulations governing the Postal Service.

The purpose of such regulations will be to maximize incentives; to stabilize rates; to maintain high-quality service; to provide pricing flexibility; to assure adequate revenues; and to reduce the administrative burden of the ratemaking process. Under the proposed legislation, postage rates would be controlled through “price caps” that would limit reimbursement for the increases in costs, including wage costs. This limitation on the amount that rates can be increased will negatively influence wages, and the number of employees and facilities. Clearly this would have adverse effect on all APWU-represented employees.

The fight over reform will continue, with the APWU Legislative Department advancing our agenda: To serve the American public and maintain the union’s collective bargaining rights. We will be calling upon our local and state organizations to weigh in as well: To raise issues with their legislators and seek their support.

Individual members can likewise communicate with their representatives and contribute to COPA. The 2004 COPA Campaign was our strongest year yet and we will need even better years to keep up this fight, a fight that clearly is worth your involvement. (See Pages 7-17.)

Our Next Contract

The 2005 contract negotiations will be equally challenging. As global competition places downward pressure on employee wages, our demands for improved conditions and higher wages will be met with stiff resistance. As the only postal union scheduled for contract negotiations this year, APWU will be targeted to create a “model” for bargaining with other postal unions and management groups as their agreements expire.

We approach these negotiations with determination. Because the contract will directly affect the lives of hundreds of thousands of postal employees, I believe it is crucial to include rank-and-file APWU members in the process. I have asked each of the union’s 20 resident officers to name two employees — who do not serve as stewards or officers — to be asked to come to Washington to observe and to engage in the bargaining process.

Those selected will observe the bargaining process and will be provided an opportunity to share their experiences as postal employees. The national union will assume the full cost, including travel, lodging and lost time from work. Postal reform, COPA, and contract negotiations will dominate our agenda, and our success or failure will determine the future value of postal employment. If you have an interest in shaping your future as a postal employee, I urge you: Roll up your sleeves, we have serious work ahead!