National Association of Postal Supervisors
NAPS Legislative & Regulatory Update - March 25, 2009
 
USPS to Face Tough Questions from Congress 
 
The latest take on the financial health of the Postal Service will occur on Wednesday in Washington, as the House postal oversight subcommittee hears from the Postmaster General, the USPS Board of Governors and other witnesses, including NAPS, on what to do, as the nationwide economic downturn, coupled with technological trends, continues to generate declining mail volumes and revenues. 

Postmaster General Jack Potter and Board of Governors Chairman Carolyn Lewis Gallagher likely will face tough questioning as the Postal Service heads towards its third multi-billion dollar deficit in three years, and executive compensation and relocation policies raise concerns.  

The  hearing entitled, “Restoring the Financial Stability of the U.S. Postal Service: What Needs to be Done?” is the first to be convened by the postal subcommittee's new chairman, Rep. Stephen Lynch (D-MA).

Witness testimony, the Chairman’s opening statement and the live broadcast of the hearing, starting at 10 am EDST, can be found on the Subcommittee’s website.

“With the Postal Service facing budget shortfalls the Subcommittee will consider a number of options to restore financial stability, and examine ways for the Postal Service to continue to operate without cutting services,” Lynch said in a statement.

“Given the ongoing financial losses at the Postal Service, there has been a considerable backlash among postal customers and current and former employees regarding the Postal executives’ compensation packages, including that of Postmaster General Potter. Members of Congress have been hearing from our constituents and we intend to look into this matter at the hearing and ascertain how those pay levels were determined and how to bring them in line with the current reality,” added Lynch.

Wednesday's hearing could provide answers on:

-- How soon Congress will move ahead to provide financial relief to the Postal Service and pass HR 22, championed by Rep. John McHugh (R-NY) and Rep. Danny Davis (D-IL).  The legislation would revise the out-of-whack payment expectations contained in the postal act of 2006 that straight-jacket the Postal Service with extraordinarily large retirement health benefit prefunding requirements it cannot afford to pay, whether in good or bad times;

-- What will likely come next in USPS attempts to cut costs, after the Postal Service's announcement Friday of the first big nationwide wave of facility consolidations and job cuts, including the elimination of 1,400 management and supervisory positions and the offering of early retirement to 150,000 employees; and

-- Why the Board of Governors decided to implement controversial compensation packages for its top executives and costly housing purchase relocation policies that caused USPS to lose an average of more than $58,000 on the 500-plus homes its relocation program bought and sold in 2008.

NAPS President Ted Keating, along with the presidents of the other six postal employee organizations and other witnesses, will testify at Wednesday's hearing.
 
To read Mr. Keating's testimony, click here after 10 am EDST on Wednesday.



NAPS Leaders Prepare to Take the Hill

Over 600 NAPS leaders will converge on Washington this weekend for the NAPS Legislative Conference and Training Seminar, followed by meetings on Capitol Hill on Monday and Tuesday with lawmakers to press NAPS' legislative agenda.

"There has never been a more critical time for postal supervisors and managers than now," said NAPS Executive Vice President Louis Atkins.  "Our mission is to convince Congress of the need to put the Postal Service back on track." 

NAPS members will promote the passage of HR 22, financial relief legislation for the Postal Service, along with several other measures advancing Postal Service and NAPS member interests.  The NAPS Legislative Agenda is covered in the NAPS Legislative Issues Brief.  

NAPS leaders at the legislative conference will hear from : 

Rep. Edolphus "Ed" Towns (D-NY), chairman of the House Oversight and Government Reform Committee;  

Rep. Stephen Lynch, chairman of the Federal Workforce subcommittee that oversees the Postal Service and government operations;

Postmaster General Jack Potter; and

Political strategist Michael Dunn.
 
 
 
Bruce Moyer
NAPS Legislative Counsel