Pass H.R. 22

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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
2

• The most critical thing we face this year is
• Were 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
3

• 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
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A Dire Situation

• The USPS is threatened by a financial crisisthat
  jeopardizes our jobs and the nations
• 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.
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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.
•  

6
Threats to Our Livelihood

• The postal crisis is caused by three major
  forces
• 1) Declining mail volume and revenue amid a
  severe recession

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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

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Threats to Our Livelihood

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

9
Declining Volume and Revenue
In Fiscal Year 2008, mail volume declined by 9
billion pieces the largest one-year drop in
history.
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Declining Volume and Revenue

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

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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 by12
  billion.

12
Declining Volume and Revenue

• Despite facility consolidations, drastic cuts in
  work hours, tour compression, a hiring freeze,
• and early retirement offers,
•  
• Without a change, were
• going to exhaust our
• cash resources Postmaster General Potter
• March 25, 2009

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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 and
  healthcare often exceed inflation.)
• And

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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.

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Pass H.R. 22

• H.R. 22, a bill pending
• in the U.S. House of
• Representatives, would
• provide relief from this
• crushing burden.

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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.

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Pass H.R. 22

• H.R. 22 wont change
• retirees benefits.
•  
• It wont place a burden
• on taxpayers,
• because its not a bailout.

18
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.

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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

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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 havent signed on,
  contact them and ask them to become
  co-sponsors.
• If they have, thank them.

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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.

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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 Burrus APWU President