2010 Comprehensive Statement on Postal Operations - USPS.com

Chapter 5: Workforce
performance requirements and individual results are recorded in the
Performance Evaluation System.
Pursuant to §39 U.S.C. 3686(d), the Postal Service hereby reports
that during calendar year 2009 the following persons received
compensation in the amounts listed in excess of the rate for level 1
of the Executive Schedule under section 5312 of Title 5:
Name Amount in Excess of Level 1 of the
Executive Schedule
Nicholas F. Barranca $9,150
Robert F. Bernstock $73,300
Joseph Corbett $73,300
Michael J. Daley $29,665
Patrick R. Donahoe $57,671
Steven J. Forte $30,946
Mary Ann Gibbons $23,300
Timothy C. Healy $13,939
Jerry D. Lane $5,100
John E. Potter $69,533
Anthony J. Vegliante $34,923
David C. Williams $8,568
George W. Wright $16,866
Benefits
Postal career employees enjoy excellent benefits, including annual
and sick leave that can be accumulated, the opportunity to donate
leave, basic life insurance paid for by the Postal Service with
additional options at the employee’s cost, pretax health benefits with
most of the cost paid by the Postal Service, pretax Flexible Spending
Accounts for out-of-pocket dependent and health care expenses, the
option to enroll in pretax dental and vision insurance, the opportunity
to apply for long term-care insurance, and coverage under the
Federal Employees Retirement System (FERS) or Civil Service
Retirement System (CSRS) plans, which provide pension benefits
and, for FERS employees, include Postal Service contributions to
the Thrift Savings Plan. The <strong>2010</strong> Annual Report contains employer
costs and retirement program participation rates.
During 2007, agreements were achieved through the collective
bargaining process and consultation with the management
associations to reduce the Postal Service’s share of contributions to
the cost of employee health benefits premiums. Annual 1 percent
reductions for the Federal Employees Health Benefits Program
(FEHB) plan years 2008 through 2011 were agreed to for employees
represented by the American Postal Workers Union, the National
Postal Mail Handlers Union, and for EAS employees. Annual
1 percent reductions for FEHB plan years 2009 through 2012 were
agreed to for employees represented by the National Association of
Letter Carriers, the National Rural Letter Carriers’ Association, and
the Fraternal Order of Police.
Injury Compensation
The Postal Service continues to work closely with the Office
of Workers’ Compensation Programs (OWCP) to place injured
employees who cannot be accommodated within the Postal
Service into private sector employment. In <strong>2010</strong>, these efforts
resulted in private sector placements, retirements, or reductions
in compensation payments for 319 former employees, which
reduced compensation costs by more than $8 million. The Postal
Service saw an increase of 2 percent in Workers’ Compensation
chargeback expenses from the OWCP this year, primarily because
of medical cost inflation and increases to the number of claimants
receiving wage loss benefits. The increase occurred despite
continued decreases in illness and injuries. The Postal Service filed
47,897 new claims in 2009 and 44,805 in <strong>2010</strong>, for a 6.5 percent
decrease. The <strong>2010</strong> cash payout for compensation chargeback
expenses totaled over $1.11 billion.
To help reduce Workers’ Compensation medical costs, the Postal
Service expanded the First Script Pharmacy Card Program, which
discounts prescription prices for the Postal Service and helps
employees avoid paying out-of-pocket expenses and waiting for
reimbursement. In <strong>2010</strong>, durable medical equipment and imaging
costs were added to the system, resulting in a savings in excess
of $10.5 million. Ongoing efforts with the program have attained
$40 million in cumulative savings. Monetary gain from pursuit of
third-party claims and overpayments are credited to the Postal
Service by OWCP.
The National Reassessment Process is a key initiative for
reviewing the status of employees in rehabilitation and limited-duty
assignments at the end of each year. It ensures that every evaluated
employee is placed in an appropriate and necessary work position.
Currently, all sites are assessing limited duty and rehabilitation
assignments to eliminate “make-work” assignments. The process is
90 percent complete. Through June <strong>2010</strong>, the number of employees
in rehabilitation and limited duty assignments had been reduced
from 28,147 to 24,224, saving $255 million. The savings represent
costs avoided by employees’ retirement, resignation, or return to full
duty. At the end of September, the Postal Service had 22,678 limited
duty and rehabilitation employees nationwide.
Labor Relations
Collective Bargaining
The Postal Service has nine collective bargaining agreements with
seven unions covering approximately 517,000 career employees
and 67,000 non-career employees. Negotiations with unions cover
wages, hours, and working conditions. The most recent agreement
was established by the issuance of an interest arbitration award in
<strong>2010</strong> <strong>Comprehensive</strong> <strong>Statement</strong> on Postal Operations | 45