Monday, March 21, 2011

Compensation Comparison Chart

Thanks to my readers I was able to create a chart comparing Postal Service compensation to compensation at FedEx Express and United Parcel Service.  As all readers know FedEx Express is non-union UPS is organized by the Teamsters and the Postal Service is organized by one of four craft unions.  The Postal Service compensation figures are from 2009 and were provided by the Postal Service to reporters prior to beginning of negotiations with APWU and NRLC.







The comparison's are a bit disingenuous for the APWU includes a number of maintenance crafts that are higher paid then the most employees that sort mail.  Therefore a fairer comparison would compare the average compensation of employees that sort mail or work at a retail counter with the wages paid UPS and FedEx inside workers.   

The comparisons illustrates why the compensation levels negotiated with the APWU for new employees and non-career positions have much lower wages.   It is clear that the new wage structure should bring APWU members that sort mail or work a retail counter to an average compensation level that will fall between what FedEx and UPS now pay.   If one assumes that UPS and FedEx employees see increases in compensation in the next few years, either due to contract provisions or increases reflecting improving business at both firms, then it is possible that by the end of the contract, APWU average compensation will likely be closer to what FedEx will pay its employees than what UPS will.

In many ways, Mailhandler union members face a worse comparison that APWU members.   Few of their employees are in maintenance and other positions that generate higher salaries.   Therefore, their average salary is likely further above market rates than APWU members.   Therefore, the contract that they will negotiate next fall will likely have all of the changes in work rules and pay schedules that the APWU just agreed to.  They may find it more difficult to negotiate any protections for current employees that the APWU did.

For members of the NALC and NRLC unions the comparison is a bit more complicated.   Their current compensation falls between UPS and FedEx compensation levels.   However, Postal Service is seeing its volumes decline while UPS and FedEx volumes are growing.  Also determining what is a fair wage for the delivery portion of the service depends on an estimate of the value of the delivery service alone and the division of revenue for all activities other than delivery and delivery.   Only after that is conducted would it be clear whether the compensation paid to Postal Service carriers is at, above, or below market rates. 

The difficulty of doing a comparison with compensation of the NRLC members most likely explained why the NRLC was not willing to continue to negotiate.  They most likely face a lower risk of an adverse ruling in arbitration than APWU members as the economic case of the Postal Service is much more complicated in that negotiation.

Comments and suggested additions to this table are requested.   They will be added to the table and posted when received.

12 comments:

Anonymous said...

History of previous contracts that were sent to arbitration

1978 -1981 James Healy rules in favor of unions on COLAs (no cap) and partially in favor of management on no lay-off clause, which is changed prospectively to cover only employees with a minimum of six years of service. Total increases of 31%

1984-1987 Clark Kerr rules in favor of unions with penalty overtime over 10hrs, continuation of COLA. Total increases of 13%

1990 – 1994 Richard Mittenthal rules in favor of Transitional Employees and Arbitrator Valtin decided the issue of health benefits which resulted in a 4%
increase in employees’ share of healthcare cost. Total increases of 12%

1994 – 1998 Jack Clarke imposed a four-year agreement with COLA Roll-in. Total increases of 6.25%

2000 – 2003 Stephen Goldberg rules in favor of a 3 yr agreement. Total increases of 6.49%

http://www.apwu.org/news/burrus/2007/update02-2007-012607-chart.pdf

Anonymous said...

Let's see a comparison chart with the management in the USP, Fedex and the USPS, Average salary, number of managers in each work office, ect.bystr

Anonymous said...

What about Management? They seem to make a lot more plus the bonuses. I saw one person received a 25% bonus for coming work. Didn't mater how they did? How does management pay compare between the three?

Anonymous said...

Allen, how about tidying up that second sentence. I think you mean "know" and "is" instead of "no" and "in". BTW, USPS volume may be declining, but deliveries are being added to most city routes as some routes are eliminated

Anonymous said...

those figures were when the Postal Service was thriving. We are in a different day and age. What makes any of you think for one minute that an arbitrator is going to give a better wage increase with the financial situation the Postal Service is in. Everyone should be glad they are getting at least some increase. Look around you people,look at the economy and be glad there is still a Postal Service and we still have a job. Quit being so greedy!!!!

Anonymous said...

I know of no NRLCA craft members(rural carriers) that are allowed to work over 2080 hours in a fiscal year. And Fed Ex and UPS drop their packages off daily at many rural post offices so USPS rural carriers can complete the deliveries to the final customer. UPS and Fed Ex have USPS carrying the final mile as part of their business model. Their business plans don't work without a healthy and functioning USPS.

Anonymous said...

My only question is? Did these number include the 5.8 billion roll in for prefunding of health care. Those fees should not be included in the numbers

Anonymous said...

get rid of 50% of the under achieving managers and maybe we can try to compete with the others.

Anonymous said...

letter carriers should lead the way in compensation. there are jobs similar to what ups does in the postal service. these truck routes are much sought after when they open up because they are less taxing than lugging mail on your back day in and day out.

Anonymous said...

The compensation chart does not include stock options at UPS. IN addition, it is difficult to say UPS and Fedex are comparable to USPS when they do not deliver to every home in the nation; They are not bound by Federal Regulations.

Anonymous said...

How about providing the USPS numbers for full time. We all know the part-time employees make much less.

Anonymous said...

We do NOT get bonuses! Obviously you pea brained craft employees will never get that.