In a recent article in Sioux City Journal on the moving of mail processing from Sioux City, IA to Sioux Falls, SD, Jim Price, Sioux City Postal Workers Union Local 186 officer contends that, "Employees who would drive from Sioux City to Sioux Falls and back would include that drive-time as part of their work day." The map below shows the shortest route from Google maps between Sioux City, IA and Sioux Falls. The distance is 87.9 miles with most of the miles on Interstate Highway 29.
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If Mr. Price is correct, the Postal Service will be paying employees that commute to Sioux Falls for 3 hours of driving time daily. This makes little sense for the Postal Service or the employee. [I urge readers of this blog to add a comment referencing Postal or employee contract documents that describe the basis for Mr. Price's comments.]
If true, the Postal Service would be well served to offer employees in Sioux City and Sioux Falls early retirement. This saves the Postal Service money in two ways. First, early retirement would save the Postal Service $506 per week associated with pay for commuting costs. Second, if a new employee is needed to fill a position that the newly retired employee would take, his/her compensation would be lower than the salary of the retired employee. If the compensation difference between an employee at the top of the pay is $10 per hour, the Postal Service would save $400 per week to switch by replacing a retiree with a new hire.
In total, offering early retirement would save the Postal Service around $900 per week. In other words, the Postal Service would break even by offering a $15,000 incentive if the employee would retire 17 weeks (3 months) earlier than they might otherwise. The savings would be larger if no new employee needs to be employed.
This simple calculation suggests that any time a consolidation of plants would involve paying for any commuting time between two locations, early retirement incentives of $15,000 to employees at the consolidated plant community would be well worth it. Given how quickly the Postal Service covers the cost of the retirement incentive, the Postal Service might even find it worthwhile to pay the incentives in one payment unless the employee prefers two payments for tax purposes.
The savings from early retirement identified here raises two more interesting questions. Could offering early retirement incentives in selected cities to APWU members and either not replacing these employees, or replacing them with lower-paid new hires reduce the Postal Service's expenses in fiscal year 2012? Does the Postal Service have the cash needed to offer these incentives?
Tuesday, July 5, 2011
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21 comments:
I don't know where Price came up with the idea that employees who transfer would get to commute on the clock. A postal employee whose commute increases by 50 miles or more could be entitled to relocation assistance, but that's it. Postal employees don't commute on the clock.
And worrying about retirement incentives puts the cart before the horse, unless you assume that there are large numbers of postal workers standing around doing nothing. You can't get rid of the workers until you get rid of the work. In this case the choice you present assumes that the employees are still needed- else why would the question of commuting even come up?
Your article once again demonstrates that you have no idea about how the USPS works. You continually offer opinions that make absolutley no sense and demonstrate a total lack of knowledge about postal issues. Here is a suggestion, before you write a blog find out what you are talking about first, then write your blog!
Who is going to give up a $50,000+
job for a lousy 15 grand? They are all nuts.
You wouldn't be replacing workers who don't do anything (although there are plenty of them), you would be replacing them with workers earning half their salary.
You wouldn't be replacing workers who don't do anything (although there are plenty of them), you would be replacing them with new hires who will earn half their salary.
Offering early outs and incentives as a means of replacing high paid senior workers with lower paid entry level workers is probably not as productive as advertised.
The incentives might entice those ready to retire anyway but previous efforts have not been especially well subscribed - the penalties for leaving early can be substantial and given the current economy those who continue to need to work can't do much better outside the Postal Service.
Besides the cash layouts of incentives there are substantial costs in hiring and training new employees so over the long term there may be benefit but as a means of relieving short term cash flow problems this isn't very effective. Add to that the fact that now people are starting to reconsider retirement based on the expectation of incentives and the entire proposition seems questionable.
Rather than craft incentives effort would be better spent implementing the provisions of the new APWU contract and reconfiguring the workforce based on those changes and opportunities. There are still some opportunities to trim and reduce management structures. The cuts and consolidations at District and Area facilities haven't been especially well thought out. The organizations haven't truly been rationalized. There may be some value in offering incentives there although RIF procedures don't require incentives to work.
Brian it is unlikely that many of the employees will volunteer to be transferred. And, since the newly ratified contract prohibits excessing of employees more than 50 miles Mr. Price must be assuming that the clerks will continue to be domiciled in Sioux City and detailed to Sioux Falls. Since Sioux Falls is outside the local commuting area employees would be entitled to drive time. However, I would expect management to be in disagreement with this position and expect that it will only be resolved through the grievance arbitration procedure.
Mr. Jim Price doesn't have a clue as to what he is talking about. Like Brian said over 50 miles they provide moving assistance if you want to drive that far you do it at your own expens and definitely not on the clock. If you don't like the drive either retire or resign point blank. But hey at least in this economy you have a job be happy for that.
I commute 2 1/2 hours to my postal job. I was riffed two years ago. Forced to change crafts, lost all seniority, the po was hoping to get employees to quit. Majority of my fellow co-workers did just that. The po only protects EAS (non qualified incompetant assho--- worst part is our unions are letting them do this to us!
Years and years ago I was sent to a new facility to work, and was paid for mileage, but not as part of the work day. That's redonkulous .
If it were the case where these employees still had their jobs in the first duty station and were told to report to the new station Mr. Price would be correct. However they will no longer have their original positions, they now have new jobs and they report to Sioux Falls their new official duty station.
Travel time is only paid when an employee is instructed to report to a station other than their official duty station outside of the local commuting area (50 miles).
I think you forgot all the out of schedule premium and 55 cents a mile you are paid. Daytona closed and have Level 10 ET's now in custodian jobs for life getting level ten pay. Incentives are the answer.
1. Are they entitled to commute on the clock? I doubt it. If so, 1-1/2 hour drive I get to Sioux Falls 1/2 hour later I am entitled to a break. Work for 1 3/4 hours time for lunch. Work another 1 3/4 hours time for last break and time to drive home if weather is good. I have worked 3 1/2 hours, driven 180 miles and created how many hazards driving?
2. Leave plant open in Sioux City but only for one tour, 12 am to 8 am. Process all Tour 3 mail in Sioux Falls, ship back zones and SCF mail to be finalized in Sioux City. Move all personnel to Tour I and excess those not needed. As people retire, quit, transfer, etc. consolidate work into one section such as all Automation letters processed on Tour I but all Flats finalized in Sioux Falls.
3. Offer incentives to hopefully eliminate having to force anyone to transfer to Sioux Falls or to another nearby office.
4. Hire new employees at huge discount on wages after enough people have left.
Mr Price is probably dreaming impossible dreams if he thinks the post office will pay commute time. But I wouldn't put it past an apwu officer to not understand the contract and to have the arrogance to think he can pull off the impossible. I've never read in the contract, JCAM, JCIM or heard of any kind of settlement that would force the post office to pay for a 3 hour daily commute for employees excessed.
As an Union Officer for many years, I have to agree with my fellow posters and believe that Mr. Price is incorrect. Perhaps employees will be excessed from one office to the other, but their drive time will not be part of their tour of duty. Unless they achieved some sort of mind-boggling agreement with management, these employees will not be paid travel time.
HOWEVER: They may be entitled to travel time IF the employees have not been excessed and are detailed to the gaining office.
early outs VERA's means you can not replace with new hires
I think a 2 1/2 hour commute qualifies you for the incompetent one not an EAS employee. The majority of EAS employees have moved through the ranks. There needs to be wholesale changes made not only at the plants but all the way to the TOP. There are plenty of USPS personnel that NEVER touch a piece of mail along and through the process of delivering the mail. The Postal Service has become a very top heavy organization. The problem is the top heavy employees are the ones making all of the decisions!
We are fixing to get consolidated at my plant. The gaining plant is 58 miles away. USPS has stated 50+- clerks will be excessed, but the gaining plant has 30 vacant positions. If there are not positions (and there are not) within the 50 mile radius for clerks to be excessed to, rumor is that employees would do the commute on the clock and be paid milage until positions are found for them to be excessed to. I'll let you know if the rumor is true this fall.
I have been told by very reliable sources that in the Kansas City area and the Little Rock, AK area, employees were paid time and milage to drive when there facility was closed. To say it never happens is wrong. To say it will happen in this case may be wrong also.
Jim Price also does not mention Management has been holding carrier jobs in Sioux City for excess clerks.
I believe at least 15 carriers are needed in Sioux City.
In my facility there are about 10 to 15 employee's that are doing absolutely nothing, but sleeping for 8 hours plus they are doing this and getting Sunday premium for two nights. Does this make sense! They should offer something so some people would leave or excess these people. The post office is crying about money well then do something!!!
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