Site Map Icon
RSS Feed icon
June 18, 2018

Action Center
APWU Postal Press Association
Union Plus Benefits
Lite Blue
APWU Health Plan

USPS may resort to buyouts, early retirements
Posted On: Feb 18, 2012

USPS may resort to buyouts, early retirements in aggressive downsizing

The U.S. Postal Service may resort to early retirements and buyout offers as a way to slash its staff by 66,000 employees this year and another 51,000 next year. Combined, the planned cuts over the next two years amount to more than one-fifth the agency's workforce.

Office of Personnel Management Director John Berry said Wednesday that Postmaster General Patrick Donahoe alerted him a week earlier that USPS could offer both early retirement and buyout incentives to encourage employees to leave.

Chief Financial Officer Joe Corbett on Thursday outlined for reporters the Postal Service's ambitious plans to pare down its workforce in the next five years by 155,000 employees — ultimately reaching an end strength of 402,000 by the end of fiscal 2016.

Normal attrition removes roughly 30,000 employees a year, so it appears likely the agency will have to resort to either early retirement offers or buyouts or both to reach its downsizing targets. The agency's labor contracts generally prohibit layoffs.

Corbett told reporters in a conference call that early retirement incentives are under consideration, but he did not discuss the possibility of buyouts.

"We'll announce our path forward soon," Corbett said. Asked later whether buyouts are on the table, a USPS spokeswoman said she had no "additional information."

By the Postal Service's count, 283,000 workers are currently eligible for regular or, if offered, early retirement.

The Postal Service released its five-year plan after posting a net loss of $3.3 billion for the first quarter of fiscal 2012, usually the most profitable quarter because of the holiday shipping season.

The proposed workforce reductions would be part of a comprehensive strategy to save more than $22 billion annually by 2016. Other pieces of that strategy include ending most Saturday delivery; allowing the Postal Service to create its own health coverage in place of the Federal Employees Health Benefits Plan; and dropping the legal requirement for the Postal Service to pay about $5.5 billion annually into a fund to cover future retiree health benefits. Otherwise, Corbett warned, the Postal Service will need taxpayer help to survive.

In addition to the 117,000 employees the agency aims to shed between last October and September 2013, the agency aims to trim 38,000 in 2014 through 2016 for a total of 155,000 for the five-year period.

Corbett also defended the mail carrier's bid to create its own three-tier health plan for current workers, new hires and retirees. The agency plans to unveil details of the plan soon, Corbett said.

Member Login


Not registered yet?
Click Here to sign-up

Forgot Your Login?

APWU National Agreement 2015-2018

Important Links
Postal Employee Network
Postal Reporter
Dead Tree Edition
Save The Post Office
Huffington Post
21st Century Postal Worker
The Federal Times
Tri-County Area Local #3800 Website
Postal Worker Salaries
Upcoming Events
No Events Found
Action Center
APWU Postal Press Association
Union Plus Benefits
Lite Blue
General announcements
Module Content Goes Here
Youngstown, Ohio Area Local 443
Copyright © 2018, All Rights Reserved.
Powered By UnionActive™

141768 hits since Oct 17, 2011

Top of Page image