State of USPS State of USPS and the and the

Employee Free Employee Free Choice ActChoice Act

William BurrusWilliam Burrus

PresidentPresident

Terry StapletonTerry Stapleton

Secretary-TreasurerSecretary-Treasurer

The State of the USPS and the The State of the USPS and the Employee Free Choice ActEmployee Free Choice Act

Why both these issues are connected. Why both these issues are connected.

Getting the message to our member.Getting the message to our member.

It’s a fight we can win!It’s a fight we can win!

HR 22HR 22USPS Funding for Retiree USPS Funding for Retiree

Health BenefitsHealth Benefits

William BurrusPresident

Myke ReidLegislative/Political Director

USPS - Government Relations, USPS - Government Relations, December 2008December 2008

The Postal Service is under serious financial strain due to challenging economic conditions that continue to reduce mail volume.

A combination of factors has lead to the severity of the economic climate:

•Year over year fuel price increases

•Increases in the cost of paper

•Uncertainty in the financial markets

•Increased diversion of hardcopy messages to the Internet

•Continued increase in USPS expenses in pay and benefits

The Postal Service, Congress, and the rest of the postal community recognize that it is in a precarious financial condition. The public debate is whether to file an exigent rate case, reopen the political compact that led to the PAEA and release it from its obligation to fund future health benefit premiums, cut back on the frequency of delivery, or drastically reshape the Postal Service’s workforce.

USA Today, Gallup - Feb 1, 2009USA Today, Gallup - Feb 1, 2009

57

27

14

What would you most like to see done to help the Postal Service out of its financial difficulties?

Cut services such as Saturday delivery, or closing post offices

Provide government funding

Raise rates

USPS RevenueUSPS Revenue

Fiscal Year

Net income

Revenue Expenses Debt

2005 1,445 69,993 68,548 0

2006 900 72,817 71,917 2,100

2007 (5,142) 74,973 80,115 4,200

2008 (2,806) 74,968 77,774 7,200

Form 8-K, Filed with PRC, Form 8-K, Filed with PRC, 2/19/20082/19/2008

GAO - GAO-09-332TGAO - GAO-09-332T

What GAO FoundWhat GAO FoundIn fiscal year 2008, mail volume fell by 9.5 billion pieces, fuel prices increased by over $500 million, and cost-of-living allowances for postal employees increased costs by over $560 million. Cutting costs by $2 billion – primarily by cutting over 50 million work hours – did not close the gap between revenues and expenses. Thus, USPS recorded a loss of $2.8 billion for fiscal year 2008. Its debt increased by $3 billion by the end of the year to $7.2 billion. USPS’s outlook for fiscal year 2009 has become more pessimistic. USPS projects a volume decline of 10 billion to 15 billion pieces, another loss, and $3 billion more in debt. At this pace, USPS could reach its $15 billion statutory debt limit by fiscal year 2011.

What GAO Found, pt 2What GAO Found, pt 2

Two areas for further action to reduce costs include compensation and benefits, which is close to 80 percent of its costs, and mail processing and retail networks.

Accelerated volume declines and changes in the public’s use of mail indicate that USPS needs to move beyond incremental efforts and take aggressive action to streamline its workforce and network costs to assure its long-term viability.

GAO Proposed OptionsGAO Proposed Options

Work with unions to modify work rules:

One option that would not require congressional action is similar to actions taken by other financially stressed entities, whereby USPS and its unions could agree on ways to achieve additional short-term savings, such as by modifying work rules to facilitate reducing work hours.

Options, pt. 2Options, pt. 2Another option would be for USPS to close unnecessary retail facilities, and by reducing the number of facilities, USPS could lower the costs of maintaining its network of facilities. USPS’s network of retail facilities has been largely static despite population shifts and changes in mailing behavior. In considering options to provide retail services at a lower cost, it is important to note that large retail facilities – generally located in large urban areas – generate much larger costs for the retail network than the smallest rural facilities and may therefore potentially generate more cost savings.

Options cont.Options cont.

Closing postal facilities is often controversial but is necessary to streamline costs. Congress encouraged USPS to expeditiously move forward in its streamlining efforts in PAEA. We recommend that USPS enhance transparency and strengthen accountability of its realignment efforts to assure stakeholders that realignment would be implemented fairly and achieve the desired results.

PAEA Retiree Health CostsPAEA Retiree Health Costs

8089.a. Postal Service Retiree Health Benefit Fund

(3) (a) The United States Postal Service shall pay into such fund –

$5,400,000,000, by September 30, 2009; $5,500,000,000, by September 30, 2010; $5,500,000,000, by September 30, 2011; $5,600,000,000, by September 30, 2012; $5,600,000,000 by September 30, 2008; $5,600,000,000, by September 30, 2013; $5,700,000,000, by September 30, 2014; $5,400,000,000, by September 30, 2007; $5,700,000,000, by September 30, 2015; $5,800,000,000, by September 30, 2016.

Pre-Funding Premium Payments

Total

2009 $5.4 $2.3 $7.7

2010 $5.5 $2.6 $8.1

2011 $5.5 $2.9 $8.4

2012 $5.6 $3.3 $8.9

2013 $5.6 $3.6 $9.2

2014 $5.7 $4.0 $9.7

2015 $5.7 $4.4 $10.1

2016 $5.8 $4.8 $10.5

Total $44.8 $28.1 $72.9

PAEA Retiree Health Funds

HR 22HR 22

Introduced by –Introduced by – Rep. John McHugh (R-NY)Rep. John McHugh (R-NY) Rep. Danny Davis (D-IL)Rep. Danny Davis (D-IL)

Provides that funding come from RHBF Provides that funding come from RHBF through 2016through 2016

26 Cosponsors26 Cosponsors

To amend chapter 89 of title 5, United States Code, to allow the United States Postal Service to pay its share of contributions for annuitants' health benefits out of the Postal Service Retiree Health Benefits Fund.

CosponsorsCosponsorsAbercrombie (D-AK) Latham (R-IA)

Bartlett (R-MD) Lofgren (D-CA)

Bishop (D-NY) Massa (D-NY)

Boozman (R-AR) Pastor (D-AZ)

Boren (D-OK) Rehberg (R-MT)

Davis (D-IL) Ros-Lehtinen (R-FL)

Edwards (D-TX) Sestak (D-PA)

Ellison (D-MN) Space (D-OH)

Gordon (D-TN) Terry (R-NE)

Holden (D-PA) Thompson (D-MS)

Kagen (D-WI) Visclosky (D-IN)

Kildee (D-MI) Walz (D-MN)

Kucinich (D-OH) Woolsey (D-CA)

What You Need to Do!What You Need to Do!

Lobby your congressperson, and ask Lobby your congressperson, and ask them to co-sponsor HR 22them to co-sponsor HR 22

Educate your local members about Educate your local members about

HR 22HR 22 Educate your allies about HR 22Educate your allies about HR 22

Delivery Points up 1.1M from 2007 to Delivery Points up 1.1M from 2007 to 1.49M delivery points a day1.49M delivery points a day

716,000 Employees of which 642,000 are 716,000 Employees of which 642,000 are Bargaining Unit EmployeesBargaining Unit Employees

2008 Volume 202.7B pieces2008 Volume 202.7B pieces

State of the USPSState of the USPS

State of the USPSState of the USPS

9.5 billion or 4.5% fewer letter and 9.5 billion or 4.5% fewer letter and flats in 2008 v. 2007 flats in 2008 v. 2007

Largest decline in history of USPS Largest decline in history of USPS

A loss of $2.8 billionA loss of $2.8 billion

Postage rates will have to be Postage rates will have to be increased causing further decline in increased causing further decline in volumevolume

Mortgage and credit card mailings Mortgage and credit card mailings are down 57% are down 57%

State of the USPSState of the USPS

Environmentalists argue against use Environmentalists argue against use of mails of mails

Oil prices have been an enormous Oil prices have been an enormous cost factor - fueling a 220,000 cost factor - fueling a 220,000 vehicle fleetvehicle fleet

For every penny increase of gas it For every penny increase of gas it costs the USPS 8M annuallycosts the USPS 8M annually

State of the USPSState of the USPS

The USPS must pay 5 billion a year to The USPS must pay 5 billion a year to prepay retiree health benefitsprepay retiree health benefits

Stamp prices not taxes fund services, Stamp prices not taxes fund services, USPS supposed to operate in blackUSPS supposed to operate in black

Borrowing limit of 15B and this year we Borrowing limit of 15B and this year we will be up to itwill be up to it

State of the USPSState of the USPS

2008 USPS cut 50 million work hours2008 USPS cut 50 million work hours

23,000 vending machines23,000 vending machines

2009 anticipated loss of another 8 2009 anticipated loss of another 8 billion piecesbillion pieces

State of the USPSState of the USPS

156,000 offered Voluntary Early 156,000 offered Voluntary Early Retirement (VER)Retirement (VER)

3,685 retired on 12/31/083,685 retired on 12/31/08

4,000 more are expected to go in 4,000 more are expected to go in February 2009February 2009

State of the USPSState of the USPS

VERs will continue to be offeredVERs will continue to be offered

In the last 7 years - 100,000 In the last 7 years - 100,000 employees have left the Serviceemployees have left the Service

State of the USPSState of the USPS

What can we expectWhat can we expect

More excessingMore excessing

Casuals reduced and/or eliminatedCasuals reduced and/or eliminated

PTF work hours reducedPTF work hours reduced

Letter carrier impacts with carrier route Letter carrier impacts with carrier route adjustments and deployment of FSSadjustments and deployment of FSS

Consolidation studies for mails and Consolidation studies for mails and installationsinstallations

What can we expectWhat can we expect

The passage of the EFCA is The passage of the EFCA is essential to the APWU essential to the APWU

membershipmembership The Employee Free Choice Act is the The Employee Free Choice Act is the

most significant labor legislation in most significant labor legislation in decades. This bill would allow workers decades. This bill would allow workers who want to form unions a fair who want to form unions a fair opportunity to do so. opportunity to do so.

The passage of the EFCA is The passage of the EFCA is essential to the APWU essential to the APWU

membershipmembership But, it is important not only to non-union But, it is important not only to non-union

workers, it is important to workers who workers, it is important to workers who already have unions. Corporations already have unions. Corporations increase their profit margins by cutting increase their profit margins by cutting workers pay and benefits. A large pool of workers pay and benefits. A large pool of non-union workers allows these non-union workers allows these corporations to put downward pressure on corporations to put downward pressure on workers’ attempts to negotiate for decent workers’ attempts to negotiate for decent pay.pay.

The passage of the EFCA is The passage of the EFCA is essential to the APWU essential to the APWU

membershipmembership A survey of non-union workers revealed A survey of non-union workers revealed

that 60 million of these workers want to that 60 million of these workers want to have a union in their workplace. Among have a union in their workplace. Among the many “unorganized” are truck drivers, the many “unorganized” are truck drivers, custodians, mail processors, parcel custodians, mail processors, parcel sorters, and retail clerks who work for sorters, and retail clerks who work for contractors that perform the same work contractors that perform the same work as APWU bargaining unit employees.   as APWU bargaining unit employees.  

The Employee Free Choice ActThe Employee Free Choice Act

The Employee Free Choice Act The Employee Free Choice Act balances the playing field and would balances the playing field and would let workers decide if they want a let workers decide if they want a use majority ‘card check’ or a secret use majority ‘card check’ or a secret ballot to form a union. That ballot to form a union. That decision would no longer be made decision would no longer be made by management-for the workers. by management-for the workers.

90 days to reach agreement90 days to reach agreement 30-day period where a mediator 30-day period where a mediator

attempts to resolve the contractattempts to resolve the contract ArbitrationArbitration 2 year contract2 year contract

The Employee Free Choice ActThe Employee Free Choice Act

Comparability Standard for Comparability Standard for wage/benefitswage/benefits

Concessionary Bargaining in Concessionary Bargaining in 20102010???(losing COLA , increased ???(losing COLA , increased health premiums)health premiums)

The Employee Free Choice Act The Employee Free Choice Act affect on APWUaffect on APWU

Employers are gearing up the rhetoricEmployers are gearing up the rhetoric

$200M campaign$200M campaign

They claim EFCA allows unions to They claim EFCA allows unions to circumvent NLRB elections (half-plus-one circumvent NLRB elections (half-plus-one and you’re done.)and you’re done.)

The Employee Free Choice ActThe Employee Free Choice Act(the attack)(the attack)

Unions will target every business with Unions will target every business with 2 or more employees is now a target2 or more employees is now a target

After the Card Check bill becomes a After the Card Check bill becomes a reality, there is no check on Union’s reality, there is no check on Union’s abusive tactics.abusive tactics.

There would be no NLRB-supervised There would be no NLRB-supervised secret ballot election free from the secret ballot election free from the threats and intimidation of home visits.threats and intimidation of home visits.

The Employee Free Choice ActThe Employee Free Choice Act (the attack) (the attack)

The opponents will claim that in The opponents will claim that in work places where non-union work places where non-union workers wages and benefits are workers wages and benefits are superior to some unions, that it is superior to some unions, that it is solely because they have no union.solely because they have no union.

The Employee Free Choice ActThe Employee Free Choice Act (the attack) (the attack)

To contact congressional representatives.To contact congressional representatives. Donate funds to the media campaign.Donate funds to the media campaign. Recruit local activist for EFCA training.Recruit local activist for EFCA training. Get worker’s stories from family members.Get worker’s stories from family members. Invite AFL representatives to membership Invite AFL representatives to membership

meetings, seminars, and conventions.meetings, seminars, and conventions. Phone, email, etcPhone, email, etc.. Educate our members about EFCAEducate our members about EFCA

The Employee Free Choice ActThe Employee Free Choice Act

We need all Locals We need all Locals

Winning Messages Winning Messages For The Employee For The Employee Free Choice ActFree Choice Act

HARTRESEARCH

P e t e r D

A S S O T E SC I A

Key Findings from Survey among 1,007 Adults Nationwide and 404 Union Members Conducted December 2008 for

4141

Strong Support For Employee Free Strong Support For Employee Free Choice ActChoice Act

29%

49%

44%

21%

37% 73%

Support for Employee Free Choice after hearing provisions

Allows employees to have a union once a majority of employees in a workplace sign authorization cards indicating they want to form a union

Strengthens penalties for companies that illegally intimidate or fire employees who try to form a union

75%

Establishes binding arbitration in cases where a company and a newly certified union cannot agree on a contract after three months of negotiating

64%

61%

Strongly favor Somewhat favor Oppose

4242

Patterns Of Support For Patterns Of Support For LegislationLegislation (After support and opposition messages)(After support and opposition messages)

All adultsRegistered votersUnion members

DemocratsIndependentsRepublicans

Conservative GOPs Non-conservative GOPs

MenWomen

WhitesAfrican AmericansHispanics

Stronglyfavor

41%42%58%

55%34%27%

18%46%

38%45%

36%65%46%

Totalfavor

72%72%84%

87%69%48%

36%74%

66%78%

69%88%76%

High school/lessSome collegeCollege graduates

Men graduates Women graduates

NortheastSouthMidwestWest

RTW states

Stronglyfavor

48%42%34%

31%37%

46%37%42%42%

36%

Totalfavor

77%76%63%

51%76%

81%67%73%68%

69%

4343

Stronger Support For Letting Stronger Support For Letting Workers Bargain For Wages, Workers Bargain For Wages,

Benefits, Conditions Benefits, Conditions

22%

28%

10%

46%78%

17%

36%

58%

Strongly favor Somewhat favor Strongly oppose Somewhat oppose

Legislation that makes it easier for workers to bargain with their employers for better wages, benefits, and working conditions

Legislation that makes it easier for workers to form unions in their workplace

4444

Economic Message Trumps Economic Message Trumps Opponents’ AttackOpponents’ Attack

With which side do you agree more on Employee Free Choice?

+19

SUPPORTERS say that the system is broken and working people are struggling to make ends meet today, and the middle class is being squeezed. One way to help average people get their fair share is to let them bargain with their employers for better wages and benefits. Workers in unions earn 28% higher wages on average, are 62% more likely to have employer health coverage, and four times as likely to have a pension. It’s time our economy worked for everyone again.(39% strongly agree)

OPPONENTS say that this legislation is a bad idea because it would abolish the secret ballot elections now held to determine union representation. This legislation would force more workers into unions, because union bosses can use coercion or deception to collect authorization cards. And with our economy already weak, we don’t need laws that give more power to the unions that wrecked the American auto industry.

54%

35%

4545

Focus on Corporations and CEOs Focus on Corporations and CEOs Strengthens Economic Message Strengthens Economic Message

+29

SUPPORTERS say that the system is broken and corporations and CEOs aren’t treating workers fairly today. They cut back on workers’ health care and wages, while CEO salaries skyrocket. They intimidate workers who join together to negotiate a contract, but these CEOs wouldn’t work one day without a written contract protecting their own perks and benefits. We need to protect workers’ rights, so that our economy works for everyone again––not just the CEOs.(40% strongly agree)

OPPONENTS say that this legislation is a bad idea because it would abolish the secret ballot elections now held to determine union representation. This legislation would force more workers into unions, because union bosses can use coercion or deception to collect authorization cards. And with our economy already weak, we don’t need laws that give more power to the unions that wrecked the American auto industry.

58%

29%

With which side do you agree more on Employee Free Choice?

4646

Health Care, Job Security, Health Care, Job Security, Pensions Trump WagesPensions Trump Wages

10%

16%

27%

28%Workers in unions have more job security

Workers in unions are 62% more likely to

have employer health coverage

Workers in unions are four times more likely

to have a pension

Workers in unions earn 28% higher

wages

Most important reason to make it easier for workers to form unions

4747

Knowledge Of Process Knowledge Of Process Remains LimitedRemains Limited

Only 47% of the public knows that employers Only 47% of the public knows that employers oppose unions.oppose unions.

60% of union members know that employers 60% of union members know that employers oppose oppose (up 6 points since 2006)(up 6 points since 2006)..

80% of the public and union members have 80% of the public and union members have heard little or nothing about the Employee Free heard little or nothing about the Employee Free Choice Act.Choice Act.

4848

Opponents of the legislation say it is a bad idea because it gets rid of the democratic right to a secret ballot election at work, and would allow union bosses to pressure workers into signing union authorization cards.

Supporters of the legislation say it should be the choice of the employees, not their boss, how they decide whether to form a union, and they should be able to exercise their free choice without interference from management.

Supporters of this legislation say we must improve the current company-dominated system, because corporations routinely fire and intimidate workers who try to form a union, which denies workers' freedom of choice and lowers living standards.

Two Strong Responses to Two Strong Responses to “Secret Ballot” Attack“Secret Ballot” Attack

% margin over secret ballot message

+19

+18

4949

But Don’t Get Stuck But Don’t Get Stuck Arguing ProcessArguing Process

There are currently two ways to form a union: ballot elections and majority sign-up, which has worked well at many responsible companies. Now it's the company that decides which of the two ways the workers can use. The Employee Free Choice Act would change that, so it is the workers, not the company, who decide which method to use. Opponents of this legislation are trying to confuse the issue by saying it eliminates elections. It does not.

This legislation is a bad idea because it would abolish the secret ballot elections now held to determine union representation. A secret ballot election is a better way to determine employees' true desires than authorization cards collected by union organizers, which can involve coercion or deception. Members of Congress got their jobs through secret ballot elections, and they should allow workers to keep that system too.

46%

48%

With which statement do you agree more?

5050

This is about making it easier for workers to This is about making it easier for workers to bargain with employers, not building unions.bargain with employers, not building unions.

Bring everything back to companies/CEOs Bring everything back to companies/CEOs and workers, need for a level playing field. and workers, need for a level playing field.

Workers make the strongest messengers Workers make the strongest messengers (Obama as well).(Obama as well).

Bottom Line MessagesBottom Line Messages

5151

We have strong, effective response to We have strong, effective response to “secret ballot” attack:“secret ballot” attack: The legislation does The legislation does notnot eliminate secret eliminate secret

ballot elections. It allows employees, not ballot elections. It allows employees, not their employer, to decide which process their employer, to decide which process they will use to form a union. they will use to form a union.

But, debating the process is not the best way But, debating the process is not the best way to pull people to our side. Our strength is the to pull people to our side. Our strength is the positive benefits of unionization.positive benefits of unionization.

Bottom Line MessagesBottom Line Messages

5252

Bottom Line MessagesBottom Line Messages The strongest affirmative economic message The strongest affirmative economic message

contrasts struggles of workers with corporate/ contrasts struggles of workers with corporate/ CEO excess.CEO excess.

Emphasize improvement in benefits, especially Emphasize improvement in benefits, especially health care. Raising wages is less compelling health care. Raising wages is less compelling (“fair wages” is better).(“fair wages” is better).

““It’s time our economy worked for everyone It’s time our economy worked for everyone again.”again.”

5353

ARAW Post-Election SurveyARAW Post-Election Survey The American Rights at Work survey was The American Rights at Work survey was

conducted November 2 – 4, 2008, among conducted November 2 – 4, 2008, among Senate voters in seven battleground states Senate voters in seven battleground states targeted by opponents of the Employee Free targeted by opponents of the Employee Free Choice Act (Colorado, Louisiana, Maine, Choice Act (Colorado, Louisiana, Maine, Minnesota, North Carolina, New Hampshire, Minnesota, North Carolina, New Hampshire, and Oregon). and Oregon).

American Rights at WorkAmerican Rights at Work is a nonprofit advocacy is a nonprofit advocacy organization whose mission is to support workers' rights organization whose mission is to support workers' rights to a free choice and a fair chance to join a union.to a free choice and a fair chance to join a union.

5454

Almost No Voter Recall of “Secret Almost No Voter Recall of “Secret Ballot” IssueBallot” Issue in Targeted States in Targeted States

1%

9%

9%

9%

9%

10%Disagree with candidate on the issues

Poor job, poor record, or lacks experience

Too liberal/prefer a more conservative candidate

Voting for a pro-life candidate

Not honest, not trustworthy, a crook

Union voting or “secret ballot” issue

Volunteered concerns about Democratic candidates(among GOP voters who say they voted against the Democrat)

Among 797 GOP voters interviewed, only four cite union voting or secret ballot as a reason.

5555

Concerns About Democratic Concerns About Democratic Senate CandidatesSenate Candidates

6%

8%

12%

17%

19%

22%Favors higher taxes and

more government spending

Is too liberal on issues such as abortion and gay

marriageWould give one party too

much power if Obama wins

Is weak on national security and the war on

terrorismFavors too much

government involvement in health care

Favors eliminating secret ballots in union

elections

(among GOP and third-party voters)

Affiliate with Your State Affiliate with Your State and Central Labor Bodyand Central Labor Body Local affiliation with state and central Local affiliation with state and central

AFL bodies is vital to win this fight. That AFL bodies is vital to win this fight. That is why the national union has urged is why the national union has urged locals to become member of their state locals to become member of their state AFL-CIO and central labor bodies. AFL-CIO and central labor bodies.

Thanks to Myke Reid, Mike Gallagher, Thanks to Myke Reid, Mike Gallagher, Gary Kloepfer for his contribution to this Gary Kloepfer for his contribution to this

webinar.webinar.

Turn Around America Turn Around America Media FundMedia Fund

Please make checks out to: AFL-CIO Secretary-Treasurer. In the memo line of your check, note the Turn Around America Fund.Please mail checks to:Office of the Executive Vice President, 815 16th St., N.W., Washington, DC 20006.

The Turn Around America Fund accepts donations only from labor organizations and from individuals on their own behalf.