8/6/2019 Postal Reform Act Highlights

http://slidepdf.com/reader/full/postal-reform-act-highlights 1/2

 

Highlights of the Postal Reform Act

•  Postal BRAC: Creates the Commission on Postal Reorganization to eliminate costlyexcess capacity and facilities. Over its first year the CPR will recommend closures

worth $1 billion/year for post offices. Over the second, it will recommend $1billion/year closures for mail processing and a 30% reduction in managementfacilities.

•  Solvency Authority: Creates an Authority modeled on and named after the DCControl Board with a mandate to cut costs, protect universal service, and returnUSPS to financial solvency. The Authority is triggered into existence when USPSgoes into default on any obligation to the federal government for more than 30 days.It has the authority to require renegotiation of existing collective bargainingagreements and the power to unilaterally modify those agreements if renegotiationfails. To accomplish its mission, the Authority may use a supplemental borrowingauthority of $10 billion, backed by USPS property as collateral.

•  5-Day Delivery: Allows USPS to move to 5-day delivery of mail.

•  Pay Comparability: Clarifies existing law to include wages and benefits indetermining total compensation comparability with the entire private sector.

•  Health and Life Insurance: Requires USPS employees to pay the same health andlife insurance premium percentage as other federal workers. This provision isphased in to apply to union employees after their current bargaining agreementsexpire.

•

  Mediation Arbitration: Modifies the collective bargaining process to the 2003Presidential Commission recommended mediation-arbitration process. Also requiresarbitrators to take into account total compensation comparability and the financialsituation of the Postal Service in any decision.

•  Cost Coverage: Requires all market-dominant products to cover costs, whilemaintaining the CPI price cap.

8/6/2019 Postal Reform Act Highlights

http://slidepdf.com/reader/full/postal-reform-act-highlights 2/2