Theme: Job Security Now!

 Over a thousand delegates filled the grand ballroom of the Wilshire and spilled over into an extra room set up with screens so that the delegates could view President Bill Young as he spoke.

 Proud of the union and excited to see so many members here. Introduced the RAAs, staff members and officers. Clap, clap, clap, etc.

 Deeply distressed by the direction the President of the US is taking us and the state of the world today. This Rap Session is our State of the Labor Union. Wants to spend the next couple of hours discussing how to meet the task before us while planning how to meet the challenges of the future,. Easier to talk about job security than it is to attain it., Job security is our principle mission. In short term no layoff clause may do the trick but in the long term we need a strong and prosperous post office led by city letter carriers.

 Outlined goals for bargaining in Las Vegas. Wanted to transform jobs through self management, new route for evaluating routes. Warned about resistance from PO in the form of trying to contract out our routes. came form the very top, board of governors. at the 11th hour bog decided to pursue insanity of out sourcing carrier work rather than choose the bold plan offered by NALC to transform the PO. Bold strategic alternative. Took the high road and proposed historic win/win contract . board put ideology before long term interests of post office, employees and customers

 Bush appointed board trying to destroy our collective e bargaining rights. Pushed postal management into pushing the dangerous course of out sourcing operations whenever possible. Using back door methods to privatize the post office. Shared Services is the first example.

 Number of contract delivery points has doubled in recent years.

 $313 per delivery city carriers, $152 rural carriers, $96 for contract delivery according to the GAO. Potential savings are too much for some managers to ignore. Out sourcing promises billions in annual savings.

Why are her to day to say no , to resist postal management and the board of governors., We are here to decide how we are going to fight back. Save the postal service from itself.

Agenda for today

 The threat of contracting out

 Not a new threat. Sombrotto called rural carriers in house contracting out. Contract Delivery Services. Most new delivery points designated as rural even if they are city delivery because of the lower cost. Rural carrier

union has made concessions over the years to make rural delivery cheaper. Deliveries increased over 50%. 80% to 69% new city deliveries fell.

 Agreement on jurisdictional disputes between city and rural. Joined together to battle contract delivery. Rural carriers took pay cut to be more competitive with contract deliveries. suggested that the NALC should do the same.

 Renamed Contract Delivery Services last year. Training program developed for delivery managers

 CDS deliveries up 34% sine 2002. Targeting new developments usually new territory but some within city carrier territory. 30 day bid process targeting retirees

 Happening in Florida. New developments right next to city delivery are being contracted out. Claiming to save more than 50% on these deliveries. Workers subject to minimal screening and have little training.

 If we do not stop them now, how long will it be before po tries to replace existing city carriers

 violation of article 32. direct threat to carriers - weaken union bargaining, undercut middle class wages, threaten pension and health benefits. union busting strategy. loss of trust and accountability, lower skilled works, loss of privacy.

 Identity theft. terrorist threats. not the time to contract out.

 Highly skilled, motivated employee work force needed to make new technology work.

 The postmaster general does not think that contracting out is a good idea.

NALC strategy - article 32 monitoring and compliance, collective bargaining strategy, political and legislative action.

Article 32 is not enough because management believes they can do whatever they want under this contract article.

 Collective bargaining track

 bargaining environment - strong productivity and profits, soaring health care costs, USPS network realignment and surge in out sourcing, stagnant wage growth in us economy (unions weak, shifting health care costs to employees, declining pension protection)

 thought we could reconcile our goals with the postal service.

 NALC goals: recognize carriers for their contributions, protect cola clause, job security, better route process

 USPS goals; moderate restraint policy on wages, control health care costs, reduce delivery costs

 NALC took high road: build on success with DRT, customer connect, CSRS/FERS

 what we proposed: (progressive solutions)

 health benefits ; reject proposal for 1%/year cut, city carrier only plan reduction from 84% to 72% other unions have agreed to this. PO will want more.

hired consultant to look at letter carrier only plan($475 million savings/year, BC/BS benefit levels

permit parties to promote good health and tailor benefit to carriers needs voluntary option: NALC Health Benefit Plan 85% - other plans 72% sharing the savings; our share would result in increased pay. $2700 per year just for implementing this plan,.

 propose major restructuring of city carriers by 2011.

 all letter carrier full time regulars working Mon - Fri. grade 2 retained with revamped responsibilities. no more casuals or TEs

 T-6 responsible for ten routes and fill in for annual leave, etc.

Saturday only workforce of bargaining unit new hires on probation paid step a, retired letter carriers paid step O. would result in benefit leave e and OT savings. Saturday workers could not work any other days. no reduction in retirement benefits for working Saturdays. Early out for city carriers task force on implementation created by USPS. looking for creative solutions for small offices.

 Proposal would save $20 billion dollars over the next 30 years. NALC wanted half but would take a40% for protection from subcontracting. 4 - 5% wage increase over the course of the contract.

 managers would have to learn to treat people decently because Saturday work force could just say take this job and shove it. could end up being Mon-Fri letter carriers on overtime if they don' t learn.

 November 29, 2006 had the makings of historic agreement which included all of these elements with a five year contract. included colas and general wage increases higher than those negotiated by the other unions. $1900 - $2200 per year more than what other unions got. had to include no contracting out clauses to protect the difference between carriers and other crafts.

 would have strengthened the long term viability of the post office for years to come. final negotiations cut off at the final hour due to linchpin of foregoing contracting out. PO would take the benefits and still contract out our jobs.

 on December 4th PO proposed final offer - 3 year contract, first year lump sum, reduce health benefits 1% next 2 years (reduction from 85% to 72 %) insulting proposal. bill young demanded apology for insulting contract at his installation. eliminate colas, cut sick and annual leave. no extension of annual lay off clause. told not to overreact as it is only arbitration. thinks board of governors is behind this.

 progress made over the last five years at risk. future joint programs: sequencing flats, customer connect, evaluated route system. po cannot succeed without our help but if they are going to contract out our jobs we will fight them every step of the way these programs. no more asking carriers to do customer connect or volunteer for safety programs.

 why hasn't Bill Young declared war on postal management or pulled plug on joint programs? It would undermine our strategy for arbitration to pick up our ball and go home.

 thought in the best interest of members on merits but also show that NALC has best interests of PO at heart and wants to show that we are working together. if necessary we will fight management at every term after arbitration.

 Next steps. new postal reform law calls for mediation with parties discussing grounds for arbitration. if mediation fails tri-party arbitration interest panel . once chosen arbitration will occur.

 Developing evidence and testimony. have employed new outside witnesses.

 other unions' contracts have no bearing on us other than to show how insulting the PO's offer to us was. other contracts ratified 7 - 1. pursue our own course because city carriers are unique.

 threat of contracting out so important that we have to fight it everywhere

we can. number one issue in Washington dc. take advantage of more labor friendly congress. educate members and staff on the pitfalls of contracting out. will work with major mailers who supported postal reform to explain the dangers of contracting out. commitment from major mailing groups to testify at arbitration against contracting out. conversations with leaders in both parties who are ready to ask bog hard questions.

 letter carriers across the country must help - legislative liaisons and e-activists.

 Republican Tom Davis guaranteed help as well as strong slate of republican law makers to help out. Henry Waxman, California, offered to start hearings now.

 Must build o political successes of 2006. Anti union president in white house. Need a friend in the white house to get a better board of governors. Short term goal to elect a president who supports us. Need bipartisan support.