Texarkana Texas and Arkansas - Post Office split down the middle by the state line.
January 2008
Monthly Archive
Photo: Same Post Office in Two Different States
APWU Wins $48 Million Settlement In MS-47 Handbook Grievance
The APWU and the Postal Service have finalized a $48 million payout to “remedy” the USPS violation of staffing procedures for custodial employees. The settlement will be in the form of lump-sum payments of $2,700 to more than 17,000 employees occupying custodial positions, with payments to be made by April 18
Democrat Elected New Chairman Of USPS Board of Governors
Democrat Alan Kessler Replaces James Miller III as Chairman of the USPS Board of Governors . Republican Carolyn Gallagher is New Vice Chairman.
USPS News Prelease:
Philadelphia attorney Alan C. Kessler was elected chairman of the Postal Service Board of Governors and Austin, TX, businesswoman Carolyn Lewis Gallagher was elected vice chairman during today’s Board meeting.
Kessler was appointed to the Board by President Clinton in 2000 for a term that expires December 2008. He has served as vice chairman since 2005 and succeeds James C. Miller III as chairman. Miller was appointed to the Board in 2003 for a term that expires December 2010.
“First, I’d like to thank Jim Miller for his leadership over the past several years and during very dynamic times, including his guidance following passage of the Postal Act of 2006,” said Kessler. “I’m honored the Governors have given me the opportunity to serve as chairman and I look forward to helping the Postal Service navigate the future.”
Chairman Kessler is a partner in the Philadelphia law firm of Wolf, Block, Schorr and Solis-Cohen, LLP, with substantial experience in the defense of class-action litigation, including securities, antitrust, toxic tort and civil rights cases as well as a government relations and counseling practice. He has served on commissions, boards and authorities at the federal, state and local levels, including a 1994 Presidential appointment as vice chair of the Presidential/Congressional Commission on Risk Assessment and Risk Management. He currently serves on both state and local development boards.
Vice Chairman Gallagher was named a Governor by President Bush in 2004 for a term that expires December 2009. She is the former CEO of Texwood Furniture, Inc., and has served on numerous private and public sector boards. In 2003, Gallagher served on the President’s Commission on the United States Postal Service, which submitted a report titled “Embracing The Future.”
Postal Service First-Quarter Results Reflect Drop in Mail Volume
USPS issued the following press release:
National On-Time Performance Hits Record Highs
The U.S. Postal Service announced that mail volume was down 3.0 percent, or 1.7 billion pieces, for the first quarter of fiscal 2008, according to preliminary financial results presented today to the Postal Service Board of Governors.
First-Class Mail volume decreased 3.9 percent and Standard Mail decreased 2.6 percent in the quarter ending Dec. 31, 2007.
Chief Financial Officer and Executive Vice President H. Glen Walker attributed the declining mail volume to “disturbing trends” in the overall U.S. economy.
“Unfortunately, two key sectors of the economy — finance and housing — suffered a downturn in the first quarter, and they’re both heavy users of the mail,” said Postmaster General John Potter.
Net income for the first quarter is estimated at $672 million on revenue of $20.4 billion.
“Although revenue is higher than in the same quarter last year, due to the price increase last May, it is $500 million less than expected,” Potter said. “We’re working to offset the disappointing revenue with cost reductions and new strategies for growth.”
Final first-quarter financial results will be released in February.
First Quarter Service Scores
National on-time performance scores for the delivery of First-Class Mail hit all-time first-quarter highs in two of the three categories the Postal Service tracks. National overnight service was 96 percent on-time – a first for three quarters in a row. Two-day service was 93 percent on-time. Three-day performance was 88 percent, a two-point improvement over the same period last year.
“These are excellent service scores for the first quarter,” said Potter, ”especially given winter weather conditions and our busiest mailing season.”
First-Class Mail performance is measured independently by IBM Global Business Services. The process measures First-Class Mail from the time it is deposited into a collection box until it is delivered to a home or business.
Other Board Action
The Board today approved three facility projects: expansion of the processing and distribution centers in West Sacramento, CA, and Providence, RI, and the purchase and renovation of an existing building and site to serve as the Perris, CA, Delivery Distribution Center.
Bush Administration Seeking Changes To FMLA Regulations
According to the Associated Press:
The Bush administration is proposing the first changes to regulations in the Family Medical Leave Act in more than a decade.
The act allows eligible workers to have up to 12 weeks of unpaid leave in a year for such things as caring for a newborn or a sick family member, or to address a serious health condition.
The Labor Department says it has sent the proposed changes to the White House, but won’t say what the changes are.
Advocates for the act say they’re worried that the administration will try to cut back or weaken protections of the law. They say the government should be working to expand it.
But the Labor Department says people already eligible under the act will remain eligible, and that changes will be aimed at stopping people from abusing the system.
The changes will be made public once the White House signs off on them. The Labor Department hopes the final regulations will come by the end of the year.
The New York Times reported:
Labor Department officials said on Thursday that they had proposed new regulations that address some corporate complaints that workers are abusing the Family and Medical Leave Act. Under the proposals, workers would generally have to call in to request a leave before taking it; currently, employees can take off for two days before requesting a leave.She said the proposed regulations would allow companies to require doctors to recertify annually that a worker has a serious health condition. Under current rules, doctors can provide a multiyear certification that a worker has a serious condition.
Although a Labor Department official announced the move through interviews with the Associated Press and The New York Times, the department has not provided any details about its recommendations.
Workforce Management reports:
The White House budget office has up to 90 days to review the proposal, but observers estimate that it likely will be published by mid-February in the Federal Register. The public would then have 60 days to comment. Then the Labor Department would issue a final regulation.
Photo: Handcrafted Mailman Scene
legal cases& PostmastersJan 25 2008 08:00 am
Former Postmaster Pleads Guilty To Possession of Child Pornography
The following information was released by the United States Attorney’s Office for the Northern District of West Virginia:
MARTINSBURG, WEST VIRGINIA — A 55 year old Jefferson, Maryland, resident entered a plea of guilty on January 14, 2008, in United States District Court in Martinsburg before Magistrate Judge David J. Joel.
United States Attorney Sharon L. Potter announced that LORENZO LEAK entered a plea of guilty to one count of an Indictment charging him with possession of child pornography. Specifically, LEAK used his government computer at the United States Post Office to access the internet and download child pornography.
LEAK, who is currently free on bond pending sentencing, faces a maximum exposure of 10 years imprisonment and a fine of $250,000. As part of his plea, LEAK agreed to pay restitution in the amount of $13,509.77 for U. S. Post Office money orders which he converted to his own use.
The case was prosecuted by Assistant United States Attorney Paul T. Camilletti. The case was investigated by the United States Postal Inspection Service – Office of Inspector General and the Federal Bureau of Investigation.
According to previous news reports:
The former Postmaster was indicted by a federal grand jury for alleged possession of child pornography and 82 counts of embezzlement. Lorenzo Leak Jr. was the Postmaster at the Falling Waters Post Office when the alleged offenses occurred between 2004 and 2006. He allegedly had possession of a computer disk with about 100 child pornography images on it that he viewed on a computer at that post office, according to the indictment. He also allegedly cashed 82 money orders that enriched him by more than $11,000.
Big Pay Increases Approved For Top Postal Service Officers
Story from Linn’s Stamp News
WASHINGTON WATCH
Big pay increases approved for top Postal Service officers
BY BILL MCALLISTER
Postmaster General John E. “Jack” Potter and seven other senior United States Postal Service officers have been granted large raises, by the Postal Service board of governors.
The increases were disclosed by the Postal Service Jan. 3 in response to a Freedom of Information Act request filed by Linn’s.
The raises were approved May 2007 retroactive to Jan. 5, 2007, under the Postal Accountability and Enhancement Act of 2006, which removed the top Postal Service officers from the federal pay cap that restricts the pay of most federal workers to that of no more than the vice president of the United States.
Citing a need to raise the pay of the Postal Service’s top officers, Congress voted in December 2006 to give the postal board of governors authority to boost the pay of up to 12 Postal Service officers up to an amount “not to exceed 120 percent of the vice president’s total annual compensation.” U.S. vice president Dick Cheney is currently paid a salary of $215,700.
The board authorized increases for eight officers.
Potter, the 72nd postmaster general, got the biggest increase. His salary jumped nearly 39 percent to $258,840, up from $186,600 in 2007. That’s an increase of $72,240 and the maximum pay allowed to Postal Service officers.
The pay of Patrick Donahoe, deputy postmaster general and chief operating officer, jumped to $235,000 from $186,000, a 26 percent raise.
The pay of Harold G. Walker, chief financial officer and executive vice president, rose to $215,000, up from $186,000.
Anthony Vegliante, chief human resources officer and executive vice president, saw his pay rise to $225,000, up from $183,100.
The pay of Anita Bizzotto, chief marketing officer and executive vice president, rose to $225,000, up from $183,100.
The pay of Mary Anne Gibbons, general counsel and senior vice president, rose to $215,000, up from $177,800.
William Galligan, senior vice president for operations, saw his pay rise to $215,000, up from $183,100.
Robert Otto, chief technology officer and vice president, saw his pay rise to $205,000, up from $177,800. Otto retired Oct. 1 and a successor has not yet been named.
Potter’s pay had been at the same level as that of cabinet officers, a reflection of the days when the postmaster general was a cabinet post. Cabinet members will be paid $191,300 this year, according to the Office of Personnel Management.
In releasing the salaries, Postal Service officials noted that in 2003 the President’s Commission on the Postal Service called for increasing the pay of top officers to a level competitive with private industry.
The Postal Service also noted that pay of some corporate executives who manage companies with fewer employees than the Postal Service earn far more than Potter will earn. Proctor & Gamble chief executive A.G. Lafley, for example, earns $29 million a year.
It also noted the pay of the executives of two private delivery firms: Frederick W. Smith, CEO of Federal Express earns $8.67 million and Michael L. Eskew of United Parcel Service earns $3.1 million.
The Postal Service also compared Potter’s pay with that of other postal chiefs.
Deutsche Post pays Klaus Zumwinkel $4 million. Peter Baker of Netherlands TNT earns $2.94 million, and the United Kingdom’s Royal Mail pays Adam Crozier $1.57 million. Australia Post pays CEO Graeme John $1.89 million; New Zealand Post pays CEO John Allen $733,000; Japan Post pays its president Norio Kitamura $246,737; and Canada Post pays CEO Moya Greene $483,876.
Potter’s pay trails that of three other government created organizations. Fred- earns $7.59 million. die Mac’s Richard Syron is The Tennessee Valley earning $11.47 million, and Authority pays CEO Tom Fannie Mae’s Daniel Mudd Kilgore $1.6 million.
Former Florida APWU Local President Sentenced to Prison in Theft Case
Another Postal Employee Sentenced for Stealing Undeliverable Bulk Business Mail
The following is a press release from the United States Attorney’s Office for the Northern District of Florida:
January 17, 2008
Pensacola, Florida - Gregory R. Miller, United States Attorney for the Northern District of Florida, and James B. Davis, Special Agent in Charge of the Miami Office of the United States Postal Service (USPS) Office of Inspector General announced today Tony David Grimsley and Bobby Ray Pruett, both former employees of the United States Postal Service, were sentenced today by United States District Judge M. Casey Rodgers following their mail theft convictions. Grimsley was found guilty following a jury trial of theft of 214 “movie coupons” issued to mail customers by Movie Gallery, Inc. In a separate case, Pruett, the former local chapter president of American Postal Workers Union, entered a plea of guilty to mail theft charges in connection with his opening of first class mail parcels and theft of the contents. Evidence in both cases included covert surveillance video, oral and written confessions, and testimony from law enforcement and civilian witnesses.
Grimsley was sentenced to six (6) months of home detention, a $1,000 fine, $800 restitution to Movie Gallery, Inc., and two (2) years of supervised release. Pruett, who was on State of Florida probation for an unrelated crime at the time of the offenses, was sentenced to seven (7) months imprisonment, a $500 fine, two (2) years of supervised release, and a $200 special monetary assessment.
“U.S. Postal Service employees are given a special trust to properly handle mail that comes into their possession, “ said U.S. Attorney Miller. “When even one postal employee violates that trust, it is a cause for concern for all customers of the mail system.”
“Although the vast majority of the Postal Service’s 800,000 employees are honest and trusted public servants, there are a small number who betray that trust. In those instances, criminal prosecution is vigorously pursued,” said Special Agent in Charge Davis. “The Inspector General’s mission is to promote integrity and accountability in America’s postal system.”
Both cases resulted from the investigation of the United States Postal Inspection Service Special Agents David Williams and Guy Nelson. Grimsley was prosecuted by Assistant United States Attorney Thomas P. (Tom) Swaim, and Pruett was prosecuted by Assistant United States Attorney Randall J. (Randy) Hensel.
Related: Former Florida APWU Local President Pleads Guilty to Theft of Mail (January 1, 2008)
On November 2, 2007, a former Sales and Service Associate (SSA), who was APWU president of the Playground Area Local , pled guilty to 1 count of Theft of Mail by Postal Employee and 1 count of Delay of Destruction of Mail by a Postal Employee. The guilty plea stemmed from a OIG investigation into an allegation that postal management suspected the SSA of rifling mailpieces and parcels destined as Return-to-Sender or endorsed as undeliverable. PostalReporter.com: According to his indictment, he took two cigarette lighters, two Victoria’s Secret free panty cards, a Florida State University neoprene bottle cooler and an Apple iPod. After waiving his Miranda rights, he signed a 9-page statement which contained incriminating evidence against him. Although he was issued a notice of removal, he is fighting it through the grievance procedure.
Former Postal Workers Sent to Prison For Assaulting Manager
According to a U.S. Attorney’s Office press release:
Baltimore, Maryland - U.S. District Judge William M. Nickerson sentenced John Bermudez, Jr., age 31, of Brooklyn, Maryland today to 10 months in prison followed by three years of supervised release for assault of a government official and sentenced his brother, Gregory Bermudez, age 28, of Millersville, Maryland to eight months in prison, followed by three years of supervised release, on the same charge, announced United States Attorney for the District of Maryland Rod J. Rosenstein. John Bermudez was convicted by a federal jury on August 2, 2007 after a three day trial and Gregory Bermudez pleaded guilty on July 26, 2007.
According to the guilty plea, testimony at trial and other court documents, Gregory Bermudez and John Bermudez, Jr., worked at the United States Postal Service Incoming Mail Facility (IMF) in Linthicum, Maryland. On February 8, 2006 at the IMF a supervisor instructed John Bermudez to stop playing cards and return to work. Both defendants argued with the supervisor, who sought the assistance of the manager of the work floor. When the manager responded he discovered the defendants in a heated argument with another employee. Unable to regain control of the work floor, the manager informed the defendants that he was calling the police and turned to walk away. The defendants followed the manager and, as the manager approached the phone, Gregory Bermudez struck him from behind with his fist. The victim fell to the ground and both defendants punched and kicked him as he lay on the ground. The defendants then left the facility through the loading dock area.
United States Attorney Rod J. Rosenstein thanked the U.S. Postal Inspection Service for their investigative work, and commended Assistant United States Attorneys Paul E. Budlow and Tamara L. Fine, who prosecuted the case.