National PCC Week 2018 Talking Points

Transcription

1 National PCC Week 2018 Talking Points Postal Communicator s Toolbox Providing tools to help postal executives communicate the state of the business

2 September 21, 2018 POSTAL EXECUTIVES ATTENDING NATIONAL PCC WEEK SUBJECT: Executive Fact Sheets Enclosed is a brief compilation of fact sheets on a range of key topics for use as background information. Corporate Communications has prepared these fact sheets to help you stay abreast of the latest postal issues and to assist in fielding questions you may get during PCC Week. The fact sheets cover the following topics: Key Issues Financials Board of Governors vacancies Task Force on the United States Postal System STOP Act Opioid Crisis Peak Planning Pricing Postal Service, American Postal Workers Union Contract Negotiations Storm Preparation and Recovery Please note that these documents are for internal Postal Service use only and are not to be distributed to customers, the media or other attendees. Additional talking points on these and other issues are available on the Postal Communicator s Toolbox at blue.usps.gov/toolbox. Thank you and have a great PCC week! Sincerely, Janice D. Walker Vice President, Corporate Communications

3 Postal Communicator s Toolbox Providing tools to help postal executives communicate the state of the business NATIONAL PCC WEEK 2018 TALKING POINTS Key Issues Financials (AS OFJUNE 30, 2018) The U.S. Postal Service reported total revenue of $17.1 billion for the third quarter of 2018 (Apr. 1, 2018 June 30, 2018), an increase of $402 million, or 2.4 percent, compared to the same quarter last year. First-Class Mail revenue declined by $134 million, or 2.2 percent, and Marketing Mail revenue increased by $63 million, or 1.6 percent. Total mail volume declined by a combined 397 million pieces, or 1.2 percent, compared to the same quarter last year. Shipping and Packages revenue increased by $475 million, or 10.2 percent, on volume growth of 102 million pieces, or 7.5 percent. The net loss for the quarter totaled $1.5 billion, a decline in net loss of $651 million compared to the same period last year, the result of nonrecurring adjustments to retirement and retiree health benefit plans to account for revised actuarial assumptions. Excluding the effects of these adjustments, the net loss for the quarter increased by $507 million. Total operating expenses were $18.5 billion for the quarter, a decline of $240 million, or 1.3 percent, compared to the same quarter last year. Inflationary pressures on salaries and benefits, as well as fuel and transportation costs were offset by the actuarial changes. The root cause of the Postal Service s financial instability is a flawed business model that is imposed by law. Absent changes to USPS s business model, net losses are expected to continue. The Postal Service s financial situation is serious, yet solvable with: o continued aggressive management actions, o advancement and passage of postal reform legislation, o establishment by the Postal Regulatory Commission of a less rigid and more responsive pricing system. Complete financial results are in the Form 10-Q, available at September

4 Board of Governors Vacancies Board Chairman Robert M. Duncan and Board Vice Chairman David C. Williams have begun their terms as Governors of the U.S. Postal Service following their Aug. 28, 2018, confirmation by the U.S. Senate. The public interest and the Postal Service are best served by a fully constituted Board made up of well-qualified individuals with diverse perspectives and experience like Governor Duncan and Governor Williams. We thank the Administration for nominating two additional candidates to serve as governors, Ron A. Bloom and Roman Martinez IV, and look forward to the restoration of a board quorum. The powers of the Board of Governors necessary for continuity of operations will continue to be delegated to the Temporary Emergency Committee until the Board once again has a statutory quorum. Task Force on the United States Postal System Statement on Executive Order Establishing the Task Force on the United States Postal System The Postal Service serves a vital role for American commerce and the American people, as we have for over 240 years. Congress structured the Postal Service to pay for our universal retail, processing and delivery network entirely through the sale of high-quality mail and package products and services, without receiving any tax revenues to support our operations. To ensure that we can continue to provide prompt, reliable, and efficient universal postal services in a selfsufficient fashion in today s increasingly digital world, fundamental statutory reforms to the structure under which we are required to operate are needed. As we have repeatedly stressed, these business model problems are serious, but solvable, and the President s executive order establishing the Task Force on the United States Postal System provides an opportunity to further consider these important public policy issues. An open and transparent review process in which the perspectives of all stakeholders are fully represented to develop reform proposals could benefit American businesses and consumers. While these recommendations are being developed and then considered by the President and Congress, it remains necessary to put the Postal Service on firmer financial footing through immediate legislative and regulatory reform. We therefore continue to urge Congress to enact the pending postal reform legislation and the Postal Regulatory Commission to replace the current price cap on our mailing products. We will continue to aggressively manage our business, and to serve the American public. September

5 STOP Act Opioid Crisis The Postal Service shares the deep concern of the Congress and the Administration about America's opioid crisis. As we have done throughout our history, the Postal Service is committed to taking all practicable measures to ensure our nation s mail security, and provide the American public the best, most efficient service possible. The Postal Service is making tremendous progress in this area and we fully support the STOP Act's goal of increasing advance electronic data (AED) on inbound and outbound parcels containing goods. By working closely with DHS, CBP and other federal and law enforcement agencies, and through improved investigative techniques, we are helping to keep illicit drugs like fentanyl out of the hands of the American public. From FY16-17, the Postal Inspection Service achieved a 375 percent increase in international parcel seizures, and an 880 percent increase in domestic parcel seizures related to opioids. We have prioritized obtaining AED from the largest volume foreign posts, which collectively account for over 90 percent of inbound volumes, and which, unlike some countries, have the capability to provide the AED information. In last 3 years, USPS has gone from receiving almost no AED on inbound shipments to achieving current levels at approximately 45 percent. As legislation continues to make its way through the Congress, we will continue to work collaboratively with other key stakeholders, and to offer helpful suggestions on the bill text. Peak Planning We are ready for the upcoming holiday and peak season. Our network capacity makes us uniquely positioned to deliver the holidays and well prepared to handle the surge in volume it s what we do and we prepare for it all year long. Our extended peak planning includes matching equipment needs to volume forecasts, flexible workforce hiring and improving and expanding current technology to keep our network fluid including new sorting and other equipment in our processing plans. In addition, we have expanded delivery windows, with more deliveries in the early morning and on Sundays. We are also maximizing the use of our vehicle fleet, expanding flexible drop times, and expanding use of parcel lockers. September

6 We will be delivering billions of pieces of mail and packages from Thanksgiving to New Year s Day and our employees take great pride in meeting the holiday delivery expectations of the American public. Millions of packages are expected to be delivered each of the five Sundays before Christmas in select major markets beginning Nov. 25 Pricing Robert Duncan and David Williams have been confirmed as Governors of the U.S. Postal Service and have been elected as Chairman and Vice Chairman of the Board, respectively. They have held both an open and closed session of the Temporary Emergency Committee of the Board, which is still in operation until a quorum is restored, and are already considering the critical business issues facing the Postal Service, including those relating to pricing. To date, no decisions have been made concerning a general price increase, but details will be shared once a decision is made. Postal Service, APWU Contract Negotiations The United States Postal Service and the American Postal Workers Union (APWU) have agreed to extend contract negotiations on a new collective bargaining agreement. Although the contract with the APWU expired at midnight Thursday, September 20, the Postal Service and the APWU have mutually decided to extend the negotiations deadline by thirty days to October 20, The APWU represents more than 192,000 employees who work as clerks, mechanics, vehicle drivers, custodians and some administrative positions. Storm Preparation and Recovery During and after storms, or other natural disasters, our top priority is the safety of our employees and customers. Alert bars are prominently placed on our website to notify customers of potential suspension of operations or weather impacts. Customers and Mailers The U.S. Postal Service is dedicated to providing our residential customers and business mailers with information about their mail service in weather impacted areas. September

7 USPS Service Alerts: Service alerts provide information about postal facility and service disruptions due to weather-related and other natural disasters or events. Alerts can be found on usps.com at about.usps.com/news/service-alerts. Change of Address: In the event of a crisis, customers can fill out an online change of address form to make sure their mail goes where they go. The official USPS Change of Address form is found at moversguide.usps.com. Employees and Operations The Postal Service s top priority is the safety of our employees and customers. Emergency Management Teams focus on the top three priorities in a disaster: o o o People: Continually update employee data and account for every employee during and after a storm, or other disaster. Property: Identify facilities in impacted areas and implement contingency plans to evacuate and/or relocate equipment in the event of an emergency. Product: Implement strategies for the disposition of mail in and out of impacted areas, including change of address and retail operations. September