More inequitable treatment from the United States Postal Service. Huge "retention incentive" for executive VP. Loss of job protections and benefits, wage freezes, and reduced time standards to determine pay for job functions for workers.

Contrast this, 11/152010:

25% Salary Retention Incentive for USPS VP Vegliante (PDF)

As a retention incentive, and in order to induce Mr. Vegliante to remain in the position of Executive Vice President and Chief Human Resources Officer, or in any successor position, the Postal Service shall provide Mr. Vegliante with individual incentive payments, less required withholding and deductions, as follows:

a. For the twelve-month period beginning November 1, 2010, the amount of the retention incentive shall be 25% of Mr. Vegliante's basic salary in effect as of November 1, 2010.

b. For the twelve-month period beginning November 1, 2011, the amount of the retention incentive shall be 25% of Mr. Vegliante's basic salary in effect as of November 1, 2011.

c. Both parties may mutually agree to extend this agreement on an annual basis for each twelve-month period commencing on November 1 of each year after November 1, 2011, so that the amount of the retention incentive shall be 25% of Mr. Vegliante's basic salary in effect as of November 1 of the relevant year. Any such extension shall be in writing, and signed by both parties.

Note that his incentive is based on his basic salary in effect as of November 1 of each relevant year. In each of the last several NRLCA contracts, our salary increases have been based on the salary schedule in effect at the beginning of the contract.

Also note that the agreement is signed by the soon to be ex Postmaster General, John Potter.

Based on his Fiscal Year 2009 basic salary of $230,000, Vice President Vegliante’s retention incentive will be $57,500.

With this, 11/20/2010, offered to the National Rural Letter Carriers Association, which represents the mail carriers that deliver your mail in the rural areas of the country:


On Saturday, November 20, after more than two months of contract talks, the NRLCA and USPS reached impasse for a new collective bargaining agreement. Early this morning it appeared as if the parties were making significant progress toward a negotiated settlement. However, contract talks stalled and impasse was declared just after 5:00 p.m.

The Postal Service’s final proposals included wage freezes and significant benefit cuts for current career employees, including the abolishment of cost-of-living adjustments and a new salary schedule with a lower wage scale for new hires. The Postal Service also proposed to eliminate the parties’ no layoff clause for all but the most senior employees. Additionally, the Postal Service proposed substantial reductions to numerous time allowances in the parties’ evaluated compensation system.

The NRLCA’s final proposals provided for appropriate and reasonable wage increases, continued cost-of-living adjustments, and the maintenance of core benefits. The NRLCA advanced its own proposals to adjust certain time allowances in the evaluated compensation system and to increase the reimbursement that many rural letter carriers receive for providing a delivery vehicle on rural routes. Importantly, the Union made several proposals that would have resulted in substantial savings for the Postal Service.

The parties expect to meet soon to discuss the next steps.

We appreciate your support and patience as we continue to fight to improve the lives of the more than 100,000 rural letter carriers who deliver the mail to more than 40 million Americans across the country.

I should note here that in the last negotiated contract, which ran from November2006-November 2010, rural carriers received wage increases of 1.2%-1.5% per year from the salary in effect in September 2006. We also paid an additional 1% of our health insurance costs per year, which more than cancelled out our wage increases. And as for the COLA's...we haven't received any for some time now, nor would we have expected to with the economy the way it is.

The 'no lay off clause' has given us some measure of comfort, but if they succeed in eliminating that, all bets are off. The city carriers union at least protects people with 6 or more years in.. As to the time standards...the rural carriers are the only craft employees in the Postal Service that aren't paid an hourly wage. We work on an evaluated pay system, which assigns a certain time standard to our job functions. Sort of an antiquated piece work system that makes it possible for management to manipulate things during the 2 to 4 week period they "count" our mail, which determines our pay for the year. Every year, at mail count time, the USPS does what they can to try to balance the books on the backs of the rural carriers through this exploitable process. Rural carriers regularly face pay cuts year after year based on this mail count, while the remainder of the postal employees get their raises each year.


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