Pacific Area FY2011 Mid-Year Drew Aliperto, Vice President Pacific Area Operations

APWU Tentative Contract* Qtr III & IV Opportunity  Postal Support Employee (PSE)  Non-Career  Non-Traditional Full-Time (NTFT)  Career  Deliverables APWU Tentative Contract: Agenda *Ratification – May 11 th deadline 2

3 APWU Tentative Contract Postal Support Employee (PSE)

4  PSE General Parameters  Non-career bargaining employees  Replaces APWU Casuals  Current Casuals must be eliminated within 3 months of contract effective date  Replaces PMRs in Level 15, 16 & 18 Post Offices  Hired from non-career register  360 day term  At least a 5 day break in service required  Consider staggering hiring by pay period to ensure continuity of operations during break in service  No training or qualification restrictions  No scheduled work hour guarantees  2 hour minimum when scheduled & report to work APWU Tentative Contract: PSE

5  PSE General Parameters  No negotiation of PSE hourly rate at the local level GradeHourly Rate 3$ $ $ $ $ $15.85  PSE are paid Overtime when their work hours exceed 40 hours in a pay week  Overtime must be offered to the OTDL before the work is assigned to a PSE in excess of 8 hours in same work location. APWU Tentative Contract: PSE

6  PSE General Parameters  Holiday scheduling  Are scheduled to work holiday or designated holiday after FT volunteers are scheduled to work on their holiday/designated holiday and, to extent possible, prior to FT voluntary or in- voluntary off-day scheduling of career employees  Peak season scheduling will be critical – no exception to caps in 2011 and 2012  PSE complement plan must be included in Peak Season Planning – July 2011  Annual Leave  May earn as much as 4 hours per pay period  PSE may be included in leave percentages negotiated at local level APWU Tentative Contract: PSE

7 Postal Support Employee (PSE) - Caps  FN 1 Mail Processing  20% of career mail processing (F1) Clerk Craft employees within a District  FN 3A Transportation  10% of career in Motor Vehicle Service Craft employees within a District  FN 3B Maintenance  10% of career Maintenance Craft employees within a District  No more than 50% will work in Maintenance Capable offices  FN 4 Customer Services  Level 22 & above: 10% of career Fn 4 Retail Clerks (who work the window) within an Installation  Level 21 & below: 20% of career Fn 4 Retail Clerks (who work the window) within an Installation  Cap may be exceeded by additional in-sourcing

8 PSE Potential *Fn 4 Clerk: Lvl 22 & 10% Lvl 21 & 20% National PSE Lvl 6 rate = $14.60 Pacific Area Avg Casual rate = $13.24 Data source: Data Keeper

9 Postmaster Relief (PMR)  Postmaster Relief Positions are replaced with PSE positions in Levels 15,16 &18 Post Offices  PMR must be on a non-career hiring register for consideration of a PSE Assignment  Hold to earned hour limit. Saturdays only if necessary.  PMRs are not impacted in Level 13 and below Post Offices Tentative APWU Contract

10 Tentative APWU Contract District L-15,16 &18 (replace w/PSE) L-13 & below (PMR remain) BV14 HNL214 LA SAC9133 SD23 SF173 SNA1 SRC519 Total18276 PMR Current On-Rolls by Office Level: Data source for On-Rolls: WebCOINS Note: Some offices currently have more than one PMR PMR Hourly Rates (effective 1/15/11): PMR GradePO GradeMinimumMaximum A-E, 9-11A-E; EAS 11-13$9.45$ EAS 15-16$10.50$19.11 Pacific Area average PMR rate = $12.21

11 APWU Tentative Contract Non-Traditional Full-Time (NTFT)

12 Non-Traditional Full-Time (NTFT) General Parameters  New category of full-time career employee in Clerk and MVS crafts  Management discretion to post bid assignments from 30 to 48 hours per week  Assignments must be posted  Leverage site specific schedules to reduce non-productive time & OT usage  In Fn 1, no more than 50% of all bid assignments in the facility may be NTFT, unless agreed to in LMOUs  In Fn 4, the number of NTFT bid assignments is not limited  Up to 10% can be Flexible NTFT  Subject to Wednesday prior notification of schedule changes  Each installation is allowed a minimum of 1 & up to 10% for retail operations  Utilize to cover absences & vacancies Tentative APWU Contract: NTFT

13 NTFT General Parameters  In 200 manyear offices, bids must have consecutive days off  If the bid assignment has more than two days off, two of the days must be consecutive  No more than one hour lunch (Level 21 and above offices)  Can split shift (Level 20 and below offices)  If a unit does not establish an NTFT, up to 75% of the clerks may have splits days off  NTFT employees get -  FLSA overtime for hours in bid assignment over 40 in a week  Straight time for daily hours in bid assignment over 8  Out of schedule premium for hours worked outside of established schedule  3 rd break if schedule is more than 9 hours in a service day  Within 6 months of the signing of the contract, non-OTDL employees in offices that have NTFT assignments will not be mandated for overtime unless for an emergency Tentative APWU Contract: NTFT

14 APWU Tentative Contract FTR, PTR, PTF

15 FTR  Cannot be involuntarily reassigned to an NTFT position unless:  NTFT assignment is 40 to 44 hours per week  Has at least two days off per week  Each scheduled day is not less than 6 hours and no more than 10 hours.  May bid for NTFT assignments Tentative APWU Contract

16 PTF  Convert to NTFT in Level 21 & Level 22 Post Offices  Positions remain the same in Level 20 and below Post Offices PTR  Convert positions to NTFT  Assignment less than 30 hours (pending)  All NTFT rules apply Tentative APWU Contract

17 APWU PTR & PTF On-Rolls Data source: Data Keeper

18 ‘Bargaining Unit Work’  Level 18 Post Offices  Postmasters involvement cannot exceed 15 hours per week of craft work  Level 15 and 16 Post Offices  Postmasters involvement cannot exceed 25 hours per week of craft work  The CSV and SOV models have the evaluations for each of these offices Tentative APWU Contract

19 Pool Clerks  The MOU has been modified to allow clerks to be used across installations.  This is determined locally and more information will be made available later. Tentative APWU Contract

20 Lead Clerk PS-7  USPS has one year to establish position description and training program  Expedite this process to facilitate reduction of 204-B hours & EAS extra straight time  Complement minimums required but no restrictions on usage above minimums  204Bs will be eliminated from offices with supervisors, except to fill absences or vacancies of more than 14 days Tentative APWU Contract

ComplementFTR NTFT hrs PTFPSEPMR Fn1 20% Fn3A 10% Fn3B 10% District CS 20% L-22 & Above (Retail Allocation) 10% L-21 (Retail Allocation) 20% L-20 & Below (Retail Allocation) 20% L-13 & Below (Retail Allocation) 20% 21 Tentative APWU Contract: Summary

22 APWU Tentative Contract Deliverables

23 Implementation Steps Now to Ratification Qtr 3 – Qtr 4 FY 12 & Beyond Plant Operations  Review Baseline/Zero Base/eWHEP (4/19)  Determine Complement  Develop Schedules  Area send up District PSE allocations (4/25)  ID candidates for PSE positions (5/6)  Announce eCareer Posting (5/17)  Process background checks (6/10)  Perform interviews/selections (6/17)  Drug screening (6/24)  eMap – medical (6/29)  Review w/Local APWU  Hire/Train PSEs  Post NTFTs  New employee orientation (7/8)  Complete training of PSEs (7/15)  Separate APWU Casuals (7/15)  Separate Lvl 15, 16, & 18 office PMRs (7/15)  Leverage PSEs to reduce OT  Eliminate OT through scheduling  Replace continued attrition w/additional PSEs up to cap levels in lieu of OT  Improve Performance  Capture Workhours  Create Opportunities Customer Services  Review Units w/OT & MAPs / 1994s (4/19)  Determine Complement  Develop Schedules  Area send up District PSE allocations (4/25)  ID candidates for PSE positions (5/6)

24 APWU Tentative Contract District Deliverable Recap: Submit PSE Hiring Plan to Area – NLT 12noon, April 19  Identify OT reduction, temporary unavailability, workload peaks and valleys  Review current casual and PMR usage and assess continuing need  Identify PSE use by facility, function and craft  Validate affordability

FY2011 – Pacific Area LDC 17 Reduction Targets Two Districts Exceeding Workhour Reduction Targets at Mid Year: San Francisco & San Diego  LDC 17 YTD Workhour – Mid Year Snap Shot  Reduction to SPLY:  -10.% as of wk 26  426,636 Workhours Reduced  FY Goal:  -13.5%  1,092,723 Workhours  546,362 Workhour

District Projections FY2011 City Route Reduction Plan JARAP 2011 FSS City COR271Total PA Proj. Los Angeles Sierra Coastal San Diego Santa Ana San Francisco Bay-Valley Sacramento Honolulu Pacific Area

Pac Area MDPS’ City Route Reductions

F4 Business Plan DistrictOverstaffingUnearned daily discretionary hrs above overstaffing # Level Two Reviews Scheduled Level Two Review Completion Rate LA138(12)34100% SC164(96)4448% SD % SA203(451)3250% SF % BV % SAC139(83)7063% HON57(199)2143% Area1054(353)40960%