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

2. 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. 3 APWU Tentative Contract Postal Support Employee (PSE)

4. 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. 5  PSE General Parameters  No negotiation of PSE hourly rate at the local level GradeHourly Rate 3$12.00 4$12.38 5$13.74 6$14.60 7$15.52 8$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. 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. 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. 8 PSE Potential *Fn 4 Clerk: Lvl 22 & above @ 10% Lvl 21 & below @ 20% National PSE Lvl 6 rate = $14.60 Pacific Area Avg Casual rate = $13.24 Data source: Data Keeper

9. 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. 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$16.80 13-14EAS 15-16$10.50$19.11 Pacific Area average PMR rate = $12.21

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

12. 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. 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. 14 APWU Tentative Contract FTR, PTR, PTF

15. 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. 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. 17 APWU PTR & PTF On-Rolls Data source: Data Keeper

18. 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. 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. 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

21. ComplementFTR NTFT 30-48 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. 22 APWU Tentative Contract Deliverables

23. 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. 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

25. 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

26. District Projections FY2011 City Route Reduction Plan JARAP 2011 FSS City COR271Total PA Proj. Los Angeles 2113800159202 Sierra Coastal 012700 247 San Diego 1020000210276 Santa Ana 4013600176292 San Francisco 2180029144 Bay-Valley 025000 316 Sacramento 24400064131 Honolulu 0000023 Pacific Area 1168990010151631

27. Pac Area MDPS’ City Route Reductions

28. F4 Business Plan DistrictOverstaffingUnearned daily discretionary hrs above overstaffing # Level Two Reviews Scheduled Level Two Review Completion Rate LA138(12)34100% SC164(96)4448% SD1203457686% SA203(451)3250% SF125969319% BV1084739100% SAC139(83)7063% HON57(199)2143% Area1054(353)40960%