Nationwide Wage Uniformity Part 2

Source: BLS Metropolitan Area Wage Estimates May 2008
(Occupation Codes: 25-2031, 43-5052, and 47-2061)

Thanks for the great response to last week's blog. Last week, we asked about pay comparability, and 23 percent of those polled voted that the goal for postal compensation should be to match the prevailing private sector compensation. However, 35 percent voted that Postal Service compensation should exceed private sector pay, and the largest group of voters (40 percent) said that Postal Service pay should be set at levels necessary to get good, qualified employees.

 

Nationwide Wage Uniformity

The Postal Reorganization Act of 1970 included the goal of matching postal employees’ compensation with that of private sector workers. The recently enacted Postal Accountability and Enhancement Act (PAEA) did not alter that goal. However, such a comparison is virtually impossible since private sector compensation varies considerably by locale, whereas postal compensation does not. It is also difficult to decide what constitutes a comparable job, and how benefits should be considered.

 

Periodicals

Since the earliest days of the Post Office there has been a public policy goal of promoting the dissemination of information throughout the country. This goal was also part of all 14 of the rate cases conducted under the Postal Reorganization Act. By law, rates had to consider “the educational, cultural, scientific, and informational value to the recipient of mail matter.” This provision generally tempered the increases for Periodicals, or at least kept the “institutional cost burden” for Periodicals to a minimum.

 

How Should the Postal Service Sell Its Products?

The Postal Service has a long and proud history in public service. It has always been viewed as part of the federal government, yet has also been told to “act like a business” and to be self-sufficient. These distinctions can lead to interesting real-world implications, such as the degree to which retail associates should “upsell” or otherwise assist customers as they transact postal business. On one extreme, some claim that retail associates should do everything to find the lowest price for the customer.

 

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