January 20

Unions angered by Postal Service's Staples outlets

By SAM HANANEL The Associated Press

WASHINGTON — The opening of Postal Service retail centers in dozens of Staples stores around the country is being met with threats of protests and boycotts by the agency's unions.

click image to enlarge

The opening of Postal Service retail centers in dozens of Staples stores around the country – like this one in Miami – is being met with threats of protests and boycotts by the agency's unions.

AP

The new outlets are staffed by Staples employees, not postal workers, and labor officials say that move replaces well-paying union jobs with low-wage, nonunion workers.

"It's a direct assault on our jobs and on public postal services," said Mark Dimondstein, president of the 200,000-member American Postal Workers Union.

The dispute comes as the financially struggling Postal Service continues to form partnerships with private companies, and looks to cut costs and boost revenues. The deal with Staples began as a pilot program in November at 84 stores in California, Georgia, Massachusetts and Pennsylvania as a way make it easier for customers to buy stamps, send packages or use Priority and certified mail.

Postmaster General Patrick Donahoe said the program has nothing to do with privatization and everything to do with customer service and driving up demand for the agency's products.

"The privatization discussion is a ruse," Donahoe said in an interview. "We have no interest in privatizing the Postal Service. We are looking to grow our business to provide customer convenience to postal products."

Staples spokeswoman Carrie McElwee referred questions about union concerns to the Postal Service. She said the company "continually tests new products and services to better meet the needs of our customers."

Union leaders fear that if the Staples program is successful, the Postal Service will want to expand it to more than 1,500 of the company's other stores. That could siphon work and customers away from nearby brick-and-mortar post offices, taking jobs from postal workers and even leading traditional post offices to close.

Union leaders have been visiting Staples stores to meet with managers, asking them to share the union's displeasure with upper management.

Dimondstein asked to meet with the Staples CEO Ronald Sargent, who has declined.

The union plans to hold "sustained" protests this month at Staples stores in the San Francisco and San Jose, Calif., area that would be expanded elsewhere. Union officials also are considering how they can exert pressure on Staples shareholders.

"If Staples insists on continuing to refuse to staff those stores with postal workers, we're going to urge people to take their business elsewhere," Dimondstein said.

The union says it's not asking to shut down the program. It wants the counters to be run by postal employees, not workers hired by Staples. The average postal clerk earns about $25 an hour, according to the union, plus a generous package of health and retirement benefits. The Staples post office counters are run by nonunion workers often making little more than the minimum wage.

The Postal Service increasingly has looked to work with the private sector to help increase business. In November, it announced a lucrative deal with Amazon to begin package delivery on Sunday.

The agency has struggled for years with declining mail volume, but the lion's share of its financial plight stems from a 2006 congressional requirement that it make annual $5.6 billion payments to cover expected health care costs for future retirees. It has defaulted on three of those payments. The Postal Service lost $5 billion over the past year, though operating revenue rose 1.2 percent.

So far, the Postal Service has rebuffed the union's demands.

(Continued on page 2)

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