Management Salary Freeze

MANAGEMENT SALARY FREEZE

To help reduce costs, the Postal Service today announced it is freezing Postmaster, manager, administrative and supervisor pay for fiscal years 2011 and 2012. USPS also is changing its sick and annual leave earnings formulas for new hires in these positions.

Effective Jan. 14, 2012, individuals hired from outside the Postal Service as supervisory or managerial employees or as Postmasters will accrue annual and sick leave at different rates than current employees (see table below). The accrual rate for current employees in these positions — as well as current employees who are promoted to these categories in the future — will not change.

This action follows decisions made earlier this year, including an officer and executive pay freeze implemented in July. Last spring, the American Postal Workers Union, which represents 209,834 employees, agreed to a two-year pay freeze and other provisions that will save the Postal Service $3.8 billion over the term of the negotiated labor agreement.

Today’s announcement affects nearly 62,000 Executive and Administrative Schedule (EAS) category employees, including more than 44,000 represented by the Postal Service’s three management associations. The National Association of Postal Supervisors (NAPS) represents 23,385 supervisory and managerial employees. The National Association of Postmasters of the United States (NAPUS) and the National League of Postmasters of the United States (NLPM) represent 13,741 and 7,271 Postmasters, respectively.

Today’s announcement follows pay consultations with those associations. USPS consults with management associations on pay and benefit packages. Postal Service management employees do not have access to collective bargaining.

The wage freeze also applies to 17,439 additional EAS employees not represented by management associations.

Formula for Earning Sick and Annual Leave (calculated by years of service)

Note:  One pay period equals two weeks. There are 26 pay periods per year.