US Postal Service 2012 Annual Report Download - page 9

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2012 Report on Form 10-K United States Postal Service- 8 -
RESEARCH AND DEVELOPMENT
We operate a research and development facility in Virginia for design, development, and testing of postal equipment and
operating systems, and also contract with independent suppliers to conduct research activities. While research and
development activities are important to our business, these expenditures are not material.
ENVIRONMENTAL MATTERS
We are not aware of any federal, state, or local environmental laws or regulations that would materially affect our financial
results or competitive position, or result in material capital expenditures. However, the effect of possible future
environmental legislation or regulations on operations cannot be predicted. Any new laws or regulations that regulate
greenhouse gas emissions into the environment may increase our operating costs. The costs that we believe may
increase as a result of any new environmental laws or regulations could include: diesel fuel, unleaded gasoline, the cost of
retrofitting existing vehicles, and other petroleum-related products.
EMPLOYEES
At September 30, 2012, we had approximately 528,000 career employees and 101,000 non-career employees,
substantially all of whom reside in the U.S.
More than 85% of career employees are covered by collective bargaining agreements. The labor force is primarily
represented by the American Postal Workers Union (APWU), National Association of Letter Carriers (NALC), National
Postal Mail Handlers Union (NPMHU), and National Rural Letter Carriers’ Association (NRLCA). The current contract with
the APWU became effective May 23, 2011, and extends through May 20, 2015. An Interest Arbitration Award was issued
on July 3, 2012, resulting in a new NRLCA contract. The term of the contract is November 10, 2010 through May 20,
2015. The NALC and NPMHU contracts expired on November 20, 2011. We reached an impasse in negotiations with the
NALC and the NPMHU, as agreements with both unions were not reached during negotiations. Impasses in collective
bargaining negotiations may ultimately be resolved through arbitration. We are proceeding with interest arbitration with
both unions, having commenced this process in August 2012.
By law, the Postal Service must consult with management organizations representing most of the employees not covered
by collective bargaining agreements. These consultations provide non-bargaining unit employees in the field with an
opportunity to participate directly in the planning, development, and implementation of certain programs and policies that
affect them. We recently completed the consultation processes with the National Association of Postal Supervisors
(NAPS), representing supervisory and managerial employees, and with the National Association of Postmasters of the
United States (NAPUS) and the National League of Postmasters of the United States (NLPM), representing postmasters.
The Postal Service participates in federal employee benefit programs as provided by statute for retirement, health, and
workers’ compensation benefits.