US Postal Service 2014 Annual Report Download - page 25

Download and view the complete annual report

Please find page 25 of the 2014 US Postal Service annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 90

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90

2014 Report on Form 10-K United States Postal Service 21
The following graph details the decline in the number of our career employees and the decline in total work hours (career and
non-career) since 2002:
Work Hours
Work hours are an important factor of compensation expense. As illustrated in the chart above, since 2002, work hour
reductions have been the single largest contributor to the ongoing achievement of savings targets. Over that period of time, we
have eliminated approximately 420 million work hours, or 27.5%, yielding over $17 billion in annual savings.
Influencing work hours are growth in the number of delivery points and the variations in products and services sold. The
number of delivery points increased by approximately 972,000 in 2014 and 774,000 in 2013, although the rate of increase is still
below pre-recession levels. The growth in our Shipping and Packages volume, 15% since 2012, places additional upward
pressure on work hours, due to the more labor intensive activity of handling and delivering packages. Despite both an increase
in delivery points and package volume, total work hours continued to decrease in 2014 and 2013.
Collective Bargaining Agreements
Approximately 89% of career employees are covered by collective bargaining agreements. The contracts with the four labor
unions representing the majority of our employees include provisions granting annual increases and COLAs, which are linked
to the CPI-W. In 2014, all major bargaining units received general wage increases of 1.0% or 1.5% and COLA adjustments.
Employees represented by the APWU and NRLCA received a 1.5% general wage increase and 2014 COLAs. Employees
represented by the NALC and NPMHU received a 1.0% general wage increase, 2014 COLAs, and COLAs deferred from 2013.
Employees represented by the NALC and NPMHU received neither a COLA or general wage increase in 2013, although the
2013 COLA was earned and deferred until 2014.
Non-bargaining unit employee salary rates were frozen in 2012 and 2013. Most non-bargaining employees received a 1% pay
increase in Calendar Year 2014. These employees did not receive COLAs or locality pay.
Separation Incentives
We have periodically offered targeted separation incentives to employees who agreed to retire or resign within a specified time
period. These separation incentives encourage attrition and help us to reduce our career complement to better match workload
and reduce costs. Since 2012, these incentives have targeted postmasters, clerks, mail handlers and administrative employees.
753 729 707 705 696 685 663
623
584 557 528 491 488
1,527
1,474 1,452 1,463 1,459 1,423
1,373
1,258
1,183 1,149 1,122 1,110 1,107
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Career Employees and Total Work Hours
Career Employees (in thousands) Total Work Hours (in millions)