USPS OIG

OIG Recommends City Carrier Compensation Based on Time Standards

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compensationIn fiscal year (FY) 2013, the U.S. Postal Service paid $21.7 billion in carrier compensation — $15.5 billion for city carriers compared to $6.2 billion for rural carriers, according to a new report by the USPS Office of Inspector General (OIG) titled City Carrier Management and Compensation (PDF).

Based on the findings contained in the report, the OIG recommends the chief human resources officer and executive vice president develop a city carrier compensation system based on time standards for specific tasks completed by a city carrier, perhaps similar to how rural carriers are compensated. The OIG believes that such a system would reduce supervisory costs, grievance payments and administrative costs, while increasing overall efficiency and productivity. The OIG estimates that such changes could reduce compensation costs by at least $1.3 billion (in 2015).

USPS Management disagrees with the report, expressing concern about the estimates of monetary impact and noting that compensation systems for city and rural carriers can only be addressed through the collective bargaining process. Nevertheless, the OIG believes the large potential savings more than justifies pursuing a challenge through the bargaining process.

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