Federal Manager's Daily Report

“This new law could not have come at a better time,” said postmaster general John E. Potter, adding that, “this law enables us to build on our successes.”

However, postal unions term the measure a bittersweet development. They have been involved in discussions over postal reform with postal officials, various members of Congress and large mailing interests for more than a decade. The resulting measure preserves their rights to bargain over pay and benefits—something rare in the federal government realm—but also represents some losses for them.

For example, the rate ceiling protects large mailers and helped get the bill through Congress but which unions say effectively create a ceiling on pay.

Unions also failed to block a provision that imposes a three-day delay for FECA workers compensation benefits when workers file a claim. They have said they will try to get that provision repealed.

USPS, with its huge labor force has for years has been trying to limit its exposure to workers comp claims and won this concession, but employees can have any personal leave they use during the wait period reinstated if the disability exceeds 14 days or is followed by permanent disability.