Postal Service offers $15,000 buyouts to cut costs

[babylonsister]

Postal Service offers $15,000 buyouts to cut costs

By ANN SANNER
Associated Press Writer


WASHINGTON (AP) -- The Postal Service is offering $15,000 buyouts to employees in an effort to cut costs at a time when the post office is being buffeted by the recession and the popularity of e-mail and electronic bill payment.

Up to 30,000 employees could take the offer at a total cost of about $450 million, the agency said Tuesday. The post office said it could save as much as $500 million in the next two years.

The agency said it reached an agreement on the buyout offer with the American Postal Workers Union and the National Postal Mail Handlers Union.

The majority of those who could take the buyouts work in the mail processing facilities, the post office said.

The offer is open to those eligible for retirement and early retirement. It also includes employees in select positions, such as retail clerks, distributors and mail handlers who are willing to resign voluntarily.

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http://hosted.ap.org/dynamic/stories/U/US_POSTAL_BUYOUTS?SITE=CONGRA&SECTION=HOME&TEMPLATE=DEFAULT

[DJ13]

1. $15,000 would be what, about 3-4 months of pay for them?

Do they seriously think that pittance will convince people to quit a government job?

[imdjh]

3. Last I checked, post office starts at $11.41/hr

[imdjh]

4. Might get rid of addicts, alcoholics, and others on the edge.

[imdjh]

2. An interesting figure.

At first it seems a bit low. After all, who would give up a minimum $24K plus full bennies for a mere $15K?

When you think about it, it might do some serious weeding out without doing the harm that a higher buyout might do.

[Wickerman]

5. I imagine this will be framed as a "take this, you are on the bubble

It ain't much but if we fire you, and we most likely will, you'll get nothing."

If they offer it in addition to early retirement, you might get a lot to go out. I've a neighbor who has been waiting for something like this.

[tularetom]

6. The reason that the buyouts were offered to those at or near retirement age

So that anybody who takes one will either not be replaced or be replaced by a new employee at a much lower salary.

It amounts to an inducement for early retirement.

The problem with it is if you retire at, say, 55, you won't be eligible for medicare for 10 years. $15,000 won't even begin to pay your premiums for that length of time.

[alfredo]

7. But he/she will get full retirement benefits which is not too bad. He can

also keep his FEHB health insurance. Union benefits remain, and dues are lowered to $1 a month.

Benefits can and will increase with COLA.

[Kingofalldems]

8. Not true. Person will not get full retirement

[alfredo]

9. If they are fully vetted, they should get their full retirement. I was forced into

early retirement from the Post Office. I had twelve years of service, enough to qualify for the same benefits of a twenty year employee.

[Kingofalldems]

10. Not to be picky but 30yrs service and age 55 are

qualified for full retirement.

[alfredo]

11. I was mistaken by saying full retirement. At 12 years I was eligible for

the same benefits as a 20 year man. I became 100% disabled, and they put me out to stud instead of finding a desk job.