The Postal Reorganization Act of 1970 included the goal of matching postal employees’ compensation with that of private sector workers. The recently enacted Postal Accountability and Enhancement Act (PAEA) did not alter that goal. However, such a comparison is virtually impossible since private sector compensation varies considerably by locale, whereas postal compensation does not. It is also difficult to decide what constitutes a comparable job, and how benefits should be considered. Given the Postal Service’s financial situation and calls for down-sizing, the issues surrounding this policy take on special meaning. Over the course of the next two weeks, we’d like to ask you about this policy in general, its applicability in the diverse labor market across the country, and what changes might be in order to facilitate the financial situation and the level of service afforded the public.
So, first of all, as a general matter and notwithstanding current contracts, does it make sense to attempt to match private sector compensation? Does the goal in the 1970 legislation still make sense today?
How should Postal Service pay be set? If private-sector comparability is used, what types of jobs are comparable to postal work?
This blog is hosted by the OIG’s Risk Analysis Research Center (RARC).