
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).




Regional pay is working in other government employees wages and salaries, including our own Military and National Guard. It is about time to pull the Post Office in also.
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Yes you are all right the post office should match all the wages of an entity that does exactly what they do, the paper boy, and the garbage man, they are both also into garbage distributation except the garbage man is in the collections, deliver junk, pick up junk i dont get it. buy more equipment to process the trash perhaps a compactor and eliminate the middle man
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Other federal agency’s recieve locality pay while the USPS does not. That additional money makes a big difference in your pay. I have never understood why the USPS does not offer this to there employee’s. Can anyone help me to understand why?
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Since Congress and the President seem to want to charge postal employees a higher percentage for health benefits and life insurance “just like all the other federal agencies” then we should be paid General Schedule “just like all the other federal agencies” and we should get locality pay, yearly raises, COLAs, and MetroChek “just like all the other federal agencies.” Since we are all aware of the number of postal employees moving over to OIG (and other agencies) and nobody at all moving from OIG (and other agencies) to USPS, it is clear that there is general agreement with my point within both USPS and OIG.
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Carrier Pay should be in the ball park of UPS.
General blue collar labor for Mail Handlers and Custodians is really high for my area of the country.
Clerks seem high too.
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Postal carrier jobs are comparable with those at FEDEX and UPS as they are similar in nature., thus the pay scale should be similar. Mail processing and mail handler work is less strenuous and it is somewhat difficult to associate a similar job to determine a comparable wage. Administrative jobs should be fairly easy to compare with those at the GS level and pay should be comparable. However, in all cases, area wages should be included.
Area wages should be determined by “buying power” rather than by just a dollar figure. As an example, if it takes 50k a year for postal employees in the mid-West to live in a 3 bedroom house, buy a new car every 5 or 6 years, and take his family on a decent vacation every two years, than that should be their salary. If achieving the same lifestyle in California or New York equates to 80k a year, than that should be the salary in those states.
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I agree your opinion!
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as a postal employee for many years it would be unfair to anyone to try and change the way the postal employees are compensated for their work. every American had the opportunity to take a civil service test, many did but did not score well enough to get into the postal service. When i took the test and passed high enough to get in, would i have taken the job if i knew down the line my salary would be impacted to match private sector jobs? I could have merely taken a fireman or police test and gotten in.
i live in a high cost of living state so my postal salary is not as great as some may think, if it wasn’t for another job and another income i would not be able to afford to live in the state.
i feel bad for many people that are out of work or have low paying jobs, but is that the fault of the postal employee?
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AFTER OVER 30 YEARS IN THE PO AS A CARRIER, MY ARGUEMENT WENT ON DEFT EARS,WE NEED AN AREA COST OF LIVING LIKE UPS FOR WAGES, NOT THE SAME PAY THROUGHOUT THE COUNTRY.
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OIG,
Until you been there, done that, why do you put your nose were it doesn’t belong?
Besides, management runs the show (and you see how a wonderful job there doing taking care of themselves) and beating up the customer services I hope, not just suck off top of the revenue’s, then want to lay-off the workers!
First you have to have people whom know and want to make money, understand transportations, and what vehicles you need vs. some slick salesmen (Telling you what to buy)!
Coming down to the trenches would be a GREAT start and ask the workers, and not by bias employee surveys!
You might not like what you hear….. but you might learn also and get (1) good idea, but I doubt it?
Until you get a PMG like Ross Perot, and dump the board of governors, it will keep going down hill.
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Comparable pay should be the norm. Or you will end up with inferior employees. There clearly should be locality pay.
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Those on IOD should not be allowed to work overtime. After all they need all the healing time possible.
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Just as I thought. The posting of comments on this board are screened, and those not liked although appropriate are removed. Let’s see how long this one stays. I posted earlier (it disappeared/was removed), that since the employee opinion survey information was used by postal management in past contract negotiations it seems the OIG is now being used as a tool for management to gain more information. Lets be honest: 1st people knew the wage base when they made their decisions to hire in. 2nd If there is locality pay then Postal Service should continue paying the same rates with future raises however those in higher cost of living areas should be paid more!
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ups pay is considerably higher than usps. just thought i’d say something as i saw it on here a couple of times. like ups the usps has a tiered wage system.
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As a career city carrier of 25 years, I train all the new carriers that come to our office. All of them say the same thing: “WOW, mail delivery LOOKS EASIER than it really is!!!!”
I challenge ANYONE who questions the pay that we receive to TRY IT.
We have had two adjustments so far this year, and another is coming in October. We have had routes grow from 400 deliveries to 600 deliveries in an 8 hour day due to a reduction in volume.
RRCARRIER, we also feel you pain, and understand, we city carriers are going through what you are going through.
Everyone, no matter where you work are going through tough times and until the U.S. Government realizes that you cannot keep the status quo, I.E., raising taxes, and more government spending, thing are only going to get worse.
Everyone, VOL. II, please stop the in-fighting and focus on where most of our problem are coming from:
GOVERNMENT IS WAY TO BIG,AND WAY OUT OF CONTROL!!!
It started with Bush 41, and Clinton/Bush 43/Obama are all guilty of carrying the torch on and on.
VOTE VOTE VOTE!!! Do not forget what we are going through right now. Do whatever you have to do to remember how you feel right now, and VOTE in Nov. of 2010.
The only place that an increase in un-employment is a good thing is in Washington D.C.!!!
Godspeed everyone and God bless the USA!!!!!!!!!
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Postal workers are overpaid paperboys. American public is finally figuring that out.
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Wage uniformity. Funny how we try to copy communist countries!
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pay should not be associated with location. we are free to live and work where we please. if there needs to be a change in pay structure it whould be based on productivity and work standards (which the unions oppose)
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In response to Mark referring to Postal Carriers as “overpaid paperboys”, I ask him to consider the differences between the two. I’ve been both a paperboy and now a Postal Carrier (Rural Carrier). As a paperboy, you only have one type of piece to deliver, must both collect funds and pay for their papers they deliver. But keep in mind, it’s only one piece and doesn’t need to worry about address labels or names when making deliveries. The mail carrier has multiple types of mail pieces to deliver (letters, flats or magazines, small and large parcels in many different shapes and sizes), must consider names, locations, handle accountable mail with scanning issues (insured, signature confirmations, registered, and international delivery confirmations, etc.), adhere to postal delivery regulations, safety and security procedures, and do all that in all types of weather conditions. Shall I go on? Mail carriers equal to glorified paperboys….I don’t think so.
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The question is irrelevant. Postal Employees work under a collective bargaining agreement. Their salaries are negotiated and if no agreement is reached than binding arbitration comes into play. At the arbitration, both parties present evidence to support their positions concerning salary rates, benefits, etc. The arbitrator’s decision is based on his/her interpretaion of this evidence which includes data of wages in the private sector as presented by both parties. I consider it highly illogical and irresponsible to base wages and benefits on public opinion. Do you think doctors should make as much? What about lawyers? Politicians in general, etc? We already have a fair and practical process to determine postal wages. I think it should remain this way.
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