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Mr. McCloskey: It is my understanding that Total Factor Productivity (TFP) is down this year for the Postal Service. Can you comment on what has occurred?

Mr. Coughlin: With the lingering effects of the economic
recession and the Fiscal Year 1991 postage rate increases
depressing volume and workload growth, Total Factor
Productivity (TFP) declined by 2.8 percent in the first
two quarters of the year respectively. However, with the
economy starting to recover, volume and workload grew in
quarter three, producing an increase in TFP of 1.4 percent.

Future increases in TFP are greatly dependent upon the
extent that economic recovery generates mail volume growth.
Nonetheless, productivity progress is continuing in the
automation area as reflected by the 8.6 percent increase
in the Distribution Productivity Indicator since accounting
period 13 of Fiscal Year 1990.

Mr. McCloskey: With automated equipment being deployed throughout the U.S., the Postal Service is having to build larger facilities to handle area mail processing functions. This requires the purchase of larger tracts of land and thus can impact a community negatively in the short term due to property being taken off the tax rolls. Do you believe that this is good public policy for the Service to do this without any kind of accommodation to the local government?

Mr. Coughlin: Federal entities by law and by tradition do not pay local real estate taxes on property they own. Although we remain sensitive to local communities for forgone tax revenue, it is often mitigated by postal improvements to the local infrastructure, local postal contracts for services and products, and service fees paid by the Postal Service. In addition, postal improvements to the property and heightened service often generate increased land values and new business ventures in the surrounding community.


Mr. McCloskey: A number of postal managers recently attended
the Postal Forum in Las Vegas, Nevada. I realize that the cost
to send these managers may be small compared to the overall
finances of the Postal Service. However, on April 29, less
than a month before the Postal forum, you advised Committee
staff that headquarters would save $175 million this year and
operate on a freeze basis in order to break even by the end of

1992. The field has been asked to absorb another $175 million in savings this year. What type of message does this send to the field about budgetary problems when postal management approves travel to Las Vegas for managers who were not vital to the success of the Forum?

Mr. Coughlin: The National Postal Forum is an excellent vehicle for vendors, customers and postal managers to meet, hold discussions and share ideas on common problems, view the vendors' display of new mailing industry equipment and promote the Postal Services' products and services.

Participation of postal managers is critical to the process of this business meeting: Conducting business sessions, workshops, manning the postal exhibits and consultation centers, as well as serving a supporting role




Mr. Hayes: I would appreciate your response to the following questions concerning EEO in the Postal Service:


How many complaints were filed in each of the last three years?

b. How many cases were forwarded to the Executive Director of EEO at USPS Headquarters or to the Regional Postmaster General? How many (and what percentage) of those were accepted?

C. Were counselors/investigators assigned within the required period of time in each case?









What were the main reasons given by the Postal Service
for rejection of individual claims?

How many full time EEO counselors and investigators does
USPS employ?

How many part-time?

How many EEO cases has the USPS lost? Are there particular regions or postmasters with heavy caseloads?

What discipline to managers has been issued as the result of EEO cases? Have managers been dismissed from employment?

Are there cases of delayed process? How long does the average case take?

Ho many cases (and what percentage) in the past three
years have been either appealed to the Office of Federal
Operations or brought to a U.S. District Court? What
percentage of the findings have been in favor of the

What is the average length of time for those cases before a final decision?

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b. EEO cases are processed at either the Headquarters level by the Executive Director or at the field division level. In view of this, the figures below are for the Executive Director.





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There is no required time from for an EEO Counselor/ Investigator to be assigned to handle a formal complaint. However, the standard practice in the Postal Service has been to assign an EEO Counselor/Investigator as quickly as possible so that the investigation and informal adjustment/proposed disposition can be completed within 180 days of the date the formal complaint was filed.

The principal reasons for rejection were, in order of frequency, that (1) the claim of discrimination was untimely filed; (2) the claim was outside the purview of the EEOC's regulations; and, (3) the claim was identical to a claim that had been previously filed.

The Postal Service utilizes a combined EEO Counselor/
Investigator position. There are currently 277 full-time
EEO Counselor/Investigators.

There are currently 155 part-time EEO Counselor/




In the past three fiscal years, the Postal Service has adopted 116 recommended findings of discrimination issued by EEOC Administrative Judges. These are not necessarily regarded as losses, since the hearing and recommended finding are part of the agency's investigative process.

The regions with the heaviest caseloads over this period were the Eastern and Southern Regions.

We do not maintain records on disciplinary action taken as a result of EEO cases in a central location or in a data file. However, managers have received disciplinary action as a result of discriminatory acts, ranging from letters of warning to removal.

Some cases are delayed; however, the Postal Service
generally processes formal complaints in a more
expeditious manner than most agencies.

The following compares the Postal Service with the agency-wide averages as reported by the EEOC.

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j. The following are decisions issued by the EEOC's Office of Federal Operations and the U.S. District Courts over the past three fiscal years.

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