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3.

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What will happen to the remaining MSCs?

ANSWER: The 140 remaining (non-Division) Management
Sectional Centers will report through the Divisions.

4. What precisely does this mean in terms of facilities? Will the remaining facilities be abandoned?

ANSWER: The restructuring of the Postal Service field organization will have no impact on postal facilities. No facilities will be abandoned. At the most, some space in certain facilities may become surplus.

5.

How will this affect employees in these centers? Will they be relocated? Will they be downgraded? Will they receive a reduction in pay?

ANSWER: No employees will be removed from the payroll
as a result of the field reorganization, nor will any
employee suffer a reduction in pay. There will be
some dislocation. However, all qualified employees
will receive fair consideration for the new positions,
and all employees will retain their grade and salary.

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6.

How many employees do you expect will be transferred?
How much will the Postal Service spend in relocation
costs?

ANSWER: It is possible that as many as 1500 employees
could be relocated. At an average cost of $30,000.
per employee, that could cost the Postal Service
approximately $50,000.000.

7.

How many people will be terminated outright?

ANSWER: No employee will be terminated outright as a result of the restructuring of the Postal Service field organization.

8. What is the status of your request to the Office of Personnel Management for early outs for affected employees?

ANSWER: The Postal Service has not requested the authority to offer "early out" retirement benefits from the Office of Personnel Management. Employees affected by the field reorganization who could take advantage of an "early out" retirement are already eligible under normal "discontinued service" retirement guidelines established by the Office of Personnel Management.

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9.

Under the leadership of former Postmaster General Paul
Carlin, a similar request was denied.
Should your
request be denied, what effect will it have on these
employees?

ANSWER: As stated in the response to question 8 above, the Postal Service has made no such request to the Office of Personnel Management.

10. How are the regional staffs being aligned to reflect increased responsibility?

ANSWER:

Regional staffs will be reduced as operating and administrative functions are transferred to the

Divisions.

11. Under the field reorganization, it appears that managers will be given much responsibility for independent decision-making at the local level. What steps will be taken to aid supervisory personnel in this transition? Will there be a new orientation in the management training program? Will current managers be required to undergo re-training in accordance with their new

responsibilities?

ANSWER: The individuals selected to be Division
managers represent the best managerial talent in the
Postal Service and each of these individuals has a
successful record of training and developing his or
her subordinate management and supervisory personnel.
To further assist them in this area, each Division
manager will be given the support of the full range of
highly qualified functional staff. Additionally,
Division managers will have access to the coaching and
counseling talents of the Regional Postmasters General
and the Regional staffs.

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12. How will the newly decentralized organization be overseen to detect poor management?

ANSWER: Management performance will be monitored by the Regions through the use of management information reports, performance analyses, and on-site visits.

13. Will there be a change in the ratio of supervisory
personnel to non-supervisory personnel?
mean that some people will be downgraded?

If so, does this

ANSWER: The ratio of supervisory to non-supervisory personnel will increase slightly. As previously stated, all employees will retain their grade and salary.

14. For what support services will the 80 management units be responsible?

ANSWER:

The divisions will be responsible for a large portion of those services formerly provided by the transportation management offices (TMO's), the Building Maintenance Engineering Offices (BMEO's) and the procurement services offices (PSOS).

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15. Which headquarters functional groups are being revised?

ANSWER:
marketing function which has been elevated to the
Senior Assistant Postmaster General level and which
will include the public and employee communication
function. In brief, Postal Service headquarters
Groups and Departments are now aligned as follows:
the Operating Support Group and the five Regional
Postmasters General are under the direction of the
Deputy Postmaster General. The Associate Postmaster
General has four groups reporting to him: Marketing
and Communications, Facilities and Supply, Employee
and Labor Relations, and Management Information and
Research Technology. The Deputy Postmaster General,
the Associate Postmaster General, the Finance and
Planning Group, the Chief Postal Inspector, and the
Office of General Counsel, report directly to the
Postmaster General.

The principal revision has been in the

16. In the March 17th edition of the Federal Times, Mr. McKean (Chairman of the Board of Governors) referred to the pay increases during the last round of contract negotiations as "inflationary and unjustified. "Is the team that is currently in place examining salaries and putting together information for next year's bargaining sessions? And is this the premise on which your team is operating?

ANSWER: The team involved in the Postal Service Headquarters and field restructuring is not the same team that will be involved in next year's collective bargaining negotiations.

Headquarters Reorganization

Mr. Casey, on March 5th and 6th you announced top management changes at Postal Service headquarters. For the record, could you please share with the Subcommittee the changes you have recommended:

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