RE2EIVil;
BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON, D.C. 20268-0001
bEl;2%
‘57
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POSTAL RATE AND FEE CHANGES, 1997
Docket
No.
R97-1
THE DIRECT MARKETING ASSOCIATION'S
MOTION
TO COMPEL RESPONSE OF THE UNITED STATES
POSTAL SERVICE TO INTERROGATORY DM?'./USPS-11
(December
22, 1997)
Pursuant
to
Practice
and Special
Marketing
Association
Rate
Commission
respond
to
sections
Rule
of
hereby
compelling
("DMA")
of
2.B.,
requests
an order
United
Statement
of
25,
the
1997,
filed
documents
under
interrogatory
requested
information
comparing
wage rates
employees
and those
The study
is
were
from
paid
private
sector
whether
"the
align
for
wages
employees
December
10,
attached
in
reported
the
to
30 to
for
Rules
of
Direct
from
the
Postal
Postal
Service
to
the
Marketing
Rule
and request
for
of
2.E.
1).
Practice
This
concerning
between
sector
a recent
Postal
doing
"nonexempt
show that
higher
wages"
[was]
taking
employees
similar
Postal
any
with
work."
Service
filed
Postal
Service
Isimilar
polatal
than
The interrogatory
Service
performing
Direct
private
60 percent
nonexempt
1997,
the
Facts
as Exhibit
counterparts.
Postal
States
Special
(copy
study
the
an interrogatory
(DMA/USPS-11)
Service
of
DMA/USPS-11.
On November
production
and 25(d)
Practice
the
interrogatory
Association
21(a)
work.
employees
their
,further
actions
private
asked
to
better
sector
wages
DMA/USPS-11(c).
On
an o:bjection
to
- 2
this
interrogatory
arguing
were
that
(copy
comparable
"irrelevant"
respectfully
to
obtained
from
Commission
this
to
submits
calculated
attached
private
sector
the
issues
that
the
lead
to
the
Postal
compel
as Exhibit
in
the
this
case.
Postal
DMA
is
to
reasonably
can only
and requests
Service
late,
levels
sought
evidence,
Service,
one day
compensation
information
admissible
2),
be
that
provide
the
a response
to
interrogatory.
Arsument
The Postal
that
the
Postal
efficient
U.S.C.
extent
Service
is
labor
costs
a mechanism
costs
Creetinq
of
the
Card
and n.92
the
for
postal
Publishers
(D.C.
Cir.
.
statutory
Act
v.
U.S.
1979),
39
in
to
to
costs
to
to
control
Association
Service,
denied,
of
607 F.2d
444 U.S.
--
the
part,
better
National
Postal
cert.
rates".
and minimized
Service
&
and
operating
was enacted,
Postal
adequate
obligation
that
be reasonable
system.
requires
efficient
provide
requirement
the
Act")
and reasonable
this
the
("the
an economically
fair
in
Indeed,
possible.
provide
at
--
in
shall
Inherent
efficiently
Act
operate
services
5 403(a).
including
430
Postal
postal
operate
the
Service
"The
manner.
Reorganization
392.
1025
(1980).
The responsibility
as efficiently
rests
the
with
for
in
as possible,
Postal
Commission
Service
does
not
operating
compliance
management.
have
the
authority
the
Psostal
with
Section
Service
403(a),
DMA acknowledges
to
intrude
that
in
- 3 postal
management
Postal
Service,
sub
nom.
decisions.
663 F.2d
Nat.
Ass'n
Service,
462 U.S.
have
responsibility
the
the
of
of
estimates
of
the
costs
determine
if
the
revenue
Decision
the
requires,
in
factors,
such
that
are
other
the
turn,
and
are
Commission
relevant
figures)
in
necessary.
&g
reflects
other
Postal
programs,
the
R94-1
test
Dec.,
Service's
Service's
designed
year
to
save
process
that
cost
mix
of
are
actual
11 This section
provides
that
0 [plostal
be reasonable
and equitable
and sufficient
Postal
Service
under honest,
efficient,
management
to maintain
and continue
the
fr
services
. .
as
accurate
Id.
If
factors
or
interim
year
requirement
if
2023-27.
model
such
costs
change
adjustment,
evidence.
rollforward
programs,
by
This
rollforward
I(
to
and Recommended
revenue
at
on
which
year
supported
workyear
use
based
Service's
test
by sufficient
as the
Rec.
the
program
the
does
rates
assure
rollforward
supported
(such
in
The Postal
or
may adjust
data
utilized
the
level
aff'd
Commission
2021-22.
Commission
U.S.
Postal
Postal
Opinion
(1
U.S.
5 3621,"
in
is
at
the
cost
the
the
requirement
that
as the
evaluate
Dec."),
v.
39 U.S.C.
R94-1
v.
I981),
postal
be incurred
&
Rec.
utilized
as possible
not,
to
Pub.
recommending
Commission
evidence.
("R94-1
Card
in
Inc.
(2d Cir.
However,
requirement"
that
Newsweek,
1203-05
(1983).
requires
substantial
1186,
Greetins
810
"break-even
&g
as cost
and
in
this
case
reduction
increase
rates
and fees shall
to en.able the
and economical
developm'ent
of postal
or
- 4 efficiency.
&
Tayman
(USPS-T-9)
whether
such
Direct
the
Postal
programs
are
compare
them
wage
the
private
sector
the
reasonableness
component
productivity
of
and
sector
will
of
reasonableness
productivity
revenue
requirement.
DMA is
study
Service
levels
nor
should
be admitted
submit,
however,
Postal
lead
to
under
Practice
the
arguing
the
into
that
discovery
standards
25 and
26,
the
is
and the
negotiating
or
its
study
may
since
the
a
private
the
Commission
rollforward
resulting
test
year
factors
contained
in
for
factors
the
employee
data
used
salary
necessarily
:DMA does
case.
shed
important
light
testimony
and may
relevant
wage comparability
on
Therefore,
evidence.
evidence
study
in
Rules
and
the
the
by
this
requirement
admissible
determining
between
and
supporting
in
and
labor
from
Service's
the
Service
estimates
data
in
governing
in
similar
that
revenue
of
PostaIL
Comparison
evidence
the
the
to
sector.
costs.,
be substituted
study
private
Commission
Postal
future
relevant
by interveners
the
from
Service's
least
the
savings
evaluation
estimates
Service's
the
analyses
not
the
productivity
and
management
that
the
labor
should
Postal
the
postal
of
at
witness
To determine
Postal
between
levels
improve
program,
the
a productivity
wage
of
from
assist
related
Service
requested
data
Service
LR-H-10.
is
differentials
Postal
the
of
it
similar
of
Postal
estimates
reasonable,
will
of
LR-H-12;
therefore,
with
Contrasting
13-14;
Service's
and,
productivity
major
at
Testimony
of
- 5
related
information
requested
in
DMA/USPS-11
should
be
produced."/
Conclusion
For
that
II
the
the
Postal
be overruled
produce
the
foregoing
Service's
objection
and that
information
reasons,
the
Postal
DMA respectfully
to
interrogatory
Service
and documents
Respectfully
be directed
requests
DMA/USPSto
requested.
submitted,
David L. MeyerMichael
D. Bergman
COVINGTON & BURLING
1201 Pennsylvania
Avenue,
N.W.
P.O. Box 7566
Washington,
D.C. 2CO44
(202) 662-5296
Counsel
for the Direct
Marketing
Association,
Inc.
Dated:
December
22,
1997
21 During
hearing
before
the
the October
21, 1997 oral
Chairman
Gleiman
permitted
questioning
of Postal
Commission,
Service
objection
-Service
witness
Degen - over a Postal
concerning
productivity
figures
for the Postal
Service,
See Tr.
including
a comparison
to a private
sector
industry.
12/6647-6655.
- 6 -
CERTIFICATE
foregoing
I hereby
certify
document
in
Commissioner's
Rules
of
Rules
that
accordance
of
Practice,
OF SERVICE
I have
this
with
Section
as modified
date
served
12 of
by the
the
the
Special
Practice.
/&k~ LzqkpmL
Michael
Dated:
December
22,
1997
D. Bergman
EXHIBIT 1
BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON. D.C. 20268-0001
POSTAL PATE AND FEE CHANGES, 1997
p*;ECEIY'l!
CT, 2'j
3 57 P;l “?I
.'\,,..,
D&ktiiN~.
x;
R97-1
THE DIRECT MARKETING ASSOCIATION,
INC.'.9
INTERROGATORY AND
REQUEST FOR PRODUCTION OF DOCUMENTS TO THE UNITED STATES POSTAL
SERVICE PURSUANT TO SPECIAL RULE OF PRACTICE 2.R.
(DMA/USPS-11)
Pursuant
Practice,
Practice,
attached
the
United
to
and
the
Sections
Rule
Direct
2.E.
of
the
Marketing
interrogatory
States
25 and
and
Postal
26 of
Service
Commission's
Rules
of
Special
Rules
of
Commission's
Association,
request
the
for
Inc.
hereby
production
of
submits
documents
(DMA/USPS-11).
Respectfully
submitted,
l!i.&l I2/itvwL
Dana T. Acketilv
II.
Esa.
David L. MeyerMichael
D. Bergman
COVINGTON & BURLING
1201 Pennsylvania
Avenue,
20004
Washington,
D.C.
(202) 662-5296
Counsel
for the
Association,
November
25,
1997
Direct
Inc.
N.W.
Marketing
the
to
2
DMA/USPS-11.
Please
refer
to New Performance-Based
Compensation
System,
AMMA Bulletin,
No.
45-97
(Advertising
Mail
Marketing
Association,
Washington.
D.C.),
October
17, 1997, at 4 (Attachment
1) which
states,
"A postal
official
said that
in large
part,
this
determination
[that
nonexempt
employees
were
not
eligible
to
receive
bonuses
under a special
compensation
program]
was based on
the results
of a wage comparability
study
done recently
for
the
Postal
Service
in which the wages of postal
employees
were compared
to wages for employees
doing
similar
work in the private
sector.
The official
said
that
the
results
of the
study
showed
that
nonexempt
postal
employees
were paid from 30 to 60 percent
higher
wages
compared
to employees
doing
similar
work
in the private
sector."
a.
Please
confirm
that
a recent
study
of Postal
Service
wages for nonexempt
postal
employees
found
that
Postal
Service
nonexempt
wages were between
3C to 60 percent
higher
than private
sector
employees
performing
similar
If not confirmed,
please
explain
fully.
work.
b.
Please
summarize
the methodology
comparability
study
and provide
C.
IS the Postal
Service
taking
any actions
to better
wages for nonexempt
employees
with private
sector
for
employees
performing
similar
work?
If so,
If not,
why not?
describe
the actions.
CERTIFICATE
I
foregoing
hereby
certify
document
upon
proceeding
Postal
3 of
in
Rate
the
accordance
Commission's
Commission's
with
Rules
Special
I
have
this
participants
Rule
of
Rules
12
(section
Practice
of
25,
1997
date
of
served
record
Practice
3001.12)
in this
the
in
and Procedure
//Michael
November
align
wages
please
OF SERVICE
that
all
and results
of the wage
a copy of the study.
this
of
the
and Rule
proceeding.
Dv. Bergman
Attachment
1
OCTOBER
17. I997
EXHIBIT 2
BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON, D.C. 20266-0001
Docket No. R97-1
POSTAL RATE AND FEE CHANGES, 1997
OBJECTION OF UNITED STATES POSTAL SERVICE
TO INTERROGATORY
DMA/USPS-11
AND MOTION FOR LATE ACCEPTANCE THEREOF
The United States Postal Service hereby objects to interrogatory
filed on November
in addressing
25, 1997, and moves for late acceptance
this interrogatory
was caused by the temporary
DMAAJSPS-11,
of this objection.
Delay
absence of personnel
familiar with the matter requested therein.
The interrogatory
the compensation
compensation.
seeks information
of nonbargaining,
Such information
year costs are estimated
any anticipated
relating to, .and a copy of, a study comparing
nonexempt
postal employees
with private sector
has no relevance to the issues in this case.
based on actual Postal Service compensation
changes in those levels.
Private sector compensation
Test
levels and
levels and the
difference
between those and the Postal Service’s provide no useful information
evaluating
the costs estimated
in this proceeding.
Respectfully
submitted,
UNITED STATES POSTAL SERVICE
By its attorneys:
Daniel J. Foucheaux,
Scott L. Reiter
475 L’Enfant Plaza West, S.W.
Washington, D.C. 20266-7 137
(202) 268-2999; Fax -5402
December 10, 1997
Jr.
in
,,
CERTIFICATE
OF SERVlCE
I hereby certify that I have this day served the foregoing
participants
of record in this proceeding
in accordance
upon all
with section 12 of the Rules of
Practice
Scott L. Reiter
475 L’Enfant Plaza West, S.W.
Washington, D.C. 20260-I 137
(202) 268-2999; Fax -5402
December 10, 1997
document