The Employee and Labor Relations Manual (ELM), Subchapter 420, Wage Administration Policy for Bargaining Unit Employees, is revised in 422.125, Reductions in Grade, to modify a policy change that became effective on June 10, 2006.
This policy change, effective immediately, applies to the step and next step date to be assigned to nonbargaining unit employees when they receive a reduction in grade to a bargaining unit position. The reductions in grade include voluntary changes to a lower level, management-initiated changes to a lower level, and demotions.
The policy that became effective on June 10, 2006, was intended to simplify the salary determination rules used to process bargaining unit voluntary reductions in grade by “slotting” the existing salary to the new lower grade. However, for nonbargaining unit to bargaining unit downgrades, which are subject to the rules of the assigned bargaining unit, the policy change sometimes led to their being “slotted” to the top step of their new bargaining pay grade without regard to previous time served in the rate schedule or total years of service.
The revised policy set forth here will require determination of a hypothetical step for a nonbargaining unit employee downgraded to a bargaining unit position as if the employee had continued with uninterrupted service in the Rate Schedule Code (RSC) and level occupied on the effective date of his or her promotion to the nonbargaining unit position. This hypothetical step will be then be used to determine the proper level and step for the newly assigned position using the appropriate reduction in grade, promotion, or reassignment policies in ELM 420.
Employee and Labor Relations Manual (ELM)
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4 Pay Administration
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420 Wage Administration Policy for Bargaining Unit Employees
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422 Salary Schedules Covered by Specific Agreements
422.1 Postal Service and Mail Equipment Shops/Material Distribution Center Salary Schedules
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422.12 Change Action Pay Rules
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422.125 Reductions in Grade
[Revise 422.125 as follows:]
The following provisions apply:
a. General. Reductions in grade include voluntary changes to a lower level, management-initiated changes to a lower level, and demotions.
b. Step and Next Step Date Assignment for Bargaining Unit to Bargaining Unit Reductions in Grade. Assignments are made as follows:
(1) Step. The employee’s current salary is moved to the lower grade. If the current salary falls between two steps in the lower grade, the salary is set at the higher of the two steps. The salary may not be set below the minimum or above the maximum of the lower grade.
(2) Next Step Date. Creditable service in the former position is maintained toward the next step increase, with the following exceptions:
(a) If the employee’s salary is increased by at least one most prevalent step in the former grade, a new step waiting period begins on the effective date of the reduction in grade (see 421.45c).
(b) If the conditions of 422.125b(2)(a) are not met, and if the waiting period time already served equals or exceeds that required to advance to the next step following the reduction in grade, the employee is advanced one additional step and a new step waiting period begins on the effective date of the reduction in grade.
c. Step and Next Step Date Assignment for Nonbargaining Unit to Bargaining Unit Reductions in Grade. For all nonbargaining reductions in grade to the Rural Carrier schedule, consult 422.423 and 422.424 to determine the proper step and next step date. For all other nonbargaining-to-bargaining reductions in grade, determine the employee’s salary, step, and next step date as if the service had continued uninterrupted from the level/step in effect at the time of the nonbargaining promotion.
(1) For reductions in grade to the same Rate Schedule occupied immediately prior to a promotion to a nonbargaining position, the following provisions apply:
(a) When an employee returns to the same level as that occupied immediately prior to the nonbargaining promotion, assign the salary, step, and next step date as if the service had continued uninterrupted from the level/step in effect at the time of the nonbargaining promotion.
(b) When an employee changes to a higher level than that occupied immediately prior to the nonbargaining promotion, apply the promotion rules for the appropriate salary schedule in 422 to determine the employee’s new salary, step, and next step date.
(c) When an employee changes to a lower level than that occupied immediately prior to the nonbargaining promotion, apply the reduction in grade rules in 422.125b to determine the employee’s new salary, step, and next step date.
(2) For reductions in grade to a different Rate Schedule occupied immediately prior to a promotion to a nonbargaining position, use the Equivalent Grades chart (exhibit 418.1) and apply the appropriate rule as follows:
(a) When an employee changes to an equivalent level, apply the reassignment rules in 422.124c to determine the employee’s new salary, step, and next step date.
(b) When an employee changes to a higher level, apply the promotion rules for the appropriate salary schedule in 422 to determine the employee’s new salary, step, and next step date.
(c) When an employee changes to a lower level, follow the reduction in grade rules in 422.125b to determine the employee’s new salary, step, and next step date.
(3) For reductions in grade when there is no prior bargaining unit service, the employee is assigned to the step and next step date in the lower grade as if all career postal service had been in the lower grade.
d. Rate Retention. Rate retention provisions do not apply to changes to a lower grade that are voluntary or disciplinary. However, they do apply in nondisciplinary management reductions, as follows (also see 421.511 and 421.512 for application):
(1) Protected Rate. The employee continues to receive the wage he or she received in the higher grade for 2 calendar years (a) if the grade of the position is reduced due to a management action such as a change in job ranking criteria that affects the grade of only one position and (b) if the employee occupied the position at the higher grade for 2 consecutive years preceding the effective date of the reduction. (See also 421.51.)
(2) Saved Rate. For saved rate:
(a) An employee has a saved rate resulting in a red-circle amount if the grade of his or her position is reduced due to a management action such as a change in job ranking criteria that affects the grade of more than one position under the same job description.
(b) If an employee who receives a red-circle amount is subsequently promoted and later returned to the former position through no fault of his or her own, the red-circle amount is restored. (See also 421.52.)
(3) Saved Grade. A bargaining unit employee is entitled to saved grade if he or she is assigned to a lower grade position because of a management action that eliminates the position (e.g., job elimination due to technological and mechanization changes). (See also 421.53.)
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We will incorporate the complete text of these revisions into the next printed version of the ELM and into the online update available on the Postal Service PolicyNet website:
n Go to http://blue.usps.gov.
n Under “Essential Links” in the left-hand column, click PolicyNet.
n On the PolicyNet page, click Manuals.
(The direct URL for the Postal Service PolicyNet website is http://blue.usps.gov/cpim.)
— Compensation, Human Resources, 12-17-09
