Effective August 7, 2014, the Postal Service™ is revising the Employee and Labor Relations Manual (ELM), subchapter 420, Wage Administration Policy for Bargaining Unit Employees, sections 422.225 (City Carriers) and 422.325 (Mail Handlers), Reductions in Grade. This policy change applies to the step and next step date to be assigned to bargaining unit employees when they receive a reduction in grade into or within the city carrier rate schedule (RSC Q) or the mail handler rate schedule (RSC M). The reductions in grade include voluntary changes to a lower level, management-initiated changes to a lower level, and demotions.
Current policy determines the step and next step date for bargaining unit reductions in grade by “slotting” the existing salary to the new lower grade with creditable service toward the next step date unless 1) the employee receives an increase of at least one most prevalent step or 2) if the waiting period time already served equals or exceeds that required to advance to the next step. When a promotion is followed by a reduction in grade, some employees may reach top step in their lower grade at a later date than had they remained in that lower grade.
This revision will determine step and next step date as if service had been uninterrupted in the previously held lower grade. For a grade not previously held, the step and next date will be determined as if all career Postal Service had been in the lower grade. This revision, along with compliance with the repromotion rule as stipulated in ELM 422.123a(4), will ensure that bargaining unit employees spend the contractually required number of weeks in advancing to the top step and that they do not receive a penalty for a delay in achieving top step. With implementation of this revision, employees in the same rate schedule and grade with similar tenure will be in the same step.
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Employee and Labor Relations Manual (ELM)
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4 Pay Administration
420 Wage Administration Policy for Bargaining Unit Employees
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422 Salary Schedules Covered by Specific Agreements
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422.2 City Carrier Schedule
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422.22 Change Action Pay Rules
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422.225 Reductions in Grade
[Revise the text of 422.225 to read as follows:]
The following provisions apply.
a. General. Reductions in grade include:
(1) Voluntary changes to a lower level;
(2) Management-initiated changes to a lower level; and
(3) Demotions.
b. Step and Next Step Date Assignment for Bargaining Unit to Bargaining Unit Reductions in Grade Within or Into the City Carrier Rate Schedule (RSC Q). Assignments are made as follows:
(1) To Former Lower Grade. The employee is assigned to the step and next step date as if service had been uninterrupted in the lower grade since the last time held.
(2) To New Lower Grade. 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.
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 before a promotion to a nonbargaining position, the following provisions apply:
(a) When an employee returns to the same level as that occupied immediately before 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 before 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 before 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 before 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 before 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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422.3 Mail Handlers Schedule
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422.32 Change Action Pay Rules
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422.325 Reductions in Grade
[Revise the text of 422.325 to read as follows:]
The following provisions apply.
a. General. Reductions in grade include:
(1) Voluntary changes to a lower level;
(2) Management-initiated changes to a lower level; and
(3) Demotions.
b. Step and Next Step Date Assignment for Bargaining Unit to Bargaining Unit Reductions in Grade Within or Into the Mail Handler Rate Schedule (RSC M). Assignments are made as follows:
(1) To Former Lower Grade. The employee is assigned to the step and next step date as if service had been uninterrupted in the lower grade since the last time held.
(2) To New Lower Grade. 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.
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 before a promotion to a nonbargaining position, the following provisions apply:
(a) When an employee returns to the same level as that occupied immediately before 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 before 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 before 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 before 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 before 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 these revisions into the next online update of the ELM, which is available on the Postal Service PolicyNet website:
n Go to http://blue.usps.gov.
n In the left-hand column under “Essential Links”, click PolicyNet.
n Click Manuals.
The direct URL for the Postal Service PolicyNet website is http://blue.usps.gov/cpim.
— Compensation and Benefits,
Human Resources, 7-24-14
