• Develop and evaluate best proven practices to be implemented in other Postal Service facilities with similar ergonomic issues.
• Train local employees as appropriate to participate in the ergonomic risk reduction process.

The process was implemented in 20 sites in 2003. The process will be started in another 32 sites in 2004, 40 sites in 2005, 40 sites in 2006, and 43 sites in 2007. In addition to reducing risk factors and MSD incidents at those sites, the Postal Service will share the lessons learned among the facilities at other worksites that have implemented ERRP.

     As of the end of 2003 the Postal Service had trained more than 10,600 employees at the 20 initial sites. Of the total, approximately 2,100 were managers, the rest were from the clerk, mail handler, maintenance, and vehicle services areas.

     Also in 2003, 527 task analyses were conducted, with 236 fixes implemented and 108 quick fixes implemented locally at little or no cost. When applicable, these fixes are being shared with other sites.

     In 2003, the Postal Service had an increase in workers' compensation cash outlays of approximately $62.9 million (8.3 percent) over 2002, for a total cash payout of $822.7 million. Total paid compensation claims increased by 1,307 (4.3 percent), and total medical claims increased by 814 (0.6 percent). Although it is anticipated that workers' compensation costs will continue to rise, the Postal Service reduced the combined growth rate of compensation costs and medical costs in 2003 from a 9.3 percent growth rate in 2002 to a 6.6 percent growth rate in 2003.

     The Postal Service's cost control strategy was directed toward efforts to contain workers' compensation costs and manage disability cases. The National Reassessment Initiative is reviewing all injured employees in limited duty and rehabilitation positions to ensure that they are properly classified

according to their limitations. As of August 2003, 26,710 limited duty and rehabilitation cases had been reviewed with the following results: 9,617 immediately returned to full duty, and 15,815 were placed in productive assignments.

     The Postal Service has been working more closely with the Office of Workers' Compensation Programs (OWCP) to enhance the rehabilitation of injured employees who cannot be accommodated within the Postal Service into private sector assignments. The Postal Service also has an agreement with OWCP and First Health Corporation, the nation's largest preferred provider organization, to help reduce workers' compensation medical costs. The program originally was operational in four OWCP district offices and was expanded nationwide July 1, 2002. Since inception through September 30, 2003, the program has returned more than $1.4 million to the Postal Service and avoided more than $48 million in medical costs.

     Postal inspectors seek prosecution for workers' compensation fraud, as prosecution provides the best deterrent and prevents the resumption of benefits. Prosecution is most successful in cases where the allegedly disabled claimant is receiving outside earnings and failing to report them to the Department of Labor. Workers' compensation fraud also occurs when employees misrepresent the extent of their physical abilities. Through the end of 2003, Postal Inspection