chapter 1
compliance with statutory policies
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conducted in 2003; approximately 30 percent were resolved without further litigation. This pilot will end at the beginning of 2004, but will be replaced with other alternative dispute resolution initiatives. This will include the offering of REDRESS at the time formal complaints are accepted for investigation and throughout the investigatory process.

d. Complement Management

     To help achieve operational objectives, the Postal Service implemented a national complement planning, tracking, and management system with national standard procedures and work processes. By standardizing complement management, performance cluster level management can determine appropriate complement plans by installation and function. Using the Business Management Guide, complement plans are budget-based. These plans are converted to authorized staffing levels by unit and input into the web Complement Information System (webCoInS). This tool tracks authorized complement and compares it to actual complement. It includes both employee and job data. The local complement committees then utilize webCoInS to monitor and adjust complement to meet these plans. In the future, local performance cluster plans will be represented in the Field Complement Plan, where local plans will be consolidated to form area and national complement plans. Enhanced planning and tracking tools are included in this standardization effort to aid in the management decision making process of local and area complement committees.

     Complement management is one way to ensure organizational success. As an organization, the Postal Service must be aware of workforce dynamics, like attrition, and understand how to manage them. If this is done, complement management can be leveraged to drive costs down and address the changing business landscape.

     The Operations Complement Management function in Labor Relations was created at the beginning of 2002. Since its inception, it has developed national standard procedures for complement planning, tracking and management;

supported the establishment of complement committees and ad hoc complement management coordinators; and standardized the complement management process, resulting in appropriate complement plans by installations and functions.

C. Service to Small or Rural Communities

     In enacting the Postal Reorganization Act of 1970, it was the specific intent of Congress to ensure effective postal service to residents of both urban and rural communities. In providing the nation's mail service, the Postal Service has established a nationwide network of postal facilities, centralized delivery units, and rural and highway contract delivery routes.

     A change in community postal needs or the loss of suitable facilities may lead to the closing of a Post Office or its consolidation into a station, branch, or contract Post Office. Proposals to discontinue or consolidate a Post Office are carefully evaluated on a case-by-case basis consistent with the statutory criteria found in 39 U.S.C. 404(b). Formal administrative procedures have been established to review discontinuance proposals and to ensure community input and discussion. A discontinuance proposal may be appealed to the independent Postal Rate Commission (PRC). When an independent Post Office is closed or consolidated, customers are provided with regular and effective service.

     On April 5, 2002, the Postal Service lifted its self-imposed Post Office closing moratorium, which had been in effect since March 16, 1998. In 2002 the Postal Service began finalizing discontinuance studies on approximately 550 emergency-suspended Post Offices that were backlogged prior to the moratorium. During 2003, the Postal Service closed or consolidated 274 Post Offices, 17 community Post Offices, and 3 classified stations. During 2003, one Post Office closing appeal was docketed by the PRC (Docket No. A2003-1). The appeal pertained to Postal Service actions regarding a postal station, rather than an independent Post

Chapter 1
Compliance with Statutory Policies Introduction
  1. Fundamental Service to the People
  2. The Workforce
  3. Service to Small or Rural Communities
  4. Postal Cost Apportionment and Postal Ratemaking Developments
  5. Transportation Policies
  6. Postal Service Facilities, Equipment, and Supplies
Chapter 2 Postal Operations

Chapter 3 Financial Highlights

Chapter 4 2003 Performance Report and Preliminary 2005 Annual Performance Plan