
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, March 16, 1990                   TAG: 9003162084
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-3   EDITION: STATE 
SOURCE: The Washington Post
DATELINE: WASHINGTON                                 LENGTH: Medium

POSTAL SERVICE DAFENDS BONUSES, MEETING COSTS

The U.S. Postal Service awarded bonuses to every one of its division general managers in 1988, a year in which postal costs went up at twice the rate of inflation, according to the Postal Rate Commission.

In 1989, the Postal Service barely broke even - and 75 out of 75 division general managers got bonuses averaging $6,173.

"Bonuses have become routine," said Postal Rate Commissioner John Crutcher.

At the same time, the Postal Service was spending at least $6.2 million and possibly as much as $10 million on meetings and conferences, according to the General Accounting Office.

The Western Region Division General Managers Meeting was held in Maui, Hawaii, at a cost of $29,352 for 25 people. The Western Region Postal Career Executive Service Annual Conference was held in Scottsdale, Ariz., at a cost of $217,757 for 199 people. And the Quarterly Transportation Managers Conference was held in Naples, Fla., at a cost of $83,823 for 87 people.

With a 19 percent rate increase pending, the Postal Service is under fire.

Postmaster General Anthony Frank said the meetings referred to were "necessary for the proper conduct of our business . . . and that despite the sometimes exotic locations, room rates ranged from $63 to $98, but some meal costs appear high."

Postal officials defended the bonus system, saying that far from being automatic, it is highly responsive to performance.

Bonuses for the division general managers, who receive no cost of living or longevity increases, ranged from $3,200 for postmasters with the poorest records on service, human relations, financial management and other factors, to $11,200 for the best. The maximum possible bonus is $12,000.

Annual salaries for the 75 officials, who run divisions of from 5,000 to 24,000 employees, range from $76,100 to $87,000.

Field division general managers are eligible for five bonuses a year, four quarterly and one annual. The quarterly bonuses total $400 in each of three categories - service, human relations, and financial performance. No quarterly bonuses are paid unless 95 percent of the mail reaches its destination in three days or less, depending upon distance. Twelve of the field division general managers received no quarterly bonuses last year, postal officials said.

Annual bonuses of up to $7,200 are awarded based on a long list of goals including affirmative action, employee involvement, customer relations, express-mail growth, automation and quality control. Twenty-three regional officials received more than $7,000 last year, a postal spokesman said.

by CNB