South Carolina State Association of Letter Carriers

DAVID KOPP, TREASURER
12 Anacoca Lane
Greenville, SC 29611
Cell: 864-275-2971
E-mail: davidscnalc@charter.net

April 24, 2010

                         South Carolina State Association of Letter Carrier's 75th Convention

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May 5, 2010

    This Convention was enlightening and enjoyable to some extent.  I certainly have come away from the Convention with

some ideas to present to the Executive Board during this November’s Training classes.  I heard quite a number of ideas

from both Officers and Delegates.  I think next year there are going to be quite a few By-Law changes.  If anyone reading

this has any ideas, next year would be a great year to present them.  Our State’s By-laws have procedures and guidelines

and cut-off dates to make those recommendations.

    Normally, at these Conventions, when the Chairman asked for Officer Reports, the Officers respond by saying it is in the

Convention Book.  This year, however; all the Officers got up and gave a report.  Not one, I think, read from the Convention  

Book most everyone had something important to say, often about the “five day delivery” plan by the USPS.  I didn’t read my

report either, and neither did I discuss “five day delivery.”  I wish I had done both.  I am grateful to have a website to be able to

post what I wished I would have said.  Treasurer duties are important, and I think an under-emphasized consequence of ‘five day

delivery” needs to be mentioned.

Convention Booklet Report:

    I know some Treasurer’s are quite overwhelmed by their position and are concerned about keeping records, paying taxes and

doing reports.  Don’t be.  If you’re not paying taxes or keeping adequate records, start doing so.  The problems and possible

consequences of not doing so can be very serious and not doing so, when you know it needs to be done, sucks out precious

life energy.  Don’t procrastinate, start now.   Some of the consequences of not getting compliant could result in significant fines and

criminal charges.  Other problems can result as well; for example, on the IRS website it tells that a non-profit can loose its tax-exempt

status for not filing the annual 990 report.  This includes the 990N for Branches with gross receipts under $25,000.

            The National spends a great deal of time and effort to let the Branches know of their responsibilities.  There are really no excuses. 

                On the Tax issue, each Branch is required, if compensation is paid, to withhold employee taxes and pay Social Security, Medicare,

             and both the Federal and State unemployment taxes.  On another note:  NALC membership throughout the State hasn’t changed much

             for 2009. In 2008, the year ended with 1,537 active and 656 retired members.  In 2009, the year ended with 1,521 active and 665

             retired members.  In those Offices that have Carriers that are not members, let’s renew efforts to organize. 

Five Day Delivery:

    The Government Accounting Agency, (GAO) gave a report based on the information presented to them by the USPS that a significant

fault for the financial condition of the USPS is our Unions.  Or, as I would say, the USPS is unhappy with our wages, benefits, working

conditions, and being held accountable to follow a Contract. That is too bad for them.  Maybe if they managed better we’d be in better

financial shape.  Five days, or four days that I have also heard is a possibility, has the kind of staffing reductions that can really hurt financially

the Branches and the NALC.  Other plans by the Postal Service such as a temporary workforce, wage and benefit reductions can negatively

affect those left here working.  We don’t need a weaker union.  The elephant in the room is that the average age of the City Carrier is fifty-one

years.  Many of them would be eligible for a buyout.  Still, many others think they would be safe from a staffing reduction or lay-off.  Further,

they like the idea of a Saturday off.  Too those people I would tell them that maybe they’re right, and the Post Office is doing a good thing. 

Then I would tell them to move out of the way, for that elephant in the room is about to crush them.  Carriers need to seriously discuss the issue. 

The Post Office lies about a lot of things, including the data they fed to the GAO that painted a negative picture of our Unions. I have to say: 

Unions made the middle class.  The Postal Service wants to hire temps with no benefits and hurt families from being able to support themselves. 

It’s poor management, the economy, and not at all our UNIONS fault.  I suggest everyone get involved politically, but if that isn’t a members

mindset to do or be able to do,  then get involved with our local union and do what you can to stand in solidarity.  Bring people into our Union

and do what you can to hold management accountable.  Because if this plan of the USPS comes to fruition, we need everyone’s effort to keep

our remaining jobs, good jobs.

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December 20, 2009

    This is the first of a three part topic on the issue of ETHICS in Branch Management.  Some of what I will talk about is law and

or accepted practice.

    The NALC Constitution, pg 74, Under "Constitution for the Government of Subordinate and Federal Branches" states that

Recording Secretary shall give a semi-annual report giving "the receipts, benefits paid, amount expended, and the amount on

hand."  My opinion is that the annual Labor Management (LM) report is an objective legal overview that details not only the financial

status of the Branch, but also how the "Membership Dues" have been handled.  This report should be read to the Branch by the

Secretary because the membership needs to know how their dues money, "voluntarily given," like giving to a church, is being handled

by Trusted Officers of the Branch.

    The monthly reading of the bills for many branches is nothing more than a formality to the process of getting to the business of the

meeting.  For those bills to be legitimate, i.e. (legal and ethical), and the almost automatic approval by the branch to be reasonably

binding and non-criminal or at least ethical, those bills read to the branch must be in compliance with the By-Laws and in my

opinion the By-Laws intent.  Not being so can be a violation of the Department of Labor.  The following is from the DOL website.

"Title V provides a number of safeguards for unions.  Union Officers have a duty to manage the funds and property of the union

solely for the benefit of the union in accordance with its constitution and bylaws." Also, in Title V under bonding is the Bonding "to

provide protection against loss by reason of acts of fraud or dishonesty on his part directly or through connivance with others."

    These bills, being read, must  also offer reasonable, full disclosure as to their purpose.  Therefore, these bills must have all

legal attachments, such as receipts, leave forms, etc....Failure to do so could result in a charge of "dishonesty or fraud," particularly

if such a reading financially benefits an officer, and in my opinion nullifies any unwitting approval by the branch.  Not having a properly

defined receipt from a third party needs to be mentioned to the Branch and such expenditure, if approved, should probably be considered

income.  If such expenditures are classified as "per-diem" for meals, for example on an incidental basis in the normal performance of

officers or shop steward duties; make certain that the membership is aware of the lack of receipt as claiming per-diem is nothing but

a claim to a meal taken that a dishonest officer may not have taken.  I am reasonably certain, that receipts are in order (legally), for this

circumstance, not per-diem.

    Some branches pay additional wages to officers and stewards.  These wages are in addition to their salaries and are not in any way

LWOP or Lost Leave.  Lost Leave is either reimbursement for annual leave taken to perform union work, or the yearly reimbursement of

Lost Sick and Annual Leave that an officer may lose after eighty hours of LWOP.  Payment of such wages must be allowed in the By-Laws.

Further, my opinion, the branch should perhaps adjust salaries to reflect that additional income for not only budgetary reasons but as to

actual value of the job for future elections of officers that may inspire members to run for those positions.  Regardless, the types of wages

paid, whether reimbursement or additonal income should be specified at each branch reading of bills.  Transparency is important.  In

additional, the hourly rate for additional pay should be specified at each meeting.  The branch needs to be aware of the type of documentation

used to substantiate wages or reimbursement if not covered in the By-Laws.  Additional income wages without a third party receipt is nothing

more than the extension of the voucher and a personal recognizance statement that the work was performed at a prescribed  time for a

prescribed period of time.  The branch needs to be aware of that.

    In conclusion, I say all this for branch leadership to become more fully aware of their responsibilities to their membership.  And for the

membership to pay attention during the reading of the bills and to ask questions.  Seldom is there any intent by the leadership to do

wrong or in any lack of transparency, they just make mistakes.  Questions brought up by a member to imply wrong doing or an audit by

the Department of Labor or the IRS is the last thing any branch wants.  They may view mistakes that have been made differently, by

determining intent, rather than what they are, simply mistakes.  If a branch is to err, it is better to err on the side of caution and give too much

information than not enough.  Reading the Labor Management Report along with any supplemental information is a first step and does not

protect the branch if there is any wrong doing.  It does provide enough information to the membership to address and correct any problems

and establish procedures to ensure the membership is fully aware of how the money is spent.  The money in its entirety is the property

of all the members, the officers spending the money, and the membership in attendance of the meetings have a grave responsibility to see

that the money is spent wisely.

    Next month, I am going to dive further into rules from the Department of Labor in regard to Elections and Bylaws.  I know of some branches

that need a little guidance to ensure DOL compliance in that area.  If this article is helpful, or if I have said something wrong, then please

email me and let me know.

Thank You,

David Kopp, Treasurer

SCSALC

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July 31,  2009   

    The Financial Picture of the State Association after the State Convention is sound.  The following is a breakdown of the

financial picture of the State Association. I am offering my services to those Branches in need of someone with some experience

in bookkeeping and on the State and Federal requirements for payroll.  The State will be having an Executive Board meeting in

Columbia on November 7^th and a planning session open for Branches to attend.  If all goes as planned, I will have some

information available to help struggling Branches with the fiduciary responsibilities of the Treasurer.  However, I do know that

training has been offered in this area by National on many occasions.  For example, there will be training in Chicago in October

to help the Treasurers and Secretaries with their responsibilities.  But all this information is worthless if it isn’t put into practice. 

To those Branches not sure of where they stand, I encourage them to contact me through my email account (davidscnalc@charter.net).

If tax Id’s need to be assigned, I’ll give the phone numbers, and whatever else that be might needed.  I’ll even come to your Branch

and help.  I know that some branches could use some assistance and maybe there might be some embarrassment in having someone

on the outside to assist.  But failing to act to straighten out the problems could result in significant legal problems.   

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May 25, 2009

    When the final cost of the past State Convention in Greenville is known, I plan to share the information with the membership. 

However, I can give the membership a breakdown of the committee cost for this Convention.  Hotel: $650.00; Mileage: $780.00;

and Meals were $175.00. The total is about $1,605.00.  The total cost for the previous year was $3,170.00.  The breakdown being

$1,252.00 Hotel: $1,684.00 mileage, and $234.00 for meals.  Thus the reason for the proposed By-Law changes that were defeated

at the convention.  They were to reduce cost and to establish a base cost for the use of Committees.  The By-Law changes were

discussed and written at an E-Board meeting.  They were not my ideas. Though it was our idea to bring cost in line to lower the

overall burden of the cost of the convention.  Normally, the State Association contributes $3,000.00 to the cost of the convention. 

The remaining cost is in the registration fee of the delegates with the exception of the commitee cost.  However, shouldn't this

cost also be covered with the $3,000.00?
    After the sound defeat of the recommended Bylaw Changes in giving the committee members a $50 stipend for each day they

meet and also giving the Sargent of Arms a stipend as well, I discussed the matter with a few of the nay-sayers.  One nay-sayer

said that the Credentials Committee should be handled differently than the other committees in that they are required to be at the

convention a day early.  I feel that a change is needed in the way we pay committee members in the interest of lowering cost. 

This way we will be more fiduciary responsible and inadvertently enable us to establish a more consistent factor of the cost for

budgetary purposes.
    I ask for your suggestions for a possible solution.  Send me your suggestions or make proposals through your Branch for a

By-Law change.  I don't think the issue is dead.  I do believe some change will be proposed at the next convention with your support. 
   

As Submitted,

David Kopp, Treasurer

SCSALC

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“The Power of Two”  “It Starts With One”
2009 Theme and the 2008 Theme
NALC Health Benefit Plan (HBP)

    The “Power of Two” represents your NALC union and your union-owned and union operated Health Benefit Plan.  “It Starts With One”

represents the setting of small goals to achieve a bigger one.  It means the rebuilding of the membership of the NALC Health Benefit Plan. 
    Prior to 1997 most active and retired NALC member City Letter Carriers belonged to our NALC Health Benefit Plan.  The plan grew

rapidly from 4,115 members in April 1950 at the initial open enrollment period to 220,000 members by 1990.  Unfortunately, during contract

negotiation in 1997 with the OPM (Office of Personnel Management) a demand was made by OPM to force the HBP to aggressively rebuild

its reserves or be shut down. To comply, the HBP raised the premiums considerably and reduced its benefits to the membership. The NALC

Health Benefit Plan consequently sustained a substantial loss of both active and retired members during the 1997 Open Season. 
    I left the NALC Health Benefit Plan that year as well.  I wasn’t active in the Union and I didn’t know what happened.  If it weren’t for the

UNION SOLIDARITY, and Sacrifice of those who stayed with the plan during this crisis, a special and unique part of our Union would have

been lost.  In 1998, our NALC President Vince Sombrotto said at the National Convention, “solidarity ends when sacrifice begins.”
    Members now use the Wal-Mart approach in choosing a plan.  The best value of the moment seems to be everyone’s motto.  What most

everyone seems to have forgotten is:  Solidarity in times of Sacrifice makes us stronger.  The power of our numbers makes us a force, especially

when we stand together. 
    The NALC Health Benefit Plan is competitive to the other plans being offered.  The most notable improvement for 2008 was the joining into the

CIGNA PPO network. This more than doubled the PPO providers available to its members.  We are Union-owned and operated.  No CEO is at

the helm making millions and beholden to shareholders.  Instead, we have Tim O’Malley who isn’t paid millions, and who is a servant of the HBP

plan holders and who would also answer or return your call. 
    The level of benefits to be offered in 2009 deserves careful consideration.   Doctors not on the PPO network can be evaluated for membership. 

Be certain you know how to change plans for 2009.  Contact your local HB Representative, National HBP Officer, or even me if you have questions.

The level of benefits is competitive, and a best value for the cost, but consider what solidarity could bring and its subsequent benefits and cost.
    On a last note, let’s make this Open Season in November 2008 a success.  I ask the Branches to offer multiple Presentations to all City Carriers. 

This Benefit as well as others that are offered by this Union is reason to join.  The short term cost differential of solely pursuing a Wal-Mart

approach to Health Care may be more costly than NOT considering the long term Benefits and Cost of the NALC Health Benefit Plan,

and the NALC.  “The Power of Two” “It Starts with One.”