Postmaster General John Potter has abolished a controversial bonus program for about 80,000 U.S. Postal Service executives, supervisors and managers.
The program came under fire from several U.S. Senators last year when it was revealed that the USPS, predicting it would end fiscal 2001 more than $2 billion in the red, was prepared to pay out some $280 million in bonuses.
The program, developed in 1996 by then-Postmaster General Marvin T. Runyon, was designed to replace cost-of-living increases, overtime and differentials in locality pay.
Potter said he is working with the National Association of Postal Supervisors, the National Association of Postmasters of the United States and the National League of Postmasters to design a new performance-driven incentive program to replace the six-year-old Economic Value Added (EVA) Pay-for-Performance Program (PPP).
The new program, which is expected to be in place for fiscal 2004, would have an increased emphasis on individual achievement, while continuing to recognize group performance, according to postal officials.
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