APWU Iowa



INFORMATION REGARDING LETTERS OF DEMAND

“Even if you are on the right track, you'll get run over if you just sit there.”

- Will Rogers

The burden of proof is on Management for Letters of Demand. As a result, a written Letter of Demand must be supported with all of the documents upon which it is based. All too often, grievance files on Letters of Demand are absent this supporting documentation. The result is a waived debt or a loss at arbitration. You may be on the right track by issuing the Letter of Demand, but the union will run over you for your failure to support the letter with physical evidence.

Letters of Demand or more then simply a written verbatim of a debt that is owed, they are a detailed explanation as to how much and why the money is owed. In the letter itself you must give the employee a detailed reason in writing what the debt is for. Quite often, the Letter of Demand does not give a sufficient reason, for example “payroll related debt,” or, “health benefits.” A proper explanation would be, “You were in an LWOP status from April 14 – August 18, 2005, pp 2005-13-1 through pp 2005-8-2. During this time period you did not earn any wages and the U.S. Postal Service paid for your health benefits in the amount of $2,000.15 (see attached).” If the employee asks for an additional explanation, provide them with any additional information you have, in writing, and make them sign for it.

I. Relevant Handbooks and Manuals.

First, the pertinent sections of the F-1, Post Office Accounting Procedures, should be reviewed for a basic understanding,

“361 Collection Procedures of Monies Demanded

361.1 Bargaining Unit Employees

When, in accordance with the conditions and standards set forth in Article 28 of the employee's respective collective bargaining agreement and Employee and Labor Relations Manual (ELM) 460, it is determined that a bargaining unit employee is financially liable to the Postal Service, any demand for payment must be in writing and signed by the postmaster or designee. In addition to notifying the employee of a USPS determination of the existence, nature, and amount of the debt, the demand letter must include the employee's right to challenge the USPS claim. Care must be taken to ensure that any letter of demand served on an employee provides notice of the employee's right to challenge the demand under the applicable collective bargaining agreement.

If an employee files a grievance over a money demand, collection will be delayed until after disposition of the grievance either by settlement with the union or through the grievance-arbitration procedure.

361.2 Nonbargaining Unit Employees

When it is determined that a nonbargaining unit employee is indebted to the Postal Service, follow the collection and appeal procedures specified in ELM 450.

361.3 Percentage Limitations

Payroll deductions to liquidate a postal debt may not exceed 15 percent of an employee's disposable pay for any one pay period unless the employee agrees in writing to a greater amount. The term, "disposable pay" refers to that part of an employee's salary that remains after all required deductions are made such as normal retirement contributions, FICA, and Medicare insurance taxes, federal income tax, state and local income taxes, and employee-paid federal health insurance premium.”

Second, the pertinent sections of the ELM must also be reviewed to understand additional details regarding Letters of Demand,

“461.4 Effect of Waiver Request

If an employee requests a waiver of a debt, the recovery of which is covered by these regulations, that request does not stay the collection process. However, if the waiver request ultimately is granted, the amount collected must be refunded to the employee.

462.11 Establishment of Accounts Receivable

Depending upon the circumstances of a particular case, the determination of a debt, the collection of which is covered by this subchapter, may be made by an official in the field or at the Eagan ASC. For payroll-related debts discovered in the field, PS Form 2240, Pay, Leave, or Other Hours Adjustment Request, must be submitted to the Eagan ASC. Other debts must be reported to the manager of the Postal Accounts Branch, on PS Form 1902, Justification for Billing Accounts Receivable. Regardless of the amount of the debt, it is the responsibility of the Eagan ASC to create a receivable for each debt and to forward an invoice to the postmaster or installation head at the facility where the debtor is employed. At the time a receivable is created, the ASC must ensure that the employee’s records are flagged so that the final salary or lump sum leave payment for that employee is not made until the debt is paid.

462.12 Collection by Postmaster or Installation Head

Each postmaster or installation head is responsible for collecting, in accordance with these regulations, any debt owed to the Postal Service by an employee under his or her supervision. A postmaster or installation head may delegate his or her responsibilities under these regulations.

462.21 Right to Grieve Letters of Demand

A bargaining unit employee or the employee’s union has the right in accordance with the provisions of Article 15 of the applicable collective bargaining agreement to initiate a grievance concerning any letter of demand to challenge (a) the existence of a debt owed to the Postal Service, (b) the amount of such debt, (c) the proposed repayment schedule, and/or (d) any other issue arising under Article 28 of the applicable collective bargaining agreement. Care must be taken to ensure that any letter of demand served on an employee provides notice of the employee’s right to challenge the demand under the applicable collective bargaining agreement.

462.22 Right to Petition for Hearing

Under the following circumstances, the statutory offset procedures in 452.3, including the right to petition for hearing after the receipt of a Notice of Involuntary Administrative Salary Offsets Under the Debt Collection Act, apply:

a. Failure to Initiate a Grievance in Time. If a bargaining unit employee or the employee’s union does not initiate, within 14 days of the employee’s receipt of a letter of demand, a grievance challenging (a) the existence of a debt owed to the Postal Service, (b) the amount of such debt, and/or (c) the proposed repayment schedule, and the Postal Service intends to proceed with the collection of the debt, the statutory offset procedures in 452.3 apply (see 462.32).

b. Failure to Advance Grievance in Time. If a bargaining unit employee or the employee’s union initiates a grievance in time challenging (a) the existence of a debt owed to the Postal Service, (b) the amount of such debt, and/or (c) the proposed repayment schedule, but the employee’s union, following receipt of a decision denying the grievance, does not advance the grievance to the next step of the grievance procedure within the time limits set forth in Article 15 of the applicable collective bargaining agreement, and the Postal Service intends to proceed with the collection of the debt, the statutory offset procedures in 452.3 apply (see 462.32).

c. Partial Settlement of Grievance. If a grievance challenging (a) the existence of a debt owed to the Postal Service, (b) the amount of such debt, and/or (c) the proposed repayment schedule is resolved at any stage of the grievance-arbitration procedure through a written settlement agreement between the Postal Service and the union under which the employee remains liable for all or a portion of the debt, and the Postal Service intends to proceed with the collection of the debt, the statutory offset procedures in 452.3 apply (see 462.32). If the employee petitions for a hearing under 452.336, the Postal Service is free to pursue collection of the full amount of the debt before the hearing officer, notwithstanding the settlement with the union. However, if any contractual issue is resolved at any stage of the grievance-arbitration procedure, the settlement of that issue is final and binding.

d. Ruling of Nonarbitrability. If an arbitrator rules that a grievance concerning any letter of demand is not arbitrable, and the Postal Service intends to proceed with the collection of the debt, the statutory offset procedures in 452.3 apply (see 462.32).

462.41 Stay of Collection of Debt

Whenever a grievance concerning any letter of demand has been initiated in time, in accordance with Article 15 of the applicable collective bargaining agreement, and/or a petition for a hearing has been filed in time, in accordance with 462.22, regardless of the type and amount of the debt, the Postal Service will stay the collection of the debt until after the disposition of the grievance and/or the petition, through settlement or exhaustion of the contractual and/or administrative remedies.

Last, Article 28 must be read to understand the parties agreements on Letters of Demand. Following is Article 28 from the APWU National Agreement. Please be reminded that this Article may be different in the NALC, NPMHU, or NPPN National Agreements,

“EMPLOYER CLAIMS

The parties agree that continued public confidence in the Postal Service requires the proper care and handling of the USPS property, postal funds and the mails. In advance of any money demand upon an employee for any reason, the employee must be informed in writing and the demand must include the reasons therefore.

Section 1. Shortages in Fixed Credits

Employees who are assigned fixed credits or vending credits shall be strictly accountable for the amount of the credit. If any shortage occurs, the employee shall be financially liable unless the employee exercises reasonable care in the performance of his duties. In this regard, the Employer agrees to:

A. Continue to provide adequate security for all employees responsible for postal funds;

B. Prohibit an employee from using the fixed credit or other financial accountability of any other employee without permission;

C. Grant the opportunity to an employee to be present whenever that employee’s fixed credit is being audited and if the employee is not available to have a witness of the employee’s choice present;

D. Absolve an employee of any liability for loss from cashing checks if the employee follows established procedures; and

E. Audit each employee’s fixed credit no less frequently than once every four months. [see Memo, page 320]

Section 2. Loss or Damage of the Mails

An employee is responsible for the protection of the mails entrusted to the employee. Such employee shall not be financially liable for any loss, rifling, damage, wrong delivery of, or depredation on, the mails or failure to collect or remit C.O.D. funds unless the employee failed to exercise reasonable care.

Section 3. Damage to USPS Property and Vehicles

An employee shall be financially liable for any loss or damage to property of the Employer including leased property and vehicles only when the loss or damage was the result of the willful or deliberate misconduct of such employee.

Section 4. Collection Procedure

A. If a grievance is initiated and advanced through the grievance-arbitration procedure or a petition has been filed pursuant to the Debt Collection Act, regardless of the amount and type of debt, collection of the debt will be delayed until disposition of the grievance and/or petition has (have) been had, either through settlement or exhaustion of contractual and/or administrative remedies.

B. No more than 15 percent of an employee’s disposable pay or 20 percent of the employee’s biweekly gross pay whichever is lower, may be deducted each pay period to satisfy a postal debt, unless the parties agree, in writing, to a different amount. (The preceding Article, Article 28, shall apply to

Transitional Employees)”

DO NOT fill out and submit PS Form 3239, Payroll Deduction Authorization to Liquidate Postal Service Indebtedness, if the employee has filed a timely grievance. If you have the money deducted in spite of the fact the employee filed a timely grievance, the union will be able to file a second grievance wasting more time and money. Ultimately, an Arbitrator will refund the employee their money at approximately 7.24% interest rate times the number of years the grievance was pending Arbitration because the debt was not placed into abeyance pending the outcome of the grievance/arbitration procedure.

II. Additional Information.

The only forms you are authorized to use are located at the Houston District website at .

You must also provide written, signed proof that the employee received the Letter of Demand. This can be done on the letter itself or via certified mail. If the employee refuses to sign, indicate this on the letter with the date and time.

If an employee files a PS Form 3074, Request for Waiver of Claim, you must fill out Part II and include a copy with your grievance response.

The PB 21933 ( 11-21-96) Handbook F-1 revision states that employees cannot grieve or request a hearing for repayment of salary or travel advances for the amount the employee has certified that he/she has received as stated on PS Form 1608, Emergency Salary Authorization and Receipt, and Form 1011, Travel Advance Request and Itinerary Schedule. However, this does not absolve you from answering or processing a grievance or providing the pertinent documents.

III. Supporting Documentation

The written letter itself is not enough to successfully support or win a grievance filed on a Letter of Demand. You must support the Letter of Demand with the necessary forms, invoices, TACS documents, health benefit forms, etc. Failure to do so will most likely result in the debt being waived. Here is what you will need:

1. The Employee Everything Report for the employee for the date(s) in question.

2. PS Forms 1608, 1011, and the PS Form 50 covering the time period the Letter of Demand centers on.

3. PS Form 2240, Pay, Leave, or Other Hours Adjustment Request.

4. PS Form 3239, Payroll Deduction Authorization to Liquidate Postal Service Indebtedness.

5. All invoices from Eagan, MN.

6. PS Form 3294, 3368, and/or 3369 for employee.

7. PS Form 1223-B, Earnings Statements, for the time period in question.

8. Investigative Memorandum or Report of Investigation if one was conducted.

1. For Reasonable Care Issues – You will also need a signed written statement that the employee was observed failing to exercise reasonable care and/or was willful and/or was engaged in misconduct as well as a copy of their training records.

1. For Health Benefit Debts – You will also need SF 2809, Health Benefits Election Form (FEHB), SF 2810, Notice of Change in Health Benefits Enrollment (FEHB), PS Form 3111, FEBH Termination while in LWOP Status, Transfer of FEHB Enrollment to OWCP Letter. To obtain other documents are needed to support a debt concerning health benefits call Doris G. Mills at 713-226-3807 doris.g.mills@

1. For OWCP Debts – You will also need CA-1, CA-7, CA-7a, CA-7b, PS Form 3971 and 3972. To obtain other documents are needed to support a debt concerning OWCP call Injury Compensation at 713-226-3864.

1. Documentation of stand-up talks given to the employees.

2. Copies of relevant postings in your office.

3. Photocopies of your supporting cites.

For more information on what documents are needed to support a written Letter of Demand, you can contact Chris Cisneros at 713-226-3195 christopher.c.cisneros@ or Jose George at 713-226-3260 jose.p.george@.

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download