We found that such problems were long-standing and had multiple causes that were related to adversarial employee, management, and union attitudes; autocratic management styles; and inappropriate and inadequate performance management systems. Objectives, Scope, and Methodology

The objectives of our review were to (1) determine the status and results of the Postal Service’s progress in improving various labor-management relations problems identified in our 1994 report, including how the Service implemented 10 specific improvement initiatives; and (2) identify any approaches that could help the Service and its unions and management associations achieve consensus on how to deal with the problems we discussed in our 1994 report. Using this information, we developed a list of 32 initiatives that the Service, the 4 labor unions, and 3 management associations had piloted or implemented to try to improve the postal workplace environment. Specifically, this information included (1) the results of the most recent contract negotiations between the Service and each of the four major labor unions; (2) data related to postal employee grievances; and (3) efforts by the Service and the unions and management associations to address the recommendations in our 1994 report, such as the Postmaster General’s (PMG) invitation to the other seven organizations to attend a labor-management relations summit meeting and the implementation of various improvement initiatives, including their status and results. Little Progress Has Been Made in Improving Labor-Management Relations Problems

Since our 1994 report was issued, the Postal Service and its unions and management associations have made little progress in improving long-standing labor-management relations problems. These problems have generally contributed to a sometimes contentious work environment and lower productivity. Such problems may make it more difficult for these organizations to work together to improve the Service’s performance so that it can remain competitive in a dynamic communications market. Figure 2 shows that the number of backlogged grievances had increased from 36,669 in fiscal year 1994 to 69,555 in fiscal year 1996, an increase of about 90 percent. Although many postal, union, and management association officials we spoke with believed that some of these initiatives held promise for making a positive difference in the labor-management relations climate, little information was available to measure the results of various initiatives. to the four unions and the three management associations. Actions Have Been Taken to Implement Five Initiatives, Although Disagreements Exist Over Approaches

For five initiatives, the Service and some of the organizations, especially APWU and NALC, fundamentally disagreed on how specific improvement initiatives should be implemented. However, in large part, fundamental disagreements among the Service and some of the organizations on strategies for implementing specific initiatives continued to hamper their efforts to achieve these goals and improve the overall working climate for postal employees. With the significant future challenges it faces to compete in a fast-moving communications marketplace, the Service can ill afford to be burdened with long-standing labor-management relations problems. 5.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Postal Service's (USPS) efforts to improve employee working conditions and the overall performance of the Service, focusing on: (1) the status and results of the Postal Service's efforts in improving various labor-management relations problems identified in GAO's 1994 report, including how USPS implemented specific improvement initiatives; and (2) approaches that could help USPS and its four labor unions and three management associations achieve consensus on how to deal with the problems GAO discussed in its 1994 report.

What GAO Found

GAO noted that: (1) little progress has been made in improving the persistent labor-management relations problems that had, in many instances, resulted from autocratic management styles, the sometimes adversarial attitudes of employees, unions, and management, and an inappropriate and inadequate performance management system; (2) these problems have generally contributed to a sometimes contentious work environment and lower productivity for USPS; (3) also, the number of employee grievances not settled at the first 2 steps of the grievance process has increased from around 65,000 in fiscal year (FY) 1994 to almost 90,000 in FY 1996; (4) these problems continue to plague USPS in part because the parties involved, including USPS, the four major labor unions, and the three management associations, cannot agree on common approaches for addressing the problems; (5) this inability to reach agreement has prevented USPS and the other seven organizations from implementing GAO's recommendation to develop a framework agreement that would outline common objectives and strategies for addressing labor-management relations problems and improving the postal workroom climate; (6) since 1994, USPS and its unions and management associations have tried to improve the climate of the postal workplace by implementing specific improvement initiatives; (7) many postal, union, and management association officials told GAO that they believed some of these initiatives held promise for making a positive difference in the labor-management climate; (8) however, GAO's review of specific improvement initiative showed that although some actions had been taken to implement certain initiatives, little information was available to measure their results; (9) in some instances, the initiatives were only recently piloted or implemented, and some had been discontinued; (10) in other instances, although postal and union officials agreed that improvements were needed, they disagreed on approaches for implementing specific initiatives; (11) generally, these disagreements have made it difficult for USPS and its unions and management associations to move forward and work together to ensure that the initiatives' intended improvements could be achieved; and (12) with the significant future challenges it faces to compete in a fast-moving communications marketplace, USPS can ill afford to be burdened with long-standing labor-management relations problems.