39 U.S.C. § 1004 — Supervisory and other managerial organi-

Page 41 TITLE 39—POSTAL SERVICE § 1004 period which began on or after April 16, 1970, and end- ing on the date of enactment of this Act [Aug. 12, 1970], for services rendered during such period; and ‘‘(2) in accordance with subchapter VIII of chapter 55 of title 5, United States Code [section 5581 et seq. of Title 5, Government Organization and Employees], relating to settlement of accounts, for services ren- dered, during the period beginning on the first day of the first pay period which began on or after April 16, 1970, and ending on the date of enactment of this Act [Aug. 12, 1970], by an officer or employee who died during such period. Such retroactive pay, compensation, or salary shall not be considered as basic pay for the purposes of sub- chapter III of chapter 83 of title 5, United States Code [section 8331 et seq. of Title 5], relating to civil service retirement, or any other retirement law or retirement system, in the case of any such retired or deceased offi- cer or employee. ‘‘(c) [Period for Restoration to Government Position, as Service] For the purposes of this section, service in the Armed Forces of the United States, in the case of an in- dividual relieved from training and service in the Armed Forces of the United States or discharged from hospitalization following such training and service, shall include the period provided by law for the manda- tory restoration of such individual to a position in or under the Government of the United States. ‘‘(d) [Group Life Insurance; Amount; Effective Date] For purposes of determining the amount of insurance for which an individual is eligible under chapter 87 of title 5, United States Code [section 8701 et seq. of Title 5], re- lating to group life insurance for Government employ- ees, all changes in rates of pay, compensation, and sal- ary which result from the enactment of this section shall be held and considered to become effective as of the date of such enactment [Aug. 12, 1970]. ‘‘(e) [Limitation of Basic Pay Rate] No rate of basic pay or compensation, in excess of the rate of basic pay for GS–18 of the General Schedule in section 5332 of title 5, United States Code, shall be paid by reason of the en- actment of this section.’’ [Provisions of section 9 of Pub. L. 91–375 effective Aug. 12, 1970, see section 15(a) of Pub. L. 91–375, set out as an Effective Date note preceding section 101 of this title.] § 1004. Supervisory and other managerial organi- zations (a) It shall be the policy of the Postal Service to provide compensation, working conditions, and career opportunities that will assure the at- traction and retention of qualified and capable supervisory and other managerial personnel; to provide adequate and reasonable differentials in rates of pay between employees in the clerk and carrier grades in the line work force and super- visory and other managerial personnel; to estab- lish and maintain continuously a program for all such personnel that reflects the essential im- portance of a well-trained and well-motivated force to improve the effectiveness of postal oper- ations; and to promote the leadership status of such personnel with respect to rank-and-file em- ployees, recognizing that the role of such per- sonnel in primary level management is particu- larly vital to the process of converting general postal policies into successful postal operations. (b) The Postal Service shall provide a program for consultation with recognized organizations of supervisory and other managerial personnel who are not subject to collective-bargaining agreements under chapter 12 of this title. Upon presentation of evidence satisfactory to the Postal Service that a supervisory organization represents a majority of supervisors, that an or- ganization (other than an organization rep- resenting supervisors) represents at least 20 per- cent of postmasters, or that a managerial orga- nization (other than an organization rep- resenting supervisors or postmasters) represents a substantial percentage of managerial employ- ees, such organization or organizations shall be entitled to participate directly in the planning and development of pay policies and schedules, fringe benefit programs, and other programs re- lating to supervisory and other managerial em- ployees. (c)(1) The Postal Service and the supervisors’ organization shall, unless otherwise mutually agreed to, meet at least once each month to im- plement the consultation and direct participa- tion procedures of subsection (b) of this section. (2)(A) At least 7 days before each meeting, each party shall— (i) provide notice of agenda items, and (ii) describe in detail the proposals such party will make with respect to each such item. (B) Grievances of individual employees shall not be matters which may be included as agenda items under this paragraph. (d)(1) In order to facilitate consultation and direct participation by the supervisors’ organi- zation in the planning and development of pro- grams under subsection (b) of this section which affect members of the supervisors’ organization, the Postal Service shall— (A) provide in writing a description of any proposed program and the reasons for it; (B) give the organization at least 60 days (unless extraordinary circumstances require earlier action) to review and make rec- ommendations with respect to the program; and (C) give any recommendation from the orga- nization full and fair consideration in deciding whether or how to proceed with the program. (2) If the Postal Service decides to implement a program described in paragraph (1) of this sub- section, the Postal Service shall before such im- plementation— (A) give the supervisors’ organization details of its decision to implement the program, to- gether with the information upon which the decision is based; (B) give the organization an opportunity to make recommendations with respect to the program; and (C) give such recommendations full and fair consideration, including the providing of rea- sons to the organization if any of such rec- ommendations are rejected. (3) If a program described in paragraph (1) of this subsection is implemented, the Postal Serv- ice shall— (A) develop a method for the supervisors’ or- ganization to participate in further planning and development of the program, and (B) give the organization adequate access to information to make that participation pro- ductive. (4) The Postal Service and the supervisors’ or- ganization may, by agreement, adopt procedures different from those provided by this subsection. Page 42 TITLE 39—POSTAL SERVICE § 1004 (e)(1) The Postal Service shall, within 45 days of each date on which an agreement is reached on a collective bargaining agreement between the Postal Service and the bargaining represent- ative recognized under section 1203 of this title which represents the largest number of employ- ees, make a proposal for any changes in pay policies and schedules and fringe benefit pro- grams for members of the supervisors’ organiza- tion which are to be in effect during the same period as covered by such agreement. (2) The Postal Service and the supervisors’ or- ganization shall strive to resolve any differences concerning the proposal described in paragraph (1) of this subsection under the procedures pro- vided for, or adopted under, subsection (d) of this section. (3) The Postal Service shall provide its deci- sion concerning changes proposed under para- graph (1) of this subsection to the supervisors’ organization within 90 days following the sub- mission of the proposal. (f)(1) If, notwithstanding the mutual efforts required by subsection (e) of this section, the su- pervisors’ organization believes that the deci- sion of the Postal Service is not in accordance with the provisions of this title, the organiza- tion may, within 10 days following its receipt of such decision, request the Federal Mediation and Conciliation Service to convene a fact- finding panel (hereinafter referred to as the ‘‘panel’’) concerning such matter. (2) Within 15 days after receiving a request under paragraph (1) of this subsection, the Fed- eral Mediation and Conciliation Service shall provide a list of 7 individuals recognized as ex- perts in supervisory and managerial pay poli- cies. Each party shall designate one individual from the list to serve on the panel. If, within 10 days after the list is provided, either of the par- ties has not designated an individual from the list, the Director of the Federal Mediation and Conciliation Service shall make the designation. The first two individuals designated from the list shall meet within 5 days and shall designate a third individual from the list. The third indi- vidual shall chair the panel. If the two individ- uals designated from the list are unable to des- ignate a third individual within 5 days after their first meeting, the Director shall designate the third individual. (3)(A) The panel shall recommend standards for pay policies and schedules and fringe benefit programs affecting the members of the super- visors’ organization for the period covered by the collective bargaining agreement specified in subsection (e)(1) of this section. The standards shall be consistent with the policies of this title, including sections 1003(a) and 1004(a) of this title. (B) The panel shall, consistent with such standards, make appropriate recommendations concerning the differences between the parties on such policies, schedules, and programs. (4) The panel shall make its recommendation no more than 30 days after its appointment, un- less the Postal Service and the supervisors’ or- ganization agree to a longer period. The panel shall hear from the Postal Service and the su- pervisors’ organization in such a manner as it shall direct. The cost of the panel shall be borne equally by the Postal Service and the super- visors’ organization. (5) Not more than 15 days after the panel has made its recommendation, the Postal Service shall provide the supervisors’ organization its final decision on the matters covered by fact- finding under this subsection. The Postal Serv- ice shall give full and fair consideration to the panel’s recommendation and shall explain in writing any differences between its final deci- sion and the panel’s recommendation. (g) Not earlier than 3 years after the date of the enactment of this subsection, and from time to time thereafter, the Postal Service or the su- pervisors’ organization may request, by written notice to the Federal Mediation and Concilia- tion Service and to the other party, the creation of a panel to review the effectiveness of the pro- cedures and the other provisions of this section and the provisions of section 1003 of this title. The panel shall be designated in accordance with the procedure established in subsection (f)(2) of this section. The panel shall make rec- ommendations to the Congress for changes in this title as it finds appropriate. (h)(1) In order to ensure that postmasters and postmasters’ organizations are afforded the same rights under this section as are afforded to supervisors and the supervisors’ organization, subsections (c) through (g) shall be applied with respect to postmasters and postmasters’ organi- zations— (A) by substituting ‘‘postmasters’ organiza- tion’’ for ‘‘supervisors’ organization’’ each place it appears; and (B) if 2 or more postmasters’ organizations exist, by treating such organizations as if they constituted a single organization, in accord- ance with such arrangements as such organi- zations shall mutually agree to. (2) If 2 or more postmasters’ organizations exist, such organizations shall, in the case of any factfinding panel convened at the request of such organizations (in accordance with para- graph (1)(B)), be jointly and severally liable for the cost of such panel, apart from the portion to be borne by the Postal Service (as determined under subsection (f)(4)). (i) For purposes of this section— (1) ‘‘supervisors’ organization’’ means the or- ganization recognized by the Postal Service under subsection (b) of this section as rep- resenting a majority of supervisors; (2) ‘‘members of the supervisors’ organiza- tion’’ means employees of the Postal Service who are recognized under an agreement be- tween the Postal Service and the supervisors’ organization as represented by such organiza- tion; (3) ‘‘postmaster’’ means an individual who is the manager in charge of the operations of a post office, with or without the assistance of subordinate managers or supervisors; (4) ‘‘postmasters’ organization’’ means an or- ganization recognized by the Postal Service under subsection (b) as representing at least 20 percent of postmasters; and (5) ‘‘members of the postmasters’ organiza- tion’’ shall be considered to mean employees of the Postal Service who are recognized under an agreement— Page 43 TITLE 39—POSTAL SERVICE § 1005 1 So in original. The word ‘‘of’’ probably should not appear. (A) between the Postal Service and the post- masters’ organization as represented by the organization; or (B) in the circumstance described in sub- section (h)(1)(B), between the Postal Service and the postmasters’ organizations (acting in concert) as represented by either or any of the postmasters’ organizations involved. (Pub. L. 91–375, Aug. 12, 1970, 84 Stat. 731; Pub. L. 96–326, Aug. 8, 1980, 94 Stat. 1023; Pub. L. 108–86, § 2(a)–(c), Sept. 30, 2003, 117 Stat. 1052.) Editorial Notes REFERENCES IN TEXT The date of the enactment of this subsection, referred to in subsec. (g), is the date of enactment of Pub. L. 96–326, which was approved Aug. 8, 1980. AMENDMENTS 2003—Subsec. (b). Pub. L. 108–86, § 2(a)(2), which di- rected substitution of ‘‘supervisors or postmasters)’’ for ‘‘supervisors)’’ in second sentence, was executed by making the substitution the second time ‘‘super- visors)’’ appears in the sentence to reflect the probable intent of Congress. Pub. L. 108–86, § 2(a)(1), inserted ‘‘that an organization (other than an organization representing supervisors) represents at least 20 percent of postmasters,’’ after ‘‘majority of supervisors,’’. Subsec. (h). Pub. L. 108–86, § 2(b)(2), added subsec. (h). Former subsec. (h) redesignated (i). Subsec. (i). Pub. L. 108–86, § 2(b)(1), (c), redesignated subsec. (h) as (i) and added pars. (3) to (5). 1980—Subsecs. (c) to (h). Pub. L. 96–326 added subsecs. (c) to (h). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2003 AMENDMENT Pub. L. 108–86, § 3, Sept. 30, 2003, 117 Stat. 1053, pro- vided that: ‘‘The amendments made by this section [probably should be ‘‘this Act’’, amending this section and enacting provisions set out as notes under this sec- tion and section 101 of this title] shall take effect 60 days after the date of the enactment of this Act [Sept. 30, 2003].’’ EFFECTIVE DATE Section effective July 1, 1971, pursuant to Resolution No. 71–9 of the Board of Governors. See section 15(a) of Pub. L. 91–375, set out as a note preceding section 101 of this title. THRIFT ADVISORY COUNCIL NOT TO BE AFFECTED Pub. L. 108–86, § 2(d), Sept. 30, 2003, 117 Stat. 1053, pro- vided that: ‘‘For purposes of section 8473(b)(4) of title 5, United States Code— ‘‘(1) each of the 2 or more organizations referred to in section 1004(h)(1)(B) of title 39, United States Code (as amended by subsection (b)) shall be treated as a separate organization; and ‘‘(2) any determination of the number of individuals represented by each of those respective organizations shall be made in a manner consistent with the pur- poses of this subsection.’’ § 1005. Applicability of laws relating to Federal employees (a)(1) Except as otherwise provided in this sub- section, the provisions of chapter 75 of title 5 shall apply to officers and employees of the Postal Service except to the extent of any in- consistency with— (A) the provisions of any collective-bar- gaining agreement negotiated on behalf of and applicable to them; or (B) procedures established by the Postal Service and approved by the Civil Service Commission. (2) The provisions of title 5 relating to a pref- erence eligible (as that term is defined under section 2108(3) of such title) shall apply to an ap- plicant for appointment and any officer or em- ployee of the Postal Service in the same manner and under the same conditions as if the appli- cant, officer, or employee were subject to the competitive service under such title. The provi- sions of this paragraph shall not be modified by any program developed under section 1004 of this title or any collective-bargaining agreement en- tered into under chapter 12 of this title. (3) The provisions of this subsection shall not apply to those individuals appointed under sec- tions 202, 204, and 1001(c) of this title. (4)(A) Subchapter II of chapter 75 of title 5 shall apply— (i) to any preference eligible in the Postal Service who is an employee within the mean- ing of section 7511(a)(1)(B) of such title; and (ii) to any other individual who— (I) is in the position of a supervisor or a management employee in the Postal Serv- ice, or is an employee of the Postal Service engaged in personnel work in other than a purely nonconfidential clerical capacity; and (II) has completed 1 year of current contin- uous service in the same or similar posi- tions. (B)(i) The second sentence of paragraph (2) of this subsection applies with respect to the provi- sions of subparagraph (A) of this paragraph, to the extent that such provisions relate to pref- erence eligibles. (ii) The provisions of subparagraph (A) of this paragraph shall not, to the extent that such pro- visions relate to an individual under clause (ii) of such subparagraph, be modified by any pro- gram developed under section 1004 of this title. (b)(1) Except as provided under paragraph (2), section 5941 of title 5 shall apply to the Postal Service. Except as provided under paragraph (2), for purposes of section 5941 of that title, the pay of officers and employees of the Postal Service shall be considered to be fixed by statute, and the basic pay of an employee shall be the pay (but not any allowance or benefit) of that officer or employee established in accordance with the provisions of this title. (2) On and after the date of enactment of the Non-Foreign Area Retirement Equity Assurance Act of 2009— (A) the provisions of that Act and section 5941 of title 5 shall apply to officers and em- ployees covered by section 1003(b) and (c) whose duty station is in a nonforeign area; and (B) with respect to officers and employees of the Postal Service (other than those officers and employees described under subparagraph (A)) of 1 section 1916(b)(2) of that Act shall apply. (c) Officers and employees of the Postal Serv- ice shall be covered by subchapter I of chapter 81 of title 5, relating to compensation for work in- juries.