USPS algorithmic system cuts rural letter carrier pay
USPS algorithmic system cuts rural letter carrier pay
Occurred: May 2023
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The US Postal Service (USPS) was accused of developing an algorithmic system said to reduce the pay of most of its rural post carriers significantly, leading to accusations of shoddy development and implementation.
Designed to evaluate and compensate rural carriers based on the estimated time required to deliver mail on specific routes, USPS' new Rural Route Evaluated Compensation System (RRECS) led to 66 percent of rural carriers, or some 100,000 workers, having their pay cut by thousands of dollars.
The situation resulted in some carriers facing drastic reductions in their annual salaries; for instance, one carrier reported a 15 percent pay cut from USD 54,000 to USD 46,000, while another faced a USD 10,000 reduction after 24 years of service.
VICE reports that 'flaws' in its implementation have resulted in most workers unintentionally under-reporting the time it takes to deliver mail.
The USPS was also criticised for not disclosing how the algorithm operates, resulting in frustration and confusion among carriers regarding their pay calculations.
Three US senators asked (pdf) the USPS to delay implementing RRECS, noting USPS is 'struggling to deliver mail to rural areas, due in part to an inability to recruit rural letter carriers.'
RRECS
Operator: United States Postal Service (USPS)
Developer: United States Postal Service (USPS)
Country: USA
Sector: Govt - postal
Purpose: Calculate pay
Technology: Pay algorithm
Issue: Employment; Transparency
US Senators' letter (pdf)
Page info
Type: Incident
Published: May 2023
Last updated: January 2025