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Virginia mail service improves; second Trump push to privatize USPS ‘unlikely’

U.S. Postal Service operations have continued to improve, but a bipartisan coalition of state leaders say more work is needed to get the service to a level Virginians deserve.

Virginia was ranked at the bottom for on-time delivery in October 2023, at the start of the federal government’s fiscal year. Just over 66% of mail was delivered on time, compared to a national average of 87.2%, according to a Postal Service tracker.

Key reforms have pushed the state up in rankings. The state remained in the bottom 10 at the end of the fiscal year in September, with just over 81% of mail delivered on time.

As of Nov. 8, over 86% of the state’s mail is delivered on time.

The Delivering for America plan was introduced in 2021 to make the Postal Service financially stable and competitive with private mail delivery services. One part of the plan was the launch of a new processing network, with 60 regional processing and distribution centers around the U.S.

The first one was rolled out in in 2023, and a spate of issues began.

A bipartisan coalition of state lawmakers, who represent urban and rural areas, contacted Postmaster General Louis DeJoy last year to share widespread constituent reports of limited delivery.

Earlier this year, the coalition toured the Sandston center after an audit pointed to significant problems at the location.

There were issues during the transition to the regional processing network, according to U.S. House Rep. Jennifer , D-4th, who toured the center located in her district.

Atlanta was also one of the first cities to implement the plan, according to McClellan. Georgia is ranked the worst in the nation for on-time deliveries, with 35% of mail delivered late. Much of the mail in Virginia goes through Atlanta, according to McClellan.

“Once it’s fully implemented the way it was intended, I do think [it] would lead to improved delivery times and improved efficiency of the mail everywhere,” McClellan said. “It’s just that transition in Richmond and Atlanta were horrible.”

The Postal Service was not transparent with customers or Congress through the transition, which caused further issues, according to McClellan. Congress has the ability to hold the Postal Service accountable for poor service because it controls the budget for the service.

“We have told them they need to do a much better job of being transparent with these changes,” McClellan said.

State lawmakers will continue to hold the Postal Service accountable until reliable mail service is restored for all Virginians, according to , R-1st.

The work of the bipartisan coalition to support Virginia constituents has been a “silver lining” in the experience, according to Wittman. He sent one of the first letters to DeJoy, worked with the coalition to demand answers, toured the Sandston facility and continues to receive updates from the Postal Service.

“While any improvement in on-time mail delivery is welcome progress, there’s much more work to be done to attain the level of reliable mail service that Virginians deserve,” Wittman stated. “For over a year now, the mail service provided to Virginians and businesses across the commonwealth has been inexcusable, and the lack of transparency and communication by the Postal Service has been one of the most frustrating roadblocks I have faced since coming to Congress.”

Second push for privatization ‘unlikely’

Some members of the congressional delegation feel confident there would be pushback if returning President-elect Donald Trump tried again to privatize the service.

Trump called for the privatization of the Postal Service in his first term. A year after his inauguration, Trump created a task force to evaluate the service’s operations and finances, according to his archived presidential . Trump stated it was on an “unsustainable financial path” and wanted it restructured to prevent a taxpayer-funded bailout.

The Postal Service had net losses that totaled $69 billion in a 10-year period, according to the task force. Some suggestions of the task force were to deliver mail less frequently and increase service charges.

McClellan does not expect the incoming administration to attempt to privatize the service. Congress would have to approve the privatization, she said.

Although many have access to private mail services, those who rely on the Postal Service “heavily rely on it,” according to McClellan.

“So whether it’s disabled people, whether it’s older people, people in rural areas — they will be hurt the most by efforts to privatize,” McClellan said.

Privatization would mean significant benefits and pay changes to the 600,000 people employed by the Postal Service.

A strong Postal Service is a bipartisan issue, McClellan said.

“I think there are a lot of people on both sides of the aisle that would oppose efforts to privatize,” McClellan said.

U.S. , D-Va., has also worked to improve the state’s on-time mail delivery and minimize disruptions.

does not think efforts to privatize are likely under the second Trump administration.

“I am not currently expecting the administration to push that kind of proposal,” Kaine said.

is a program of Virginia Commonwealth University’s Robertson School of Media and Culture. Students in the program provide state government coverage for a variety of media outlets in Virginia.

VACUL to merge with regional credit union group Jan. 1

Members of the Virginia League and the voted Thursday to approve the Virginia league’s consolidation with the regional organization. The merger will be in effect Jan. 1, 2025, the two organizations announced Friday.

“Thanks to the support of the membership, we are embracing a powerful opportunity to strengthen credit union engagement and our collective advocacy impact,” Jeff Bentley, VACUL board chair and president and CEO of Northwest Federal Credit Union, said in a statement. “We are now positioned to provide more customized services, innovative solutions and a stronger voice for our members.”

Announced in September, the consolidated group will represent 386 and 31.5 million members in Alabama, Florida, Georgia and Virginia.

LSCU President Samantha Beeler will lead the , and the combined service corporation would be led by Steve Willis, president of Leverage, which encompasses 12 companies and more than 30 partnerships in the credit union industry. Beeler and Willis were named in April as dual executive leaders of LSCU, which represents nearly 300 credit union members with almost $200 billion in assets and 12.4 million members.

“We are elated to bring together the best of both legacy organizations to provide greater value for our members and the communities they serve,” Beeler said. “Together, we will be a powerful voice and resource in supporting and growing credit unions across our expanded region.”

Bassett Furniture reduces workforce by 40

Bassett has announced a series of and retirements in a bid to better match its cost structure to the current rate of business, the home furniture manufacturer and retailer said in a news release Wednesday.

This round of reductions, which included layoffs, early retirements and attrition, impacted 40 workers. Since the start of the year, has reduced its workforce down to around 1,250 workers from 1,400, an 11% reduction.

The workforce reduction is inline with its restructuring plan announced last July. Initially projected to save the company between $5.5 million and $6.5 million annually, these layoffs will now allow for savings between $8 million and $9 million, Bassett said. The company expects to record a $500,000 severance charge in the current quarter.

“The cutback announced today reinforces our commitment to press on with the restructuring plan we announced back in July,” Bassett CEO Rob Spilman said in a statement. “These decisions were quite difficult as several long-time associates were involved. While we have not seen a measurable uptick in orders, the actions that we have already taken have begun to yield better results.”

The restructuring plan has five points:

  • Drive organic growth through Bassett-branded retail locations, omnichannel capabilities and enhanced customization positioning to expand dedicated distribution footprint.
  • Rationalize U.S. wood manufacturing from two locations into one primary location, supported by a small satellite operation.
  • Optimize inventory and drop unproductive lines.
  • Improve overall cost structure and invest capital in refurbishment of current retail locations.
  • Close the Noa Home e-commerce business.

“Specifically, we have completed the consolidation of our Virginia-based wood production facilities and have seen better performance from the remaining concern the past two months,” Spilman continued. “Noa Home, our Canada-based e-commerce furniture foray, has officially shut down, and we are liquidating remaining inventory …

“We received several new commitments for our Bassett Design Studio concept at the [High Point] Market, and our e-commerce sales have consistently grown the past five months. We head into fiscal 2025 with our strong balance sheet intact and resolved to improve our financial results no matter what the overall economy presents.”

Bassett has struggled to remain profitable as of late, having reported losses for the past five quarters.

Inova makes acting CFO permanent

After serving in an acting capacity since March, Rick Talento is now ‘s permanent , the -based regional announced Wednesday.

Talento will continue to be responsible for the system’s financial operations and will also be responsible for planning and forecasting. He succeeds Alice Pope, who is now of Novant Health.

“I am honored to be named chief financial officer of ,” Talento said in a statement. “This is an exciting time to be part of an organization that is deeply committed to excellence in patient care, innovation and community impact.”

Talento, who has 35 years of experience, joined Inova as corporate controller in the mid-’90s. After 10 years, he left Inova to enter the private equity sector and later served as a hospital senior vice president and CFO at Ascension, a health system based in St. Louis.

Talento returned to Inova in 2013 and has held several leadership positions since, including vice president of finance for Inova Mount Vernon, Inova Alexandria and Inova Fairfax hospitals. Before he was named acting CFO, Talento oversaw finance for Inova’s acute hospitals and service lines.

“We are thrilled to have Rick assume the role of chief financial officer,” Inova President and CEO Dr. J. Stephen Jones said in a statement. “Rick brings not only a wealth of experience and a proven track record of strategic financial leadership but also a deep institutional knowledge of Inova’s financial operations.”

Talento holds a bachelor’s degree in accounting from the University of Maryland and is a certified public accountant.

Inova Health has more than 24,000 employees across its five hospital campuses and multiple other care facilities, including Northern Virginia’s only Level 1 trauma center. The system treats more than 1 million patients a year, with more than 4 million patient visits annually.

Glen Allen’s Snagajob is acquired by Boston’s JobGet

JobGet, a Boston-based hourly listings , last week announced that it has acquired rival in .

The financial terms of the deal were not disclosed, according to Tony Liu, cofounder and CEO of JobGet.  

Snagajob will operate as a standalone entity within JobGet, creating the United States’ largest hourly workforce job platform. With the , JobGet boasts in a news release that it now reaches over 100 million hourly workers, covering nearly the entire hourly workforce in the United States.

The two companies will have more than 100 employees when combined, according to Liu. “The majority of the employees have been brought on board to JobGet,” he said in a statement to Virginia Business.

A man wearing an Oxford shirt.
Tony Liu is cofounder and CEO of JobGet. Photo courtesy JobGet.

Snagajob, which briefly changed its name to Snag in 2018, had about 230 working at the Innsbrook Corporate Center in 2019, according to one news report.

Liu said on Friday that JobGet is a remote-first company so there will not be a snagajob office in Glen Allen in the future. However, he wasn’t certain when the Virginia office would close or if it will close.

Snagajob’s CEO Keith Forshew and Dan Li will work as advisors to JobGet, according to Liu. The company’s senior vice president of product and chief officer will join the team at JobGet, he added.

Founded in 2019, JobGet reports facilitating millions of hires for tens of thousands of businesses. Its features include job matching using artificial intelligence and instant job interview scheduling. In 2022, JobGet raised $52 million in Series B funding.

Snagajob, which launched in 1999, connects 6 million job seekers to employment opportunities each month and partners with 24 of the top 25 employers of hourly workers, as well as mid-market and small business employers.

“Since Snagajob was founded 25 years ago, the company’s mission of helping hourly workers find right-fit jobs has never wavered, and we’re confident that this mission will not only continue but thrive as part of JobGet,” Sangajob CEO Keith Forshew stated in a news release. “With access to the resources on JobGet’s platform, Snagajob’s job seekers and employers will continue to have a best-in-class experience and make meaningful employment connections.”

 

BDO USA-Tracy Lewis

BDO USA has named Tracy Lewis Assurance Practice Leader of the firm’s Richmond and offices. Lewis focuses on providing assurance services to public and private companies. With 22 years of experience, her industry knowledge includes manufacturing, professional services, financial services, and private equity.

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Owens & Minor sues Anthem, accusing insurer of mishandling claims

Mechanicsville-based logistics and supply company filed a federal against this week, claiming that the insurer mismanaged funds for Owens & Minor’s employee plan and allegedly violated the Employee Retirement Income Security Act, or ERISA.

According to the complaint filed Monday in the U.S. District Court for the Eastern District of Virginia, Owens & Minor requested its employee health care plan’s claims data for an audit in September 2021, but Anthem “transformed what should have been a simple transfer … into a nearly two-year game of ‘hide the ball.'” In 2023, Owens & Minor sued Anthem to obtain the data and received a portion of the information in July, according to this week’s lawsuit.

“Plaintiff’s analysis to date has showed tens of millions of dollars of damages to the plan as a result of defendant’s neglect and misconduct,” the complaint says. Under ERISA, insurance companies must “act solely in [beneficiaries’] interests,” but Owens & Minor accuses Anthem of “boundless avarice and neglect,” including “paying more for health care claims than was even billed, securing kickbacks from providers, double-paying claims and pocketing rebates belonging to plaintiff,” according to the lawsuit.

Owens & Minor specifically claims that Anthem — hired by the company in 2017 to manage its self-funded insurance plans and health care claims for the plans — violated ERISA by “causing the [health insurance] plan to grossly overpay claims, including payments above 100% of billed charges; causing the plan to pay the same medical claims multiple times; improperly classifying affordable generic drugs as specialty pharmaceuticals; withholding pharmaceutical rebates from the plan; steering, requiring or otherwise encouraging plan participants and beneficiaries to use defendant-affiliated providers who charged more for the same or lesser quality of care and who passed on the excess of these payments to defendant or its affiliated companies,” among other alleged violations included in the complaint.

Owens & Minor seeks a jury trial and damages in an amount to be determined at trial, according to the lawsuit.

A spokesperson for Anthem Blue Cross and Blue Shield said Thursday it does not comment on pending litigation.

Owens & Minor announced in July it would be moving its headquarters from Mechanicsville to western Henrico County by the end of the year. The company reported $10.3 billion in 2023 revenues, up from $9.9 billion in 2022, and employs approximately 20,000 worldwide.

Stephen Edwards tapped for national port association board

The American of Port Authorities announced Thursday that Stephen Edwards, CEO and executive director of the , which runs the , has been elected to a two-year term on the AAPA’s board.

Members elected the board during the AAPA’s Oct. 28 convention in Boston, which had more than 800 attendees. The AAPA serves as the unified voice of the seaport industry, representing more than 130 public port authorities in the United States, Canada, the Caribbean and Latin America with over 4,000 members.

Edwards, according to the AAPA release, brings to the board “global maritime expertise, focusing on strategic growth and operational excellence.” Other new members include Steve Ribuffo, director of the Port of Alaska and a retired U.S. Air Force colonel, and Kristine Zortman, executive director of the Port of Redwood City in California.

“I am thrilled to work with this exceptional group of leaders over the next two years,” Cary Davis, AAPA president and CEO, stated. “Their diverse expertise and commitment to the industry will be instrumental in driving progress, overcoming the challenges and seizing the opportunities in front of our ports.”

Edwards joined the port in 2021 after serving as CEO of TraPac, Global Container Terminals and Ports America. He also serves on the Virginia Economic Development Partnership’s board.

In fiscal 2024, the Port of Virginia processed 3.5 million twenty-foot equivalent units, a 2% increase over the previous year.

In fiscal 2024, the port reported its second-best fiscal year performance ever in twenty-foot equivalent unit (TEU) movement, processing 3.5 million TEUs for a 2% increase over fiscal 2023. 

 

BAE Systems lands $202M in Navy ship repair contracts

Falls Church-based Systems Inc.’s unit has received two U.S. Navy contracts worth a combined $202 million for maintenance, modernization and repair of two vessels.

The U.S. arm of British giant announced the awards Monday. Its employees and their subcontractors will begin working on the guided missile destroyer USS Laboon (DDG 58) and the amphibious assault ship USS Wasp (LHD 1) in February and March 2025, respectively.

“The award of these two contracts will provide extensive work for our Norfolk shipyard team,” David M. Thomas Jr., vice president and general manager of BAE Systems Norfolk Ship Repair, said in a statement. “We look forward to using our proven experience on recent LHD and DDG work to return these ships to the fleet in excellent condition.”

According to the Department of Defense’s mid-October announcement of the awards, the Norfolk Ship Repair unit received a $114.8 million firm-fixed-price contract for work on the USS Laboon, commissioned in 1995. The contract also includes options that, if exercised, would bring its total value to $117.9 million.

BAE Systems will dry-dock the ship to perform underwater hull maintenance and repair the ship’s main propulsion system, preserve internal ballast and fuel tanks and the external superstructure, and rehabilitate crew berthing and dining compartments.

The $87.58 million firm-fixed-price contract for work on the USS Wasp includes options that, if exercised, would bring its total value to more than $104.69 million. The current USS Wasp is the 10th ship to carry the name and was commissioned in 1989. Work on both ships is expected to be completed by February 2026.

On the Wasp, BAE Systems will perform mechanical work, inspect and repair interior hull structures and refurbish habitability spaces for the crew and Marine troops. The company’s shipyard previously worked aboard the Wasp from February 2021 to April 2023.

The contractor’s Norfolk shipyard has about 900 employees.

Earlier this year, the Norfolk team began working aboard the dock landing ship USS Carter Hall, and the shipyard is currently finishing repair periods aboard USS Kearsarge, a Wasp-class ship, and destroyer USS Nitze.

BAE Systems has about 41,000 employees worldwide and reported $13.6 billion in 2023 revenue. In addition to its Norfolk shipyard, the company has one each in Florida and California.

UPDATE: Botanical garden workers vote to unionize

Updated Nov. 22

RICHMOND, Va. – workers voted 37-13 in favor of on Nov. 21.

The workers filed for union representation last month amid employee-voiced workplace concerns, which ranged from lack of equipment to safety policies.

This is the first group of botanical garden workers to be represented by the International of Machinists, or IAM. They will join the IAM Local 10 in Richmond, according to IAM’s .

The unionized garden workers will soon elect their union representatives to participate in good-faith collective bargaining negotiations with management. This committee will seek to prioritize top issues determined democratically.

“I don’t want to speak on behalf of all 70 that are in the unit,” said Eryn Boyle, a member of the horticulture department who has worked there about a year. “So we will put out a survey and have everyone comment on what their priorities are.”

The workers hope that their efforts will improve the experience at Lewis Ginter for management and guests as well.

The garden, which spans over 82 acres in , has won national accolades as a destination. The Dominion Energy GardenFest of Lights was ranked first in USAToday’s top 10 botanical garden light show list last year.

The garden employs about 60 workers, but also relies on an extensive volunteer network. Employees from multiple departments at the botanical garden, including horticulture, education and operations, expressed concern that their voices and suggestions are not being heard by their management.

While specific examples were given during interviews, employees requested they not be published in detail over fear of retaliation.

The workers, under the group name LGBG Workers United, officially began the process of unionization with the National Relations Board in October, according to their Instagram page.

IAM was founded in 1888 and historically represented machinists. Since then, it has expanded to include other professions such as architects, library workers and yoga instructors, according to Bridget Fitzgerald, an IAM union organizer.

Lewis Ginter would be the only garden it represents, but not the only garden to unionize. Portland Japanese Garden employees in Oregon unionized earlier this year.

Lewis Ginter employees reached out to other unions over the summer, but did not receive any responses until IAM, according to Fitzgerald.

“There isn’t a union for every single profession,” Fitzgerald said. “And as I said, we have looked for opportunities to help workers where we can and when we can.”

Fitzgerald thought that it made sense for IAM to potentially represent workers from the garden, partially because one of the oldest local IAM lodges is based in Richmond.

Staff had to show at least 30% of its workforce was interested to start union proceedings, according to the labor board. This is usually determined by a petition or authorization cards. A secret-ballot election is then held by the workers to officially call for union representation, requiring a simple majority to pass.

The union representatives elected by the workers and the company management will be legally bound to negotiate employment terms in good faith.

Garden employees say they want a voice

These collective bargaining negotiations often tackle wage adjustments, overtime benefits and improvements to working conditions.

The efforts to unionize have bolstered employee morale and increased camaraderie among the different departments according to Boyle.

“I personally feel a lot more empowered, because for a while I was feeling very hopeless and stuck,” Boyle said. “The people feel like they’re making a difference and want to stay here, and want to make things better and see it through.”

At least five employees expressed a great love for their and a desire to see the garden succeed and grow. They are proud of the work they do, even if they consider their job conditions to be less than ideal.

“I love my job, and it’s what I’ve studied and what I want to do with my life,” said Clare Reines, a horticulturist at Lewis Ginter. “I love working at the botanical garden because I can combine art with plants.”

Some garden workers were unsure about joining a union, but the group spearheading the push believes unionization is the best thing for employees, including management. They said it will allow them more of a voice when future decisions are made.

Garden management response

The garden management was initially concerned a union representative might come between managers and the workers, according to Boyle.

Representatives from Lewis Ginter management declined to answer questions, but referred to an official statement, sent before the vote.

The statement reads: “We cannot comment on the union’s petition at this time out of respect for the rights of everyone involved and the legal process. What we can convey is that Lewis Ginter Botanical Garden values employees for their individual talents and skills. We are pro-employee and work with staff individually and personally. That is why the majority of our operating budget is dedicated to employees in the form of increased funding for professional development, increased benefits and raises each of the last four years ranging from 3-7%. As an independent, non-profit organization that is wholly dependent on donors and operational revenue, the work of the Garden staff is unique and essential to maintaining a destination that is open to the public throughout the year.”

The garden hired a union-dissuading agency in an attempt to dissuade workers from voting in favor of the union, according to Fitzgerald.

Lewis Ginter management did not respond to a follow up email about the firm it hired.

“It’s [employee] labor that makes this place the very tranquil environment that it is,” Fitzgerald said. “They’ve got ideas, they’ve got suggestions.”

Fitzgerald encouraged members of the Richmond community who support worker efforts to voice their support while enjoying the attractions of the garden.

Virginia union growth increases

Arborists at TrueTimber, a tree care company based in Richmond, voted to join IAM this summer. Their vote to unionize passed despite efforts by management to prevent it. The company hired a union-busting firm after pulling the plug on a promise to pass ownership to the employees, according to IAM.

Union membership in Virginia increased from 3.7% to 4.3% between 2022 and 2023, according to the Bureau of Labor Statistics. Median union wages were 15% higher than nonunion wages, according to data from the same report. National union membership numbers showed little change over that time frame.

Noah Dalbey, another Lewis Ginter worker in the operations department, said unionization isn’t the extreme change some believe it to be.

“The way the consultants are framing it is they’re kind of trying to make it seem like we’re trying to go for some big radical change that is going to change everything at the garden,” Dalbey said. “All we want is a chance to have a say … to change our workplace.”

is a program of Virginia Commonwealth University’s Robertson School of Media and Culture. Students in the program provide state government coverage for a variety of media outlets in Virginia.