Facing $238 billion in losses over the next decade, the U.S. Postal Service (USPS) announced it will end Saturday mail delivery in 2011, unless Congress allows it to change the way it does business. If Congress does decide to save the Saturday mail, it will not be the first time.
As long ago as 1957, the Postal Service, already having financial hardships, actually did end Saturday mail delivery - for exactly one day. On Saturday, April 13, 1975, the mailman did not show up at anybody's house. President Dwight D. Eisenhower, clearly hearing the public's protests, signed a bill hustled through Congress increasing federal funding for the post office by $41 million, and by the next Saturday, you had mail.
Once again in April 2001, the Postal Service Board of Governors, then faced with a $3 billion annual deficit, suggested a five-day mail service. Congress bristled at the idea and by July 2001, the Postal Service dropped the idea.
Postal Times Have Changed: While Congress might again step in to salvage Saturday mail, two important things have changed for the Postal Service between 1957 and today.
In 1957, the U.S. Postal Service was still the U.S. Post Office Department, a regular Cabinet-level federal agency. As such, its entire operating budget was set annually by Congress as part the federal budget process. But in 1970, the Postal Reorganization Act of 1970 turned the Postal Service into a quasi-federal agency, to be supported mainly by the sale of postage and other postal products and services. The only financial support the USPS now gets from Congress are funds used to compensate USPS for postage-free mailing for all legally blind persons and for mail-in election ballots sent from US citizens living overseas.
In 1957, there was no email, no voice-mail, no Facebook or Twitter. No competition for a First-Class U.S. postage stamp. Today, the USPS says its surveys show that a majority of the public would not object to a 5-day mail delivery schedule.
How Congress Might Help: At least three of the money-saving changes the USPS says it needs to make will require the approval of Congress:
- Restructure the Postal Service Civil Service Retirement System to be consistent with FERS - the Federal Employees Retirements System - the retirement system covering all regular federal employees, including members of Congress.
- Allow USPS to base its prices on demand for each individual mailing product and its costs, rather than capping prices for every postage class at the rate of inflation.
- Permit the Postal Service to evaluate and introduce more new products consistent with its mission, allowing it to better respond to changing customer needs and compete more effectively in the marketplace.
"Lifestyles and ways of doing business have changed dramatically in the last 40 years, but some of the laws that govern the Postal Service have not," said Postmaster General John E. Potter in a press release. "These laws need to be modernized to reflect today's economic and business challenges and the dramatic impact the Internet has had on American life."
Also See:
End of Saturday Mail Moves Closer
U.S. Postal Service: Government Agency or Private Business?
Comments
It is a fraud when the US Congress loot 73 Million from the USPS Pension system the past two decades through accounting gimmicks so Potter can say the USPS is in the Red. The Congress uses the Post Office as a cash cow to fund the military indirectly and off set the deficit to make the deficit look better. The result is punish the crafts and blame it on them. This Service was never intended to be a private operation because it included every citizen as a delivery point.
Key words here…”the “USPS” says its surveys show that a majority of the public would not object to a 5-day mail delivery schedule. And of course the USPS would never intentionally use false info in order to obtain money under false pretenses..unless they (usps) thought they could get away with it….hmmmm
Key words here…”the “USPS” says its surveys show that a majority of the public would not object to a 5-day mail delivery schedule.”…hmmm unless they thought by falsifying info they could obtain money under false pretenses…i believe they say to craft employees that this is a fire-able offense… Time to fire Potter
This week Obama signed the new Pact Act that stops all companies from mailing cigarettes thru the usps..What a crock..they need money and he’s so arrogrant that he once again hits the people without much money so that they must now pay higher prices and higher shipping prices. Why?? What business is it of his?? Another liberal move because they know better than you..They ship porn all day long but no more cigarettes or tobacco..What a waste of the government’s time.
In the early 90′s, I worked for a Company (Arlington, Texas) which designed mail sorters to the USPS.
The Regan Admin. refused to approve increase such as what this article is stating. He told Congress and the Senior Postal service to become cost effective and/or the USPS should probably be privatized.
The USPS revisited there entire mail process and concluded 2 major issues
1.0 the amount of handling/sorting (manually) was the overwhelming causing serious cost. They realized that automated mail distribution should be identified throughout the US and provide equipment accordingly.
The smaller post offices would be provided all the sorted mail required and should reduce headcounts accordingly.
2.0 Most carriers where replaced with contract labor which reduced the delivery (manpower), vehicles and maintenance which had a profound cost reduction.
3.0 Union concessions is also another avenue which should be pursued for potential opportunities…wages, hours paid, benefits cost
Today; because of our electronic capabilities its become more evident that the USPS should consider doing the following:
a. Congress should recommend engaging some consultants to assess there true needs in terms existing procedures with associated cost, # of buildings, asset’s, manpower and truly understand where the cost are.
Without this type of analysis, any decision w/o quantified data would only be adding insult to injury for the obvious reason.
In the 1990′s I worked as a contract rural mail carrier & was told in training that post office actually made a profit, especially though it’s sales to collectors. They gave the profit back to the federal government to appear they made no money! I don’t know if this is true now or not but I am suspicous of these new changes.
I do live in a rural area and I frequently can’t get to the post office because of their limited hours. I bought a farmer size mail box so my packages could be delivered to my home. I cannot afford to drive all the way into town to mail something on Saturday! Or to pick something up either.
There will be additional costs to process and deliver all that mail on Monday. Plus the package & Priority Mail will be slower. If I order plants from a nursery they will sit at the post office which is not good. People actually still order chicks (baby chickens) through the US mail!!!
Cutting services and making package deliveries slower, providing slower service is not the way to make a busines thrive!! People will pay more bills by phone, internet, and the last service I use regularly— the package delivery, won’t be as good, so they will lose that business to Fed Ex & UPS. This plan sounds like a death nell to me.
USPS is the only decent carrier left. And I LOVE getting my mail on Saturdays. All this internet bullcrap is gonna destroy this Nation, just like Ross Perot said about our jobs being sent to Mexico. This is another reason to blame the Obama Admin.
1. Cut back Military Supplies= LOST MY JOB
2. Fiscal Cliff= Getting back the same amount of taxes as a Father of 1 and I’m a working Father of 4!
3. Set up a “shooting” Call it Sandy Hook, (Could do a better job on the Parents interviews, and actually send more than 1 YES 1 Ambulance) and BLAME GUNS. Now try to BAN EM and cause hundreds of thousands of very talented CNC Machinists to LOSE THEIR JOB.
4. Take away Sat mail???? Really. What about the Subs. MORE LOST JOBS!
SUMMARY. The 23,000,000 (yes 23 million) jobs that are gone now is NOTHING compared to when this Fake American President gets done with this Country! But the Bible says all things will be done this way, now it’s time for 1 world currency, and if you investigate it… WER’E VERY CLOSE. The Chinese won’t even let Eqypt borrow money now that it is lead by the MUSLIM BROTHERHOOD. BUT STUPID AMERICA, WILL BORROW THE $ FROM CHINA AND GIVE IT TO THEM TO AIM AT US! Really???? Wer’e giving Egypt 20 F16′s and 200 M1A1 ABRAMS TANKS AND WE CANT SAVE OUR OWN FLIPPIN JOBS? NOW NOT EVEN FEDERAL JOBS???? I’m CONFUSED. Maybe Car Companies, CEO’s, PRESIDENTS,POWER COMPANIES etc. could “RE STRUCTURE THEIR RETIREMENT” COMON AMERICA, WERE BETTER THAN THAT. I think about 100,000 people (gun owners) Should throw their computers in the trash. For 1 I want my darn bills in paper, and in my mail box, or I’m NOT PAYING! TRY ME
GOOD POINT. Lets just give all our business to UPS and Fed Ex, to those Drivers that make $35 hr to sleep, and toss our packages around like their foam (I know I worked BOTH) And what’s cheaper? A 8×8″ box by UPS or USPS? USPS People!!!!! I ship items all the time, and finally went to the PO and what I’d been paying $30 for was $5 per package!!! No wonder the “Drivers make $35 an hr. WE PAY EM. COMON AMERICA LETS GROW UP