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Robert Longley

Postal Service Told to Speed Up the Cost-Cutting

By January 17, 2013

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Blaming the failure of Congress to pass postal reform legislation, the Postal Board of Governors has directed the U.S. Postal Service (USPS) to speed up its implementation of proposed delivery service cutbacks and other cost-cutting initiatives.

Stating that the USPS "cannot wait indefinitely for legislation," the Board of Governors directed USPS management to accelerate the restructuring of Postal Service operations to further reduce costs in order to strengthen Postal Service finances.

A few of those proposed cost-cutting initiatives that would most impact postal customers include cutting mail delivery to five-days or even three-days a week, ending all door-to-door delivery, slowing down mail delivery and closing local post offices.

Also See: No Saturday Mail Plan Snubs Rural America

It's not that the USPS hasn't been trying. According to the Postal Board of Governors, the Postal Service has shaved its "annual cost base" by about $15 billion and reduced the size of its career workforce by 24% or 168,000 employees, while still delivering "record levels of service to its customers." Yet, in 2012, the USPS exceeded its debt limit, forcing it to default on its $11.1 billion in mandated employee retirement pre-payments to the U.S. Treasury, all of which contributed to a record single-year loss of $15.9 billion.

Also See: The Postal Reform Act of 2011

When the USPS finally announced it was approaching financial insolvency in May 2011, Postmaster General and USPS CEO Patrick R. Donahoe stated, "We are committed to working with Congress and the administration to resolve these issues prior to the end of the fiscal year. The Postal Service may return to financial stability only through significant changes to the laws that limit flexibility and impose undue financial burdens." However, as the Postal Board of Governors noted, Congress has not yet been equally committed to keeping America's Postal Service running.

Also See:
5 Ways to Survive Without the Postal Service
7 Ways to Save the Postal Service
Postal Regulators Challenge Post Office Closure List

Comments

January 17, 2013 at 6:40 pm
(1) david tibby says:

the congress take in 60 % and post office takes in 40 % problem solve
post office 60 % congress 40 % that easy.with the nothing easy ( greed )
david tibby ?

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