Postal Service can handle snow and rain, but Saturday delivery?
Postmaster, Congress, union battle budget crunch
By Alex Salta
The post office has long been known for getting the job of delivering the mail done through snow, heat, and dark of night. But what about making sure those precious parcels get to where they're going through massive budget cuts, incompetent management, and shifting customer behavior? The United States Postal Service may soon be finding out the answers to those questions, whether the mail-sending public is ready for it or not.
The USPS recently announced that it estimates to lose $238 billion over the next decade if everyone from lawmakers to union members don't start giving the agency more flexibility in the areas of setting delivery schedules, price increases, and labor costs. According to the USPS, mail volume is expected to decrease by about 26 billion pieces by the year 2020 as more customers lean towards the cheaper options of email and non-first class mail.
Last week Postmaster General John E. Potter told a group of lawmakers, union officials, and watchdogs that the USPS suffered a 13% drop in volume last year to go along with a $3.8 billion financial loss. And while that is certainly not good, Potter wasn't shy about presenting what he sees as possible solutions including putting an end to Saturday deliveries, longer delivery times, postage-stamp price increases, and possible layoffs. "At the end of the day, I'm convinced that if we make the changes that are necessary, we can continue to provide universal service for Americans for decades to come," Potter said.
Frederic Rolando, President of the National Association of Letter Carriers, is chief among those unimpressed with Potter's plan. "I do not believe that weakening our commitment of six-day service to the public will enhance the long-term position of the Postal Service as a critical element in our nation's economic infrastructure," Rolando told the Washington Post.
This isn't the first time Potter has made the call for such drastic changes. Last year the USPS pushed for deep reforms only to be rebuffed by lawmakers. This year however, buoyed by $4.8 million worth of studies by outside analysts like Accenture and McKinsey and Co, it seems that Potter's pleas are no longer falling on deaf ears.
While a June 2009 Gallup poll found a majority of Americans (52%) in favor of eliminating Saturday service if it resulted in lower costs, it is the proposed postage price increases and restructuring of USPS retiree benefits that may prove to be the most troublesome aspects of the plan for everyone from consumers to letter carriers.
The Postal Regulatory Commission's consent would be needed to increase the price of postage beyond the rate of inflation, a politically risky proposition, while Congress would have to overturn a 2006 law requiring the USPS to prepay retiree health benefits at an annual cost of $5 billion. It's that second point that could ultimately prove to be the undoing of Potter's plan. While the postal service has survived plenty in recent years, asking it to weather the inevitable labor disruption brought on by an unhappy union fighting for its retirement benefits may prove to be a bridge too far.
Last year Potter proposed consolidating 3,000 post offices, a plan that raised hackles from pretty much every corner. Since that plan was shot down and the USPS's situation shows no signs of improvement the time for radical and possibly painful changes may finally be at hand.
The USPS hasn't been immune from criticism in recent months. OhMyGov recently reported on the agency's myriad problems and bizarre pseudo-scandals. And while it may be tempting to bury the USPS as a bloated, inefficient bureaucratic dinosaur...the fact remains, somebody's gotta deliver Grandma's $12 Christmas check. Potter's proposals are drastic to be sure, but without any viable alternatives being offered by lawmakers or the union they may prove to be the only option.
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