TOPICS
TOPICS
Postal Service health is still a concern
While there is little disagreement that the U.S. Postal Service is facing a severe financial crisis, lawmakers voiced concerns on Thursday over the proposed solutions, which include closing some branches and possibly reducing deliveries to five days a week.
GAO this week said it was adding the Postal Service to its list of "high-risk areas" needing attention by Congress.
It said the USPS is facing a "deteriorating financial situation" and is on track to end the year with a net loss of $7 billion. Its financial woes are due to the ailing economy and declining mail volumes as more people and businesses bypass snail mail for e-mail, text messaging and other forms of electronic communications.
Mail volume for fiscal 2008 declined by 9.5 billion pieces and had declined by double that amount for this year as of May.
At a House Oversight and Government Reform Federal Workforce and Postal Service Subcommittee hearing, lawmakers pressed the USPS for details on what criteria would be used in determining which of the proposed 3,200 suburban and urban branches under consideration would be closed.
USPS acting Vice President Jordan Small said fewer than 1,000 post offices out of the list of 3,200 are likely to be closed. The criteria USPS will use in determining whether to close a facility is a branch's proximity to other branches and the consuming habits of postal customers in that area.
He declined to give an estimate of how much would be saved by the closures and by eliminating Saturday deliveries. Small said USPS would have a better sense of the estimated cost savings in October when a study on such moves is complete.
But some lawmakers voiced concern about the potential impacts on their communities. "While I admit, the finances here are very grave ... there is a need to conduct ourselves with, I think, a thoughtful approach ... and do it in a way that causes the least amount of disruption," Federal Workforce and Postal Service Subcommittee Chairman Stephen Lynch, D-Mass., said. Rep. Gerry Connolly, D-Va., said many of his constituents who have long commutes to work would be unable to visit a post office if they are not open in the evening.
Del. Eleanor Holmes Norton, D-D.C., chastised the postal service for taking too long to implement the necessary reforms but then quizzed Small on whether any post offices in Washington are on the list of possible closures. For the most part, business groups dependent on the postal service said they support the proposed changes if they will help ensure USPS's viability.
But they voiced strong opposition to raising postal rates. Noting that the bad economy has hurt their industry as well, "mailers cannot shoulder another rate increase," the Direct Marketing Association's Jerry Cerasale said. Federal Workforce and Postal Service Subcommittee ranking member Jason Chaffetz, R-Utah, said lawmakers should consider providing USPS with economic stimulus funds and urged USPS to do more to make itself more relevant, perhaps through assisting in conducting the 2010 census.
COMMENTS
- A long time ago, it was said that the postal service provided their service through rain, snow, or sleet. That is not the case anymore--their quality of their service has seriously decreased. The post office needs to take very good look at their service and determine what needs to be done to improve their service (like weeding out their non-performing employees and taking steps for whatever other corrective actions that need to be done). A disgruntled customer. Darlene Johnson Posted August 10, 2009 10:58 AM
- Whenever someone in born, whenever someone dies,immigrates,gets married,goes to school,goes to jail what ever the activity,if a change of location or the need to disseminate information is required,prepaid mail is generated.Prepaid mail is the primary source of postal revenue.Everyone in the country could stop mailing tomorrow the post office would not miss a beat.John Potter and his gang wish to eliminate all full time clerks and carriers.Now that private mail processing companies have been provided with mail processing equipment by the Postal Service,the Postal Service can close the distribution centers that employ postal workers.Many companies have gone out of business because of the recession.The Postal Service is using this atmosphere to give the impression that they are saving money by reducing the number of full time employees and cutting back delivery to five days.Mr.Potter and his buddies are setting themselves up to be the only full time employees left when the deal is done.When the Postal Service becomes profitable,who will get the profit? The profit motive only came about when the arrangement was made between the equipment manufacturers and Postal Officials.Postal officials created mass mailers,provided them with the equipment and now they are getting rid of the full time employees so that they can make the system complicated.Once this is done Postal Officials will make postal operations opaque and they will be the owners.Postal rates will continue to increase without any consideration for the elderly and disabled.The Postal Service is a criminal enterprise.Put the Postal Service on the stock exchange and let the clerks and carriers be the primary stock holders along with the public.Put Mr.Potter and his buddies on contract along with the equipment manufacturers and the commercial mass mailers.Give them three years.If they can't demonstrate that a profit can be made from the type of mail that they have conspired to promote...terminate the contract and get some new managers. allen sanford Posted August 4, 2009 10:26 AM
- HELLO... Once AGAIN...First how about eliminating some of the waste we all keep hearing about? It seems the USPS is no longer a self supportive organization and if the government has to bail them out then why don't they regulate and install controls on them as they would any other company? I would first eliminate paying for all those expensive employee relocation payouts. Most of these aren't even required relocations but voluntary. I would then restructure the pay system from the top down. I would eliminate all those overpaid jobs e.g. those of Post Master right down to those of the janitors who start out with a salary higher than those of most skilled workers. I would then require Postal employees to pay more of their health benefits decreasing the amount paid by the USPS. SATOS Posted August 3, 2009 10:37 AM
