postalnews blog

WASHINGTON, DC — The U.S. Postal Service announced that mail volume was down 3.0 percent, or 1.7 billion pieces, for the first quarter of fiscal 2008, according to preliminary financial results presented today to the Postal Service Board of Governors.

First-Class Mail volume decreased 3.9 percent and Standard Mail decreased 2.6 percent in the quarter ending Dec. 31, 2007.

Chief Financial Officer and Executive Vice President H. Glen Walker attributed the declining mail volume to “disturbing trends” in the overall U.S. economy.

“Unfortunately, two key sectors of the economy — finance and housing — suffered a downturn in the first quarter, and they’re both heavy users of the mail,” said Postmaster General John Potter.

Net income for the first quarter is estimated at $672 million on revenue of $20.4 billion.

“Although revenue is higher than in the same quarter last year, due to the price increase last May, it is $500 million less than expected,” Potter said. “We’re working to offset the disappointing revenue with cost reductions and new strategies for growth.”

Final first-quarter financial results will be released in February.

First Quarter Service Scores

National on-time performance scores for the delivery of First-Class Mail hit all-time first-quarter highs in two of the three categories the Postal Service tracks. National overnight service was 96 percent on-time – a first for three quarters in a row. Two-day service was 93 percent on-time. Three-day performance was 88 percent, a two-point improvement over the same period last year.

“These are excellent service scores for the first quarter,” said Potter, ”especially given winter weather conditions and our busiest mailing season.”

First-Class Mail performance is measured independently by IBM Global Business Services. The process measures First-Class Mail from the time it is deposited into a collection box until it is delivered to a home or business.

Other Board Action

The Board today approved three facility projects: expansion of the processing and distribution centers in West Sacramento, CA, and Providence, RI, and the purchase and renovation of an existing building and site to serve as the Perris, CA, Delivery Distribution Center.

U.S. Post Office Mural - "The Law - Texas Rangers" - Smithville, Texas, originally uploaded by almostlindy.

“This vault-style post office building, built by the W.P.A., opened on 1 March 1938. Lyndon Johnson dedicated it the following Sunday. A mural titled “The Law - Texas Rangers” was painted in 1939 by Minette Teichmueller of La Grange, one of only six women who painted Texas post offices.”

Care Package, originally uploaded by lauralemur.

From the description on Flickr:

“Two months ago I had purchased two Victorian era cabinet card photos, and had given them up as being lost in the mail. Yesterday, this package arrived - and I knew the apology notice on front did not bode well for the contents inside…”

…and click here to see what was inside…

From Linn’s Stamp News:

Big pay increases approved for top Postal Service officers
BY BILL MCALLISTER

Postmaster General John E. “Jack” Potter and seven other senior United States Postal Service officers have been granted large raises, bythe Postal Service board of governors.

The increases were disclosed by the Postal Service Jan. 3 in response to a Freedom of Information Act request filed by Linn’s.

The raises were approved May 2007 retroactive to Jan. 5, 2007,under the Postal Accountability and Enhancement Act of 2006, which removed the top Postal Service officers from the federal pay cap that restricts the pay of most federal workers to that of no more than the vice president of the United States.

Citing a need to raise the pay of the Postal Service’s top officers, Congress voted in December 2006 to give the postal board of governors authority to boost the pay of up to 12 Postal Service officers up to an amount “not to exceed 120 percent of the vice president’s total annual compensation.” U.S. vice president Dick Cheney is currently paid a salary of $215,700.

The board authorized increases for eight officers.

Potter, the 72 nd postmaster general, got the biggest increase. His salary jumped nearly 39 percent to $258,840, up from $186,600 in 2007.That’s an increase of $72,240 and the maximum pay allowed to Postal Service officers.

The pay of Patrick Donahoe, deputy postmaster general and chief operating officer, jumped to $235,000 from $186,000, a 26 percent raise.

The pay of Harold G. Walker, chief financial officer and executive vice president, rose to $215,000, up from $186,000.

Anthony Vegliante, chief human resources officer and executive vice president, saw his pay rise to $225,000, up from $183,100.

The pay of Anita Bizzotto, chief marketing officer and executive vice president, rose to $225,000, up from $183,100.

The pay of Mary Anne Gibbons, general counsel and senior vice president, rose to $215,000, up from $177,800.

William Galligan, senior vice president for operations, saw his pay rise to $215,000, up from $183,100.

Robert Otto, chief technology officer and vice president, saw his pay rise to $205,000, up from $177,800. Otto retired Oct. 1 and a successor has not yet been named.

Potter’s pay had been at the same level as that of cabinet officers, a reflection of the days when the postmaster general was a cabinet post. Cabinet members will be paid $191,300 this year, according to the Office of Personnel Management.

In releasing the salaries, Postal Service officials noted that in 2003 the President’s Commission on the Postal Service called for increasing the pay of top officers to a level competitive with private industry.

The Postal Service also noted that pay of some corporate executiveswho manage companies with fewer employees than the Postal Service earn far more than Potter will earn. Proctor & Gamble chief executive A.G.Lafley, for example, earns $29 million a year.

It also noted the pay of the executives of two private delivery firms: Frederick W. Smith, CEO of Federal Express earns $8.67 millionand Michael L. Eskew of United Parcel Service earns $3.1 million.

The Postal Service also compared Potter’s pay with that of other postal chiefs.

Deutsche Post pays Klaus Zumwinkel $4 million. Peter Baker of Netherlands TNT earns $2.94 million, and the United Kingdom’s Royal Mailpays Adam Crozier $1.57 million. Australia Post pays CEO Graeme John$1.89 million; New Zealand Post pays CEO John Allen $733,000; Japan Post pays its president Norio Kitamura $246,737; and Canada Post pays CEO Moya Greene $483,876.

Potter’s pay trails that of three other government created organizations. Freddie Mac’s Richard Syron is earning $11.47 million, and Fannie Mae’s Daniel Mudd earns $7.59 million. The Tennessee Valley Authority pays CEO Tom Kilgore $1.6 million.

The following information was released by the United States Attorney’s Office for the Northern District of Florida:

Gregory R. Miller, United States Attorney for the Northern District of Florida, and James B. Davis, Special Agent in Charge of the Miami Office of the United States Postal Service (USPS) Office of Inspector General announced today Tony David Grimsley and Bobby Ray Pruett, both former employees of the United States Postal Service, were sentenced today by United States District Judge M. Casey Rodgers following their mail theft convictions. Grimsley was found guilty following a jury trial of theft of 214 movie coupons issued to mail customers by Movie Gallery, Inc. In a separate case, Pruett, the former local chapter president of American Postal Workers Union, entered a plea of guilty to mail theft charges in connection with his opening of first class mail parcels and theft of the contents. Evidence in both cases included covert surveillance video, oral and written confessions, and testimony from law enforcement and civilian witnesses.

Grimsley was sentenced to six (6) months of home detention, a $1,000 fine, $800 restitution to Movie Gallery, Inc., and two (2) years of supervised release. Pruett, who was on State of Florida probation for an unrelated crime at the time of the offenses, was sentenced to seven (7) months imprisonment, a $500 fine, two (2) years of supervised release, and a $200 special monetary assessment.

U.S. Postal Service employees are given a special trust to properly handle mail that comes into their possession, said U.S. Attorney Miller. When even one postal employee violates that trust, it is a cause for concern for all customers of the mail system.

Although the vast majority of the Postal Service’ 800,000 employees are honest and trusted public servants, there are a small number who betray that trust. In those instances, criminal prosecution is vigorously pursued, said Special Agent in Charge Davis. The Inspector General’ mission is to promote integrity and accountability in America’ postal system.

Both cases resulted from the investigation of the United States Postal Inspection Service Special Agents David Williams and Guy Nelson. Grimsley was prosecuted by Assistant United States Attorney Thomas P. (Tom) Swaim, and Pruett was prosecuted by Assistant United States Attorney Randall J. (Randy) Hensel.