Mailers Council Calls for Legislative Reform to Avoid Postal Service Insolvency
TweetThe Mailers Council, the nation’s largest coalition of mailers and mailing associations, has published a new white paper that warns of United States Postal Service insolvency without significant new legislative reform. The paper suggests other non-legislative steps to avoid collapse of the nation’s postal system.
The white paper is available on the Mailers Council’s website.
According to Mailers Council Board of Directors President James R. O’Brien, “The mailing industry, and the nearly nine million jobs it represents, and every American who depends on a reliable, affordable postal system, need Congress’ help now. Our research shows that recent legislation offers only temporary relief of the agency’s financial problems. Without more significant measures, such as those outlined in our white paper, the Postal Service will soon be unable to meet its financial obligations.”
The Postal Service was recently put back on the General Accountability Office’s High-Risk List, a reflection that the agency’s future is in jeopardy. It ended FY 2009 with a net loss of $3 billion and is expected to report a nearly $7 billion deficit for FY 2010. Mail volume declined by approximately 26 billion pieces in one year. Next year, the Postal Service will be close to its statutory borrowing limit of $15 billion, with no sign of being able to repay these funds anytime soon.
Legislation approved on September 30 gave the Postal Service a one-year reprieve from the large annual payments required to prefund its retiree obligations. However, because of staggering declines in mail volume, changing communication patterns and the ongoing recession, the USPS may be unable to pay its bills or its employees by the end of FY 2010.
The Mailers Council’s white paper offers these recommendations for addressing the Postal Service’s problems:
- The Postal Service needs to be allowed to reduce its head count.
- It must be allowed to close unneeded facilities and consolidate its retail network.
- The Postal Service needs greater control over compensation.
It should be allowed to adjust its pre-funding schedule for retiree health benefits when economic conditions dictate. - An arbitrator should consider the financial health of the Postal Service when making a decision in the collective bargaining process.
- The Postal Service should complete its study of five-day-a-week delivery and fully present its findings for further discussion.
The Mailers Council is a coalition of corporations, nonprofit organizations, and major mailing associations. Collectively, the Council accounts for 70% of the nation’s mail volume. The Mailers Council believes that the USPS can be operated more efficiently, supports efforts aimed at lowering postal costs, and has the ultimate objective of containing postal rates without compromising service.
October 22nd, 2009 14:56
The first recommendation to reduce head count should start at the top.Most post offices are working shorthanded,with the exception of management.If the Postal Service would negotiate in good faith an arbitrator would not be needed.Politics will prevent PO’s from closing.Also mail volume is increasing.
October 22nd, 2009 19:34
If you think mail volume is increasing you must not be paying attention. There may be small increases in some locations but in the major plants the volume is squat.
For those that keep whining that the number of managers and supervisors remains constant while craft numbers are dropping, here are the facts as of Oct. 1, 2009. When compared to the same date last year, supervisor and manager complement has dropped by 7.16% while craft complement has dropped by 5.8%. More craft employees have left the agency because their numbers are much larger, but when based on a percentage the EAS have taken a much bigger hit than the craft.
October 23rd, 2009 08:50
While percentage wise it seems that mgmt jobs are decreasing it’s not true. It’s like a shell game, they do away with a job but the person is just moved to a different mgmt job somewhere else. Not one EAS employee has actually been fired in our district they just move them around.
October 23rd, 2009 11:57
Lets face it we are micro-managed to the hilt. To many chiefs and not enough indians. And don,t for get about all the bonuses that managment got for doing a lousy job running the PO
October 23rd, 2009 21:52
I think the mail volume has skyrocketed over the past 5-6 months and will continue to do so. The holiday season will soon kick off bringing the mail volume up even more. Those of you who think 5 day delivery is a good thing must be management clueless as usual. The post office will be shooting it’s self in the foot if 5 day deliver happens.
October 28th, 2009 20:34
I know after 25 years of carrying mail that the volume, especially bulk mail, increases dramatically from the 2nd week of october through end of november. On a yearly percentage however, we must face the fact that volume of mail will never equal the number of employees we have now. Solution? Depends on who you ask. A manager will say, we just cant get the prodution out of these craft employees the way we need. A craft employee will say, too many managers with non-attainable demands.
My solution, radical yes. We need first to go to monday through friday delivery. Second we need to suspend the 3rd and 4th class mail rate. We need to be taken under total control of the government and have our jobs be a government public service. Still take in postage the way we do now, but it is given to the treasury. Downsize number of employees, management and craft, demand more strict performance guidelines by all postal workers( in other words you have this to do, if you dont you are suspended and subsequently fired! I dropped my union dues this past year because our leaders immediately voiced opposition to the 5 day delivery request. I feel the union should have asked the members, by special ballott what they thought of it! I think they would be in for a big surprize with the percentage voting yes to 5 day delivery
October 28th, 2009 20:38
Also the people who may oppose 5 day delivery are the same people who have adjusted their lifestyle and budget to the non-guranteed overtime they are making with a 6 day workweek. Suck it up people, maybe your families would love to have you home on weekends to do what normal families( mom or dad work monday through friday) do! Think of them sometime and not the ot pay on the old paystub!
October 28th, 2009 21:05
This is to Bob, letter dated October 22nd: What are the incentives given to managers to retire early compared to any incentives given to craft employees to retire early? That may be a reason(you say) for the difference in the percentages.?