In this week's issue, the Economist's coverage of the United States includes a story that lays out how observers overseas view the Postal Service's problems. These three paragraphs sum up how distant observers sum up the Postal Service's options and choice for a path forward.
Quasi-independent since 1970, the post gets no public money. And yet it is obliged (as FedEx and UPS are not) to visit every mailbox, no matter how remote, six days a week. This has driven the average cost of each piece of mail up from 34 cents in 2006 to 41 cents. Yet the post is not allowed to raise prices (of stamps and such) willy-nilly; a 2006 law set formulas for that. So in effect, the post cannot control either its costs or its revenues.
Nor can it buy companies as freely as postal services in Europe, Canada or Asia have been doing for the past decade. Many European countries, as well as New Zealand and Japan, have already privatised or liberalised their postal services. Combined, foreign posts now get most of their revenue from new businesses such as retailing or banking for consumers, or warehousing and logistics for companies.
So America’s post is looking for other solutions. It is planning to close post offices; up to 3,653, out of about 32,000. This month it announced plans to lay off another 120,000 workers by 2015, having already bidden adieu to some 110,000 over the past four years (for a total of about 560,000 now). It also wants to fiddle with its workers’ pensions and health care.
Ultimately, says Mr Donahoe, the post will have to stop delivering mail on Saturdays. Then perhaps on other days too. The post has survived new technologies before, he points out. “In 1910, we owned the most horses, by 1920 we owned the most vehicles.” But the internet just might send it the way of the pony express.
The article indicates that there is an alternative to the path that Postmaster General Donahoe was forced to choose. Privatization or liberalization along with greater freedom to control costs and prices. It is hard to imagine how privatization or liberalization could be worse for Postal Service labor. Nor can one imagine how privatization would result in more cutbacks in service that the Postal Service envisions neccessary to prevent becoming a ward of American taxpayers.
Sunday, August 21, 2011
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8 comments:
There are so many ways to save the PO, Donahoe is trying to take the easiest way out. Remember a year or two ago when coroporations and networks were forcing people to take days off with no pay. Is that not an option???? Look at how many of us work for the USPS, I'm sure there are some willing to take a 3 day weekend and lose 8 hours pay every now and then. Maybe ALL of the upper management:those who do not touch the mail can take a pay cut, like half of what they make. I don't know who is spreading the rumor that we "craft" employees make over $100,000 per year, try half that number. Anyone making that much is getting way too much overtime or is in management at some level. There are options out there if they would just use some commone sense. OH, right. Nobody in upper management has any of that. They were all the bottom of the barrel slugs that were promoted from within the postal service.
About "taking a day off without pay" I know your trying to help but that does not make sense because somebody has to deliver the mail and they will probably get paid to, so where does that leave you. Back where you started. It would be better if we took a pay cut (5 or 10%) or a reduction in our annual or sick leave. I would rather do that than loose my job all together.
You are so right Anonymous, I agree. There are so many who do not touch the mail and make much larger salaries. I wish the public knew what it is like to carry mail for many years and how demanding it is to work for the Postal Service as a letter carrier, but they really have no idea. I am a 33 year carrier and i love my customers, but the Postal Service is poorly managed and they are responsible for the downfall of this Service. Thank you Mr. Robinson for your blog, I read you often and appreciate your work.
No one needs to take a pay cut or lose hours of work.Just raise the price of the stamp and be done with it.Geez the gas pumps raise the prices in hours.Why should the USPS have to wait years to raise prices?
I agree with the post that we should reduce the annual and sick leave that's given to all employees. Give one week less of annual leave and 4 less days of sick leave a year for all employees. You can do the calculations. By my estimates, it's at least half a billion dollars in savings if not more per year. This will also force the employees, craft and management employees, to come to work or don't get pay. Leave, especially sick leave, are abuse yearly by employees. By getting employees to go to work, the Postal Service will be saving on overtime given out when their's an absence. What's worst, getting 20% less pay, or getting less leave time each year? I think 4 weeks of annual leave and 7 days of sick leave each year is sufficient when compared to private industry.
I agree with all comments posted. I do think a 10% pay cut may be a bit too much, however I would give up a few percent to save jobs. The PO is very mismanaged across the board. Then enforcement of NRP was a very bad move. One that the PO will be paying for, for a long time. The discrimination against on the job injured workers was illegal, and they knew it. As far as taking a day off here or there, many would love to do that for various reason but it is forbidden, by management, to have ANY scheduled LWOP. With the current financial crisis, you would think that that would be a welcomed option to management. Let's hope all options are explored, for everyone's sake.
Why would anyone donate their time and money to Postal management.If the system remains the same the only proper course of action would be to raise prices. Also the parcel business has increased as much as letter mail has decreased, yet the postal Service cannot go after that business.As a Postal employee I don't want to give back anything to managers who will squander my generosity. And it saddens me the that an institution so closely aligned with our countries founding is allowed to miss on income opportunities.
I am a carrier of 26 years if you do not handle the mail your not needed.Simple as that.Most Supervisors and managers never carried mail,they have no idea.Self manage get ride of management your in the black
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