Postal reform derailed by Congress
February 7, 2013 at 8:01 pm in News by Dustin Siggins 4 Comments
In 2006, the U.S. Postal Service (USPS) reached a record-high level of mail delivered across America. Since then, things have only gone downhill for employees and management alike, to the point where USPS lost $16 billion in 2012.
Well, now the Post Office is taking its first (legally challenging, admittedly) steps to remedy the problem. According to CBS, starting in August, all first-class mail will stop being delivered on Saturday.
This change is long overdue:
The Postal Service has lost $41 billion dollars over the past six years as more and more Americans turned to private shippers, email, and online banking.
To save money, the Postal Service slashed hours of service at about half the nation’s 26,000 post offices and trimmed its workforce by 35 percent.
But it wasn’t enough. David Walker, a former government watchdog, is part of a panel looking at possible postal reforms. Walker told CBS News’ Nancy Cordes the new measure “won’t come close to solving the postal service’s problem. It’s got to look at more fundamental changes in its infrastructure, its compensation costs, its retirement obligations, and also what it does and who does its business.”
Stopping weekend services won’t be enough to prevent the Post Office from further losses. However, even this maneuver is legally challenging – CBS reports that “[t]echnically, the Postal Service is not allowed to its reduce service unless Congress changes the law, but lawyers for the Postal Service think that they have “figured out a way around the law.”
Speaking of Congress, it is important our elected officials serving there get their respective rears in gear with this:
But there’s just so much the Postal Service can do without congressional approval. Despite years of begging by postmasters general, Congress never passed a reform bill that would have given the Postal Service more flexibility to modernize and streamline its service.
In other words, Congress’ lack of action is causing major problems within USPS. Yes, it has internal problems – “standby time” is but one example – but it is long past time for Congress to prioritize reformation of the Post Office before a bailout becomes part of the recommended “solutions.”
It’s plain and simple. Our gov’t is subsidizing the cost of mailing envelopes anywhere in the United States for the price of a stamp. But we all complain whenever they raise the price of stamps.
How much would it cost if using a private company like FedEx or UPS? Maybe we should just get rid of the Postal Service and be like a 3rd world nation.
This article is full of crap! Get rid of Saturday delivery long overdue? Please. You people need to read before you run your mouths! The PRC conducted a study last summer of ending Saturday delivery and found out that not only will the USPS not save $2.1 billion, but it will LOSE millions per year in loss customer base and revenue. You want FedEx or UPS to deliver your mail? It costs you $.46 to mail a letter across the USA. FedEx and UPS will charge you $43.36 for the same letter, and so will private companies because they are not mandated like the USPS is (by Congress) to keep costs low. They can charge you whatever they want. Oh, and don’t forget: The USPS delivers nearly 40% of FedEx and UPS packages for them, without the USPS you will be charged nearly 500% more because FedEx and UPS do not deliver door to door universally! You pay them say $24.00 to deliver your package, they then truck it to the USPS processing plant and the USPS delivers it for them at a rate of less than $8, so you are paying them $16 to take YOUR packages to the post office. Isn’t America wonderful! Not to mention the USPS could have delivered that package for you at $8! Get rid of the USPS and you will see your internet package shipping rates skyrocket. But then after all that is exactly what the Tea Party and the GOP (one in the same) want., so they can profit! WAKE UP PEOPLE!
I am all for the postal system to be fiscally responsible as each and every one of us should be! It is time to make serious budget cuts in the postal system. It isn’t working responsibly as is!! We need to take those in charge to task! Simply do it Congress! Show me you have the intestinal fortitude! Otherwise you will be history! That’s not a threat! That’s a promise!
Fiscally responsible? What have you people been reading? 85% of the debt the postal service has incurred this year is due to the GOP passed PAEA of 2006! How can you manage money that Congress is stealing from you and then saying you are behind in your payments? Did you know that the PAEA requires the USPS to make 75-years worth of payments into their federal retirees health plan in less than 10 YEARS? That plan is paid so far in advance that future employees of the USPS who haven’t EVEN BEEN BORN YET, are covered under this plan! Congress has taken between $50-$75 BILLION DOLLARS in over-payments from the USPS in the past 7 years and will not pass reform to pay it back! And those same GOP Congressmen and women are backed by the Tea Party!