U.S. Postal Service Details Economic Viability Strategy
Press Release
Postmaster General Testifies on Capitol Hill, Urges Congress to Act
WASHINGTON – The U.S. Postal Service today presented to Congress a comprehensive strategy for ensuring its long-term viability, despite recent sharp declines in mail volume caused by the current economic environment
Postmaster General John E. Potter, in testimony before the House Subcommittee on Federal Workforce, Postal Service and the District of Columbia, additionally urged lawmakers to provide the Postal Service greater flexibility with regard to mandated retiree health benefit payments. The Postal Service, a self-funded government entity, asked for no financial assistance from Congress.
“I come before you today with only one agenda – asking for your support in preserving an effective, affordable Postal Service, capable of serving every American in every community, and one that remains an important economic driver for many years to come,” Potter said. “These are extremely challenging times – for the nation and for the Postal Service. We have done a great deal to preserve the future of our nation’s mail system. But there is more to be done and we must do it together.”
As a result of the economic recession, the Postal Service has predicted that mail volume will likely plunge to 180 billion pieces by the end of fiscal year 2009, from 212 billion pieces as recently as 2007. At the hearing, Potter described Postal Service actions to sustain long-term economic viability, including reductions in fixed, variable and non-personnel costs over the next three years.
Specifically, Potter outlined ongoing elements of the Postal Service’s strategy to help close the budget gap – a “chasm, widening each day,” he said – created by the agency’s revenue shortfall. These include:
* A new process for evaluating and adjusting city delivery routes
* Reduction of employee work hours and overtime by pursuing even greater efficiencies throughout the organization
* Halting construction of new postal facilities and directing funds to the sites with the most critical needs (i.e., buildings badly damaged or destroyed by natural disasters)
* Improved fleet management and delivery routing to reduce fuel usage
* Expanded energy efficiency to reduce energy use throughout Postal Service facilities
* Reductions in employee travel budgets through the use of web and video technology to conduct meetings and conferences
* Renegotiations of supplier contracts to reflect reduced needs
To strengthen the Postal Service’s efforts, Potter asked Congress to pass H.R. 22 and modify the method by which it is required to fund retirement health care benefits. This legislative change would reverse a policy that was instituted when the Postal Service experienced large surpluses – and result in at least $2 billion in annual savings over an eight year period. There would be no costs to the taxpayer were H.R. 22 to be enacted.
“Even with our aggressive cost-cutting measures, our situation is critical,” Potter said. “We cannot overcome the economic forces without help from Congress.”
Potter also said the Postal Service would initiate a public policy discussion with Congress, regulators, major customers, the business community and the American people regarding adjusting its delivery schedule from six to five days. The removal of a legal requirement regarding days of delivery could result in annual savings of $3.5 billion, according to the Postal Service. The requirement for six-day delivery service was mandated by Congress in 1983 when technology and consumer access were much different than they are today.
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Terminator on
Thu, 26th Mar 2009 2:24 am
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Disgusted and mad as hell on
Thu, 26th Mar 2009 8:22 am
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anon on
Thu, 26th Mar 2009 11:59 am
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huh on
Thu, 26th Mar 2009 4:12 pm
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Upper Management on
Fri, 27th Mar 2009 12:04 am
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Upper Management on
Fri, 27th Mar 2009 12:04 am
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Anonymous on
Fri, 27th Mar 2009 9:49 am
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Jack Ass on
Sat, 28th Mar 2009 5:31 pm
Potter should be terminated.
Did anyone ask him to justify his and his cronies’ exorbitantly large compensation packages they received last year… all while the Postal Service was going down the tubes?
If the Postmaster Generals pay is going to be commensurate with his pears in the private sector… then we should do it for everyone else in the Postal Service. When I came into government service I knew I wasn’t going to get rich. I came to federal service mainly for the benefits and job security. What makes the Postmaster General different from any other federal employee?
Maybe if he and his cronies’ hadn’t had such generous compensation packages last year… maybe he could have offered an incentive for those wishing to take the VER offers. I find it unbelievable that he would ask people to leave early to help his bottom line and expect them to be penalized if they took the VER.
What is your Pension Benefit???
John E. Potter
USPS Pension Benefit
$1,350,318
John E. Potter
CSRS Annuity
30 Years
$2,453,057
H. Glen Walker
FERS Annuity
2 Years
$ 60,702
Patrick R. Donahoe
CSRS Annuity
33 Years
$2,522,570
Anthony J. Vegliante
CSRS Annuity
31 Years
$2,171,701
Mary Anne Gibbons
FERS Annuity
23 Years
$ 815,758
If the USPS is so drained, then why do we bother to pay millions for sequencing machines if we are down on mail volume. Every craft has a no lay off clause in their contracts! Rural Carriers just had the hardest hit ever in all my years. In order for the economy to come out of this there has to be money stimulating the economy so why did the govt. cut salaries on the full timers and now the subs (RCA) will have to linger until they get a day here and there. Then due to the no layoff clauses, govt. is just going to let them dwindle with no hours until they quit and they won’t even so much as be able to collect unemployment. That will really stimulate the economy won’t it. It is a vicious cycle of money turning over so many hands and businesses. If you cut money from the economy then you are just as guilty. Shame on upper mgmt. Shame!
We have a plan. Do not worry. Everything is under control.
(is anybody buying this..)
how much would the post office save by giving a buyout with money to csrs people?In the long run you would save,this is the second time for excessing clerks . last time they wanted them to come back. if you get cs out you wouldn’t have to excess every 2yrs
You are expecting common sense from postal management. I have yet to see that in 29 years.
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