Subcommittee Holds Hearing to Evaluate the Postal Service’s Cuts in Operations and Network

PR note: Correction from yesterday’s post. The House postponed the hearing to markup  HR 22 and HR 1345 and not the hearing noted below. Sorry for the confusion.  

WASHINGTON, D.C. – On Wednesday, May 20, 2009 at 10:00 a.m. in room 2154 of the Rayburn House Office Building, the Subcommittee on Federal Workforce, Postal Service and the District of Columbia will hold a hearing entitled, “Nip and Tuck: The Impact of Current Cost Cutting Efforts on Postal Service Operations and Network.”

This hearing is a part of a series of hearings the Subcommittee is conducting to examine and discuss the Postal Service’s current operational and financial challenges. Wednesday’s hearing, in particular, will examine the status and impact of the United States Postal Service’s cuts in operations and services, and recent efforts to optimize its network and improve efficiency.

“The Subcommittee and the American people are alarmed by reports that show that just halfway into this fiscal year the Postal Service already has a loss of $2.3 billion. To further complicate things, Postal officials see no signs of improvement and anticipate a total loss that almost triples that amount by year’s end,” said Chairman Stephen F. Lynch.

Reports from the first half of this fiscal year reflect that the Postal Service’s total revenue loss is $2.3 billion, compared to fiscal year 2008’s total loss of $2.8 billion. These losses, coupled with the recent decision to reduce costs by closing six of its 80 district offices, eliminate positions across the country, and offer another round of early retirements make the Subcommittee’s hearing very timely.

In light of USPS’s current financial pressures, Wednesday’s hearing aims to generate effective short and long term strategies to reduce costs and improve efficiency at the Postal Service.

“The Postal Service has made tough decisions to cut costs by consolidating facilities, realigning carrier routes, shortening post office hours, and the very unpopular, raising of postal rates. The Subcommittee will examine the impact of these cuts on postal employees and customers, assess whether these actions go far enough, and explore what additional opportunities the Postal Service can undertake to remain viable.”

Witnesses’ testimonies, the Chairman’s opening statement and a 10:00 a.m. live broadcast of the hearing can be found on the Subcommittee’s website,