Congresswoman Jaime Herrera Beutler (R-WA) introduced a bill that she estimates will save taxpayers millions of dollars by cutting salaries of Members of Congress, the President and Vice President of the United States by 10%. Let’s follow this bill and see where it goes.
…her commitment to stopping overspending by Washington, DC that has amassed a $14 trillion national debt, and harmed job creation in Southwest Washington. While families in Southwest Washington’s counties suffer under double-digit unemployment, Congress debates higher spending that will translate to more burdensome taxes on small businesses.
“My friends and neighbors in Southwest Washington have been tightening their belts for years, and it’s time elected leaders in Washington, DC joined them,” said Herrera Beutler. “We’ve voted to reduce our massive deficit by billions in order to create a better environment for job creators – but we haven’t cut a dime from our own paychecks. The savings ought to start with us.”.
Should Postal Management follow the same example? As one reader pointed out in the comments section of this website:
When the post office operated on a break even model it could spend no more than it earned. A balanced viewpoint aimed at core operations yielded a budget that was balanced. It’s mission statement was clear,which was to deliver the mail as expeditiously as possible and as cost effectively as possible! It wandered away from a break even model and incurred massive debt. There was nothing that forced the service do this, nor did anyone outside of the U.S.P.S. bear responsibility for making them do this.They did it to themselves by spending more money than they had.Now to make-up for their shortcomings employees have to suffer from reduced hours and future retirees face reduced benefits and still more will be taken from us! Management should share the burden of poor decisions made and work with labor to solve the service’s problems rather than make the employees the convenient scapegoat for their bad decisions!
When you consider that the postal service,according to a study by the Congressional Research Service in 2010, had 803,000 employees in 2003 and had by 2010 reduced that number to 575000(a reduction of 28%) and yet has a projected budget deficit of 6.5 billion this year is a primary example of their profligate spending philosophy! A 28% reduction in payroll should translate into some sort of quantifiable revenue to the bottom line on their balance sheet, but it has not. Instead they continue to LOSE MONEY! You never hear from “Donahoe and Crew” that they are going to limit executive compensation or freeze purchases of new equipment and plant. If you continue to lose money each year at some point you freeze purchases and try to balance the imbalance not constantly shift blame. Flip Wilson used to say “the Devil made me do it!”or my favorite “a lie is just as good as the truth,if it works!”That been management’s philosophy for a very long time!
When you consider that management regularly gets bonuses for nothing more than doing their jobs in addition to salaries that range in the GS15 range you arrive at one of the basic problems of the USPS,over compensation of management! In the private sector stockholders reward management for making wise decisions that add value to the bottom line, we however reward officials for incurring losses that run into the billions of dollars every year. The model for the USPS’s finnancial operations is clearly flawed! It is wrong to predicate a practice on a business model from private industry.We are not a privately held company,for if we were the shareholders would vote for a drastic change in practice as regards awards for “non-performing assets”!
Postal Pundits are quick to point out how much Postal Employees salaries are costing the USPS. But many address only craft workers and not management. If labor is 80% of the Postal budget and it needs to be cut, ALL salaries should be on the table not just craft workers. Personally, I believe Postal Employees are underpaid (but I’m bias).