NAPUS: USPS needs to eliminate its still bloated administrative overhead before cutting more services

“On May 17, NAPUS President Bob Rapoza submitted testimony to the Senate Homeland Security and Government Affairs Subcommittee on Federal Financial Management, Federal Services, and International Security. NAPUS called for Congress to expeditiously enact legislation to accurately calculate USPS pension liability and permit the agency to use the surplus to pre-fund retiree health costs.  This provision is included in legislative that Sen. Tom Carper (D-DE) introduced that day of the hearing, the POST Act and is included in legislation introduced earlier this year by Sen. Susan Collins (R-ME). As part of its testimony,  NAPUS expressed concern about legislative provisions in the POST Act that could negatively impact universal postal services, including access to small town and rural Post Offices. Instead, NAPUS urged the Postal Service to exploit its retail footprint to generate revenue.”

It is important to note that the Postal Service has shed over 100,000 jobs over the past two years, including Postmaster positions, and there has been virtually no investment in capital. The postal infrastructure and vehicle fleet is deteriorating. Before the Postal Service begins to cut deeper into the bone of its services, the agency needs to prune further its bureaucracy and eliminate its still-bloated administrative overhead, which includes an oversized Area and District Office structure. Therefore, NAPUS supports section 104 of S. 353.

In this constantly transitioning digital age, the Postal Service has not done enough to design and implement a comprehensive and compelling strategy to improve relevancy, and exploit its consistently high trust level and ubiquity. NAPUS has persistently urged the Postal Service to maximize the use of its footprint and become the universal government portal, enabling citizens and businesses to access federal, state and municipal services through their local Post Office. Consequently, NAPUS supports section 301 of the POST Act and commends Chairman Carper for encouraging the Postal Service to establish partnerships with other federal agencies, as state and local governments to provide services. This type of universal governmental access compliments the Postal Service’s universal obligation, and would be especially beneficial to Americans who live or work in small towns and rural areas.

However, we are deeply concerned about statements, policies and regulations that would take the Postal Service in a completely different direction, to irrevocably contract its universal mission. Such misguided policies do irreparable harm to confidence in our postal system, and the economies of communities, large and small. For this reason, NAPUS is troubled by sections 201 and 202 of the POST Act, and urges the Chairman to revisit these provisions. Sections 201 and 202 could unfairly target rural areas and small towns for reduced postal services. Under the provisions, the Postal Service would no longer be required to provide “a maximum degree of” services to thousands of communities. In addition, the sections would eliminate the prohibition against closing a post office solely for having expenses that exceed revenue. Post offices are not simply revenue generators; they are service providers. Sections 201 and 202 cast in harm’s way more than 10,000 post offices. It is important to remind the Subcommittee that closing all rural and small post offices would only save the Postal Service about 0.7% of its operating revenue. Moreover, two successive Gallup Polls, one in 2009 and the other in 2010 record overwhelming citizen opposition to Post Office closing (88% and 86%), identifying post office shuttering as the most objectionable postal cost-cutting tactic. Post Offices remain the undisputed most valued governmental institutions in the nation.

NAPUS Testimony To Senate Subcommittee on USPS

5 thoughts on “NAPUS: USPS needs to eliminate its still bloated administrative overhead before cutting more services

  1. The whole “postal crisis” is not about cost, the internet, or budget; it is about politics and the killing of the middle class. Cogress allowed most of the good paying middle class jobs to go to other countries, thus lowering the standard of living in America.
    Now they are trying, being directed by corporate America who owns them, to reduce the salaries of the Post Office, teachers, police, firefighters, and any other like job, so the lowering of the standard of living is complete. This gives the big companies more profit as they pay less for employees.
    There is no reason for Congress to have forced the Post Office to “pre-pay” $5.5 billion for retiree health benefits EXCEPT for driving them towards insolvency, giving them the leverage to reduce salaries and benefits.

    Congress is where the blame starts and ends. VOTE, and not only will you get your citizenship back, but you will return control of America back to the citizens for which it was created.

  2. Why did we just hire 2 VP of operations that is again very useless jobs. They have supervisors and managers doing this job for a lot less money. Come on PMG.. cut just to hire more??? No wonder we are going broke.

  3. Any cost that does not contribute to processing and delivering mail must be eliminated. Bloated position cost that make no direct contribution to these factors must be eliminated. Congress must do its job to insure funds are available to maintain universal mail service. The so called high level executive positions that exist in top echelon must be eliminated unless a measurable cost result can be measured. Offices that no longer serve the purpose as they once did 50 years ago before changing demographics must be closed to reduce cost as service provided is negligible due to lack of demand.

    Sat. route mail delivery is a total waste as very few people depend on USPS
    to affect their living based on Sat. mail delivery. Most financial transaction are processed online and by 2013 all government -treasury checks will be direct deposit. Congress must do its job and discontinue Sat. route mail delivery. Universal mail service is still provided but only reduced 1 day a week to eliminate a nonessential wasted cost.

    The Conservative rave as to increasing US debt but will not do anything to eliminate USPS increasing losses due to less demand for product and services
    and will not take action to eliminate wasted cost such as closing non needed post offices, eliminate Sat. route delivery, reduce workforce to maximize automation; a buyout 50 yrs. old 25 years service would be a savings to non replacement or employ as temporary or casual with less benefits.

    Congress must do its job as to revamping structure and pay system of USPS
    in maintaining universal mail service as this is their argument for doing nothing.

  4. Hey Munkirench,

    Supply that list. You know they are incapable of doing it. They have all these VPs and yet nothing gets done. Time to start that list of who’s on the chopping block and get this RIF started.

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