Postmaster General urges Congress to reevaluate current postal reform bills

Predicts decade of losses absent greater business model flexibility and speed
November 21, 2011

WASHINGTON — In a speech delivered today at the National Press Club in Washington, D.C., Postmaster General Patrick Donahoe encouraged Congress to step back and take a second look at postal reform legislation as currently drafted in the House and Senate.

Providing his first public commentary on postal reform packages, Donahoe argued for providing the Postal Service with a more flexible business model that would enable the Postal Service to quickly implement cost cutting measures. “Unfortunately, both bills have elements that delay tough decisions and impose greater constraints on our business model. Taken as they are, they do not come close to enabling cost reductions of $20 billion by 2015 – which they must do for the Postal Service to return to profitability.”

“If passed today, either bill would provide at best one year of profitability, and at least a decade of steep losses,” said Donahoe. “However, by taking the best of both the House and Senate approaches, Congress can provide the Postal Service with the legal framework and the business model it needs.”

The Postmaster General expressed his gratitude for the strong leadership and engagement of the Congress and the Administration in advancing reform legislation, and expressed confidence that an effective solution would be enacted. Both HR 2309 and S 1789 were introduced earlier this year to respond to an urgent liquidity crisis and to address long-term structural constraints in the Postal Service business model.

Throughout its recent fiscal crisis the Postal Service has advanced proposals that would allow it to operate more as a business would, with greater flexibility to quickly reduce costs and respond to a dynamic marketplace for mailing and shipping services.

The Postal Service is seeking changes in the law that would provide it with the authority to: determine delivery frequency; develop and price products quickly; control healthcare and retirement costs; rapidly realign mail processing, delivery and retail networks; operate under a streamlined governance model; and leverage its workforce with greater flexibility.

Within the constraints of its current business model, the Postal Service has aggressively cut costs, reducing the size of its workforce by 128,000 career employees and annual operating expenses by $12.5 billion over the past four years.

“America needs a Postal Service that can operate more like a business,” said Donahoe. “I have no doubt the Postal Service will endure as a great American institution. But to do so, we need to operate with a great business model.”

7 thoughts on “Postmaster General urges Congress to reevaluate current postal reform bills

  1. looks like donohoe and romney are flip flopping half brothers. all walking routes should be eliminated unless handicapped. no carriers want the routes . huge injury and cost waste. How about getting rid of the medicars cost for the usps and employees, since we dont use it but pay into it. US gov has bilked employees and the usps out of at least 100 billion since 1976.Gotta get rid of money in politics,insider trading of information and stocks by congress, and no lobbying by politicians after serving in congress. And get rid of grover Norquist the koch bros shill.

  2. don’t believe a word donahoe says. his actions have shown him to
    be a “man” who CANNOT be trusted! i like how the post office says they need to be able to operate more like a business when the fact of the matter is they are incompetent boobs who don’t have a clue about running a business. most are nothing more than incompetent bureaucrats. i believe the 2006 legislation, while doing some very bad things, also gave the post office the right to give large customers special rates. it used to be that the post office had to charge a large shipper like qvc, or amazon the same rate as they charged a citizen who mailed one package. ups and fedex were “cherry-picking” the large shippers because they would go into a place where they could get thousands or more packages a day and undercut the post office and get the business. the new legislation gave the post office the right to give the large shippers discount rates, to put them on a level playing field with other shippers. what happened when the usps was handed this gift? nothing good. the el paso times reported that the postal services package volume was down 28% the last four years!!! so, given the ability to get the large mailers to ship again with the post office, post office management failed miserably once again. postal management simply isn’t smart or business savvy enough to compete. yes, you could also argue incompetent i suppose. the bottom line is although donahoe and other postal brass always say stuff like we need to be able to compete more like a for profit business, the reality is they don’t have a clue how to successfully do that and NEED A MONOPOLY TO SURVIVE! postal management simply isn’t competent enough to compete in a competetiv enviroment.

  3. Sen. Sanders Postal Service Protection Act.

    Yea it protect against huge asswipes like Donohole

    ■Prevent the closing of rural post offices by giving the Postal Regulatory Commission (PRC) binding authority to prevent closures based on the effect on the community and employees. The bill would also prohibit USPS from considering whether a post office is turning a profit when making the decision to conduct a feasibility study for closure.
    ■Protect six-day delivery.
    ■Protect mail-processing facilities by requiring strict standards for delivering first-class mail.

  4. Can’t come up with round-trip tix to Wash DC? You can Occupy APWU HQ easily by filling out your PS 1188 today! Do it before the next round of dues increases and assessments coming round the bend brought to you by your union!

  5. As I have posted elsewhere on this site, DOES WHAT THIS MAN IS ASKING FOR INDICATE TO YOU THAT HE IS A MAN TO BE TRUSTED ???

    The NALC apparently thinks that it’s okay to play with the RATTLESNAKE and the NPOMHU will continue to negotiate with THIS SCALED REPTILE named “Donohue” until the first week in December….but what will be the outcome ???

    The PMG is a shill for the TEAPUBLICAN PRIVATIZATION TEAM….just exactly what part of THIS FACT is everybody NOT SEEING ???

    You cannot PLAY NICE with some one who WANTS TO DESTROY YOU.

    Wake up Orlando….Donohue is pleading with Congress to give him EXACTLY WHAT DARRELL ISSA HAS IN HIS “POSTAL DESTRUCTION” LEGISLATION.

  6. PMG needs to remember that we are a government SERVICE and doesn’t need to be a profitable corporation. Right now any postal profit goes to the fed. general fund. It is the 75 year pre-funding that is killing the USPS. You don’t take away service…or, at least anymore service. If they want to save $ let them cut back on management, they have increased by more than 25% over the last ten years while the blue collar work force has dropped by approx. 20%. Quit moving managers all over the country, and paying their $15,000-$25,000 “moving expenses” and having newly relocated supervisory staff living in (postal paid) rental properties.

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