Board Of Governors Chairman Remarks On USPS Need To Act Like A Business
Remarks by Louis Giuliano, Chairman, Board of Governors
United States Postal Service
Association for Postal Commerce (PostCom) Board of Directors Meeting
Washington, D.C.
June 9, 2010
Note: Remarks as delivered may vary from prepared text.
Thank you for that kind introduction – and thank you for this opportunity.
I was scheduled to speak here in February, but as you recall, the weather managed to intervene rather dramatically. Fortunately, the Postal Service is better at delivering the mail in bad weather than I am at getting to a meeting.
So I want to thank the Board for giving me another opportunity to address you this morning.
Today I want to focus my remarks on the key issues facing the Postal Service and what we’re doing about them. Then I would also be glad to take some questions.
In talking about these issues, I want to highlight three major points.
First, we need speed and flexibility in decision-making and other actions, both within our organization and across our regulatory landscape, so we can respond effectively in a very dynamic business environment. Second is the vital importance of our entire action plan. Third, I need for all of you to continue participating in the process by giving us your thoughts and ideas so our implementation can be timely and effective.
The issues that confront us are clear. On the revenue side, we face the long-term challenge of electronic mail and the Internet and the short-term challenge posed by the worst economic decline in decades, both of which have driven mail volume down. Read more
Statement From Sen. Thomas Carper On Nomination of Dennis Toner To USPS Board Of Governors
Statement of Senator Thomas R. Carper
Committee on Homeland Security and Governmental Affairs
June 10, 2010
Nomination of Dennis Toner
The committee will come to order.
Today, we’ll be considering the nomination of Dennis Toner to be a member of the Postal Service’s Board of Governors.
Mr. Toner is no stranger to those of us who worked with him during his many years of service in Vice President Biden’s Senate office. I’m pleased that he is willing to now put in the time and effort necessary to help steer the Postal Service out of the difficulties it currently finds itself in.
As anyone watching this hearing certainly knows, this is a very difficult time for the Postal Service.
The Postal Service ended fiscal year 2009 with a 13 percent decline in mail volume compared to fiscal year 2008. This resulted in a year-end loss of some $3.8 billion, up from $2.8 billion a year before. This loss came despite heroic efforts on the part of Postmaster General and his team to achieve more than $6 billion in cost savings over a very short period of time.
And the loss would have been significantly higher – a total of $7.8 billion, to be exact – if Congress and the President has not acted at the last minute to reduce the size of the Postal Service’s overly-large retiree health pre-funding payment.
Unfortunately, the projections for the current fiscal year look no better than these results for fiscal year 2009. Despite an expected recovery in at least some areas of the economy, the Postal Service is anticipating a further decline in mail volume. This, coupled with the fact that savings will likely be harder to come by this year, will result in the kind of massive, $7 billion or $8 billion loss we were expecting right up until the end of fiscal year 2009.
On top of this news, the Postal Service recently hired a group of three outside consultants to look at its business model and future prospects. They came back with findings showing that the Postal Service will continue to lose mail volume even when the economy recovers. They even pointed out that the Postal Service can be expected to lose more than $230 billion over the next decade if major changes are not made.
Congress must address this situation first by finishing the work we began last September and permanently restructuring the Postal Service’s retiree health obligation.
The payments the Postal Service is required to make under current law are simply unaffordable, especially during such a difficult economic time when the Postal Service is already losing customers to electronic forms of communication. I’ll also note that those payments are not related at all to what the Postal Service owes its future retirees. I’ve introduced legislation to address this problem. It’s been reported out of this committee and I hope it can be considered in the full Senate in the near future.
We also need to look at the Postal Service’s pension obligations. According to an analysis conducted by the Postal Service’s Office of Inspector General, the formula used to determine how much the Postal Service must pay into the old Civil Service Retirement System may have actually resulted in an overpayment of as much as $75 billion. The Postal Regulatory Commission is currently examining these findings and should be finished with that work sometime this summer. It is my hope that any overpayment that did occur can be used to provide the Postal Service immediate relief and to prevent or delay potentially damaging service or other cuts that might be on the table during this difficult time.
Another thing Congress can do to help in this environment is leave the day to day management of the Postal Service to the Postal Service. Too often, those of us here in the Senate and the House stand in the way of the Postal Service’s efforts to streamline operations and remove excess capacity, especially when it comes to closing or consolidating retail and processing facilities.
We also, unfortunately, are preventing the Postal Service from changing delivery frequency to adjust to the changing mailing economy. Studies have shown that the elimination of Saturday delivery alone could save the Postal Service upwards of $3 billion per year. In addition, about 75 percent of the public would support such a move according to a number of polls.
In many ways, then, we need to let postal management do what it needs to do to manage its way through the crisis it currently faces.
Mr. Toner, you have decades of experience in public policy, in management, and – perhaps most importantly – in listening to a variety of views and finding consensus. I look forward to learning more today about how you would apply that experience and those skills to the crisis currently facing the Postal Service.
White House Withdraws Nomination of Paul Steven Miller to USPS Board of Governors
On June 8, 2010 the White House announced the withdrawal of the nomination of Paul Steven Miller to the USPS Board of Governors. There was no explanation given for this withdrawal of nomination. Miller was nominated on January 29, 2010 “for a term expiring December 8, 2016, vice Carolyn L. Gallagher, term expired.”
According to the January 29, 2010 press releases :
Paul Steven Miller is the Henry M. Jackson Professor of Law at the University of Washington School of Law who is an expert in workplace and employment law. He has spent his career moving between academia, public service, and law practice. Most recently, Professor Miller spent the first nine months of the Obama Administration as a Special Assistant to the President in The White House. Prior to joining the University of Washington faculty in 2004, Professor Miller had been one of the longest serving commissioners of the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency which enforces employment discrimination laws. He has also served in The White House as Liaison to the Disability Community and as Deputy Director of the U.S. Office of Consumer Affairs during the Clinton Administration. Earlier in his career, Professor Miller was the Director of Litigation for the Western Law Center for Disability Rights and a lawyer at the Los Angeles law firm of Manatt Phelps and Phillips. He is a graduate of the University of Pennsylvania, cum laude, and the Harvard Law School.
On June 8, 2010 the White House announced:
WITHDRAWAL SENT TO THE SENATE:
Paul Steven Miller, of Washington, to be a Governor of the United States Postal Service for a term expiring December 8, 2016, vice Carolyn L. Gallagher, term expired, which was sent to the Senate on February 1, 2010.
USPS Board Of Governors Agenda Set For Closed Meeting June 21 and 22
Board of Governors; Sunshine Act Meeting
Times and Dates: 4 p.m., Monday, June 21, 2010; and 10 a.., Tuesday,
June 22, 2010.
Place: Louisville, Kentucky, at the Brown Hotel, 335 West Broadway.
Status: (Closed).
Matters To Be Considered:
Monday, June 21, at 4 p.m. (Closed)
1. Strategic Issues.
2. Financial Matters.
3. Pricing.
4. Personnel Matters and Compensation Issues.
5. Governors’ Executive Session–Discussion of prior agenda items and Board Governance.
Tuesday, June 22, at 10 a.m. (Closed)
1. Continuation of Monday’s agenda.
Contact Person for More Information: Julie S. Moore, Secretary of the Board, U.S. Postal Service, 475 L’Enfant Plaza, SW., Washington, DC 20260-1000. Telephone (202) 268-4800.
Julie S. Moore,
Secretary.
U.S. Postal Service Reports $1.6 Billion Second Quarter Loss
The U.S. Postal Service, which has said it may lose $7 billion this year, narrowed its fiscal second quarter loss to $1.6 billion.
The net loss in the quarter ended March 31 shrank from $1.9 billion a year earlier, the agency said today in Washington.
Mail volume dropped 6.3 percent in the past six months, Chief Financial Officer Joseph Corbett said at the Postal Service’s board meeting. The Postal Service, which cut work hours 7.5 percent in the period, has asked Congress for permission to cut Saturday delivery to save money, a proposal being reviewed by the Postal Regulatory Commission.
Bloomberg http://www.businessweek.com/news/2010-05-06/u-s-postal-service-reports-1-6-billion-quarter-loss-update1-.html
USPS Board Of Governors To Meet on May 5-6th
WASHINGTON — The Board of Governors of the U.S. Postal Service will meet in open session May 6 at Postal Service headquarters, 475 L’Enfant Plaza, SW. The public is welcome to observe the meeting beginning at 8:30 a.m., in the Ben Franklin Room on the 11th floor. The Board is expected to discuss the following items:
Thursday, May 6, 8:30 a.m.
- Minutes of previous meetings
- Remarks of the Chairman of the Board
- Remarks of the Postmaster General and CEO
- Committee reports and committee charter amendments
- Quarterly report on financial performance
- Inspector General report on Postal Service share of Civil Service Retirement System pension responsibility
- Quarterly report on service performance
- Tentative agenda for the June 21-23 meeting in Louisville, KY
Dates and Times: Wednesday, May 5, 2010, at 10 a.m.; Thursday, May 6, at 8:30 a.m. and 10:30 a.m.
Place: Washington, DC, at U.S. Postal Service Headquarters, 475 L’Enfant Plaza, SW., in the Benjamin Franklin Room.
May 5 at 10 a.m
Matters To Be Considered in Closed session:
Wednesday, May 5 at 10 a.m. (Closed)
1. Strategic Issues.
2. Financial Matters.
3. Pricing.
4. Personnel Matters and Compensation Issues.
5. Governors Executive Session–Discussion of prior agenda items and Board Governance.
6. Inspector General Report on USPS Share of CSRS Pension Responsibility.
7. Quarterly Report on Service Performance.
8. Tentative Agenda for the June 21-23, 2010, meeting in Louisville, Kentucky.
Thursday, May 6 at 10:30 a.m. (Closed–if needed)
1. Continuation of Wednesday’s closed session agenda.
Postal Service Outlines Five-Day Delivery Proposal
Announces Launch of Website
WASHINGTON – The U.S. Postal Service Board of Governors today approved management’s request to move forward with its five-day delivery proposal and to file a request for an advisory opinion with the Postal Regulatory Commission (PRC) on March 30.
Postal Service Vice President Sam Pulcrano, who has been leading an internal five-day delivery task force, also told the Board at its meeting today that a website will be launched to provide customers with the details of the proposal. The website also will include a special section telling business mailers how to manage a change in delivery. The site can be accessed at http://www.usps.com/communications/five-daydelivery.
The five-day delivery proposal is a critical element of a larger plan, “Delivering the Future,” announced March 2. An action plan for the next decade, it presents a balanced approach needed to ensure a viable Postal Service for decades to come. The plan includes legislative and regulatory changes needed to give the Postal Service the flexibility to make necessary business decisions in a timely manner, including the prefunding of retiree health benefits, pricing and delivery frequency.
Two of the plan’s key proposals require action by the Congress: a restructuring of the payment schedule the Postal Service is required to make to prefund retiree health benefits and the elimination of existing statutory language mandating mail delivery six days a week.
Pulcrano told the Board that the five-day task force has spent the last several months seeking stakeholder input and refining the proposal to address mailer concerns. He also said extensive market research has been conducted and Postal Service findings have been consistent with most national polls that have shown that the American people would approve of a five-day delivery schedule if it would ensure a viable Postal Service well into the future.
A USA Today/Gallup poll conducted earlier in the month showed support for five-day delivery across all age groups from 58 percent in the 18-34 bracket to 73 percent among those 55 or older. An earlier Gallup poll showed that 69 percent of all Americans were agreeable to a five-day schedule if it would mean stable stamp prices and a Rasmussen poll showed 66 percent in favor if it would help the Postal Service maintain financial stability.
Pulcrano also highlighted the key elements of the proposal which will be detailed in the filing with the PRC: street delivery and blue box collections will be eliminated on Saturdays, Express Mail service will continue seven days a week, Post Offices currently open on Saturday will remain open, PO Box accessibility will continue and bulk mail and drop shipments will continue to be accepted at facilities that are currently open. If implemented, Pulcrano told the Board the estimated annual savings would be $3.1 billion.
Next Postal Service Board of Governors Meeting is March 24
WASHINGTON — The Board of Governors of the U.S. Postal Service will meet in open session March 24 at Postal Service headquarters, 475 L’Enfant Plaza, SW. The public is welcome to observe the meeting beginning at 8:30 a.m., in the Ben Franklin Room on the 11th floor. The Board is expected to discuss the following items:
Wednesday, March 24 at 8:30 a.m.
1.Minutes of previous meetings
2.Remarks of the Chairman of the Board
3.Remarks of the Postmaster General and CEO
4.Amendments to Board bylaws
5.Appointment of committee members and committee reports
6.Quarterly report on service performance
7.Five-day delivery presentation
8.Tentative agenda for the May 4-6, 2010, meeting in Washington, DC.
USPS: Feb. 9 Board of Governors Public Meeting Cancelled Due To Weather
WASHINGTON — The public meeting of the Board of Governors of the U.S. Postal Service scheduled for Feb. 9, 2010, has been cancelled due to transportation issues related to severe winter weather in the Washington, DC, area.
With transportation options already limited throughout the entire mid-Atlantic and another storm system expected Tuesday, the Board has cancelled the meeting in the interest of public safety.
Items and reports on the Feb. 9 agenda will be rescheduled for presentation at a future meeting.
The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.
USPS Board of Governors to Meet In Washington DC On Feb. 9
DATE AND TIME: Tuesday, February 9, 2010, at 8:30 a.m.; 1:30 p.m. and 3:15p.m.
PLACE: Washington, DC, at U.S. Postal Service Headquarters, 475 L’Enfant Plaza, SW., in the Benjamin Franklin Room.
STATUS: February 9 at 8:30 a.m.—Closed; 1:30 p.m.—Open; and 3:15 p.m.—Closed.
MATTERS TO BE CONSIDERED:
Tuesday, February 9 at 8:30 a.m. (Closed)
1. Strategic Issues.
2. Pricing.
3. Financial Matters.
4. Personnel Matters and Compensation Issues.
5. Governors’ Executive Session—Discussion of prior agenda items and Board Governance.
Tuesday, February 9 at 1:30 p.m. (Open)
1. Minutes of the Previous Meetings, November 12–13, December 8, 2009; and January 12, 2010.
2. Remarks of the Chairman of the Board.
3. Remarks of the Postmaster General and CEO.
4. Amendments to Board Bylaws.
5. Appointment of Committee Members and Committee Reports.
6. Quarterly Report on Financial Performance.
7. Inspector General Report on USPS Share of CSRS Pension Responsibility.
8. Quarterly Report on Service Performance.
9. Tentative Agenda for the March 22–24, 2010, meeting in Washington, DC.
Tuesday, February 9 at 3:15 p.m. (Closed)
1. Continuation of closed session agenda.
CONTACT PERSON FOR MORE INFORMATION:
Julie S. Moore, Secretary of the Board,
U.S. Postal Service,
475 L’Enfant Plaza, SW.,
Washington, DC 20260–1000.
Telephone (202) 268–4800.