For years we have wondered about the future of the U.S. Postal
Service. Can this independent agency of our government survive?
Does it have a future if it continues to raise prices and curtail
service?
Because the USPS is subject to congressional control on major
aspects of its operations, Congress has before it proposals from
Postmaster General Patrick Donahoe for a five-year cost-cutting
plan. Saturday mail delivery would be dropped, stamp prices would
be raised and up to 252 mail-processing centers and 3,700 local
post offices would be closed under the plan. Also before Congress
is a request from USPS to make service cuts and reduce annual
payments of about $5.5 billion that goes to prefund retiree health
benefits.
Congress hasn’t reached agreement on any of this.
The postmaster general said USPS stands to lose as much as $18.2
billion a year by 2015 unless Congress grants its requests. The
agency expects to lose about $14.1 billion this year.
By cutting service and raising prices, we don’t see how the
agency is going to maintain what business it has now. We would
expect a loss of business as mailers seek alternative services to
deliver their products.
For years Congress ignored the USPS’s pleas for help as the
agency’s overhead kept going up. Yes, USPS can’t escape blame for
its continued losses. It tried various business models to raise
additional revenue but its operating costs, and high pension costs,
dragged it down. Its regulations, along with federal mandates, made
life stressful for local postmasters and employees. Many a postal
worker’s attitude was, “I can’t wait to retire and get out of
here.”
Congress must recognize that it has an obligation to help
provide this basic service to Americans. Look at the amounts of our
money that leave the country and go to other nations for numerous
services. We have international obligations, but we have our
priorities mixed up. Our needs at home should be given a higher
priority.
One of those urgent needs is postal service. The latest plan,
however, is not a blueprint for survival. One solution may be to
privatize the postal service. That should be considered.
We don’t see how reducing service while raising prices is going
to maintain what USPS has in business now. That’s not a business
plan that will promote growth.
