Postmaster General Patrick R. Donahoe Reacts To PRC Decision On Five-Day Mail Delivery
We have received the Commission’s advisory opinion on our proposal to move to a five-day delivery schedule. We have been awaiting the document and look forward to studying the views expressed by the Commissioners. Five-day delivery is an integral part of our action plan for the future.
It’s important to remember that the Postal Service came well prepared to this undertaking. Based on extensive outreach to our customers and other stakeholders, we developed an operational plan, analyzed the potential cost savings and conducted extensive market research to document customer reaction and estimate mail volume changes that could result from implementation of this plan.
Following tremendous losses in mail volumes and revenues, the Postal Service remains in the midst of a period of great financial instability. On March 30, 2010, we presented a compelling case to the PRC, reflected in the testimony of Postal experts in operations, marketing and finance, as well as a highly respected market research firm and academician. Their testimony demonstrated that the plan would effect a $3.1 billion annual saving and allow the Postal Service to continue providing excellent service in an economical and efficient manner.
The Commission’s opinion is advisory only and therefore, is not a final determination on the merits of our proposal. We remain convinced of our findings. As such, we will also continue to press our case with the Congress on this matter.
Wonder what happened to the comment I posted here at 11 pm last night?
Postal Service Smoke and Mirrors. The (wasted) $4.5 Million spend on a study, which shows 5 day delivery saves the USPS, is folly. In this world there are two types of companys; one creates a widget that is sold for profit, and one which provides a service for a fee. The USPS is a service based organization. Since our profitability is based on providing a service, HOW CAN WE REDUCE SERVICE to our customers, as a cost savings measure? Would a newspaper in financial difficulties, stop using ink? Would a hospital stop using X-Ray machines and MRI’s? Let’s not be stupid. There are 3 easy steps to fix this proposed train wreck:
1. Correct the payment to the Retiree’s Health Benifit. (2.2+ Billion)
2. Reduce the number of Management Employees, in direct proportion to the losses in the Crafts, using employment levels in 2006 as the benchmark. ($8+ Billion)
3. Make all USPS employees exempt, from the PFP. Pay for Performance, is a bonus program, where Management Employees set their own goals..and when met, get raises and cash awards. The name of the program, is an oxymoron when used in the USPS. ($1+ Billion)
That saves $12+ Billion per year, puts us deep in the black, pays off the debt, and still maintains 6-day delivery.