April 17,
2010
It’s no secret that the
U.S. Postal Service has had financial woes for years. Now the
organization is studying the idea of eliminating Saturday mail
delivery in an effort to save money.
To
borrow the catchphrase of ESPN college football analyst Lee
Corso, “Not so fast, my friend.”
The USPS recently informed
the Postal Regulatory Commission that due to falling mail
volumes and revenues, it was recommending eliminating Saturday
mail collection and delivery except for Express Mail and
existing post office box service.
USPS lost $3.8 billion last
year and would have lost more than $7 billion if Congress had
not delayed payments into a retiree health care fund. USPS is
under pressure from a variety of competitors, most notably the
Internet and e-mail. It expects to process far less mail, down
from 213 billion pieces in 2006 to an estimated 150 billion in
2020.
But eliminating Saturday
mail doesn’t address many of the problems facing the U.S. Postal
Service and its financial woes. The agency has to reshape
itself.
Consider the hardships that
would result through the loss of Saturday mail service.
Numerous small businesses,
many already struggling due to the poor economy, will see delays
in cash flows and won’t be able to send or receive packages. The
flow of mail will be delayed because of the elimination of
processing on Saturday, further impacting businesses and the
general public on other days.
We’d be remiss if we didn’t
admit that the newspaper industry relies heavily on the mail and
Saturday delivery. A number of community newspapers publish
weekend editions and a growing number of dailies use the mail
for delivery. The elimination of Saturday service would create a
hardship, not just on the newspapers, but on the advertisers and
the shoppers those businesses are trying to reach.
The USPS has several issues
it must first address to remain viable and serve its customers
before it considers eliminating Saturday service.
Most importantly, it must
bring labor costs in line with other businesses. USPS labor is
80 percent of its total cost, about 30 percent higher than
national competitors. Admittedly, it has to reach every
household, which competitors may not. Even so, the next
generation of contracts has to slice that percentage or the next
generation of workers may have no jobs at all.
Second, it cannot be
required to prepay its retiree health benefits, leading to
annual payments of about $5.5 billion. Other federal agencies
have far better payment terms.
Third, it must develop more
efficient ways to process and deliver the mail. That may
necessitate closing some post offices.
There are still nearly 309
million reasons to keep viable six-day mail delivery. It’s a
valuable service that Americans have depended on for decades.
Perhaps Saturday mail will
vanish. Long-term, that may be the best solution. But that
should be the final step, not the first, in reinventing USPS.
Short-term, six-day mail service must live on. Cutting service
never helps a business grow.
— Polk County Itemizer-Observer