US Postal Service Discontinuing Saturday Mail Delivery

[DiscGo]

US Postal Service Discontinuing Saturday Mail Delivery
(Reuters) - The Postal Service plans to drop Saturday delivery of first-class mail by August in its latest effort to cut costs after losing nearly $16 billion last fiscal year, the cash-strapped mail agency said on Wednesday.


The plan would save about $2 billion a year, the Postal Service said. The mail agency will still deliver packages six days a week and will not change post office operating hours.


The Postal Service has been losing billions of dollars each year as it grapples with massive payments for future retiree health benefits and Americans' increasingly rely on online communications that drives down mail volumes.


The agency has been seeking congressional approval to get relief from those prepayments and for a larger restructuring to reduce costs. But with no short-term legislative fix in sight, the Postal Service is getting more aggressive in testing its own authority to make cuts.


"The Postal Service is advancing an important new approach to delivery that reflects the strong growth of our package business and responds to the financial realities resulting from America's changing mailing habits," Postmaster General Patrick Donahoe said in a statement.


The 237-year-old institution ran into its legal borrowing limit last year and defaulted twice on required payments to the federal government.


Postal officials have said for years that the agency needed to cut back on delivery days, as well as close underused facilities and reduce its workforce.


Officials previously contended they needed permission from Congress to make the changes, but now believe they may be able to take some actions without new legislation.


Congress includes a provision in legislation to fund the federal government each year that has prevented the USPS from reducing delivery service. Some lawmakers want to drop that provision when the current funding measure expires at the end of March.


The agency also believes that by retaining six-day delivery of packages, it has a way around that provision, according to a congressional source.


The Postal Service is already facing some pushback for moving forward with delivery schedule changes without permission from Congress.


"Today's announcement by Postmaster General Donahoe to eliminate six-day delivery is yet another death knell for the quality service provided by the U.S. Postal Service," said Jeanette Dwyer, president of the National Rural Letter Carriers' Association. "To erode this service will undermine the Postal Service's core mission and is completely unacceptable."


Elijah Cummings of Maryland, the top Democrat on the House of Representatives Oversight Committee, said delivery frequency should be determined by legislation "rather than through arbitrary action by the Postal Service."


But Republicans Representative Darrell Issa of California and Senator Tom Coburn of Oklahoma called the change a common-sense move and noted President Barack Obama has supported allowing the Postal Service to move to five-day delivery.


Lawmakers spent more than a year on postal legislation, including proposals to eliminate Saturday delivery, but were unable to agree on a bill. Donahoe told reporters on Wednesday that the laws governing the Postal Service do not allow it to adapt.


He said the changes would allow the Postal Service to continue benefiting from rising package deliveries as Americans order more products from sites such as eBay Inc and Amazon.com Inc.


Package deliveries were a bright spot in a bleak 2012 fiscal year, with package revenue rising 8.7 percent during the year. The agency has said it could face a cash shortfall this fall unless it makes significant cost-cutting changes.

http://www.reuters.com/article/2013/...9150KX20130206

[PunchKing]

Haven't they been talking about this for like 5 years. I like how they say it will save 2 billion dollars but lost 16 billion last year... I am sure the postal service never really made money but this seems like the way the government goes.

Look at us we are saving you 2 billion dollars!!!

[Iceaxe]

They could go to Monday, Wednesday, and Friday and I'd be good with it. That would make tossing away all the junk mail much easier. The post office should install a spam filter, I'd pay extra for that.

Tap'n on my Galaxy G3

[Byron]

Yeah, I'm with you, Ice...it's just one less trip to the mailbox for firepit kindling. They should just deliver it three days a week, encourage people to do more and more online and perhaps hire temp help around X-mas time, or sub out the packages to Fed or UPS. The post office, while not completely obsolete, is WAY too damn big and inefficient. The cost of this will remain high until the most current retirees have died off...decades from now. At least they're saving a FEW bucks by doing this, instead of demanding more taxes. Oh wait...they are doing that!

[2065toyota]

Shut the whole thing down if can't at least break even and pay for itself. The private sector has found a way to be profitable and competitive

[Scott P]

They could go to Monday, Wednesday, and Friday and I'd be good with it.

I agree. Paperless is the way to go most of the time anyway. I'd be happy with mail delivery once a week.

At least they're saving a FEW bucks by doing this, instead of demanding more taxes.

The Post Office isn't supposed to be supported by any tax money.

Lawmakers spent more than a year on postal legislation, including proposals to eliminate Saturday delivery, but were unable to agree on a bill.

This is stupid. Just let them cut back to five days a week (or less).

[KapitanSparrow]

I am all for getting rid of the institution completely. It would certainly eliminate the ridiculous unexplainable long lines at the post office.

[rockgremlin]

Ahhhh pensions....they're a wonderful idea. Until you've gotta fund it. Isn't that what sent Chevy and Ford into the shitter? And Hostess? And...and...and...

[accadacca]

Major bummer...where is that pissed off thread.

[DiscGo]

Congress / The Government is totally the reason that the USPS cannot be profitable. They call the USPS a private company but the Government makes too many decisions about how it is run.


A private company would never deliver mail to the remote/rural areas without charging more but the Government won't allow the Post Office to run like a real business.


I not only believe it is good to make these cuts (as needed) but I believe that the rural areas should only receive mail on Mon, Wed, & Fri.

[Scott P]

Congress / The Government is totally the reason that the USPS cannot be profitable.

True. The post office isn't actually supposed to make a profit (they are a de facto Congressional monopoly under the Constitution). When they started to make a profit (which is technically illegal), they were required to invest all of the "profit", the PAEA law was passed that said the post service had to allocate so much money to employee benefits. I was signed into law by Bush and had support from both political parties. Even the USPS supported the law because it was a counterbalance in given the USPS more power to set postal rates. The "problem" is that the internet has made the USPS obsolete and it happened just after the law was passed. Like many people, I haven't paid a bill by mail in many years and hardly ever use the mail system other than to receive junk mail and get packages from things I ordered online.

A private company would never deliver mail to the remote/rural areas without charging more but the Government won't allow the Post Office to run like a real business.

To do so, the Constitution would have to change drastically.

I not only believe it is good to make these cuts (as needed) but I believe that the rural areas should only receive mail on Mon, Wed, & Fri.

I agree. Places like the residents of the remote Alaska towns or in the Frank Church-River of No Return Wilderness (Idaho) have been getting expensive mail by air. There is no internet access in places like the Frank Church-River of No Return Wilderness, so they complain when mail service is discontinued, but if you are going to live out in the wilderness you shouldn't expect to be catered to for it. People living in such remote areas (especially in Alaska) usually buy their food and supplies by mail because it's cheaper than going to the nearest stores.

I wonder what would happen in places like Havasupai if mail service was discontinued? In a way I do feel perhaps a little sympathy for them. Mail is provided by mule, but the postal rates are the same as they are anywhere else. They get all their food and supplies by mail, but unlike the remote residents of places like Alaska or the Frank Church-River of No Return Wilderness they didn't have as much choice of where to live. Would places like Supai be abandoned if mail service were discontinued? Probably not, but they would drastically shrink or be subsidized.

[Sombeech]

I must say, I've been under the popular impression for a while that "The Post Office sucks, they're a bunch of clowns, screw stuff up all the time, UPS does so much better...." all the normal rhetoric about the US Postal Service.

But since we've started giving away the free helmet stickers, and after @450 getting shipped through the US Mail, and for the cheapest price, I've changed my mind that they are doing OK. I've had maybe 2 people not get their stickers out of those several hundred, but since I've hand written every address, it could have been a mistake on my part.

I still have no doubt that the involvement from the Federal Gov't is creating a few redundancies and inefficiencies, but the folks there do a decent job. When I was a shipping and receiving manager for several years for a wholesaler, Fed Ex and UPS had their amount of screw ups too. I remember more than a handful of parcels that never ever made it to the shipper or receiver. Lost forever, vanished in shipment space.

[BruteForce]

Postal service needs to be privatized and should have been years ago. UPS and Fedex do much better, IMO.

[2065toyota]

The issue wasn't really of whether or not they did a good job. Any business could do a good job if they weren't concerned about losing money. Make a budget that is positive or shut it down. I don't think there needs to be a grey area on this

[Bluff-Canyoneer]

The state (and interstate) highway systems don't make a profit either, but I hear no uproar to shut them down. Like the USPS they provide a valuable service to the country. The real question is whether we want the service or not. If so, we need to pay for it. I do agree that like many government outfits, they need some serious management changes.

As private firms UPS ( my former employer) and FedEx are under no obligations to provide service to anyone. Who is going to handle what they refuse to deliver? Especially "official" important stuff like tax returns, court related documents etc.

As a side note, I have a buddy that runs an Internet based company selling small things (clothing, binoculars etc) to both US and international customers and he insists the USPS gives him better rates and faster service than UPS. Perhaps the USPS needs to raise it rates to a more competitive level.

[2065toyota]

Comparing roads to postal delivery is comparable how?

what do you think would be higher? A toll fee for driving on a privately owned highway, or the amount of taxes you pay with your fuel use to cover the money conscious DOT

[Bluff-Canyoneer]

Let's not forget that pesky little rag called the US Constitution. Article 1, Section 8:
The Congress shall have Power To establish Post Offices and post Roads;

[2065toyota]

Thanks for showing "have the power", not mandated to do so

[Bluff-Canyoneer]

Thanks for showing "have the power", not mandated to do so

Not mandated to have an Army either (same article and section give Congress "the power to raise and support armies."

Are you suggesting we should eliminate the army along with the post office? It is a much less "profitable" than the USPS.

[2065toyota]

Brilliant comparison.

The post office can be replaced with private business
The DOT can be replaced with private business

The army is here to defend your freedom, I guess if you would rather have your junk mail on Saturday, you are an American and that's your choice (because of the Army).

http://www.usdebtclock.org/

Check out the debt clock, where the F#$% is that money going to come from. Budgets have to be set now.

Does the Army waste money? Yes. When we go to war and kick their ass, we come home after. Set a point that says don't mess with us. Don't stay there.

Any government organization that can feasibly be replaced with private should do so. We would all be better of for it