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As Mail Volume Declines, Postal Service Losing Money, Cutting Hours

Legal Monopoly

IT Specialist
USDA
Thu Feb 5, 2009 7:54 AM

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The Justice Department is constantly scrutinizing large companies such as Google and Microsoft, yet the government keeps funding this rapidly deteriorating legalized monopoly that is the Postal Service. It's a hypocrisy only our government could concoct. The duties of the Postal Service should be privatized and run by companies like UPS and FedEx rather than have an ever increasing plethora of tax payer dollars wasted to artificially prop up this failing agency.

Re: Legal Monopoly

Program Analyst
OPM
Thu Feb 5, 2009 9:35 AM
I predict in another fifty years the Postal Service will largely be nonexistant because the IT technology will have replaced it (as it has largely done so through e-mail) with bill mailings, tax forms, and other deliverables. Just look at the Entertainment Industry; soon, you will be able to download movies on a much grander scale than you can now, so there will be no need to buy the DVD's.

Re: Legal Monopoly

Retired Supv.
USPS
Thu Feb 5, 2009 10:59 AM
The Postal Service has been independent of the Govt. since 1971 and has not received any taxpayer dollars since 1982. The reason for the big losses they have incurred is the requirement, by law, that they prepay to OPM $5 BILLION a year to fund the costs of future retiree health benefits, the only federal agency required to do so. And, unlike UPS and FedEx, they are prohibited, again by law, from raising rates to compensate for shifts in the economic tide--when gas prices were at an all time high UPS and FedEx instituted surcharges to offset those gains. Each penny increase in gas prices cost USPS an estimated $8 MILLION. Be careful what you wish for with privatization. For a private carrier to provide universal service to every home and business in America now delivered by the Postal Service, rates would have to be substantially increased, probably double the cost paid by consumers now.

Re: Legal Monopoly

Fed Worker & Union Guy
DOD
Thu Feb 5, 2009 1:27 PM
Of course we could. We could select the lowest bidder. They would hire people at the lowest possible pay & benefits. The caliber of people, their training, & their dedication for being comittted & long term workers would be highly varied. They would probably never match the current government work force, as a whole. They would probably hire some illegal workers & people with criminal back grounds. (do you really want them touching your mail??) The service level would drop, as they promise one thing with the winning bid of the contract & the actual delivery to the US citizens. Cut hours, closed facilities, higher fees, quality control issues, crime.... Only a "dead ender", "Bushmonger", & neo-con would want this.

Re: Legal Monopoly

Diversity Manager
DOL
Thu Feb 5, 2009 8:54 PM
until the unworkable union contracts are rescinded there is no hope for the survival of the PO. the work rules date back to Ben Franklin and they still use the same terminology

Re: Legal Monopoly

Analyst
OPM
Fri Feb 6, 2009 7:15 AM
"Only a "dead ender", "Bushmonger", & neo-con would want this. "

Very nice - personally attack somebody who has a different viewpoint than yours. That's usually a last resort employed by extremists when losing a debate.

Re: Legal Monopoly

Student
USA
Fri Feb 27, 2009 9:26 AM
Fed Worker & Union Guy, are you saying those issues don't exist in the PO, that they are a huge problem with FedEx/UPS, or that the American public is too stupid to select their own service based on its merits?

How about this. The cheap, crappy mail service that would inevitably spring up would be accepted by some. Then a competing, higher-quality higher-priced agency would compete for those (like you and me) who don't want crappy mail service. Then, miracle of miracles, the crappy service would probably get better and keep a lower price! Then the higher-quality service would have to cut costs!

You're acting as though the current monopolizing mail service is somehow above the problems you mentioned, or as if somehow one crappy mail service would dominate and monopolize the entire market. Well, they are right now; that wouldn't be the case if the free market were allowed to do its thing.

Postal Service Deficit

Retired manager
USPS
Thu Feb 5, 2009 10:29 AM

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While the recession and transportation costs are significant contributing factors to the Postal Service's $2.8 billion deficit in FY 2008, the drop in mail volume - especially First Class Mail - has been going on for some time, courtesy of the computer's influence on communications.
Computer technology has made it possible for companies to bill customers and for ustomers to pay bills - on line. Email has arguably replaced letter writing as the primary means of written communication. All of this has occured since the 1990s and continues to advance. During the same period, the Postal Service continued to focus on expanding its capacity to process first class mail - even as first class mail volumes dropped. It is worth noting that the organization has also modified existing equipment and developed new equipment to process Standard Mail.
The Postal Service has been in the red before and worked its way back into the black. This time around it may be a tougher challenge.

Privatization of the Postal Service would not help

Paralegal Specialist
United States Postal Service
Thu Feb 5, 2009 11:02 AM

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The IT Specialist from USDA is wrong. The Postal Service does not receive any tax dollars, but is required to earn its revenue from the sale of its products and services. Fedex and UPS couldn't handle our volume, at affordable prices. Right now, you can send a 1-ounce letter to Guam, U. S. Virgin Islands, the Alaskan Bush, etc., for 42 cents. Fedex charges over $20 to carry the same letter and picks and chooses only the most profitable areas in which to deliver, adding surcharges for Saturday and residential delivery, gasoline price hikes, etc. In 2 days, the Postal Service delivers more items that Fedex and UPS together carry all year; they simply couldn't compete, at a price people could afford to pay.

USPS and tax dollars

Manager
US Postal Service
Thu Feb 5, 2009 11:13 AM

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Another miss informed person, the postal service does not recieve tax dollars. We are self supporting. off are income. As for the monoply, if you offered fedex or UPS our work they wouldn't want it, as it is not cost effective for them to go to every mail box six days a week, in fact they turn some of there packages over to us to delivery, when they do not want to go to some of there out of the way deliveries.

Reduction in Usage by the average Person

Admin Assistant
USDA Forest Service
Thu Feb 5, 2009 11:26 AM

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I don't think they can blame it all on the recession.....with so many companies now taking payments via the computer and telephone....the need to mail items has drop just based on these factors for the average person. I now pay all my bills and make orders using the computer and phone so that has reduced my needs for stamps to maybe 1 per month versus approx 10 to 15 per month just to pay your bills.

Freezing oy exec sal

Rural Carrier
USPS
Thu Feb 5, 2009 2:32 PM

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Pleas check and see what the big bosses raises were last year! I am sure that they can afford a freeze this year!!

The Postmaster general makes more than the VP of the Us! OK

Re: Freezing oy exec sal

Tax Payer
Citizen
Thu Feb 5, 2009 7:19 PM
There are other places the USPS could cut costs that are very obvious.

I lived in Central Oregon from 1990 to 1999 and there are two little towns (Crescent and Gilchrist) about 50 miles south of Bend that have a combined population of about 500 people, (with a very sparse rural populatiuon in the surrounding area since it is mostly National Forest Land, or else timber company lands). BOTH of these towns had their own Post Office, EACH with it's own full-time Postmaster, and the PO's were only a mile apart! What a waste!

Potter's comments

Rural Carrier
USPS
Thu Feb 5, 2009 7:44 PM

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Potter says, "We are taking bold steps to cut costs immediately." Had the postal service started taking bold steps to cut costs several years ago, they wouldn't be in such dire straits today. Where in Potter's comments does it mention getting rid of all the middle management and other positions that are totally unnecessary?

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