Potter Defends Postal Service in Spite of Fiscal Losses

POSTAL SERVICE REPORTS CONTINUING LOSSES
Yet LEVELS OF SERVICE REMAIN STABLE

The Postal Service posted a net loss of $1.9 billion on a volume decline of 88.1 billion pieces of mail for the six months ended March 31. As noted in the News Memos, business by AP, the post office is asking congress to reduce delivery from 6 days to 5 days,

As Americans turn more and more from paper to electronic communications, the number of items handled by the post office fell from 213 billion in 2006 to 177 billion last year. Volume is expected to shrink to 150 billion by 2020.

At the same time, the type of material sent is shifting from first-class mail to the less lucrative standard mail, such as advertising. As people set up new homes and businesses, the number of places mail must be delivered is constantly increasing.

The agency has asked Congress for permission to reduce delivery days and has previously discussed the need for other changes such as closing some offices. The response was cited in the AP News memos blog:

Frederic V. Rolando, president of the National Association of Letter Carriers, also urged Congress to provide the post office with “financial breathing room,” but he opposed eliminating one day of delivery.

“I do not believe that weakening our commitment of six-day service to the public will enhance the long-term position of the Postal Service as a critical element in our nation’s economic infrastructure,” Rolando said.

Postmaster General John Potter says this is further evidence that USPS continues to face incredible challenges, and reinforces the need for legislative and regulatory changes necessary to maintain a viable Postal Service. Two of those changes could save the Postal Service more than $8.5 billion in the first full year they are implemented: restructuring the prepayment of retiree health benefit payments and eliminating one day of delivery service per week.

Despite the ongoing financial challenges, Potter commends employees for continuing to take costs out of the system and maintain high rates of customer service. On-time delivery of mail during the past three months was largely steady with 96 percent of overnight single-piece First-Class mail delivered on time.

Overall, 85.7 percent of respondents polled in the most recent Customer Experience Measurement rated their experience in the top two categories - "very satisfied" or "mostly satisfied" - during the past three months.