Dear Presidential Postal
Commission Member:
Congratulations, you
have been selected to fix the U.S. Postal Service (USPS). What an
envious job you have. It's a job that many Americans would like to
have, from the many little old ladies who have their own opinions
about the Post Office, to the small business owners, direct
mailers, postal employees, postal competitors, and the many other
Americans who rely on the U.S. Mail.
During your tenure as
a commission member, you will likely hear from a number of "so
called" experts on how they think the Postal Service should be
shaped in the 21st century. For example, you'll likely hear from
direct mailers who believe that negotiated rates are essential to
American business, and newspaper associations that believe such
rates are "unfair and anti-American". However, as a postal
customer yourself, you already pretty much know everything you
need to know about how to fix Postal Service.
First of all, you
should already know that the U.S. Postal Service is doing an
exceedingly fantastic job of providing mail services to the
nation. You know that the price of a First Class stamp is only 37
cents, among the lowest, if not the lowest, of any industrialized
nation. You know that mail is delivered to every address in the
nation six days a week, and that this service is overwhelmingly
secure, reliable, and efficient. You know that few of the letters
you receive in the mail actually have 37 cents postage, and that
many were mailed at about half the First Class rate, and some were
mailed at the ridiculously low rate of 7.2 cents a piece. You
know, that despite these low rates and universal service, the
Postal Service still manages to pay its workers reasonable
salaries and about 85% of their health care costs, and still
manages to make a profit each year (based on a recalculation of
CSRS retirement fund payments). You know that the publicly
maligned Postal Service could in fact teach private business a
thing or two about logistics, human resources, technology
implementation, and persistent production. And you also know that
the Postal Service, which has tens of thousands of postal
facilities, 700,000+ postal employees, and complex governmental
and regulatory guidelines, is headed by a
CEO making only
about $161,000 annually, about what the owner of an
eight-store Subway franchisee would make in a year.
But what you also
know is that many mail deliveries are not as important or critical
as they used to be. You know that U.S. Mail is now only one of
many communications mediums in this electronic world, where
messages travel at speeds up to 186,282 miles per second. You know
that deliveries are getting later and later in the day. You know
that there is not piece of mail that you receive on a Saturday
that couldn't have been delivered on Friday or Monday. You see
Casual employees in street clothes delivering mail. You don't see
collection boxes anymore. You wait in longer and longer lines to
mail packages at the local post office, and probably roll your
eyes after about the fourth of six
Mystery Shopper
questions. You know that
automation is
increasing productivity exponentially with each new automation
initiative, but yearly profits remain relatively thin year to
year. You discern that the money savings from automation is being
regurgitated into
costly tech
programs and the high-tech salaries of people that run them.
(These programs can calculate and analyze mail operations a
thousand different ways, but they don't transport, sort or deliver
the mail!) You've learned about confrontational labor/management
relations and see thousands upon thousands of grievances - many of
which are frivolous, some that are real, but all that are costly
in both human and dollar terms.
By knowing these
things then, you already know what needs to be done. (As a postal
customer, you already know what needs to be done.) You know that
eliminating
Saturday delivery would reconcile U.S. Mail deliveries with
the business world, where almost 60% of all businesses are closed
on the weekends. You know that the USPS could still sort mail to
P.O. Boxes on Saturdays, sell stamps on Saturdays, and still
deliver to and pick up from certain key postal
customers/businesses on Saturdays where it would be practical and
logical to do so. You know that in this electronic age that letter
carriers don't need to be walking door to door anymore. You know
that they need to be
driving from
box to box, a move that would make the USPS more efficient,
reduce injuries to carriers, and make automated mail compatible
with the actual delivery of mail. You probably also want a regular
full-time carrier delivering your mail, not a Casual employee who
has little stake in his employment, or your mail, because he or
she only has a three-month contract with the USPS to deliver mail.
You already know that
negotiated rates are problematic and probably unfair. You know
that American business can be (and has been) successful with the
already great low rates they receive. You also know, however, that
the rate-making process between the Postal Rate Commission and the
USPS needs to be streamlined and to be made less confrontational.
Speaking of
confrontation, you also know that basic incentives and controls
that drive destructive behavior in the Postal Service needs to be
remedied. You know that letter carriers who are paid by the
minute, for example,
need positive
motivations to complete their jobs, not restrictive and
excessive controls. You know that bonuses that are supposed to
drive managers to achieve greater results, actually in many cases
unintentionally drive managers to develop costly workarounds to
achieve targeted goals. You know that bonuses aren't the answer,
but you know that some postal executive salaries need to be raised
so that they can remain competitive with private-sector salaries.
(Perhaps postal executive salaries could be based on Federal
executive salary tables?)
But as a Presidential
Postal Commission member, who was appointed by President Bush, you
know you can't lower rank-and-file salaries because President Bush
has already promised that he would leave no workers behind. (He
especially wouldn't want to leave his own federal workers
behind!). As such, you should know to be leery of "contracting
out" proposals. You know that "contracting out's" only purpose is
to pay people less.
You will have
probably heard from direct mailers and postal executives that
rank-and-file postal workers are paid too much and that their
health benefits are a threat to low and stable rates. But wait!
You already know that the USPS is a financially viable institution
that has found a way to pay its workers decent middle-class
salaries with health and other benefits, and still has managed to
make a profit by selling some postage at 37 cents, and a lot of
other postage at cheaper rates. You know that there would be an
outcry and a backlash against the Postal Commission and President
Bush if postal pay were reduced so that mailers could get postage
at 6.2 cents a letter instead of 7.2 cents! You know that this
proposal alone would probably cost Bush the next election.
I know that there are
a lot of other postal issues on the table, but I know that as a
postal customer and as a Presidential Postal Commission member you
will do the right thing in each case. You know that I know that
you know. |