Open Enrollment | Subscribe to Printing Impressions HERE
Connect
Follow us on
Advertisement
 

USPS Offers 10-Year Viability Plan

March 5, 2010
WASHINGTON, DC—Facing unprecedented volume declines and a projected, cumulative $238 billion shortfall during the next decade, Postmaster General John Potter outlined an aggressive plan of cost cutting, increased productivity and an array of legislative and regulatory changes necessary to maintain a viable United States Postal Service.

“The crisis we’re facing gives us an historic opportunity to make changes that will lay the foundation for a leaner, more market responsive Postal Service that can thrive far into the future,” Potter said, stressing that there is no one single answer or quick fix to the crisis.

Mail volume is projected to fall from 177 billion in 2009 to 150 billion in 2020. That represents a 37 percent decline in First-Class Mail alone. Revenue contributed by First-Class Mail will plummet from 51 percent today to about 35 percent in 2020.

“Ensuring a Viable Postal Service for America,” the Postal Service business plan, addresses these challenges, and describes a flexible, agile Postal Service that can adapt to America’s changing mailing habits and preferences.

If the Postal Service takes no action, it will face a cumulative shortfall of $238 billion by 2020. But Potter outlined a number of actions that could amount to as much as $123 billion in savings during that same time period. These actions build on the Postal Service’s record of saving more than $1 billion every year since 2001 and include continuing to aggressively control costs and eliminating hundreds of millions of work hours.

Despite these efforts, an estimated $115 billion shortfall will remain. The business plan identifies actions to close that gap:

• Restructure retiree health benefits payments to be consistent with what is used by the rest of the federal government and the majority of the private sector and address overpayments to the Postal Service Civil Service Retirement System pension fund.

• Adjust delivery days to better reflect current mail volumes and customer habits.

• Continue to modernize customer access by providing services at locations that are more convenient to customers, such as grocery stores, pharmacies, retail centers and office supply stores. Increase and enhance customer access through partnerships, self-service kiosks and a world-class Website.

• Establish a more flexible workforce that is better positioned to respond to changing demand patterns, as more than 300,000 employees become eligible to retire in the coming decade.

• Ensure that prices of market dominant mailing products are based on demand for each individual product and its costs, rather than capping prices for every class at the rate of inflation.
 

COMMENTS

Click here to leave a comment...
Comment *
Most Recent Comments: