Congress Coerces USPS to Keep Saturday Delivery
WASHINGTON, DC—Bowing to pressure from Congressional leaders, the U.S. Postal Service (USPS) is axing its plans to discontinue Saturday deliveries come August. The USPS will instead look to increase postage rates above the rate of inflation and seek to renegotiate union deals as alternative routes to profitability.
Following its board of governors meeting Wednesday, the USPS said it had no choice but to shelve its plans following last month's continuing resolution from Congress. In a statement, the governors wrote it will delay implementation "…until legislation is passed that provides the Postal Service with the authority to implement a financially appropriate and responsible delivery schedule."
The move to eliminate Saturday delivery would have saved the USPS—by its estimates—$2 billion a year in operating costs. It will seek to renegotiate with its unions while also seeking above-inflation rate increases, especially for those services not covering their costs (primarily standard mail flats and periodicals). The USPS lost just under $1.2 billion combined on the two services last year.