PMG To Postmasters: “First-Class Mail continues to decline, double-digit growth in packages”

upmaPostmaster General Megan Brennan congratulated UPMA members on their first national convention and thanked them for the opportunity to address them. She also thanked the veterans in the audience and said the agency is proud to be the largest civilian employer of veterans.

The PMG talked about the state of the business; single-piece First-Class Mail continues to decline. She noted that many customers digest their information using smartphones, iPads and notepads; this has implications for the Postal Service. The bright spot is double-digit growth in packages. “We’ll continue to grow,” she said, “but that growth has slowed.”

This puts pressure on the network and is why, over the years, changes have been made to the infrastructure. The Postal Service is self-funded, which requires making some difficult business decisions. “Any business would make adjustments to their infrastructure based on overall decline and changes in the mail mix,” she pointed out, “whether it’s consolidations or staffing in our mail processing facilities. The reality is we can slow the diversion, but we’re not going to stop it in terms of what’s happening in the broader marketplace and the way Americans consume information and communicate.”

Brennan stressed the importance of Postmasters providing information to their employees, customers and public officials. She commended UPMA for doing a tremendous job advocating for the Postal Service. “Your treks to Capitol Hill matter; the economic impact of the Postal Service matters,” she said. “Thank you for advocating for regulatory and postal reform.”

The Postal Regulatory Commission (PRC) is in the midst of its 10-year price review to determine if the current price cap is working—a requirement of the 2006 “Postal Accountability and Enhancement Act.” The review will determine if the cap stays in place, is modified or will result in a new pricing methodology. “An austere price cap tied to inflation is not workable,” she declared. “It’s not suitable for a network environment that has a universal service obligation and competition in every line. We have to continue our advocacy in front of the PRC.”

Regarding current postal reform legislation, H.R. 756, Brennan said the agency has met with new House Oversight and Government Reform Committee Chairman Trey Gowdy (R-SC). “Gowdy has been on the committee and is well-versed in postal issues,” she said. “Our expectation is to meet with him and help advance this bill. Absent legislation, we’re not going to return to firmer financial footing or be able to ensure the long-term viability of this organization.”

Brennan also stressed the importance of satisfying customers based on their terms. The definition of service has expanded well beyond transit time: It’s the customer experience at every touch point. “Part of what we need to do is make it easier for customers to do business with us; we have to simplify our processes,” she said.

She is excited about the Postal Service’s Informed Delivery offering and said it’s important for Postmasters to promote the program with their employees and customers. Informed Delivery is one strategy for the increasingly digital world; it builds anticipation for mail. The program is offered across the country and is available as an app. Currently, about 4 million users are signed up.

Brennan pledged to continue to invest in training for employees. “Nothing’s more important than engagement with employees,” she pointed out. “People move the mail. Postmasters are leaders in the organization and in their communities; there is value in that. You help drive that culture. If we don’t have engaged employees, we can’t provide the best customer service.”

Brennan acknowledged there are challenges. “But there’s a way forward,” she stressed. “Collective efforts coupled with regulatory reform and legislative change will ensure the long-term viability of this organization.”

10 thoughts on “PMG To Postmasters: “First-Class Mail continues to decline, double-digit growth in packages”

  1. It’s amazing the the PMG continues to push for H.R. 756. This simply shows how disconnected she is with reality. This is not good legislation and will do little for USPS finances long term. The health care provision will hurt retirees and employees and according to the CBO save little or nothing. Most of the “savings” in this legislation comes from a rate increase. The PRC is currently reviewing the rate process and rates which should result in fixing the very flawed rate process that was part of the 2006 PAEA and provide the USPS revenue needed to fulfill it’s obligations to the citizens of this country. The USPS must focus on it’s core mission, efficiently serving every address and person in this country with the highest quality postal service and get away from a continuous focus on cost cutting and solutions that hurt employees and retirees. Management must acknowledge that long term viability will come from providing products and services needed by the people living in the USA, charging fair and reasonable rates for these products and services and not by cost cutting or not living up to promises made to employees and retirees by trying to get Congress to take away earned benefits.

  2. New York City,nowadays,does NOT need two USPS District Managers,one in Brooklyn,NY;and another one,in New York,NY(Morgan) Of course,the District Manager’s,are accompanied by offices full of high-paid,high-pensioner USPS various bureaucrats. Eliminate,one of these New York City Postal-Districts. Triboro(Brooklyn,Queens,Staten Island and,110 neighboring Nassau County);seems to be the BEST target–for elimination. After all,all originating(Outgoing) mails,have been processed;only at Morgan–since July 2013. Perhaps,even the Mid-Island,NY(Long Island),Postal-District,should also be”consolidated “into a single greater New York City,District-Manager’s office? In time,this would surely lead to saving a few Bucks!!

  3. BLAH BLAH BLAH BLAH BLAH More toolbag hot air.
    Muffin Meghen needs to get rid of half of Management
    and wow the PO will be in the black. Remove as many toolbags
    as possible. Clean out the trash. How are those new delivery
    standards working?

  4. “adjustments to the system with declining mail volume”, except getting rid of bloated postal mismanagement bureaucrats lol. Missy IOD Brennen speaks with fork tongue…….why President Trump doesn’t get rid of this Obammy holdover is beyond me.

  5. so………………………….still dollar cost averaging additional UPS and FDX stock after many years of seeing this place go down hill. I do not believe one word out of IOD Brennen’s mouth. they borrowed their limit from the US Treasury years ago (20-30 Billion) and have not paid a dime of taxpayer’s money back and now with President Trump they will not get a dime from him the next 8 years.they own this mess and now they have to contend with AMZN and WMT using their chain logistic management system to deliver goods. latest report says they lost 2.1 Billion the last quarter……funny Pan American Airways went bankrupt when the banks would not give them 13 million. this dump reminds me of the HMS Titanic, dead in the water and just a few hours before it sinks to the bottom. now they are at it again attacking job bids at the plants….trying to save the top heavy postal mismanagement…..they can run but can not hide. I just wish President Trump could send in a survey team from the private sector to investigate from top to bottom and cut the 110,000 down to 10,000. Brennen is just a big joke from the Donehoe clown show. the cherry on top is these criminals stealing PFP bonus money while losing billions.

  6. You have to look at it this way….first class letters down…but we are the only one to deleiver letters no competition… parcels everyone does//plenty of competition

  7. Any one who gives their email addy (informed delivery) to the USPS is a fool.

    The fact that they’re trying to push this on us employees should be a red flag.

    Bet they’re selling every address they get.

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