Postal Service Revenue Rises as Service Cuts Loom
BURLINGTON, Vt., Nov. 14 – Calling on the Postal Service to avert damaging service cuts and job losses, U.S. Sen. Bernie Sanders (I-Vt.) pointed to a new report today [added by pr] that revenue for the mail delivery service rose by $569 million during the fiscal year that just ended.
It was the second year in a row that profits rose, mainly because of increases in package deliveries to online shoppers.
Despite almost $1 billion in revenue growth over the past two years, the Postal Service is forging ahead with plans to shut down as many as 82 mail processing plants beginning in January. The closings would put 15,000 jobs in jeopardy.
“Despite increased revenues and some very positive trends, Postal Service management seems hell-bent on slowing down mail delivery which is a self-destructive path that could put it into a death spiral,” Sanders said.
The Board of Governors on Friday appointed Megan J. Brennan [link added by pr] to be the new postmaster general. A top aide to outgoing Postmaster General Patrick Donahoe, Brennan has pursued some of the same damaging proposals to cut services and eliminate jobs.
“I hope that Ms. Brennan understands that the Postal Service clearly needs to rethink its current approach. If it is going to be competitive and successful in the modern era, it cannot simply cut, cut and cut more. It needs to be creative and strengthen services that the American people need.” Sanders said.
While revenue for mail delivery is rising, USPS bookkeepers showed a deficit for the past year because of an onerous and unprecedented Bush-era law that requires it to pre-fund 75 years of future retiree health benefits for a program that already has more than enough reserves set aside. Without the mandate, the Postal Service would have made an operating profit of $823 million over the past two years.
The unnecessary financial burden on the Postal Service would be relieved under legislation Sanders introduced on February 13, 2013. It now has 28 co-sponsors. The Sanders bill also would modernize the Postal Service and let it expand its business operations without the need to slash services or eliminate Saturday mail.
- USPS Board of Governors Selects Megan Brennan as 74th Postmaster General and CEO November 14, 2014
- Postal Workers Cheer Postmaster General’s Resignation, Call for Moratorium on Closings November 15, 2014
- Senator Sanders: New PMG pursued damaging proposals to cut services and eliminate jobs November 14, 2014
- PMG Donahoe to retire in February 2015; USPS COO Megan Brennan named successor November 14, 2014
- Issa Statement on Retirement of Postmaster General Patrick Donahoe November 14, 2014
- Senator Tester statement on appointment of new Postmaster General
- NALC statement on PMG retirement; USPS 2014 financial report November 14, 2014
- Statement by APWU President Mark Dimondstein on Patrick Donahoe Stepping Down as Postmaster General November 14, 2014
- Postmaster General Donahoe to Retire February 2015 November 14, 2014
The post office is dying because of the pathetic union loving workers who do not but complain……Those people, craft workers are killing the post office…..You all know who they are some of you might even be that person, every office has some…Those people are the ones who need to go…Wake up people…5 day here we come….these new standards set to take place is paving the way for 5 day…I can’t wait
Fed up, you need to remember that Brennan has left a trail of past “accomplishments”, so while I wouldn’t stoop to criticize someone personally, she nonetheless is subject to criticism and commentary if she wants to be the big boss. The unions sure aren’t perfect either, and they’re not making enough impact to sway Congress’ opinion, not to mention the fact they’re horribly out-lobbied.
It’s the Bush law of 2006 and its pre-funding that created this nightmare, no doubt about it. It’s management’s fault for handling the situation so poorly.
Very well said senator sanders…FEDUP its obvious your one of the delusional postal supervisors that dont have a clue and it is you that don’t work and that’s why your now in management. My guess you got in trouble while a craft employee then they promoted you. Congrats they don’t want leaders only puppets. I see all these excess supervisors not doing anything but trying to hide. Not enough money to keep the plants open? Great a uneducated moron commenting like he knows what he is talking about. FEDUP why don’t you give up some of your salary and the post office can save alot of money. People complain about what the actual workers are making. The PMG, who is now finally retiring, said he was not willing to take pay cuts. He makes a sick amount of money and bonuses. Well if it doesn’t start at the top man why should it start at the actual workers? Tired of the hippocrates. Post office has been free from taxpayer money and had a excellent business model. Greedy fatcats wanting to line their pockets and want it privatized so they can get richer. If the post office privatizes I hope you postal supervisors don’t get caught profiting from this. The unfair mandate needs to change. Give the post office the freedomto useis own money and make the mandate more realisticThat’s the legislation this senator is trying to do. As for people like FEDUP…it is you that we are fed up with.
Your just one of those employees who think craft employees could manage themselves. My experience says there are many who could; but then you would have no one to blame. Not all supervisors are bad managers just like not all employees are poor workers. So get off your high horse and don’t think you know it all. Congress is the issue here. The current revenues don’t support the organization even if you got rid of all the managers. Decisions are made based on what the organization controls. Some are not popular but because of the lack of support by our elected officials they are necessary. Stop criticizing the organization from within and help get Congress to do there job.
Your view is either intentionally uninformed or completely blind. You’re a poster boy for those who think that they are the only people that do the hard work. I’ve got news for you, I move the mail, and you have no idea. Bernie Sanders has been working for years to save the P.O, it’s the neo con/Libs that are undermining his efforts.
Mr. Senator get off your butt and pass legislation to assist the Postal Service. You all complain about the path of the Organization but do nothing to give it the freedom to aquire different revenue sources. The current system can’t support the current number of facilities and service standards. The alternate revenue streams would be able to help. So do your job before you tell others how to do theirs.
The postal service isn’t dying, look at the operating surpluses!
The postal service is being killed.
Is it because the executives think they’ll get rich in privatization?
Or are they just profoundly incompetent?
People seem to be confused. Increased Revenue does not mean increased
profits. You people can cry all you want about the Pre funding but if you are paying a mailman almost $40 an hour in O/T to deliver a 3rd class piece of mail that cost the mailer about 9 cents or less to mail, you will have problems. Why should the public pay 49 cents for a letter and a non profit pay 6 cents and through the wonder of DPS both letters arrive at the same time. It’s not fair to the paying public. Get rid of 3rd class, everything should be first. Another thing, are we really charging UPS and FEDEX enough to deliver last mile or are we just going for volume???
It is due to inefficient management Stevie.
Right now, congress is the number one problem (yes fed up) thanks to 06 insane prefunding. Then it’s cuts, cuts…then it’s operating inefficiency. We also need more service choices for the customers and more marketing flexibility. Goin Postal’ ad flyer says” : avoid the long lines at the post office….ya…No s*it!!
The USPS is already in a death spiral.
Only the incompetent, corrupt bozos in postal mgmt would think an equation of increased product prices with less service, equals increased revenue.
Well, TSP, you are correct, but at some level management knows what it’s doing with the bulk mail. We love to classify all of them as imbeciles, and indeed there are a ton of them, but the main enemy as far as direct marketing is the bribes that DM’s pay out to high ranking USPS officials for the sweetheart rates and the enormous amount of campaign contributions they make to Congress to insure the low rates. Direct marketers make obscene amounts of money because rates are so low, and the Service loses money through overtime for the most worthless stuff we deliver for them.
Like any large business or organization, the higher you go the more corrupt it gets. The USPS especially uses the nepotism/ass kisser mentality to promote unfit people to lead offices, plants, districts and area offices. The most productive, the carriers, both rural and city, seldom get out of their craft unless they have the crucial connections. We call it the SFWR qualification – Suck up, Fuck Up, Whore and Relative. The more letters you have, the better your odds of having your nose up somebody’s ass on the rung. We’ve seen it far too many times and know this is how it works.
I’m afraid with this pmg now in charge the bull will continue.
Leave the Post Office alone!!!
Meg Brennan is only going to finish off the dying Postal Service. Thanks, Board of Govenors
It’s easy to criticize someone you don’t even know. You’re probably are one of the lazy employees that make the good employees look bad. The issue isn’t the leadership ; it’s the congressional constraints put upon it. No different than your own budget. If you don’t have the money to pay the bills you do things that may not be popular but necessary. The faster individuals like you and the unions figure it out who the real enemy is; the better off we will all be. Congress is the issue. The individuals you elected are the problem.