Democratic presidential candidate Pete Buttigieg contributed to a series of recommendations to improve the financial footing of the U.S. Postal Service that included slashing the career workforce, reducing benefits and closing processing plants.
The South Bend, Indiana, mayor worked on the report while a consultant at McKinsey & Co. With mail volume plummeting, USPS hired McKinsey to generate ideas for cutting costs and growing revenues. The firm delivered its report with an array of proposals in 2010, though a campaign spokesman said Buttigieg’s work specifically focused only on the revenue side.
McKinsey cited as a “key action” the need to replace departing career employees with non-career counterparts. Non-career workers earn less generous pay and benefits than their career counterparts. The report suggested USPS take advantage of “natural attrition” and said its existing efforts were insufficient.
“The USPS has been responsive to declining volume, but recent work hour reductions will become increasingly difficult to replicate,” McKinsey wrote in the report, noting that most of the cuts had come at the expense of non-career employees and overtime.