Postal Service Sees More Cuts to Workforce Costs to Avoid Running Out of Money by 2024

While the Postal Service hopes to grow revenue through package services—the agency said it would deliver all e-commerce shipments locally within 24 hours and anywhere in the contiguous United States within two business days—its market share has begun to decline as private sector companies and shippers have expanded their delivery networks. USPS said it will attract new customers by expanding services, such as growing the use of 24-hour self-service kiosks.

The Postal Service will also continue to squeeze costs out of its workforce, pledging to reach new collective bargaining agreements with employee unions that provide more favorable terms to the agency. It will enhance its pay-for-performance for non-union workers to better reward top employees. In the last decade, USPS has slashed 84,000 career positions in favor of creating lower compensated non-career posts. The agency has also established a new tier of lower-earning career workers. Still, postal management said retirement pensions and retiree health care make up 35% of its personnel costs, which continue to rise faster than inflation. The Postal Service said it must have legislative changes to those cost drivers or identify “other means of financing.” It previously detailed a 10-year business plan to Congress in which it floated dramatic changes to employees’ pay and benefits.

USPS also promised to give employees better technology to carry out their jobs, such as equipping all workers with smart devices, and to improve oversight of worker safety.

CONTINUE READING AT » Government Executive
Subscribe
Notify of
14 Comments
Inline Feedbacks
View all comments

How about cutting out the layers of management, whom are brainless, and all of their bonuses. How about getting rid of the deadbeats and relying on the ones who do their job to cover for them.

???? agree…well said Randall????

How about stop over paying CDS/HCR Suppliers for extra trips they don’t need to make. https://www.uspsoig.gov/document/contract-delivery-service-costs

How about repealing the pre funding mandate? Without that, the USPS made a profit last year. But why let facts get in the way of a good story right?

Improve oversight of worker safety. They’ve never gave a $h!t about safety before. Only give it lip service and pretend they care. Are they doing the same thing again?

Approve the buy back sub time I will retire!!!

I thought we we’re self-sufficient, totally funding postal operations through the sale of postage and didn’t depend on taxpayer dollars…at least that’s the kool-aid postal brass and the unions have been serving up for countless years.

How about getting rid of worthless managers? Why does every office need 5-6 managers sitting around going nothing significant? Management is too worried about superfluous things like MSP scans and stalking/harassing carriers trying to do a good job. The entire organization is morally bankrupt. The laggards in management are more concerned about job completion times than actually providing good services. Consumers in the 21st century are more concerned about service/quality. Customers don’t want to get their mail at 10 PM b/c they are too cheap to properly staff local post offices.

Cut out management bonuses that affect other employees. It makes bad manager’s because they only care about making that bonus. Create a package route in most offices . Let them deliver the over sized packages in a llv . This will help carriers in POV. Help carriers to get back in evaluation & stop second trips . Maybe they should have a team of carriers & plant workers help them figure out how to fix the post office ????

Why don’t we get rid of half of the people at the top. That would take care of a lot of the revenue of the Postal Service. Big Government never is a good thing just like Big Management at the top is a waste of our good money. We could be putting more carriers on the street and clerks in the offices and still save a lot of money. We have too many chiefs and not enough indians!!!!!

I have less than a minute a mailbox. 9 hours times 60 minutes in an hour, 540 minutes. I totally understand that the PO needs to deliver a product people will pay for Parcels. But being a carrier we are already pushed to the max. Get us bigger mailboxes. Parcels are way more manual labor for clerks and carriers. To be the low cost carrier and loose money when every other company makes money just proves we should get our managers from every other company. Lastly to take away stuff promised to somebody that worked for PO and retired .… Read more »

I hope you’re working at McDonald’s instead of the post office by saying something as take away what’s promised when you retire. Because you’re cutting your on throat there.

I would rather drive a 30 year old truck than loose pay.

They always say you get like 5 minutes a parcel. Yet the route evaluation is less than a minute a box. Like if your route is that way also.