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.