Postal Service to end Saturday mail delivery
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WASHINGTON (AP) - Apparently trying an end-run around an unaccommodating Congress, the financially struggling U.S. Postal Service says it will stop delivering mail on Saturdays but continue to disburse packages six days a week.
In an announcement scheduled for later Wednesday, the service is expected to say the Saturday mail cutback would begin in August and could save $2 billion annually.
The move accentuates one of the agency's strong points - package delivery has increased by 14 percent since 2010, officials say, while the delivery of letters and other mail has declined with the increasing use of email and other Internet services.
Under the new plan, mail would be delivered to homes and businesses only from Monday through Friday, but would still be delivered to post office boxes on Saturdays. Post offices now open on Saturdays would remain open on Saturdays.
Over the past several years, the Postal Service has advocated shifting to a five-day delivery schedule for mail and packages - and it repeatedly but unsuccessfully appealed to Congress to approve the move. Though an independent agency, the service gets no tax dollars for its day-to-day operations but is subject to congressional control.
It was not immediately clear how the service could eliminate Saturday mail without congressional approval.
But the agency clearly thinks it has a majority of the American public on its side regarding the change.
Material prepared for the Wednesday press conference by Patrick R. Donahoe, postmaster general and CEO, says Postal Service market research and other research has indicated that nearly 7 in 10 Americans support the switch to five-day delivery as a way for the Postal Service to reduce costs.
"The Postal Service is advancing an important new approach to delivery that reflects the strong growth of our package business and responds to the financial realities resulting from America's changing mailing habits," Donahoe said in a statement prepared for the announcement. "We developed this approach by working with our customers to understand their delivery needs and by identifying creative ways to generate significant cost savings."
But the president of the National Association of Letter Carriers, Fredric Rolando, said the end of Saturday mail delivery is "a disastrous idea that would have a profoundly negative effect on the Postal Service and on millions of customers," particularly businesses, rural communities, the elderly, the disabled and others who depend on Saturday delivery for commerce and communication.
He said the maneuver by Donahoe to make the change "flouts the will of Congress, as expressed annually over the past 30 years in legislation that mandates six-day delivery."
There was no immediate comment from lawmakers.
But others agreed the Postal Service had little choice but to try.
"If the Congress of the United States refuses to take action to save the U.S. Postal Service, then the Postal Service will have to take action on its own," said corporate communications expert James S. O'Rourke, professor of management at the University of Notre Dame.
He said other action will be needed as well, such as shuttering smaller rural post offices and restructuring employee health care and pension costs.
"It's unclear whether the USPS has the legislative authority to take such actions on its own, but the alternative is the status quo until it is completely cash starved," O'Rourke said in a statement.
The Postal Service is making the announcement Wednesday, more than six months before the switch, to give residential and business customers time to plan and adjust, the statement said.
"The American public understands the financial challenges of the Postal Service and supports these steps as a responsible and reasonable approach to improving our financial situation," Donahoe said. "The Postal Service has a responsibility to take the steps necessary to return to long-term financial stability and ensure the continued affordability of the U.S. Mail."
He said the change would mean a combination of employee reassignment and attrition and is expected to achieve cost savings of approximately $2 billion annually when fully implemented.
The agency in November reported an annual loss of a record $15.9 billion for the last budget year and forecast more red ink in 2013, capping a tumultuous year in which it was forced to default on billions in retiree health benefit prepayments to avert bankruptcy.
The financial losses for the fiscal year ending Sept. 30 were more than triple the $5.1 billion loss in the previous year. Having reached its borrowing limit, the mail agency is operating with little cash on hand.
The agency's biggest problem - and the majority of the red ink in 2012 - was not due to reduced mail flow but rather to mounting mandatory costs for future retiree health benefits, which made up $11.1 billion of the losses. Without that and other related labor expenses, the mail agency sustained an operating loss of $2.4 billion, lower than the previous year.
The health payments are a requirement imposed by Congress in 2006 that the post office set aside $55 billion in an account to cover future medical costs for retirees. The idea was to put $5.5 billion a year into the account for 10 years. That's $5.5 billion the post office doesn't have.
No other government agency is required to make such a payment for future medical benefits. Postal authorities wanted Congress to address the issue last year, but lawmakers finished their session without getting it done. So officials are moving ahead to accelerate their own plan for cost-cutting.
The Postal Service is in the midst of a major restructuring throughout its retail, delivery and mail processing operations. Since 2006, it has cut annual costs by about $15 billion, reduced the size of its career workforce by 193,000 or by 28 percent, and has consolidated more than 200 mail processing locations, officials say.
They say that while the change in the delivery schedule announced Wednesday is one of the actions needed to restore the financial health of the service, they still urgently need lawmakers to act. Officials say they continue to press for legislation that will give them greater flexibility to control costs and make new revenues.
In an announcement scheduled for later Wednesday, the service is expected to say the Saturday mail cutback would begin in August and could save $2 billion annually.
The move accentuates one of the agency's strong points - package delivery has increased by 14 percent since 2010, officials say, while the delivery of letters and other mail has declined with the increasing use of email and other Internet services.
Under the new plan, mail would be delivered to homes and businesses only from Monday through Friday, but would still be delivered to post office boxes on Saturdays. Post offices now open on Saturdays would remain open on Saturdays.
Over the past several years, the Postal Service has advocated shifting to a five-day delivery schedule for mail and packages - and it repeatedly but unsuccessfully appealed to Congress to approve the move. Though an independent agency, the service gets no tax dollars for its day-to-day operations but is subject to congressional control.
It was not immediately clear how the service could eliminate Saturday mail without congressional approval.
But the agency clearly thinks it has a majority of the American public on its side regarding the change.
Material prepared for the Wednesday press conference by Patrick R. Donahoe, postmaster general and CEO, says Postal Service market research and other research has indicated that nearly 7 in 10 Americans support the switch to five-day delivery as a way for the Postal Service to reduce costs.
"The Postal Service is advancing an important new approach to delivery that reflects the strong growth of our package business and responds to the financial realities resulting from America's changing mailing habits," Donahoe said in a statement prepared for the announcement. "We developed this approach by working with our customers to understand their delivery needs and by identifying creative ways to generate significant cost savings."
But the president of the National Association of Letter Carriers, Fredric Rolando, said the end of Saturday mail delivery is "a disastrous idea that would have a profoundly negative effect on the Postal Service and on millions of customers," particularly businesses, rural communities, the elderly, the disabled and others who depend on Saturday delivery for commerce and communication.
He said the maneuver by Donahoe to make the change "flouts the will of Congress, as expressed annually over the past 30 years in legislation that mandates six-day delivery."
There was no immediate comment from lawmakers.
But others agreed the Postal Service had little choice but to try.
"If the Congress of the United States refuses to take action to save the U.S. Postal Service, then the Postal Service will have to take action on its own," said corporate communications expert James S. O'Rourke, professor of management at the University of Notre Dame.
He said other action will be needed as well, such as shuttering smaller rural post offices and restructuring employee health care and pension costs.
"It's unclear whether the USPS has the legislative authority to take such actions on its own, but the alternative is the status quo until it is completely cash starved," O'Rourke said in a statement.
The Postal Service is making the announcement Wednesday, more than six months before the switch, to give residential and business customers time to plan and adjust, the statement said.
"The American public understands the financial challenges of the Postal Service and supports these steps as a responsible and reasonable approach to improving our financial situation," Donahoe said. "The Postal Service has a responsibility to take the steps necessary to return to long-term financial stability and ensure the continued affordability of the U.S. Mail."
He said the change would mean a combination of employee reassignment and attrition and is expected to achieve cost savings of approximately $2 billion annually when fully implemented.
The agency in November reported an annual loss of a record $15.9 billion for the last budget year and forecast more red ink in 2013, capping a tumultuous year in which it was forced to default on billions in retiree health benefit prepayments to avert bankruptcy.
The financial losses for the fiscal year ending Sept. 30 were more than triple the $5.1 billion loss in the previous year. Having reached its borrowing limit, the mail agency is operating with little cash on hand.
The agency's biggest problem - and the majority of the red ink in 2012 - was not due to reduced mail flow but rather to mounting mandatory costs for future retiree health benefits, which made up $11.1 billion of the losses. Without that and other related labor expenses, the mail agency sustained an operating loss of $2.4 billion, lower than the previous year.
The health payments are a requirement imposed by Congress in 2006 that the post office set aside $55 billion in an account to cover future medical costs for retirees. The idea was to put $5.5 billion a year into the account for 10 years. That's $5.5 billion the post office doesn't have.
No other government agency is required to make such a payment for future medical benefits. Postal authorities wanted Congress to address the issue last year, but lawmakers finished their session without getting it done. So officials are moving ahead to accelerate their own plan for cost-cutting.
The Postal Service is in the midst of a major restructuring throughout its retail, delivery and mail processing operations. Since 2006, it has cut annual costs by about $15 billion, reduced the size of its career workforce by 193,000 or by 28 percent, and has consolidated more than 200 mail processing locations, officials say.
They say that while the change in the delivery schedule announced Wednesday is one of the actions needed to restore the financial health of the service, they still urgently need lawmakers to act. Officials say they continue to press for legislation that will give them greater flexibility to control costs and make new revenues.
This may be too little, too late to save USPS. Why not go the extra and only deliver letter mail on M-W-F? Â I can't imagine anyone has such emergency needs that a letter or bill can't wait an extra day to be delivered.
 @kevka You're failing to include the 'union factor' into your calculations. Especially with a 2/3 control of the federal government.Â
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With any rational analysis and comprehensive reforms enacted, the USPS would lose about 1/2 of it's (union dues paying) workforce.Â
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...it might actually *GASP* break even or become profitable!!!!Â
Great, now my weekday mail will get here even later in the day. It's already being delivered anywhere between 3 and 5 PM! What happens to all those newspapers who no longer deliver every morning in person, but depend on the USPS to deliver?
First, I am not a US Postal Service basher. In fact, I think they do a great job. And I let them know every chance I get.
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As for dropping Saturday deliveries, it is long overdue. But, the US Postal Service would be in a lot better shape if they were allowed to run like an independent business. Congress saddles them with restrictions, forced bulk mail/direct mail subsidies, and restricts postal rate increases. Plus Congress dictates the terms of postal service employees. Get Congress out of the mix and I think everyone, employees and customers would be happier.   Right now the Postal Service is fighting a battle with one arm tied behind their back.
 @I812 I agree that there are a lot of really good people who work for the USPS. I also agree that they are in the unenviable position of being a federal government regulated organization. There is, however, one glaring reality about their operations that you are overlooking in your summation. They are one of the largest public employees union organizations in the country.Â
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The reality is that the USPS is an outdated business model. There is no reasonable debate about this fact. As such, they could easily cut delivery to 4 or even 3 days per week, and contract out major parts of their operations, as well as automate most of their processing centers.
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Since you brought up the comparative to the private business model, the could shutter the USPS retirement program and partner with a financial firm for a private comparable 401k or IRA with matching investments program. Any one of these things would go a LONG way towards stopping the annual hemorage of taxpayer money that the USPS experiences.
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But, the USPS union wont sign off on ANY of it. Therefore, the unions pet political party will not either.Â
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Yes, the Congress is a part of the problem. The union operational model is another part. As is the obsolescence of the business model. Addressing all 3 problems is the only rational means by which to ensure a return to fiscal reality.
@MarkKpic No real argument from me regarding your comments. Just remember that Congress pretty much controls what USPS can and cannot do so it is hard for them to be competitive with their hands tied. Also, unless it has changed recently, the Federal government has serious restrictions on what Federal employee unions can bargain over. It is not like other public sector unions at the state and local level. Improvements can be made but until congress gets out of the mix they are likely to come up short. Politics will ruin any business and the USPS is absolute proof. Whenever they want to close a post office or regional center some Congressman jumps into the fray. It is the same with closing unnecessary military bases.
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I could go on and on, but for what? It is still remarkable that a first class stamp will usually get a letter from one coast to the other in 3 days. That is pretty efficient. UPS and Fed-Ex could not do it for the price. They skimmed the cream (package delivery) but the USPS is clawing back on that one. It would be nice if USPS was allowed to operate like an independent business. Congress might find that at some point the service could actually generate money for the federal government.
With my last few experiences with picking up packages at my local PO it doesn't surprise me they are in the red.
Their hours are horrible and the wait times are just as bad if not worse than the DMV. Arrive at the PO 10 minutes before they open and there are already 6 people in line. Once the PO opens, it takes nearly 90 minutes to get through the six people in front of me. It's obvious the employees don't give a rip about anyone's schedules and have no sense of urgency to do their job faster.
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If the postal service wants to do better they need to open earlier, stay open after 5pm and kick their employees in the rear to better their customer service.
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In my many trips to Japan, one thing you see is efficiency. Go to the bank or post office and there are tellers at every window ready to help. No lines, no BS. Get in and get out.
Efficiency is not what the Post Office is about. There are 4 counter stations at my local post office. Usually only one employee is manning one of them, regardless of the number of people stnading in line with hugh boxes to mail, or with incomplete paperwork to ship whatever they have. The Post Office is not my resort destination of choice at all. Maybe I know why folks go "postal"?Â
I say that we should merge the DMV and the USPS. What could go wrong? At least the DMV people will have to wear a uniform and look professional even if nothing else changes. What does it really matter!? Ahem.
In my neighborhood, I thought they'd ended Saturday delivery years ago. There are actually a lot of days when I don't see a mail truck at all. I think they've already made cuts, but are only beginning to announce them.
@correct You don't get mail because nobody likes you.
 @oodathunked @correct Why isn't there a "dislike" button for every comment I've ever seen you make?  I absolutely know you look identical to your avatar IRL.
@Sundowner  still bet money hubby willing to help out :)
 @kramr Oh -- forgot -- the article you linked me to shows the girl parts in "perky" position.  Age/gravity changes things.
 @kramr Since I outgrew being a hot, sexy, promiscuous broad, I ain't showing that article to my husband for any reason (saving that joy for a hot, sexy, promiscuous young man!  Hahaha!).  But I'll take the M&Ms, especially the 'new' ones with almonds.  Yum. Â
@Sundowner   """""" Is there a story about the positive side-effects of chocolate?"""""
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Actually I saw something a while back regarding that and showed my wife, she at a bag of M&M's to celebrate,  but for the life of me I can't remember what it was...... Chocolate not that big a deal to me :)  If I can remember I'll forward it to you.
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This is the kind of story that sticks in my brain, show it to your hubby :)
http://now.msn.com/squeezing-breasts-can-stop-cancer
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 @kramr Don't bug me this morning, my friend.  ooda is mean-spirited to everyone, except I'll give her credit for being a non-denominational meanie.  As for my mood, I'm a little testy having fought the good fight on another issue/forum.  I'll be nice to you in a little while -- just as soon as you post something I agree on.  Is there a story about the positive side-effects of chocolate?
@Sundowner @oodathunked @correct
"""""""Â I absolutely know you look identical to your avatar IRL.""""""
While the left like to pitch themselves as the compassionate people......
In real life however, this is the kind of compassion we get from the left
right gram :)
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@Sundowner @correct Now you've really gone and hurt my feelings.
Since I work at home, this isn't a major problem, no matter which day they decided to drop. Â Like quite a few other people now, almost all my bills are paid on-line; the only regular bill I write an actual check for is my rent, and I take that over to my landlord's office 'cause it's only a couple blocks from where I live. Â I have a drop-through slot in my front door, so mail theft isn't a problem, and I'm usually home if I'm expecting a package.
Even though dropping Saturday deliveries isn't a problem for me, I know there are other people and some businesses for whom that won't be the case... Â
Maybe the post office should've taken a vote - see which day the public would prefer to have deliveries stopped...
good riddance
The US Postal Service pays no taxes:
No gasoline tax (they use a lot of it), no property tax, no tax on profits,
no sales tax, no auto registration fees, no local permit fees of any kind,.
no taxes to support police, fire, streets and highways. No utilities taxes.
Nothing, zip
They are exempt from federal antitrust laws,
state zoning laws, and even parking tickets.
They also have access to below-market rates on credit
and the right of eminent domain.
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And they still are in the RED.
Go figure.
 @Mipsfer Got NALC?
 @Mipsfer @oodathunked You may want to look into exactly WHY they're in the red.  From a HuffingtonPost article, "Since 2006, Congress has forced the Postal Service to make enormous annual contributions into a fund for future retiree health benefits, including the $5.5 billion and $5.6 billion mentioned above. In fact, since they began, these payments have accounted for more than 80 percent of the Postal Service's losses."  http://www.huffingtonpost.com/ron-bloom/reality-check-postal-service_b_1927634.html Â
 @Sundowner  @Mipsfer  @oodathunked Not to put too fine a point on it, but why is that a bad thing?
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A BIG part of the problem with the cost of public employees unions throughout the country is their retirement/pension programs. The default line of thinking seems to always be that the taxpayer will be the 'backup' plan when the inevitable fiscal realities come calling.Â
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While I can agree that the Postal Accountability and Enhancement Act (2006) was over reaching, I also believe that the preceeding policy of underfunding the USPS pension programs was inadequate. I believe the current standard is somewhere around 30% ongoing funding, prior to 2006 PAEA, the USPS was funding theirs somewhere around 15%.
@Sundowner @Mipsfer Thats why we like big government so much! They did the same thing to social security.
 I know!! Lets put them in charge of health care!
@Mipsfer  They don't have to pay for trafic infractions either.
Going from bad to worse. I don't know how many times I end up getting the wrong mail in my mailbox. At least twice a week I get the neighbors mail in my box. Apparently the sorters or the mail carrier can't tell the difference between a 5 and a 0.
Good. Run it like a business.Â
This comment has been deleted
 @Dr. Rawdog  @2012 Hope and Change No like UPS, FedEx, Home Depot, Wal-mart, Lowe's, Shall I go on or do you believe that all businesses are bad and only Uncle Sammie can make things better.
 @Dr. Rawdog  @Fuelman76  @2012 Hope and Change No but I will
http://money.cnn.com/magazines/fortune/mostadmired/top20/
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Oh crud! Well, that's one way to save money.Â
A little inconvenient but I can live with it. I think privatizing the Postal service may be the way to go.
As far as the penny increase, I still think .46cents is a bargain to get a letter from here to the East coast.
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 @Dr. Rawdog  @Pointblank Yes and at .46 cents per letter the USPS is billions in debt. What UPS and Fedex charge represent actual costs to get a letter or parcel across the country.  Oh yes, government subsidizing is warm, fuzzy and wonderful until everyone elses money dries up. But that is the liberal way. No accountability.
 @Mr. Carbon Footprint  @Dr. Rawdog  @Pointblank http://www.huffingtonpost.com/ron-bloom/reality-check-postal-service_b_1927634.html
@Mr. Carbon Footprint @Dr. Rawdog @Pointblank Â
"What UPS and Fedex charge represent actual costs to get a letter or parcel across the country."
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Well, that and fedex and ups deliver in a year what usps delivers in a week AND the ceo's usps about 800K per year, fedex and ups ceo's about 8 million a year.....ya privatize, that works for certain individuals ! Oh, and we haven't even touch that usps is one of the original mandates of the US Constitution....but hey, you probably don't like the Constitution either, right ?
Sounds like a good idea to me......
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""""""The agency's biggest problem - and the majority of the red ink in 2012 - was not due to reduced mail flow but rather to mounting mandatory costs for future retiree health benefits, which made up $11.1 billion of the losses. Without that and other related labor expenses, the mail agency sustained an operating loss of $2.4 billion, lower than the previous year.""""""""
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This is where Congress are a bunch of world class hypocrites!!!! They are forcing the USPS to account for future retiree benefits (like the private sector has to) but ARE NOT doing the same thing on a federal level.Â
Its really frightning how much the UNfunded liabilities of the feds really is.
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The numbers are higher than this since the story is a year and a half old.
http://blog.heritage.org/2011/06/07/governments-unfunded-obligations-now-total-534000-per-household/
@kramr Â
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Ya, lets listen to this "unbias" group. You actually continue to cite these nutz ! I say that because of the LAST 2 examples of principal issues !Â
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Principal Issues
Heritage Foundation's mission is "to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense.
"Heritage is the largest conservative think tank in Washington, DC.
It researches, publishes, lectures on, and markets right-wing public policy.
It organizes right-wing activists on domestic and foreign policy issues.
Heritage's publications are distributed to many thousands of people, including Members of Congress, congressional aides and staff, journalists, and major donors.
It takes credit for much of President Bush's policy, both domestic and foreign, referring to Bush's policies as "straight out of the Heritage play book.
"Heritage supports faith-based initiatives, school vouchers, ban on abortion, overturning affirmative action programs.
@sargerator  I notice your rant didn't include any links that prove it wrong!!
@kramr Cite your links, or is it the "crazies" at heritage ??
@sargerator  My link was talking about unfunded liabilities....... Please demonstrate to me how the link is incorrect with regards to the numbers posted on the link.
All that other nonsense you rant about doesn't at all answer my question in that with regards to unfunded liabilities..... where is it wrong.
@kramr This is directly from THIER home page on their beginnings....Â
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You make it TOO easy...."that prove it wrong", they prove themselves WRONG, thats why I mentioned "THE LAST 2 EXAMPLES" sheeeze !
Another government failure !!!!
Like Amtrak, Fannie Mae, Freddie Mac, Social Security, Medicare............all bankrupt !
What they could REALLY do is end the plethora of junk/3rd/4th class CRAP that we have to wade thru in order to find our important First Class mail. No, that would improve USPS Customer Service wouldn't it! Can't have that! And stamp prices just got raised! What a coincidence. "Pay more to get less service" WOW! Great American Concept. Guess that's why my Columbia Sportswear Ski sweater is made in China.
 @ZZRYDR Were you expecting a postal worker to make your sweater?  Find yourself someone who'll deliver your "important First Class mail" from Portland to New York City for 46¢ and get back to us.  The USPS might just be the greatest bargain on earth for the services provided.
I don't worry much about mail theft - thanks to a locking box.
I can work the little mail I send into a schedule of M-F easily.
Cutting is better than raising stamp prices yet again.
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I've nearly eliminated the need for the US Postal system, and life is better.
I'm certain the service and cost would be better if the Postal service was privatized.Â
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Oh, they'll still raise the price of stamps. That won't stop.
I wish I could save $2 billion.
It's about time. Cut down deliveries to 3 days a week. In fact I am fine with cutting it out all together and letting private enterprise take over.
@RalphCramden Â
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YA ! cause it's SO much better in the private sector....well for some anyway !
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Executive compensation is surprisingly low. The CEO makes about $800,000/year. Competitor CEOs make much more. At Fedex (the Post Office delivers more items every day than Fedex does in a whole year) the CEO made over $7,400,000, and at UPS (the Post Office delivers more items each week than UPS does annually) the CEO made $9,500,000. So, despite this remarkable effectiveness, the CEO makes only about 1/10th CEOs of much smaller delivery organizations.
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Privatize it !