In his report to a Senate subcommittee Postmaster General Patrick Donahoe (pictured) spelled out clearly why the U.S. Postal Service can’t make any money: too many cooks in the kitchen. Hamstrung and limited by rules and “stakeholders” with differing and often competing agendas, what’s remarkable is that the postal service isn’t deeper in the hole.
Heaven knows, he’s trying. Through agreements finally reached with the letter carrier unions, he has been able, over the past two years, to eliminate 12,000 carrier routes and to consolidate others, saving 20 million man hours in labor costs. He has been able to whittle away at the massive employee base, cutting about 200,000 from his payrolls over the past 10 years. He has set up thousands of Automated Postal Centers (APCs), each of which generates more revenue than 19,000 of the 31,000 current fully staffed post offices. He has come up with incentive programs for high volume users, and wants to offer shipping of lightweight parcels through regular mail. He continues with massive customer surveys to determine customer preferences on Saturday deliveries, Priority Mail deliveries, potential rate increases, and satisfaction ratings.
His challenges, however, are daunting.
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