Share This Page

Postal Service aims to get leaner in '13

| Monday, Jan. 14, 2013, 9:00 p.m.
Getty Images
MIAMI, FL - NOVEMBER 15: A mailman for the U.S. Postal Service delivers mail on November 15, 2012 in Miami, Florida. The United States Postal Service reported a record annual yearly loss of $15.9 billion, more than triple the $5.1 billion loss last year. (Photo by Joe Raedle/Getty Images)

WASHINGTON — The Postal Service's Board of Governors has directed the cash-strapped agency to speed up cost-cutting and revenue-boosting measures, as legislation to restructure the mail carrier remains stalled.

The Postal Service didn't specify what measures it intends to pursue. Spokesman David Partenheimer said it will reveal those steps at a later date after informing postal employees of the details.

The 238-year-old institution recently has been buckling under the pressure of huge payments for future retiree benefits and dwindling revenue as more Americans communicate by email.

The agency lost almost $16 billion in the past year, ran into its legal borrowing limit and defaulted twice on required payments to the federal government.

With lawmakers consumed by budget fights and other priorities, the outlook for Postal Service legislation has not been good. Without quick action, the Postal Service could run out of money by October, according to some estimates.

“Citing the fact that the Postal Service cannot wait indefinitely for legislation, the USPS Board of Governors has directed management to accelerate the restructure of Postal Service operations to further reduce costs in order to strengthen Postal Service finances,” the Postal Service said in a statement on Monday.

Although the specific cost-cutting plan is unclear, the Postal Service's regulator warned that overly aggressive action could backfire.

Ruth Goldway, chairman of the Postal Regulatory Commission, said in an interview that the regulator had advised the Postal Service to phase in cost-cutting measures.

“If they speed this up without the proper adjustments for managing the mail, they could really damage the quality of service,” Goldway said.

If the public feels that the new moves by the Postal Service lead to deteriorating quality of service, Goldway said, people can lodge a complaint with the Postal Regulatory Commission, which would then review the measures taken.

“I do hope that Congress pays attention to this issue and moves as quickly as they can so that we don't have to have more rapid and drastic measures,” Goldway said.

Since 2006, the Postal Service says, it has reduced its annual costs by about $15 billion and shed about 168,000 jobs.

The postmaster general has been pushing to eliminate Saturday mail delivery, close some of its facilities and alter its benefit payment obligations, but it needs congressional approval for the more significant measures.

Lawmakers such as Democratic Sen. Tom Carper of Delaware and Rep. Darrell Issa of California have pledged to make Postal Service legislation a priority in this Congress.

In a written statement, Carper said it was no surprise that the Postal Service would move forward on implementing cost-cutting moves, as it awaits congressional action.

TribLIVE commenting policy

You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.

We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.

While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.

We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers

We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.

We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.

We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.

We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.