OIG: USPS on an “unsustainable trajectory”

From the US Postal Service’s Inspector General:

The Cost Structure of the Postal Service: Facts, Trends, and Policy Implications, a recently released white paper by the OIG’s Risk Analysis Research Center, examines significant trends and cost drivers for the major cost categories of the U.S. Postal Service, which include labor, non-labor and capital.

The paper also presents insights with implications for the ongoing policy debate about the future of the Postal Service in the wake of new legislative requirements and record losses in volume and revenue. From exploring the factors driving up labor costs, such as benefits and workers compensation liability, to the challenges in the areas of non-labor costs such as fuel contract management, to current limitations in investing in the future, this paper examines a range of interesting topics impacting the Postal Service and the entire postal “ecosystem”.

Having sustained financial losses totaling $20 billion over the last four years, the Postal Service is at a critical juncture in its history, this paper provides an overview of what is driving the organization’s unsustainable trajectory.

The Cost Structure of the Postal Service: Facts, Trends, and Policy Implications

  • dan

    We have known that for years…. when you have morons at the field and local levels spending (wasting) money like there is an endless supply. And also because no one is ever held accountable for anything. If you screw up the move you and promote you so you can make bigger problems.

  • Ronnie

    I like what one person suggested…if the OIG is so smart, let them run the USPS…

  • tvraniak

    Let’s see. First the USPS has overfunded their retirement system to the tune of $50-$75 Billion dollars since 1971. This is money owed the USPS.

    Second, Congress mandated the OIG in 1996, however; funded it out of USPS coffers, not Congressionally like it should have been, so they have had an open check book to the tune of $120-$140 MILLION dollars per year out of the USPS coffers since 1996. They currently are involved in the day to day operation of the USPS, doing the jobs that the US Postal Inspection Service was mandated by the initial Congress of the United States. Talk about waste and abuse!

    Third, Congress mandated that the USPS forward fund future retirees to the tune of $3-$5 BILLION a year since 2006. Why, they were already overfunded? Without out this anchor, the USPS has made a profit since 2006!!

    Fourth, the Courts, UPS, and other private carriers mandated SOX compliance for the USPS! Why, we are not under the SEC- Is someone trying to force the USP
    S into a private status such that the excessive overpaid retirement can be ursurped by a private company just like the auto workers and such? There would be huge parachutes for all the senior executives should this happen. What is really happening???
    The American public is being duped and the workers of the USPS are being sold out. Put the USPS back under the President and make the PMG a cabinet member. Then do away with all the high overhead before you do anything with the lowly workers. We have cut over 200,000 positions, yet made more VP’s. If the cuts in supervisors were necessary due to the ratios, then with less workers, there should be less VP’s!! Before Congress tears us apart any futher, Congress needs to pay back money owed the USPS. Then adjust the balance of the System as necessary rather than making service more difficult for the individual citizens of the United States. Congress’s past and current actions have diminished the citizens freedom of speech on the USPS over the the last over the last 15 years. They have created longer lines, less complaint possibilities with the loss of the written Consumer Cards and cost the US citizen more money blaming it on the workers with their Congressional mandates/laws. Wake up America, the USPS is the last solid insititution since the beginning of our Nation. It is being sold out and with that the sancity of the mail and freedom of speech!