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DMA Applauds Postal Service’s New Cost-Cutting Proposals

NEW YORK, Aug. 12 — The Direct Marketing Association issued the following news release:

The Direct Marketing Association (http://www.the-dma.org/) (DMA) applauds Postmaster General Patrick R. Donahoe for proposing new cost-cutting ideas for the US Postal Service (USPS) for Congress and the postal community to examine. To return to financial stability, the Postal Service has stated that it is seeking legislative changes to allow for network and workforce adjustments.

The Postal Service faces imminent insolvency due to declining mail volume. Insolvency of the USPS will harm the $1 trillion "mail" segment of our nation’s economy and the millions of jobs it supports. Mailers can no longer fund the excess capacity in the USPS network and its corresponding employee complement through postage. USPS must right-size its network to match the new reality of lower mail volume.

"Every effort to bring the postal service back from the brink of insolvency must be examined," said Jerry Cerasale, DMA’s senior vice president of government affairs. "We applaud the Postmaster General for expanding that dialogue."

  • Robert

    5 day delivery now!!!! Start the process. 1/6 of letter carriers won’t be needed. 1/6 of fuel costs. Get the picture.

  • BAM

    It’s hard to see the big picture when you are blind and don’t have a clue!!!!

  • Letter-Carrier in HNL

    Doesn’t take a “ROCKET SCIENTIST” to figure this one out: Fire the “top-heavy managers, postmaster, and supervisors”, we carriers and clerks don’t need all these people to tell us how to our job every single day! Oh, and let’s begin with the “5″ days a week, what are we waiting for, another 3-6 billion dollar lost!

  • Tony

    VERA NOW!

  • Nancy

    Amen to that

  • realist

    I propose we eliminate discounts and realign our price structure. That’s what a real business does! Look at how prices have gone up at grocery and retail stores due to fuel prices. The Gap, Giant, Wal-mart etc… pass the cost on to the consumer, why not the USPS?

  • reo

    Perhaps this idea would stop Congress from stealing any further profits? Afterall, let’s not lose sight of the real problem which caused the the USPS to be in the mess they are in.

  • Bill

    Everyone calling for 5 day delivery forgets to include the cost of additional overtime on Mondays when 2 days worth of mail will have to go out on one day. Also, what happens on Monday holiday weeks? There will be no mail for 3 consecutive days!! Imagine how much overtime will be needed on Tuesdays then.

  • John

    Bill
    have you ever heard of curtailing mail? Our volume has really dropped, two days of mail is like the volume I used to have everyday. I say restructure our holidays too. We dont need Columbus day, MLK day, or Presidents day.

  • Proud Product of the USA

    DMA would applaud the proposed layoffs of 120,000 american workers as long as they can keep their discounts that greatly exceeds the amount it would take a Postal Worker to prepare the mail in the same way they supposebly do to obtain their discount. Congress needs to keep their hands off Collective Bargaining. They need to address the poison pill they gave to the Postal Service with the prefunding mandate. Give back the money that has been overfunded. Or have you already spent it?

  • postal in ok

    even it’s direct marketing at a discount it is still worked in with the mail from real paying customers, so that it’s sequential for delivery. The post office is stupid because so of their mail dma is stuck together from their bad handling and we have to separate their crap to ensure delivery. We complain but no one says anything to their company and we still try to deliver that junk mail at a discount!

  • mark

    I agree with proud product, bill, reo. The gov’t has already spent the billions owed the usps and is finding someone to be the scapegoat, which they have made the usps. Plus elections are around the corner and those chickens in congress are too chicken bleap to do anything to help because they don’t want to lose their cushy jobs. If the usps was refunded the billions they are owed, they would have made a profit 4 out of the last 5 fiscal years. Don’t put the blame on the front line workers, who have been made the scapegoat for the downfall of many other poorly run businesses in this country.

  • cj

    How about cutting out the discounts the direct marketers get? It’s time first class mail stopped subsidizing that garbage. (Yes, it’s claimed that it’s the other way around, but look it up.)

  • Don

    “The Postal Service faces imminent insolvency due to declining mail volume”

    Yes, Yes, DMA lets skip the fact the only reason the Post Office is in trouble is because Congress is forcing them to pay for retirees that haven’t even been born yet and USPS would have made a profit in 2009 and 2010 without those payments.

  • commonlaw

    If the “mangalers” can’t run the business now how can they possibly run a pension and insurance system.

  • Haywood Jablome

    Jerry Cerasale……..you morons thrive in the sewers.

  • Informed Guest

    The proposal is to cut USPS staff by 220,000 (100,000 attrition and 220,000 layoffs) by 2015. Let’s use some rough numbers and say that USPS is at 520,000 today, so we need to get to 300,000.
    Let’s build this from the bottom up. Cut the processing centers to 150 total and staff with 500 each (clerks, mail handlers, maintenance, drivers, supervisors, managers, support staff and even day-off coverage). Processing centers need 75,000; about half of today, so pretty aggressive.
    Delivery – let’s use 140 million delivery points (the number grows by about 1 million each year). Assume we will have carriers actually deliver for 7 hours each day (1 hour to inspect/load vehicles, pickup and turn-in accountables, organize parcels (our growing business), drive to/from route). We’ll make carriers drive between deliveries and put mail in box every 30 seconds (2 X 60 minutes X 7 Hours = 840 deliveries) But, I want to be aggressive, and make the math easier, so I’ll make it 1000 deliveries in 7 hours. Thus we need 140,000 carriers. I’m assuming we only delivering 5 days per week, so I just need some day-off replacement coverage – I’ll use something between 5-10% to cover annual/sick/other leave and round it to another 10,000. We need 150,000 to get the mail delivered.
    We will reduce our delivery/retail units from over 30,000 to just 10,000, but they will be much bigger units with more carriers, windows and PO Boxes. I’ll give you a total of 15 people to get mail to carriers, put up PO Box, staff retail windows and 1 single manager, as well as day-off coverage. We need 150,000 nation-wide.
    Let’s cut District to 40 with only 12 people each (500), Areas to 5 with only 20 (100) people each and shift the entire support function (Personnel, Finance, Contracts, Transportation, Sort Programs, IT Support, etc) to HQ. No support function in the field, just limited general oversight. Headquarters has to figure out how to do this with 2400 – a total Management oversight of 3000.
    What’s the total?
    75,000 Processing
    150,000 Delivery
    150,000 Customer Service / Retail
    3000 Management
    About 380,000 total

    Seems to me that the math does not work

  • The Coach

    Stop giving such huge discounts to “non-profits”! At least tighten up the requirements for non-profit status. I mean 11 cents for a letter that gets peferential treatment is absurd!

  • mailman
  • NOTATEABAGGER

    Why does business get away with 14 cent mailings? Raise their price to what everybody else pays.

  • Gruntled

    cutting jobs equates to cutting service, instead of the postal service we become postal serfs.we work for the people not the puppets.stop selling us out and let us do our jobs. we’re the ones the people trust. we ARE the people, not the puppets!

  • mark

    informed guest- you call up the customers that have delivery to their house and see what kind of reaction you get with curbside delivery. I would think the overwhelming majority would be against it. But that would be a way to eliminate deliveries because people would be pissed off enough to forget about the usps as a whole. What position do you hold in the usps, you seem to know a lot about the operation. Maybe you could get back the billions that the usps is owed!

  • Not Blind

    Of course the DMA agrees with the postal cuts, it will help them to maintain their mailing discounts. They pay a few cents to mail a one pound catalog across the country when the average person has to pay 44 cents for a one ounce letter. Why not get rid of one third of management. Craft employees work better by themselves anyway. The payroll at HQ alone can sink the Postal Service.

  • ready2go

    Daily it’s the same thing, divide and conquer. The craft posters bemoaning management and the floor management bemoaning craft.
    While we fight amongst ourselves the relative few ‘executive leadership’ type are proposing to wipe us both out and your ‘valued customers’ sing along with fat cat Pat. If Donahoe was truly interested in saving the USPS he would propose NEW ideas when he announces his ‘new’ ideas. You want to go to 5 days so badly? What separates the USPS from the others? Saturday for the same price. You insist on 5 day? Be open 7 days a week, every carrier route has two days there is no mail delivery. No replacement, when the route is off no one gets mail. But the other routes are still being delivered. We would be adding Sunday, basically for free. You dont think this would be attractive to the shipping crowd?
    And try this, by March 31 2012 all mail receptacles will be at the curb, or in the case of city delivery at the sidewalk. No exceptions, businesses, old people, politicians and friends. Cuts out a lot of animal attacks, slips trips falls and will extend the working life of the boots on the ground.
    Cut management? Sure there is room to cut a lot. But cut the correct ones. Why do you need a supervisor, postmaster or manager, poom or mcso, senior poom or pces postmaster, district manager then an area vp? Do you people have any idea how many levels of analysts disect your every move?
    But while we fight, $400,000.00 a year donahoe is proposing to cut YOUR pay, YOUR benefits, YOUR retirement. Do you really think it is in YOUR best interest to be a mouthpiece for donahoe and cry about the mandate the USPS prefund your historical entitlements? It needs to be mandated or fat pat will simply say ‘I can’t pay it so I’m not going to’. Keep fighting amongst ourselves and one day as we work for $8.00 an hour and a social security pension AFTER we have paid UP FRONT for our present systems we will truly get what we deserve. As for his other ‘new idea’ of the villiage post office? They used to exist in a lot of places but were removed because of financial issues and FAA security.
    Village post office? I dont think so. But if you’re reading this pat….your village called they miss their idiot.

  • JY

    Excuse me ready2go, a pension is NOT an entitlement. We pay a portion of our pensions from our paychecks.

  • Best Carrier

    The DMA is in favor of whatever it takes but “Mailers can no longer fund the excess capacity in the USPS network and its corresponding employee complement through postage.” That means DMA doesn’t want to pay any more than the low prices they already have. Nothing like kicking someone when they are down. All of our customers have had it too cheap for too long. We have great service but have not charged enough.

  • For Real

    So where do you think PMG Donahoe is going to work next. Must be the DMA! Looks like he has secured a job based on the news. Porter did the same thing with FedEx when he gave them millions in contracts.

    I beleive that Donahoe is not looking to the future of the USPS but to his future job after retirement.

    Congress allows this to happen we need to do the right thing as Americans and vote ALL of them out. No more lawyers and corporate tycoons in office.

  • gotitright

    What a bunch of idiots! They have not figureed out that direct mail advertising does not work if you dont have anyone to handle and deliver their product. It does them no good if the thousands of bundle of their mail set on the floor with no one to process them, and no one to deliver them. Let them try and hire bumbs off the street to deliver them to every door. The trash dumpsters will be full. You want good service? then you have got to pay for it. Raise the rates we charge for delivering their product. Make it at least pay for what it cost to deliver. No business charges less than what it cost’s them, except the USPS.

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  • jm

    I agree we need to cut management. In our eighteen employee office (that include rural subs and a city ptf) we have a pm and a supervisor. at 10 am when all the carriers hit the street the pm and the supervisor lead 2 clerks for the rest of the day. Pretty ridiculous.

  • Proud Product of the USA

    DMA does not want to pay more postage…The top 2% doesn’t want to pay more taxes….Jobs are sent overseas to make more profit, Cut medicare and social Security, Let the elderly and disabled fend for themselves and starve. Get rid of entitlement programs (food stamps, medicaid, unemployment etc)…Who cares if they do not have a job or are sick? Have I died and gone to hell? When will the greed stop? When will we start caring about our neighbor? When will we stand up and say enough is a enough. United we stand…United we fall…I choose to stand.

  • kelkan

    The P.O. is rediculous on how they have a “supevisor” (204B, manager) whatever for every 10 craft employees at our station. Just on Saturday they had 2 management people at 4:30. How much money is that wasting? We need to start at the top!