Postmaster General Urges Congress to Reevaluate Current Postal Reform Bills

WASHINGTON, Nov. 21, 2011

In a speech delivered today at the National Press Club in Washington, D.C., Postmaster General Patrick Donahoe encouraged Congress to step back and take a second look at postal reform legislation as currently drafted in the House and Senate.

Providing his first public commentary on postal reform packages, Donahoe argued for providing the Postal Service with a more flexible business model that would enable the Postal Service to quickly implement cost cutting measures. “Unfortunately, both bills have elements that delay tough decisions and impose greater constraints on our business model. Taken as they are, they do not come close to enabling cost reductions of $20 billion by 2015 – which they must do for the Postal Service to return to profitability.”

“If passed today, either bill would provide at best one year of profitability, and at least a decade of steep losses,” said Donahoe. “However, by taking the best of both the House and Senate approaches, Congress can provide the Postal Service with the legal framework and the business model it needs.”

The Postmaster General expressed his gratitude for the strong leadership and engagement of the Congress and the Administration in advancing reform legislation, and expressed confidence that an effective solution would be enacted. Both HR 2309 and S 1789 were introduced earlier this year to respond to an urgent liquidity crisis and to address long-term structural constraints in the Postal Service business model.

Throughout its recent fiscal crisis the Postal Service has advanced proposals that would allow it to operate more as a business would, with greater flexibility to quickly reduce costs and respond to a dynamic marketplace for mailing and shipping services.

The Postal Service is seeking changes in the law that would provide it with the authority to: determine delivery frequency; develop and price products quickly; control healthcare and retirement costs; rapidly realign mail processing, delivery and retail networks; operate under a streamlined governance model; and leverage its workforce with greater flexibility.

Within the constraints of its current business model, the Postal Service has aggressively cut costs, reducing the size of its workforce by 128,000 career employees and annual operating expenses by $12.5 billion over the past four years.

“America needs a Postal Service that can operate more like a business,” said Donahoe. “I have no doubt the Postal Service will endure as a great American institution. But to do so, we need to operate with a great business model.”

  • ed8

    Or we could just fire the PMG and Deputy PMG and get someone that thinks they can actually do the job. This guy is a dismal failure Give em the boot

  • Richard

    I agree, fire the PMG. not the workers. Cut half the supervisors and you will save alot of money.

  • Reagan

    I am a letter carrier who missed the last early retirement offer by a month, I have been waiting for another offer over TWO YEARS and still waiting, remove the pmg and get some one that acts not talks!!!!!!!!!!!!!!!!!!!!!!!!

  • cpttuna

    The PMG has his opinion and the rest of the USPS employees have theirs. Would you follow the PMG to the bathroom?

  • Steve

    People stop being greedy and waiting for money. The reason the post office is going under is because the PMG is nothing but a clerk moving through the ststem. Now he thinks with an education he can make the PO something its not. This was created for the people by the people. And thats the truth. ;look at history the PO has always lost money even when Ben Franklin ran it. Greed thats what it all about.

  • Lou

    As long as they keep talking that business bull we will be screwing ourselves….

  • crazy

    Hey everyone who wants to keep bashing the USPS, UPS and Fed Ex are raising their rates almost 5% in 2012! Funny how they tried to slip that in with all the negative USPS talk going on.

  • Dude

    When are you people gonna wake up and realize that no one is in charge of the P.O.! Congressmen and Senators (D) and (R) receive donations and money from UPS and Fed Ex! If they do anything to help the P.O. they are jeapordizing the money flow to there campaigns its always politics of getting reelected!

  • jimbob

    The postal service is a Constitutionally mandated SERVICE to the American public, not a business. Donahoe fancies himself the CEO of a corporation, and is willing to throw both the workforce and the customers under the bus to downsize that service to a level his own incompetent managerial skills can handle. He is an internal privatizer who is killing our own brand. Removing this loser as PMG is the first and best move Congress could make.

  • Rick

    So is tomorrow the day? Super committee vote?

  • postal “worker”‘

    mr.donahue i,m sure you don’t know what real work is.you are typical of modern day u.s ceo,s.cut workers,cut wages,cut benefits and mae yourself a boatload of cash .you are truly disspitasble and a disgrace i don;t know how you sleep at night.