USPS Plan would eliminate 155,000 jobs, raise stamp price to 50 cents

The US Postal Service has presented its new proposed business plan to Congress. A copy of the presentation used to explain the plan is below. Here are some of the major proposals:

  • Eliminate approximately 155,000 full time jobs by 2016
  • Remove postal workers and retirees from the Federal Employees Health Benefit Plan (FEHBP), and provide a “USPS-administered healthcare program” in its place
  • Relax service standards, eliminating most overnight first class service
  • Eliminate Saturday mail delivery
  • Close hundreds of processing plants and thousands of post offices
  • Increase prices: although not spelled out in the presentation, the Wall Street Journal reports that the plan “seeks to increase revenue by raising the price of a first-class stamp to 50 cents and changing the fee structure for certain types of mailed advertisements”

USPS Presentation 2 16 12

  • girlyman

    The plan has always been to destroy the USPS. This plan is spot on. What a disgrace to the American people.

  • george

    I think donohoe has lost his mind. The plan keeps changing on a daily basis. Its quite obvious that he doesnt know his role. He needs to go.

  • Cynthia Martin

    i not really believe this! Washington Postal Mgmt headquarters has 20 to 25 Mgmt earns $200,000 a year salary even tho still keep jobs! That’s not fair to our postal workers !

  • Letha Harris

    This is the same plan the Postmaster General has always had to destroy the USPS. Did anyone see the Owner of Federal Expresses interview with Brian Williams of NBC news the other night. I have no doubt that there is a plan for FED EX to take over the Postal Service when it gets broken down into a small business model so they can purchase it. I just wonder how many Congressman and US Postal Service higher ups are just waiting in the wings to buy stock in FED EX after this happens. Does anyone see the insider trading issues that come up with the Congressional and Senate Committees working behind closed doors on what to do with the USPS. They don’t care about the 155,000 workers who will lose their jobs. They are looking at their bottom line on their stock portfolios when the Postal Service is privatized.

  • PostalGirlLegs

    This is rubbish
    You compete not but cutting service but by improving service
    Congress can cut their Job and eliminate their pay
    And Health Bennefits
    You do not change a part of the united states for so long by acting foolish
    If we have learned anything in the last 10 years it is that acting to fast to changes creates more problems it does not fix them

  • Cullen Kiely

    what sense does it make to take over FEHBs for postal retirees (like me)? there probably won’t be a USPS in 10 years, but there will still be hundreds of thousands of retirees. that will be the only business they have left. just sayin’

  • steelerchic

    ISSA has major stock in fed ex , So it does not take a rocket sceintist is behind all this !!!!!! And probably giving Donahoe a kick back !!!!

  • PM-S

    Finally a plan that saves money and makes the USPS profitable enough so the PMG can get his salary comparable to the private sector. We all know he’s worth as much as Bill Gates, Warren Buffet, or even Mark Zuckerberg. Let’s recap: 5c increase in postage is 11% or $7 billion a year; 155k career employees @ $70k with benefits is nearly $11 billion a year; Saturday delivery is 1/6 of the total cost of labor and transportation or $10 billion a year (if implemented from the top down); closing thousands of community Post Offices and changing delivery standards will cost the P.O. $5 billion in lost revenue due to customer dis-satisfaction; and having a USPS medical health plan will cost them another $5 billion a year because they can’t even control EEO, workman’s compensation, or grievance costs. Ok, just raise the price of stamps to 50c and let attrition and overtime savings do their job due to the volume lost to the internet or FED-EX/UPS. In case you’re looking for a total, $18 billion in savings per year due to the P.O. tossing $10 billion out the service window.

  • zippy

    How about a VERA now so some people can leave so the impact wont be so great!

  • Joe Smith

    USPS could be open 7 days a week, delivery mail twice a day and have retail units open 24 hours a day…….

    The majority of our product line in no longer needed as much. The trend will continue to increase.

    Parcels are the future and USPS will have difficult time taking market share from UPS and FED EX when we pay FED EX to sort our packages and UPS pays use to carry the crap they don’t want.

    SOLUTION IS DOWNSIZE! Congress isn’t going give us billions a year or let us take over enough of the parcel market without privatization.

    400k employees with the same pay and benefits, keep closing things down over the next 20 years as demand for products decreases.

  • Dee

    Well..does anyone out there know how much UPS/Fed Ex prices would go up because they are
    dropping off packages in our back doors so we can deliver them, because they can’t deliver them as cheap. Also our offices are used to accept these packages.

    People think that our prices are high…just wait if we close. Pity for the people living in small towns, mountains and those not so “wanted
    out of the way addresses.”

    If customers complain about our prices…they should go to Europe. They would come back
    with their eyes open and be glad to pay our prices.

    Also …what about the Constitution?

  • bob

    The Post Office Is Not Broke

    John Nichols on February 7, 2012 – 9:46 AM ET

    Republican leaders in Congress are talking about dismembering the US Postal Service by cutting the number of delivery days, shuttering processing centers so that it will take longer for letters to arrive, closing thousands of rural and inner-city post offices and taking additional steps that would dramatically downsize one of the few national programs ordained by the original draft of the US Constitution. At the same time, supposedly “centrist” US Senators Tom Carper (D-DE), Joe Lieberman (I-CT), Susan Collins (R-ME) and Scott Brown (R-MA) are trying to build a “bipartisan consensus” for a death by slower cuts.

    Their “21st Century Postal Service Act,” a supposed compromise now being weighed by the Senate, would still force the postal service to close hundreds of mail processing centers, shut thousands of post offices, cause massive delays in mail delivery and push consumers toward most expensive private-sector services. It is, says National Association of Letter Carriers President Fredric Rolando, “a classic case of ‘killing the Post-Office in order to save it.’ ”

    Their rationale for making the bloodletting, much discussed in the media, holds that radical surgery is necessary because the postal service is in financial crisis.

    The postal service, we are told, is broke.

    There’s only one problem with this diagnosis.

    It’s wrong.

    The postal service is not broke.

    At the behest of the Republican-controlled Congress of the Bush-Cheney era, the USPS has been forced since 2006 to pre-fund future retiree health benefits. As the American Postal Workers Union notes, “This mandate is the primary cause of the agency’s financial crisis. No other government agency or private company bears this burden, which costs the USPS approximately $5.5 billion annually.”

    Now, however, we learn that the pre-funding requirements have taken so much money from the USPS that—according to the postal service’s own inspector general—it has “significantly exceeded” the level of reserved money that the federal government or private corporations divert to meet future pension and retiree healthcare demands. “Using ratepayer funds, it has built a war chest of over $326 billion to address its future liabilities,” acknowledges Postal Service Inspector General David C. Williams.

    That, argues US Senator Bernie Sanders, puts “the rationale for postal cuts in doubt.”

    Sanders, who has taken the lead in challenging cuts to the USPS and who requested the assessment by Williams, says that on the basis of information contained in the assessment, the Postal Service should be released from the “onerous and unprecedented burden” of being forced to put $5.5 billion every year into its future retiree health benefits fund. Sanders’s office explains that “even if there are no further contributions from the post office, and if the fund simply collects 3.5 to 4 percent interest every year, that account will be fully funded in twenty-one years.” At the same time, the senator suggests, the postal service should be allowed to recover more than $13 billion in overpayments it has made to a federal retirement systems.

    That’s not the end of the debate about the future of the postal service. Along with Senators Patrick Leahy (D-VT) and Mary Landrieu (D-LA), Sanders is working with key Senate Democrats—and, the group hopes, some Republicans who represent rural states—to develop amendments, and potential alternatives, to the “21st Century Postal Service Act.” Not only would they get the accounting right, they would remove barriers to the USPS so that it can compete and grow.

    “I believe the Postal Service will find more and more senators and representatives standing up here in Congress to prevent rash and irreversible decisions, until USPS can present a cogent strategy for growing in a new era of mail,” says Leahy, the chairman of the Senate Judiciary Committee. “A scorched-earth strategy, focused only on the short-term horizon, is a strategy for failure. It is a race to the bottom. The Postal Service needs a plan not only to survive, but to thrive. To do that the Postal Service must listen to its customers, understand its market, and play to its strengths, not trade its strengths away.”

    John Nichols’ new book on protests and politics, Uprising: How Wisconsin Renewed the Politics of Protest, from Madison to Wall Street, will be published next week by Nation Books. Follow John Nichols on Twitter @NicholsUprising