Rolando: PMG’s Press Club speech paints improved financial picture

April 19, 2013 — In his appearance Friday at the National Press Club, Postmaster General Patrick Donahue said that the Postal Service will have an operational loss of $1.7 billion this year.

“This reflects a sharp improvement in the financial picture at the USPS, as the economy improves,” NALC President Fredric Rolando said in a statement afterward. “And it is dramatically different from the doom-and-gloom scenarios postal critics cite.

“In fiscal 2011, the operational loss was $5.1 billion and in fiscal 2012 it was $4.8 billion. The 2013 figure of $1.7 billion stated Friday shows a positive trend, with red ink from operations down by about two thirds. Indeed, in the first quarter of fiscal 2013, the Postal Service had an operating profit of $100 million. All this occurred delivering six days a week.

“These figures—and this trend—show the folly of now taking the radical step of reversing decades of congressionally approved six-day delivery and eliminating Saturday delivery. This would cost the USPS its competitive advantage, drive customers away, reduce revenue and make the Postal Service less able to adapt to an evolving society.

“Instead of a ‘shrink to survive’ strategy—which will only begin a death spiral for the USPS—what is needed is a dynamic business plan for the future to take advantage of the many opportunities for growth, including in the exploding package delivery market.”

 

  • herman

    Rolando. Do me a favor and shut up. Spin spin spin.

    • BeerCan

      Rolando did this union a great service by pointing to some truths, but the real truth is that an operating loss does not mean that the postal service has no cash. Without cash a business cannot survive, however, the postal service has cash reserves, and it protects its cash flows each time that it does not make the pre-funding obligation.

  • irish14

    herman get a clue !

  • Jack

    A a lot of carriers see an opportunity
    to save this place by closing Saturday.
    The Union is wrong on this.
    Carriers are watching first class eroding.
    They know people will have to switch crafts
    and transfer, but at least they will have job !
    Grow up and deal with it. Change or lose
    everything.

    • BeerCan

      Get a clue, Jack. If you really want Saturdays off, ask your union president to negotiate fixed days off for some routes in your office and bid that route if you’ve got enough seniority. Most carriers, I believe, would not be willing to allow the postal service to needlessly eliminate one-sixth of its carrier workforce because it “might” save 2 billion. Most customers expect first class mail service for first class letters, and would not be willing to pay the same first class rate for less service, i.e. it wouild take an additional 2 days for people to receive letters under the postal service plan. Have we really thought this thing through?

    • DaPhantomMailman

      I’m sorry Jack but you are WRONG! And what carriers are saying 5 days is the way to go? Listen have you thought about Mondays and how it is to deliver that rough day? And if we go 5 days that everyday will more than likely be like Monday delivery! Also let’s not forget holidays then it will be 4 days to deliver 6 days of mail, and also elections. Lastly let’s not forget the culture of MANAGEMENT, “YOU NEED TO CLEAN EVERYTHING UP! I believe there will be no curtailing either and maybe no hiding of the mail either! Everything goes, be back by 5 (MORE LIKE 10pm!) Also lots of ACCIDENTS and INJURIES! 5 days is not the way just cause you want weekends off! And it’s not buisness smart either! I don’t care what you say! I’m just saying…

  • Andy

    I disagree Jack. We can’t move the mail we have now in six days so how are we going to do it in five? They don’t scan parcels as arrived in unit if they don’t think we can get it done in eight hours so it looks like they are still in transit. They hide third class mail until we hit the street then it is at our cases when we get back. Reality is we are curtailing mail and parcels to make their numbers look good. If we go to five day it will only get worse.

    • DaPhantomMailman

      I totally agree with your statement! Their hiding the numbers! It’s happening at my facility too. We are all seeing this! I’d like to
      challenge our PMG to do a UNDERCOVER BOSS like the show, and see the culture of his MANAGEMENT how they are with the craft employees! And see the truth how the craft employees are working hard to keep this GREAT INSTITUTION that’s part of CONSTITUTION alive! I’m just saying brothers and sisters!

  • charlie

    A sharp improvement in the financial position can only occurr if one of the following happens; A. Reduce cost-that means taking even more from employees. B. Increase income- All PMG can think of is cut, cut cut. How about working as hard to increase income?