October 3, 2010

POST OFFICE SEEKS END OF SATURDAY

The U.S. Postal Service seems determined to end six-day mail service -- and close unprofitable post offices -- in view of an expected $6 billion in losses for the fiscal year that ended Thursday.

Washington Post staff writer Ed O’Keefe  reports that the Postal Service earned about $68 billion in revenue in fiscal 2010.  This is on par with last year, according to preliminary figures.

It lost money for the third consecutive year as customers made wider use of the computer Internet to pay bills, purchase goods and send messages.

Letter carriers delivered about 170 billion pieces of mail in fiscal 2010.  This is about 7 billion fewer than last year -- according to Postmaster General John E. Potter.

DIFFICULT WEEK

The announcement capped a difficult week for the Postal Service.

Regulators denied a request to raise stamp prices in January by 2 cents.  Also, Congress decided not to reduce the $5.5 billion payment the agency is required to make to pre-fund health benefits for retiring postal workers.

Final revenue and volume figures will be released later this Fall, Potter said Friday.

“We have not changed in terms of what’s next.  We need to try and grow revenue.  We will continue to use any tool that we can.”

Potter wants the agency to be able to set delivery schedules and routes without interference from Congress.  He would also like to sell products and services besides boxes and stamps – perhaps insurance, banking and cell-phone services.

SPENDING CUTS

Sen.  Susan Collins (R-Maine) and other Republican lawmakers, say Potter should find deeper spending cuts before lawmakers approve new revenue streams.

“The problem is that every three years it seems the Postal Service has been in financial crisis,” Collins said – referring to similar periods in 2003 and 2006.

She plans to introduce new postal reform legislation and is urging Potter to review spending cuts proposed in a series of watch-dog reports released last week – including consolidation of regional offices.

10-YEAR PLAN

The Postal Service is in the midst of a 10-year plan to trim $120 billion in costs.  Potter said.  It employs about 584,000 full time workers – a drop of about 100,000 career positions in three years, he said.

“It’s been a tough few months for the Postal Service in terms of its management and relations with Congress,” Ruth Y. Goldway, chairman of the Postal Regulatory Commission, said in an interview this week.

“But, on the other hand, it appears from what we can see on the street that things are improving.  They don’t have all their problems solved, but volume is going back up -- and they have their costs under control.”

When angry, count ten before you speak.  If very angry, a hundred.

“You have to do your own growing, no matter how tall your grandfather was.”

--- Abraham Lincoln

When you argue with a fool, make sure he isn’t doing the same thing.

Be careful what you wish for because you might get it.

By Lindsey Wilger Williams, retired newspaper publisher and syndicated columnist