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Following Congress’ decision to prohibit a new national delivery schedule for mail and packages, (mail delivery Monday through Friday and package delivery Monday through Saturday), The Board of Governors of the United States Postal Service released a statement delaying the implementation of a new schedule “until legislation is passed that provides the Postal Service with the authority to implement a financially appropriate and responsible delivery schedule.”
Set to take effect in August, 2013, the idea of a new delivery schedule was created in attempt to restore the Postal Service to long-term financial stability. The transition would have generated approximately $2 billion in annual cost savings, was part of a larger five-year business plan to return to financial solvency, and according to polls, was widely supported by the public.
“It is not possible for the Postal Service to meet significant cost reduction goals without changing its delivery schedule — any rational analysis of our current financial condition and business options leads to this conclusion,” the board said in the statement. “The Board additionally urges Congress to quickly pass comprehensive postal legislation, including provisions that would affirmatively provide the Postal Service with the ability to establish an appropriate national delivery schedule.”
Although it is an independent agency, the USPS is controlled by Congress. That control cost the financially-strapped USPS $11.1 billion last year after a 2006 law was passed forcing it to pay future retiree health benefits, (no other agency does). Now, with the rejection of this cost saving plan, Congress is further hindering the USPS’ financial crisis.
Having had to already cut its workforce by 193,000 and consolidating more than 200 mail processing locations, The USPS, according to CNSNEWS.com, has been losing an average of $42,335,766 per day in fiscal 2012.
“Given these extreme circumstances and the worsening financial condition of the Postal Service, the board has directed management to seek a reopening of negotiations with the postal unions and consultations with management associations to lower total workforce costs, and to take administrative actions necessary to reduce costs,” the board said.