Wednesday, March 3, 2010

The US Post Office-A Money Losing Federal Bureaucracy

Facing huge operating losses, the U.S. Postal Service is considering ending Saturday delivery. Would you support mail service cutbacks?
Thanks for your vote.

Response Percent Votes
Yes 73% 1537 votes
No 22% 464 votes
Undecided 2% 49 votes
Other 1% 35 votes
2085 total votes

US Post Office considers 5 day delivery schedule. Projects $200 Billion operating loss over the next 10 years.

I don't have anything against the US Postal Service per say. It has long provided a valuable service to the country, going back to the days of it's establishment by Ben Franklin. it needs to be drastically improved,streamlined and have it's competitive edge honed to meet the challenges for market share from private delivery services.

The Postal service isn't considered a part of the US Budget, it is viewed as a stand alone for profit government entity. The problem as we all know, this organization regularly turns in a loss. The loss has to be covered by Congress via a funding Bill.

We screamed when Obama bailed out GM with a $70 Billion bail out (of which GM has paid back, to their credit $49 Billion). Why do we view the USPS any differently, than another private institution with their hand out lacking any meaningful plan to "turn things around"? Why do we accept giving a $20 Billion annual bailout to the USPS with no hope of payback?

There are 755,000 postal workers, making an annual salary, with benefits of $88,000. No wonder they can't turn a profit. Payroll is too high. The operation is overstaffed, and productivity isn't a compelling aspect for retaining one's job. In a nutshell they are running a totally inefficient business model.

The USPS has evolved from a much needed national service to a welfare job haven. It's a high paying no talent giver-ment job factory. Unionization has destroyed the company.

Short of complete privatization what can be done to fix this quasi-government loser? Plenty. Go to an even/odd home delivery schedule. One postman delivers his normal route, MWF, on TThS he delivers a different route. Voila, needed staff is almost halved, you and I get our mail every other day excluding Sunday.

Step One

Eliminate 375,000 jobs due to modified delivery schedule.

Step two, cut the salary scale.

Let me ask, what special talent does it take to drive a delivery scooter? How hard is it stuffing envelopes into mail boxes? Should these non-skilled abilities command an average payment of $88,000? Could a first job teenager do the same basic work for minimum? Absolutely they could, but I'll be nice and say we should cut the pay scale to match the national private sector average pay of $47,000 per employee.

Step Three

Sell off now idled delivery vehicles. Also consider the fuel savings derived from streamlined home delivery. Fuel, wear and tear, upkeep, repairs all of these costs should fall to around half. Pelosi wants to save the planet, lets cut Postal pollution by half.

Step Four

Shorten Post Office facility operating hours. Staff counters based on productivity. X number counter positions for X number customers served and measure individual productivity.

Whatdaya think, could we use an extra $20 Billion back in our pockets?

But my goodness what are we going to do with these poor people we've just displaced? Well we could take the $20 Billion we are now not spending and turn around and put them back onto the welfare roles or we could ask them to fend for themselves in the private sector like you and I do now. They could apply their current skill sets at McDonald's for the wage they deserve, or perhaps actually put out by going to school to learn a meaningful trade or degree.

Bottom line why should we allow these people to coast, while we sprint to pay their way?

Steve

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