USPS Now Says it Won't Cut Saturday Mail Delivery, Blames Congress
April 10, 2013 2:46 PM
comment(s) - last by
(Source: NBC Universal)
This move would have saved USPS about $2 billion annually
The United States Postal Service (USPS) was hoping to
axe Saturday mail deliveries
in an attempt to save money, but Congress isn't having it.
USPS announced today that the Board of Governors of the United States Postal Service met yesterday to talk about the Continuing Resolution for government funding. However, Congress didn't approve the new national delivery schedule.
The new national delivery schedule consisted of package deliveries Monday through Saturday and mail deliveries Monday through Friday starting August 5, 2013.
"Although disappointed with this Congressional action, the Board will follow the law and has directed the Postal Service to delay implementation of its new delivery schedule until legislation is passed that provides the Postal Service with the authority to implement a financially appropriate and responsible delivery schedule," said USPS.
"The Board believes that Congress has left it with no choice but to delay this implementation at this time. The Board also wants to ensure that customers of the Postal Service are not unduly burdened by ongoing uncertainties and are able to adjust their business plans accordingly."
Back in February of this year, USPS announced its plan to cut Saturday mail delivery to only five days per week (eliminating Saturday). It said this would save USPS about $2 billion annually.
For fiscal 2012, USPS saw a net loss of $15.9 billion (three times the loss record one year previous).
USPS has been in a financial decline mainly because of digital mail options, such a electronic letters, bills, etc. This eliminates costs of stamps and shipping charges.
Technology is taking over, and the issue is that USPS can't keep up. In January, it was reported that
USPS wanted to be more digital-friendly
by working on a digital platform called MyPost, which will allow customers to log in and view all packages that they'll be receiving as well as those they've already received instead of searching several different sites that the packages may be coming from.
However, Paul Vogel, president of digital solutions at USPS, revealed that his office is like "a San Jose startup," with only 15 Android/Apple developers, consultants coming and going, one computer and his BlackBerry smartphone. Technological restrictions make upgrading hard to come by.
This article is over a month old, voting and posting comments is disabled
4/10/2013 4:28:19 PM
Actually, on B I probably should have said "make the same revenue" - the profit margin will likely be a lot higher.
4/10/2013 7:23:05 PM
And we'll all stand in line to complain about how we're being punished by having our bills mailed to us and being charged for it ;-)
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