The US Postal service has today issued a 10-year plan to addressing declining revenues (and continued losses) and volume. The major proposals are:
- Restructure retiree benefits to match other federal departments
- Adjust delivery days (i.e. get rid of Saturday delivery)
- Expand and modernize customer access by providing more convenient locations
- Establish a more flexible workforce (300,000 current employees will be eligible to retire in the next 10 years)
- Remove inflation cap on “Market Dominant” mailing products
- Raises prices in 2011
- Allow the Postal Service to evaluate and introduce more new products.
As reported in the press release,
“If the Postal Service takes no action, it will face a cumulative shortfall of $238 billion by 2020. But (Postmaster General John) Potter outlined a number of actions that could amount to as much as $123 billion in savings during that same time period. These actions build on the Postal Service’s record of saving more than $1 billion every year since 2001 and include continuing to aggressively control costs and eliminating hundreds of millions of work hours.”
The press release is here.
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