Postal Service deals with challenges

Because of the current economic downturn, the United States Postal Service is taking certain tough but necessary steps here in South Carolina and around the country. In order to maintain affordable service and remain viable, we’re making changes to operations, staffing, and facilities similar to what other businesses are doing in these tough economic times.

That perspective is important to keep in mind. The Postal Service is a self-supporting agency, funded entirely from the sale of postal products and services, not from tax dollars.

Like any commercial business, the Postal Service is subject to increased costs and reduced revenue. We’re facing competition from e-mail and online bill paying. And this past year we’ve seen some of our biggest mailing customers, in fields like financial services, insurance, and housing, struggle at an unprecedented level.

This general economic decline has had an historic impact on the volume of mail, which fell nationally by an unprecedented 9.5 millions pieces, or 4.5 percent last fiscal year, resulting in a net operating loss of $2.8 billion after the Postal Service paid a law – mandated $5.6 billion to prefund retiree health benefit liabilities.

We did not escape this trend here in the Greater South Carolina District, where mail volume is down by 19 percent, year-to-date, compared to the same period last year.

Some recent negative stories in the media may seem inconsistent with the Postal Service’s current cost-cutting efforts. However, the facts show that in 2008, the Postal Service, which was rated as the most trusted government agency in a Ponemon Institute survey, undertook extraordinary efforts to cut costs. We have reduced work hours by 50 million or the equivalent of 25,000 employees and took a total of $2 billion in costs from our budget while providing the American consumer with record breaking on-time service.

Eligible workers were offered early retirement, redundant mail processing operations are being consolidated, routes are being reorganized, overtime is being reduced and operating hours at processing facilities and Post Offices are being adjusted to match mail flow and customer use.

We’re adapting products and services to contemporary lifestyles and working to improve customers’ experiences in Post Offices, on usps.com, and by phone. We’re launching competitive shipping prices, driving technology, and using our service to every home and business in new ways to create value for customers.

We recognize these steps will have an impact on employees and some will require a difficult adjustment. People may end up doing a different job, working different hours, or in a different facility. These changes help to secure employees’ jobs, allow us to weather this economic storm, and be positioned to best serve customers when the economy rebounds.

The Postal Service has been a vibrant part of the highs and lows of every economic cycle for more than two centuries. We will keep it that way by pursuing innovative approaches that support our mission of delivering trusted, affordable, universal service to America.

— Edith M. Bradshaw is the Postmaster in Florence.