Monday, September 12, 2011

Postal Service, White House Engaged in 'Intense Discussions'

U.S. Postal Service executives are having "intense discussions" with the Obama Administration about the agency's finances, USPS's #2 man said in a videotaped interview published today.

"We've also been in pretty close discussions with them over the last month," Deputy Postmaster General Ron Stroman told MyPrintResource.com.

It just so happens that the Postal Service revealed its "workforce optimization" plan, including cuts of 220,000 career employees and rescinding of no-layoff clauses in union contracts, exactly a month ago. (See Donahoe's Downsizing Plan for USPS Yields Huge PR Coup for more on how the proposal has drawn attention to USPS's financial plight.) The White House revealed last week that it is finally developing its own plan to prevent USPS from becoming insolvent.

"We are in the process of having intense discussions now with the Administration about what the content of that plan will be," Stroman said during the 11-minute interview from the floor of Graph Expo, a major printing trade show. Several meetings with the Administration are scheduled for this week, he added.

Other highlights of the interview included:

Ending the Medicare subsidy: "We are the second biggest payer into Medicare and yet our retirees don’t use Medicare. They use the existing federal government retirement healthcare system. We are not reaping any benefits" from the Medicare payments. USPS wants it retirees to rely mostly on Medicare, with "a postal healthcare system as a backstop."

More post-office closure studies: Once it decides on the fate of about 3,700 underperforming post offices, USPS will begin studying whether to close another 4,000 post offices.

Lower costs, better service: By shutting thousands of post offices and providing more services via privately owned stores, the Postal Service can both save money and improve customer access. "Our customers want access to postal products on a seven-day-a-week, 24-hour basis." It will provide that through "village post offices" in retail stores. "We have a tremendous relationship with Office Depot" and are negotiating deals with other major retailers.

On price increases: "One of the things we have seen in ongoing discussions with the print industry is that the industry itself is functioning with very close profit margins. We have been very concerned that we not raise prices too high because you just drive people out of the business," which ends up hurting the Postal Service.

    16 comments:

    Anonymous said...

    what's up with the sleepy music in the video?

    Anonymous said...

    WHO MANAGES THIS SITE??? WHEN YOU CLICK PRINT YOU GET ABOUT 50 PAGES OF BLANK SHEETS. NEED TO FIX THIS!@#$%^&

    Anonymous said...

    I'm sure after all the money you've paid to access this site, he'll get right on that fix. . .
    (for the sarcasm impaired, STFU!)

    Anonymous said...

    Everyone I retired with (over 65) is in some Medicare Plan as Primary Insurance and has FEHB as the secondary insurer....do we have a screw loose or are your numbers inaccurate.

    Anonymous said...

    Postal wokers know that the main problem are too many managers with too much downtime.They are forbiden from stating this publicly.

    Fnertin Schmo said...

    http://www.youtube.com/watch?feature=player_embedded&v=Iqt_56eX7zQ Tell your Congressman, Senator, and President to advocate VERA with incentives! Like in 1992. It would cull off the top paid 400,000 Postal Employees (execs too). 5 years added to time in service, 6 months separations pay, full usage without penalties, full TSP, and free military buyback. Then rehire replacements where needed at the initial steps. Projected savings, 18 BILLION DOLLARS THE FIRST AND SUBSEQUENT YEARS!

    Anonymous said...

    My wife and I have have turned 65 and by our calculations we're better off not paying for Part B and staying with FEHB - Standard.

    Anonymous said...

    The print industry runs 'close profit margins' ?
    QuadGraphics in Wisconsin has been building more plants for years (major catalog, magazine printer).

    More bs

    Anonymous said...

    The President and Congress consider the plight of the Postal Service nothing more than a NUISANCE and will act on their problems as such.
    They are not concerned with the EMPLOYEES of the USPS, or other Federal Workers for that matter. We are nothing but a "bother" and our salaries and benefits will be cut in short order.
    It is quite apparent that the people who can least afford cuts in benefits, such as the poor, the retired, the elderly and the disabled will receive short shrift from Congress and the President and his people.
    We are at the edge of an endless downward spiral of our nation in to third world status.
    The MOST TELLING THING is the fact that the Deputy Postmaster General states that he is WORRIED ABOUT THE MAILING INDUSTRY AND THEIR PROFIT MARGINS while showing contempt to the American People and the common users of the system by CLOSING THOUSANDS OF POST OFFICES, delaying mail delivery, and making it much harder for the public to find "Postal Services".

    Anonymous said...

    A service is provided by "Hands On" labor. Anything else is "Overhead". Cutting craft labor, with numerous layers of uneducated Management,prepetuating a failing business model is what's unsustainable. The USPS needs more workers, not stand around management. WE ARE TOO, FAR TOO TOP HEAVY!

    National Whistleblower Allen Carlton said...

    How does one bail out the US Postal Savings Bank if it does not exist? Shadow Government god - government of deceivers I AM YHVH DEITY THE FARTHER

    Anonymous said...

    Does anyone know what the breakdown is for the 80% labor costs at the po? I keep hearing that 43% of that is what management makes. If you know where I can find this statistic please post it. Would be nice to get the truth out that it isn't the union greed like the public thinks. I started in 83' and make $24 an hour. By the way Joe public I work a graveyard shift and have tues/wed for days off. I'm still happy to be a postal worker and hope to stay until I am fully vested to retire. In this economy I couldn't afford to retire without that.

    Anonymous said...

    we keep hearing about laying off 220000 this figure is inaccurate its 120000 the other 100000 are already vacant jobs they do not want to fill check it out

    Anonymous said...

    Lets compare US.POSTAL SERVICE and FEDX....

    Currently, a 44 cent stamp will get a letter from Houston to New York in two to three days. According to the FedEx website, two-day delivery of a similar letter to the same destination will cost between $20-30 dollars.

    ENOUGH SAID!

    Anonymous said...

    In my office alone, we have 15 out of 20 people on light duty. this has hampered our ability to do business.I am sometimes out on the street until 10PM delivering mail.Once they get on the light duty list, they stay there forever it seems. they even brag about not having to do much work to the others that are there working saying that we are fools.

    Anonymous said...

    The big problem that postal employees do not publicly talk about for fear of being disaplined is that there are too many people in management with too much down time.Most local postmasters could easily manage two offices.