RE: Time to Sell the USPS?
Had to repost on this since I know a lot about this (I've worked for the USPS in both a quasi consultant's role and hands on for seven years now). USPS is being destroyed by its unions and management (their current Postmaster General isn't bad but he needs to lay off the negative publicity he's helping spread with all the horror reports). But the auto industry bounced back from its near collapse and the USPS can as well.
UPS is doing well because all they handle are packages which are profitable and a million times easier to deliver. But they and Fed Ex don't bother with the smaller, less profitable packages, or the ones in rural areas. They dump them off at the post office. Fed Ex doesn't have a union. UPS has a real weak one - they pay well but they have long hours and force a lot of work on much fewer employees than you'd expect. UPS and Fed Ex also have a ton less supervisors on average than the USPS.
1st class mail for USPS is way, way down. But packages are up and they will continue to be so as more and more retailers shut down their physical presence. Lose the USPS and we also lose all magazines, bulk mailing operators, all passport operations of note, government checks (including some unemployment, tax refunds, and parental payouts from divorced couples). The USPS is also how a lot of government correspondence is handled - IRS, FEMA, prisons, and perhaps most important, military. Did you know students at the Army, Navy, Air Force, etc., can't use email? They can send letters home. USPS is the nation's 2nd largest employer (behind Walmart). It's probably second to Walmart in minority employment and may be number one in terms of employees who are military veterans.
I'm fine with five day delivery although I think the post office should do some limited parcel delivery on Saturdays. They need to reduce the delivery schedule for truly rural areas to less than 5 days. They need to streamline their employees with this reduced volume and work schedule. And they need an overhaul with the retirement pre-funding, worker's comp, and excess of management types. Door to door mail service needs to be eliminated for all residents (keep it for businesses). Instead, use the NBUs (the mail box clusters with 10-20 boxes in one location). Sorry individual mail boxes just don't cut it anymore with this type of lower volume.
Believe it or not, the post office is doing a decent job streamlining its company and modernizing its operations - they just have a long way to go and employees who are fighting the changes because they enjoy being paid a full salary (and overly generous benefits) for half a days work. I can't blame them for wanting to get paid 50-60K a year for a part time job. But if they want to make that money, they need to do about 30-40 pct more work on average than they're doing currently.
And here's another radical idea for them to consider. Try to get an oil and gas industry to sponsor a letters to home project for our nation's youth. Kids today have no idea how to write properly. Email isn't the same (much ruder and less personal), and texting is a joke. Will future generations even know how to spell words if they're not abbreviations? If we could have millions of students writing letters and essays home to parents, relatives or friends for a grade; and perhaps even ask their parents and friends to respond with a letter back (in an accompany pre-paid envelope), that would both help the USPS and help educate our students at the same time.
USPS won't ever be as profitable as the auto industry is now. But they'll be okay if they can do some of these radical changes. I also think if the economy doesn't improve, many folks are going to have to cut back on non-essentials. And one of those might be your internet service or 3 or 4 phones for each household. The post office is free to use (outside of the cost of the postage) so it's not out of the realm of possibility that people abandon some email and texting in the future out of necessity. And finally I'd have to say email is losing its luster too. Do people still use it as much as they used to? Too much junk email if you ask me.
All I know is if Groupon can float out a billion dollar IPO and people trash the post office at the same time, life is lunacy. Groupon is electronic junk mail - no more, no less.
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