USPS Actually Loses Money on ‘Cost-Cutting’ Closures

On the face of it the U.S. Postal Service can’t do anything right.
Since 2012 the USPS has closed more than 141 of post offices and mail distribution facilities all in the name of saving money and purportedly making its more efficient.

And now a new report comes out saying the USPS actually lost a bundle in this misguided venture.

According to Government Executive, the postal service lost about $66 million due to higher transportation and other costs engendered from the facility cuts it was able to make last year http://www.govexec.com/management/2016/02/postal-service-lost-money-its-facility-closures-last-year/126238/?oref=govexec_today_nllf..

All this came out in recent USPS testimony before the Postal Regulatory Commission.

Quite disingenuously, a USPS spokesman blamed the moratorium on closure of the additional 82 postal facilities as an excuse for the postal service’s inability to save any money here. The postal service also cited technical obstacles surrounding the operations of distribution centers as reasons for deferring the further closure of mail facilities this year.

Yeah, you don’t expect the postal service to say it caved under political pressure from key Senators and others in 2015.

Last year, several Senators led by Sens. Jon Tester (D-MT) and Heidi Heitkamp(D-ND)sent a letter to Postmaster General Megan about how much these closings hurt people in rural locations http://www.tester.senate.gov/?p=press_release&id=3766.. After that the postal service tabled those closings until May.

And that’s not to mention the numerous smaller protests from local business groups frustrated by ever-slower mail delivery in their areas.
Undeterred, the postal service said it’s gonna go ahead with this new phase of closures anyway as if nothing had happened.

Let’s just see how this plays out in an election year when the postal service likely will face fiercer and larger political pressure. Ironically, this could come from members of Congress whose campaign mail is unnecessarily delayed.

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This entry was posted in Congress, Postal employees, postal facilities, postal finances, service levels, U.S. Postal Service. Bookmark the permalink.

One Response to USPS Actually Loses Money on ‘Cost-Cutting’ Closures

  1. Lynn says:

    The postal managers are like the bad news bears but not in a cute or charming way. I am predicting that in the current atmosphere where Congress is investigating “official” time or time spent on Union related matters across the board in the federal government, and in the context of the upcoming USPS – Union negotiations there will be more hell to pay. Lots of chest thumping in Congress. They just hate the right to collective bargaining. They hate the USPS for not being 90% privatised like the Army.
    Then, more fuel is added to the fire by bone headed moves like this.

    Like

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