The United States Postal Service is cracking down on late travel in an effort to cut labor and transportation costs, with the agency’s new top executive looking for ways to redesign its business model.
The cash-strapped USPS, whose poor finances have taken another hit during the new coronavirus pandemic, has ordered workers to abandon each phase of their deliveries according to an established schedule, which means that some emails are likely delay. Louis DeJoy, who became chief postal officer last month, led the changes, which the Postal Service suggested could save $ 200 million.
“This operational pivot is long overdue and today we are talking about the first step in a journey we must undertake together, for the health and stability of the Postal Service,” wrote management in a prepared “foot talk” delivered to employees throughout the country in the last days. “The changes are simple, but they will be challenging as we seek to change our culture and move away from past practices used previously.”
In the first phase of changes, network, plant and delivery trips must be made on time. Late travel, which can lead to overtime, is no longer authorized, according to two memos, first reported by PostalNews.com. Another document explaining the policy says overtime will be eliminated soon, with “more to come” to explain the change in the near future. Any mail that cannot be delivered without overtime will be retained for the next day.
“The USPS will no longer use excessive cost to do basic work,” the document said. “If the plants are late, they will save the mail for the next day.”
The postmen were instructed to start, start their routes and return on time. The standing conversation memo suggested that it would be “difficult for employees” to see the mail left on the shop floor, but they should ensure that the pieces are properly recorded and distributed the next day. USPS promised to address “the root causes” that have led to the mail getting out too late in the day, suggesting that the directives would force new efficiencies into the system.
“As we adapt to the continuous pivot, which will have a series of phases, we know that operations will begin to run more efficiently and that delayed mail volumes will soon be significantly reduced,” wrote USPS. He added that the changes “would ensure that we can secure our future as a world-class service provider.”
Employees reacted severely to the news, confirming that they received the standing conversations as described in the memos.
“Just wait for the mail,” wrote Amy Horner, a rural mail carrier, in the PostalNews Facebook page. “Too much standing waiting. The slogan ‘every piece, every day’ no longer applies. Come in, come out.
Several employees commented that supervisors had told them they would no longer receive overtime, while expressing dismay that the mail would be left behind each day. Some speculated that the policy would lead to an increasing accumulation of packages and mail packages in plants and post offices. Others said they were not surprised by the changes and called them late.
Dave Partenheimer, a spokesman for the Postal Service, said the plans were part of an effort to reform the agency’s operations.
“The Postal Service is developing a business plan to ensure that we will be financially stable and able to continue to provide reliable, affordable, and secure delivery of mail, packages, and other communications to all Americans as a vital part of the nation’s critical infrastructure.” Partenheimer said, adding that the overall plan is not yet finalized, but “it will certainly include new and creative ways for us to accomplish our mission, and we will immediately focus on efficiency and the elements we can control, including adherence to operational plans. effective that we have developed. “
DeJoy, the new post general manager, “is looking at the cost” and “making the USPS financially sound, which we are not,” according to the memorandum described as his “expectations and plans.” The Postal Service previously asked Congress for $ 75 billion in financial assistance, citing the consequences of the pandemic. While the postal administration said earlier this year that it would likely run out of cash by the end of September, the agency said in a financial document in May that by accessing a $ 10 billion loan from the United States Treasury and prioritizing some payments over others “expect it to have sufficient liquidity to continue operating at least until May 2021.”
Mail volume and revenue during the pandemic have been precipitously reduced by Postal Service’s regular mail delivery, its most profitable offering, but those declines have been partially offset by large increases in the package business. Still, USPS spending is growing faster than its revenue, and it lost $ 651 million in May, regardless of inflationary changes in workers’ compensation costs.
The USPS board of governors in May named DeJoy as the next USPS postmaster general, selecting a stranger with no direct postal experience for the first time in nearly 20 years. His selection received some reservations, as certain stakeholders and lawmakers criticized his ties and donations to President Trump and the Republican Party, as well as his lack of institutional knowledge for the agency. Others, however, praised his private sector experience in logistics and expressed optimism that it would provide a fresh, external perspective to address the agency’s long-standing problems.
On his first day in office, DeJoy anticipated some of the new changes in a video message for employees in which he said the USPS has an “expensive and inflexible business model.”
“I did not accept this position despite these challenges, I accepted this position because of them, and because I want to work with you to address them,” DeJoy said. “I want to put this institution on a successful track record.”
Mark Dimondstein, president of the American Postal Workers Union, said the changes were moving the agency in “the wrong direction.” The federal statute governing the Postal Service requires fast, reliable and efficient service, he said, and the new directives would delay delivery. He said overtime exists due to staff shortages and seasonal fluctuations, but its members would not oppose overtime reductions while the mission was still in progress. However, he questioned whether the changes would actually lead to greater efficiency.
“That whole concept is an insult to postal workers who are a dedicated and hard-working group,” said Dimondstein.
The National Association of Letter Carriers, meanwhile, said it has not yet received any formal notification of a change in operations, but is prepared to “use existing processes to address any service or compliance issues.” A USPS official noted that there has not yet been an official note from the postmaster general about the changes.
Mike Plunkett, a former USPS executive and current president of PostCom, an association representing large-scale private sector senders like UPS, FedEx and Amazon, said he was surprised by opposition to the memoranda.
“The productivity of the Postal Service has been declining for several years, so there is a long overdue need for the Postal Service to take steps to control its costs. From that perspective, this is necessary, “he said. “To conclude that this is somehow downplaying the importance of the service or does it mean that the Postal Service is going to sacrifice the service, I don’t think it’s correct.”
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