USPS Solutions to Its Dire Circumstance

USPS Solutions to Its Dire Circumstance




The USPS has made its own annal in the profound history of the United States of America. The USPS has truly attained its title of being a mythical icon. Its length of service has laid down its ability to deliver posts dependably and efficiently. The USPS economical sets have attained the favor of so many American people.

But, it has come to a point that USPS was shaken to its very chief when the Internet has attained worldwide momentum and soaring popularity. It has been experiencing a dreadful decline in the utilization of its sets offered to the public. The blatant truth is that for the next ten years, it has been projected that USPS will lose $238 billion if the downward trend will continue spiraling down. For the last year alone, the Postal Service has lost $2.8 billion. The United States Postal Service is struggling between life and death as it continue its attempt to float and make sense and relevance in today’s information age and progressive technology.

USPS will not come its current situation if not for the following causative issues: First, as e-mails, voice chat, chat, online social networks and online payment have become popular, USPS old delivery system was thrown in the backseat. Second, the overpowering presence of Federal Express and UPS in the market has given the public choices of where to send their packages. Third, terrorism has also compounded the current problems of USPS. The destruction of a postal office near the World Trade Center during the Sept. 11 attack has made USPS lost $60 million worth of damage. In addition, the presence of anthrax-filled letters has turned various people on the opposite direction.

The problems of USPS system has devastating effects to thousands of employees working under it. Of the 400 facilities owned by USPS nationwide, more than 100 of them are being closed. Of the over-all workforce of USPS, 15% of this is going to be laid-off. And 150,000 employees are being offered with early retirement. It is such a tragic situation to materialize considering the fact that these employees do not merely exist on their own but have their families with them, too.

The Board of Governors behind USPS has come together to plan workable solutions and actions to hinder the organization’s cost from soaring and the organization’s revenue from declining. USPS has deliberation, designed to uplift its dire situation. USPS plans to decline the delivery days from six to five days. An introduction of hybrid-mail items including email delivery has been hypothesizedv together with modifying the agreement with the union to supply USPS with more work flexibility and decline health insurance contribution.

Furthermore, USPS made a proposal to the Congress to reverse the requirement that it prepay retiree health care liability. Approximately, 150,000 of its workforce are ought to retire in the next five years. Lastly, USPS hypothesizedv to make more use of franchises and contract stations instead of corporate retail outlets which cost much. Hopefully, these proposals from USPS will get a popular reply from the Congress and slowly solve the USPS persistent concerns.

Of all the plans carefully developed by USPS, the Five-day delivery plan is the vital component that comprises the larger plan. It serves as the symbol of USPS balanced approach over the next ten years. additionally, the Five-day delivery plan is not as plain as it may seem. With it, comes a huge legislative and regulatory adjustments. If this plan will be successful, it has a projected savings of $3 billion yearly. The US Congress is the only one who can make this plan into a reality which should be done in the future. USPS Deputy Postmaster Patrick Donahue in New York said that, “Every day, every month, every year this gets delayed, we end up further in the hole,”

This Five-day delivery plan has attained a positive response from the public as shown in the survey done by USA Today/Gallup. According to the survey, 58% of the 18-34 age bracket and 73% of 55 or older age bracket have agreed to the plan if the postage stamp will not continue to rise and if it helps USPS save money.

Many people want USPS to cut back its price on postage stamp. But then, USPS is proposing to increase the price of postage stamp to 3 percent for this year and 10 percent for the next year with the ultimate goal of increasing revenue. However, this proposal has met an automatic resounding contradiction from the people. Hopefully, USPS will find a way to this.

The early retirement program of USPS offered to its employees has also faced several opposition stance from the employees, especially those who are members of The American Postal Workers Union. The group stands that a retirement is a personal matter and should not be forced.

There are countless criticisms surrounding the USPS proposal in uplifting its economic condition in order to continue existing despite stiff competition. The best thing is that USPS never halts in planning and finding for answers to its problems. This attitude will make USPS viable in the next 20 years.




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