Postmaster General Louis DeJoy on Tuesday unveiled a proposal to reform the U.S. Postal Service, describing his 10-year plan as necessary to stem billions of dollars in losses and put the agency on the path to profitability. But critics are voicing concerns about key elements of the plan, including slower delivery patterns and planned closures at some post offices.
DeJoy said the plan would “erase” a projected $ 160 billion loss over the next decade, increasing revenue through expanded parcel delivery and potential postage increases. Other economies would require Congressional action to change the requirements for pre-financing pension obligations for retirees and integrating postal service retiree health coverage with Medicare.
Notably, the plan would reduce the USPS delivery standard for correspondence to six days. Currently, the default is three-day delivery to any destination within the continental United States.
The plan comes while the USPS is already struggling with deliveries, as well as consumer complaints about mail that arrives days or weeks later than expected. At the same time, more Americans than ever are relying on the postal service, due to the continued coronavirus pandemic, which boosted demand for e-commerce and mail deliveries of prescription drugs and other essentials.
While critics and advocates note that the post office needs reform, some have expressed concern about the impact of slower delivery patterns.
“Sending correspondence should not be a game of chance and that is what is happening with the USPS, unfortunately, now,” Rep. Raja Krishnamoorthi, an Illinois Democrat, told KBS Van Cleave of CBS News. “And, unfortunately, people are starting to change some of their habits to get around the mail. So they are sending documents by email and are basically reducing their dependence on the mail, which in the long run is a disaster.”
Krishnamoorthi said he already receives emails and text messages from his constituents about his concerns about overdue medication, Social Security checks and bill payments for small businesses. “This is a catastrophe for them,” he added.
But DeJoy described the plan as necessary for the post office’s long-term survival.
“If left untreated, not only will our service continue to deteriorate, but we anticipate that we will lose $ 160 billion over the next 10 years,” he said during a video call to discuss the plan. “Before that, we will run out of money and we will not be able to continue without a ransom. We are not in favor of that.”
If the plan is approved, the USPS could break in 2023 and report a “modest profit” in subsequent years, said USPS chief financial officer Joseph Corbett.
Postal workers have “deep concerns”
The USPS wants to change its delivery pattern in order to deliver any shipment within six days. But postal service officials said on the call that seven of the ten letters would still be delivered within the current standard of three days of service.
Instead, mail delivered to the “fringes of our network” would take up to six days to be delivered, said Kristin Seaver, head of retail and postal service delivery officer. Mail that travels from coast to coast can take five days to deliver, with the USPS adding an extra delivery day as a cushion for those deliveries, she added.
The American Postal Workers Union expressed “deep concerns” about slower delivery patterns, as well as other changes.
“At a time when the public demands faster delivery of correspondence and parcels, proposals that slow down mail and reduce retail services – such as changing service standards, consolidating factories and reducing post office hours – only will have a negative effect on postal workers and the public, “the union said in a statement.
In defending the change, the USPS noted that its delivery patterns have declined in recent years. “In particular, we have not achieved our first-class courier service goals in eight years,” says the Delivering for America plan. “This is due to both unattainable service standards and a lack of operational accuracy.”
Closing mails
The plan also provides for the consolidation of some post offices that receive “little traffic” in full-service retail post offices, although it did not specify which branches may be closed. She also plans to “further align Post office hours with local use” and potentially increase postage rates, although DeJoy said there are no specific plans in place for the latter.
Last fall, the USPS said it would keep the stamp price “forever” – and the first-class letter rate – at 55 cents for 20201, while other first-class mail rates are expected to rise 1.8% and alternative categories of mail would cost 1.5% more.
Cutting services and delivery standards is not the right way to improve postal service, said Krishnamoorthi.
“When they talk about a turnaround, it doesn’t mean that, you know, what is going up must fall,” he said. “We need to talk about how to get the best out of the USPS, expand it and then what is not going well, change that part. And, unfortunately, Mr. DeJoy is doing the opposite now.”
—With reporting by Kris Van Cleave of CBS News.