The U.S. Postal Service plans to save $4 billion over the next four years by eliminating about 9,000 jobs chiefly through attrition and hiring freezes according to Postmaster General William J. Henderson.
Speaking at the opening session of the semi-annual National Postal Forum in Nashville, TN, the PMG said the USPS plans to annually reduce its overhead by about $100 million through “more efficient paperwork and purchasing…reducing transportation costs…[and] dramatic, breakthrough productivity” through automation, scheduling and better resource management.
Without mentioning the rate case pending before the Postal Rate Commission, in which the USPS seeks support for a proposed rate increase next January averaging 6.4%, Henderson said the postal service over has cut its costs by more than $1.5 billion over the last two years by “carefully controlling the size of our workforce.”
At the same time he announced that the USPS plans to “introduce Web-based services consistent with our mission and financial prudence,” indicating that they include enhancements to existing services such as electronic postmarks, electronic billing and payment as well as other electronic services.
Henderson also urged Congressional passage of the Postal Modernization Act, legislation that would give the USPS more pricing and service freedoms while expanding the authority of the PRC, saying “we needed [postal] reform five years ago, we need it today.”
The legislation has been bottled up in committee since gaining approval by the House postal subcommittee, chaired by Rep. John McHugh (R-NY), its sponsor.
Rep. Dan Burton, (R-IN), who chairs its parent, the House Government Reform Committee, has not indicated when or if the panel will act to send the measure to floor of the House.
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