The U.S. Postal Service must explore broadening contract delivery services as a way to cut costs, Postmaster General Jack Potter told a Senate panel Thursday.
In testimony before the Senate Subcommittee on federal financial management, Potter defended the USPS’S consideration of further outsourcing some of its delivery operations under the new Postal Accountability and Enhancement Act, which calls for rate caps or the first time.
“With postage rates linked to inflation under the new postal law, contracting out remains an effective and necessary tool to help us manage costs to achieve this mandate,” Potter said. ” Yet I believe achieving productivity gains in the delivery function can limit the growth of contracted delivery work.
“We understand the concerns any labor organization would have with outsourcing. But it is not our intention to take existing work away from our letter carriers, nor is it our intention to lay off any carriers,” Potter continued. “That is something I pledge not to do.”
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