Wednesday, March 3, 2010

Postal service - massive deficit looming

The Associated Press reported that the Post Office plans to cut service and increase prices. The USPS expects a $7 Billion loss this year and a $233 Billion loss over the next 10 years. In just three years, according to the AP, "the number of items handled by the post office fell from 213 billion in 2006 to 177 billion last year. Volume is expected to shrink to 150 billion by 2020."

Has the USPS looked at the cost of delivering the mail? You never see in the news how much your friendly mail carrier earns. Just how much does s/he earn? And how about the window clerk? And the others "in the back"?

When I lived in Santa Fe in 1989-90, I went into a post office to purchase postal cards. The window clerk was stoned; he couldn't even count out ten postal cards in an efficient manner. I complained to the Manager and asked what that position paid. At that time, that window position paid $33,000/year. Plus benefits, of course.

I suggested she go down to 7-11 and hire away the clerk for minimum wage. She'd get a better employee and saved a lot of money! Minimum wage in 1990 was $3.80/hour; now it's $7.25/hour. That's $7,600 - $14,500 for a 2,000-hour year. OK, so pay double minimum wage.

So, who knows what the wages are for a USPS employee after 5-10-20 years? No doubt the union protects them, but ...

2 comments:

Justin said...

Afew years ago at CHristmas, I was standing in the line waiting to get to the postal clerk. I along with about 12-15 other people were inside the inner doors of the post office. When the magic moment came, either 4:30 or 5:00, the clerk told everyone they would have to return TOMORROW and promply closed the windows and usered everyone outside the inner area.

They should have closed the doors to the inner area and finished waiting on them but they pissed off about 15 people.

The WOODSTOCK PO is one of the worse for customer service. I do beleive it is better now, but regardless, it left a bad feeling about the service.

Bounty Hunter said...

I agree Just... but as you state, the service has gotten much better over the past few years... I will go out on a limb and say the service of the USPS has been better than and cheaper than UPS.

Perhaps now I see why. They aren't doing many numbers any longer. To little to late it appears. Which is really a shame because in principle, the USPS has a legacy which will forever be a memory.

Think of the loss of jobs for communities and families.. OUCH!

Good report Gus. Thanks