Slashdot Mirror
Tech Experts Look To Help Save the Postal Service
An anonymous reader writes "Some of the folks responsible for developing and promoting e-mail, e-commerce and social media are banding together in an attempt to save the US Postal Service, the institution arguably most threatened by the technological developments of the past few years. As mail volume continues to plummet and more Americans use the Internet to pay bills and keep in touch, Google executives, social media experts and some of the most passionate tech evangelists are planning to meet in Crystal City in mid-June to sort out how to save and remake the nation's mail delivery service. The conference, PostalVision 2020, is designed to bring together the people who understand what this technology has done, is doing and will do to digital commerce and communication in America. USPS anticipates losing about $7 billion during the fiscal year that ends in September and is in the process of eliminating 7,500 postmaster and administrative positions to save money."
As someone who shipped a lot of packages through USPS, the solution is very simple. Get a real time tracking system in par with UPS and FedEx (not bullshit overnight updates) and make the insurance for package claims less of a joke than UPS and FedEx.
As bills and correspondence mails have gone down, online buying and selling has taken it's place. But, most people are uncomfortable sending their packages through USPS. The tracking is only delivery confirmation and that costs extra at the post office. With cell phone technology, it should be trivial to implement real time updates.
If a package is lost, the insurance system is a joke. It takes forever and you can only correspond by mail. The insurance is ridiculously expensive and when you need it, it's a massive headache.
If they just fix those above issues, then lots of business would come swarming to them from online shippers.
Another thing, their rates are kinda screwed up. For heavy packages, the rates are much much higher than UPS and FedEx. It comes down to only making sense to send packages by USPS for under 4-5 lbs. They probably should also do the sweetheart deals with big companies that UPS and FedEx do - like shipping for pennies on the dollar for large volume shippers.
And, there are some sink holes like in Bell, CA that if packages get there, they come out weeks later (famous for losing Oscar votes). There are a few of them across the country.
I think USPS should move towards being more geared towards packages. But, that's just my end of the pond where I shipped packages through USPS. Maybe junk mail is the cash cow, or certified mail.
A postal service that serves all Americans equally, even if they live at the end of a dirt road a few hundred miles from civilization, is a founding value of our republic. The founding fathers knew that the free market could do mail, but they didn't trust it and thus they gave the fledgling nation a public (now quasi-public) postal system. Private companies, concerned with profits, cannot guarantee that rural residents will receive mail with the same prices and service as people in the heart of downtown. The USPS can.
The USPS is actually in the very unenviable position of being required to lose money to subsidize the rest of the Federal Govt. Several examples:
Congress sets the amount of money that the USPS has to pay into its pension and healthcare funds. This money is "held is trust" by congress (i.e. was spent 5 years before it came in.). The USPS has been forced to over pay for pension and retiree healthcare costs by over $80,000,000,000.00. Most of the $7,000,000,000.00 loss this year comes from an $5,000,000,000.000 payment into the retiree health benefits fund. In fact the USPS would have been profitable in the last 8 out of 10 years if it wasn't forced to subsidize congress's spending binges.
Congress requires the USPS to give rates to Non-profits that are below cost. Theoretically, congress is supposed to pay the difference, but hasn't for 17 years.
Periodicals (Time, WSJ, People ect) get preferential rates because of the lobbying power of the press. If I mail a 2.1 oz flat at presort standard rates (after putting the data through the national change of address database, something not required of periodicals) the lowest rate I could possible get is $0.194 per piece. I only get that rate if I bring it to the Sectional Center Facility where the mail will be sorted, and I presort it to the sequence the carrier walks in, and have pieces going to 90% of the residents on the route. That same piece going periodical rate only pays $0.16 for faster service.
I'm not denying that the USPS has problems of its own making it needs to deal with. It caved to the unions far to much in the past, giving it a very expensive workforce that thinks it constantly battling the evil management.
All of this comes from many years in the mail service provider industry. I'm not Aunt Edna that mails 3 birthday cards a year, and thinks that entitles her to complain that the Post Office in town is closing, even though it is within 2 miles of other Post Offices. I do multi-million dollar postage amounts every year. I am on first name basis with several USPS VPs.
Is this mentality entirely whole American or is this how everyone in Europe thinks about all their government does for them.
Why subsidize the sick population with healthcare?
Why subsidize kids with schools?
Why subsidize roads for those with cars?
Why subsidize those without cars with public transportation?
Why subsidize those in rural populations with Internet/Postal Service/etc?
Because it's what makes a society function. When I traveled abroad and the topic of healthcare came up, to the people I was with (Dutch) it just seemed unfathomable not to take care of your fellow Americans. Where as if it's breeched with a large part of the population it's "This is mine, you can't have any." I'm not saying either mentality is wrong but it just seems like a fundamental difference in thinking.
We watch CEOs walk away from failing corporations with hundreds millions of dollars in their hands and people go "meh". But try to get the homeless addict into counseling, off the street and into a productive role in society and everyone is up in arms. I was watching a documentary and people allow it because it's the "American Dream" and if they should ever magically win the lottery or become a multi-national CEO, the don't want that dream taken away from them.
And the most best part, we're a "Christian" nation. As my AP government told us. Jesus is the most popular socialist of all time.
Maybe I just need to move to Europe.
It is former Postal Employees, however it is a very muddy situation. The United State Postal Service used to be the United State Post Office Dept. At that point the Postmaster General was a cabinet position. During the 90s and ending in 2001, Congress passed postal "reform," which made the United States Postal Service, a private company with a government monopoly on letter mail. The USPS is governed by the Postal Regulatory Commission (PRC), who interpret the postal reform passed by congress.
I posted all that as background for this next part.
Because of all these changes, some employees are under different pensions and healthcare systems than others. The first pension system is over funded (by govt. mandate) by around $70,000,000.00. This money was put into the general govt. retiree pension fund, which was spent by congress years ago. Newer USPS employees are part of a different pension/healthcare fund. Congress mandated that this fund be fully funded before 2020. That meant the USPS had to set aside about $5,500,000.00 a year for a decade to fund retirees that won't retire until 2040. Because the money goes to congress, the budget deficit seems smaller every year the USPS pays. So the USPS has 2 pension funds (more than that really, but this is the simple explanation). One is massively over funded, but stolen by congress. The other has an unsustainable funding schedule to make congress's budget deficit seem smaller.