Will the Mighty USPS Follow the GM Route?

It is often projected that USPS will lose $238 billion if the downward trend will continue spiraling down. For the last year alone, the Postal Service has lost $2. 8 billion dollars. The United States Postal Service is struggling between life and death as it continue its try to float and make sense and relevance in today’s information age and advanced technology.Related image

USPS will not come its current situation if not for the following causative issues: 1st, as e-mails, voice chat, chat, online social systems and online payment have become popular, USPS old delivery system was chucked in the backseat. 2nd, the overpowering occurrence of Federal Express and UPS in the market has given people choices of where to send their packages. Third, terrorism has also compounded the current problems of USPS. The devastation of any postal office near to the World Trade Center during the September. 11 attack has made USPS lost $60 million worth of damage. Additionally , the existence of anthrax-laden letters has turned various people on the reverse direction.

The problems of USPS system has devastating effects to thousands of employees working under it. Of the 400 facilities owned by USPS nationwide, more than 100 are being closed. Of the over-all workforce of USPS, 15% of this is going to be laid-off. And 150, 000 employees are being offered with early on retirement. It is such a tragic situation to materialize because these employees do not merely exist on their own but have their own families with them, too https://www.liteblue-login.org/.

The Board of Governors behind USPS has come together to plan workable solutions and actions to hinder the organization’s cost from soaring and the organization’s earnings from weak. USPS has deliberation, designed to uplift its serious situation. USPS plans to diminish the delivery days from six to five days and nights. An intro of hybrid-mail items including email delivery has been proposed together with modifying the agreement with the union to provide USPS with more work overall flexibility and decrease health insurance contribution.

Furthermore, USPS made a proposal to the Congress to change the requirement that it prepay retiree health care liability. Approximately, 150, 000 from the workforce are ought to retire in the next five years. Lastly, USPS proposed to make more use of franchises and contract stations rather than company retail outlets which cost much. Hopefully, these plans from USPS will get a favorable reply from the Congress and slowly solve the USPS prolonged concerns.

Of all the plans carefully developed by USPS, the Five-day delivery plan is the essential aspect that comprises the larger plan. It serves as the symbol of USPS balanced approach over the next ten years. Moreover, the Five-day delivery plan is not as plain as it can seem. With it, comes a massive legislative and regulating adjustments. If this plan will become successful, it has a projected savings of $3 billion annually. The US Congress is the only one who can make this plan into a reality which should be done in the future. USPS Mouthpiece Postmaster Patrick Donahue in New York said that, “Every day, every 30 days, each year this gets postponed, we wrap up further in the hole, “