Mail delivery may be cut

HARLEM VALLEY — Neither rain, nor hail, nor sleet, nor snow can keep the postman from delivering the mail, but the sluggish economy might.

According to a Feb. 4 release from the United States Postal Service (USPS), the government institution ended its first quarter (Oct. 1 to Dec. 31, 2008) with a net loss of $384 million, “as the economic recession contributed to a 5.2 billion- piece mail volume decline compared to the same period last year.�

United States Postmaster General John Potter has asked Congress to permit a five-day-a-week delivery system. USPS NY-Metro Area Spokesperson Tom Gaynor said it’s a measure the agency would rather not take.

“At this time it’s only a consideration, no final decision has been made,� he said. “We’re only looking at it as a temporary solution when it comes to limiting delivery to five days a week, and it would only come at those periods when mail volume is at its lowest and it would happen infrequently.�

According to the USPS, “the 9.3 percent volume drop marked the eighth consecutive quarter of accelerating volume declines. With no economic recovery expected for the remainder of the fiscal year 2009, the Postal Service projects volume for the year will be down by 12 to 15 billion pieces.�

One of the hardships facing the post office these days has been presented by the Internet. Nowadays people are able to communicate with one another instantaneously from one corner of the globe to another, making so called “snail mail� obsolete to some.

That, coupled with the growing number of options when it comes to courier services (think UPS, Federal Express, DHL, etc.), hasn’t helped the post office, which is fighting hard to keep its customer base.

It’s introduced new products and offered price and volume incentives to consumers and businesses. Last year it created a new Mailing and Shipping Service division to help bring new products to market better and faster. While trying to generate more business, it’s also keeping an eye the bottom line.

“We are taking bold steps to cut costs immediately,� Potter stated in the release. “At the same time, we are examining, realigning and streamlining our business to address longer-term financial pressures while continuing to provide high levels of service to the American public.�

According to the Postal Service, it is “an independent federal agency with 37,000 retail locations. It depends on the sale of postage, products and services to pay for its operating expenses, not tax dollars. It has annual revenues of $75 billion and delivers nearly half of the world’s mail.�

Covering its health-care commitments to current and future retirees is one challenge for the Postal Service. The agency requested Congress “provide legislative assistance by adjusting a portion of the payment requirements of more than $7 billion a year for retiree health benefits (no tax subsidy was requested),� according to the USPS. However, the Postal Service is not allowed to postpone its payment of retiree health care benefits for two years. The current retiree health payment annual cost is $2.3 billion; Gaynor said by 2016 that bill will likely rise to $4.8 billion.

The Postal Service also stated that it “is also looking to eliminate $5.9 billion in costs through fiscal year 2010, including the reduction of 100 million work hours this year, doubling last year’s effort. In quarter one, almost 27 million work hours were reduced compared to the same period last year. Other cost-containment efforts include freezing the salaries of all Postal Service officers and executives at 2008 pay levels, reducing travel budgets and halting all construction of new postal facilities.�

There’s no word yet on when a decision will come through on the possibility of a five-day-a-week mail delivery system. If and when that happens, the day that is omitted from the delivery schedule could be any light mail day, not necessarily Saturday, according to Potter. Some speculate this could mean Tuesday, a typically light mail day, would be cut from the delivery schedule.

In the meantime, “We’ll continue to deliver the mail while trying to reduce our costs and take a number of measures to try to provide efficient service. Business will proceed as it always does for delivery and service of mail,� Gaynor said. “We just have to continue to operate in the era of a deteriorating economy.�

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