In a recent Washington Post article, the USPS reported an $8.5 billion loss this past fiscal year, claiming that it will run out of money by 2011 unless Congress takes action, with most of the losses coming from obligations to retiree health benefits and workers’ compensation. This all happened even with cuts in costs and the removal of 105,000 jobs. The inefficiencies of a bureaucracy are clearly portrayed through this example.
The USPS works as the agency between the citizens and the government that makes the laws and regulations. Because the USPS is such a huge organization, the relationship between the individuals and the government leadership is very distant. As a result, the bureaucrats are not urgent to make changes to the regulations and laws because they don’t have an incentive to please the individuals. They don’t really worry about it either, because they don’t have to deal with the complaining directly. It is extremely hard to get anything done.
Chief Financial Officer of the Postal Service Joe Corbett calls for a change in legislation, regulation, and labor contracts. However, the presumptive future chairman of the postal affairs House committee Darrell Issa suggests that the USPS should cut costs even more, rather than risk changing the workings of a postal system that currently does not use taxpayer funding. In addition to the lack of incentive, representative Issa may be doing this to gain more power. Because he doesn’t gain anything if the USPS does well, he has more control and power when the USPS does poorly and comes to him asking for help.
To circumnavigate this problem, the Postal Service proposed plans that would allow them to make changes without congressional approval. To decrease the losses, the USPS also wants lawmakers to change the law that requires $5 billion in annual payments to retiree health benefits. The fate of our mail depends on if Congress decides to make some changes!
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