5-day delivery would not mean layoffs, PMG says - FederalTimes.com

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5-day delivery would not mean layoffs, PMG says

The U.S. Postal Service could eliminate Saturday delivery without laying off any full-time employees, Postmaster General John Potter told lawmakers April 15.

At a House Oversight and Government Reform Committee hearing, Potter stressed the urgency of moving to five-day delivery. That, along with other changes, would cut the department's estimated losses from $238 billion to $115 billion in 10 years, he said.

"The time to change the frequency of delivery is now," Potter said.

Rep. Stephen Lynch, D-Mass., also recommended action, echoing a Government Accountability Office report released the same day.

But Rep. Gerry Connolly, D-Va., took issue with the Postal Service's estimate of cumulative losses totaling $238 billion by 2020.

"It looks like a scare tactic to make us make decisions that may not be popular," Connolly said.

Phillip Herr, GAO's director for physical infrastructure issues, testifying alongside Potter, said the number is a worst-case scenario.

Postal Regulatory Commission Chairwoman Ruth Goldway said cutting service could make mail volumes decline faster.

"Now is not the time for sweeping changes to the Postal Service," she said.

That brought a rebuke from Rep. Jason Chaffetz, R-Utah.

"I find it shocking that you inject so much subjective analysis," he said. "When do you think we should get to serious change?"

The American Postal Workers Union has denounced the five-day work week. In testimony submitted last month to the Senate Appropriations subcommittee on financial services and general government, APWU President William Burrus said five-day mail delivery "would be the beginning of the demise of the Postal Service."

Potter ignored criticism of the plan, and suggested another way to further cut costs: fewer hours for long-term contract employees.

"We no longer have eight-hour jobs in all locations," he said. He faulted union agreements for constraining management of the facilities.

"We're going to fight vigorously in negotiations this year and, if necessary, in litigation," Potter said.

Potter also reminded lawmakers of a report by the Postal Service's inspector general, released earlier this year, showing the department overpaid into the Civil Service Retirement System pension fund by $75 billion. Potter asked that the department be allowed to use that money to fund its retiree health benefit obligations, which currently total about $5.5 billion annually — although last year Congress permitted the Postal Service to only pay a fraction of that.

"This was a one-year kick-the-can-down-the-road fix," said Rep. Darrell Issa, R-Calif. "We must have a plan that would bring right-sizing, solvency and a continued level of high service at the post office."

The Postal Regulatory Commission plans to issue a report on the pension issue this summer.

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Max Frumes writes for Medill NewsService.

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The American Postal Workers Union has denounced the five-day work week as being

The American Postal Workers Union has denounced the five-day work week as being "the beginning of the demise of the Postal Service." (Paul J. Richards / AFP)

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