Postal Service needs to make painful changes
The following editorial appeared in the (Bloomington) Pantagraph on Jan. 11:
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(MCT) — The U.S. Postal Service has to streamline its operations to function effectively, efficiently and economically in a changing communications environment.
Unfortunately, that is going to mean consolidating and closing facilities, including eight rural post offices in The Pantagraph area and hundreds of mail processing facilities nationwide. The expected closing of the Bloomington processing and distribution facility will be a blow to the community. The Postal Service estimates there will be a net decrease of about 72 positions by moving mail processing operations from Bloomington to Champaign and Peoria — but it’s likely 147 jobs will leave Bloomington.
However, it would be hypocritical — and counterproductive — to call for changes, then say, “Not in my backyard.”
Ideally, Bloomington could take over the functions of Champaign and/or Peoria, but officials say that would require equipment upgrades for which money is not available.
According to a draft feasibility study, more than $2.3 million in annual savings will result from closing the Bloomington facility.
But there will be “costs,” too, in addition to lost jobs. There may be changes in pick-up times at local mailboxes and a move to 2- or 3-day service, rather than next-day delivery.
That could contribute to a vicious circle in which diminished service leads more people to opt for alternatives, such as email, that results in more revenue loss that results in more service cutbacks.
The Post Service’s competitors in overnight and package delivery areas, such as FedEx, maintain a focus on customer service and making things as easy as possible for their customers — especially businesses. The Postal Service needs to put increased attention on customer service — including intangibles that don’t cost money, such as greeting people with a helpful attitude. Of course, the quasi-governmental Postal Service faces challenges private delivery companies don’t — such as universal delivery of first-class mail to sparsely populated areas across the country at the same price as mail sent within more urban areas.
One of the matters contributing to immediate economic problems is a requirement enacted by Congress in 2006 that the Postal Service pay $5.5 billion annually for the next 10 years to cover future retiree health benefits.
HR 1351, the USPS Pension Obligation Recalculation and Restoration Act, which would modify that requirement to put the Postal Service in a more solid financial position, has more than 200 co-sponsors. U.S. Rep. Tim Johnson of Urbana is one of two Illinois Republicans co-sponsoring the bill. Six Illinois Democrats also are co-sponsors.
A spokesman for Johnson said correcting the problem caused by requiring advance payments to the pension system would avert closings of many rural post offices and save jobs.
However, U.S. Rep. Adam Kinzinger of Manteno, has not signed on to the bill. He said via email, “Ultimately we must make sure that whatever is done does not leave the taxpayers on the hook for nearly $100 billion should the Postal Service not be able to maintain its operations.”
Even without the pension fund pre-payments, the Postal Service lost $5.4 billion last year, USPS Central Illinois District Manager Peter Allen said at a recent informational meeting in Bloomington. So, even if HR 1351 is passed, other cost-saving measures will be needed.
We urge officials to continue seeking alternatives that will limit job and service losses. At the same time, we recognize that some painful changes are necessary.
However, we remind postal officials that cutting services eventually reaches a point of diminishing returns.
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