US Post Master General, Pat Donahoe
Pat Donahoe (US Postmaster General) announced that a 5-day delivery mail schedule would begin in August, saving approximately $2 billion a year. Packages will continue to deliver 6-days a week and post offices will continue to be open on Saturdays. Other countries such as Canada, Sweden and Australia have reduced their Saturday services with positive impact.
The bold move raised immediate legal questions in Washington as some lawmakers claim that Congressional approval is required. Earlier attempts to change the current law have been met with objections and delays from Congress driving the USPS to make the change on their own.
Washington’s mandate, imposed solely on the USPS, to pay over $5 billion a year for health benefits to future retirees remains a central point of contention and a driving factor to make radical change.
USPMG Donahoe continues to push his long-term plan to return the US Postal Service to profitability. The plan calls for closing some of the small, rural post offices and the reconstruction of the postal logistical network by reducing the number of its regional processing plants to gain greater efficiency.
The USPS has conducted studies surrounding the reduction of delivery days and has received surprisingly positive response. The USPS is a reliable and intricate part of our economy and direct mail marketing continues to be successfully drive sales to businesses in an affordable and measurable way.
The decision to end Saturday delivery may ultimately be blocked by an act of Congress, however, the announcement moves postal overhaul legislation to the forefront.
We’ll keep you posted on the latest as it happens.