Addresses Need for Legislative Reform at Business Mailer Event
TAMPA — In his annual state of the Postal Service address to the mailing industry and on the occasion of the 50th anniversary of the Postal Customer Council (PCC), Postmaster General and Chief Executive Officer Patrick Donahoe addressed a viewing audience of 8,000 today, describing the Postal Service’s new reality.
“We have reduced our annual costs by more than $12 billion and our workforce has been reduced by 110,000 career employees over the past four years, but we must do significantly more to return to profitability,” said Donahoe. “We must reduce our annual costs by $20 billion by 2015 to be profitable, and we do not currently have the flexibility in our business model to achieve these cost reductions.”
Donahoe praised postal employees for their hard work to bring about incredible cost savings while at the same time achieving record levels of service. He stated the Postal Service’s financial losses are due entirely to an overly restrictive business model and should not be interpreted as an indictment of the value of mail.
The Postal Service has advanced a comprehensive package of proposals that will allow it to operate more like a business, and without several large financial mandates, including: