Postal Service Renews Call for Five-Day Delivery
The U.S. Postal Service said it has again asked Congress to allow for a five-day delivery schedule as part of its five-year business plan.
Postmaster General Patrick Donahoe told a House committee the service faces financial challenges because it has a business model that does not allow it to adapt to changes in the marketplace and does not have the legal authority to make fundamental changes.
“We need legislation that, together with our planned changes, confidently enables at least $20 billion in savings by 2016,” Donahoe testified before the House Oversight and Government Reform Committee.
As part of its five-year plan, the service said it has several legislative requirements, including discontinuing Saturday delivery and the ability to reform workers’ compensation as well as eliminating duplicate government oversight.
The Postal Service reported a $1.9 billion loss for its fiscal second quarter, compared with a $1.3 billion loss in the previous quarter.
It attributed the loss to a continued decline in mail volume and a 2006 Congressional mandate to pay $5.5 billion into a health fund for future retirees.
