USPS Chief: Postal Service facing ‘dire’ financial situation

Postmaster General Louis DeJoy had blunt words regarding the U.S. Postal Service’s need for significant reform in light of shrinking revenues.

“Our dire financial trajectory, operational misalignment in mail trends, outdated pricing, infrastructure underinvestments, inadequate people engagement, and insufficient growth strategy all demand immediate action,” he said during testimony before the House Committee on Oversight and Reform on Wednesday, noting that he had a “detailed plan” to address these concerns.

The plan calls for “a commitment to six- and seven-week delivery service to every address in the nation … a commitment to stabilizing and strengthening [USPS’s] workforce … [and] a commitment to investing in [the USPS’s] network infrastructure,” DeJoy said.

Later in the hearing, Ron Bloom, chairman of the USPS’s Board of Governors, noted that the USPS is projected to lose $160 billion over the next 10 years if the reforms are not implemented.

POSTAL SERVICE REPORTS FIFTH CONSECUTIVE PROCESSING SCORE DECLINE

DeJoy alluded to the criticism of his handling of mail service amid slowdowns during the coronavirus pandemic.

“Let me say at the outset that we must acknowledge that during this peak season, we fell far short of meeting our service targets. Too many Americans were left waiting for weeks for important deliveries of mail and packages,” he said. “This is unacceptable, and I apologize to those customers who felt the impact of our delay. All of us at the Postal Service … strive to do better in our service to the American people, and we will do better.”

DeJoy has been accused by congressional Democrats of “concerning practices” during his tenure, including “management rejecting most overtime requests, limiting transportation, and renewing orders to reduce office time and leave mail behind,” according to a letter Senate Democrats wrote to the postmaster general on Feb. 17.

A representative for DeJoy took issue with the Democrats’ claims that he attempted to reduce overtime.

“Postmaster General Louis DeJoy did not eliminate overtime and he did not reduce it,” he wrote. “In fact, overtime ratios for each month were higher than ratios in the previous year since he become Postmaster General. He has granted the organization the ability to use all avenues necessary, including overtime, to deliver mail and packages in a timely manner during this past extraordinary election and holiday season.”

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Republicans have defended DeJoy, a Trump appointee, with Rep. Ralph Norman of South Carolina accusing Democrats of pushing a “false narrative” that’s an “insult.” Rep. Mark Walker said DeJoy was “viciously attacked” by “false accusations” during an Aug. 24 hearing before the committee.

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