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For Immediate Release |
Contact: Robert E. McLean |
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Release No. 03-1 |
703-418-0390 |
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February 12, 2002 |
Mailers Council Study Shows Postal Productivity Improved, but Still Lagging Behind Private Sector Gains
WASHINGTON, February 12, 2003--A new study on Postal Service productivity shows that while it has reversed its declining productivity trend in recent years, the Postal Service has continued to fall behind private industry in improving productivity.
The Mailers Council, the nation’s largest coalition of mailers and mailing associations, commissioned the study, which updates results from a report published in 2000. The new report shows the Postal Service will never keep up with private sector productivity gains because of its current business model, size and financial burdens. Those burdens include pension liabilities, retiree health care, workers’ compensation and debt
“Our study shows that postal management has done a good job addressing productivity in the last three years,” according to Mailers Council Executive Director Bob McLean. “However,” he continued, “the study also reveals that even if postal management takes every possible step to improve productivity, the Postal Service will always lag behind the private sector. That situation is a result of statutory impediments that can only be removed if Congress approves legislation dramatically altering the Postal Service’s business model.”
The study reveals that within its current structure the Postal Service could improve productivity by such actions as shrinking the size of its work force and mail processing network, improving the use of technology, investing in a new capital improvements program and streamlining transportation management.
The study accompanies the Mailers Council’s testimony before the recently created President’s Commission on the United States Postal Service. President Bush has asked the nine-member bipartisan commission to identify the operational, structural and financial challenges facing the Postal Service; examine potential solutions; and recommend legislative and administrative steps to ensure the long-term viability of postal service in the United States.
In its testimony, the Mailers Council offers six recommendations for revitalizing the Postal Service. They include supporting the continuation of universal service, improving postal management compensation and tying any pay increases to productivity increases, improving financial transparency and investing in technology.
The Mailers Council is a coalition of corporations, nonprofit organizations and major mailing associations. Mailers Council members represent for-profit and nonprofit mailers that use the United States Postal Service to deliver correspondence, publications, parcels, greeting cards and payments. Collectively the Council accounts for 70 percent of the nation's mail volume.
Copies of the complete productivity study (which was developed by the Direct Communications Group of Silver Spring, MD) and the Mailers Council’s testimony are available by clicking the links below.
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