Federal Manager's Daily Report

DeJoy to Resign from USPS; Says Reorganization Initiative Must Continue

Postmaster General Louis DeJoy has announced his intention to resign—although to stay in office until a replacement is named—in the process urging that his successor continue his controversial Delivering for America reorganization initiative. (The announcement comes amid reports – first in the Washington Post – that the Trump Administration is planning to fire the Postal Board of Governors ahead of moving the USPS under the Commerce Department.)

In a letter to the Postal Board of Governors he said “it is time for us together, to think about and plan for the inevitable changing of the guard in many areas of our organization, to ensure that the new culture we have developed survives our tenure, including mine, and continues to thrive.”

He continued, “Postmaster General is a demanding role made more difficult by the devastating condition I found the Postal Service in when I arrived and the almost unceasing resistance to change — without offering any viable solutions — from stakeholders motivated by both parochial and political purposes.”

“The simplest and most obvious ideas and solutions receive illogical and irrational scrutiny from those that have no responsibility for ensuring the financial viability of the Postal Service. This, combined with industry lobbying, has held the organization back in the past from making the necessary changes,” he added.

His announcement closely follows the latest clash between DeJoy and the Postal Regulatory Commission over the DFA initiative, in which that body questioned whether the projected savings—which it also questioned—will prove to be worth the disruption of closing and reorganizing many facilities and the decreased levels of service in certain delivery categories and areas.

In his letter, DeJoy pointed out that the USPS turned a profit in its most recent quarter, which he said “is a strong indicator that the Postal Service is on the path to fulfilling its long neglected legal duty to operate in a self-financing manner.”

Choosing a new PMG is in the hands of the governors’ board, however, which currently has a Republican majority with three of the nine seats vacant. Those appointments, and the appointment of the next PMG, will be closely watched for signs of the long-term direction of the USPS, including the potential for privatizing some of its operations as the first Trump administration had recommended, although with little follow-up.

DeJoy meanwhile praised the Postal workforce for “superb” performance during his four-year tenure, adding in a separate statement that “Despite being victimized by a legislative and regulatory business model that produced almost two decades of devastation to their organization and workplaces, they have persevered and embraced the changes we are making in order to better serve their fellow citizens.”

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