Meanwhile, GAO issued an assessment of steps USPS has taken so far or potentially could take, finding for example that reductions in personnel have been largely offset by increases in costs per employee.
It said that over fiscal 2006-2013 USPS cut its workforce and number of work hours through early retirement offers, attrition, and initiatives to streamline its operations. The workforce fell from 796,000 to 618,000 employees, or by about 22 percent, while work hours decreased by about the same, 24 percent, to 1.1 billion hours. However, average hourly wage and benefits costs have increased due to cost-of-living allowances, rising health benefit costs, and wage increases negotiated in collective-bargaining agreements.
As for additional cost-cutting steps within postal management’s control, GAO noted that USPS has considered requiring customers to change to less costly delivery modes, for example mandating large-scale conversions from door delivery to delivery to a curbside or centralized mailbox; that has the potential to generate $2 billion in annual savings. “However, although USPS has the authority to mandate such conversions, it has not done so because it anticipates that such a change would face resistance from customers, employees, postal labor organizations, and mailing-industry stakeholders,” GAO said.
Similarly, switching to five-day mail delivery (with packages continuing to be delivered six days a week) also would produce annual savings of $2 billion, but that change would require approval of Congress.
The report is here: http://www.gao.gov/assets/670/666884.pdf
