The House federal workforce subcommittee plans to hold a hearing in late March to examine why the post master general got $135,000 in incentive bonuses despite the worsening financial health of the USPS and ongoing and projected reductions in work hours.
The Postal Service is pinched by declining mail volumes and pension funding obligations and is seeking leaner and reduced operations. It posted a net loss of $2.8 billion for the 2008 fiscal year and has offered thousands of voluntary early retirements.
Its dire financial situation has led some to question the timing of adding bonuses to compensation packages totaling about $800,000 for John Potter, and $600,000 for his deputy.
Still, some argue postal executives should be paid more, arguing that their private sector counterparts are lavished by comparison and that Postal management has improved delivery times and is streamlining operations under trying circumstances.