and pension programs. Also, the Postal Service would remain subject to potential statutory mandates governing its operations, such as requirements for universal service and for six-day delivery. Additionally, postal rate increases would be approved by the Postal Regulatory Commission, an independent regulatory agency, and rates for monopoly products would be subject to statutory rates caps in order to ensure that mail service remains affordable.
Yet by the early 21st century, the structure and service model established in the 1970 Act had become seriously frayed. Congress periodically intervened to provide relief and reforms, including in the costly and complex area of employee retirement benefits. Those measures, however, could not keep pace with the collapse of the traditional demand for mail services, and now the Postal Service once again faces serious challenges. As the Government Accountability Office (GAO) stated in September 2011, ―Little time remains to prevent USPS – the largest federal civilian employer – from insolvency. The stark reality is that USPS‘s business model is broken…USPS cannot continue providing services at current levels without dramatic changes in its cost structure.‖2
The Postal Service plays a critical role in the U.S. economy. As of the end of fiscal year 2011, the Postal Service employed just over 557,000 people3 and, in the course of the year, delivered nearly 168 billion pieces of mail4 to more than 150 million households and businesses.5 It operates at the center of an over $1 trillion dollar mailing industry that employs nearly 8.7 million people in both the public and private sectors.6 The Postal Service is vital, then, not only to those who use it directly, but also as a result of the ripple effects its operations have throughout the economy.
The Postal Service faces a dilemma: even as it stretches to deliver to more addresses, the overall volume of mail it handles is in decline. In 2011, the annual number of addresses to which the Postal Service delivered increased by more than 636,000, but the 168 billion pieces of mail it
1 P.L. 91-375, codified at 39 U.S.C. §§ 101 et seq.
2 U.S. Postal Service in Crisis: Proposals to Prevent a Postal Shutdown: Hearing Before the Senate Committee
and pension programs. Also, the Postal Service would remain subject to potential statutory mandates governing its operations, such as requirements for universal service and for six-day delivery. Additionally, postal rate increases would be approved by the Postal Regulatory Commission, an independent regulatory agency, and rates for monopoly products would be subject to statutory rates caps in order to ensure that mail service remains affordable.Yet by the early 21st century, the structure and service model established in the 1970 Act had become seriously frayed. Congress periodically intervened to provide relief and reforms, including in the costly and complex area of employee retirement benefits. Those measures, however, could not keep pace with the collapse of the traditional demand for mail services, and now the Postal Service once again faces serious challenges. As the Government Accountability Office (GAO) stated in September 2011, ―Little time remains to prevent USPS – the largest federal civilian employer – from insolvency. The stark reality is that USPS‘s business model is broken…USPS cannot continue providing services at current levels without dramatic changes in its cost structure.‖2The Postal Service plays a critical role in the U.S. economy. As of the end of fiscal year 2011, the Postal Service employed just over 557,000 people3 and, in the course of the year, delivered nearly 168 billion pieces of mail4 to more than 150 million households and businesses.5 It operates at the center of an over $1 trillion dollar mailing industry that employs nearly 8.7 million people in both the public and private sectors.6 The Postal Service is vital, then, not only to those who use it directly, but also as a result of the ripple effects its operations have throughout the economy.The Postal Service faces a dilemma: even as it stretches to deliver to more addresses, the overall volume of mail it handles is in decline. In 2011, the annual number of addresses to which the Postal Service delivered increased by more than 636,000, but the 168 billion pieces of mail it1 P.L. 91-375, codified at 39 U.S.C. §§ 101 et seq.2 U.S. Postal Service in Crisis: Proposals to Prevent a Postal Shutdown: Hearing Before the Senate Committee
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