• on Dec 31st, 2012 in OIG | 4 comments
    The Postal Service faced its own fiscal cliff in 2012 while the larger mailing industry continued to press for reform and innovation. But don’t count mail out just yet. A strong election season reminded many Americans that mail still matters, even in the digital age. And in Europe, one postal operator didn’t let 500 years of history stand in the way of reinventing itself. Looking over the headlines, the staff at the Office of Inspector General has pulled together the list below of the top 10 postal stories for 2012. After you read them, vote for your top story of the year, or let us know if we missed one. 10. Pitfalls of Sponsorship – The U.S. Anti-Doping Agency strips cycling legend Lance Armstrong of his seven Tour de France titles after accusing him of illegal doping while on the U.S. Postal Service team. 9. Sound as a Pound – Royal Mail positions itself for privatization after ending price controls, shifting its pension liability to the government, and earning a profit. 8. Regulatory Fireworks – The Postal Regulatory Commission approves a controversial and newspaper industry-opposed negotiated service agreement with Valassis and remands a portion of the Postal Service’s annual price increase, saying it ignored previous Commission orders. 7. A Vote for Election Mail – Direct mail still matters in politics. Election mail postage surged over $400 million as parties and politicians used mail to target their messages in contentious national and local elections. 6. Default This Year; Reform Next Year – The Postal Service defaults on two prefunding payments totaling $11.1 billion to the Retiree Health Benefits Fund. Lawmakers ready for a postal reform bill in the new Congress. 5. Terminator 2012: Rise of the Tablets, (Further) Decline of Print – Coincidence or not? Venerable publications, such as Newsweek and the Times Picayune newspaper, abandon or reduce their print editions, while the number of tablet owners doubled in the past year and reached 19 percent of adults. 4. Shrink to Fit – The Postal Service’s 5-year business plan calls for cutting costs by $20 billion through workforce reduction, consolidation of facilities, and elimination of Saturday delivery. In initial action, the Postal Service compromised and reduced hours at rural post offices rather than closing them and pushed back its plan to eliminate overnight delivery of First-Class Mail. 3. Postcards from the Edge – The Postal Service reaches its statutory borrowing limit of $15 billion for the first time ever and warned that it could run out of cash by October 2013, barring any significant action. 2. Brand Damage – Steady stream of bad news keeps the Postal Service in the news and threatens to hurt its brand, which could prove especially harmful as it reinvents its business model for the digital age. 1. Parcels are the New Letters – Same-day delivery trials by eBay and the Postal Service, the growth in parcel lockers, and the efforts of traditional brick-and-mortar powerhouse Wal-Mart to increase its online presence indicate a very bright future for packages.
  • on Jul 5th, 2010 in Labor | 37 comments
    One area identified in the Postal Service’s action for the future is to increase workforce flexibility. A larger, part-time work force would give postal management the flexibility to increase or decrease employees depending on mail volume. Although this change is not as drastic as closing postal facilities or switching to 5-day delivery, it raises questions about what a part-time postal workforce would look like. The Postal Service has fewer part-time employees than any other international postal operation. Currently only 13 percent of its workforce is part-time. Meanwhile, Deutsche Post employs a 40 percent part-time staff, while the United Kingdom’s Royal Mail employs 22 percent. Local competitors also have a higher percentage of part-time employees. For example, UPS employs a 53 percent part-time workforce and FedEx remains around 40 percent. Generally speaking, the Postal Service is behind the average American private sector firm, which employs a 30 percent part-time labor workforce.

    Is there a downside to employing a larger part-time workforce? Critics argue that part-time employees are less loyal to their employers, and as a result, they increase ”quasi-fixed” costs associated with recruiting, training, and oversight. However, recent findings call these assertions into question. A study in the Annual Review of Sociology found that part-time employees are just as likely as full-time employees to view their jobs as a “central life activity” and to be “equally committed to their organizations.” Moreover, the study also mentioned that employees’ demand for part-time jobs has increased since the 1980s, as the American workforce has increasingly desired job flexibility. Increasing the number of part-time postal employees would make the Postal Service more flexible in the face of declining mail volumes, seasonal fluctuations, and market volatility. For more information visit Newsweek story on part time workers. UPS info blog. A look at FedEx labor unrest. What do you think about the Postal Service’s idea to increase its part-time workforce? This topic is hosted by the OIG’s Risk Analysis Research Center (RARC).