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USPS Postmaster General Patrick Donahoe on the agency’s plans to cut Saturday deliveries in an effort to reduce spending.
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The US Postal Service planning to cut Saturday deliveries the cut its budget.
But the letter carriers union is finding it too -- -- saying it.
You that it is exploring all legal and political options -- blocked on his gambit.
If he were allowed to get away with this brazen attempt to override the law and the will of congress.
He will be free to go to four -- or even three did delivery in the future.
Talking about my next guest postmaster general Patrick Donahoe.
Patrick you've been a busy man today thanks a lot for your time.
-- let's talk about initially this decision.
No more Saturday delivery of Mel but there will be delivery of packages right.
That's correct what what's gone on over the last few years.
Fought for five years we've had a big drop off in first class mail and billions of dollars in revenue and -- the same time nice increases in the package this is so.
We know the American public wants the package sliver -- -- the American public also does not want to take on.
Tax burdens to bail us out in terms of delivering mail more than five days a week we take no tax money now we don't want to take it.
And -- by the same token.
This is from what I've rebels say maybe two billion dollars a year but the post office.
Having lost fifteen billion dollars last year this is -- something akin to the proverbial drop in the bucket.
And at some point the -- -- that a fighting this may have actually come to the table and make some sacrifices.
-- unions have made some sacrifices we have excellent employees and in this organization to give you an idea.
In the in the last four years we've produce a headcount by about 193000.
People with the same work clothes are people working a lot harder.
-- key thing to remember about our finances is this.
We lost fifteen point nine billion dollars last year eleven point one billion was due to our inability to make.
They pre funding requirement for for a retiree health benefits.
That the operating loss was closer to about two and a half billion.
Moving ahead with things like the six to five.
And some other changes in our health care do give us the ability to close the gap -- got a five year plan out there we make that happen we get profitable and to pay off our debt.
And -- you know I don't I don't wanna be disrespectful itself something like a pipe dream and while I understand that you don't you wanna be you wanna be respectable to the unions these are the -- millions that are saying.
They're considering suing you on this first move that.
What looks like the low hanging -- by the way of any any part of your five year plan that the you know stopping this Saturday delivery so.
You need some more participation -- to make this thing ultimately profitable because right now does -- upon entering.
Well change is tough on anybody I can say are poised to great job the -- thing for us is this.
Got to get our finances and -- because there's three.
Big product lines that we think will be strong going into the future.
Commercial first class mail bills a consent do you even -- people pay bills online they still get a lot of of their male -- copy of the system direct mail.
And -- we do all three of those are good product lines.
Get our the -- her finances straight and we will have a good future with those products.
Right and I got to tell you I mean I and I agree with -- it sounds like a business that's got to downsize and Vodafone profitable areas.
That means fewer employees but he also cover -- problem -- congress we've got a minute left but Elijah Cummings from Maryland.
He said that delivering frequency determined it should be determined by legislation rather than arbitrary action.
By the Postal Service I mean not only gonna have to fight against unions to achieve your five year plan but -- the congress this of the United States of America.
Congressman Cummings is -- he's a very good guy he's on our oversight.
And will be working with him over the course of the next few weeks and and I'm sure that as we work together both the senate and house will come up with a win win solution.
Before -- -- to go though.
It would it is realistic that the the old -- Americana.
Romanticize.
Post office and -- America.
That act that also maybe it's a gathering place for some of the locals would be can't support that anymore.
-- to ultimately a lot of changes we'll have to be made they'll be painful changes lot of people will lose their jobs a lot of small bound to lose or post office right.
None and we got a good plan a -- post offices were cutting back the hours of day of service.
But to save about a half billion dollars but we can keep -- -- opened another win win for the rule -- customers that we have.
Not you've got -- like this that it's been a long day for you had some tough decisions we appreciate your time.
Thank you.
