Postal News
FOR IMMEDIATE RELEASE
December 10, 2002
Contact: (202) 268-2155
REMARKS BY THE HONORABLE ROBERT F. RIDER
CHAIRMAN OF THE BOARD OF GOVERNORS
UNITED STATES POSTAL SERVICE
OPEN SESSION BOARD MEETING
DECEMBER 10, 2002
Good morning ladies and gentlemen. This morning, on our final meeting of the year, I want to take a few moments to reflect on the progress we've made over the past year and comment on the challenges we face in the coming year.
First, I want to congratulate the Postmaster General and his management team here at Headquarters and all postal employees across the country for bringing service performance to record levels.
Second, we have kept our promise to transform the Postal Service to meet the changing needs of our customers, the American people, in the decade ahead. A critical part of our Transformation Plan is our goal to cut $5 billion out of our costs by the end of 2006.
At the same time, we eliminated over 78 million workhours and reduced our career complement by 23,000 - all through attrition.
We explored opportunities to change the ratemaking process by convening with the Postal Rate Commission, two Rate Summit meetings with key leaders in the mailing industry. And we initiated the first Negotiated Service Agreement with our largest First-Class Mail end user, Capitol One Services.
We improved existing products with service enhancements such as Confirm and package delivery confirmation. Our customers have greater access to services and stamp products through the Postal Service website as well as an increasing number of retail outlets in shopping centers.
Our Transformation Plan has taken hold in the Postal Service. We are changing the way we do business. We are improving our existing products.
We're involving our stakeholders and our legislators in the process of reforming and redefining the Postal Service of the future. As we moving into the holiday season, we are serving our customers better.
I am optimistic about our future and the future of the mailing industry in the years ahead. But we still face many more challenges in the coming year. We must stay the course begun this past year with our Transformation Plan. We must continue to build on the successes we've achieved so far.
This morning, for instance, we will consider two proposals to enhance and improve our flats automation program. Together, these improvements have the potential to save up to $2.8 billion annually in sorting and delivery costs. Next year, we must take advantage of new opportunities to grow our business and increase mail volume.
The recent audit of our payments to the Civil Service Retirement System and the possibility of reducing those payments by $2.9 billion next year also signals an opportunity for our customers to build their business as well.
The prospect of delaying the next rate increase until 2006 gives mailers breathing room to plan ahead and develop marketing strategies to expand their use of the mail to grow their businesses. We must be able to make the most of this opportunity in the year ahead.
And therein lies our third challenge for 2003. The Postal Service and the mailing industry must build on the partnerships we've formed this past year. Together, we have made significant progress toward transformation.
But the next step must be taken by our legislators. The mailing community and the Postal Service must come together to urge legislation to change our CSRS funding formula and bring rate stability to the mailing industry.
This past year, the Postal Service, the leaders of the mailing industry and our policymakers in Congress shared a common commitment to modernize and improve the Postal Service. I am confident we will continue to build on the successes of the past year and continue to provide the quality of service our customers demand and deserve.
Before closing, I would mention that Governor Ernesta Ballard has accepted the position of Commissioner for the Department off Environmental Conservation in the cabinet of the newly elected Governor of Alaska. Unfortunately, this will be her last meeting as a member of the Board.
She has served us well, most recently as Chairman of the Audit and Finance Committee. Our loss is Governor Murkowski's gain. Ernesta has our congratulations and best wishes.
This concludes my remarks. I now invite the Postmaster General to give us his remarks.
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