Transformation News
FOR IMMEDIATE RELEASE
April 5, 2002 - 2:00pm
PMG unveils USPS Transformation Plan today
at the National Press Club
Postmaster General Jack Potter today unveiled the long-awaited USPS Transformation Plan at the National Press Club in Washington, DC.
The plan provides a blueprint for the future. It outlines strategies USPS can follow under current law, examines moderate legislative reform in key areas such as pricing flexibility and presents long-term options to maintain universal service.
"We are proud of the Postal Service's 225-year tradition of serving America," Potter told the National Press Club. "We have been a valuable asset to this great nation. And, we can and will be an asset for decades to come."
But to do that "we need to go through a transformation - perhaps one of the most important in our history," he said. "It's a transformation that will help us secure the future of universal mail service at affordable rates and give us the tools to protect regular mail and ensure a sound national system well into the future."
"If transformation is not accomplished now," the PMG said, "the universal mail service we now rely on could be in jeopardy."
"If we continue to operate like the post office that we grew up with, the only post offices our children will know will be the ones they'll see in museums," Potter said. "We are at a point in our history when it's time for the next phase in postal evolution. And this time we need help."
The Transformation Plan outlines three alternative business models: government agency, privatized corporation or commercial government enterprise. Each would require structural legislative reform.
Potter said USPS has not found much support for a privatized corporation that would reduce universal service. He said delivery standards and prices might be dictated by where a person lives or where a business is located. "People speak of a digital divide. We don't need a delivery divide."
The second alternative - a governmental agency - would take USPS back to the days of federal subsidies and taxpayer support.
The PMG said USPS believes a commercial government agency would best allow integration of the postal system into the modern economy. At the same time, it would preserve the ability of the Postal Service to fulfill its mission of universal service.
The Transformation Plan outlines steps that can be taken now to reduce USPS costs by roughly $5 billion over the next five years. Most immediately, USPS would lift the moratorium on post office closings. "This doesn't mean there will be wholesale closings," said Potter. "We will restart the process to close post offices that have been suspended."
Other immediate actions include an evaluation of the Postal Service's existing processing network, more aggressive purchasing strategies that leverage our buying ability to lower our costs, improvements in the dispute resolution process to reduce the $500 million a year currently spent on labor-management disagreements, and moving to modernize the rate process under the existing regulatory framework.
Potter said he will "continue our strong performance focus, make the changes that are possible within the framework of the existing legislation and work with the Administration and Congress to bring about legislative reform to achieve this transformation."
###
USPS Transformation