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Operational Issues May Explain Service Standard Failures

A major focus of the Postal Service’s 10-year Plan, issued March 23, is the need to downgrade service standards for First-Class Mail because the current standards, which haven’t been met for several years, are “unattainable.” The Plan recites various reasons for this situation, including failures in air transportation and in compliance with facility operating plans.

The fundamental absence of operating discipline in USPS processing facilities was highlighted in two audits published in mid-April by the Postal Service’s Office of Inspector General: Delayed Mail at the Lehigh Valley, PA Processing and Distribution Center, issued April 12, and Delayed Mail at the North Houston, TX Processing and Distribution Center, released April 13.

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A Costly Constant: The Persistence of Postal Labor Costs

A report released early last month by the Postal Service’s Office of Inspector General (A Closer Look at Postal Labor Costs) illustrated the persistence of labor as representing the lion’s share of the agency’s total costs. In turn, it offered ratepayers a glimpse of both the magnitude of the expense and how the elements of the sum have changed over the previous decade.

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