Death of U.S. Postal Service: Many Jobs, Locations at Risk

Last month Time had an interesting article on Death of U.S. Postal Service: Many Jobs, Locations at Risk. I particularly like the history section.

"It wouldn't be far-fetched to argue that the postal service has been the most important institution in our country's history. For decades, the postal service was the largest public-sector employer in the U.S. At one point in the 19th century, three-quarters of all government employees were postal workers. The Founding Fathers considered the postal service so important that they put it in the Constitution, mandating that Congress have the power to establish and regulate post offices...In the country's early days, the postal service held together the far-flung populations of the U.S. by delivering newspapers — the only real source for information about the new nation — throughout the country. "

"For decades, this massive operation ran fairly smoothly, expanding along with the country and taking advantage of the new technologies brought about by railroad and flight. Mail volume increased from 50 billion pieces in 1953 to 75 billion in '66. Even so, the postal service often ran deficits. Its mandate of universal mail access almost ensured that it would go in the red. By the middle of the 20th century, the postal service was losing $600 million a year, and that's when the system starting breaking down. On the brink of the holiday season in 1966, a sudden influx of advertising mail hit the enormous Chicago main post office (13 stories high, covering 60 acres and billed at the time as the world's largest postal facility). What happened? The mail simply stopped. Stopped. For almost three weeks, 1 million lb. of mail — 10 million pieces — barely moved. It was a confluence of employee hours' being cut, inexperienced workers' attempting to sort the mail, a postmaster position left empty for too long and improved pensions that led to a high number of retirements."

"A few years later in New York City, a wildcat strike (one in which workers defy their union leadership) broke out, primarily over low wages. TIME called it "the Strike that Stunned the Country." At the time, postal workers were making less than sanitation workers, according to Philip Rubio, an assistant professor of history at North Carolina Agricultural and Technical State University. "A postal worker with a family of four could qualify for food stamps," he said.

When the workers walked out, President Richard Nixon sent in National Guard and U.S. Army troops to try to sort the mail. But it didn't help. "They rapidly realized what a failure that was," Rubio said. "They just couldn't get up to speed, and the mail kept stacking up. Within eight days, the Nixon Administration signaled it was willing to negotiate.""

"These incidents led to the Kappel Commission, a presidential advisory group made up of corporate leaders who had, admittedly, little knowledge about mail-delivery operations. By 1970, they were at work on proposals to reform the postal service, which eventually became the Postal Reorganization Act, turning the U.S. Post Office Department into the U.S. Postal Service. It was more than just a name change. Congress essentially turned the postal service into a quasi-governmental organization — not really a business but not really part of the government either. It was being forced to run more like a corporation or a private entity, to be self-supporting, even as it was still tasked to maintain service to every home in the country.

For the next several decades, the USPS was successful by most measures, surviving the occasional disgruntled worker's becoming violent — incidents that brought the phrase going postal into our consciousness. And, of course, there were some perennially angry customers fed up with long lines at the post office. But in general, the USPS was doing well enough that Congress decided it should start prefunding its retiree accounts — for the next 75 years. So in 2006, Congress passed a law requiring an annual prepayment of retiree health benefits, to the tune of $5.5 billion a year for 10 years. Except Washington didn't see the recession coming two years later. "That act has left such a devastating legacy that it threatens to drive our nation's postal service off the rails," Rubio said."