Bush Pressed for Postal Reform; the Postal Service Needs Competition and a Flexible Work Force, Says Heritage Foundation

By Angelo, Jean Marie | Folio: the Magazine for Magazine Management, March 1989 | Go to article overview

Bush Pressed for Postal Reform; the Postal Service Needs Competition and a Flexible Work Force, Says Heritage Foundation


Angelo, Jean Marie, Folio: the Magazine for Magazine Management


Bush pressed for postal reform

Washington, D.C.--The Postal Service Reorganization Act of 1970 is obsolete, and inefficiency costs the United States Postal Service $5 billion of its $30 billion budget yearly, according to the Heritage Foundation, a conservative think tank that has presented recommendations for postal reform to President Bush.

The Foundation further notes that the cost of a first-class stamp has increased faster than the rate of inflation during the past 19 years, says Stephen Moore, economic policy analyst for Heritage.

The Foundation, which outlined about a dozen recommendations for change, calls for Bush to set up a Presidential committee to review the changes. This committee might study labor costs, which now account for 83 percent of postal costs. In addition, Heritage wants the Postal Service to give up its monopoly on delivering certain classes of mail.

The Postal Service has a horrendous batting average with third class mail, adds Moore. At least 70 percent of third class mail is either delivered late or not at all. "One way to improve this is to experiment with more competition," he explains. "I don't think the public would be upset about having a separate company deliver advertising fliers."

Heritage also urges President Bush to appoint pro-competition people to the Postal Board of Governors and the Postal Rate Commission. It is unlikely, however, that Bush will make any immediate appointments, because all nine governors and five commissioners are Reagan appointees with time left in their terms.

The report also calls for relaxation of work rules, since the Postal Service must now limit its part-time employees to 5 percent of its work force. …

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Bush Pressed for Postal Reform; the Postal Service Needs Competition and a Flexible Work Force, Says Heritage Foundation
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