Postal Service can take election
Presidential contest no problem, postmaster general says
WASHINGTON — The U.S. Postal Service said it lost $2.2 billion in the three months that ended in June as the beleaguered agency — hit hard by the coronavirus pandemic — piles up financial losses that officials warn could top $20 billion over two years.
But the new postmaster general, Louis Dejoy, disputed reports that his agency is slowing down election mail or any other mail and said it has “ample capacity to deliver all election mail securely and on time” for the November presidential contest, when a significant increase in mail-in ballots is expected.
Still, Dejoy offered a gloomy picture of the 630,000-employee agency Friday in his first public remarks since taking the top job in June.
“Our financial position is dire, stemming from substantial declines in mail volume, a broken business model and a management strategy that has not adequately addressed these issues,” Dejoy told the postal board of governors at a meeting Friday.
“Without dramatic change, there is no end in sight,” Dejoy said.
While package deliveries to homebound Americans were up more than 50 percent, that was offset by continued declines in first-class and business mail, even as costs increased significantly to pay for personal protective equipment and replace workers who got sick or chose to stay home in fear of the virus, Dejoy said.
Without an intervention from Congress, the agency faces an impending cash flow crisis, he said. The Postal Service is seeking an infusion of at least $10 billion to cover operating losses as well as regulatory changes that would undo a congressional requirement that the agency pre-fund billions of dollars in retiree health benefits.
The agency is doing its part, said Dejoy, who took command of the agency June 15. Dejoy, 63, of North Carolina, is the first postmaster general in nearly two decades who is not a career postal employee.
In his first month on the job, Dejoy said, he directed the agency to vigorously “focus on the ingrained inefficiencies in our operations,” including by applying strict limits on overtime.
While not acknowledging widespread complaints by members of Congress about delivery delays nationwide, Dejoy said the agency will “aggressively monitor and quickly address service issues.”
Later Friday, Dejoy released another memo detailing changes he said would improve efficiency and focus on the service’s core mission. The changes include a management hiring freeze and a request to allow future, voluntary early retirements for non-union employees.