For the past three years, Phillip Herr of the US Government Accountability Office was tasked by Congress to find out what's wrong with the US Postal Service.
He came to this conclusion (unsurprising to some, I'm sure):
Herr and his team concluded that the postal service's business model was so badly broken that collapse was imminent. Abandoning a long tradition of overdue reports, they felt they had to deliver theirs 18 months early in April 2010 to the various House and Senate committees and subcommittees that watch over the USPS. A year later, the situation is even grimmer. With the rise of e-mail and the decline of letters, mail volume is falling at a staggering rate, and the postal service's survival plan isn't reassuring. Elsewhere in the world, postal services are grappling with the same dilemma—only most of them, in humbling contrast, are thriving. [...]
The problems of the USPS are just as big. It relies on first-class mail to fund most of its operations, but first-class mail volume is steadily declining—in 2005 it fell below junk mail for the first time. This was a significant milestone. The USPS needs three pieces of junk mail to replace the profit of a vanished stamp-bearing letter.
I lot of the problem comes from the fact that there are just too many postal offices and that even though they have wanted to close some they get stopped, not by the unions but by congress because it seems nobody wants a post office to close in their district even if the union is ok with it.
Water Treatment Plants unprofitable, public dazed.
I'm with bb, there comes a point where if you want civilization you have to pay for it.
Also, if you're really interested in the USPS' financial affairs read this: http://answers.yahoo.com/question/index?qid=20101013235408AA2vlzI
2. Service/Cost parity with UPS and FedEx.
3. Home delivery on alternate days.
I work at UPS (union workers, by the way) and I think that the USPS is a great bargain...........think about it, you can send a letter ANYWHERE in the USA for 44 cents,. What a value. What else can you get for 44 cents now days? Their package rates are good too.
Nothing that goes by USPS these days will matter if it takes another day to get delivered.
Of course their unions will never let them reduce their staff (and the associated payroll, insurance, health, retirement, pensions) by 50%.
This report groups strategies and options that can be taken to address challenges in USPS’s business model by better aligning costs with revenues (see table on next page). USPS may be able to improve its financial viability if it takes more aggressive action to reduce costs, particularly compensation and benefit costs that comprise 80 percent of its total costs, as well as increasing revenues within its current authority. However, it is unlikely that such changes would fully resolve USPS’s financial problems, unless Congress also takes actions to address constraints and legal restrictions.
To be fair, the report didn't put the blame solely on the labor cost. It acknowledged that the postal service had other serious problems - some its own doing, some not. Any solution to the postal service's woes, however, will require cutting this astronomical cost down.
The full link to the report is here: Link
I agree fully with you that the postal service provides a great service and good value. Unlike other commenters, my overall experience with USPS is very positive.
I wish you guys the best of luck in fixing its problems (Our own NeatoShop is a big customer of the postal service).
I feel bad for the USPS; people want them to turn a profit but if they do things to help them do that--reduce delivery schedules (3 days a week would be fine in most cases), close some offices, etc, people get mad and the government gets involved.
Same here in Canada - once a week would be fine. Preferably the day before the recycle truck comes by.
Most of the window workers are either morons or self-appointed tyrants, which is hilarious considering a teenager who works at McDonalds has enough skills to do their jobs.