The Postal Service Is a Constitutional Essential Service That Deserves Congress' Respect

The Postal Service Is a Constitutional Essential Service That Deserves Congress’ Respect
By Karen Balent Young
The Postal Supervisor Editor

NAPS members made their annual trek to Washington, DC, for this year’s Legislative Training Seminar (LTS). Their goal was to meet with their lawmakers on Capitol Hill and promote NAPS’ legislative agenda. The Postal Service continues to face financial challenges; Congress must take steps to ensure the agency is viable into the future.

NAPS Executive Vice President Chuck Mulidore greeted delegates Monday morning, March 16 — a day with unpredictable and violent weather forecast, including a chance of tornadoes. “Welcome to DC,” he declared. “We are happy to have you back.”

Mulidore reminded everyone of the importance of SPAC — the Supervisors’ Political Action Committee. “Without SPAC, we can’t do any of this,” he offered.

“Contributions from your paychecks and annuities, as well as the sale of our recent challenge coin, allow us to go on the Hill and make a difference. SPAC also allows us to send you to events in your home districts. Nothing works without SPAC!”

The Capital Band entertained attendees, closing out their musical presentation with each of the Armed Forces’ songs, with NAPS veterans invited to stand during their particular service song. After the conclusion of the musical interlude, Mulidore told delegates it’s remarkable what our country’s service members do.

“The world is a dangerous place,” he said. “Thank you, veterans, for all that you do. The people on the front lines, risking their lives, allow us to be here today. Say a prayer for the men and women who serve and protect us. Our flag flies over the land of the free and home of the brave because of our veterans.”

NAPS Secretary/Treasurer Jimmy Warden greeted members and gave some announcements. NAPS President Ivan D. Butts welcomed NAPS members and introduced former board members in attendance. Warden introduced the current board members.

Butts addressed delegates, affirming the importance of educating Capitol Hill legislators on what NAPS does and what its members do. “There’s a lot being said about mail service in general,” he observed, “what it is and is not doing and should not be doing!”

He reminded everyone the Postal Service is legally required to serve and bind the nation together. “And that’s what you do,” he stressed. “I praise you because you provide that service under some of the most strenuous conditions I’ve ever seen in my years in the Postal Service. I thank you.”

Butts paused his remarks in order to introduce Postmaster General David Steiner. The PMG told NAPS members he was happy to be with them. “I’ve had the chance to go around and meet folks,” he conveyed. “Thanks for leading the organization. And thank you for coming and representing the United States Postal Service.

“You are the front-line leaders who bridge the gap between the plan and the work. You set the tone for performance, safety and the day-to-day experience of our people. Universal service doesn’t just magically happen; it happens because you lead every day in real facilities with real teams with real pressure.

“That’s what the Postal Service is all about and why I thank you for everything you do.”

Steiner told delegates their meetings on Capitol Hill matter, reminding them the agency operates under a framework unlike any other of its size and scale. “We are a national infrastructure with a public mission,” he offered. “But we also are operating in a constantly changing market.”

Steiner said the Postal Service has made a lot of progress over the past several years — investing in the processing and delivery infrastructure with improved capacity and performance, as well as moving mail and packages more predictably, even during peak season.

“Those gains in service are real,” he stressed, “but we have to be honest. We are self-financed and, like most modern businesses, we have to cover our costs through revenue with legislative and regulatory guardrails. We have responsibilities like a federal agency, but none of the benefits.”

Steiner referred to the agency’s continuing systemic losses, but, regardless, the effort will continue to keep improving service because that is foundational — it builds trust, is relevant and drives customer decisions and revenue.

“We will keep driving efficiently because we have to operate responsibly,” he proclaimed. “We cannot cost-cut our way to prosperity; we have to grow. And to grow long-term stability, we have to grow in relevance, volume and value. That means leveraging our assets — the last-mile and retail presence and brand.”

Steiner told delegates the USPS will continue improving its products and customer service, as well as adapting to today’s business values with flexibility and innovation. “We will be open to new revenue opportunities and operating with the agility of a modern enterprise,” he stressed, “and unlock value from the network we’ve built, including the last-mile capacity.

“We can improve operations, reduce costs and improve service. We have done those things, but, as long as the underlying business rules rely on outdated parameters, the path to sustainability is harder than it needs to be.

“We need to be honest and direct; if we do not do anything differently and not get help from outside, we are on a path where cash becomes a crisis. Then, questions become, painfully, how long will employees keep coming?”

Steiner pointed out that, over the past 15 years or so, the Postal Service has lost 110 billion pieces of mail moving through the system. At today’s stamp prices, that is about $86 billion in revenue. “If UPS or FedEx lost that amount, they would have no revenue!” he declared. “No private company takes a hit like that and simply cost-cuts its way to safety. Instead of modernizing rules to match reality, we work under rules that make our jobs harder.

“This is my message. Talk to Congress: If the USPS becomes financially unstable, everyone loses. Every priority becomes harder, every community becomes more vulnerable to disruption — that’s reality, not rhetoric. We lost $110 billion, $86 billion.

“We were sailing along, nice and smoothly, then we got thrown into the water. And instead of getting a life preserver, we got an anchor; rules can pull us under. My job when I talk to Congress this week is help lawmakers understand the difference between criticism and correction; help us to be on the right path. The biggest threats to our future are the structural constraints imposed by outdated rules.”

Steiner outlined his most-pressing actions:

First, modernize the agency’s borrowing authority to access liquidity. The current limit — $15 billion — was set decades ago and has not set pace with current needs and reality. “That is the simplest and most immediate lever Congress can pull for liquidity,” Steiner said. “It buys time without operating on the edge of a cash cliff.”

Second, implement CSRS reform through updated methodology. The current approach is outdated by about 50 years and overstates what the USPS must pay, which drains resources. “This should be grounded in modern practice,” he stressed. “Every dollar unnecessarily drained is a dollar we can’t use to improve facilities, modernize equipment, invest in our workforce and stabilize operations.”

Third, enact workers’ compensation reform to be more like a private employer. “That doesn’t mean cutting pay,” Steiner explained. “It means having the tools to manage claims responsibly and stabilize costs. The current costs deny us the tools any large organization would use and swings dramatically year to year, hindering long-term planning.”

Fourth, impose modern pricing and a regulatory framework. The rigid caps and complex formulas that govern USPS decisions were designed for a different era. The agency is expected to cover its costs, but is restricted in its ability to align costs.

“We need regulatory flexibility that matches today’s reality and pressures,” he reinforced. “If policymakers want universal service and delivery to every address, every day, we can do it, but somebody has to pay for it.”

And fifth, modernize retirement investment options. “We have a system where we are required to invest only in Treasury bills,” Steiner offered. “If we could have other investment vehicles, we could have another $800 billion in our retirement plans. It’s not about risk; it’s about having modern options to match modern obligations.

“None of these ideas are abstract. They directly affect our ability to invest, modernize, compete and protect our universal service obligation. My message is if the institution is viable, improvement is possible. If not, everything becomes harder. I encourage you to focus on common-sense reform that keeps us self-sustaining and strong and benefits our employees, customers and every community that relies on us every day.”