US Postal Service ends for Saturday deliveries

US Postal Service ends for Saturday delivery

The Office U.S. Postal (USPS, for its acronym in English) will no longer deliver first class on Saturday, according to CBS News. The company will eliminate the plan in August 1st 2013, every first class mail, which includes almost all letters, invoices, business cards and brochures – will only be delivered Monday though Friday.

Packets express and priority mail (priority mail) will continue to receive on the weekend. The change will mark the end of the weekend deliveries for the first time in 150 years.

The USPS is going through a giant financial sinkhole and has many daily losses caused by a decline in customers, who use private companies for their postal transactions, and for about rising costs. The company lost $ 41 billion in the past six years, according to CBS News. With the reduction of first-class mail to five days a week, the company, which is limited by federal regulations and can not make decisions without the approval of Congress, aims to save $ 2 billion a year.

Postmaster General Patrick Donahoe is expected to say that 7-of-10 Americans support ending Saturday delivery as a way for his agency to cut costs. Last year’s losses were due mainly to a requirement to put billions aside to cover future health benefits for retirees. The Postal Service is the only federal agency, which has the requirement, and postal unions say the financial problems would disappear by ending the mandate. Congress failed to take up the matter before adjourning in the last session.

While three top Republicans on postal oversight panels said they support the move, Representative Jose Serrano, a New York Democrat on the House Appropriations Committee, said it would be illegal. Frank Lautenberg, a New Jersey Democrat who heads the Senate appropriations subcommittee with jurisdiction over the agency, said it “circumvents the will of Congress” and the National Association of Letter Carriers union’s president said Donahoe should resign.

“It’s an assertion of leadership on the postmaster general’s part: ‘We’ve got to do this or we risk destroying the enterprise,’” said Rob Atkinson, president of the Information Technology and Innovation Foundation.

Meanwhile, the Postal Service is undergoing a major restructuring of its operations. Mail processing facilities in Wausau, Eau Claire, La Crosse, Portage, and Kenosha are among those scheduled to close. It could happen after April, but officials have not given specific closing dates.

Large postal customers such as EBay Inc. and Amazon.com Inc. won’t be hurt by the change because they mostly ship packages, said Gil Luria, an analyst at Wedbush Securities Inc.
“I think this could actually increase the opportunity for EBay and Amazon to expand their same-day delivery pilots,” Luria said in an e-mail.

Netflix Inc., the video delivery service with 8 million paying U.S. subscribers, got 50 percent of its fourth-quarter operating profit from its DVD-by-mail business while Chief Executive Officer Reed Hastings tries to speed a transition to distribution by online streaming.
This year, DVD service will account for 20 percent of revenue, with the figure dwindling to 10 percent by 2015, said Michael Olson, an analyst with Piper Jaffray Cos. in Minneapolis.
“In other words, in two years DVD by mail will be even more of an afterthought than it has already become,” he said in an e-mail.

Netflix Inc., the video delivery service with 8 million paying U.S. subscribers, got 50 percent of its fourth-quarter operating profit from its DVD-by-mail business while Chief Executive Officer Reed Hastings tries to speed a transition to distribution by online streaming.
This year, DVD service will account for 20 percent of revenue, with the figure dwindling to 10 percent by 2015, said Michael Olson, an analyst with Piper Jaffray Cos. in Minneapolis.
“In other words, in two years DVD by mail will be even more of an afterthought than it has already become,” he said in an e-mail.

President Barack Obama’s budget proposal last year called for cutting one day of mail delivery each week. The White House still supports changes including cutting a day of delivery that it released in late 2011, White House spokesman Jay Carney said yesterday.
Six-day delivery hasn’t been universal around the globe. Canada delivers five days a week, Australia delivers five days a week in most areas and as little as twice weekly in some, and New Zealand announced a three-day delivery schedule this year.
Americans, by an almost 4-1 majority, supported ending Saturday mail delivery in a 2011 national poll of registered voters by Quinnipiac University in Hamden, Connecticut.
Cutting Saturday delivery doesn’t eliminate the need for Congress to act to cut more costs, said James O’Rourke, a University of Notre Dame management professor.
“This is the first salvo in what will be a long and repeated series of exchanges between the Postal Service and the Congress,” he said in an interview.

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