USPS Shipping Fail

We may earn a small commission from affiliate links and paid advertisements. Terms

USPS actually claims not to be a government subsidized entity...

Although I don't know how that is possible, since they use tax dollars to fund operations. They just do so in a manner thats similar to money laundering.
 
Got the package today, along with an attached note from a postmaster in upstate NY. Guess it got stuck there for almost a week before being shipped out again.
 
I'm pretty sure the USPS has been operating at a loss for many years:

Privatization may solve the USPS's money problems - Aug. 3, 2009

NEW YORK (Fortune) -- The U.S. Postal Service is losing money so quickly you'd think it somehow got mixed up in the subprime mortgage business. It's on track this year for an operating loss of between $6 billion and $12 billion, debt surpassing $10 billion, and a $1 billion cash shortfall. For any business, those are some ugly numbers.
Click to expand...
 
Post Master Generals have been trying to fix the issue.

They asked to jack rates (because they're ridiculously low - despite what anyone wishes to believe about today's transportation costs. Suck it up, it costs more than $5.00 to have your $2.00 widget delivered to your door) and Congress rejected their proposal. They go through a biannual rate increase every year and that still hasn't put them in line with inflation and fuel.

They asked to cut Saturday or Tuesday delivery days. Congress is still sitting with a thumb up their butt.

They proposed only delivering to consolidated delivery locations. I.e., everyone's mailboxes would be together, rather than at their own front door. Rejected

They asked to close numerous post offices, consolidation centers and sorts. Some were closed but most were protected by union rights.

They have contacts with UPS, FedEx, and DHL to bring additional b2c business into the network to help carry the fixed costs. Its just not enough.

The fact that people piss and moan about a stamp costing less than $0.50 is ridiculous. Go to the UK. Its a much smaller country and the postage is more than double. There's something wrong with that equation. Its the fact that we as Americans suck at finances.
 
totalburnout said:
Post Master Generals have been trying to fix the issue.

They asked to jack rates (because they're ridiculously low - despite what anyone wishes to believe about today's transportation costs. Suck it up, it costs more than $5.00 to have your $2.00 widget delivered to your door) and Congress rejected their proposal. They go through a biannual rate increase every year and that still hasn't put them in line with inflation and fuel.

They asked to cut Saturday or Tuesday delivery days. Congress is still sitting with a thumb up their butt.

They proposed only delivering to consolidated delivery locations. I.e., everyone's mailboxes would be together, rather than at their own front door. Rejected

They asked to close numerous post offices, consolidation centers and sorts. Some were closed but most were protected by union rights.

They have contacts with UPS, FedEx, and DHL to bring additional b2c business into the network to help carry the fixed costs. Its just not enough.

The fact that people piss and moan about a stamp costing less than $0.50 is ridiculous. Go to the UK. Its a much smaller country and the postage is more than double. There's something wrong with that equation. Its the fact that we as Americans suck at finances.
Click to expand...

It's the veil or curtain that is placed between the people and the process.

Everyone sees mail delivered and they know how much they pay for it. What they don't know is how much it really costs.

While I agree with most of your assessment don't forget:

Unions are expensive

Governmental agencies are naturally inefficient. If you pimped the USPS out to UPS, they would have it leaned out and profitable in a few years. They'd kick the unions, tighten the routes, and charge reasonable rates.

UPS drivers make a good salary too. The package handlers and sorters get benefits but they are paid a fair market wage. In the $10-$12 an hour realm. Whereas postal sorting employees probably start at $15+ and just keep ticking up from there. Add in the union pension contributions...Labor is expensive...
 
UPS is almost all union. Package truck drivers make a damn good salary! Believe me. My brother has only driven one for a few years now and he's already making really good money. My uncle retired in his 40s and has a real nice chunk of change to play with. The semi drivers are the big buck employees though. $30+/hr starting. I won't even start on the pilots' salaries.
 
Haha yea. My brother told me they have ridiculous standards. They turn away old Air Force pilots and such on a regular basis because even they dont meet their standards all the time.
 
UNDR8D said:
It's the veil or curtain that is placed between the people and the process.

Everyone sees mail delivered and they know how much they pay for it. What they don't know is how much it really costs.

While I agree with most of your assessment don't forget:

Unions are expensive

Governmental agencies are naturally inefficient. If you pimped the USPS out to UPS, they would have it leaned out and profitable in a few years. They'd kick the unions, tighten the routes, and charge reasonable rates.

UPS drivers make a good salary too. The package handlers and sorters get benefits but they are paid a fair market wage. In the $10-$12 an hour realm. Whereas postal sorting employees probably start at $15+ and just keep ticking up from there. Add in the union pension contributions...Labor is expensive...
Click to expand...

UPS has the top 5 largest workforce in America, behind Walmart and a few others. They have the single largest amount of union workers employed under their umbrella. UPS is pretty much the whole reason why the teamsters still exist.


For what its worth, I'm knowledgeable about transportation because I was the guy who was set up to run sales in NJ for UPS in about 5 years - before I left. :)
 
double0Si said:
UPS is almost all union. Package truck drivers make a damn good salary! Believe me. My brother has only driven one for a few years now and he's already making really good money. My uncle retired in his 40s and has a real nice chunk of change to play with. The semi drivers are the big buck employees though. $30+/hr starting. I won't even start on the pilots' salaries.
Click to expand...

Top wages for a senior driver are $38.00. That doesn't include saturday pay, holiday pay, or overtime where drivers can be earning two times that rate.

The days of drivers retiring millionaires are over. What used to happen was that employees were entitled to "gold shares" before the company went public. Gold shares had an average rate of return of 18% each year - think about that - thats ridiculous.

Before the company went public, these shares were converted to common stock or preferred shares. At the time of the IPO, the share place doubled, split, and doubled again. Effectively quadrupling whatever money the person had in stock.

Add to that lump sum payment the fact that UPSers (both drivers and management) used to all retire with pensions and thats why you see UPSers that are retired at 55 as millionaires.

Those days are gone - believe me. As a 25 year old, there was no pension left. They cut my 401k during a down year. Base salary for sales was good but I could have done much better at a more sales oriented transportation company like DHL. It was still possible to make $100k+ - and I did - but I was ranked 18th in the world last year before I left.
 
I know that union renegotiation a little while ago killed a lot of shit. My friend mom is grandfathered in and still gets her annual raise of a buck or more on top of performance raises. And she's been there almost 30 years.
 
"Cost of living" wage increases still take place twice a year. Latest one to happen was in August.

...but you're right, new hires have lesser benefits in the union contract extension that was signed up until 2013.
 
You must log in or register to reply here.
Back
Top