Give DeJoy a chance to reform the postal system

If you sent a letter across town on Friday, it may not reach its destination until today. That’s because the US Postal Service made changes since October 1 that are slowing down the mail. While we are not enthusiastic about delays, we welcome this news as evidence of the reform of an agency that urgently needs to adapt to the current economy.

According to Postmaster General Louis DeJoy’s strategic restructuring plan, it will take up to a day longer for premium mail to reach its destination, although the additional time is not consistent across the country. According to an analysis by the Washington Post, the largest delays will occur west of the Rockies and in some parts of Florida and southern Texas. In DFW, customers can expect service to be around half a day slower than in the past.

The plan is part of DeJoy’s efforts to keep the postal service solvent, which is no easy task. The agency faces a projected deficit of $ 160 billion over the next decade. For fiscal 2020, net operating loss was $ 3.6 billion, up $ 409 million from the previous year, according to an April Postal Regulatory Commission report.

Some of the financial pressure USPS faces is out of its hands. It does not receive any tax money and is not allowed to set its own prices. Additionally, the Postal Accountability and Enhancement Act of 2006 required it to pre-finance 75 years of sick pay for retirees in 10 years.

Any company confronted with such a financial bottleneck would have long since taken the Pony Express route. It only makes sense for DeJoy to use the management levers that are still available to him. Delivery times are great.

DeJoy is rejected by lawmakers on Capitol Hill, saying the changes will drive customers away and undermine the agency’s credibility. They are joined by a group of 21 attorneys general led by Pennsylvania and New York. In our view, it is a little late for these concerns. The USPS has established itself alongside the automotive department as a figurehead for bureaucratic complexity and poor customer service. And to be honest, the Post’s monopoly on cheap letter delivery is a major driver of its customer base.

When DeJoy’s plan works, the service increases reliability. The agency has not met its internal standard of 96% punctuality in nearly a decade. According to the Post report, only 86% of the two-day mail and 58% of the three-plus-day mail arrive on time. DeJoy is trading speed versus reliability here, which could regain some customer trust in the long run.

This is an industry that has seen fundamental upheavals in the past few decades. Congressional restrictions and competition from companies like FedEx, UPS, and Amazon have undermined its business model.

Americans will have to adapt, especially older Americans and those who depend on the mail for critical things like medication.

DeJoy isn’t exactly an inspiring figure. He is currently being investigated for campaign funding. But the USPS is long overdue for an overhaul, and they are taking action. If we need to send these Christmas cards out a day early, we are ready to make that adjustment.

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