Anybody know who this nimrod is?
Give up?
Meet U.S. Postmaster General John E. Potter. In the picture above, he was telling the United States Congress that his agency came up $2.8 billion short in 2008. That’s a hell of a lot of Christmas cards. I mean, Jeebus! I know the number doens’t sound like much since it doesn’t have a “trillion” in it, but the upshot has a real air of austerity about it.
Here come the job layoffs (the first in postal history). And another increase in stamp prices. And talk of going to a 5-day mail delivery week for the first time. And, of course, the massive salary and benefits increase for one John E. Potter, making his pay package twice as rich as President Obama’s.
Whaaaaa???
Naturally. During his Congressional testimony last month, Potter magnanimously offered to freeze the pay of postal executives. But no matter, writes The Washington Times this morning, since he’s already seen “40 percent in pay raises since 2006, a $135,000 bonus last year and several perks usually reserved for corporate CEOs.” The Times continues:
Mr. Potter’s compensation also included perks usually reserved for corporate executives, like $69,253 in security. He and other top postal officers are eligible for perks such as life insurance premiums, parking, spousal travel and airline club membership, the records show.
The board of governors also disclosed that it awarded Mr. Potter $135,041 in “pay-for-performance” and incentive payments for his “effective leadership during the difficult economic challenges of 2008.”
Now, I know the CEOs of FedEx and UPS make gazillions more than this dweeb. But remember: They don’t preside over government monopolies. And grains of truth from the Newman character on “Seinfeld” don’t resonate with every single one of their customers
My personal theory about the Post Office’s recent slide? I blame this TV commercial.
Didn’t the wizard Potter realize that mailing yourself across the planet is a recipe for asphyxiation and wrongful-death lawsuits? I bet that’s where the $2.8 billion went. I just bet.
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I must admit I am confused. I thought pay for performance meant you must perform your job well. How can one receive 135K in performance perks when they lost 2billion? Can someone get me a job there? I know I could “help” them loose some more money, and I would only ask for 100K. Think of the savings.
“the CEOs of FedEx and UPS… don’t preside over government monopolies”
Umm, help me out here. USPS has competition from FedEx & UPS and it’s STILL a monopoly? Please explain.
And while you’re explaining that, clue me about rate-setting. I bet it’s cheaper to ship a box from NYC to Beverly Hills by UPS, but try shipping it to East Jesus, AR instead. UPS adds a boondocks delivery surcharge (and it’s not small bucks!), but the post office can’t?
Just wonderin’. (And no, I don’t work for the postal service.) (Nor does anyone I know.)
I’ve been wondering for years why post offices seemed to all have giant plasma televisions which were installed back when the cost per screen was in the $5,000 range. They ran ads for the postal service as I recall. So people who were already in the PO, using the services that were being advertised to them on one of the most expensive methods of in-store display imaginable.
Yeah, great stewardship of resources there Mr. Postman.
We all know the Postal Service’s problem is declining mail volume due to email, faxes, etc.
So….why the heck have there been no layoffs???!!!
The whole government has turned into nothing more than a do-nothing jobs machine.
“Now, I know the CEOs of FedEx and UPS make gazillions more than this dweeb. But remember: They don’t preside over government monopolies.”
Q: USPS has a “monopoly,”, huh?
A: Yes! A government monopoly. That’s why it doesn’t make sense to compare the executive compensation.
Q: FedEx and UPS and USPS all ship things?
A: Sure.
Q: They have comparable prices?
A: I guess.
Q: They all three spend money on advertising?
A: Yes.
Q: People can decide which shipper they want to use?
A: Yes.
Q: And this advertising is meant to induce customers to choose them rather than someone else?
A: Of course.
Q: These folks are market competitors?
A: Sure, but USPS is still a monopoly because it’s government-run. It’s being propped up by the government.
All of which is just my way of thinking through this. I disagree that USPS is a “monopoly” in the true sense of the word. Monopoly means customers have nowhere else to go.
Definitely a good question whether a government-subsidized exec is worth twice as much as the President, though.
Hey, I know!
Let’s put gub-mint in charge of everyones’s healthcare! And let’s have gub-mint decide what’s good for us! And take control of everyone’s pensions! And how to live our lives!
K’ain’t git enuff gub-mint! Gub-mint! Gub-mint! Gub-mint!
I guess you ignoramuses don’t know that the USPS has a legislated monopoly on FIRST CLASS mail. Where they don’t have a monopoly, i.e. packages, they have retained less than 10% market share–for obvious reasons.
The post office has a government-guaranteed monopoly in *first class mail.* (In fact, it’s so strict that FedEx and UPS aren’t even allowed to deposit packages in your own mailbox.) And because the post office already has the infrastructure in place to deliver first class mail, they can offer huge discounts on bulk mail, non-profit, etc.
Yes, it’s wonderful that the USPS can deliver mail all over the country for 42 cents, more or less reliably. And I guess it’s nice that they maintain branches in places that are essentially ghost towns. But if competitors were allowed to play in that sandbox, I’ll bet the service and prices would be greatly improved.
The USPS is a monopolist at least because it is against the law for any competitor to charge less than the USPS for the same mail delivery services.
If you don’t think there is a monopoly, call FedEx/UPS to get their first class letter rates.
@William: “I disagree that USPS is a “monopoly” in the true sense of the word. Monopoly means customers have nowhere else to go.”
Well … If you want to send an overnight letter for 15 bucks, you have lots of choices. Ditto for a 4-pound package. But if you want to spend less than 50 cents to send a (physical) piece of paper from New York to Hawaii, good luck convincing FedEx or UPS to take on that chore.
And it’s not that they wouldn’t like to. It’s that they’re not allowed to compete with USPS in the marketplace of First Class Mail.
Monopoly? Yup.
Dude. I’m a Southerner, and while some of us might talk that way, we don’t say that, because most of the people *I* know HATE the government. Even if they’re federal employees.
@William: What the neighbor’s dog leaves on the lawn is worth twice as much as THIS president.
The USPS, as far as my limited knowledge permits me, is a monopoly because it’s the only organization I’m aware of that will handle mail. Like, real mail. Like, stamps and envelopes mail. (Remember that stuff, kids?) Try taking a postcard into a UPS sometime. They won’t like it. You can’t pick who comes to your mailbox and you can’t buy stamps from anyone else.
I’m just curious why the post office hasn’t really been doing anything to keep up with the times (other than hiking up postage stamps, which just makes me find ways not to use snail mail, which makes them bump the price. Two quarters for a stamp? Waxing on ridiculous, isn’t it?)–I mean, it’s been over a decade since we knew that e-mail was going to be putting down the volume of stuff going through the post office, but it’s not like they’re doing much to keep up with the times. I mean, I hear you can order packing materials online from their site and get someone to come to your house to get stuff, but I’m talking stuff like really keeping up with the times! Why don’t they have USPS e-mail addresses for sale? Haven’t you always wanted a .gov e-mail address? Admit it!
They have a house-to-house (I forget the proper term, retail perhaps?) monopoly. If aunt Elma wants to send you a sweater for Christmas, FedEx, et al., compete with the USPS for her business. But if she is just sending you a Christmas card with a check, then USPS is the only way. (Well, I guess she could overnight it–but for ordinary “mail” the commercial shippers are forbidden to compete.)
“Umm, help me out here. USPS has competition from FedEx & UPS and it’s STILL a monopoly? Please explain.”
The Postal Service has a monopoly on the delivery of first class mail. Period. No other company or entity can deliver mail to your home mailbox.
Satisfied?
I guess I will be stocking up on more “Forever” stamps. USPS is another place where some government workers work less and get paid more. Others, like my friend, was tired of the BS that went on and left. DHL here is closing up and 8000 people are losing their jobs. Obama should be as upset with Potter’s pay as he is with the big CEO’s who are driving their businesses down the tubes. And I agree, no pay for performance bonus if you are looking at a 2 BILLION dollar loss and having to raise prices and lay off people. Trim from the top.
I ship parcels nearly every week with USPS priority mail. It is roughly 60% of the cost of FedEx or UPS ground rates and they are delivered very reliably within two days almost without fail.
Can’t any of you imagine the enormous logistical undertaking and expense of visiting every single business and residence in the United States every single day?
BTW, the cost of a first class stamp has pretty much remained constant when adjusted for inflation. When a new Chevy cost $1800 and a suburban house cost $20,000, stamps were 4 cents.
True story. My friend Wally D. caught his girlfriend in bed with the mailman. Man that was funny.
I wonder what she was charged for THAT.
Pasta, I suppose the breakfast was her idea? Old joke.
If you want to see a postal crisis, watch the very end of the Christmas commercial. That LLV needs front shocks so bad…
The financial wizardry that entitled the PMG to a megabonus was the parcelling out of budget constraints in such a way that virtually no revenue-based executive, right down to rural postmasters, could have possible met their goals for the fiscal year. Managers who had successfully scrambled to keep revenue equal to the year before–note, this is income, not cuttable expenses, in an era of declining letter mail–were handed a business plan for a 15% increase, guaranteeing that the whole pool of bonus-based salary was reserved for HQ. That right there is how you get yourself a big bonus. USPS is run just like a business.
I had no idea the U.S. had delivery on Saturday. Why not cut that day out?
Thanks for writing this…this kinda really pisses me off. Only problem is, now I’m pissed off and I have no reprieve! Off to go skewer celebrities now…*stab*
Two years ago the guy who plows our neighborhood managed (in addition to his normal function of removing the top layer of snow, depositing it as a 3 foot frozen bank of semi-concrete at the end of my driveway to block my cars in) to completely demolish my mailbox. Yeah, I know, those Homeowners Association dues are a great return on investment.
I didn’t exactly make fixing it my top priority, and about a week later our postman (who is actually a chick – so, postwoman? Postperson? See? This is why I hate political correctness) comes banging on my door to tell me that I need to put a new box up. For posterity, I would like to give everyone the gist of this conversation:
“Why should I fix it?”
“You can’t get your mail without it”
“I don’t need mail.”
“How are you going to pay your bills?”
“I do it online.”
“What about coupons?”
“Too lazy to use ‘em.”
“What about holiday cards?”
“Meh – I’m in my mid-twenties, they stopped sending cash in those years ago.”
“What about presents?”
“Fed-ex.”
“Do you realize how difficult you’re making this?”
“Do you realize that with your annual budget we could buy everyone in the country a lap-top and make you obsolete overnight?”
“Jerk.”
“Can’t any of you imagine the enormous logistical undertaking and expense of visiting every single business and residence in the United States every single day?
BTW, the cost of a first class stamp has pretty much remained constant when adjusted for inflation. When a new Chevy cost $1800 and a suburban house cost $20,000, stamps were 4 cents.”
Yes, Tom, and THAT is why the USPS is losing money at an alarming rate. Its business model is, as you point out, horribly inefficient and expensive. And the price it charges has not kept up with its costs.
Any private-sector business, unless it was run by idiots, would correct this problem by adjusting its prices. But the USPS is a government monopoly run by bureaucrats, so what do they want to do? Keep the prices the same, but give the customer LESS for his money. In the private sector, that would be suicidal, but when you have a monopoly, you can do that, because your customers can’t leave, right?
Except that the USPS only has a monopoly on First Class mail — envelopes containing letters and checks. And that’s where the USPS has been losing customers most rapidly in recent years, as they switch to using e-mail for letters, fax for signed documents, and online payment instead of checks.
What has kept USPS alive in recent years was package shipping. But the USPS isn’t a monopoly in that market; customers can switch to UPS or DHL or FedEs if they want.
So a screw-the-customer approach is unlikely to get the USPS out of its current predicament.
re: the song in the commercial.
If you want to hear a real good tune about mailing yourself to an alleged loved one, check out “The Gift”, from the Velvet Underground LP “White Light White Heat.”
As someone who’s had mail stolen–possibly by postal workers, given the circumstances–I could just about entirely deal with no USPS whatsoever. I pay bills online, we have direct deposit for payroll checks, I keep in touch w/people via e-mail, yada yada. The only thing that usually shows up in my mailbox is junk mail.
I have sent 1 piece of mail in the past year. I even use electronic gift cards for people far away (or else hand the person a card).
USPS needs to be a better competitor in packages and in the electronic marketplace. But they aren’t, they rested on their laurels (first class mail) which is fast dwindilng away.
UPS and FedEx can’t send first class mail? Pretty soon that won’t even matter.
Here’s a way for the post office to keep from raising the stamp rate every two years. Raise it in 5 cent increments and stop this frigging penny crap. If you want to raise it 2 cents,rais eit 5 and come see me again in 5 years instead of two.
My thoughts on how to slash some of the budget in regards to federal spending. All elected officials will no longer recieve free medical, free dental, free housing or free transportation costs. Nor will anyone be allowed to retire with all these benefits, never was political office created to be a life long career. All clerical staff will be drawn from a pool of people already employed by the governement and other staff will be limited to volunteers and those the politician hires themselves out of their own pockets. Any bills or amendments brought up in the Senate or House to over ride this rule will result in the person submitting it being dismissed from public office.
Perhaps the USPS can stop quite a bit of overtime if they stopped offering discounted rates for all the junk mail we receive. In my neighborhood, Tuesday is Junk Mail Day, meaning the carrier has to stop at every single house even if they didn’t get a single thing addressed to them.
But guys, if they got rid of the post office, how would I get my Entertainment Weekly every week?!?
The reason the post office increases the price of stamps a little every year is that the law that allowed the Post Office to retain earnings states that prices are only allowed to increase by the rate of inflation each year. Junk mail subsidizes first class mail and is the only thing keeping the USPS afloat. Their market is shrinking, their major costs are unionized labor and fuel, and they are forbidden from increasing their prices. They are in big trouble and the PMG’s salary is a drop in the bucket.
Maybe if they cut everyone’s salary and fired the unproductive people (*cough* half the post office) things would go better! I’m not willing to give up my Saturday because I practically live in one of those “ghost town post office” areas and barely get all my mail everyday to begin with. How else do you explain three days with nothing and then a flood?
http://abcnews.go.com/video/playerIndex?id=6900288
The last 20 to 15 seconds of this video are the important part.
But the reason the Postmaster General gets paid so much is because the CEO of FedEx gets paid so much. The answer is obvious. Reduce the pay scale in the private sector.
Rocko,
That is called socialism. When you start telling people how much they are “Allowed” to make then you are basically nationalizing a free market economy. Sorry but I do not want to live in a country like Venezuala or China where the government tells me what to do every day. That is against the Constitution and the basic tenants of American society and culture.
I am very familiar with the mail/ship business at retail level. There are a couple of things post office could do, in recognition of current market.
First, they need to raise their Priority and Express mail rates substantially – because of FedEx and UPS high rates, they have plenty of room to be aggressive in raising. Second, raise Parcel Post price for packages but keep it well below Priority. With Parcel Post, they should offer, on average, a 2-week delivery promise – customers get a cheap service but it just takes longer. Third, for First Class, leave rates as is for the first 2 ounces, raise it for weights over. Finally, the Post Office should quit giving boxes and envelopes away for free. All items should be bought by consumers.
Giving items away for free is not a sustainable business practice and it is not a sustainable energy/environment practice. If the Federal government were really serious about CO2 emissions and energy, they would not only forbid the Post Office from giving away free cardboard and Tyvek, they would forbid the private carriers from doing the same.
@Aleric: You’re right. Unfortunately, the recently-railroaded-through spendulus bill is essentially a giant leap toward socialism anyway.
Maybe it’s because I’m an economics retard (English major, right? Math is not my subject!), but as a consumer, I just can’t see how raising prices will help much. Especially since it’s illegal for other shipping companies to offer prices lower than what the USPS does. I already cringe and try to find a way not to have to use the post office because I don’t like the present rates; bumping them up higher just sounds to me like never sending packages again.
Let’s cut the damn postmaster’s salary to, I don’t know, something more proportionate to what he DOES for a living and stop paying people who don’t do anything productive before we start manic price raising. Or put the prices up but make it legal for other shipping services to offer lower prices, thus inspiring good old fashioned American competition.
Man. Who knew a post office story would generate so many comments.
You know what really sucks? Trains.
**Nerdlingers throwing their HO scale train cars at me.**
The PMG has more chins than a Chinese phone book!
Dodge Is said:
“Finally, the Post Office should quit giving boxes and envelopes away for free. All items should be bought by consumers.”
Don’t they do that already? My post office charges me for every envelope, box, sticker I use there…and not just the ones with Mickey Mouse on them.
And if you’re talking about charging for Overnight or 2-Day boxes and envelopes, why should they? FedEx and UPS don’t charge for those, do they?
What about the fact that the post office’s Express Mail overnight service is guaranteed to be delivered in 2 days? Maybe they should fix that.
Neither snow, nor rain, nor heat, nor gloom of night stays this courageous courier from the swift collection of his apportioned bonus.
i know where they can start the layoffs…there are some rude and surly postal workers at my neighborhood post office that act like they don’t want their jobs…