In the past several years, the Postal Service has aggressively cut costs across the board to match steep declines in mail volume and revenue due to changes in mailer behavior, primarily in the diversion of communications, bills, statements and payments to electronic media. While the Postal Service reduced costs by an unprecedented $6 billion in fiscal year 2009 (which ended Sept. 30, 2009), USPS saw a loss of $3.8 billion after legislation deferred its 2009 payment to the Retiree Health Benefits Fund, and expects heavy losses again in 2010. Five-day delivery operations will help the Postal Service bring costs in line with its reduced revenues, provide much-needed financial stability and support maintenance of nationwide universal delivery service.
The Postal Service is currently required by Federal law to deliver mail six days a week in fiscal year 2010, but not beyond then. Implementation of a five-day delivery schedule in fiscal year 2011 would be contingent upon Congress not enacting legislation to prevent such a change. In addition, the Postal Service must file a request for a non-binding advisory opinion from the Postal Regulatory Commission. If the Postal Service implements five-day delivery, it would take effect in fiscal year 2011 (Oct. 1, 2010, to Sept. 30, 2011).
Saturday deliveries to street addresses would end with the implementation of five-day delivery operations. Saturday was selected as the day delivery would be eliminated because it is the lowest mail volume day of the week and more than a third of U.S. businesses are closed on Saturdays. Most businesses and households have told the Postal Service that it would be the least disruptive day to their businesses or lives. In addition, it is more efficient for the Postal Service to operate five consecutive days that coincide with the traditional work week and not deliver for two consecutive weekend days than to not operate one day during the business work week.
Nothing. The Postal Service operates independently of taxpayer support, and is self-funded through the sale of its products, services and postage — so there is no cost to U.S. taxpayers. Five-day delivery operations will help the Postal Service bring costs in line with its reduced revenues and support maintenance of nationwide universal delivery service. The Postal Service conducted a study to determine the costs and benefits of moving to five-day delivery.
Go to Locate a Post Office to find the hours of operation for your local Post Office and to confirm current Saturday hours. Post Offices will remain open on Saturday following implementation of five-day delivery operations.
The Postal Service has been drastically cutting costs since 2006 to reduce its operating losses. These losses were due to significant revenues losses resulting from reduced mail volume. Specific cost-cutting measures include:
Reducing USPS career employees from more than 800,000 in 1999 to under 600,000 career employees in fiscal year 2009 through attrition. This has resulted in a reduction of 20 percent, or 150,000 jobs, in the last three years.
Reducing costs by $6 billion, or approximately 8 percent of total costs, in FY 2009.
Adjusting letter carrier routes to reflect diminished volume.
Freezing salaries of all Postal Service officers and executives in FY 2009.
Reducing staffing levels at postal headquarters and area offices by at least 15 percent and eliminating six districts and one area office.
Selling unused and underutilized postal facilities.
Closing two processing and distribution centers.
Adjusting Post Office hours to better reflect customer use.
Consolidating mail processing operations.
Asking Congress for and successfully deferring the 2009 annual prepayment of future retiree health benefits.
The Postal Service has implemented a growth strategy based on pricing and product innovation to offer more value to customers. This includes pricing incentives for package shippers who pay online. USPS has made it more convenient for retail customers by deploying more than 2,500 Automated Postal Centers in Post Offices. Postal Facts 2009 provides additional information about the ways the Postal Service is doing business more efficiently and effectively.
The Postal Service conducted a comprehensive study on the financial benefits and operational plan for implementing five-day delivery operations. Input was sought and obtained from business and residential customers. Their input was considered and is reflected in the operations plan for five-day delivery.
When five-day delivery to street addresses is implemented, mail will be delivered to CMRAs Monday through Friday. Mail intended for a CMRA with a Post Office Box address (including Caller Service Post Office Box numbers) will be delivered Monday through Saturday.
When five-day delivery is implemented, properly addressed Post Office Box mail will continue to be delivered Monday-Saturday. This includes mail addressed to Post Office Boxes and Caller Service numbers. To ensure delivery to a Post Office Box, the Post Office Box number must be on the line immediately above the city and state in the address of the mailpiece.