From August to October 2009, Opinion Research Corporation, on behalf of the Postal Service, conducted qualitative focus groups with both consumers and small organizations, and personal in-depth interviews with larger commercial organizations, to gain insights into their reactions to the five-day delivery concept and to discuss the impact it would have on them, as well as how they could adapt.
The Postal Service held a total of 14 focus group sessions in New York, Chicago, Atlanta and Seattle. Six were consumer groups consisting of low-, medium- and high-income customers living in center city, suburban and rural areas. Eight sessions involved small and medium-sized businesses that each had fewer than 100 employees.
The most significant finding from the focus groups was that regardless of whether they were consumers or small commercial organizations, most customers agreed that elimination of Saturday delivery to street addresses would have little impact on them. Most said they would “adapt.”
Businesses of all sizes as well as consumers said they would accept five-day delivery if it were necessary to help the Postal Service achieve financial stability.
Most businesses and consumers would not be willing to accept a significant price increase instead of eliminating delivery on Saturday. They do not see large price increases as a way to ensure the long-term viability of the Postal Service.
Consumers said they would adjust how they used the mail by depositing it Friday or Monday. Most felt they could forego Saturday deliveries at their home addresses as long as Post Offices remained opened. The research showed that consumers have a routine of going to their mailbox first when they get home from work Monday through Friday. Virtually all of them sort their mail the day it is delivered. On Saturday, consumers do not have the same routine and do not necessarily pick up mail from the mailbox and sort it that day. As a result, they said they could adapt to Monday-through-Friday delivery.
Small business customers generally did not consider the elimination of delivery on Saturday to be a major issue. Most said they needed to receive mail — invoices, contracts, proposals and checks — Monday through Friday to run their businesses. Many whose businesses are open Saturday said they do not do anything with the mail until Monday, so elimination of Saturday delivery would have no impact. Others who would be impacted said they would adjust their schedules.
Larger commercial mailers also had a regular routine. However, the routines were not fixed by specific days of the week, but rather by specific days of the month.
In general, customers were willing to accept elimination of Saturday delivery once they were convinced that it would make a difference and was more than a temporary solution. Most see the proposal as a fundamental business decision, and recognize that it is necessary due to the Postal Service’s current financial situation. Nearly everyone said they would like to see accompanying improvements in customer service to offset the loss of delivery service.
When given a choice between five-day delivery and a 10 percent price increase, virtually all customers chose five-day delivery.
Generally, national and premier account holders were receptive to the proposal. They identified specific situations and applications where it would present challenges, but on the whole, after hearing the proposal and the rationale for it, customers accepted it as necessary for the Postal Service’s financial viability.
Reactions among these customers included:
Customers involved in remittance and publishing expressed unique concerns:
Commercial customers’ general plans to adapt to the five-day delivery week varied by industry and how they use the mail. Virtually all said, however, they would find a way to adjust.
As might be expected, some customers anticipate some shift of communications to the Internet.
National and premier accounts were asked about the impact of specific aspects of five-day delivery on their operations. Most are not open on Saturday and would experience little impact. Responses from others varied so greatly that no commonalities were found.
American Postal Workers Union (APWU)
The APWU is opposed to five-day delivery. According to the union, the consequences of the proposed change far outweigh the expected monetary benefits associated with delivery reduction. APWU views six-day delivery as “deeply ingrained” in American culture and the role of government in communications. Its view is that, if five-day delivery is enacted, history will record it as the first step in dismantling the United States mail system, and that any service organization that reduces service invites its demise.
APWU further maintains that a reduction of delivery assumes that the economy will not recover and mail volume will not return as a viable medium for commercial activities.
National Association of Letter Carriers (NALC)
Describing his opposition to five-day delivery before a U.S. House of Representatives subcommittee, NALC President Fred Rolando said, “Termination of six-day delivery would open the floodgates to all other delivery services in America to fill the void, resulting in a continual diminution of postal service, especially in the cost-effective areas of package and specialty delivery in which lies the economic future of the Postal Service.”
He said there would be no letup in the union’s efforts to preserve six-day delivery, adding “I believe (five-day delivery) is a shortsighted response. I think (postal managers) are going down a totally dark road to respond to the crisis.”
“What we need to do is expand the business,” Rolando told the House subcommittee. “You can look at going from six- to five-day, and if you need some money next year, you go to four-day, to three-day, to two-day. It’s just dismantling.”
In his testimony to a Senate subcommittee, Rolando said, “We do not need to destroy the Postal Service to save it.”
National Postal Mail Handlers Union (NPMHU)
The NPMHU says it opposes any reduction in delivery frequency that would negatively affect service, or cost the Postal Service a loss of business to competitors.
National Rural Letter Carriers’ Association (NRLCA)
NRLCA believes moving to five-day delivery is not the appropriate response to the recession and the Postal Service’s current financial condition. Reducing the number of delivery days will hurt, not help, the Postal Service’s bottom line, according to the NRLCA.
Two issues were of particular concern. First, the rural craft complement of leave replacements “will be decimated” and those remaining “will have little incentive to continue working for the Postal Service since their opportunities for work will be significantly reduced.”
NRLCA also says Postal Service mail volume and revenue streams will decrease, “likely substantially,” if there is a move to five-day delivery. These decreases will mean sharp pay reductions for rural carriers and the possibility of massive route realignments. The impacts on rural carriers’ salaries and retirement benefits are incalculable, according to the NRLCA.
National Association of Postal Supervisors (NAPS)
The NAPS opposes plans to reduce delivery service. While it is certainly true that reducing deliveries to five days will result in significant savings in labor costs, it goes against every provision of service that the Postal Service contends should come first, according to NAPS.
NAPS is concerned that a move to reduce delivery days would ultimately allow a relaxation of the statute that now gives the Postal Service virtually exclusive access to the mailbox.
The association expressed doubt that a complete study of the impact of five-day delivery could be made within the time period set for the process. NAPS also did not believe a cross-functional team of Headquarters executives and staff members “isolated from the day-to-day operations in the field” could perform an adequate study without full participation of all stakeholders.
NAPS was also concerned with “such little time for comment and the lack of an opportunity to provide feedback to what we expect will be the anticipated result of the Headquarters team’s work — that five-day delivery is a great plan — it is impossible for our organization to say that this would be a good alternative to reduce costs.”
National Association of Postmasters of the United States (NAPUS)
During the summer of 2009, NAPUS expressed opposition to the five-day delivery plan partly because of the study itself. The 60-day timeframe for studying the issue and lack of NAPUS participation as a stakeholder “leaves us with more questions than answers. Without our involvement it is hard for our organization to give an endorsement without having access to all of the information being studied.”
NAPUS expressed concern that if the Postal Service reduces delivery, competitors or someone else would step in to do it, leading eventually to a relaxation of the Private Express Statutes and allowing anyone access to the mailbox. Going to five-day delivery may result in significant savings, but “at what cost?”
NAPUS also was concerned about contractual issues, complement, P.O. Box services, retail service and potential loss of revenue.
National League of Postmasters
The League’s main concern is service and the effect five-day delivery would have on operations. The League noted that Saturday delivery is part of the Postal Service brand. “Protecting that brand while still having significant savings may be tricky, but it can be done,” according to the League.
The League went on to say that while delivery to rural and city routes can be curtailed on Saturday, delivery to all Post Office Boxes and all stations and branches must continue. The League’s view is that the Postal Service can maintain service standards on Express Mail, and on Priority Mail delivered to P.O. Boxes, and it can offer Caller Service for Express Mail to non-P.O. Box addresses. Postmasters have told the League that rural and city delivery on Monday after a non-delivery Saturday “is doable.”
The League will not support a plan that would not provide for service to businesses through Post Office Boxes on Saturday. An additional concern is the effect of any potential reduction-in-force on veterans.
In an open letter to League members, the National League of Postmasters said, “We don’t know how far the five-day delivery initiative will go, but rather than present a knee-jerk response of ‘no’ to the Postal Service, the League decided to look at how it might be done, especially if we are talking about the survival of the Postal Service.”
