I don't see any indication of this news in NFLX. 16% slower delivieries = dropped subscriptions IMO Short short!!!! Sell Sell Sell!!
I am all for privatizing the postal service, but it will never happen as the government would lose this valuable tool: http://www.answers.com/topic/mail-fraud
They've been mismanaged for decades and they knew about the consumers opting for online bill payments, online messaging of time critical information, sharing of photos et cetera back in the 90's... They didn't take it serious back then (they were warned often) and only responded via raising the rates of stamps along with increasing their advertisements in a poor effort to compete with the likes of FedEx and UPS for the letter document business. In addition, they have poor ability to track packages that go international in comparison to others (e.g. FedEx and UPS). Also, arguably the most important is their best business marketing mail (junk mail) has been taking a big hit the past 5 years as more business use alternative methods along with laws making it easier for consumers to opt out of the junk mail crap. One thing I've notice since the financial collapse of 2008 is an increase in door-to-door salesman and if you're not home...they leave their flyers, internet info, email addresses et cetera...stuff they would have used the post office for. Cutting Saturday service and self-service kiosks is like putting a bandaid on a few small cuts while dozens of bigger wounds goes untreated. Further, as more mom & pop small business continues to surface that handles same day junk mail delivery that's the post office break & butter money maker and as long as consumer become more efficient in using the internet for important documents... The U.S. Postal service is sinking deeper into wet cement. Mark
The US Postal service serves as such a huge subsidy of American Business that I can't see any possibility it will be privatized, unless sometime in the future businesses use the postal service to such a small extent that they no longer care whether it gets privatized.
Many are unaware that the U.S. Postal Service does not receive any funds from the government, they are a separate entity and must profit or loss without tax dollars. Unless of course you consider the stamp a tax. Management as I had seen it have been at least half of the cause of the Post Office mistakes. The number of managers increased 200% from early 1980s yet clerks and carriers declined. Unlike other businesses where if you have a worker who does not do his fair share of the work, unless a worker threatens harm or steals, can't fire them. I think if unions were to take a reduction on over time rules, and go to a 10 hour day, four day week, would be a huge reduction in fuel and utilize manpower more effectively. Reduce management by 66% and allow some managers to do physical work. Abolish working 30 years to retire. As far as making it private, many many communities would never get mail. States like Hawaii, Alaska, Maine, Dakotas and any suburb more than twenty miles from a larger city would be cost ineffective at the rate of the stamp now. Private companies would have to charge perhaps in excess of a dollar for one to send a letter to outlying areas. Granted bulk mail rates are some 20 cents cheaper than reg. postage rates, but they are much more specified and barcoded taking much less human work to deliver, without "junk mail," rates would have to go up 200% to cover the loss of income. Where the Post Office loses big time is nonprofit mail as it is usually under 15 cents, like all the political crap stuffed into my mailbox.
Thank you for clarifying the post office situation. I had always heard that junk mail did not pay its own way. Apparently that's not correct. Is that right? If it does pay its own way, and magazines, etc. pay their own way, then I am completely wrong about the postal service subsidizing US businesses. But if that is true, why is the postal service losing money. First class mail is a small fraction of what they process. If they make money on junk mail, they will surely make money on first class. Where does the problem lie in other words?
They lose money like nobodys business and it is covered by the federal government and us wonderful tax payers. The amount of mail delivered has dropped tremendously yet they have not laid off one worker. You may not like hearing it, but if there is less work and no one is laid off, then someone is sitting around doing nothing and getting paid a pretty good wage + a great benefits package. I used to work for an airline and we had mail contracts, so interacted with the employees daily. They were some good guys just like anywhere and quite a few admitted life was good working for the ole USPS. Stressful at times, but no more so than any job and the benefits were unbeatable unless of course you were a government employee. Cripes they nailed the guys at the airport Post Office watching pornos on the monitors in the lobby, while customers were coming through.
It is not covered by the tax payers, the U.S.Postal Service runs on it's own. That is why it is in the hole by millions of dollars. Some of the reasons it is losing money is lost revenue caused by Internet. The Post Office long ago gave away Parcel Post, by having bad service and UPS was there to clean house. The PO thought there would be steady growth thru letter mail, but Internet severly has altered this. The inability to rid themselves of poor workers has always hampered them, they have way too many managers, too many smaller PO's in big cities. Instead of house to house delivery, they can speed up by having outside post boxes in middle of the block, this cuts down time, fuel, and workman's comp of shoulder injuries and dogs. But the unions have a tight grip and like airlines and cars, they should allow concessions.
UPS is fully unionized, yet it does well. The difference is the relationship of the Government and its unions. Whereas Private business have clear lines between management and labor, government officials seem to be on the same side as unions. How many times have you heard a politician talk about giving workers better benefits and wages. Its easy to do when you can make the public pay for it.