Modernizing the U.S. Postal Service is a huge undertaking; troubles at new processing center highlights the obstacles

The U.S. Postal service was once focused on moving
flat letters vs. packages. (Adobe Stock photo)

The opening of a new U.S. Postal Service mail and package-processing center near Atlanta exemplifies how difficult it will be to modernize the national carriers' network and delivery services. "Signs of trouble appeared days after the opening," reports Ester Fung of The Wall Street Journal. "Packages piled up on conveyor belts. . . .Trucks lined up for hours outside waiting for space at the loading docks."

Appointed Postmaster Louis DeJoy has said the work is "'simple stuff,' but union leaders are pushing against a rush to implement plans, insufficient training and poor management from inexperienced supervisors," Fung explains. "Employees said the new sorting machines were overwhelmed by the volume of mail and packages. . . . Dozens of workers didn't show up, saying work reassignments went against longstanding job-bidding processes established in collective-bargaining agreements."

Meanwhile, the U.S. Postal Service has lost money in 16 out of the past 17 years. DeJoy's overarching $40 billion plan is to update processing centers, cut costs and gain a greater market share of package shipping to turn profits. Executing those changes has been a rough route. Fung reports, "It is overhauling its vast network of sorting centers and truck routes that had long been focused on moving flat letters. [The plan] includes outfitting sorting centers with new equipment, purchasing electric vehicles to replace aging trucks, and consolidating processes and facilities."

Internal restrictions often prevent the Postal Service from recovering losses compared to its competitors, which can change prices to meet their costs. The Postal Regulatory Commission "limits what the Postal Service can charge customers," Fung reports. The Postal Service is also burdened with "a costly mandate to deliver to every address." Carriers such as FedEx and the United Parcel Service don't face those obstacles to profitability.

Because of the 2024 elections, the Postal Service is under increasing pressure to prove it can efficiently and consistently deliver mail on time. "It has to ensure it can handle mail-in ballots for coming elections as well as negotiations for new contracts with several labor unions," Fung writes. "The Postal Service currently has around 640,000 workers and it wants more flexibility to reassign employees to other positions as it restructures its network." Union leaders are concerned too many changes will hurt customer service.