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Sunday, April 22, 2012

Postal Service Closings: Snail Mail Can’t Compete With Internet | WebProNews

Postal Service Closings: Snail Mail Can't Compete With Internet

New bill introduced to stop closings

With the ushering in of the digital age comes the inevitable decline of long-standing traditions, like going to the post office to send out and receive mail. So many companies do business online now–the offering of bill-pay and e-commerce have certainly been huge components in the decrease of traditional mail–that snail-mail has become all but obsolete, which is bad news for postal workers.

Do you think the U.S.P.S. can survive the digital age? Tell us below.

Not only are people relying more heavily on online bill-paying services now, they are also turning to the web for interaction with others; rather than sending a birthday card or party invitation, they send an email or e-vite, citing social media sites like Facebook and Twitter as major modes of communication. The introduction of media sources like Netflix and Gamefly saw a brief surge in mailroom activity, since millions of DVDs and games were being sent back and forth every day. However, even those companies can't be relied on anymore by mail carriers, because they've conveniently added streaming and downloads to their services. And with more things going digital every day–even books–people are using their computers and digital devices more than ever, seriously decreasing their need for mail service.

The loss of revenue in the postal industry–which is the second-largest civilian employer in the U.S., coming right behind retail giant Wal-Mart– and sorting facilities meant the suggestion of raising stamp prices to 50 cents, but that idea is tempered with the realization that people will just seek services from UPS or FedEx instead. In other words, consumers don't want to lose their mail service, but they don't want to pay to keep it.

But with all the talk of closings and employees being laid off, groups like the Pensacola Area Local of the American Postal Workers Union have pointed out to WebProNews that the U.S.P.S. isn't dependent on taxpayer dollars and that the idea of a taxpayer bailout is ridiculous. They also say that the revenue losses don't stem from mail processing or delivery, but rather from a "2006 congressional mandate that the Postal Service pre-fund future retiree health benefits for the next 75 years", which amounts to $5.5 billion every year to ensure the futures of people who haven't even been born yet. They also propose that Congress grants the Postal Service access to its own money after billions of dollars were overfunded in their pension accounts. In their view, Congress is largely responsible for the issue and is capable of fixing the problem.

On the government's end of the spectrum, President Obama has introduced the Postal Plan, which would eliminate Saturday service, saving as much as $3 billion a year. It seems like a fair idea; most post offices around the country already have limited hours on Saturday anyway.


With more Packages Being Shipped now than ever before... I don't see why USPS can't find a way to make money??? UPS and FedEx are doing very well at it...


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