American postal serviceFaced with an uncertain future after resignation this weekPost master Louis Dejoyand the suggestion of President Donald Trump and Elon Musk, who heads the government’s ministry of efficiency, that the messaging servicecould be privatized.
The unions representing postal workers fell to the idea of privatization, organizing demonstrations across the country.
Although they support modernization efforts,Including those initiated by DEJOYUnion leaders have warned that authorizing it private companies to manage US mail harms daily citizens, in particular the 51 million people living in rural areas that depend on the postal service.
“This is a terrible idea for all those we serve,” said Tuesday during a round table of the National Association of Letters Carriers Brian L. Renfroe during a round table at the National Press Club in Washington, DC.
What is happening then can depend on who becomes the next general post office. The US Postal Service Board of Governors, an establishment independent of the executive power that oversees the postal service, has retained a global consulting company to carry out research for the 76th post office and CEO.
The USPS currently employs around 640,000 workers responsible for delivering city centers to rural areas and even distant islands.
Trump and Musk seek to make big changes to the USPS
In February,Trump saidHe can put American postal service under the control of the trade department in what would be a takeover of the agency agency, which has operated as an independent entity since 1970.
“We want to have a post office that works well and does not lose solid money,” said Trump during the swearing in for the Secretary of Commerce, Howard Lungick. “We think of doing so. And it will be a form of fusion, but it will remain the postal service, and I think it will work much better. ”
Although he said nothing about privatization during the event, the president expressed his support for the idea in the past. In December, he suggested privatizing the service given the competition he faced with Amazon, UPS, Fedex and others.
“It is an idea that many people have had for a long time. We look at him,” said the president.
Musk, on the other hand, expressed his support this month at a technological conference to privatize postal service, saying: “We should privatize everything that can reasonably be privatized,” reported the New York Times.
Postal workers protest, warn the Americans could lose a beloved service
Throughout the country, postal workers have organized demonstrations in recent days, many singing “US Mail not to sell” and certain signs that read: “The post office belongs to the people, not to billionaires”, a reference to Musk.
Renfroe said the objective of the demonstrations was to ensure that the American public is aware that drastic changes are taken into account for the postal service.
“Our message is:” No. Private affairs are interested in doing things that are profitable, as they should be, “he said.” But this is the distinction between private affairs and what we are, a public service, where we serve everyone, everywhere, no matter where they live, for the same price every day. “”
How did the USPS end up in such a bad financial situation?
Since a reorganization in 1970, the USPS has been largely self -funded. Most of its annual budget of $ 78.5 billion comes from customer costs, according to the Congressional Research Service. The congress provides a relatively low annual credit – around $ 50 million during the year 2023 – to subsidize free and reduced mail services.
In the midst of the challenges which include the drop in profitable first -class mail and the cost of benefits, the postal service accumulated$ 87 billion in lossesFrom 2007 to 2020. However, the service declared a profit of $ 144 million in the last quarter, attributing it to the plan at 10 years in Dejoy to modernize STEM operations and losses. The service had declared a net loss of $ 2.1 billion for the same quarter last year.
“By regularly improving our product portfolio, we increase our competitive position on the transport market,” said DEJOYIn a written declarationFebruary accompanying the results of the first quarter for the year 2025.
The union leaders said on Wednesday that they hoped that the next post office master will stick to a modernization plan and consider the postal service to provide other services to the public, including the basic bank, the burden of electric vehicles and even the American census work.
“Our network of physical locations, retail places … Our delivery network is able to do so many different things,” said Renfroe.
This story was initially presented on Fortune.com
