THE new chief of the US Postal Service has provided an update on its future after rumors swirled it could be privatized.
Concerns have been growing for months that the organization could be privatized under Donald Trump after reporting heavy losses.
David Steiner is the new chief of the US Postal Service[/caption]
Privatization speculation started to swirl after Trump admitted it wasn’t the “worst idea” ever touted.
And, he looked at the plans during his first term before being met with a backlash.
David Steiner, who succeeded Louis DeJoy as Postmaster General, seemed to suggest privatization is not imminent.
“I am convinced that a strength of the Postal Service resides in our structure as a self-financing independent entity of the executive branch, functioning much like a business but with a public service mission,” he wrote in a letter to workers.
Steiner, a former FedEx exec, said he was confident that the future for the USPS would be strong.
And, he outlined his vision for the agency – ensuring it is on financially stable footing.
And, he is striving to improve customer service.
Steiner’s vision comes after fears grew that services in some locations might be culled in a bid to improve sustainability.
“The places where it’s most needed, because it’s most difficult to receive mail in other ways, are the places that would suffer the most directly,” Howard Schweber, a constitutional scholar at the University of Wisconsin Law School, told Spectrum News.
Brian Renfoe, the National Association of Letter Carriers president, warned about the risks of services disappearing entirely.
“If you live in Madison, you’d still get mail, maybe a little more expensive,” Renfroe said.
“If you live in a rural area, there would either be no access to delivery, or it would inevitably be more expensive.”
USPS reported heavy losses of $9.5 billion in 2024 – on top of a $6.5 billion deficit the previous year.
They admitted that it wouldn’t be able to break even in 2025.
USPS mess-ups
The United States Postal Service is facing customer complaints as the mail agency struggles to stay afloat admit workforce cuts and financial loss.
Customers were recently warned about major disruptions as mail carriers were assigned new duties under a new plan by the Trump administration.
Other residents were slapped with unexpected bills and fees after their mail was delivered late for months.
The USPS also admitted the reason why packages stopped being delivered to certain homes in rural areas.
The agency gave a pitiful five-word response to homeowners after they didn’t receive mail for two months.
They were also forced to respond after mail sat untouched at a key processing hub for weeks.
The company aimed to break even over a 10-year period, according to the company’s ten year plan published in 2021.
Agency bosses claimed they would be able to avoid $160 billion losses by 2030 if reforms were implemented.
At the time, it was reported that $40 billion would be invested over the 10-year period.
Investments would be made in technology, parcel sorting tools, and in the delivery and retail sectors.
DeJoy stepped down in March of this year after a five-year tenure.
But chiefs have been rolling out reforms to drive up efficiency and reduce costs.
Bosses revealed that 14% of first class mail will be upgraded to a faster delivery standard.
But, chiefs admitted that 11% of first class mail would be impacted by a slower standard.
Bosses vowed to deliver all first class mail between one and five days.
The reforms have been carried out in two installments – one in April and the second set earlier this month in July.
USPS execs also wanted to drive up reliability.
The U.S. Sun has previously reported how residents across the US were left with unreliable services.
Critics have claimed the USPS as an institution is a failed system after packages were stuck in processing centers.
Delays meant customers missed on bills and other important documents.
Elon Musk suggested the USPS could be put under private ownership before he left the White House.
The USPS has been plagued with heavy losses[/caption]
