Looking to Cut Costs, New USPS Leader Takes Aim at Overtime and Late Trips
The U.S. Postal Service is cracking down on late trips in an effort to reduce labor and transportation costs, with the agency’s new top executive looking for ways to redesign its business model.
The cash-strapped USPS, whose poor finances have taken a further hit during the novel coronavirus pandemic, has instructed workers to leave each phase of their deliveries according to a set schedule, meaning some mail will likely be delayed. Louis DeJoy, who became postmaster general last month, directed the changes, which the Postal Service suggested could save $200 million.
“This operational pivot is long overdue and today, we are talking about the first step in a journey we must take together, for the health and stability of the Postal Service,” management wrote in a prepared “stand-up talk” delivered to employees around the country in recent days. “The shifts are simple, but they will be challenging, as we seek to change our culture and move away from past practices previously used.”
In the first phase of changes, network, plant and delivery trips must take place on time. Late trips, which can lead to overtime, are no longer authorized, according to two memoranda, first reported by PostalNews.com. Another document explaining the policy said overtime would be eliminated soon, with “more to come” to explain the shift in the near future. Any mail that cannot be delivered without overtime will be held for the next day.
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