WASHINGTON −The U.S. Postal Service’s 10-year plan to stop operating at a loss isn’t going well. And, if they can’t get back on track, that could threaten its ability to deliver the mail and pay its retirees’ benefits.
According to a federal watchdog group, expenses have grown faster than revenues for years partly because of the drop in first-class mail, it’s most profitable product. USPS also faces competition for package delivery from private companies while key costs, such as employee compensation, have continued to rise.
Any gains made since the plan was announced two years ago have been offset by increased costs that postal officials say are mostly due to inflation, according to an assessment published this week by the U.S. Government Accountability Office.
The agency recommended policy changes to improve implementation.