Background
The U.S. Postal Service’s mail processing function involves the sortation and distribution of mail for dispatch and delivery. During fiscal year (FY) 2024, more than 107,000 employees worked in the mail processing function. Based on workhour plans, which the Postal Service develops as part of its annual budget process, the Postal Service planned to reduce mail processing workhours by more than 28 million hours between FYs 2022 and 2024.
What We Did
Our objective was to assess the Postal Service’s efforts to reduce workhours in mail processing. We analyzed trends in mail processing workhours, volume, and productivity, and we compared actual workhours to workhour plans during FYs 2022 through 2024. Also, we interviewed headquarters personnel to gain an understanding of the workhour planning process and workhour reduction efforts. Further, we interviewed personnel at nine judgmentally selected mail processing plants, and 10 judgmentally selected processing divisions regarding mail processing workhour management.
What We Found
Although management reduced workhours in mail processing facilities by more than 17 million hours during FYs 2022 through 2024, there may be opportunities to further reduce workhours by stabilizing or improving productivity. The workhour reductions included a 5 percent decrease in overtime hours; however, mail processing facilities used 10.8 million more hours than planned, which resulted in at least $174.8 million in additional cost. While productivity slightly increased during FY 2024, some mail processing facilities still saw declines in productivity during that year. Opportunities exist for management to more effectively plan for workload shifts and operational challenges during initial workhour planning and to improve mail processing productivity. The Postal Service spent an additional $63.6 million in FY 2024 to cover the additional workhours.
Recommendations and Management’s Comments
Postal Service management agreed with all three recommendations. The U.S. Postal Service Office of Inspector General (OIG) considers management’s comments responsive to all recommendations, as corrective actions should resolve the issues identified in the report. Postal Service management’s comments and our evaluation are at the end of each finding and recommendation.
