Political Hotsheet
August 18, 2009 6:15 PM

Post Office Union Irked by Obama's Diss

(AP)
President Obama at a recent town hall meeting picked on the U.S. Postal Service for not being able to keep up with its private competitors -- and representatives of the post office are not too thrilled at becoming the target of the president's mockery.

A union representing postal supervisors, managers and postmasters sent a letter to the White House late last week, the Washington Post reports, asking Mr. Obama to reconsider some recent comments he made comparing the Postal Service with UPS and FedEx.

The president has invoked the Postal Service to prove that a government-run program will not necessarily drive private competitors out of business -- a common argument against a government-run health insurance plan.

"I mean, if you think about it, UPS and FedEx are doing just fine, right? No, they are," Mr. Obama said at a recent town hall meeting in New Hampshire. "It's the post office that's always having problems."

In the letter, National Association of Postal Supervisors President Ted Keating reportedly said there was "collective disappointment that you chose the Postal Service as a scapegoat and an example of inefficiency."

"Your negative references to the Postal Service without knowledge of the facts was a disservice not only to the members of our organization, but to all postal employees," he wrote.

A recent government report showed that the postal service could face a nearly $7 billion loss this fiscal year, even after a recent 2-cent increase in the price of stamps. The Postal Service's problems, according to the report, stem from a nationwide shift to e-mail.

Postmaster General John Potter has asked Congress for permission to reduce mail deliveries from six days-a-week to five.

White House Press Secretary Robert Gibbs said at his daily press briefing Tuesday that Mr. Obama has probably not seen Keating's letter.

"I doubt he's seen that letter, and I don't have any reason to believe he regrets (what he said), since he repeated it," Gibbs said.

Gibbs also made the comparison on Sunday when speaking about health care reform on CBS' "Face the Nation.".

"I don't think (President Obama) was saying that what we were going to do is create the postal service for health care," he said.
Tags:
Barack Obama ,
U.S. Postal Service
Topics:
President Obama
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by swin5 August 19, 2009 11:28 AM EDT
Let me see if I get Obama's logic. He is using a government agency that can't compete with private enterprise as an example of why we need to create a new government agency to compete with private enterprise.

Does anybody out there really take this guy seriously.
Reply to this comment
by pasmalltown August 19, 2009 9:45 PM EDT
To swin5 August 19, 2009 11:28 AM EDT -
Which came first - the chicken or the egg? To understand another's logic you must first comprehend what he or she is saying.

AN EXACT QUOTE from the article above follows and sort of explains why compared UPS, FED EX and the USPS - "The president has invoked the Postal Service to prove that a government-run program will not necessarily drive private competitors out of business -- a common argument against a government-run health insurance plan."
When Obama said "I mean, if you think about it, UPS and FedEx are doing just fine, right? No, they are." "It's the post office that's always having problems." In simpler terms, brainiac, he didn't think his healthcare plan would greatly effect the current profitability of private insurance companies i.e "run them out of business". Agree or disagree if you will, but don't twist his statements around to fit your agenda. So giant brain, to suggest you have a clear understanding of Obama's logic is both an illusion and illogical.

AND most importantly, Obama subsequently toned down and further clarified his remarks about the USPS vs FED EX/UPS comparsion with go'vt vs private healthcare thru Gibb's last remark. It was unfair analogy from two aspects - first, comparing mail delivery to healthcare is unfair and secondly, suggesting that the USPS is able to compete directly and on an even basis with private companies like FED EX and United Parcel is a common myth.
by MPHgrad August 19, 2009 7:52 AM EDT
The the post office is and has for a long time been quite inefficient. It has the same problem as so many government entities in which poorly performing employees are allowed to keep their jobs. In the private sector these people would have been fired.
Also, the post office doesn't even perform all of its duties. They contract a great deal of sorting to private companies which get the job done more efficiently without all the bureaucracy.
Reply to this comment
by pasmalltown August 19, 2009 8:40 AM EDT
TO MPHgrad August 19, 2009 7:52 AM EDT -
"They contract a great deal of sorting to private companies which get the job done more efficiently without all the bureaucracy."

Would like to know where you pulled this "fact" from, especially the idea about "a great deal" of sorting thing. Is it just your opinion or are there any facts you can cite to back this statement?

Had package delivered a few weeks back that origined with FED EX - FED EX "passed" it along to the USPS somewhere along the line. I wondered why until I realized FED EX couldn't make a buck on the final delivery, so they dumped on USPS knowing they(USPS) didn't have an option to return the package to sender. Could this be an example of how you got your "ideas" about how the USPS was "poorly performing"???? and "inefficient"
by formrusmcsgt August 18, 2009 9:38 PM EDT
In the letter, National Association of Postal Supervisors President Ted Keating reportedly said there was "collective disappointment that you chose the Postal Service as a scapegoat and an example of inefficiency."
---
I guess he expected praise for running $7B in the red......
Reply to this comment
by pasmalltown August 18, 2009 9:53 PM EDT
TO formrusmcsgt August 18, 2009 9:38 PM EDT -
"I guess he expected praise for running $7B in the red......"

You need to do more home work before flipping that opinion out here and now - The USPS is "perceived" as a prime example of inefficiency by many who do not take the time to understand what a complex job they have to perform and a complex set of regulations they must adhere to - I believe Mr Keating was just suggesting that Mr Obama's comments would fan the flames on this misconception and was simply expressing his disappointment with the choice of words. Apparently, as judged by a lot of these posts, Mr Keating was correct.
by sbelknap01 August 18, 2009 9:28 PM EDT
the post office needs to stop whining. I pay postage increases while they deliver phone book sized unsolicited catalogs to my house at my expense and then whine about not having enough money. Charge the junk mail a fair price for delivering their trash and solve your money problems - or allow me to opt out of u.s. mail delivery
Reply to this comment
by rhs648 August 18, 2009 9:17 PM EDT
The US Postal Service employs around 664,000 people. Many of the postal workers that I know were very excited about President Obama winning the elections. Will these people remain excited about President Obama after his comments?
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by pasmalltown August 18, 2009 9:36 PM EDT
TO rhs648 August 18, 2009 9:17 PM EDT
"Will these people remain excited about President Obama after his comments?"
Only the smart ones.
by stn_sage August 18, 2009 9:01 PM EDT
For over 200 years, the USPS has managed to stay in business and provide excellent service---let's see if FEDEX or UPS can say the same thing in 200 years more!

It's only been the last a couple years that the USPS has been running in 'the red' due to an increased cost structure, NOT it's whole history!
Detractors AND Mr. Obama should take that into consideration BEFORE they 'trash talk' it!

So far, Mr. Obama isn't doing a very good job at president and doesn't have much room to be criticizing others!
Reply to this comment
by formrusmcsgt August 18, 2009 9:40 PM EDT
During MOST of that history, carriers CARRIED mail. Now they drive 60ft., shut off the engine, get out of the truck, stick the mail in the box, get back in the truck, start the engine, drive 60ft...............
by pasmalltown August 18, 2009 10:05 PM EDT
TO formrusmcsgt August 18, 2009 9:40 PM EDT -

"Now they drive 60ft., shut off the engine, get out of the truck, stick the mail in the box, get back in the truck, start the engine, drive 60ft........"

Did that start for you around 1971 or so? Just curious. Most rural carriers use their own vechicles, sot their own mail, aren't full time postal employees and don't receive healthcare benefits........... Even full time USPS employees I've seen park the USPS truck in one spot and walk their routes back to their truck. Where are you from?
by sjc_1 August 18, 2009 8:13 PM EDT
The USPS is a product of their management and mandate. They are to deliver HUGE volumes of mail at deep discount pricing. The management is 50 years behind the curve and will never change until THEY are changed. There is nothing wrong with the USPS that can not be fixed, but they must do it now and they must make it continuous and permanent ongoing effort with results.
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by krazytaz312 August 18, 2009 7:48 PM EDT
If the Postal Service is the example we need to look at for Government run programs, we are in for a HUGE disappointment. It is just another example of a government run failure. UPS and FedEx would be no different than the health insurance industry if the government put the squeeze on them.

How stupid does this president think we are!!
Reply to this comment
by jwesel1 August 18, 2009 9:26 PM EDT
First USPS has a different cost structure compared to Fedex or UPS. US Postal service charges you the same whether you send the letter next door or to the remote corner of Alaska, try to get the same favor from Fedex.
by jlawyer4 September 17, 2009 5:56 PM EDT
Where to begin. I don't know why someone who actually knows
what goes on at the post office isn't more forthcoming.
There are so many total lies out there about everything about it.
For one thing you tell me how any company in the US would ever be
expected to put 6 billion a year to prepay the retirement health
insurance costs of their employees and expect to be solvent.
How much insanity can one person take when it comes to reality?
Supposedly the post office has cut 5 billion from their budget this
year alone. Supposedly 900 million more needs to be cut.
Many who work the mail suggest that a good place to start might
be to cut back a little on the number of people who are not actually
working the mail. Now there's a novel concept. Most of what I read
is written by people who know absolutely nothing at all about how the
PO is run but they can spout off just like I can. And the post office
is not eating up millions of your tax dollars. The only money they
get from tax dollars is money that is allotted by the government to
pay for mailings that it deems are in the public interest such as
mailing absentee ballots and probably some other social interest.
The post office isn't getting your tax money so calm down.
There are a lot of people who think that postal jobs are total gravy
but most of them quit in less than a month because they don't want
to work graveyard for 12 years or more to get a day job if they
are a clerk or they don't want to put in 9 hours of their day to
get paid for 4 or 5 hours like I do. I was disappointed that Obama
would make comments about the post office as he did. Fedex and
UPS would not want the mail delivery of letters to every house in
America because it would not be profitable. So before everyone
wishes the postal service into oblivion might I suggest that
there be a bit of a reality check here.
by rational_1 August 18, 2009 7:40 PM EDT
Boy, someone's going postal on Obama - sorry I couldn't resist and figured I might as well blurt it out before someone else got to it.

So Obama is saying that UPS and Fedex managed to survive and thrive despite competing with the publicly-subsidized (to the tune of billions yearly) Post Office, and so we shouldn't worry about the insurance companies competing with a public health system? I read that a little differently - my take is that Obama's proposed public health care plan will be so inefficient and bleed so much money that the private insurers have nothing to worry about in terms of competition. Great Obama, just great. Medicare and social security are tanking, we pump billions into the Post Office and Amtrak yearly and you're going to give us a new entitlement program that you already know is fiscally unsound because it won't prove to be any competition for the private companies. Perhaps your skills as an orator are as overblown as your estimation of your healthcare plan.
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by jwesel1 August 18, 2009 9:23 PM EDT
What Obama said was that a government run healt insurance program won't drive the private insurers out of business. You don't go out of business just because you have a competitor, instead competition is good for the customer
by pasmalltown August 18, 2009 9:30 PM EDT
TO rational_1 August 18, 2009 7:40 PM EDT -
"..the publicly-subsidized (to the tune of billions yearly) Post Office,.." and "..we pump billions into the Post Office.." I'd like to see where you got this mis-information - it's a bold face attempt to obscure the truth.

This from the USPS.com financial pages:
"Total revenue in FY 08 was $75 billion, unchanged from last year. Expenses totaled $77.8 billion, including the $5.6 billion payment required by the Postal Act of 2006 to pre-fund retiree health benefits." You do the math, without a union mandated pre-funded retiree healthcare package the USPS would have shown a 2.8 billion dollar profit for FY08 instead of a 2.8 billion deficit. BUT WAIT MINUTE, because the USPS is(and has been since 1971) a quazi-governmental agency, THEY"RE NOT ALLOWED TO MAKE A PROFIT! Have you ever seen the Postal Service health benefits plans?? The only ones better are the plans offered to Congress and the White House. I agree the USPS is "bailed out" with US dollars - but isn't this similar to AIG, GM,etc. and their bailouts? The USPS owes the US Treasury in the order of 10 billion dollars which includes the 2.8 in FY08 and AIGs bailout was for how much? $182.5 billion.
How much did the AIG CEO get in salary? 7 mil And how many times more is this AIG pukes salary when compared to Obama's? 17.5x - Who's getting the bargain here? AIG or the USPS?

Heck, they(and UPS and FED EX) are suppose to show a profit - not just break even. So comparing UPS and FED EX with the USPS on a strictly competitive level is over-simplification - The USPS does not have use of all of the "corporate tools" that UPS and FED EX has. They are mandated by government NOT to make a profit and are controlled by a Postal Comission which limits their ability to generate $$$ when they do make money - the USPS is damned if they do and damned if they don't. Then you Monday morning quarterbacks wonder why their job is difficult?

Oh and by the way, the USPS does receive around 100 million dollars in ACTUAL tax dollars each year to "helps" defray the cost of various "good deed" mailings - one of which is providing free postage for mailing absentee ballots in election years - Do you think UPS or FED EX would do that for you at no cost?
by mmkd07 August 21, 2009 10:01 PM EDT
First of all, The USPS recieves no taxpayer subsidy ( and has'nt since the early '70s}. Revenue is derived solely from the sale of postage and related products. Secondly the "union mandated" pre funding of future retiree health benefits(to the tune of over 5 billion a year) was mandated by congress a couple of years ago. The unions had nothing to do with it. Now comes the good part, no other company in this country (or government entity for that matter) is required to do this. Congress has required the USPS to prefund health benefits for people who don't even work there yet! Also the USPS is required to pay for benefits incurred by employees who are armed services veterans during their years of military service!( Try imposing that on the private sector) Why, you might ask? Simple, these payments are counted as revenues received by the government thus reducing the deficit.
by scottyusa August 18, 2009 7:18 PM EDT
I don't have any problem with the postal service. I send and receive mail. It works great. Sure UPS and FEDEX may operate a bit more efficient but then again, they are not hampered doing everyday mail.
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by woeisme1 August 18, 2009 7:03 PM EDT
The unions can suck. I was a member of the teamsters once and they did nothing for me but take my money.

We just got rid of a deliverly man because he kept leaving the boxes all open. He got caught giving mail to people w/o checking id's. Anyway, after many many complaints by neighbors, they finally got a new postman.

P.S. He's no better.

Look. It's a sign of the times. The bottom line fact of the matter is that what is behind all our troubles in society is people....and people's lack of morals and simple common sense.
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by woeisme1 August 18, 2009 6:59 PM EDT
Obama is keeping a promise he made to declare war on government waste and the Post Office foots that bill. They do waste money are their services could certainly be tweaked some.
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