Making the USPS Irrelevant One Disastrous Decision at a Time!

The viral post office | Viral post, Post office, Postal policeBy now, it is apparent that the USPS has utterly failed in its primary job of delivering the mail.  That the US PS has been failing for my entire life is a topic the politicians do not want to discuss.  That the business model the USPS is based upon has never been a profitable one, the overhead is disastrously expensive, and the labor costs beyond exorbitant are also not topics the politicians ever want to discuss.  They prefer smoke and mirrors, purple squirrels, and Hollywood celebrity scandals to actually doing their jobs.  But, I digress; last week, the USPS announced that postal service would revert to the slowest it has been since the 1970s, and the cost for that dismal service is going to increase dramatically.

All weekend the reasons for the USPS being in this fix have been stewing in my mind, and I would like your insight as I discuss the main reasons why the USPS is in such bad shape.  Feel free to disagree.  Feel free to comment.  Feel free to ask questions and research further.  To my mind, the most damning problems to the USPS come from the following areas, too much overhead, labor union expenses, business model, and no clear political place in government.Save the US Postal Service! By a zillion dollars comics | Politics Cartoon | TOONPOOL

Labor Union Expenses

Let’s get something clear, the labor unions in government are living high on the hog of taxpayer forced taxation and mandated union dues.  Consider the following comment from Representative Dennis Ross.

“UPS (Union) – about 66% of their total operating costs are labor. FedEx (non-union) – about 45% of their total operating costs are labor. USPS – 80-82%.”

Here’s the rub in comparing UPS, FedEx, and USPS; they are not apples and apples; it’s more like apples to rocks.  Why?  Because UPS and FedEx must show a profit to shareholders at the end of the year; thus, anytime USPS runs into an unprofitable situation, they rely upon USPS to fill the gap.  FedEx operates slightly differently based on its business model. From observation from living in extreme rural areas, it does not appear to rely upon USPS as often to cover the gaps in service.

However, the labor costs at USPS continue to run extremely high, and the excuses for these labor costs continue to run thinner and thinner every year.  Looking at six specific USPS explicit labor union-negotiated labor costs:

      1. Compensation levels – What each employee under the collective bargaining agreement is paid.
      2. Work rules – How often an employee works, who they report to, uniforms, and a host of other processes and procedures, which can and do increase business operating costs.
      3. Contracting – Includes independent contractors, contracts for retail locations, pickup locations, and much more.
      4. Network differences – Differences in the network affect the labor involved in delivery, sortation, transportation, and retail portions of an end-to-end movement.
      5. Capital intensity – Differences in capital requirements affecting the amount of non-labor costs needed to provide services offered.
      6. Congressional requirements – Congressional requirements focus on the aspects of the Postal Service that add more labor costs influencing capital spending.

Hence, if we take Rep. Ross’s statement as accurate, Congress is to blame for some of the added expenses the USPS incurs and the hidden taxes the taxpayer pays to interact with the USPS.  This is why the place in government is such an influential portion of this discussion.  Congress has been pushing the costs of regulating the USPS onto the taxpayer as a hidden tax since the USPS was started. This is unacceptable, especially since the taxpayers did not have a voice in allowing the USPS to become unionized, tripling labor costs year-over-year.P.S.E Context of PA: SWOT Analysis of the United States Postal Service

Please note, when discussing labor costs tripling, we are not just discussing wage earners’ take-home pay.  Labor costs, as shown above, include those six items, plus a host of labor union contracted benefits, plus retirement benefits, plus administrative staff to handle these benefit packages, the regulatory burdens, the reporting burdens, and much more.  Thus, while comparing UPS, FedEx, and USPS is unfair and illogical, the labor costs are pretty close to accurate even though they cannot be compared due to business model, Congressional reporting, and quasi-governmental meddling by politicians.  Any company with 80-82% labor costs will be struggling with labor problems and turning a profit.  Labor costs, fed by a labor union, are a reality that needs rectification and addressing.USPS 2011

Outdated Business Model

2009 the USPS paid a lot of money to have their business model reviewed, and the result was an excellently written document that outlined two potential steps for the USPS to take.  Where is the USPS in adopting either of these actions in 2021; nowhere!  Why has the USPS not taken any action on this document since 2009; Congress!  Item number six in labor costs continues to rear its ugly and monstrous head, and the problem is not so much on USPS; although they indeed share the blame, Congress continues to drag its feet and refuses to scrutinize the government appropriately.Several logos, mottos have represented USPS through the years | PostalReporter.com

When discussing the USPS business model, the industry is discussing “optimizing the last mile” in the supply chain.  That last mile is where the USPS has traditionally filled in the gap and made the final customer delivery.  However, USPS is inefficient, costly, and labor-intensive.  Yet, until science fiction realizes a Star Trek-like replicator in every home, optimizing the last mile is the discussion we need to be having, and solutions are available!

The 2009 business model review offered franchisee options as a business model — what a novel idea.  Imagine getting your mail on your commute route, no more having it delivered to an apartment box, packages waiting on a doorstep for thieves, stop by a convenient place on your regular commute route, and get all your mail.  Why not have your mail delivered to your office?  Then your office mailroom becomes an arm of the post office; it can sell stamps, handling packages, and then you do not have an extra stop at all.  Talk about an employer-based incentive!  Better still, for a fee turning over retail establishments to non-profit groups for work programs.  Guess what; that has the benefit of increasing public outreach and building communities.  Yet, the USPS languishes because Congress refuses to take up serious topics, and our tax dollars are squandered!

Place in Government

Engineering Professor Calculates How Fast The Eagle In The USPS Logo is GoingRead the US Constitution, the US Bill of Rights, other founding documents, wherein is a postal service discussed?  Find me the article claiming we need a Federal Postal Service.  Name me the reason why the Postal Service is required.  Selling stamps, that can be done using a myriad of different methods.  Sending packages, mailing letters, again, many other options are available.  Passports, hundreds of other options are available; why not put that into DMV’s across the US?  Why not simplify the Passport process entirely?

What is the reason for the USPS?  Give me the why and justify the existence for the next 20-years for the USPS.  My entire life, I have been asking why the USPS is needed, and I have been asking this since before email, fax machines, and other technological leaps.

Overhead

USPS TESSWhen was the last time the USPS had personnel layoffs to balance their accounts?  1970, under President Richard Nixon, USPS had a strike, got a unionized workforce, and, as they call it, “a living wage.”  From 1970 to 2021, there has been nothing but problems in the USPS; from retirement benefits costing too much, to labor expenses, to Congressional expenses increasing year-over-year, the overhead does nothing but balloon.  I was recently in a flagship USPS for Phoenix, AZ.  The building is a disgrace, the parking lot is neglected, the lobby is dark and missing half the materials, no forms, no boxes, everything is behind the barred and locked counter, and the retail associates are criminally negligent in their duties.  What’s worse, this was a good USPS office to visit in Phoenix, AZ.

Take an honest appraisal of your local USPS and ask yourself, are your taxpayer dollars represented in your USPS in a manner acceptable to you?  I visited a USPS in Las Cruces, NM.  The design of the building lends a bright feeling to the building atmosphere; the retail area is small and naturally illuminated.  Same problem with retail associates, but not as noticeable.  However, this was also before the latest changes from Washington, where the employees were told it was okay to work slower and charge more.More is Less at the USPS | Freeport Press

It is my personal opinion that the USPS has outlived its usefulness, and it is time for the USPS to be eliminated from quasi-government offices of the United States.  Nothing fruitful can be gained from continuing the charade of the USPS.  Congress needs to return to the states the ability to issue addresses and organize their communities and end the USPS debacle!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

NO MORE BS: Revisiting Designed Incompetence

Dont Tread On MePlato has a point, “The price of apathy towards public affairs is to be ruled by evil men.”  When writing about the Department of Veterans Affairs, the Internal Revenue Service, or the United States Postal Service, one must remember, these organizations have been intentionally designed to be as bad as they are.  The government worker refuses accountability, shuns responsibility, and simply wants to exist doing as little as possible for as much as possible.

In the private sector, the employee is expected to shoulder responsibilities, share in the companies struggles, trials, and the eventual victories.  Yet, the government employee is the exact opposite.  I have heard it said that government workers are a necessary evil, a scourge, and a disgrace.  Except, often times the government employee is just a rule follower and the really pernicious and dastardly government employee are those seeking power in their government employment.  The directors, the supervisors, the managers, and the undersecretaries.  The staff that never goes anywhere.  Political appointees come and go, but the staff is a scourge for life.

Never Give Up!While Plato has a point about apathy in public affairs leading to being ruled by evil men, what is lost in the discussion are the staff members.  Tom Clancy wrote about how a jet airliner took out both houses of the Congress, SCOTUS, and Vice President Jack Ryan suddenly found himself as President Ryan, rebuilding the entire US Government.  This Tom Clancy novel takes a person into the inner workings of the US Constitutional Government like no other book I have ever seen.  Best of all, he explains the intoxicating power the staff members, the executive assistants, and undersecretaries hold over the political appointees to hinder progress, stymie change, and control their fiefdoms against all forces of influence.  This is the root of designed incompetence.

What is an excuse?

An excuse is a method to reduce blame attached to an action, defend, or justify one’s actions, an attempt to release one from accountability, or a poor or inadequate example of something.  As children, we are taught excuses are like noses; everyone has one and picking it in public is disgusting.  Yet, when something happens, two types of people emerge, those who make excuses and those who take responsibility and work to fix the problem.

What is designed incompetence?

Designed incompetence is a ready-made excuse for inadequacies created in business operations, a method to avoid responsibility and accountability. Due to the cost of designed incompetence, it is generally only found in government operations.  Designed incompetence can also be intentional actions designed into business operations, so the expected functions are designed to fail purposefully.  Designed incompetence is always harmful and destructive in nature, generally will make no logical sense, and will always be the preplanned leadership fallback position.Apathy

Example of an excuse:

    • The USPS is running slow, so the delivery of mail is taking longer to deliver than usual.
    • COVID has a lot of employees out sick, so operations are slower.
    • The person who wrote the order requesting the work to be completed did not do their jobs properly, and the original order must be rewritten.

Examples of designed incompetence:

    • The VBA communicates using terminology not universal in medicine to intentionally confuse and hinder making appropriate decisions on veterans’ claims.
    • The VHA refuses to write policies and procedures due to a fear of risk; thus, when the VA-OIG investigates, the same recommendation can be made multiple times to write down procedures.  The leadership team can escape accountability for failure.
    • The USPS has mail carriers dumping mail in dumpsters, these employees are protected by the labor union, so the employee can keep their job, move them to a non-letter carrier position.

Designed Incompetence Feeds Inert and Toxic Cultures

Knowledge Check!Designed incompetence is the root cause for the toxic government employee workplace cultures.  When responsibility is shirked, the human psyche feels moral distress, and as the moral distress grows, so to does the self-loathing, self-hate, and feelings of hopelessness.  Worse, some people, who have constantly been ethically challenged or morally bankrupt, will use these feelings of self-loathing to capture power.  Once captured, the power becomes a drug, and that drug is highly addictive.  Thus, a self-fulfilling prophecy from Plato becomes true, “Apathy towards public affairs is to be ruled by evil men.”  The more the morally bankrupt and ethically challenged win power, the bigger an example to others of how to obtain power in government they become.  But the remaining people who do not receive power are left with a toxic workplace, full of inert people.  Motivating inert people in a toxic culture, who are already feeling the stress of acting morally indifferent will leave multi-generational scars on the workforce.

An important point that requires mentioning, “it is not for the lack of money or technology to pinpoint abuses and problems with employees; it is all the inertia of the leadership towards action and the toxic culture which allows and encourages pushing the boundaries that are killing veterans in the VA.”  The same is true for any of the alphabet agencies created by the Federal Government, state government, and local government.  Walk into a DMV and tell me if you cannot sense a toxic and inert culture is driving down customer service levels.  Walk into a welfare office and tell me the people working one side of the counter are not inert.  Worse, walk into any IRS field office and tell me how you feel being around the morally bankrupt and ethically challenged.Plato 2

I met some school board officials in Albuquerque, New Mexico, and was appalled at the lack of ethics and morals they displayed.  Judges and lawyers are driving drink and skating accountability because of their positions and so much more.  All because the designed incompetence in government promotes those who have the least reason and ability to be promoted.  Plato is absolutely correct, “The punishment which the wise suffer, who refuse to take part in the government, is to live under the government of worse men.”  For too long, government employees have been allowed to run the asylum while the best and brightest pursue goals in the private sector.  If America is to win back her government, the citizen must stand and boldly proclaim “NO!” and then get into government service to change the toxic and inert cultures.

Plato might have been mentioning the following about elected officials, but I find it apt and applicable to the designed incompetence by the staff members, “One of the penalties for refusing to participate in politics is that you end up governed by your inferiors.”  The first time I met my director as a VA employee, I knew two things, she hated me, and I was doomed to suffer under her inadequacies.  Both of which came true over the following 360-days.  The intransigency of the leadership in administrative positions at the VA is frightening.  Ending these abuses of power is the preeminent position of every citizen in every democratically elected society.

Plato 3The scourge of designed incompetence must end.  If this means eating soup with a knife, then we must eat the bowl of soup to the dregs.  But, we must act if we are to save our countries from the politicians and the staff that have infested our governments!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.