By Eleanor Boudreau
http://stream.publicbroadcasting.net/production/mp3/wkno/local-wkno-903067.mp3
Memphis, TN – In Memphis today members of the Postal Regulatory Commission heard testimony about the United States Postal Service's plan to cut costs by ending Saturday delivery. The meeting was one of seven that will take place across the country.
The postal service doesn't get any tax money. It receives all its revenue from delivering packages and letters. In 2006 it delivered 213 billion items--the highest number ever. Last year that number dropped to 177 billion. A Senior Vice President at the postal service, Mary Gibbons, says that drop, "Caused our net income to go down pretty quickly."
This year looks grim, too. Gibbons says the projection, "Is over negative six billion dollars. It's a lot of money to make-up."
The postal service goes to addresses private shippers won't--and they go even if they don't have mail to deliver. They go just to see if there's something to pick up. That's something private shippers won't even consider.
Gibbons said the number of pieces-per-door used to be five. Now it's four. "That's less revenue for us," Gibbons added.
The decline in mail is due to the recession and the internet.
Testifying most vehemently against ending Saturday service was Joseph Adams. Adams is in newspaper publishing, another industry hit hard by the internet and the recession. He uses the postal service to deliver his papers to his customers, right now six days a week.
Mike Morris of the American Postal Workers Union said ending Saturday service would disproportionately impact the poor in rural areas who are less likely to have internet access.
Congress has to change a law in order to end Saturday service. Gibbons says FedEx does not have such restrictions.
"There are numerous examples where legislatively we have requirements that cost money that the private sector doesn't have," Gibbons said.
The outcome of this meeting will be presented to Congress in July.