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US Postal Service postmaster general, John Potter, addressed his employees in an open letter after criticism of the US Post Office by President Obama and others in the US health care debate

The letter states:



“Over the past few weeks there has been an energetic debate in the news media and in public meetings throughout the country about the health care plan being considered by Congress. Unfortunately, an analogy about the Postal Service has become popular which suggests that government entities, such as a proposed government-run health insurance program, wouldn’t pose a competitive threat to private companies. This analogy says that the Postal Service has trouble competing with FedEx and UPS. You know, as I do, this is not the case.



“First of all, our Postal Service is the finest in the world. We deliver greater value for the dollar than any comparable Post or mail delivery organization globally. The reality is the Postal Service is very competitive against firms like UPS and FedEx in package delivery, where we have been gaining market share through competitive pricing and flat-rate shipping. We also partner exceptionally well with both — FedEx and UPS fly most of our domestic mail, and we provide the last mile of delivery for UPS and FedEx throughout rural America. It is a good model of efficient public-private service.



“Secondly, we are experiencing a financial crisis that is due in part to a deep economic recession and in part to a federal mandate that we pre-fund our retiree health benefits. The recession has hit the mailing industry particularly hard, and we are not alone in seeing revenues decline in our business. We are taking aggressive steps to cut costs to match these declines, as any organization should do, but not at the expense of degrading the services our customers rely upon. Additionally, despite the fact that we have created a $30bn trust fund for retiree benefits, we are also required to make annual retiree health benefit payments on a schedule that no other government or private organization is required to meet. If we did not have to make these advance contributions — and we are working with Congress and the Administration to relax this obligation — the Postal Service would have had a net profit throughout the recession.



“Thirdly, as a government entity that is entirely self-funded and competes in a dynamic marketplace, we do an exceptional job given the constraints under which we operate. While we are not free to act as a private business would, we operate an organization that would be ranked 23rd on the 2009 Fortune 500 list if we were a private company. Our delivery performance scores have never been higher as we continue to excel in providing universal service and home delivery to every American household. It is a testament to every single employee that the Postal Service is consistently ranked by the Ponemon Institute as America’s most trusted government agency, and in the top 10 of all corporations nationwide.



“Finally, we should all be very proud of the Postal Service and of the work we do every day. While we may have to endure the occasional bad analogy or detractor in the news, they are far outweighed by our supporters among the American people.



“One of the pleasures of my job is being able to talk about the Postal Service and its people and the great work you do. I highly recommend it as a regular practice. When you talk to friends, family and customers about the Postal Service, you’ll find they know and appreciate the role we play in every community.



“While we are currently going through a rough patch due to the economy, and the news about our finances won’t be good for a while, be assured that we are striving every day to become a better organization, and an even greater asset to the American public and all who count on our service.”

Source: USPS