Postal Service:

Many Challenges in a Changing Environment

T-GGD-95-93: Published: Feb 23, 1995. Publicly Released: Feb 23, 1995.

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GAO discussed: (1) how competition will affect the Postal Service's revenues, cost, and rates; (2) the future challenges facing the Postal Service; and (3) how individuals and the economy would be affected by privatization of mail delivery. GAO noted: (1) mail volume has continued to increase despite electronic alternatives such as fax and e-mail; (2) the Postal Service has lost most of its overnight and parcel delivery business to the private sector, which has lead to increased postage rates and further reductions in postal services; (3) the Postal Service continues to be affected by poor labor-management relations; (4) customer service is below postal standards and falls short of customer expectations; (5) the Postal Service needs strong controls to protect against meter fraud and effective controls over other postal revenue; (6) labor and equipment problems have slowed the Postal Service's automation efforts; and (7) the Postal Service seeks greater flexibility in the areas of collective bargaining, cross crafting, grievances, pay for performance, workforce management, rate setting, and new products in order to improve overall operations.

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