U.S. Postal Service: Challenges in Improving Performance and Meeting Competition

GAO discussed the U.S. Postal Service (USPS). GAO noted that: (1) USPS continues to have labor-management relations problems, its negotiations with its major employee unions have gone to arbitration, and the number of grievances filed increased by 31 percent from 1993 to 1995; (2) USPS contracted for opinion surveys of its employees after one union accused it of using survey results improperly during labor negotiations; (3) USPS initiated an initiative to improve service quality and customer satisfaction, but its unions are not participating in the initiative; (4) USPS has had difficulty in reaching a framework agreement with its unions and management associations; (5) USPS is losing market share in certain lines of business because of the way it is required to set rates and allocate revenues; (6) the rate-setting requirements also reduce USPS flexibility in responding to market changes; and (7) USPS needs to control the cost of its operations to remain competitive as a full-service provider.