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Tuesday, December 6, 2011

Post Office Genius

Today, during a news report about cutting US Post Office services a "spokeswoman" said something that I just couldn't believe. She said that even though they were considering cutting some services and may have to close some locations, employees wouldn't be laid off, but given opportunities at other locations. In fact I believe I heard her say they "never" lay people off.

This was unbelievable to me because every business owner knows the largest single cost of operating any business is usually the cost of labor. Therefore, if you are trying to reduce expenses, the most significant impact can usually be felt by cutting labor costs. In the private sector, this has been going on for a number of years now as companies try to stay afloat. Sidebar - I realize that the US Postal Service may technically not be a government operation, but whether it is or isn't public sector is debatable.

If the USPS refuses to lay people off, I fail to see how it will resolve its financial woes. In fact it has been the USPS's antiquated employment practices that has led to strict regulations requiring them to pre-fund retirements (which has caused many to say the USPS has been set up to fail by the Federal Government). How precious is it that an entity so heavily dependent on the Federal Government for so many years finds itself frustrated by regulations imposed by the same Federal Government?

Back to the original point; the USPS seems to think it is okay to just move people around even though the work isn't there to support the number of employees. You don't have to be an Honor Grad of the Wharton School of Business to see the fallacy in that.