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April 10, 2001
law

U.S. Postal Service Named "Porker of the Month" by Waste Watchdog Organization

On April 4, William J. Henderson, Postmaster General and CEO of the United States Postal Service (USPS) appeared before the Committee on Government Reform in the U. S. House of Representatives.

In his address, Henderson cited improvements in services that included an increase in on-time performance of overnight delivery of first-class mail from the low 80s to 93 percent or better. He also stated prior to fiscal year 2000, the Postal Service had four years in a row with net income. He acknowledged the impending financial loss and told Committee Members that the current system can not respond quickly enough to global changes in the marketplace. He stated that the current regulations do not provide incentives or tools for change and that reform is needed for the Postal Service to have long-term viability. Henderson plans to leave the Postal Service in May when his 3-year contract expires.

Following Henderson's appearance before the Committee, the nonprofit Citizens Against Government Waste (CAGW) issued a release that claims the U. S. Postal Service's Inspector General reports $1.4 billion per annum in waste, fraud and abuse. In the release they state that last year more than $200 million was spent on executive parties, large-scale junkets and generous annual bonuses. CAGW added that since 1980, despite falling postal demand, the Post Office has increased its workforce by 36 percent. And despite technology upgrades, the USPS productivity is expected to be about 0.7 percent this year. They also criticize the organization for not having a plan to repay its debt.

According to the statement on their Website, "For refusing to downsize its workforce, reduce waste, and make good use of its new technology; for attempting to raise rates and inappropriately expanding its mission; and for behaving like a bloated bureaucracy instead of a consumer-oriented business, CAGW awards the U.S. Postal Service its April Porker of the Month."

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse and mismanagement in government. Other "winners" of the awards are listed on the "Porker of the Month" Hall of Shame.



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