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MENDOZA IN THE NEWS

U.S. Post Office Plans to Stop Saturday Mail Deliveries

by Angela Greiling Keane
Publication: Bloomberg

February 7, 2013


The following is an excerpt from an article in Bloomberg that quotes Jim O’Rourke, Teaching Professor of Management and the Arthur F. and Mary J. O'Neil Director of the Fanning Center for Business Communication about the U.S. Post Office stopping Saturday delivery. To read the entire article visit: U.S. Post Office Plans to Stop Saturday Mail Deliveries


The U.S. Postal Service, demonstrating the depth of its financial abyss, set up a possible showdown with Congress by saying it will stop mail service on Saturdays regardless of whether lawmakers approve.

The Postal Service has called for cutting a day of delivery since 2009, when it was coming off a $2.8 billion loss the previous year. After waiting three years for Congress to pass postal reform legislation, and seeing losses rise to $15.9 billion last year, Postmaster General Patrick Donahoe is relying on a new interpretation of the law to declare he doesn’t need Congress’s permission.

....

Cutting Saturday delivery doesn’t eliminate the need for Congress to act to cut more costs, said James O’Rourke, a University of Notre Dame management professor.

“This is the first salvo in what will be a long and repeated series of exchanges between the Postal Service and the Congress,” he said in an interview.