Postal Privatization: A Disaster in the Making!

POSTAL PRIVATIZATION: A DISASTER IN THE MAKING!

Listen up, America! The U.S. Postal Service is under attack, and it's time to stand up and fight back! New polling shows that postal customers strongly believe that proposals to privatize the United States Postal Service should be marked “Return to Sender.” In a national survey of 1,402 registered voters, those surveyed oppose postal service privatization by an overwhelming 34 points. That's right, folks! The American people are saying NO to privatization!

WHY PRIVATIZATION IS A BAD IDEA!

1. HIGHER PRICES FOR EVERYONE! Privatized mail service means that mail delivery would be provided by private companies rather than a public postal service. And guess what? That means higher prices for mailing letters and packages. A recent Wells Fargo analysis indicates that USPS parcel pricing was approximately 25 percent to 60 percent below FedEx and UPS prices, depending on the product type, in the fourth quarter of 2024. Without competition from this public service, for-profit firms would jack up delivery fees on as many customers as possible. Who would be hit hardest? Most likely those who live or work in ZIP codes where private carriers already impose surcharges because deliveries to these addresses are less profitable.

2. LOSS OF UNIVERSAL SERVICE! The USPS has a universal service obligation to provide affordable deliveries to all Americans, regardless of where they live. This obligation ensures that even those in remote or less profitable areas receive mail service. Privatization could lead to reduced service in these areas, as private carriers are more likely to focus on profitable routes. For instance, UPS and FedEx already impose area surcharges on deliveries to addresses in ZIP codes where 102 million Americans live, including many rural and remote areas. This suggests that privatization could result in higher delivery rates and reduced service in these regions.

3. JOB LOSSES FOR POSTAL WORKERS! The USPS is the country's largest civilian employer of veterans and employs over 600,000 workers. Privatization could result in job losses, as private companies seek to cut costs and increase profits. This would have a disparate racial impact, as many postal workers are Black. For example, from 2017 to 2019, 26.8 percent of Postal Service workers were Black, compared to 11.5 percent of the private sector workforce during this time period.

4. CLOSING OF LOCAL POST OFFICES! In March, the brokerage firm Wells Fargo Advisors told Wall Street investors that privatization of the postal service “would be positive for FedEx & UPS. In order to stand alone and earn a reasonable return we estimate USPS would need to raise price by 30-140 %.” The Wells Fargo guidance also predicted that privatization would lead to closing, or as they term it, “harvesting,” neighborhood post offices. In the poll conducted by Hart Research Associates and North Star Opinion Research, those surveyed did not favor the closing of local post offices. In fact, 72 percent are opposed, according to the survey.

WHAT CAN WE DO TO SAVE THE USPS?

1. SUPPORT ALTERNATIVE REVENUE STREAMS! The USPS, which is funded primarily through the sale of stamps and services – not taxes, has other means of raising revenue that are not tied to raising prices, going private, or cutting services. Respondents to the Hart/North Star poll embraced a number of alternative, non-privatization policies that would strengthen USPS’s finances. As a means of boosting revenue, 77 percent favor making office supplies available for purchase in post offices (15 percent opposed). Other options: 72 percent favor making hunting and fishing licenses available for purchase in post offices (15 percent opposed) and 60 percent favor making magazines and newspapers available for purchase sale in post offices (25 percent opposed).

2. EXPAND FINANCIAL SERVICES! APWU President Dimondstein listed myriad more ways the USPS could increase revenue, such as being allowed to ship wine and beer. Also, the USPS could expand its financial services from just processing money orders to also handling check-cashing and wire transfers for customers. This measure would both raise revenues and help those without bank options, he said. Local post office parking lots could be used for public EV charging stations. Broadband services could be made available in communities that lack it.

3. STAND UP AND FIGHT BACK! The American people are saying NO to privatization! It's time to stand up and fight back against the Trump administration's plans to privatize the USPS. Sign the petition at usmailnotforsale.org/petition and let your voice be heard!

THE BOTTOM LINE!

Privatization of the U.S. Postal Service would have wide-ranging effects on customers, employees, businesses, and our broader economy. This report focuses primarily on one nearly certain result: a dramatic increase in parcel delivery prices. Without competition from this public service, for-profit firms would jack up delivery fees on as many customers as possible. Who would be hit hardest? Most likely those who live or work in ZIP codes where private carriers already impose surcharges because deliveries to these addresses are less profitable. Our analysis finds that UPS and FedEx area surcharges now apply to retail customers sending parcels to addresses in ZIP codes where 102 million Americans live. These include addresses in Hawaii, Alaska, and rural and remote areas, as well as many small towns and neighborhoods just outside major cities. These higher delivery rates are just a taste of what would come if the Trump administration succeeds in privatizing USPS.

So, America, it's time to stand up and fight back against the privatization of the USPS! Sign the petition, make your voice heard, and let's save the U.S. Postal Service for future generations!