USPS cuts employee hours in response to mail volume loss

Share this article:

Due to initiatives to reduce work hours and overtime, compensation expenses for the US Postal Service dropped by $247 million — or about 2.5% — in the third quarter compared to the same period last year, according to a financial report that the USPS has filed with the Postal Regulatory Commission.

The cuts in employee hours were in response to mail volume decreases, the agency said. The filing also said that new labor agreements implemented in 2007 allowed for a reduction in overtime hours and overall labor rates.

Earlier this month, the USPS reported a net loss of $1.1 billion for its third quarter ending on June 30. According to the USPS, total mail volume was down 5.5% in Q3 of 2008 compared to Q3 of 2007. The impact of lower mail volume coupled with the organization's efforts to reduce overtime hours decreased total work hour usage by 16 million hours in Q3, the USPS said.

The USPS said that the decrease in volume is the result of a slow down in the economy, “particularly the financial and real estate sectors, which are heavy users of the mail,” in the filing.

Share this article:

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Direct Mail

Ricoh Strikes a Blow for Multichannel on a Small Scale

Ricoh Strikes a Blow for Multichannel on a ...

The company introduces a creative service to help print shops augment direct mail with email and pURL landing pages.

Delivered: Insurance Mailers

Delivered: Insurance Mailers

What's in our mailbox this month: Insurance mailers. See which ones cover all their bases—and which ones, not so much.

Marketing Challenge: Defending Direct

Marketing Challenge: Defending Direct

The new CEO wants to cut direct mail because of postal increases—even though DM is great for ROI. What would you do? Email your answers to by June 30 ...