After Amazon Spat, Trump Orders Postal Service Review (1)

April 13, 2018, 8:09 PMUpdated: April 13, 2018, 8:35 PM

President Donald Trump is gathering recommendations about restructuring the U.S. Postal Service, days after he accused Amazon on Twitter of using the service as its “Delivery Boy.”

An executive order, issued April 12, calls for a new task force that will consider the views of USPS employees, mailers, and competitors as it forms recommendations to restructure the USPS and change the service’s current “unsustainable financial path.”

Fredric Rolando, president of the National Association of Letter Carriers, said he looks forward to providing input to the task force.

“We know that 90 percent of the Postal Service’s losses are not due to improper pricing, but are the direct result of the 2006 congressional mandate to pre-fund retiree health benefits 75 years in advance—an onerous burden that no other private or public entity in America is required to carry,” Rolando said in a posting on the union’s website. “NALC looks forward to working with the administration and Congress to address this issue and to restore financial stability to the agency while protecting the employees and the universal network that is so critical to Americans and their businesses, large and small.”

The White House didn’t immediately respond to a request for comment.

New Contract Ahead for Amazon?

The Postal Service’s current package delivery contract with Amazon expires at the end of the year, according to Lee Klaskow, a senior transportation analyst with Bloomberg Intelligence. It likely will be followed by another five-year contract with higher rates, he said.

The volume of first-class mail handled by the USPS has declined for about 15 years, Klaskow told Bloomberg Law April 13. “The growth in parcels is mitigating that,” mostly because of companies such as Amazon that use the service to deliver packages, he said.

The Postal Service’s 640,000 career and non-career employees are represented by four labor unions, including the NALC.

(Updated with additional reporting.)

To contact the reporter on this story: Louis C. LaBrecque in Washington at llabrecque@bloomberglaw.com

To contact the editor responsible for this story: Peggy Aulino at maulino@bloomberglaw.com

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