The U.S. Postal Service is currently facing a period of uncertainty following the resignation of Postmaster General Louis DeJoy. This news comes alongside comments from President Donald Trump and Elon Musk, head of the Department of Government Efficiency, suggesting the potential privatization of the mail service.
Postal workers’ unions have expressed strong opposition to the idea of privatization, organizing protests nationwide. While the unions support modernization efforts, including those initiated by DeJoy, they warn that privatization could be detrimental to the 51 million people in rural areas who depend on the Postal Service. National Association of Letter Carriers President Brian L. Renfroe voiced concerns at a panel discussion, stating that privatization would be a disservice to those the Postal Service aims to serve.
The future of the Postal Service may hinge on the selection of the next postmaster general. The U.S. Postal Service Board of Governors has hired a global consulting firm to lead the search for the new postmaster general and CEO. Currently, the USPS employs approximately 640,000 employees tasked with delivering mail across diverse geographical areas.
President Trump has proposed possibly placing the Postal Service under the Commerce Department, an executive branch takeover of the agency that has operated as an independent entity since 1970. He believes that such a move would improve efficiency and reduce financial losses. Although he did not mention privatization at a recent event, he has shown support for it previously, due to competition from companies like Amazon, UPS, and FedEx. Similarly, Elon Musk has advocated for privatizing entities wherever applicable, including the Postal Service.
Postal workers have been actively protesting the potential privatization, with demonstrations occurring across the country. Leaders like Renfroe aim to raise public awareness about the drastic changes being considered, emphasizing the importance of the Postal Service as a public entity providing equal service to everyone at uniform rates.
The Postal Service has been in a challenging financial position since its reorganization in 1970. While it primarily funds itself through customer fees, financial strains stem from declining first-class mail volumes and retiree benefits costs, leading to $87 billion in losses from 2007 to 2020. However, a recent quarter showed a $144 million profit attributed to DeJoy’s modernization initiatives. Union leaders hope that the incoming postmaster general will continue these efforts and explore additional services, such as basic banking and U.S. Census work, leveraging USPS’s extensive network.
This story was initially published on Fortune.com.
