Union Protest Against USPS Cost-Cutting Ignites Debate On Postal Reform

By Carolina Journal Staff

On Sunday, the National Association of Letter Carriers union organized demonstrations nationwide to protest DOGE efforts to find cost-cutting and management improvements within the US Postal Service. Seven locations in North Carolina were designated as protest spots, including Raleigh and Charlotte.

The protest follows a request for DOGE help by US Postmaster General Louis DeJoy of Greensboro. In a letter to lawmakers earlier this month, DeJoy said that the USPS’ dual mandates of being financially self-sustaining with universal delivery has made the need for reforms urgent. He said his own reform plan, the Delivery for America Plan, is stalled due to intense scrutiny from lawmakers, historic mismanagement, and layers of regulations.

The Postal Service generally receives no tax dollars for operating expenses and relies on selling postage, products, and services to fund its operations. More than 533,000 people are employed by the US Postal Service, including 11,000 in North Carolina.

In working with the Department of Government Efficiency, DeJoy said that USPS needs to review more than 30,000 retail lease locations, unfunded mandates from Congress, mismanagement of the USPS retirement and worker’s compensation plans, and an array regulatory burdens that DeJoy says interfere with the $78 billion service’s ability to operate efficiently.

In the letter DeJoy said that the Postal Regulatory Commission, established in 1970, “inflicted over $50 billion in damage to the Postal Service by administering defective pricing models.”  

“It is important to me that Congress and the public understand that the DOGE
engagement is not expansive but directed,” said DeJoy in the March letter. “As a hands-on leader of this organization for almost five years now, and one who has designed and implemented — with good progress — a cost and operational transformation of my own, I am not averse to offers of help that move us in in the direction we are already traveling.”

As part of the work with DOGE, DeJoy is moving forward with 10,000 staff reductions through voluntary retirement. DeJoy also announced his own retirement in February. He was appointed to the post in May 2020.

USPS efficiency has long been criticized. In the last fiscal year the agency lost $9.5 billion, up from $6.5 billion the prior year. Right after the November election, then-President-elect Donald Trump floated the idea of merging the agency with the US Department of Commerce.

Sunday’s protest by the NALC union dubbed the “Hell No” Day of Action was held to draw attention to fears that the US Postal Service could be privatized. Union leaders say privatization or reforms could lead to job losses and reduced service to rural communities, undermining the service’s public mission.

However, critics argue that the real risk is the continuation of a bloated, inefficient system that fails to meet the needs of a modern, fast-paced economy, and that embracing market-driven solutions and competition will ensure long-term sustainability.

“With the US Postal Service’s annual loss jumping from $6.5 billion to $9.5 billion — a whopping 46% — in a single year, something has to change,” said Mitch Kokai, John Locke Foundation senior political analyst. “The best solution might be to privatize the entire operation. If that’s not possible, some major restructuring must take place to put postal operations on a more sustainable path.” 

North Carolina’s right to-work status ensures that workers are not required to join a union as a condition of hiring or continued employment, fostering an environment where businesses and employees can negotiate freely.

“The NALC is ignoring this reality in an attempt to preserve a system that cannot continue as it is,” Kokai added. “This union protest reminds us of the importance of North Carolina’s status as a right-to-work state. Flexible labor markets help businesses avoid the systemic problems the Postal Service must deal with today.”