USPS delays implementation of five-day service

Noting its disappointment, the U.S. Postal Service Board of Governors has delayed implementation of five-day delivery service following action taken by the U.S. Congress.

The board contends that as part of a continuing resolution to fund government operations, Congress included restrictive language prohibiting the USPS from instituting its five-day service plan, which would have gone into effect Aug. 5, according to a news release.

In ending Saturday service for standard mail delivery, the Postal Service had expected to produce savings of $2 billion per year.

"Although disappointed with this congressional action, the board will follow the law and has directed the Postal Service to delay implementation of its new delivery schedule until legislation is passed that provides the Postal Service with the authority to implement a financially appropriate and responsible delivery schedule," the board wrote in a statement. "The board believes that Congress has left it with no choice but to delay this implementation at this time."

To keep up with worsening financials, the board has directed management to reopen negotiations with postal unions and consultations with management associations to reduce workforce costs, and to take further cost-saving measures as needed. The board also is looking into increasing rates on products not covering their costs, the release said.

In November, the Postal Service announced a fiscal 2012 net loss of $15.9 billion, a record loss for the entity. The body's fiscal year ended Sept. 30.