The USPS released their financials for first fiscal quarter of 2012 (click here to view financials).

For those who don’t want to read the article, here are the highlights, or as I prefer to say, the lowlights.

A net loss of $3.3 billion for the Quarter

• Follows a net loss of $5.1 billion for fiscal 2011
• The loss for 2011 would have been $10.6 billion but legislation was passed to postpone payment of $5.5 billion to pre-fund retiree health benefits
• Also postponed is a consolidation of the postal network that would save $2-3 billion
• Total mail volume is down 6%
• Operating revenue down 1.1%
• First Class mail revenue was down 4.1 percent year-over-year
• First Class mail volume is down 15-25% since peaking in 2006
• Mail, excluding First Class was down 2.9%
• $8.5 billion loss in 2010 and $3.8 billion in 2009

One of the more interesting tidbits is that the USPS has a plan for rationalizing its network and closing down 252 of 487 mail processing center, but agreed in December agreed to delay the closing of any Post Office or mail processing facility until May 15, 2012.  That decision was made in response to a request made by multiple U.S. Senators.  An industry consultant predicts that due to upcoming elections, that May 15^th day will be pushed back post-election.

Are you kidding me?  Is this really happening?  Now, I don’t want to see anyone lose their job whether that be in private industry or the government, but common sense tells me that changes are needed and not after the election. Now!  We all know that if these circumstances were present in private industry, changes would happen so fast it would make our heads spin.

While many think the government can’t run anything correctly, the fact is the leadership of the USPS has plans but politics are getting in the way of making hard, but necessary changes.  One consultant suggests that the USPS should simply raise its rates to cover its costs.  That would mean rates would have to go up 50% or more, and with those prices there would be further erosion of business.

I have two very novel ideas.  The first would pass legislation (if that is really necessary) that dictates the USPS operate as a real for-profit business.  The USPS has an infrastructure that could be leveraged several ways to increase revenue  and ultimately customer satisfaction.  The other idea would be to privatize it.  Have a real company run it. I can guarantee you that a for-profit company would run the USPS in such a way that it would turn a profit and that the rates for service would be competitive.

The only other option is to continue running it as subsidized service so all Americans can enjoy USPS service at great rates.  It can simply stand in line behind Medicare, Medicaid and Social Security to have the government bail it out.