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USPS Political and Legal Barriers - Research Paper Example

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The two share common interest with the most distinct boundary that spans more than 8000 kilometers long. The relationship of these nations is extensive and closest in the world. This is well seen in…
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USPS Political and Legal Barriers
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Download file to see previous pages In the different fields varying from security and law enforcement to protecting the environment to free trade, Canada and the United States work together closely on different levels, from federal levels to local levels.
The United States Postal Service (USPS) is an organization that provides global postal services to clients worldwide with an average delivery of more than 563 million mails (Joseph, 2010). It provides delivery to inaccessible places and free return if the recipient is not established. Despite USPS providing economical services, the long term growth has declined. The following table shows the cost and revenue trends of USPS from 2004 to 2012;
There are main problems being faced by USPS. First, the use of computer gadgets and the advancement of computer technology in communication in both Canada and the U.S., such as smart-phones and use of social media have resulted to increase in paperless communication which results to decline in the need of postal services and decline in the First-Class mail thus reducing sales in both countries.
Secondly, the existence of the U.S. federal law that requires USPS to pre-pay more than $5.5 Billion, as benefits cost to the federal government since majority of the employees are under the government’s retirement system has made the organization to pre-fund the retiree health benefits since it is expected to have over $ 8 Billion deficit and therefore has. In this regard, Canadian and other foreign employees are on the losing side since the U.S employees are expected to benefit from this (Globerman & Shapiro, 2003).
Third, USPS has many high cost retail units. This poses a problem since the organization cannot close down these units due to U.S. federal bureaucracy that makes the process long, and the resistance by both local and foreign postal workers due to the threat of retrenchment. The organization therefore has resulted to biased closure of some retail units which affects its operation with ...Download file to see next pagesRead More
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