Find the latest episode of "The Uncertain Hour" here. Listen

Outsourcing, it’s in the mail

Jill Barshay Jul 13, 2007
HTML EMBED:
COPY

Outsourcing, it’s in the mail

Jill Barshay Jul 13, 2007
HTML EMBED:
COPY

TEXT OF STORY

Scott Jagow: Yesterday, the U.S. Postal service reached a new five-year labor contract with its mailmen and women. The two sides agreed to stop giving city delivery routes to private contractors for the next six months. Jill Barshay has more.


Jill Barshay: Two years ago, just 2 percent of the nation’s deliveries were handled by private mailmen.

But the postal service is under pressure to cut costs. It’s handing more delivery routes to private contractors. Murray Comarow was an executive director of a presidential postal reform commission.

Murray Comarow: Any time the postal service can save a dollar through lower labor costs, that tends to hold down the price of a stamp, because 80 percent of the cost of a stamp goes to labor.

Bill Young is the president of the National Association of Letter Carriers. He says the postal service just wants to avoid paying benefits.

Bill Young: That’s just a way of forcing people to work without health insurance and without retirement.

Postal unions and management will now sit down to try to agree on where to use private contractors in the future.

In New York, I’m Jill Barshay for Marketplace.

News and information you need, from a source you trust.

In a world where it’s easier to find disinformation than real information, trustworthy journalism is critical to our democracy and our everyday lives. And you rely on Marketplace to be that objective, credible source, each and every day.

This vital work isn’t possible without you. Marketplace is sustained by our community of Investors—listeners, readers, and donors like you who believe that a free press is essential – and worth supporting.

Stand up for independent news—become a Marketplace Investor today with a donation in any amount.