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Louis DeJoy became a household name last year when he, as Postmaster General, was criticized for delays in US mail, especially during a time when ballots in the mail were said to be critical in the presidential election.
While many of former President Trump’s allies have since moved on to think tanks or their own candidates for political office or even PSPCs, DeJoy remains the country’s Postmaster General.
It’s not that President Joe Biden or other Democrats are suddenly fans of Trump’s longtime donor, it’s thanks to the quirks of the way his post is filled.
His days in power are probably numbered, but in the meantime his opponents seem determined to make his life difficult. A congressional hearing is scheduled for next week and attendants confirmed that Postmaster DeJoy and others will be in attendance.
DeJoy’s appearances last year before Congress were marked by open hostility and fighting for everything from the future of the post to the cost of a postcard.
House Oversight Speaker Carolyn Maloney (D., NY) will lead the hearing and said in a statement this week: “If the Postmaster General was the CEO of another company, he would have already been fired. of his duties. “
“I can’t wait to see the work ahead”
DeJoy is set to release a 10-year plan in the next few days and recently said at a Postal Service Board of Governors meeting: “I can’t wait to see the work ahead.”
According to reports, his plan will include a change in first class mail that could slow delivery times. And that would add to the steep declines businesses and individuals have seen during the recent holiday season. The Washington Post collected data on recent lawsuits and found that only 38% of non-local first-class mail arrived on time at the end of December. The comparable figure for 2019 was 92%.
DeJoy says the reform he is undertaking “is not only necessary, it is long overdue.”
His opponents say the problem is him.
The reported plans would route first class mail on trucks instead of the faster airline route. “This is going to be really bad,” said Mitch Goldstone, CEO of ScanMyPhotos.com, of the impact on his business. His business relies heavily on the Post, and he says more delays reduce the goodwill he has with his “Our name is tarnished because people need deliveries instantly and it just isn’t happening,” he said. he declared.
A group of 77 lawmakers wrote in a recent letter to Biden that post office reforms may be needed, but “there is a plethora of evidence that Postmaster General DeJoy is not equipped to cope with the rigors of these challenges “.
In a statement, DeJoy told Yahoo Finance that his plan is “essential to successfully solving the problems that prevent the Postal Service from meeting the expectations of the American people for reliability, and result in billions of dollars in losses every year without end in sight. ” A recent USPS financial report projects a net loss of $ 9.7 billion in 2021 after a loss of $ 9.2 billion last year.
DeJoy said the plan is still being finalized and details will be released in the coming weeks. Details he has outlined so far include a commitment to continue delivery service six and seven days a week to every address in the country and also a plan to “meet our statutory requirement to be self-sufficient.”
A “ steep fall during the holidays ”
Goldstone co-founded his business – which requires sending photos back and forth by post – in 1990 and has long been a post office booster. At one point, he even appeared in a Postal Service ad. More recently he has become an open critic of DeJoy.
He said service had steadily worsened over the past year and 2020 ended with “a sharp drop over the holidays.” His business has been able to adapt, but a lot of companies can’t, Goldstone said.
According to a 2019 USPS report, 70% of the smallest businesses – those with fewer than 10 employees – regularly use the post office and spend an average of $ 359 per month on shipping. Goldstone companies and others like it have had to find ways around the downturns.
The additional cost to Goldstone’s business could run into the hundreds of thousands of dollars, he said. “I think what I’m going to do is wait and see if he quits or gets fired and if that doesn’t happen, then I’ll send him an invoice for all of our costs incurred,” Goldstone said. “I’m just surprised he didn’t just quit and disappear.”
At a recent Board of Governors meeting, DeJoy acknowledged the problems of the past holiday season. We have “disappointed the nation,” he said. “I apologize to customers who felt the impact of our delays.” Additionally, at that meeting, the board elected Ron Bloom, a Democrat, as the new head of the board in what could be the first of many changes.
‘There are a number of openings’
Biden has a way to eventually oust DeJoy, but it could take some time. The post of Postmaster General – in a move designed to protect him from politics – is controlled by the Postal Service Board of Governors.
DeJoy continues to have board support with a current panel consisting of two Democrats, four Republicans and three vacancies.
What Biden has the power to do is fill those vacancies. White House press secretary Jen Psaki responded to a recent question about DeJoy’s future during a press briefing, stressing: “There are a number of openings at the moment”, which she said would “make their way through a personal process.”
On Capitol Hill, several lawmakers are also pushing for DeJoy’s ouster. There was letter after letter after letter after letter calling on DeJoy to resign immediately and for Biden to fill the vacant board positions. Some even asked Biden to fire the existing board and name a whole new slate.
The hearing scheduled for next Wednesday will take place at the House Oversight Committee. DeJoy and Ron Bloom are about to testify. The overall purpose of the meeting is to provide an overview of postal reform being worked on by two Democrats on the committee – Gerry Connolly (D., Virginia) of Virginia and Carolyn Maloney.
Further, all parties expect members like Connolly – who chairs the government operations subcommittee, which oversees the post office – will question DeJoy about the service cuts.
“The Committee will not be delayed or deterred from passing significant reforms to help the long-term financial sustainability of the postal service,” said Maloney. “It is up to the President and the Senate to begin filling vacant seats on the Council.”
For his part, Goldstone told Yahoo Finance that he remains loyal to the Postal Service, if not its current leader.
Much of his current business, he says, is scanning photos that people need for virtual memorials for family members who have died from COVID-19. “At this critical time, businesses cannot run away from the postal service,” he said. “We trust them and that’s really important.”
Ben Werschkul is a writer and producer for Yahoo Finance in Washington, DC.
Read more:
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‘We see it here every day’: How a postal service slowdown affects small businesses (August 2020)
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