Stephen Chapman`s recent column in effect endorsed legislation that I have introduced over the past 17 years, without success, to end the postal monopoly and permit competition.
I am now drafting a new bill to accomplish the same goal, but with the proviso that the post office be privatized by giving the employees full ownership of the corporation.
The track record of the post office in recent years is horrendous.
When the price of a first class stamp went up to 22 cents in February of 1985, it marked an increase of 47 percent in 47 months–and 633 percent since 1958. Service has fallen off as rates have soared. Former Postmaster Gen. William Bolger admits that mail is being delivered about 10 percent slower than it was 20 years ago.
Under my plan, all assets of the post office would be given to a corporation owned by the employees by establishing an Employee Stock Ownership Plan (ESOP) that will transfer the stock to the employees based upon seniority and rank. Regulations will ensure that rural service and general standards exceed current levels.
The new firm would be given a five-year grace period, during which it would face no competition. Thereafter, the monopoly would be abolished and free competition in all classes of mail would be allowed.
The existing unions would be given ownership in the firm, providing them with an incentive to work closely with management. It would be to their benefit to promote efficiency and good service. And the public and business community would see mail costs cut as private ownership and competition forced the new firm to cut costs, develop new technologies and improve service.
