The management bonus pay system should be tied exclusively to the size of the yearly operating surplus, and distributed to employees only if a surplus materializes. The current EVA bonus system measures too many factors unrelated to the marketplace and irrationally guarantees rewards in advance of demonstrated bottom-line performance. Under the Service's ODIS measurement system average delivery times were 1.68 days in FY 1981, 1.83 in FY 1991, and 1.93 for the most recent four quarters. The Postal Service should be required to develop service standards for all mail classes, measure that performance, and make such data public. The Postal Service should not be allowed to improve its bottom line by imposing additional costs on mailers through inferior service.
Truthful information is a powerful source of marketplace competition.
I have been publicly critical of past Postal Service advertising for its pricey Priority Mail product. First-class mail can be far cheaper, and often faster. Further, evidence uncovered during our last rate case showed the Postal Service often did not handle certified mail the way it advertises. Congress should further direct that the Service rethink its retail operations. If the Service can get stamps into the hands of consumers more cheaply by using electronic stamps on the net, contract offices or grocery stores, it should be allowed to sell the stamps at a discount to support such transactions.