Sunday, September 6, 2020

The Postal Service Can Handle Mail-In Voting. What Happens After the Election? - Bloomberg

The Postal Service Can Handle Mail-In Voting. What Happens After the Election? - Bloomberg





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DeJoy Has a Plan for the USPS, and the Election Got in the
Way
If Trump wins, his new postmaster general wants to
fundamentally reshape the service. Heads up, Alaska.
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 Postmaster General
Louis DeJoy PHOTO ILLUSTRATION: 731; PHOTOGRAPHER: TOM WILLIAMS/REUTERS
By September 2, 2020, 10:00 AM GMT+1

If there’s one thing Kenny Montgomery thought he could
always count on, it was the arrival of the U.S. mail. He’d delivered it himself
during heat waves and blizzards in Rochester, N.Y. He trudged through the city
with a mail sack over his shoulder during the 1991 ice storm that closed
businesses and government offices and left residents cowering in their homes
without power. They might not have been able to turn on the lights, but they
got their mail.

Last month, however, on the morning of Aug. 1, Montgomery,
president of the local branch of the National Association of Letter Carriers
(NALC), saw his faith shaken. Almost 120 of his members reported to the city’s
eight post offices, he says, and found that trucks had brought them packages
from processing plants but not a single piece of what he classifies as mail. No
letters, no bills, no postcards, greeting cards, magazines, catalogs, or
fundraising appeals. “This is my 33rd year of service,” he says. “There are
light days and there are heavy days, but I have never experienced a day where
no mail shows up.”

That’s when Montgomery began to fear for the future of the
245-year-old U.S. Postal Service. If this was the service Americans could now
expect, why wouldn’t they turn to FedEx Corp., United Parcel Service Inc., or
some other private operation that brings things to their doors? “If this continues,
we’re going to lose the confidence of our customers,” he says. “It snowballs
from there.”

Montgomery says he knows who’s to blame: U.S. Postmaster
General Louis DeJoy, a former logistics company executive and financial
supporter of President Trump, who took over the agency on June 15. DeJoy has
said he wants to transform the Postal Service, which is facing an $11 billion
loss this year. Widespread incidents of delayed mail have given rise to
theories that DeJoy wants to disrupt the fall election on behalf of the
president, who has called the USPS “a joke” and questioned its ability to
handle an anticipated surge in voting by mail this fall. So has the Postal
Service’s decommissioning of 671 mail-sorting machines across the country and
the recent removal of 700 collection boxes. “They were caught red-handed doing
this, and the whole country is in an uproar,” U.S. Representative Jamie Raskin,
a Democrat from Maryland, said on Aug. 20 at a hearing held by the
Congressional Progressive Caucus, a group of liberal Democrats.

Two days later, Democratic Speaker of the House Nancy Pelosi
called her chamber back from summer recess to pass a bill to roll back changes
that have taken place during DeJoy’s brief tenure. It also contains a $25
billion cash infusion to cover the USPS’s Covid-related losses, a standing
House request since the spring. There’s little chance the Republican-controlled
Senate will take up the bill, and even if it did, Trump would likely veto it.
In yet another attempt to call into question the Postal Service’s competence,
he’s argued that without these funds there’s no chance the USPS can handle the
expected mountain of postal ballots. “If we don’t make a deal, that means they
don’t get the money. That means they can’t have universal mail-in voting,” he
told Fox Business on Aug. 13.

This much is certain: The USPS can handle the election. The
agency delivers 433 million pieces of mail a day, almost half the world’s
volume. The total amount of election mail expected this year will amount to
less than 2% of its total flow from mid-September to Election Day. “It’s
literally a drop in the bucket,” says Paul Steidler, a senior fellow at the
Lexington Institute, a conservative think tank, who studies postal issues.

The removal of mailboxes and sorters isn’t as ominous as it
might appear, either. It’s normal procedure for the USPS and a direct response
to the collapse of mail volume. Total volume has fallen 33%, to 142 billion
pieces annually, since it peaked in 2006. Volume for the service’s most
profitable product, first-class mail, has fallen 44%, and the pandemic has only
steepened the decline. Meanwhile, with stores closed and so many people at
home, package delivery rose 50% from April through June. The Postal Service is
struggling to keep up with Christmas-level loads at a time when Covid-19 has
sidelined many of its workers.

DeJoy is focused on a single initiative: getting Postal
Service trucks to run on time

In short, it might not be the most fortuitous time to make
major alterations to the USPS. But that’s not stopping DeJoy. For all the
allegations that have been made about him, the truth is simpler. He’s a guy
from the business world who’s trying to impose the kind of disruptive changes
on a federal agency that might be applauded in the private sector but are
guaranteed to provoke a backlash in Washington.

Although the Postal Service is required by law to break
even, it’s hardly a business. It was created to help democratize the country by
binding it together. Because of this, you can send a letter from anywhere in
the country to Alaska for 55¢. As has been noted many times, it might be the
greatest bargain on Earth—and one that no private company would offer.

In the name of saving the USPS, DeJoy is mulling changes
that not only would affect delivery but could also undermine the service’s
mission. Even in the best of times his moves might have eroded public
confidence in the agency. Coming now, at a time of intense politicization, with
the integrity of the election at stake, they could lead to something worse.

As a business executive committed to showing a federal
bureaucracy a thing or two about efficiency, DeJoy isn’t unlike former airline
executive Richard Anderson, who put Amtrak on a path to profitability but
resigned in April after a little more than two years of battling members of
Congress and rail enthusiasts. Or perhaps a better example is Marvin Runyon,
aka “Carvin’ Marvin,” a onetime auto industry executive whose tumultuous
six-year stint as postmaster general was marked by staff departures, mail
screw-ups, and a federal investigation of his involvement in talks to put
Coca-Cola machines in post offices when his family held shares in the company.

DeJoy’s ambitions dwarf what those men had in mind. During
an appearance on Aug. 21 before the Senate Homeland Security and Governmental
Affairs Committee, he confirmed a report in the Washington Post that after the
election he’ll pursue what promises to be a wrenching transformation of the
USPS involving slimmer discounts for nonprofit mailers, higher package rates,
and increased delivery prices for distant places such as Alaska, Hawaii, and
Puerto Rico. “We’re considering dramatic changes to improve the service to the
American people, yes,” he said.

Specifically, DeJoy said he was eyeing the Alaska Bypass, a
USPS program that uses bush pilots to fly not only mail but also food to areas
of the state not accessible by roads. The Alaska Bypass is one of those extraordinary
things the USPS does in the name of connecting the country. DeJoy complained
that it cost $500 million a year. The number seemed steep: A spokesman for
Alaska Senator Dan Sullivan, a Republican, says the program’s cost last year
was actually $123 million. Either way, DeJoy’s comments raised questions about
the postmaster general’s commitment to parts of the country that are more
expensive to serve.

For now, however, DeJoy is focused on a single initiative:
getting Postal Service trucks to run on time. “FedEx and UPS, everybody runs
their trucks on time, right?” DeJoy testified. “That’s what glues the whole
network together.” Perhaps, but FedEx and UPS deliver 16 million and 22 million
items a day, respectively, a sliver of the Postal Service’s volume, and have no
similar public service responsibilities.

DeJoy’s critics have frequently said he lacks experience
with the USPS and is therefore unqualified, but that’s untrue. Born in
Brooklyn, N.Y., he grew up around the logistics business. His father ran a
small trucking company on Long Island. DeJoy seemed destined for a different
career, getting an accounting degree from Stetson University in Florida and
working for a time as a certified public accountant. He returned to New York,
though, in 1983, after his father was injured in an assault by two business
rivals. DeJoy took over the family business, which became known as New Breed
Logistics, and moved it in the early 1990s to High Point, N.C.

The turning point for New Breed came when it won a contract
to provide logistics support for USPS mail-processing centers, refurbishing and
transporting mail-sorting equipment. DeJoy parlayed the deal into business with
clients such as Boeing, Walt Disney, and Verizon Communications. “If you have a
Verizon phone, I shipped it to you,” he told an audience several years ago at
Elon University in North Carolina, where he’s a board member.

DeJoy assiduously avoids publicity. (He declined to be
interviewed for this story.) “He’s a pure numbers and operations guy,” says
former North Carolina Governor Pat McCrory, a friend of DeJoy’s. “He doesn’t
like BS. He doesn’t give BS, and he doesn’t take it.” DeJoy’s waspishness was
evident when he testified before the House and Senate in August, mocking his
questioners for failing to do more to help the USPS.

“The USPS will no longer use excessive cost to get the basic
job done. If the plants run late, they will keep the mail for the next day”

In 2014, DeJoy negotiated a deal to sell New Breed, which by
then had 6,800 employees, for $615 million to XPO Logistics Inc., a company
that provides trucking support for the USPS during the holiday season peak.
DeJoy stuck around for a year to run XPO’s North American supply chain
business, then joined the board before stepping down two years ago. He still
holds more than $25 million worth of stock in XPO, a holding he says the USPS’s
ethics department vetted.

DeJoy also got involved in politics. Along with his wife,
Aldona Wos, he’s given a total of $2.6 million to Republican politicians and
causes. He also hosted fundraisers for George W. Bush in 2006 and Trump in
2017. “I certainly don’t see myself running for public office,” DeJoy told a
local business journal in a rare interview four years ago. “That’s just not my
thing, although I love politics. I love supporting candidates.”

This pastime wasn’t without its rewards. Wos, a physician,
served as U.S. ambassador to Estonia under Bush, and Trump has nominated her to
be the U.S. ambassador to Canada. DeJoy was selected for a position first held
by Benjamin Franklin.

In one sense, DeJoy is a throwback to another era at the
agency. For much of its history, the postmaster general was picked by the
president. Usually the job went to a political operative who then handed out
postal jobs to party loyalists. The shining example would be Franklin
Roosevelt’s postmaster general, James Farley, who ran the Democratic National
Committee while simultaneously approving stamp designs.

Because of mediocre management by patronage hires, the
nation’s mail delivery operation almost unraveled in the 1960s. That prompted
President Richard Nixon to sign the Postal Reorganization Act of 1970, creating
the newly christened USPS, an independent agency whose chief executive officer
would be selected by a bipartisan board of nine presidentially appointed
governors. No more than five could belong to the same party. For the next 50
years, there would be no postmasters general with close ties to the White
House.

Under Trump, that changed. The president appointed a Republican-dominated
board willing to name one of his top fundraisers to run the agency. The move
was bound to create suspicion. Who would be running the agency—DeJoy or his
friend in the White House?

The new postmaster general sounded excited, in his own
particular way, on his first day on the job, June 15. “As you will soon
discover, I am direct and decisive,” he said in a video to his new employees,
sounding like a CEO who’d just completed a hostile takeover. “I don’t mince
words, and when I see problems, I work to solve them.” As he would later
testify before the House and Senate, he immersed himself in postal issues,
becoming fixated with trying to find operational efficiencies. They’d have to
be significant ones. As his predecessor, Megan Brennan, told Congress last
year, the Postal Service’s financial woes had caused it to default on $48
billion of mandated health-care prepayments for future retirees since 2012.

DeJoy tried to operate quietly, as he’d done at New Breed.
But that’s not easy at the USPS, which has more than 630,000 employees, many of
them represented by various unions. In July internal USPS memos surfaced
warning of major delivery disruptions to come. One of them, described as a “mandatory
stand-up talk” meant to be given by managers to the rank and file, said late
delivery runs from distribution centers to branch offices would no longer be
allowed. “One aspect of these changes that may be difficult for employees is
that—temporarily—you may see mail left behind or mail on the workroom floors or
docks,” it said. In other words, trucks might now depart without all the mail
in the building. That contradicted what union leaders say was the USPS’s
longtime practice.

Another memo, titled “PMG’s [Postmaster General’s]
Expectation and Plans,” said overtime was being eliminated. “The USPS will no
longer use excessive cost to get the basic job done. If the plants run late,
they will keep the mail for the next day,” it said.

DeJoy’s critics point out that overtime spending was up
because of high rates of absenteeism. “In a pandemic, overtime is not a nice
thing to have,” says U.S. Representative Gerry Connolly, a Virginia Democrat
and member of the House Committee on Oversight and Government Reform. “It’s
essential to getting the job done. Forty thousand postal workers have come down
with Covid-19 or been quarantined. Forty thousand! That means there are worker
shortages all around the country.”

Connolly and other committee members sought answers from
DeJoy about the memos and were told in a letter from USPS General Counsel
Thomas Marshall that because neither had originated from the Postal Service’s
headquarters, they “should not be treated as official statements of Postal
Service policy.” The stand-up talk was produced by the leadership of the
agency’s southern area between Florida and Texas, Marshall wrote, whereas the
musings about DeJoy’s expectations were prepared by a “midlevel manager.” Even
so, DeJoy had clearly conveyed a philosophy, and it was guiding managers.

In Rochester, the NALC’s Montgomery started getting calls
from customers who wanted to know the whereabouts of their late packages. He
says he toured the local plant and saw mail carts overflowing with parcels. Rob
Stahl, an electrical technician at the facility and president of the local
American Postal Workers Union chapter, says that’s been the case since area
managers implemented DeJoy’s new plan. “They came down and said that the trucks
leave on time no matter what,” Stahl says. “Sometimes they leave empty.”

Paul Hogrogian, president of the 44,000-member National
Postal Mail Handlers Union, says he discussed this problem with DeJoy in late
July and the postmaster general was unworried: “He’s insisted, ‘We have to make
the trucks run on time. We’ll get the mail to the platform eventually.
Temporarily, there may be some unintended consequences, but we’ll get it to
work.’ ”

Publicly, the postmaster general said little, which was
probably ill-advised. He was, after all, someone who’d donated $1.2 million to
the Trump Victory fund, which is devoted to reelecting a president who was
discouraging people from voting by mail.

On July 29 there were outraged cries from Democratic leaders
when Marshall sent letters to 48 states and the District of Columbia warning
that “certain deadlines for requesting and casting mail-in ballots are
incongruous with the Postal Service’s delivery standard.” In a state such as
Montana, he noted, voters can request ballots from election officials as late
as the day before the election. Marshall advised states to urge residents to
ask for them early.

He also recommended that states send blank ballots to voters
via first-class mail, which arrives in two to five days, rather than via the
cheaper option of marketing mail, which takes as long as 10 days. As with other
moves under DeJoy, it might have been interpreted differently in a different
time; Marshall had sent out a similar warning in May, before DeJoy took over,
and no one seemed to take offense. “I mean, it’s so normal,” says Paul Vogel, a
former USPS chief marketing officer who oversaw vote-by-mail operations from
2010 to 2013. “Especially if there are states that don’t [vote by mail]
traditionally.” Nevertheless, a half-dozen states cited the new letters, along
with the vanishing mailboxes, in lawsuits accusing DeJoy of scheming to
suppress the mail-in vote.

At a USPS board meeting on Aug. 7, DeJoy vowed that the
Postal Service would do whatever it took to safeguard voting by mail. He
dismissed allegations that he was taking orders from Trump. He remained
circumspect, however, about the changes he was making, speaking only vaguely
about how he was trying to get the USPS to stick to its schedule and avoid
unnecessary overtime. As for delays, he said they were “isolated operational
incidents.”

DeJoy’s assurances did little to quell the furor. Nor did
his attempt to assuage his critics by halting the removal of sorting machines
and mailboxes until after the election. Protesters congregated outside his
homes in Greensboro, N.C., and Washington, beating drums and calling for him to
be removed. Ronnie Stutts, president of the 115,000-member National Rural
Letter Carriers Association, visited the postmaster general at USPS
headquarters around this time. “He was almost in tears,” Stutts recalls, adding
that DeJoy said, “I’ve had to hire a bodyguard to escort my daughter to and
from school. She’s really upset with me. She’s asking me, ‘Why are you doing
this, Daddy? Why would you do this?’ ”

Most Americans didn’t get their first look at DeJoy until
late August during his appearances before Senate and House committees. As much
as he tried to be polite, he often came across like someone who’s rarely had to
explain himself and was offended by the very idea of being interrogated by
people who’d never run a business. Asked by one congressman why he didn’t just
leave all the sorting machines in place until after the election, DeJoy
replied, “In Washington it makes plenty of sense. To me it makes none.”

DeJoy tried to portray what he’d done in his short stint at
the USPS positively, saying on-time trucking dispatching had risen from 89.4%
to 97%, which he predicted would lead to annual savings of $1 billion.
Democrats, on the other hand, produced internal USPS documents showing that
since DeJoy had taken over, on-time delivery of all classes of mail had
plummeted, in some cases by 7% or 8%. DeJoy said he had a mitigation strategy,
but it wasn’t working as quickly as he’d expected. “I’m trying to figure that
out,” he said.

At any rate, the postmaster general told the House oversight
committee, he couldn’t be blamed for everything that went wrong at the USPS.
“I’m not the COO,” he said. “I’m the CEO of the organization.” Republicans were
understanding, but Democrats proclaimed astonishment. “You’re supposed to be a
logistics expert, right?” asked Democratic U.S. Representative Jimmy Gomez of
California. “I think it’s time for you to resign, not because necessarily there
is this grand political conspiracy, but just the incompetence that we’ve seen
when it comes to the Postal Service.”

DeJoy seems to understand that he’ll never transform the
USPS as long as it’s engulfed in controversy. He testified to the House
committee that, yes, he’d had contact with some of his friends in the Trump
campaign. But it was to ask them to do something about the president’s
unceasing attacks on vote-by-mail. “I’ve put the word out to different people
that this is not helpful,” DeJoy said.

In late August the USPS released a report showing that
on-time delivery for most mail categories had started to recover. DeJoy has
been filming a public service address with union leaders, some of whom fear the
service’s reputation is being damaged by the controversy. “We’re doing a video
showing the American public that voting by mail is safe and that the Postal
Service is ready, willing, and able to process ballots,” says Hogrogian, of the
National Postal Mail Handlers Union. “I think a joint message is good. There’s
been enough negative press generated by the White House that we can’t handle
it.”

If the attacks on mail-in voting discourage a large number
of people from casting ballots, effectively disenfranchising them, the
implications go beyond the vote count. What could make people more cynical
about an institution that has been a democratizing force for 245 years? This
jadedness could lead to Americans no longer supporting its mission—and once
that happens, why not charge more for a letter to Alaska? Or why deliver mail
at all in sparsely populated parts of Montana and North Dakota, where sometimes
postal workers can carry every letter from their route in their shirt pockets?
When the time for that logic arrives, the postmaster general has a plan.



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