Summary: Several continuing challenges facing the U.S. Postal Service include improving productivity, controlling costs, enhancing revenues, and improving labor-management relations. Long-term increases in productivity will be essential for the Service's future success. The Service recently reported that its productivity for fiscal year 2000 through mid-August had increased 2.2 percent. Although the largest increase since 1993, it would translate into a cumulative increase of 1.5 percent over the past decade. Questions for continued oversight include how and when the Service expects to achieve breakthrough productivity. Another issue is whether the Service, unions, and management associations will be able to find common ground to address long-standing problems in the workplace that may impede the Service's ability to improve productivity. GAO also has continued concern about the quality and transparency of the Service's performance information. Other stakeholders have also raised concerns about the potential effect of competition--particularly from the Internet--on universal postal service.
