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Summary: The Postal Reorganization Act set four major goals for the Postal Service: (1) provide good mail service; (2) charge reasonable rates and fees for the service; (3) have postal revenues cover postal costs; and (4) bring the wages and working conditions of postal workers to levels comparable to those of the private sector. Although mail service is not as good as it was prior to the postal reorganization, it has been gradually improving. The postal rates for at least first-class mail appear to be reasonable when measured by the growing volume of such mail and by comparison with the cost of first-class postage in other countries. However, both second- and fourth-class volumes are declining, due largely to increased competition. The goal of self-sufficiency for the Postal Service appears to be the least likely to be achieved. Most of the losses which have been incurred in each year of operation have been attributable to the Postal Service's operating debt, especially increasing costs for workers' compensation. Although total employment has been significantly reduced, personnel costs have steadily risen. The Postal Service has done much to improve working conditions for its employees, and the compensation of postal employees has become comparable with that of the private sector both in terms of pay and benefits.
