By: Todd Shields As Postal Service Faces Deficits
The U.S. Postal Service announced Monday that 23-year postal
employee John E. "Jack" Potter will be the troubled service's new
postmaster general. Potter, now the service's chief operating
officer, is to take office June 1, succeeding William Henderson
who is leaving after three years in the job.
Potter takes office amid increasing cries for postal reform. The
service, which says it is facing an annual deficit that could
reach $2 billion or more, recently imposed two rate increases in
six months and says it may need to ask for more rate increases
soon.
Newspapers and other businesses say the postal service needs to
better contain costs. Postal managers say they need more
flexibility in pricing, and point to rising fuel prices and
escalating labor costs as reasons for financial travails. The
Postal Service receives no tax money and is expected to break
even over time.
Significant changes in its governance will require Congressional
approval. The nine-member Postal Service Board of Governors chose
Potter for the job, which pays a salary of $161,200. The
appointment does not need Senate confirmation.
Todd Shields (tshields@editorandpublisher.com) is the Washington editor for E&P.
Copyright 2001, Editor & Publisher.
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