INTRODUCTION
Background of the Case Study of the
UNITES STATES POSTAL SERVICE
The evolution of the United States Postal Service is interlaced with the history of our federal government. Today, the Postal Service is the second largest civilian employer in the United States. It has over 700,000 employees, affects an economy that employs 9 million people and represents 8% of the United States gross domestic product in a $900 billion mailing industry (United States Postal Service [USPS], 2002b). This organization reaches every United States household and its operations are often perceived as an indication of the efficiency of the entire federal government as a whole.
After the historic gridlock of the Chicago Post Office in 1966, Postmaster General Lawrence O’Brien sought the political support of President Johnson for systemic change in the organization. President Johnson formed a “blue ribbon” commission of well-known business leaders and academia’s to study the Post Office Department. Their mission was to recommend how to change the Post Office Department and to also describe the best governmental organization model for its function. The President’s Commission on Postal Organization (Commonly called the Kappel Commission after its Chairman) presented the President with a plan in 1968, which lead to congressional testimony, but legislative action did not soon follow. Various factions, including the strong postal unions representing 740,000 votes, opposed the government corporation model. The unions vowed to fight any legislation supporting the change to a government corporation.
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On March 18, 1970 over 36,000 postal workers in New York City went on strike over wage disputes and another 152,000 postal workers from eight large cities across the nation followed within a week. President Nixon had to send in the military to move mail in New York City. This