
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, May 10, 1990                   TAG: 9005100143
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A6   EDITION: METRO 
SOURCE: The Washington Post
DATELINE: WASHINGTON                                LENGTH: Short

REPORT: POSTAL SERVICE PRODUCTIVITY LAGGING

Although it has made a billion-dollar effort to automate mail handling operations, the U.S. Postal Service has failed to significantly boost its productivity since 1982, according to a government report released Wednesday.

The study by the Postal Rate Commission, an independent agency that approves postal rates, illustrated why the Postal Service has been unable to hold down labor costs and, as a result, is seeking to boost the price of mailing a first-class letter from 25 to 30 cents. It also underscored the difficulty that postal executives have had introducing automation to what has been one of the government's most labor-intensive operations and one where workers long have been represented by powerful labor unions.

The new study found that "virtually all" of the Postal Service's modest productivity gains during the 1970s can be attributed to hiring freezes rather than technological improvements. It said the gains were well below those of private industry and government agencies and were held down by the generous labor contracts postal workers won.

by CNB