Key Takeaways
• New U.S. Postal Service Head: David Steiner, a FedEx board member and former Waste Management CEO, has been appointed as the next postmaster general.
• Union Opposition: Major postal unions strongly oppose Steiner’s selection, viewing it as a conflict of interest and a step toward dismantling the public postal service in favor of private industry interests.
• Financial Struggles: The USPS continues to face significant financial losses, and with several vacancies on the board of governors, the White House retains considerable influence over the agency’s future direction.
The USPS Board of Governors has picked its new postmaster general, and it doesn’t exactly assuage fears of privatization for the postal service.
David Steiner, former CEO of Waste Management and, perhaps most crucially, a member of the board of directors of FedEx since 2009, will be the 76th postmaster general and CEO, pending background and ethics checks.
Steiner’s appointment follows the semi-abrupt resignation of former Postmaster General Louis DeJoy, who officially resigned in March after announcing his plans to leave the office with a somewhat scathing indictment over the postal service’s perceived failures in turning a profit.
While on his way out, DeJoy made an agreement with the Department of Government Efficiency, sparking further concerns that the USPS would be privatized or absorbed into the Department of Commerce, which the Trump administration has thrown around as a real possibility.
The appointment of someone from the private sector, specifically one of the USPS’ primary competitors, has sounded alarm bells for postal workers.
“His selection isn’t just a conflict of interest, it’s an aggressive step toward handing America’s mail system over to corporate interests,” Brian L. Renfroe, president of the National Association of Letter Carriers, told the Associated Press after Steiner’s appointment. “Private shippers have been waiting to get USPS out of parcel delivery for years. Steiner’s selection is an open invitation to do just that.”
Renfroe also told The Washington Post that Steiner’s appointment is “an unmistakable push to hand business over to private shippers.”
Mark Dimondstein, president of the American Postal Workers Union, told the AP that Steiner is “the last type of person” that the postal service should put in place to preserve the mailing package industry in the U.S.
“FedEx has a very different agenda than the public postal service,” he said. “And they’re a major competitor of the United States Postal Service.”
Steiner, for his part, said in a statement put out by the agency that he values the USPS’ independent status.
“I deeply admire the public service and business mission of this amazing institution,” he said, “and I believe strongly in maintaining its role as an independent establishment of the executive branch.”
He also said he looks forward to working with USPS union members, who have been vocal in their opposition to privatization or absorption into the Department of Commerce.
“As the entity with the largest union membership in the United States, I look forward to engaging with the unions and management associations to ensure that together we create a world-class employment experience,” Steiner said. “I also look forward to working with industry associations, customers, and policymakers, as we chart a positive path forward.”
The Washington Post reported that Steiner was one of three final candidates alongside Jim Cochrane, head of the Package Shippers Association, and William Zollars, former postal governor and president of trucking company YRC.
President Donald Trump reportedly met with Cochrane and advised the USPS to hire him to a different senior role within the USPS.
Trump will still very much have his hands in the future of the USPS, even as it remains independent of the White House. As The Post reported, USPS governors are appointed by the president and confirmed by the Senate for seven-year terms. The board currently has four vacancies, along with another that is only temporarily occupied. With the president essentially hand-selecting the board majority, the White House will have a level of control, if by proxy, over the agency’s decisions regarding pricing and delivery standards.
Steiner is anticipated to begin his tenure as postmaster general in July.
“Dave is the right person to lead the Post Service at this time to ensure the magnificent and historic organization thrives into the future,” Amber McReynolds, chair of the Postal Service Board of Governors, said in the press release. “Dave is a highly regarded leader and executive with tremendous vision, experience, and skill that can be applied to the long-term mission and business needs of the Postal Service. Our Board looks forward to working with Dave as he takes on the core mandates of providing universal and excellent service for the American public and doing so in a financially sustainable manner.”
That last part will be key, as the USPS’ financial report released this month showed $3.3 billion in losses in the last quarter, with $2.5 billion being considered “uncontrollable” costs, like adjustments to workers’ compensation premiums. According to the AP, though, the USPS saw continued revenue growth from package deliveries, as well as lower transportation costs and work hour reductions.
