Privatization is a polite word for corporate self-interest. When calls for privatization arise, it is always useful to see who’s interest is being served.
Take the United States Postal Service. The Republican Party is doing its best to destroy a national institution that provides hundreds of thousands of unionized jobs. (The Democratic Party is doing nothing, perhaps waiting for a signal from its corporate benefactors.) Merely reading “unionized” in front of “jobs” leads to the conclusion that ideology is behind this latest attack on working people, and surely a Right-wing desire to eliminate large unions and drive down wages further is a significant motivation.
Not the sole motivation, however. Privatizing the Postal Service would mean big new business for delivery services and companies that supply postal products. Advocates of privatization recently sought to inject more wind into their sails with the release of a study by a “think tank” with the bland-sounding name of National Academy of Public Administration. The “study” has yet to published in full, but its four authors, described as “postal industry thought leaders,” have published their conclusion — a call for a near total privatization.
Just who are these four “postal industry thought leaders”? With one exception, they are people who have a vested interest in privatization. Surprise! Here they are:
- Ed Gleiman, a former member of the Postal Rate Commission, has since become a lobbyist for the Direct Marketing Association, a group representing large mailers.
- John Nolan, a deputy postmaster general during the Bush II/Cheney administration, is currently a board member for Streamlite, a business-to-consumer lightweight package delivery service. He is also a senior advisor to The Western Union Co., another corporation that stands to benefit from dismantling the Postal Service.
- Edward Hudgins is a director of the Atlas Society (“Atlas” as in Ayn Rand) and previously worked for the Cato Institute and Heritage Foundation. The latter two organizations are manically dedicated to destroying all protections for employees, while the phantasmagorical absurdity of Ayn Rand’s novels bear as much relation to reality as an elephant that flies.
- George Gould, a former political director for the National Association of Letter Carriers union, doesn’t appear to have an ideological axe to grind as do the other three “leaders” and perhaps is guilty of nothing more than absorbing neoliberal ideology. Critics of the NALC say that the union has failed to fight for its membership, and Mr. Gould’s participation in this “study” might provide those critics additional fuel.
Direct funding by a corporation that stands to benefit
To round out the picture, the major funder of the postal privatization “study” is Pitney Bowes Inc., which stands to directly benefit. Greg Bell, executive vice president of the American Postal Workers Union, writes:
“Pitney Bowes, the company that is funding the review, stands to be a major beneficiary. The company is widely known as a provider of mailing equipment, but it is also a major mail ‘pre-sorter.’ The company takes advantage of generous pre-sort discounts offered by the Postal Service to provide outsourced services to high-volume mailers. In 2011, Pitney Bowes operated 41 mail processing facilities and generated $5.3 billion in revenue. Pitney Bowes would certainly snatch up a major portion of USPS revenue if it were given the chance.”
FedEx Corp. and United Parcel Service Inc., the two largest U.S. private delivery services, also stand to benefit from the destruction of the Postal Service. FedEx is one of the heaviest spenders on political donations and lobbying, and employs several dozen lobbyists who formerly worked in government, according to the Center for Responsive Politics. UPS is also a heavy spender on donations and lobbying, while employing its own team of lobbyists who formerly worked in government.
The National Academy of Public Administration “study” advocates a bizarre “hybrid” scheme in which all postal activities will be privatized, except for the “final mile” — a Postal Service worker would deliver mail and packages to mailboxes and other final destinations. The paper states:
“In the ‘final mile’ package strategy, private sector consolidators compete to pickup, process, and transport hundreds of millions of packages. Shippers pay the consolidators to prepare and transport the mail for ‘last mile’ delivery by USPS letter carriers. The consolidators pay USPS a delivery charge. Upstream competition among private sector providers promotes efficiencies that lead to better service and lower overall prices.”
Private oligopolies are not known for lowering prices, however, and the paper’s assertion that regulation counter excesses is refuted by the many industries in which regulation is toothless, and in which agency chiefs routinely cycle back to their primary roles as corporate executives. We need only look at vastly inflated pharmaceutical prices, runaway financial legerdemain and a lack of resolve in food safety to know that private delivery companies will easily evade any serious scrutiny, piling up profits while cutting jobs, wages and benefits. The only certainty is that large numbers of jobs will be lost.
Who can fund 75 years of pensions in 10 years?
A government institution painted as financially troubled is easier to be targeted for corporate plunder than one on firm footing, so, voilà, congressional Republicans cooked up a devastating scheme. A congressional bill signed into law in 2006 requires the Postal Service to pre-fund its pension costs for the next 75 years in only 10 years. This is unheard of; certainly no private business would or could do such a thing. This preposterous requirement — why do I keep seeing sneering villains twisting their mustaches like in those movies of a century ago? — has saddled the Postal Service with a $16 billion deficit.
Hoping to maintain corporate momentum, a leading congressional Republican, Darrell Issa, chairman of the House Oversight and Government Reform Committee, has pushed a bill that would allow an oversight committee to modify union contracts. Representative Issa’s bill, if passed, would allow unilateral cuts to previously bargained wages.
The National Association of Letter Carriers, however, has already approved wage cuts. The latest contract increases the number of “temporary” mail carriers who have inferior wages and benefits, setting a up a two-tier system in which newer workers have lower pay, not fundamentally different than the new two-tier pay systems at General Motors — taxpayers loaned the money to GM to keep it afloat, and the reward is more austerity. These deals in turn serve to depress wages elsewhere by setting lower standards.
In the meantime, tens of thousands of Postal Service jobs have already been eliminated. A statement issued by Detroit Workers’ Voice, analyzing the attacks on postal unions, says:
“Postal workers are being run over time after time, and the strategy of the leadership of the postal unions has proved completely ineffective in stopping this. Yes, the union leaders sometimes have snappy criticisms against management. But they collaborate with management. Thus, when new contracts with management help the USPS decimate the workforce, the main union officials hide the setbacks or justify them. Insofar as there is struggle against the USPS bosses, it is within strict limits. Organizing the rank and file for struggles within the postal facilities is avoided. Public actions of any kind are rare. Militant action that would really press management is off limits.”
Postal Service unions, of course, are hardly unique in their timidity. Fightbacks are possible, as the Chicago teachers’ union demonstrated last year. The Chicago teachers spent months preparing parents and the city as a whole for a possible strike as neoliberal Mayor Rahm Emanuel sought to break the union and replace public schools accountable to the public with private, non-union charter schools under corporate control.
There were critics who complained that the teachers didn’t win many advances and ended the strike too quickly, but it is more realistic to analyze the strike in a fuller context — given the totality of the circumstances, the Chicago teachers won as much as they could have and would have begun to jeopardize the massive public support behind them, an indispensable force as the city’s other unions did nothing to help.
No union, no matter how militant, can win substantial gains without a movement that mobilizes sustained support from those unionized, non-unionized and unemployed — a movement that acts on the understanding that an injury to one is an injury to all. Unions aren’t making efforts to create that support, instead at most narrowly attempting to slightly slow down the defeats to their specific memberships. The structural causes of our present-day world of austerity are far larger than any union federation nor are they contained with any single geographical unit. The entire history of capitalism has led us to today’s world.
An injury to one, or to one group of employees, truly is an injury to all. Enormous power is concentrated into the hands of financiers and industrialists, and there are no limits to the injuries they and the politicians who serve them intend to inflict. Putting our heads in the sand and hoping it’s the other person who gets it only delays the injury to one’s self and makes it worse when they come for you.