Vote-By-Mail Is the Easy Part
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ELECTION 2020 BLOOMBERG BUSINESSWEEK What comes after the election could be universal mail-in voting,” he told Fox of the election at stake, they could lead together.” Perhaps, but FedEx and UPS wrenching for the USPS Business on Aug. 13. to something worse. deliver 16 million and 22 million items This much is certain: The USPS can a day, respectively, a sliver of the Postal By Devin Leonard handle the election. The agency deliv- As a business executive committed to Service’s volume, and have no similar ers 433 million pieces of mail a day, showing a federal bureaucracy a thing public service responsibilities. almost half the world’s volume. The or two about efficiency, DeJoy isn’t DeJoy’s critics have frequently said total amount of election mail expected unlike former airline executive Richard he lacks experience with the USPS this year will amount to less than 2% Anderson, who put Amtrak on a path to and is therefore unqualified, but that’s of its total flow from mid-September to profitability but resigned in April after untrue. Born in Brooklyn, N.Y., he grew Election Day. “It’s literally a drop in the a little more than two years of battling up around the logistics business. His bucket,” says Paul Steidler, a senior fellow members of Congress and rail enthu- father ran a small trucking company on at the Lexington Institute, a conservative siasts. Or perhaps a better example is Long Island. DeJoy seemed destined for think tank, who studies postal issues. Marvin Runyon, aka “Carvin’ Marvin,” a a different career, getting an accounting The removal of mailboxes and sort- onetime auto industry executive whose degree from Stetson University in Florida ers isn’t as ominous as it might appear, tumultuous six-year stint as postmaster and working for a time as a certified either. It’s normal procedure for the USPS general was marked by staff departures, public accountant. He returned to New and a direct response to the collapse of mail screw-ups, and a federal investiga- York, though, in 1983, after his father Vote-by-Mail Is the mail volume. Total volume has fallen tion of his involvement in talks to put was injured in an assault by two busi- 33%, to 142 billion pieces annually, since it Coca-Cola machines in post offices when ness rivals. DeJoy took over the family Easy Part peaked in 2006. Volume for the service’s his family held shares in the company. business, which became known as New most profitable product, first-class mail, DeJoy’s ambitions dwarf what those Breed Logistics, and moved it in the early has fallen 44%, and the pandemic has men had in mind. During an appearance 1990s to High Point, N.C. only steepened the decline. Meanwhile, on Aug. 21 before the Senate Homeland The turning point for New Breed with stores closed and so many people at Security and Governmental Affairs came when it won a contract to pro- home, package delivery rose 50% from Committee, he confirmed a report in vide logistics support for USPS mail- April through June. The Postal Service the Washington Post that after the elec- processing centers, refurbishing and is struggling to keep up with Christmas- tion he’ll pursue what promises to be a transporting mail- sorting equipment. level loads at a time when Covid-19 has wrenching transformation of the USPS DeJoy parlayed the deal into business 56 sidelined many of its workers. involving slimmer discounts for non- with clients such as Boeing, Walt Disney, 57 In short, it might not be the most for- profit mailers, higher package rates, and Verizon Communications. “If you If there’s one thing Kenny Montgomery That’s when Montgomery began to machines across the country and the tuitous time to make major alterations and increased delivery prices for dis- have a Verizon phone, I shipped it to thought he could always count on, it fear for the future of the 245-year-old recent removal of 700 collection boxes. to the USPS. But that’s not stopping tant places such as Alaska, Hawaii, and you,” he told an audience several years was the arrival of the U.S. mail. He’d U.S. Postal Service. If this was the ser- “They were caught red-handed doing DeJoy. For all the allegations that have Puerto Rico. “We’re considering dra- ago at Elon University in North Carolina, delivered it himself during heat waves vice Americans could now expect, why this, and the whole country is in an been made about him, the truth is sim- matic changes to improve the service to where he’s a board member. and blizzards in Rochester, N.Y. He wouldn’t they turn to FedEx Corp., uproar,” U.S. Representative Jamie pler. He’s a guy from the business world the American people, yes,” he said. DeJoy assiduously avoids publicity. trudged through the city with a mail United Parcel Service Inc., or some Raskin, a Democrat from Maryland, who’s trying to impose the kind of dis- Specifically, DeJoy said he was eye- (He declined to be interviewed for this sack over his shoulder during the 1991 other private operation that brings said on Aug. 20 at a hearing held by the ruptive changes on a federal agency ing the Alaska Bypass, a USPS program story.) “He’s a pure numbers and oper- ice storm that closed businesses and things to their doors? “If this contin- Congressional Progressive Caucus, a that might be applauded in the private that uses bush pilots to fly not only mail ations guy,” says former North Carolina government offices and left residents ues, we’re going to lose the confidence group of liberal Democrats. sector but are guaranteed to provoke a but also food to areas of the state not Governor Pat McCrory, a friend of cowering in their homes without power. of our customers,” he says. “It snowballs Two days later, Democratic Speaker backlash in Washington. accessible by roads. The Alaska Bypass DeJoy’s. “He doesn’t like BS. He doesn’t They might not have been able to turn from there.” of the House Nancy Pelosi called her Although the Postal Service is required is one of those extraordinary things the give BS, and he doesn’t take it.” DeJoy’s on the lights, but they got their mail. Montgomery says he knows who’s chamber back from summer recess to by law to break even, it’s hardly a busi- USPS does in the name of connecting waspishness was evident when he tes- Last month, however, on the morning to blame: U.S. Postmaster General pass a bill to roll back changes that have ness. It was created to help democra- the country. DeJoy complained that it tified before the House and Senate in of Aug. 1, Montgomery, president of the Louis DeJoy, a former logistics com- taken place during DeJoy’s brief tenure. tize the country by binding it together. cost $500 million a year. The number August, mocking his questioners for fail- local branch of the National Association pany executive and financial sup- It also contains a $25 billion cash infu- Because of this, you can send a letter seemed steep: A spokesman for Alaska ing to do more to help the USPS. of Letter Carriers (NALC), saw his faith porter of President Trump, who took sion to cover the USPS’s Covid-related from anywhere in the country to Alaska Senator Dan Sullivan, a Republican, says In 2014, DeJoy negotiated a deal shaken. Almost 120 of his members over the agency on June 15. DeJoy has losses, a standing House request since for 55¢. As has been noted many times, the program’s cost last year was actually to sell New Breed, which by then had reported to the city’s eight post offices, said he wants to transform the Postal the spring. There’s little chance the it might be the greatest bargain on $123 million. Either way, DeJoy’s com- 6,800 employees, for $615 million to he says, and found that trucks had Service, which is facing an $11 bil- Republican-controlled Senate will take Earth—and one that no private company ments raised questions about the post- XPO Logistics Inc., a company that pro- brought them packages from process- lion loss this year. Widespread inci- up the bill, and even if it did, Trump would offer. master general’s commitment to parts vides trucking support for the USPS ing plants but not a single piece of what dents of delayed mail have given rise would likely veto it. In yet another In the name of saving the USPS, of the country that are more expensive during the holiday season peak. DeJoy he classifies as mail. No letters, no bills, to theo ries that DeJoy wants to disrupt attempt to call into question the Postal DeJoy is mulling changes that not only to serve. stuck around for a year to run XPO’s no postcards, greeting cards, magazines, the fall election on behalf of the presi- Service’s competence, he’s argued that would affect delivery but could also For now, however, DeJoy is focused North American supply chain busi- catalogs, or fundraising appeals. “This is dent, who has called the USPS “a joke” without these funds there’s no chance undermine the service’s mission. Even on a single initiative: getting Postal ness, then joined the board before step- my 33rd year of service,” he says. “There and questioned its ability to handle the USPS can handle the expected in the best of times his moves might Service trucks to run on time.