Illinois Could Be Hit Hard Due to USPS Job Cuts: Postal Workers Fight Back Against Potential Service

ILLINOIS – The United States Postal Service (USPS) has been facing significant financial difficulties for years, largely due to the rise of digital communication and declining mail volume. Now, the situation has taken a new turn with the unexpected resignation of Postmaster General Louis DeJoy and potential plans for widespread job cuts across Illinois and other states.

Last week, DeJoy announced he would be stepping down, just as USPS revealed plans to collaborate with Elon Musk’s newly established Department of Government Efficiency to implement cost-cutting measures. One of the most controversial proposals includes eliminating 10,000 jobs, sparking outrage among postal workers and unions across the country.

Melissa Rakestraw, executive vice president of the National Association of Letter Carriers, expressed concerns over potential privatization efforts, pointing to the example of the Royal Mail in the United Kingdom.

“Look at the model from the Royal Mail in England,” said Rakestraw. “They privatized in 2013 and it increased cost for mailers and consumers, it slowed down services and increased the mismanagement of pension funds. We can expect the same thing here.”

With nearly 640,000 employees nationwide, the USPS plays a crucial role in ensuring mail delivery to every address in the country. It was estimated in 2023 that about 15,000 of those employees worked in Illinois state with about 10,700 located in the Chicago-Naperville-Elgin area. However, privatization or integration with the U.S. Department of Commerce, an idea previously endorsed by former President Donald Trump, could create challenges for residents in rural and lower-income communities.

“There are neighborhoods in Chicago that FedEx and Amazon and UPS won’t go into. We deliver to those neighborhoods every single day,” Rakestraw emphasized, highlighting the essential role USPS plays in Illinois cities and towns.

While the executive branch lacks direct authority to dismantle USPS, changes to the structure of the organization could result in reduced services, increased costs, and diminished accessibility for millions of Americans who rely on affordable mail delivery.

Despite its importance, USPS has struggled financially for years. The service reported losses of $6.4 billion in 2023 and $9.5 billion in 2022, prompting critics to call for structural changes. However, union leaders argue that the postal service remains a vital institution that should be preserved.

Michael Caref, national business agent for the National Association of Letter Carriers, emphasized USPS’s role in American society beyond just mail delivery.

“The postal service doesn’t receive any taxpayer money whatsoever,” Caref stated. “It’s not like the postal service is a burden to anyone right now. You have a live person who’s out in every community at least six days a week, and while we’re out there we’re also looking out for the people in the community.”

Since its restructuring in 1970, USPS has been primarily self-funded, generating most of its $78.5 billion budget through customer fees rather than taxpayer dollars. While Congress does provide a small annual allocation—about $50 million in 2023—to support free and subsidized mail services, USPS remains largely independent.

Over the past decade, USPS has accumulated an $87 billion loss due to declining first-class mail revenue and the burden of retiree benefits. However, there are signs of improvement. Last quarter, USPS reported a $144 million profit, a stark contrast to its $2.1 billion loss in the same period the previous year. Officials attribute this turnaround to DeJoy’s 10-year restructuring plan aimed at modernizing the postal system.

“The postal service has to reinvent itself as the delivery mechanism for America in the modern era, and that’s not going to happen overnight,” Caref explained. “I think it’s well worth it to make that investment.”