Postmaster General to retire in May

Postmaster General William Henderson is hanging up his mailbag. After 28 years in the U.S. Postal Service, Henderson has decided to leave the federal agency when his three-year contract expires in May. An official announcement is expected Thursday morning. Henderson is one of five career postal employees to rise to the rank of postmaster general. His tenure at the helm of the government's second largest agency has been turbulent. After five years of positive income growth, the Postal Service lost $199 million in fiscal 2000 and could be headed towards even bigger losses this year. As a government corporation, the Postal Service is required by law to break even. It makes its money from user fees﷓-selling stamps and other mailing services. Not quite 1 percent of its budget comes from the federal treasury. The past year has probably been especially tough on Henderson. All four major postal unions, representing more than 700,000 employees, went to binding arbitration after contract talks failed. All are expected to get raises. In fact, the National Association of Letter Carriers in 1999 won a 3 percent pay hike, adding more than $300 million to the agency's annual labor costs. To offset losses, Henderson has tried to find new revenue streams and improve efficiencies. Under his stewardship, the agency has experienced positive gains in productivity and become a player in e-commerce, offering products such as electronic bill payment. Henderson also forged an ambitious partnership with FedEx. The initiatives are not without their critics. Internet firms charge that the Postal Service is going beyond its charter by venturing into e-commerce. The Justice Department and members of Congress are looking into the FedEx deal to see if it violates antitrust measures. And some critics claim Henderson has not pared the agency's executive ranks enough, thus fostering a bloated bureaucracy. Still, Henderson gets credit for calling attention to the agency's pending problems, such as slower-than-expected growth in mail volume and financial losses. "Under his leadership USPS also continued to place importance on service as a necessity, not an option. Mailers are thankful of that," said Robert McLean, executive director of the Mailers Council, an Arlington, Va.-based trade group. There is no front-runner to replace Henderson. But sources say the Postal Service Board of Governors will look for a high-profile executive from the private sector.