“We anticipate that Mr. Steiner will join the organization in July, assuming his successful completion of the ethics and security clearance processes that are currently underway,” McReynolds said.
Friday's announcement by the the Board of Governors comes as President Donald Trump and his adviser Elon Musk's Department of Government Efficiency have raised the idea of privatizing the nearly 250-year-old Postal Service, which has faced financial challenges amid a changing mail mix and other issues.
The choice of Steiner has been seen by the postal unions as a harbinger for possible privatization of some or all of the venerable quasi-public institution, which is largely self-funded and has a mission to serve every address in the country — nearly 167 million residences, businesses and post office boxes.
Postal unions have held protests throughout the country over potential privatization, job cuts and possibly ending the universal service obligation.
Brian L. Renfroe, president of the National Association of Letter Carriers, said Steiner is not just any executive from the private sector but someone who sits on the board of one of the Postal Service’s top competitors.
“His selection isn’t just a conflict of interest — it’s an aggressive step toward handing America’s mail system over to corporate interests,” Renfroe said in a statement. “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’s union represents 205,000 active city letter carriers and around 90,000 retirees.
Mark Dimondstein, president of the American Postal Workers Union, which represents more than 220,000 USPS employees and retirees, likened the appointment of Steiner to a fox guarding a hen house.
“FedEx has a very different agenda than the public postal service. And they’re a major competitor of the United States Postal Service,” he said. “I’m not talking about any attributes of an individual, but to me, that’s the last type of person you will put in charge of the public institution as the anchor of the mailing package industry in the country.”
Don Maston, president of the National Rural Letter Carriers’ Association, urged Steiner to “embrace the legacy” of “one of our nation's oldest and most trusted institutions” and its values to serve the entire country.
“The Postal Service is not a business in the traditional sense — it is a national network that binds the country together, serving every American, no matter how remote their address,” he said in statement.
Steiner, who will leave the FedEx board, said in a written statement that he admires the public service and business missions of the USPS and called it “an incredible honor to be asked to lead the world’s greatest postal organization.”
“I believe strongly in maintaining its role as an independent establishment of the executive branch,” said Steiner, who served as CEO of Waste Management Inc. from 2004 through October 2016.
In a written statement, McReynolds called Steiner "the right person to lead the Postal Service at this time to ensure this magnificent and historic organization thrives into the future.”
“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," she added. "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.”
Dimondstein questioned Trump's possible influence on the decision to appoint Steiner, saying the board may have “shamelessly and outrageously abdicated their independent responsibility in selecting a new PMG.”
A message was left with a USPS spokesperson, seeking comment about his accusations. A statement from the board noted the selection of the postmaster general “rests solely" with the board, whose members are appointed by the president and confirmed by the Senate. McReynolds said the board hired Egon Zehnder, a global leadership advisory firm, to conduct an executive search to find candidates for the job.
The Postal Service is in the midst of a 10-year modernization and cost-cutting plan that began in 2021 under Postmaster Louis DeJoy, who resigned in March. The plan is an attempt to stop losses at the agency, which has a budget of about $78 billion a year and is mostly self-funded, including through stamps and packages.
Known as “Deliver for America,” the initiative has received markedly mixed reviews. While postal officials contend it has led to major efficiency improvements, some members of Congress have criticized it for leading to mail delays, unsustainable postage increases and declines in business.
A financial report released Friday revealed the Postal Service lost $3.3 billion in the last quarter, $2.5 billion of which is considered “uncontrollable” costs, such as adjustments to workers' compensation premiums. However, it noted continued revenue growth from package deliveries, coupled with lower transportation costs and work hour reductions.
Besides privatization, there’s also been talk of possibly moving the USPS under the control of the U.S. Department of Commerce.
The choice of Steiner was first reported by The Washington Post.