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Postal Service Rescue: USPS Seeks Help From New Congress

Postal Service Rescue - USPS Seeks Help From New Congress

The US Postal Service is hoping for a rescue operation from the newly sworn-in Congress after it was revealed the mail carrier could run out of money in a little more than nine months.

The USPS loses $25 million a day, and in the year ending November 15, 2012 posted whopping losses of $16 billion. In the same period, the organization ran into its legal borrowing limit and defaulted twice on required payments to the federal government.

With more Americans than ever communicating by email and escalating benefits for retirees taking their toll, a postal service rescue is urgently required.

A bi-partisan bill that would have ended Saturday mail delivery and eased the USPS’ benefit payment obligations passed the Democratic-led Senate last year, but has yet to be voted on by the Republican-controlled House of Representatives. Republicans are pushing for widespread post office closures. Privatization is also said to be favored by those on the right.

The exit of many key negotiators from Congress this week again delayed the debate over the struggling agency, further postponing any possible postal service rescue. Art Sackler, head of the Coalition for a 21st Century Postal Service, a body which represents mailers, told Reuters:

“It’s important that they prioritize postal service legislation. We don’t want to have it get lost again in the big shuffle.”

With the 112th Congress expiring earlier this week, a firmly worded statement from Postmaster General Patrick Donahoe called Congress’ inaction “disappointing”. Donahoe said he would be looking to the new Congress to push through reform to postal service legislation. He added:

“The Postal Service should not have to do business this way, which has undermined the confidence of our customer base and the $800 billion mailing industry we serve.”

Donahoe argues that the Postal Service has made sweeping changes to its organization in a bid to allow Congress to pass legislation that will save it. Over the last two years, 60,000 USPS jobs have been slashed and hours at some post offices have been cut. Despite such action, huge losses continue to hurt the mail carrier.

The United States Postal Service says its financial disintegration is related to reduced mail volumes and its future retiree health benefits program; about 70 percent of last year’s loss was blamed on the latter.

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Comments

5 Responses to “Postal Service Rescue: USPS Seeks Help From New Congress”

  1. Kenny Goss

    Why bull? Read the linked article. It has info most people don't know. USPS prefunding retirement for 75 years in the next 10 is ridiculous. It would cripple any company if required of them.

  2. Frank Douglas

    Why is the the focus not on prefunding in the amount of 60 billion dollar. The focus should be also on bad management by supervisors that create grievances which cost the USPS money for just bad management.
    Supervisor are not held accountable for violations of Collective Bargaining Agreement.

  3. Anonymous

    Only the government can create and run a company that can post losses like these. Email started 20 years ago, of course government management would never see this coming, sucessful completittion has grown and makes profit… only the Government can create run away losses.
    First have to find a way to revise, cap and pay off the benefit program…
    Second get ahead of the curve…Americans do not need 6 day a week delivery. Make it three, Mon/Wed/Fri for half and Tuesday/Thur/Sat for the other half. We will adjust and all will be fine.
    PRivatize part if not all of the Post Office…get out of a lossing business…it will continue to shrink and shrink.