USPS Losing $25 Million A Day

USPS Losing $25 Million A Day 22

News of heavy losses for the US Postal Service is not exactly a revelation, but Postmaster General Patrick R. Donahoe is now warning the service could become “a significant burden to the taxpayer” unless it is allowed to change its business operations.

Speaking to Congress Wenesday, Donahoe revealed the Postal Service was losing $25 million a day and warned the House Oversight and Government Reform Committee that the service was “currently operating with a broken business model.” Donahoe said:

“We are losing $25 million dollars every day and we are on an unsustainable path.”

Donahoe added that USPS must switch to a five-day delivery if it is to survive. He also argued the service must be afforded the flexibility to:

> “Develop and price products quickly.”
> “Control our healthcare and retirement costs.”
> “Switch to a defined contribution retirement system for new employees.”
> “Quickly realign our mail processing, delivery and retail networks.”
> “Develop ‘a more streamlined governance model.’ ”
> “And, we need more flexibility in the way we leverage our workforce.”

Donahoe has previously stated a five-day delivery schedule would help save $2 billion annually and would begin in August. Yet the Postmaster General was forced to perform a U-turn on his plans after congressional action required USPS to (in Donahoe’s words) “deliver mail as if it were the year 1983.”

What do you think about the Postal Service’s scary losses? Do you agree with Patrick Donahoe’s proposed course of action?