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Report: U.S. Postal Service Will Be Forced To Shutdown This Winter Without A Bailout

» 149 comments

Unfazed by “Neither rain, nor snow, nor sleet, nor hail,” it looks like all those emails we’ve been sending are starting to drag on the United States Postal ServiceAccording to this New York Times report, the USPS is quickly approaching insolvency, and unless the House and Senate take drastic measures to help them out, will be forced to shutdown come winter. “Our situation is extremely serious,” the postmaster general, Patrick R. Donahoe, told the Times. “If Congress doesn’t act, we will default.”

Struggling with falling revenues and rising costs of labor, the agency has incurred a $9.2 billion deficit, and in the next year, officials warn, they will run out of money to pay their remaining 574,000 employees and trucks, “forcing it to stop delivering the roughly three billion pieces of mail it handles weekly.” Historically lauded as a cornerstone of democracy, as it is, the Postal Service is no longer self-sustaining.

Senate Homeland Security and Governmental Affairs Committee is set to hold a hearing regarding the USPS’s financial predicament, but — politically and otherwise — the options are grim. Short of a bailout, the agency says they would need three things from Congress in order to stay in operation: approval of the elimination of Saturday delivery, to allow them to break union-bonds and layoff 120,000 workers, and let them close 3,700 locations.

Lawmakers from rural states fear that cutting out Saturday services, a move that will only save 2 percent of the agency’s budget, will disproportionately effect people in small towns. Unions, meanwhile, say they are readying a fight against further layoffs. (USPS ranked third this year, behind pharmaceutical company Merck and Co. and the shuttered Borders, as employer with most layoffs.)

Most worryingly, it’s unclear that a bailout will help solve the agency’s long term issues:

“The post office’s problems stem from one hard reality: it being squeezed on both revenue and costs. As any computer user knows, the Internet revolution has led to people and businesses sending far less conventional mail. At the same time, decades of contractual promises made to unionized workers, including no-layoff clauses, are increasing the post office’s costs. Labor represents 80 percent of the agency’s expenses, compared with 53 percent at United Parcel Service and 32 percent at FedEx, its two biggest private competitors. Postal workers also receive more generous health benefits than most other federal employees.”

There is no turning back on emails, nor e-bills nor file-sharing sites. As a result of this irreversible change in the way we live, one of our nation’s longest standing and most democratic institutions is in danger. Lost jobs and cut service are come as early symptoms of a much larger identity problem the Post Office faces.

Fred Wilson points out that, “We are undergoing a big time technological revolution that is disrupting big industries and big companies all over the place,” and that “The US Postal Service story is not a unique situation. It is the situation.” As technology encroaches on industry, our society will learn new skills and to create new jobs, at which point costly programs like the Postal Service might more easily be eliminated from the government payroll. As Wilson writes:

We are crossing a huge chasm from an industrial society to an information society. And there is immense pain in that transformation. Obama can’t solve the problem nor can any of his opponents. Time will solve this problem.

(H/T Business Insider)

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  • Anonymous

    Privatize it, at least partial. Spending good morning after bad is unnecessary. 

  • Anonymous

    With labor accounting for 80% of expenses, surely we can count on the Union to make concessions to save their jobs…..NOT

  • Anonymous

    unions ftw!!!

  • Anonymous

    Another Rat Wing dream-come-true.

  • Anonymous

    Wow, another union run organization is going under.  Un-freakin’-believable!

  • Joan Bailey

    the Post Office  would be helped by charging mroe for P.O. boxes. they’re insanely cheap, and used mostly by people who already have street/home service. it’s totally elective service; charge mroe than $50/YEAR for it!

  • Anonymous

    only if the “dream” is proof that unions are the weight that keep businesses from being agile enough to adapt to the market and therefore the virus that kills the host…

  • ChuckMock

    There is so much waste in the USPS system it is difficult to find a beginning point.  One blatantly obvious place to start is: stop giving away supplies like they don’t cost anything!!  if someone needs a mailing envelope, charge a modest fee for the stupid thing!!  If the consumer had to pay for them they would not be so wasteful – but since they are purchased with tax dollars and are “free” – they are given away like candy.

  • Anonymous

    The USPS is a liberals utopia. Don’t blame us because you failed.

  • http://twitter.com/SailRabbits Magister

    Can the post office legally shut down?

    Article 1, Section 8 of the United States Constitution gives the power to establish post offices to Congress, so perhaps one could try to argue that it’s not required, but it’s this same section which calls upon Congress to maintain the military, fund the court system, provide for patents and coin money, among other powers. Perhaps one could argue that they all may be voluntary, but everything else in that section is still valid and I’m sure any attempt to do away with or further privatize the post office would face a court challenge.

    It looks to me like Congress is on the hook and they’d best be served by bringing prices more in line with costs. After all, there’s nothing in the Constitution which sets rates and as long as they’re uniformly applied, I see no reason they couldn’t get closer to the prices charged by the private companies.

    Otherwise as the post office’s woes and potential solutions have been discussed, I’ve seen that especially those in the blogging community feel associate offices (what you call a post office in a general store) is somehow radical, not just something that has become less common since the 70s and I see no reason they couldn’t do other things to streamline the system.

    I just don’t think shutting down the post office entirely is constitutionally allowable.

    PS) I also have another suggestion which I’ve blogged about and may have even commented upon in the past, but it’s also require public funding and would create additional rights.

  • Rocker

    95% of what they deliver these days is junk mail anyway.

  • Anonymous

    I think you mean “money”… I also hate auto-correct. Can sometimes get you in trouble.

  • proconserv

    Let’s see, it’s run by the government and unions are involved!!!  It could only go one way – bankrupt!!!!

  • http://pulse.yahoo.com/_2RUPG5LCXSEZZFP4NV67XF4TJE Place it on Lucky Dan

    PENSIONS: Imagine over the past 4 years, FedEx or UPS losing $3 billion, $6 billion, $8.5 billion, $10 billion. Instead they profit in the billions. Up to 80% of USPS costs are salary and benefits — FedEx 30% … http://placeitonluckydan.com/2010/07/nations-largest-employer/

  • TruDat

    Let them shut down, permanently.  Most people pay their bills online.  The USPS just delivers unwanted junk and then we’re required to recycle it.  At least implement a “No Mail” list so we can opt out of receiving junk mail just like they have a “No Call” list to avoid telemarketers.

  • concerned

    Was this story written directly from a republican Press Release?

    In 2006 congress changed the law so that the US post office had to pre fund all future retirees health benefits for the next 75 years. No other public or private corporation or agency is included in this law, just the US Post office. And though the Post Office has a surplus of money to pay retirees, the laws states that they may not use that surplus to meet any of the current retirees benefits.

    On top of that they also stopped the US post office from raising the mail rates to keep up with the costs of inflation. The US Post Office does not take one dime of taxpayer money, hasn’t for the last 25 years, it pays for all of it’s operations through the sales of it’s services and products. They are self supportive, and doing quite well despite what you are hearing on the news today. In fact, last year they made a profit of $611 million! With customer satisfaction at record highs!

    Come on MEDIAite! do a little homework!!!

  • concerned

    There is a “do not mail” list, go here and sign up

  • Adam

    Wrong.

    For a lot of us, you NEED a P.O. Box, a lot of smaller towns and cities do not offer street or home service. 

  • Phred

    Fact: 95% of all stats are made up.

  • Just some Blow Hard…

    This is no suprise to any one under the age of 65.  Mail will go the way of the telegraph and the landline phone.  It has nothing to do with unions or government, it has to do with demand.  Packages are usually fedex’d or UPS (who are union btw) and no one writes a letter.  Period, end of discussion. 

    Radio is next, TV will soon follow.

  • concerned

    and why does the US Post office require more labor? Because they are required by law to go to everyone’s house to pick up and drop off mail. FedEx and UPS don’t do that! Why didn’t Zera Golden point that out when writing this article?

  • concerned

    Why does their labor account for 80%? Because they are
    required by law to go to everyone’s house to pick up and drop off mail.
    FedEx and UPS don’t do that! Why didn’t Zera Golden point that out when
    writing this article?

  • HawkCW4

    They do not come to my house to drop off and or pick up mail.  They go to a central Mail Box that I have to walk a block and half to get my mail.  AND why isnt the PS self sufficient?  Would that be due to those Union jobs and Union demanded pensions they cant pay and still put gas in the delivery trucks?

  • Moosenuts99

    Tax dollars don’t fund Post Office genius.

  • Anonymous

    Post office doesn’t take tax money, they take money from stamps and selling goods and services. So, consumer actually does pay for them in roundabout way.  Also FedEx envelopes are free as well as UPS.  Just go to self service station and pick one or more up.

  • HawkCW4

    So they are doing quite well?  Then what is this talk of possibly shutting down?   Someone here is on the wrong page dont you think?   If they are doing quite well, what would you think they need Congress to help them with?   Why are they talking Bail Out?   Someone is confused

  • Anonymous

    The USPS has been flooding the airwaves and TV with ads recently lying to the ” real ” American people about how they don’t cost us one red cent in tax money to run their corrupt, bloated, borderline criminal organization.

    They don’t cost one penny, their going to cost us $5 billion when they default at the end of the month.

    The current ( should be illegal ) contract these losers have in place makes it impossible to decrease the work force even though they’ve got less than half of the traffic, therefore income, over the past 5 years.

    It will take an Act of the next Republican majority and the signature of president Perry to reverse this grotesque travesty of justice.

    Just one more glaring example of the corruption that is the quid pro quo democrat party/union relationship in this country………but the end is near ( tolling bell ) for both of these degenerate groups.

  • http://bobbydigits.com Robert B. Singleton

    There has got to be an easier way than laying off 120,000 workers, but it’s even more surprising that nobody saw this coming.  And what about all that property USPS owns?  An audit completed by the Office of the Inspector General last month found that 24% of property leased or owned by USPS was empty space.  Moreover, the report said that disposing of the properties could bring in at least $3.48B over 10 years.  Surely, there is an easier way to solve this problem than crying default to avoid paying worker health benefits.

  • Anonymous

    Then why is the USPS say they need to be bailed out? oh yah they can’t keep up with pension/union demands.

    They are exempt from paying federal taxes – they do receive minimal federal funds but only to cover postage for free mail, for blind, overseas voter cards… around $96 million. They can even borrow ‘money’ at a discounted rate from the government- essentially enjoy all the perks of a private corporation… and then some, but they still can’t manage fiscal responsibility?

  • Anonymous

    LIke your stat?

  • concerned

    The US post office isn’t talking bailout, pundits are… The only people confused are those not paying attention to what is happening, which is most of the people in the US.

  • http://twitter.com/SailRabbits Magister

    I’ve moved a lot and my experience has been that PO boxes are cheaper (subsidized) in places where they’re required, as opposed to other locations that had home delivery.

  • Anonymous

    It is semi-privatized and runs like a corporation, but also has attributes of a government agency and receives a small amount of federal dollars 95 millionish (all relative) to offset cost for overseas voter registration, blind people etc…- it doesn’t pay federal taxes, can own, sell, and lease property, even claim private property through eminent domain, can sue and charge what it wants for products-  even though it was mandated in 1970 to be revenue ‘neutral’ it brings in around $1 billion annually.  Of course, this profit is sucked away by overhead, employee retirements, pensions etc…

  • http://twitter.com/SailRabbits Magister

    There are plenty of places in the US without home delivery.

  • Ralph

    I gave thousands to my congressman to keep our post office off the closing list.

  • http://twitter.com/Darr247 Darr Darr

    FedEx doesn’t have any employees that do deliveries… their drivers buy/own their vehicles and are classified “independent contractors” by the IRS.  They get no fringe benefits from FedEx.

    The USPS’s pension is overfunded compared to every other corporation in the USA, as a result of the restructuring done in 2006. In the ensuing 5 years, they’ve had to put $5 billion to $6 billion in their pension fund each year (to meet PROJECTED liabilities – you know, the way social security should have been doing for the last 30 years)…  they’re almost caught up to the funding level mandated by that 2006 change. And the payment due this year is the $5.5 billion payment mentioned (but not identified) in the article.

    Anyway, why isn’t the post office allowed to leverage the .us top level domain, run mail servers and sell commercial-free email addresses (e.g. unique.name@usps.us) to citizens that want one (or some) for, say, $5/year. Oh, and charge MORE for delivering (3rd class, I think it’s called?) unsolicited bulk mail, too…  not LESS.

  • http://twitter.com/Darr247 Darr Darr

    Delivering the mail is one of the services mentioned in the constitution. Funny how baggers talk out both sides of their faces when it comes to constitutional issues.

  • http://twitter.com/Darr247 Darr Darr

    Delivering the mail is one of the services mentioned in the constitution. Funny how baggers talk out both sides of their faces when it comes to constitutional issues.

  • Anonymous

    I read about this the other day in NYT. If Sat delivery needs to be stopped to help save money, why not? Canada Post doesn’t have weekend delivery, why not do the same with USPS? Nobody’s going to suffer much if they don’t get mail delivered on saturdays, as 3/4 of mail nowadays is junk mail anyway.  As for the union having a no layoff clause, and the union rep saying they’ll fight any layoffs that will most likely happen if they want to stay afloat, how stupid can you be?

    I was union all my working days, but do know when not to be an idiot union member. If your company/business is broke & on the brink of folding, you’re going to fold right along with them if you can’t work together on finding a solution.    

  • Anonymous

    “It will take an Act of the next Republican majority and the signature of president Perry to reverse this grotesque travesty of justice.”

    What log have you been under? A Republican majority & especially Perry, who uses prayer gatherings, instead of relying on his knowledge, (if he has any)  would make things worse.

    What do you expect Perry to do? Hold another gathering and pray for god to stop USPS going broke? He did a lousy job of holding a gathering & praying for rain.

    What happens if there’s another terrorist attack, and Perry’s in charge? Another gathering to pray for the attackers to go away? Give your head a shake, the man is a loser.

  • Anonymous

    “It will take an Act of the next Republican majority and the signature of president Perry to reverse this grotesque travesty of justice.”

    What log have you been under? A Republican majority & especially Perry, who uses prayer gatherings, instead of relying on his knowledge, (if he has any)  would make things worse.

    What do you expect Perry to do? Hold another gathering and pray for god to stop USPS going broke? He did a lousy job of holding a gathering & praying for rain.

    What happens if there’s another terrorist attack, and Perry’s in charge? Another gathering to pray for the attackers to go away? Give your head a shake, the man is a loser.

  • Anonymous

    I have a computer, an I phone, an I pad 2, a blackberry for my personal biz contacts only, a landline phone, I listen to talk radio everyday,but I still write letters.

  • Anonymous

     If NYT article is wrong, & Mediaite is wrong, and you are right, where is your proof? If US post is wallowing in dough as you state, why would it not be mentioned anywhere except by you? Seriously, a lot of people on here would like know.

  • Anonymous

    Maybe you need to look deeper at how the U.S.Postal Service is funded, its pretty much ‘self-sufficient!’  Dont quite know where you live, but I’d bet that if it goes out of business….you’d probably be one of the many complaining about the loss of something taken for granted at present! 

  • scott

    USPS has contract carriers who make far less than rural or city carriers without the benefits for doing the same exact job, the way i figure it is if they went to strictly contractors they could save a ton of money.  Roughly a contract carrier makes about a third of what a union employee does maybe less if you figure in the benefits, so they could employ 3 or 4 contractors for the price of 1 union employee. just another example of how union greed has ruined the economy.

  • Just some Blow Hard…

    You are one of the few and a dying breed my friend.  Innovation stops for no one…

  • Anonymous

    Some of us saw this coming years ago. As a retired Postmaster I questioned quite a few of the decisions that were made in Washington for us. I was there before we became the United States Postal Service, we were the Post Office Department financed by the United States Congress.  Reviewed every 4-years and we hoped we might get a small raise in pay.  The change to U.S.P.S. and Collective Bargaining was the best thing that ever happened for the employees, and we became Quasi-Independent from the Federal Government.  The first big mistake was giving up our Parcel Post Business to United Parcels & FEDEX.
    Our Leaders thought that 1st Class Mail & Special Deliveries were our Bread & Butter so we caved in to the Business Lobbyists and let them have our Package Delivery!  Look at us now and look where they are now.  Case closed!

  • Anonymous

    ‘Wrong!’ and ‘True!’……the U.S.Postal Service is NOT run by the government and only has received certain subsidies that are related mainly for pensions and disabiliy!

  • Anonymous

    Why not try the ‘pay-for-service’ approach?  Increase the cost, and if you want to receive mail, you pay for it….plain and simple………………………oh, but wait, people may think that-thats a tax, so just go out of business instead!

  • Anonymous

    I hope you have a job now and a guaranteed income, because a President PERRY would have Postal employees working for Minimum Wage. Perry and the Tea Party intend to sell this Country out to the Millionaires & Billionaires and when they do they will gloat over how they made FOOLS OUT OF YOU!  

  • Anonymous

    You are a thinking man! 

  • Anonymous

    Shssssssss….dont say that!  Its not going to be ‘believed’ anyway!

  • Just some Blow Hard…

    Look my dad was a union man and I will defend them, but if there is no demand for your product, thats it.  I am really sorry for people out of work, but thats the nature of the beast.  They should have done this with Amtrak. Either shut it down or make it work in this economy. 

  • Anonymous

    ‘Constituitional Amendment!’  If the call is out to have a ‘Balanced Budget’ included, why not go ahead and move the Congress on that as well?  However, I believe that the privilege that we as Americans have shared…will be sorely missed, if either happens!

  • Anonymous

    Hope the NO MAIL list works better than the no CALL list that I have been on for a couple years.  I still get calls after 8:00pm from India & Bangladesh!

  • Anonymous

    Hmmmm, why not simply end ‘Retirement’, unless you can afford to retire from savings? That would truely be a ‘change’….as far as 401k is concerned…..lets eliminate Governt completely from that(hands off approach) leaving what Corporations contribute to the Corporations….and see how that works out down the line!?

  • BooBoo Bear

    Are you willing to take a pay cut at your job to keep yours? I didn’t think so.

  • BooBoo Bear

    What “mailing envelopes” do they give away for free? I know that they do have stamped envelopes that they do charge for. They also have those envelopes that you put another piece of mail to sent it somewhere, usually that costs $14.95 to send it overnight. Still don’t know where that’s considered “free”.

    Why are they giving things out free….like boxes…So you’ll use them instead of UPS, FedEx, etc. Giving them a fighting chance at making money.

    Once again Chuck. They don ‘t get that much in tax dollars. They get “some funds” to send “ballots” out at election time to our soldiers overseas.

  • http://twitter.com/SailRabbits Magister

    I find it doubtful that two-thirds of both houses would vote to eliminate the post office and it’d never pass three-quarters of the legislatures. There’s just too much of the country reliant on their services, not to mention politicians and government agencies using it for cheap distribution.

    I mean, even if you were to take out the political problem presented by rural reps and legislatures, imagine what it would do to government budgets, if all official correspondence had to go Fed Ex.

  • concerned

    Listen and watch it for yourself. http://www.youtube.com/watch?v=CoYREhJt4jg

  • Anonymous

    As a Retired Postmaster, naturally I have mixed emotions.  We agreed to give up Parcel Post to keep the Postal Service from being completely privatized. Because private business wanted to compete with us in delivering letter mail. Congress new that private firms would not deliver to rural locations because it would not be cost effective.  We did not have to make a profit because we had to deliver to every address in the Country.

  • Anonymous

     “If Congress doesn’t act, we will default.”So what are they requesting?- money to cover their current debt so they do not default- sounds rather like a bailout or should it be considered a temporary loan? 

  • Anonymous

    Yes, I suppose I am of a dying breed, but you know, I have in my birth country, family I’ve not seen for years, and a couple of very close friends in south America that I write to regularly by air mail letter.  I have airmail letters saved from the 50s from a favorite Aunt & sweet as can be, young cousin, who have long passed away from illness. For me, having their personal letters, with the little kid drawings & I love you, I miss you, comments written on the edges, mean a whole lot more than an email I might accidently end up deleting, or lose in a sudden computer crash.   

  • Anonymous

    My comment was in response to “concerned” – who apparently thinks the post office is just fine and doesn’t need any help, contrary to their own words. 

    It would help ease up cash flow if they could eliminate some of the union restrictions that have impeded on letting go employees who need to go.  ”… decades of contractual promises made to unionized workers, including no-layoff clauses, are increasing the post office’s costs.” 

  • Hagen619dj

    If anyone recalls…that is what wisconsin’s governor “tried” to do. (get rid of unions) They are what breaks anyone’s job eventually. They leach off of people w/big promises of more money. Postal workers need to take cuts to keep their jobs. Others all over the country have done that…they are not immuned. And really, would it hurt to go to your post office to pick up your mail? Even farmers go to town at least once a week.

  • Hagen619dj

    It is obvious that a post office isn’t a priority any longer. The biggest upset would be for those who do not have computers.  However, they would find a way to adjust.  Postal workers have always been paid far more than is necessary. To keep a job, lower your standards like everyone else. it’s a sad case that an “ol business has to end up like this, but there are always other ways…given a chance to find them. It’s a luxury to be served your mail. it’s a luxury that may just have to go by the wayside. it’s not the end of the world. Look at it this way….we wouldn’t be inundated with advertising.

  • Hagen619dj

    They do charge for flat rate boxes. I just sent a care box to my grandson in Afganistan.

  • Hagen619dj

    That’s easy,   NEVER answer a call that says “unknown”.

  • Hagen619dj

    Because their benefits over-ride their income. The employees retirements etc. are larger than their income brought in. Another fine example of over-paying others supported by Unions.

  • Hagen619dj

    How do most ‘bail outs” go?  Give them the money and never see it again.  Get ready taxpayers.

  • Hagen619dj

    Get real,  it isn’t going to matter which president/congress takes ahold of this.  I can  see another bail out on the horizen.  We are all fools, no matter what party is elected. All the snied remarks isn’t going to change a thing.

  • http://smallthoughtsfromasmallmind.wordpress.com/ Small Thoughts

    The odds of the P.O. being shut down are 0. The P.O. is staffed by union workers who have Obama in their back pocket.

  • Anonymous

    I guess I am way behind the times.  My land Line is 14 years old and does not show me whose calling.

  • http://twitter.com/Staciisa_bitch Staci Chase

    This is just another thing the Republicans ruined.  

  • Tiredoflisteningtoit

    The USPS has been in serious decline for the past 30 years and now, because of mismanagement and ignorance, they need a bailout? GFY Concessions people, concessions!!!! Life is not about entitlement.
    Skilled labor???? Our local paperboy delivers 220 newspapers every morning without an address on any of the newspapers, and does it for $48 a week.

  • Bcarlton

    Hmmmmm. It’s interesting. There’s enough printed money for bailouts of private banks and companies but no bailout for a national service institution like the USPS??????? 

  • Anonymous

    Until 2003 USPS had a yearly increase in first class mail volume, always. Since then it has declined yearly. No ignorance involved, besides yours.
    The Internet has wasted many companies, ask your local record store, movie rental, or local paperboy/newspaper employee.
    PS. do the paperboys still put baseball cards in their bikes spokes in Mayberry, or what ever fantasy city/state you live in?
    PPS. I might work for USPS

  • TruDat

    Who said I was a “bagger” you sperm eating simpleton.

  • Anonymous

    You misunderstand what a contract carrier is. That is a interstate trucking firm or airlines.
    USPS doesn’t own planes or any semi trucks beyond in city transport.
    That is why our employee costs are higher, since every contract employee counts, yet their jets and trucks don’t
    Trust me I work for USPS.

  • oncerned

    The unions are working to make the post office viable, look before you comment.

  • concerned

    unfortunately the US post office doesn’t get to set it own rates, congress does it for them. That’s a big part of the problem.

  • concerned

    actually the volume of mail is way up since computers and the internet have come of age. Mail volume is currently down due to the recession, which always happens during recessions. And yes, we all should lower our work standards so more money can go to the top of businesses. We workers don’t need a decent standard of living. We are not at all important to the company. We all know that the CEO and the shareholders are the most important people.

  • http://twitter.com/YourPostcard PostcardsAnywhere

    We can all do our part to save the post office: http://www.savethepostoffice.net

  • AliveStillKickin

    This is great news…..The fewer massively overpaid  union government workers there are…..the less money they will be sucking out of the economy.
    (Of course….Obama will also have more to spend on dead-end projects and that should please all libtards everywhere)

  • Anonymous

    It’ll cost them ‘ one ‘ busted union.

  • Tamaralynn67

    It”s not the union keeping the the Postal Service from adapting to the market fool…it;s your government…The Postal service needs to have the freedom -just as their competitiors do- to adjust their prices according to the economy….gas has increased $2.00 per gallon while postage has only increased 1 penny…they don’t have the freedom to add surcharges to offset the cost of delivering …I can’t even imagine what a 1 cent increase in gas cost the postal service in a weeks time…and when the Postal Service has been profitable the government quickly spends that profit..furthermore, .how many businesses in the private sector do you know that is mandated by law to prefund retirement 72 billioin dollars? Yeah that hefty payment is enough bankrupt just about any business…unionized or not!

  • Anonymous

    they have to prefund it so they cant dump their shit on the taxpayers idiot. name another business that 80% of the costs go to labor…

  • Scott

    so does my wife and she has  a highway contract mail route , so we are aware of cost of being a contract carrier compared to a union employee, so i am sorry i did not misunderstand what a contract carrier is, it includes box delivery also.

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  • Ralph

    I gave thousands to my congressman to keep our post office off the closing list.

  • jan

    yes…if everyone gave back a dollar or two…we might save our jobs….it’s a start:)

  • jan

    amen:)

  • jan

    i agree….we should take a cut to keep our jobs…unions should only negotiat wages and benefits…stay out of the post office and let supervisors do thier jobs without the union jumping in ready to file and get free money we don’t have….the unions have used up their usefulness…if you come in and do your job you won’t need the union….just wages and benefits……

  • jan

    sry i don’t see that…they don’t own the PO so they shouldn’t run it like they do….they should only be there to negotiat wages and benfits…..like the superviors do their job….

  • jan

    the postal service pays it’s own way…not the government….when we did make a profit (way back when) we had to turn it over to S.S.

  • jan

    no the government does not pay anything for the postal service….they pay their on way…..

  • jan

    i think the post office should have free po boxes for everyone…and no street delievery…they could save  on gas and carriers……

  • jan

    i agree they should charge something….i know someone who ordered them online (10 boxes of 25) and let her son build a play house with them…..crazy huh?

  • SarahBearJones

    It’s amazing how much misinformation is being regurgitated by the media and the public. Please allow me to attempt to clear up some confusion.

    1. The USPS is not asking, nor has it ever asked for a government bailout. They want a refund of the money they overpaid ($75 billion!!) to two retirement funds. Congress is refusing to give the USPS access to these funds.

    http://dailycaller.com/2011/03/03/u-s-postal-service-insists-it-doesnt-need-bailout-just-access-to-overpaid-retirement-funds/

    2. Every year, USPS is required by federal law to prepay $5.5 billion into a retiree healthcare payment (which is a ridiculous law in itself). When the post master general says they could default, he is referring to that particular payment that is made at the end of the fiscal year.

    http://www.federaltimes.com/article/20110209/DEPARTMENTS02/102090304/

    3. People think that just because they get a lot of “junk mail” that the post office is becoming obsolete. Yes, the volume of first class mail (letters, cards, bills) has declined, but there is still a significant demand for its services. My husband works at a USPS processing and distribution plant, and on Tuesday, they processed over 800,000 pieces of first class mail. The USPS delivers 177 billion pieces of first class (again, not including bulk business mail) annually.

  • Anonymous

    The pain in the ass callers have found a way around the NO CALL list.  The new 1-800 service calls come from the companies we have put on the list.  I bought a phone that blocks numbers.  Problem solved.

  • Anonymous

    Get Caller-ID.  It is worth it.

  • Anonymous

    Why do you people constantly talk about TAX dollars.  The post office receives no money from taxes.

  • Anonymous

    I agree and so does my sister who works at the post office for 18 years. Most of the employees know how much waste there is there but the top heavy management does not want to hear any suggestions from the little people.   

  • ChuckMock

    here you go, genius…
    it is better to be thought a fool than to open one’s mouth (or type with one’s fingers) and remove all doubt.The USPS does get some taxpayer support. Around $96 million is budgeted annually by Congress for the “Postal Service Fund.” These funds are used to compensate USPS for postage-free mailing for all legally blind persons and for mail-in election ballots sent from US citizens living overseas. A portion of the funds also pays USPS for providing address information to state and local child support enforcement agencies.

  • ChuckMock

    i don’t care what FedEx and UPS does – they don’t receive our tax dollars in order to stay in business each year.

  • Anonymous

    You might’ve missed the first part of my statement…neither does the post office.  They take their money not from taxes but from sell of stamps and their services.  That’s why they are defaulting because they can’t just ask for tax money.   See BooBoo Bear’s response on what funds they do take from us.  It’s not going to envelopes.

  • http://profiles.google.com/bobapril Mark Hall

    Who is bailing out who?  What the USPS is really asking for is permission to STOP prepaying 75 years of retirement benefits in only 10 years.  If Congress lets them do that, though, the lower payments shows up on their accounting as a higher Federal deficit.  This means that the USPS is not asking for a Federal bailout – they’re asking to STOP providing a USPS bailout to the government.

  • http://pulse.yahoo.com/_M6IGI4ISXX2E7GMK5YQ7HF6FUU david

    i have been a carrier for over 30 years, served my country before that and i can answer your question, contracts are being negoitated right now, its all part of the game. the carriers all across the nation have given up their rights to a two week route inspection and as a result every route in the nation has been adjusted annually which means basically that every minute of every day we are working our butts off, i mean literally, most carriers nationwide get a 30 minute lunch break and they are flying the rest of the day. meanwhile management gives themselves bonus money while they are losing money.  you wll not read that anywhere on the internet will you.  when supervisors and managers start losing their jobs then you will see a change, that will be a cold day in hell

  • Jistout

    free Post office boxes? that is ridiculous. Consider a small town, say Chicago. Over1 MILLION households, how big a building to you think you need to house ONE MILLION PO BOXES??  Can you imagine 1 million people driving to get their mail everyday, how MUCH GAS that would use?? Never mind the traffic jams and accidents.  A single carrier delivers to an average of 480 addresses a day don’t you think that is a whole lot more efficient?.

  • Knight954

    You forgot to add that because the goverment mis-calculated the Postal Service health retiree contribution amounts years ago the Postal Service has overpayed this account by over $65 Billion . Because of the error they are still over paying and can not stop unitl law is changed. You also forgot to mention that the Postal Service is the only work force that is mandated to make this payment in advance. Granted the Postal Service will need to restructure with changing times and technology. The Postal Service is not asking for a (Bail Out) and is not part of the any Federal funding. How about changing law, give the Postal Service the over payment back and let them restructure. No because the dgoverment has already spent that money along with the Trillioun dollar dept!

  • Jistout

    I suppose I could get my newspaper boy to deliver my mail, if i didn’t care whose mail I got, you know, just fling random packets of mail on my lawn, at least least I have something to read and if I feel the need, I may just pay some of those random bills.

  • Anonymous

    Thanks!  Maybe I will give it consideration.

  • Souzak99

    If they take bailout money, then our taxes are going to support their business, and so they ARE using our tax money,.

  • Souzak99

    I believe by saying that boxes and envelopes are free, it’s meant that you can walk into a post office and grab a hand full of flat rate boxs or envelopes and leave.  You don’t have to purchase them to take them.

  • Souzak99

    Typical corporate attitude.  You find that everywhere.

  • Souzak99

    You can opt out of receiving junk mail.  It cuts down on it tremendously.

  • Souzak99

    You can opt out of receiving junk mail.  It cuts down on it tremendously.

  • Souzak99

    True, and a lot of small towns require residents to have a P.O. box because they don’t have home delivery.

  • Souzak99
  • sew what

    I’ll name one… the IRS.

  • Sew What

    No, they are NOT asking for money.  They are asking for a refund of the overpayment everyone is in agreement that they’ve paid.  They’re paying “benefits” of workers that haven’t even been born yet, 75 years into the furture to be exact.  Google it… it’s common knowlege so shouldn’t be too hard to check out if you want the facts.

      The money goes straight to the treasury and has absolutely nothing to do with benefits and it’s offset in the national budget as a GAIN in revenue.

    If you get an income tax refund, is that also considered a ”bailout”????

  • Jimr72748

    Someone that knows what they are talking

    No, they are NOT asking for money. They are asking for a refund of the overpayment everyone is in agreement that they’ve paid. They’re paying “benefits” of workers that haven’t even been born yet, 75 years into the furture to be exact. Google it… it’s common knowlege so shouldn’t be too hard to check out if you want the facts. The money goes straight to the treasury and has absolutely nothing to do with benefits and it’s offset in the national budget as a GAIN in revenue. If you get an income tax refund, is that also considered a “bailout”????     

  • Jimr72748

    Post office makes over a billion in profit every year, what is so had to understand, for the last 6 years that have had to fund retirment for workers that haven’t been born yet .  if they can pay for there salaries
    with the profit we can call them all CEOs. They are the only part of the goverment that pats its own way.

  • Natritious

    he doesn’t want it to go out of business he is just pointing out that you cannot run at a loss paying workers more than they are worth.

  • Natritious

    hmmmm, so the choice is take a pay cut or find a real job that doesn’t give you rediculous benefits and treat you like a god

  • Natritious

    “postal service pays it’s own way” I wish i could go to my bar run up a $100 tab and have the nerve to say I pay my own way.

  • Natrituous

    “postal service pays it’s own way” I wish i could go to my bar run up a
    $100 tab and have the nerve to say I pay my own way.

  • Natritious

    another reason to privatize

  • Natritious

    they should have 100′s of individual P.O. box Buildings and people can walk to get their mail. I think the idea of it being free is impossible though

  • THIS IS A BAD IDEA

    shutup it supplies hundreds of thousands of ppl with jobs, lets see if your still saying that when the United States goes into another depression because of this

  • THIS IS A BAD IDEA

    better solution: Shut down SOME post offices, spread those employees out to other post offices in the region. And dont pay AS much. Plus what happens if someone doesnt HAVE internet, or cant AFFORD a computer. ALSO what happens to the hundreds of thousands of EMPLOYEES that the postal service has. IF they fire them the United states is pushed CLOSER to yet another RECCESION. Think before you speek.

  • Anonymous

    YOU are wrong. It is just the opposite.The 5 billion dollars is what the Post Office has to pay into their healthcare plan & Retirement Plan. So NO ONE is out any Taxpayers money! The whole thing is not true! the President of the UNION needs to go on all the news channels and tell the Story to all American people! Every channel should let him tell the real story!

  • Anonymous

    there needs to be a third Party to run and could they may even win!

  • Anonymous

    A Third-Party run would probably assure a Tea-Party Win!

  • Procras48

    Most of you people are sheep.  A politician stands up (bend over the trougf) to claim the Postal Service is begging for money.  And you believe this California multi-millionare?  Get real.  Breaking the Postal Service will somehow be profitable to these leaches.  The hell with service to the the people.
    The Postal Service is top heavy, not bottom heavy.  Fix that and it would REALLY be a great service.
    Issa is on my list to be removed from any so called representation of the people of California.
    I only have 1100 homes in my tract but I will convince every single one to oust him.

  • Procras48

    Do you know how many jobs are created through that junk mail?

  • Procras48

    what a stupid response

  • Gdw

      Dear GibbJabb, as a postal employee I must take issue with you over your assessment of the post office’s situation.  First off our pay is roughly equivalent, and sometimes less than full-time employees at either Fed-Ex or UPS.  Secondly even if we were paid slightly more than these people, and I mean slightly, we would still be soluable as a company if we did not have to pay the 5.5 billion dollars per year for ten years, to fund a retirement fund for 75 years.  I have looked at the data and since it’s inception in 1971 we have more than paid our way until 2006, and as a matter of fact if we had not been forced by law to pre-fund this account we would be right now over 600 million dollars in the black. No company or federal agency has ever had to do this.  This all started coincidentally in 2006, when the postal service had a surplus.  Congress passed the bill at that time.  Also it was about that time that the mail volume began it’s major drop . .  this has been going on now for 5 years.  Even still, the Postal service has cut over a fourth of it’s work force, as well as other measures to cut back on expenses. What really galls me most is when people start comparing us to either UPS or FED-EX as if it was an even playing field and we are simply mis-managing things.UPS and FED-EX, unlike the Postal Service has the ability,because they aren’t restricted by law, to do as they will, whether it is pricing, or where they choose to deliver or not deliver.  They raise their prices EVERY YEAR, but no one ever complains because they are a COMPANY!  As times change the Postal service will have to change, I agree, and be downsized accordingly, which we ARE doing. But this doesn’t have to mean that some apocalyptic even has to occur in 2011 or 2012 to usher this change in.  This can be easily done transitionally over the next several years.  There is plenty of money in the overpayment account, which does not belong to the government as it is from revenue that we collected, and not from the tax payers of America.  All we are asking of Congress is to stop milking us for the 5 1/2 billion per year and give us back just a fraction of the money they “borrowed” from us.  then we can proceed with an orderly and phased downscale that won’t cause anyone any major disaster.

  • Williamb

    concerned.
    I think you have your facts wrong about mail volume being up since “computers and the internet have come of age”.  Mail delivery total volume hovered basically flat between 200B-213B at its peak between 2000 and 2006.  The recession sparked a steep decline, but it is projected to decline yearly at a rate of around 2% through the year 2020, and this projection is probably a bit optimistic.  I worked on the study that did these projections for USPS and can tell you there are other factors not counted in this study that might drop it considerably.  One is the sharp decline in the proliferation of junk mail.  Unsolicited mail accounts for a large percentage of non first class mail, and the majority of it is sent from around 500 companies.  Once these companies stop mailing, we will see a drastic drop in the number of pieces.  Another factor in all of this is the expansion of broadband to lower income homes in urban areas, and the expansion of high speed internet to rural areas.  This will fuel the drop as well. Plus, just think if Netflix goes completely digital. At 24 million subscribers with an average of 100 mailings a year (1 in/1 out), thats 1 percent of the mailing pieces alone.  

  • http://www.facebook.com/people/Travis-Lane-Miller/1191090465 Travis Lane Miller

    That’s hilarious, if the Union gave money back, the supervisors and managers would just put it in their pockets, that’s already been proven.

  • http://www.facebook.com/people/Travis-Lane-Miller/1191090465 Travis Lane Miller

    It’s not run by the Union, there’s a lot of speculation about ideas like that.  Upper management made decisions years and years ago such as giving parcel business away before online ordering was popular, thinking the first class letter would always be around.  That pretty much fueled the fire to get Fed Ex and UPS in business and that gave way to what the parcel business is today.  Not buying jets caused the USPS to depend on Fed Ex and UPS jets for air mail.  The series of decisions such as those made by management has allowed the competition to meet their business demands while expanding their business even overseas where the USPS delivers only in the US.  It appears the decisions made by management years ago has set forth motion that can’t be reversed in a global economy because of the dependence upon other delivery services that were born from demand and decisions made by management.   The Union doesn’t give bonus checks to managers and the contract was written up by management and the Union, not the Union alone.  Probably the best bet would be for Postal workers to seek work at UPS and Fed Ex.  They are already privatized and have a much better structure than the USPS.  The myth that veterans have it made there may have once been true, but now it is a myth.

  • Anonymous

    There may have been screwy decisions on the management’s hand, but as much blood of the USPS is on their hands, it’s equally matched by the unions.
    http://www.theblaze.com/stories/u-s-postal-service-may-be-forced-to-close-for-the-winter/
    “Currently, labor costs represent 80 percent of the agency’s expenses (as opposed to UPS’ 53 percent and Fedex’s 32 percent) and costs continue to rise and grow with the help of such incredibly, unthinkably harmful provisions as the “no-layoff” clause in union contracts.
    Moreover, it has been discovered recently that the USPS has overpaid an estimated $60 billioninto its employee pension plans.
    You read that correctly. $60 billion. Extremely generous benefits, employees that cannot be fired, and $60 billion overpaid in pensions. That would explain the 80 percent labor costs.”
    The blame is equal, management and unions.  But the story seems to always be the same: the worst off companies are always unionized.

  • Anonymous

    Its to bad you do not have all the facts. The US postal service is the only Business that is required to pay its retiree’s benefits in advanced and on top of that the federal gov. calculated the incorrect percentage years ago creating the error. The question should be where is the money that was over paid to OPM and why is it not being return which would resolve the money issue at hand. Second the US Post Office has the losest prices through out the world and the only country that forwards your mail for free up to one year. And third the US Postal Service does not use any tax dollars to survive only what it makes off the services and items it sales, not like the bank and automotive bailouts. If you didn’t have the unions protecting the workers then you have things like items you buy today made in forgein sweat shops maned by child labor. Its sure is funny in the news how they are asking Americans to buy products made in America to promote jobs here and the unions have been stating that for decades. 

  • Anonymous

    So its not that they are giving the Postal Service money for nothing but for a service provided? 

  • Anonymous

    If the system was fully privatized, sympathies would be had, but in the mean time I won’t have them.  USPS is a quasi-government agency, so rules that may seem arbitrary will tend to pop up.  The best solution would be to privatize and have their own hand at it.  They’ll be able to do 401(k)’s and get away from the cushy comfort of government ownership that comes with the arbitrary rules.

    It’s nice that the USPS has the lowest prices, but unfortunately, that model has failed and they need to change.  Whether that means firing people, closing down offices, distribution centers and the like would seem like something that needs to seriously be considered.  And when there are post offices right across the street from each other, as is the case in New York, for example, you’re only further proving the incompetence which comes from a government agency which will always believe that when they’re down on their luck, the government will be there to bail them out as previously.

    Actually, the USPS does use tax dollars.  That’s where they’re getting their loans from.  So, if they collapse, it’s the taxpayers out the money.

    And don’t even get me started on unions protecting the workers.  There’s a clause in their contracts saying they can’t be fired.  That’s not protection, that’s extortion.  No private company would ever, ever sign a contract like that.  And don’t bring up this “child labor” bs.  It’s bs and you dang well know it.  Unions are why the country is collapsing, whether it’s the education system which is garbage, the post office which is trash, GMC and Chrysler, or on and on, unions are behind it.

    It sure is funny how unions accept no responsibility, it’s always someone else’s fault, eh?

    If you’re interested, here’s an article you should read in regards to what should happen to the post office http://www.washingtontimes.com/news/2011/nov/10/only-way-to-save-usps-privatization/

  • Anonymous

    I think either UPS (United Parcel Service) or FEDEX should take complete control over the USPS. UPS already has ‘UPS Stores’ where they rent out PO style mailboxes, sell shipping materials (cardboard boxes, tape, styrofoam peanuts, etc.), as well as offering printing services. I want to know, why hasn’t anyone thought of this before now? Everyone can still send and receive mail as usual, and the USPS can be dissolved as we now know it, without the added burdon of taxpayer money being used for another ‘bailout’.

  • Anonymous

    Oh, sure….then those poor folks in the middle of nowhere will not get anything by mail or parcels. Why? because those routes/deliveries are not profitable. What bailout are you talking about??  All USPS is asking is that Congress lift their restrictions and rules and allow them to run more like a business so they can raise prices, lower costs like eliminate Saturday delivery.  Bet you didn’t know that they have to get approval for some of the changes they want to make.

  • Anonymous

    With all of the junk mail that gets sent out every day, you’d think the post office would be bringing in more money than they do. Unless they are squandering it away like members of congress.

  • Anonymous

    Im glad I fled the postal service in July 2000.  It was deteriorating back then and gays should never entered the US Postal Service, another Dont Ask, Dont Tell.

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