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What Economic Recovery? U.S. Postal Service cuts officially (almost) done deal, will “move forward” with austerity measures, Merry Xmas!

As promised, the U.S. Postal Service made its dreaded announcement on December 5.  The USPS filed a request with the Postal Regulatory Commission to “move forward” with austerity measures that will not only cut back service, but eliminate hundreds of thousands of jobs.

“We’re in a deep financial crisis today because we have a business model that’s tied to the past [ie Congress]. We are expected to operate like a business, but don’t have the flexibility to do so [because of rules created by Congress]. Our business model is fundamentally inflexible [no thanks to Congress]. It prevents the postal service from solving its problems.”-Patrick Donahoe, U.S. Postmaster General, November 2011

The plan, supported by the Obama Administration, calls for cutting U.S.$20 billion from operating costs by 2015.  That means closing 252 processing facilities, closing 3,700 post offices, and eliminating 100,000 jobs!!!

The processing centers will be closed by spring 2012.  Job losses just from the closing of processing centers could hit 28,000! Expect delays in getting your mail.

This after the U.S. Congress decided to ‘delay’ any action on their part until after next year’s Presidential elections.  The move guarantees the demise of the USPS, because President Barack Obama set the default date for the Postal Service as December 16, 2010.

In a PBS interview, both the Postmaster General, and the President of the Letter Carrier’s Union said it wasn’t really about lack of business, in fact the Postmaster General said package volume was still good.  It was all about the U.S. Congress ripping off the non-taxpayer funded Postal Service: “The Postal Service actually has somewhere between $50 billion and $125 billion in their other funds that is not taxpayer money. They haven’t used a dime of taxpayer money in over 30 years! And the Congress just needs to act responsibly and quickly to give them access to that — those funds.”- Fredric Rolando, president of the National Association of Letter Carriers

Rolando pointed out that the job losses will go beyond the USPS. It will affect all the companies the USPS contracts with, like FedEx, Siemens, Northrop-Grumman, Pat Salmon & Sons and Campbell-Ewald, to name a few.

Rolando, in the PBS interview, predicted that millions of jobs will eventually be lost because of what’s happening to the USPS!

Merry Xmas Mr. Scrooge, and God bless us, everyone!