Tag Archives: postal service

Business/Economics, Idaho, U.S.

What Economic Recovery? Government Incompetence: Confusing & conflicting plans to “save” United States Postal Service, thousands will still lose their jobs

On November 2 the U.S. Senate presented a plan to “save” the USPS.

That plan would pay back U.S.$7 billion of the funds Congress stole, I mean, that Congress forced the USPS to overpay in retirement funds.  However, the $7 billion is to be used to buy out employees (a nice way of laying people off, as many as 100,000 employees will lose their jobs in the buy out).  It would also require a two year study before ending Saturday deliveries. The draconian retirement fund payment schedule would be ended as well (it’s the main reason the USPS is in financial trouble).

Then on November 7, the U.S. Postmaster General announced that he will officially present plans to “save” the USPS on November 21!

His plan will include laying off thousands of workers, closing offices and sorting facilities, and ending Saturday deliveries.  He’ll make his official announcement at the November 21, National Press Club Speakers luncheon in Washington DC.

Local Idaho postal workers told me what ever plan is official announced that it’s basically a sham, what’s going down with the USPS is a “done deal”.

 

 

Business/Economics, U.S.

What Economic Recovery? Hundreds of thousands of U.S. Postal Workers to be laid off, Union talks are focusing on how to soften the impact on those who will keep their jobs

“If we do that, it means lower costs – career people leave, more non-careers come in.  Much of that will be attrition, but I don’t know if we can do that fast enough.”-Patrick Donahoe, Postmaster General

The U.S. Postal Service is being forced to lay off so many postal workers that it’s asking Congress to cancel current Union contracts.   220,000 postal workers will be laid off by 2014.

The reality of the situation is forcing the many different unions, involved with the Postal Service, to scramble to negotiations, not to save those jobs, but to soften the impact on those who will keep their jobs.

Those unions are the National Association of Letter Carriers (NALC), the National Postal Mail Handlers Union (NPMHU), and the American Postal Workers’ Union (APWU).

Not only does the USPS want to get rid of 220,000 employees, but they want to shut down as many as 3,700 post offices, close at least 300 processing facilities, and consolidate as many as 20,000 delivery routes.

All that will affect those people who’re “lucky” enough to still have their jobs.  If the negotiations with the unions fails, then it’s on to arbitration.  USPS workers can not legally go on strike, because they are considered Federal employees.

One reason the USPS is short on money, is because the U.S. Congress essentially stole $75 billion from the Postal Service.  Congress said it was to cover the Postal Service’s portion of the Federal Employees Retirement System.  The Postmaster General was able to prove that Congress overcharged the USPS.  The U.S. Congress refused to refund the money.

Another reason is that Congress has refused to raise Postal rates to reflect the increased cost of operation.  It’s almost as if the U.S. Congress wants the USPS to fail!

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by Congress, not the USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government debt.

Business/Economics, U.S.

Government Incompetence & No Economic Recovery for U.S.: Congress screws over the Postal Service, 3,600 offices to close

The USPS lost $8.5 billion in 2010.  It lost $3.8 billion in 2009.  So far this year the USPS has lost $2.2 billion.  The result; the United States Postal Service will make public a list of post offices that could be closed this year, as many as 3,653.

The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge.  The problem is that Congress controls the postage they are allowed to charge, and so far Congress has refused to allow postal rates to reflect the actual operating cost of the USPS.

On top of that, Congress overcharged the USPS $75 billion for the Federal Employees Retirement System plan.  The Postmaster General asked for that money to be returned, but Congress refused (you think they already spent it?).

As a result of incompetence (or is it on purpose?) by our elected officials in Congress,  thousands more USPS employees will lose their jobs.