Postal Service May Cut 120,000 Jobs

Party Rooster

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Postal Service May Cut 120,000 Jobs

By THE ASSOCIATED PRESS
Published: August 11, 2011 at 6:33 PM ET

Facing a second year of losses totaling $8 billion or more, the agency also wants to pull its workers out of the retirement and health benefits plans covering federal workers and set up its own benefit systems.

Congressional approval would be needed for either step, and both could be expected to face severe opposition from postal unions which have contracts that ban layoffs.

The post office has cut 110,000 jobs over the last four years and is currently engaged in eliminating 7,500 administrative staff. In its 2010 annual report, the agency said it had 583,908 career employees.

The loss of mail to the Internet and the decline in advertising caused by the recession have rocked the agency.

Postal officials have said they will be unable to make a $5.5 billion payment to cover future employee health care costs due Sept. 30. It is the only federal agency required to make such a payment but, because of the complex way government finances are counted, eliminating it would make the federal budget deficit appear $5.5 billion larger.

If Congress doesn't act and current losses continue, the post office will be unable to make that payment at the end of September because it will have reached its borrowing limit and simply won't have the cash to do so, the agency said earlier.

In that event, Postmaster General Patrick Donahoe said, "Our intent is to continue to deliver the mail, pay our employees and pay our suppliers."

Postal officials have sought congressional assistance repeatedly over the last few years, including requests to be allowed to end Saturday mail delivery, and several bills have been proposed, but none has been acted on.

In addition the post office recently said it is considering closing 3,653 post offices, stations and other facilities, about one-10th of its offices around the country, in an effort to save money. Offices under consideration for closing are largely rural with little traffic.

And in June the post office suspended contributions to its employees' pension fund, which it said was overfunded.

In its 2010 annual report the post office reported a loss of more than $8 billion on revenues of $67 billion and expenses of $75 billion.

And even while total mail volume fell from 202 billion items to 170 billion from 2008 to 2010 the number of places the agency has to deliver mail increased by 1.7 million as Americans built new homes, offices and businesses.

The latest cutback plans were first reported by The Washington Post, which said a notice to employees informing them of its proposals stated: "Financial crisis calls for significant actions, we will be insolvent next month due to significant declines in mail volume and retiree health benefit prefunding costs imposed by Congress."

http://www.nytimes.com/aponline/2011/08/11/us/politics/AP-US-Postal-Problems.html?_r=1
Would rather have them jack the rates a few more cents than quit Saturday delivery though...
 

lajikal

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Just got a notice in the mail today saying they may be changing up their shit like they do "every once in a while."
 

ruckstande

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#3
Just got a notice in the mail today saying they may be changing up their shit like they do "every once in a while."
So UPS can get it right but the Post Office can't figure shit out?
 

CousinDave

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So UPS can get it right but the Post Office can't figure shit out?

UPS and FedEx want nothing to do with the First Class Letter.

The First Class Letter is a loser for the USPS, until the PO can charge a reasonable market price for First Class Mail, it will lose money.
 

ruckstande

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UPS and FedEx want nothing to do with the First Class Letter.

The First Class Letter is a loser for the USPS, until the PO can charge a reasonable market price for First Class Mail, it will lose money.
I would think the volume of it all would pull a profit.
 

mascan42

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#6
Saturday delivery has been on the chopping block for the past few years. Of course, that's just the beginning of the end for the USPS. A decade from now, we'll either have a completely privatized postal system, or competitive mail delivery from UPS and Fedex (possibly also DHL since they have the management experience of running the German postal system).
 

CousinDave

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I would think the volume of it all would pull a profit.
there is obviously a lot of fat in the USPS to cut, every zip code does not need a PO. Don't need 6 day a week delivery (although that would suck for Netflix customers) But so long as sending a First Class letter from NYC to Juno costs the same as sending a First Class letter from Dallas to Fort Worth, the PO will lose money.
 

CousinDave

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Saturday delivery has been on the chopping block for the past few years. Of course, that's just the beginning of the end for the USPS. A decade from now, we'll either have a completely privatized postal system, or competitive mail delivery from UPS and Fedex (possibly also DHL since they have the management experience of running the German postal system).

The Post Office is Constitutionally mandated.


But there has to be a major change of some sort or the PO will continue to lose money.
 

Ballbuster1

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I would think the volume of it all would pull a profit.
But does it really get big bucks? Most people don't use the regular mail much any more.
Most of my bills are paid online and I communicate by email. The little mail I do get is
junk mail that gets a bulk mailing discount. Too much cheap mail with not many paying
full fare has got to hurt.
 
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Its no surprise they would cut something that the constitution actually supports and something that is a real service that people like. Police will be cut also and the ones left will be tax collectors... I mean handing out tickets.
 

fletcher

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#11
Saturday delivery has been on the chopping block for the past few years. Of course, that's just the beginning of the end for the USPS. A decade from now, we'll either have a completely privatized postal system, or competitive mail delivery from UPS and Fedex (possibly also DHL since they have the management experience of running the German postal system).
DHL still exists in the US? I thought they folded a few years ago.

6 day delivery will be the first to go. When the organization can stop wasting time and just pull the trigger it will benefit the entire organization. The last I heard Wednesday would be cut out of the delivery schedule but Saturday just makes more sense. As for Netflix, they are moving (like all media these days) to a more predominantly digital distribution. That will continue to happen for a long time before the USPS cuts a day from their delivery schedule.
 

Party Rooster

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I would think the volume of it all would pull a profit.
Raising the cost of a First Class Mail stamp a nickel would probably bring them into the black. Problem is the big media mail companies lobby hard against that.

Saturday delivery has been on the chopping block for the past few years. Of course, that's just the beginning of the end for the USPS. A decade from now, we'll either have a completely privatized postal system, or competitive mail delivery from UPS and Fedex (possibly also DHL since they have the management experience of running the German postal system).
There's no way we're going to "outsource" the USPS to some foreign company or even just privatize it.
 

lajikal

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So UPS can get it right but the Post Office can't figure shit out?
UPS and FedEx want nothing to do with the First Class Letter.

The First Class Letter is a loser for the USPS, until the PO can charge a reasonable market price for First Class Mail, it will lose money.
Yeah. The first line in the notice reads: You may soon notice a change in the time of day your mail is delivered, or you may begin to receive your mail from a different letter carrier. Basically, good 'ol mister mcfelly is jobless from what i gather kids.
 

bill333

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#15
It's kind of misleading. They overpaid $50 billion minimal into retirement, per requirement but that was most likelty dipped into by somebody in congress. The decline in advertising is a lie because it was stated before to us, that 1st class mail is down but advertising has gone up. There was also an accountancy lie years ago too. Lying cunts.
I just wish all these greedy bastards in Washington on down would die, choking on the very money they sell their souls for. That would be a good SAW movie scene. Them restrained in a chair with money forced down their throat.

Come on, oh great asteroid
 

CousinDave

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#17
Raising the cost of a First Class Mail stamp a nickel would probably bring them into the black. Problem is the big media mail companies lobby hard against that.


Probably. I'm pretty sure I read that the USPS makes money or breaks even with Priority Mail & Express Mail including shipping internationally.
 

the Streif

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Its no surprise they would cut something that the constitution actually supports and something that is a real service that people like.
The Post Office delivers nothing that I want, therefore it is not a real service that I like. What they do deliver is considered spam in the online world. Fliers and ads that go right into my trash can and eventually into a landfill. If the same rules applied to postal mail that apply to email, Giant Eagle and the likes would probably all be getting prosecuted for email spam because most of the crap I get in my mailbox is stuff I never asked for and have no way to stop. And no, I never signed up for any of those frequent shopper cards that require a mailing address like most people do.

A real service that I would like to see happen would be for the Untied States Air Force to fly over the middle east and nuke it into a glass parking lot. But that's a different thread I guess.
 

lajikal

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One more line reads: the changes also help to keep postage costs as low as possible, which is why postage prices in the us are among the lowest when compared to other industrialized countries. Basically, it's not our fault. Ok.
 

CousinDave

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#20
But does it really get big bucks? Most people don't use the regular mail much any more.
Most of my bills are paid online and I communicate by email. The little mail I do get is
junk mail that gets a bulk mailing discount. Too much cheap mail with not many paying
full fare has got to hurt.


Same for me, aside from Netflix & magazines I get nothing in the mail (not including parcels) that I even look at, everything else is electronic for me.
 

mascan42

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#21
Its no surprise they would cut something that the constitution actually supports and something that is a real service that people like. Police will be cut also and the ones left will be tax collectors... I mean handing out tickets.
The real problem is that these cuts don't affect anything, since the USPS hasn't been taxpayer-funded in 40 years.
 

lajikal

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#22
Netflix and property taxes (even though I pay online)/mvd/court shit. Spam mail. Used to order porn catalogs as a kid under a different name but don't even do that anymore thanks to the Internet.
 

bill333

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#23
DHL still exists in the US? I thought they folded a few years ago.

6 day delivery will be the first to go. When the organization can stop wasting time and just pull the trigger it will benefit the entire organization. The last I heard Wednesday would be cut out of the delivery schedule but Saturday just makes more sense. As for Netflix, they are moving (like all media these days) to a more predominantly digital distribution. That will continue to happen for a long time before the USPS cuts a day from their delivery schedule.

DHL did but I think they still have overseas.

Other than being mandated, the reason they can't really let go of Saturday delivery is because that's what seperates them from the other guys, with no extra fee. FedEx and UPS only have to deal with parcels, while USPS has to handle everything. The large envelope/magazine sorting machine they just brought in to the plants is the size of a football field. It'll take over any sorting in the office, taking away time in the office and putting more time on the street. The window service will still be in place but delivery and fuel/vehicle costs would be saved, by their numbers.

I'd hate to see if it ever were to go private. The other companies won't have any price competition, the USPS has to operate at cost.
 

Danesy

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#24
There's nothing that I get in the mail that is of any use to me. Every bill I pay is no longer delivered I get them in my email. The only crap I get is catalogs I didn't order, Bed Bath and Beyond 20 percent off coupons (I get at least 3 a week!) and advertisements trying to get me to change banks or car insurance. It all goes in the garbage.
 

whiskeyguy

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...and both could be expected to face severe opposition from postal unions which have contracts that ban layoffs.
This line sums it up. They don't need 120,000 employees to do the same job, but they can't lay them off. Operating in that type of environment is going to doom them. That and the obnoxious retirements these people get.

Home delivery is a thing of the past. Rural residents should have to visit local post offices that take deliveries once or twice a week (a few up here already do that), and grouped mailboxes should become the norm. If someone is disabled and unable to walk/drive to one of the grouped mailboxes, then they can apply for an exemption and get their mail delivered one or two days a week.

I agree, the second to last thing we need right now is more unemployment. The last thing we need right now is taxpayer subsidized federal jobs that aren't necessary.