U.S. Postal Service on the Verge of Collapse

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I mean, that's a service we can no longer afford.In summary, the US Postal Service is facing financial troubles due to a decrease in mail volume and revenue. They are currently operating at a deficit of $9 billion and have proposed cutting costs by up to $20 billion in the next few years. Some proposals include ending Saturday mail service, reducing the no-layoff contract, and closing small post offices. However, there is debate over which proposal is best and some believe that Congress will not be able to fix the problems. It has been suggested to end individual home delivery and switch to community mailboxes, similar to those in apartment buildings. There is also potential to outsource neighborhood deliveries to other companies.
  • #71
DoggerDan said:
What's this?

http://finance.yahoo.com/blogs/daily-ticker/now-u-postal-belly-153600714.html

They have 650,000 people on the payroll (1 person serving every 461 Americans). One would think at least a few of those 650k have the training and smarts to figure out how to restructure the post office so that it's in the black like the other delivery services out there.

This is a perfect example why all forms of collectivism, from various flavors of socialism to state owned and operated enterprises, eventually must either collapse or turn into parasites on the body public: that people are in name public servants does not make them so, they still have self-interest strongly overriding public interest. If they distribute the costs of their benefits over the rest of society and concentrate the gains on themselves, they will do so.

In Poland, the govt post office is under pressure from commercial operators, so the post office lobbied out the law in government that a letter is a mailing that weighs more than 100 grams or so.

OK, so the commercial operators started adding a small metal plate to the letter and then argued that according to definition that's not a letter since it weighs more than it is written in the law.

Then the post office took the commercial operators to court saying that while the law itself is not good, it must be obeyed. And so on.
 
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  • #72
redsunrise said:
This is a perfect example why all forms of collectivism, from various flavors of socialism to state owned and operated enterprises, eventually must either collapse or turn into parasites on the body public...
So that is to say that the military and police service and fire departments must also either collapse or turn into parasites?
 
  • #73
Gokul43201 said:
So that is to say that the military and police service and fire departments must also either collapse or turn into parasites?
Well, yes! They are all socialist enterprises. If one pays any attention to the right-wing alarmists and gives them any credibility, it might lead to a perception that the US is sliding into communism.
 
  • #74
turbo said:
Well, yes! They are all socialist enterprises. If one pays any attention to the right-wing alarmists and gives them any credibility, it might lead to a perception that the US is sliding into communism.

All drama aside, as long as the military, police, and fire departments don't all join the same union - I don't think it will be a problem.
 
  • #75
WhoWee said:
All drama aside, as long as the military, police, and fire departments don't all join the same union - I don't think it will be a problem.
What has any of this conversation got to do with unionism, and public service? I expect you to provide the same supporting links that you demand of everybody to the left of of Glenn Beck.

Why shouldn't public servants be allowed to bargain collectively? Is there a real danger that is not spawned by right-wing fear-mongering?
 
  • #76
turbo said:
What has any of this conversation got to do with unionism, and public service? I expect you to provide the same supporting links that you demand of everybody to the left of of Glenn Beck.

Why shouldn't public servants be allowed to bargain collectively? Is there a real danger that is not spawned by right-wing fear-mongering?

Did you read my post - or the majority of posts in this thread that cite one of the problems with the USPS is the union agreement? I'll re-post my comment - with bold emphasis on the central point.

All drama aside, as long as the military, police, and fire departments don't all join the same union - I don't think it will be a problem.

Is it "right-wing fear-mongering" to say unionizing the military would be a problem?

What does Glen Beck have to do with this discussion and what exactly do I need to support?
 
  • #77
WhoWee said:
Did you read my post - or the majority of posts in this thread that cite one of the problems with the USPS is the union agreement? I'll re-post my comment - with bold emphasis on the central point.

All drama aside, as long as the military, police, and fire departments don't all join the same union - I don't think it will be a problem.

Is it "right-wing fear-mongering" to say unionizing the military would be a problem?

What does Glen Beck have to do with this discussion and what exactly do I need to support?
You need support because the postal workers have agreed to a 2-year wage freeze, and a 2-tiered wage program in which new hires are paid less than current employees. If you want to continue to blame the postal workers for the faults of the USPS, you ought to provide some real facts regarding why the postal union is causing all the problems, instead of the decisions of the governors and the congressional mandate that requires a $5.5B yearly payment to fund the USPS pension fund. There are facts and studies available. Slogans and talking points don't cut it.
 
  • #78
Turbo, I am a little curious - in previous posts, you seem to indicate that pensions are a good thing, but here you are suggesting funding them is a bad thing. How do you have one without the other?
 
  • #79
Vanadium 50 said:
Turbo, I am a little curious - in previous posts, you seem to indicate that pensions are a good thing, but here you are suggesting funding them is a bad thing. How do you have one without the other?
When an employer (public or private) promises benefits to prospective workers, they should be required to provide those benefits.
 
  • #80
turbo said:
When an employer (public or private) promises benefits to prospective workers, they should be required to provide those benefits.

And how do you propose the USPS does this if they redirect the $5B or so that they would be putting into funding those benefits into operations?
 
  • #81
turbo said:
You need support because the postal workers have agreed to a 2-year wage freeze, and a 2-tiered wage program in which new hires are paid less than current employees. If you want to continue to blame the postal workers for the faults of the USPS, you ought to provide some real facts regarding why the postal union is causing all the problems, instead of the decisions of the governors and the congressional mandate that requires a $5.5B yearly payment to fund the USPS pension fund. There are facts and studies available. Slogans and talking points don't cut it.

Turbo, why would they " have agreed to a 2-year wage freeze, and a 2-tiered wage program in which new hires are paid less than current employees" - unless the wages and benefits of the workers were acknowledged as a problem?
 
  • #82
Vanadium 50 said:
It would depend on the nature of the work and on what the union contract permits. I suspect that the contract is fairly restrictive on this, but don't know for sure.
Yes I suspect you are right, but it would be nice if, say, one percent of the 500,000 could be placed on the southern border or perform other useful activity.

Another item comes to mind. I read that the USPS has the largest vehicle fleet in the world. Yes, simply idling them a couple days of week in reduced service would do little compared to salaries and pensions. But what about selling off part of that fleet?
 
  • #83
mheslep said:
Yes I suspect you are right, but it would be nice if, say, one percent of the 500,000 could be placed on the southern border or perform other useful activity.

Another item comes to mind. I read that the USPS has the largest vehicle fleet in the world. Yes, simply idling them a couple days of week in reduced service would do little compared to salaries and pensions. But what about selling off part of that fleet?

Would selling the fleet be a green enough initiative?

http://about.usps.com/news/national-releases/2011/pr11_098.htm

http://articles.latimes.com/2010/feb/16/business/la-fi-electric-vehicle16-2010feb16
 
  • #84
redsunrise said:
This is a perfect example why all forms of collectivism, from various flavors of socialism to state owned and operated enterprises, eventually must either collapse or turn into parasites on the body public: that people are in name public servants does not make them so, they still have self-interest strongly overriding public interest. If they distribute the costs of their benefits over the rest of society and concentrate the gains on themselves, they will do so.

Good points. I think this is one reason why competition is good. It's a sanity check against the "that's the way we've always done it" mentality which impedes progress. I recall writing my uncle who was living in Africa at the time using airmail paper and envelopes. They weighted less than half that of regular mail. I kept thinking, "Why don't they use this for all mail?" I later thought, "Why don't letters come with self-sticky around the edges so that when you tri-fold it, it becomes it's own envelope?" I suppose stiffer letters jam less in reading and sorting machines.

Along comes e-mail, then various forms of social networking sites. I used to drop about three letters in the mail a week. Now I'm lucky if I drop one in the mail every six months. So, with e-mail and online communication, why do we need the USPS at all? Shipping boxed items, like a new shirt? Perhaps, but UPS does a fair job of that, and if you want speed, FedEx flies into the picture.

Then the post office took the commercial operators to court saying that while the law itself is not good, it must be obeyed. And so on.

"That's the way we've always done it." It's not good, but it must be protected. For some reason. Just to protect some people's jobs? That's not a reason. If the USPS doesn't want to can them, then they should figure out a way do business the way their customers want. Job's legacy is that he brought innovative products to the market that people could actually use. He didn't try to force a kludge. The Mac Cube is a wonderful machine, but people wanted portability, and when he realized they wanted more portability than a laptop i.e. shirt-pocket portability, he brought it to them via their cell phones.

The USPS's modus operandi rests mainly on shippling letters and packages. Yet they cut the workforce that handles the letters and packages. I'm not saying they shouldn't cut workers. I'm saying they spend 3 minutes per person in line to ship a box after the person has been waiting in line for 20 minutes. Meanwhile, I shipped a return via UPS the other day. The online store from which I purchased it has a link that allows me to log in, return an item, check the reason, and the next page is a completely prepared shipping label that took me less than 1 minute to slap on the box. It took me a second minute to drop it off at a drop box near where I live.

Two minutes! Compare that to the USPS's 23 minutes. Not only that, but it was entirely automated - no handlers to weigh and process the package. That's innovation, and the USPS isn't quite there. That's why they're failing.

I admit some centers have a similar do-it-yourself operation, but I've used it, and that's a kludge, too, not to mention the face that I would have to travel to one of their centers, which aren't numerous. Meanwhile, there are three UPS drop shipment locations within a mile of where I live.

How cool is that? Is it any wonder so many businesses ship via UPS or FedEx instead of the U.S. Mail?
 

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