News U.S. Postal Service on the Verge of Collapse

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The U.S. Postal Service (USPS) is facing a severe financial crisis, operating at a deficit of nearly $9 billion, with warnings from the Postmaster General about potential default on retiree health benefit payments. Mail volume has decreased by 20-25% due to the rise of digital communication, making it difficult for USPS to cut costs in line with declining revenues. Proposed solutions include ending Saturday deliveries and transitioning to community mailboxes, which could reduce operational costs significantly. The current union agreements, including a no-layoff clause, complicate restructuring efforts, as USPS is required to pre-fund retirement accounts unlike other government entities. Without legislative intervention, USPS risks running out of funds and potentially shutting down in the near future.
DoggerDan
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.
 
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I can't remember the last time I sent any mail. I sent an big envelope last month, but that was through fedex. USPS will need to cut back, that is obvious. Just the sign of the times. I support removing sat service for one thing.
 
Their union agreement was extended through 2015 back in May 2011.http://www.washingtonpost.com/blogs...ntract-ratified/2011/05/12/AFrpFNyG_blog.html

Now a large payment is due to retirees.
http://www.csmonitor.com/USA/2011/0...seeks-reprieve-from-Congress-to-avert-default

"In a Senate hearing that once again rang an alarm bell on the dire straits the US Postal Service is in, US Postmaster General Patrick Donahoe said the institution is on “the brink of default.” He also told Congress that without legislation by Sept. 30, the Postal Service would default on a mandated $5.5 billion retiree health benefit payment due this month.

Mr. Donahoe told Congress that unless lawmakers enact emergency measures, the Postal Service (USPS) could shut down entirely this winter and completely run out of money to pay salaries and contractors by August or September of next year"


***

My question - with deficits of almost $9Billion - why did they extend the union agreement prior to evaluating the system?

http://www.pri.org/stories/politics-society/government/will-the-postal-service-shut-down5780.html
""The Postal Service is running out of money," according to Steven Greenhouse, labor and workplace correspondent for The New York Times. "It's operating at a deficit of $9 billion which is a whole lot of money." Unless Congress takes emergency action soon to save the Postal Service, officials say they could run out of cash by the end of this year, or next year.

A large part of the problem is that the Postal Service simply hasn't been able to adapt to competition from the internet, Greenhouse reports. Instead of sending letters, people send emails. Instead of receiving magazines and newspapers through the mail, people have starting reading more online.

"Mail volume has plunged in recent years by 20 to 25 percent," Greenhouse told PRI's The Takeaway, and postal revenues have gone down at the same time. The Postal Service, according to Greenhouse, is "having a hard time cutting its cost as fast as its volume and revenue drop."

Now, Postal officials are trying to cut costs by as much as $20 billion or 30 percent in the next four or five years. One of the proposals is to end Saturday mail service throughout the United States, but some have strenuously objected to that. Congresswoman Susan Collins from Maine brought up the fact that ending Saturday service could seriously hurt rural Americans."

****

How can ANYONE expect Congress to fix this mess?
 
Huh? The post office? What do they do?
 
USPS is required to pre-fund the retirement accounts, like a business, and unlike most other governmental bodies. Additionally, the USPS has a no-layoff contract, and to reach the staffing levels they would like to be at today for the volume of mail carried, they need something like 12 years worth of attrition.

One proposal is to relax the first restriction, and allow the USPS to continue to operate, drawing down the pension surplus. The other proposal is to end the no-layoff provision and reduce the letter carrier/letter ratio to where it was 2 or 3 years ago.

As you might imagine, each proposal has its advocates.
 
First Class mail used to subsidize other forms but doesn't any more AND the P.O has to keep open lots of small rural P.O.s that would NEVER be tolerated by a totally for-profit corporation.

At the very least they're going to have to drop Sat deliveries and possibly another day as well, and they are going to have to close lots of small P.O.s

I hear folks pissing and moaning all the time about how poor the services is but I think that's total BS. For 44 cents you can stick an envelope on your front porch and have it show up all the way across the country in a couple of days.

I've mailed something like 800 packages over the last several years, and had hundreds more mailed to me, and not ONE of them has gotten lost. Even during Katrina, when one of my outgoing boxes seemed to have gotten lost, it showed up (28 days after I mailed it)

It's a shame the PO is going the way of the dodo bird, but they just don't have a viable business model in today's world. I can't see that ANYBODY is going to fix the systemic problems other than by reducing service. I hope they can hang on.
 
Pengwuino said:
Huh? The post office? What do they do?

They deliver DVDs for Netflix. Duh!

End the individual home delivery and go to community mailboxes as is done in apartment buildings. This has been done for some time in newer neighborhoods and business complexes. In my sister's neighborhood, each block has its own delivery point. Each community mailbox station could displace fifteen to thirty individual home deliveries.

Exemptions could be made for the disabled and other hardship cases.

Then, farm out the neighborhood station deliveries to UPS. :biggrin:
 
Ivan Seeking said:
They deliver DVDs for Netflix. Duh!

End the individual home delivery and go to community mailboxes as is done in apartment buildings. This has been done for some time in newer neighborhoods and business complexes. In my sister's neighborhood, each block has its own delivery point. Each community mailbox station could displace fifteen to thirty individual home deliveries.

Exemptions could be made for the disabled and other hardship cases.

Then, farm out the neighborhood station deliveries to UPS. :biggrin:
It's amazing that so many parts of the country still have door to door delivery.

That's a luxury we can can no longer afford. Heck where I live now, the mailboxes are next to the manager's office (4 blocks from me).
 
  • #10
Ivan Seeking said:
They deliver DVDs for Netflix. Duh!

End the individual home delivery and go to community mailboxes as is done in apartment buildings. This has been done for some time in newer neighborhoods and business complexes. In my sister's neighborhood, each block has its own delivery point. Each community mailbox station could displace fifteen to thirty individual home deliveries.

Exemptions could be made for the disabled and other hardship cases.

Then, farm out the neighborhood station deliveries to UPS. :biggrin:

OH the Netflix Guy! :D

Evo said:
It's amazing that so many parts of the country still have door to door delivery.

That's a luxury we can can no longer afford. Heck where I live now, the mailboxes are next to the manager's office (4 blocks from me).

Seriously, how long did we figure this was going to keep up? We should just cut USPS loose to operate like a real business. At the least it'll accelerate everyones move to on-line banking and bill paying and reduce the paper waste. I mean, in the world of the internet and fax machines, do we seriously need to physically send 90% of things 2000 miles so someone can read it?
 
  • #11
Ivan Seeking said:
They deliver DVDs for Netflix. Duh!
End the individual home delivery and go to community mailboxes as is done in apartment buildings. This has been done for some time in newer neighborhoods and business complexes. In my sister's neighborhood, each block has its own delivery point. Each community mailbox station could displace fifteen to thirty individual home deliveries.

Exemptions could be made for the disabled and other hardship cases.

Then, farm out the neighborhood station deliveries to UPS. :biggrin:

http://seekingalpha.com/article/205559-how-u-s-postal-service-s-struggles-could-impact-netflix I wonder how much they've been helping to keep the USPS relevant for many? Also, I wonder how much the decline of Netflix due to the recent pricing changes will affect the USPS?
 
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  • #12
It's amazing that so many parts of the country still have door to door delivery.

That's a luxury we can can no longer afford.

You are saying the richest country in the world can't afford a postal system? Really? Who can afford such a "luxury?"

Netflix is 1.3% of the USPS first class mail. I wonder how much they've been helping to keep the USPS relevant for many? Also, I wonder how much the decline of Netflix due to the recent pricing changes will affect the USPS?

I'd say at most it could effect about 1.3% of the post offices first-class mail revenue?
 
  • #13
Pengwuino said:
Huh? The post office? What do they do?

You're required to file all your posts with them for their approval before posting. Costs about $0.45 each, and if you don't, they're worse than the IRS chasing you down to collect back payments, penalties, and interest on everything.

The delay isn't long, only about 3 to 10 business days.
Pengwuino said:
OH the Netflix Guy! :D

Same here. I get about five things a year in the mail that I need, want, and expect to receive in the mail, not counting Netflix Blu-rays. I get at least two of those a week, and I'm loving it.

Seriously, how long did we figure this was going to keep up? We should just cut USPS loose to operate like a real business. At the least it'll accelerate everyones move to on-line banking and bill paying and reduce the paper waste. I mean, in the world of the internet and fax machines, do we seriously need to physically send 90% of things 2000 miles so someone can read it?

I'm amazed at how much junk mail keeps being sent by US Mail. They comprise 90% of the mail I receive, either by volume or weight. If the USPS is hurting, there's your culprit. Charge 'em what it actually costs to deliver all that crap. I'm willing to bet half of that crap would go away, and businesses would realize it didn't do much for their business anyway.
 
  • #14
Does anyone remember the Canada Post strike?

http://www.csmonitor.com/World/Americas/2011/0623/Canada-Post-strike-Residents-ask-if-they-really-need-a-postman"

...
“If I get my mail, I get my mail, but if I really have to do something I go on the Internet,” says Janina, a bank teller.
...

About the only thing the USPS delivers to my house anymore is paper to be recycled. Which for me is ok, since I have a wood-stove, and I think I heat my home for about a month in the winter from what I collect in the big box in the corner during the summer.
 
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  • #15
I had a thought: Reduce delivery days to one of the following options:

1. Mon and Wed
2. Mon and Thu
3. Tue and Thu
4. Tue and Fri
5. Wed and Fri

By spreading these out evenly, it would reduce the miles USPS has to travel by more than 50%, as well as the time they spend traveling those routes.

As for objections on the volume, simply cancel advertising/business, and bulk rates on mail. That would force most folks to drop the tree-burning waste.
 
  • #16
I would be completely unopposed to a more central mail system whereby they just deliver it to the post office location. Then people can go and pick up their mail.
 
  • #17
The problem is not that the Post Office has too much to do - and therefore must curtail deliveries - but too little. The mail volume, and thus revenue, have fallen, but payrolls have not, and cannot.

As far as picking up one's mail at the post office, I would be opposed to it. There are at least four post offices closer to me than "mine". In the town I am living in now, the post office on the east side of town delivers mail to folks on the west side, and vice versa. So it's inconvenient for everyone.
 
  • #18
Vanadium 50 said:
The problem is not that the Post Office has too much to do - and therefore must curtail deliveries - but too little. The mail volume, and thus revenue, have fallen, but payrolls have not, and cannot.

The new union contract INCREASES payroll by 3.5%, allows a 30 hour week to be considered "full time", and guarantees 40 to 44 hours per week to some. This agreement was ratified in May 2011 and extends until 2015. How can a Government entity losing over $8Billion per year (that owes a $5Billion benefits payment) be allowed to enter into such an agreement without Congressional approval in advance? The hands of reformers are tied before the discussion begins.
 
  • #19
It's nice work if you can get it.
 
  • #20
Perhaps the (general delivery - junk mail) home delivery should be outsourced to the local newspaper carriers - they work cheap? It would keep them afloat and allow the USPS to greatly reduce staffing - perhaps use the same people to sort mail 3 days per week and deliver 2 days per week.
 
  • #21
If not for the fact that thread subject clearly states "US" I would think we are talking about Polish Post. Surprisingly similar problems.
 
  • #22
USPS should move aggressively to close all the tiny satellite POs and consolidate services to larger offices. In one town near here (Fairfield), there are tiny PO locations, each with a postmaster, serving the villages of Hinckley, Shawmut, and Fairfield Center, all of which are located in Fairfield. The last closure in that town was about 30 years ago when the PO serving the village of Larone was shut down. 4 offices in one town is a bit much.
 
  • #23
First, many of the mail-sorting centers need to be consolidated. The sorting and distribution infrastructure was designed and built during the days of much higher mail volumes, and is running far under capacity now. (These are separate from the retail post offices where you go to buy stamps, etc.)

Second, residential deliveries could be reduced to three days per week, in two shifts. Half of all homes would be served on Monday, Wednesday and Friday, and the other half on Tuesday, Thursday and Saturday. This would cut the number of residential mail carriers in half. The carriers who are still working would work the same number of days, but serve different routes on alternate days.

Business deliveries could still run six days per week, either by assigning certain carriers to daily business-only runs, or by putting each business on two (alternate-day) delivery routes.

Third, postage rates should rise significantly. Our standard letter rate is cheaper than in most other countries, at least the industrialized ones. In next-door Canada, the standard domestic letter rate is CAD 0.59, which is almost exactly the same in USD, and about 1/3 higher than our own letter rate of USD 0.44.

WhoWee said:
perhaps use the same people to sort mail 3 days per week and deliver 2 days per week.

All (or almost all) sorting is now done in large Processing and Distribution Centers (P&DC) that are separate from the local post offices that the carriers are based at. For example, I think the P&DC in Greenville SC serves all of upstate SC except maybe the area just over the state line from Charlotte NC.

From http://en.wikipedia.org/wiki/United_States_Postal_Service#Sorting_and_delivery_process

At the destination P&DC, mail is once again read by a DBCS [Delivery Bar Code System] which sorts the items into their local destinations, including grouping them by individual mail carrier.

At the carrier route level, 95% of letters arrive pre-sorted;[80] the remaining mail must be sorted by hand.

(emphasis added by me)

So, very little sorting actually occurs at local post offices.
 
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  • #24
turbo said:
USPS should move aggressively to close all the tiny satellite POs and consolidate services to larger offices. In one town near here (Fairfield), there are tiny PO locations, each with a postmaster, serving the villages of Hinckley, Shawmut, and Fairfield Center, all of which are located in Fairfield. The last closure in that town was about 30 years ago when the PO serving the village of Larone was shut down. 4 offices in one town is a bit much.

One of the major considerations will be real estate - owned or leased (and specific terms). We have 3 post offices within a 10 minute drive. One is located in a commercial storefront and the other 2 are the tiny satellites you've described. One could assume the storefront costs more to operate than the satellites - but perhaps the satellite locations could be sold at a fair market value rate? It might be reasonable to use some of those units as self serve/pick up locations?
 
  • #25
USPS carries mostly junk mail now. Less than 10% of the load is home to home, 'real' mail. It has become obsolete. Go to one day a week delivery now, and then later kill it off.
 
  • #26
mheslep said:
USPS carries mostly junk mail now. Less than 10% of the load is home to home, 'real' mail. It has become obsolete. Go to one day a week delivery now, and then later kill it off.

True, I check my mailbox once a week and throw 90% of it away.
 
  • #27
Most of our mail consists of:

  • Solicitations for donations (charity, political, etc.)
  • Solicitations from credit-card companies
  • Solicitations from Dish, DirecTV, Charter cable and AT&T
  • Solicitations from auto insurance companies

We still get some useful stuff:

  • Financial statements (credit cards, banks, medical bills, etc.)
  • Magazines (yes, we still read printed magazines)
  • Christmas cards etc.
  • Small packages of DVDs, etc. (OK, these could have gone via UPS or FedEx)

I do most of my banking, credit cards and investments online, but I still like to get printed statements as a backup in case I get locked out of online access to an account because of a screwup in their security procedures. A couple of years ago, one of my credit cards refused to let me log in, even after two or three sessions with a customer service rep over the phone. I've been paying that one by mail ever since. Nothing suspicious ever showed up on my statement, so it wasn't a matter of someone hacking into my account.
 
  • #28
WhoWee said:
and allow the USPS to greatly reduce staffing

That's what I keep trying to tell you. The USPS is not allowed to reduce staffing, except by attrition. They have to pay their staff whether they have work for them or not. So all these great ideas on how to improve efficiency won't do beans.

Expenditures are (approximately) fixed, and revenue is falling. That's why the USPS is in trouble.
 
  • #29
jtbell said:
Most of our mail consists of:

  • Solicitations for donations (charity, political, etc.)
  • Solicitations from credit-card companies
  • Solicitations from Dish, DirecTV, Charter cable and AT&T
  • Solicitations from auto insurance companies
Same here, though I should add that once a week we get a bulk-mailed packet containing identical flyers from two local Associated Grocers-affiliated stores, flyers from two chain supermarkets and usually flyers from WalMart, JC Penny, etc. When those bulk-mailings come out, my niece (who is our rural letter-carrier) generally runs late on her route because she has to stop at every single mailbox, not just the ones that are receiving real mail or have the flag up to indicate outgoing mail. Those flyers are useless to my wife and me, other than alerting us to a sale on food products that we usually buy anyway. I can't burn them in my wood stove because they are printed on coated paper, which burns poorly and leaves lots of ash in the stove. About once a month, I take a very large leaf bag of such useless paper to the town's recycle center. What a waste!
 
  • #30
Vanadium 50 said:
That's what I keep trying to tell you. The USPS is not allowed to reduce staffing, except by attrition. They have to pay their staff whether they have work for them or not. So all these great ideas on how to improve efficiency won't do beans.

Not only that, but Congress is the only entity that can authorize the closing of postal offices (according to an NPR report I heard on the way into work this morning).
 
  • #31
Vanadium 50 said:
The USPS is not allowed to reduce staffing, except by attrition.

I agree, something has to be done about that. A "no layoff" contract is workable only if there is enough attrition that it can be used to adjust staffing downwards when necessary. The USPS is clearly not in that position. I suspect the solution will probably have the USPS declaring bankruptcy so it can tear up its contracts and reorganize as a new, reduced-size entity. I don't know how its legal status (neither a government agency, nor completely private) would influence this.
 
  • #32
Vanadium 50 said:
That's what I keep trying to tell you. The USPS is not allowed to reduce staffing, except by attrition. They have to pay their staff whether they have work for them or not. So all these great ideas on how to improve efficiency won't do beans.

Expenditures are (approximately) fixed, and revenue is falling. That's why the USPS is in trouble.

I understand the ramifications of the new union contract - extended until 2015. It's hard to believe the negotiations were considered in "good faith" - given the financial condition of the USPS and the need for supplemental funding. The last time I checked, the Postmaster General (or whomever signed off) didn't have the authority to obligate the US Government to borrow money.
 
  • #33
Greg Bernhardt said:
True, I check my mailbox once a week and throw 90% of it away.
Yes that's not just my guess, that's a published statistic somewhere, GAO or USPS.
 
  • #34
I just met my mailman at the curb. He was wearing a (not a uniform) grey t-shirt and jeans - was talking on a Blue Tooth headset. He drives a regular mail delivery vehicle - but I'm on a rural route - must be a different dress code?

He handed me 4 pieces of mail - 2 of the 4 pieces belonged to other people (2 other people that lived on 2 different streets) - neither of their house numbers matched mine.
 
  • #35
So...across political and international lines, it kinda sounds like everyone agrees with the idea that the USPS should function basically like a business. Ie, it should be fully self-funded, including actually funding its pension program. Am I seeing that right?
 
  • #36
russ_watters said:
So...across political and international lines, it kinda sounds like everyone agrees with the idea that the USPS should function basically like a business. Ie, it should be fully self-funded, including actually funding its pension program. Am I seeing that right?
There are many other blessings of government granted to USPS besides access to the US Treasury. If it is to be said that the USPS must fairly compete with other business, then it must do more than fund its own operations. It must also borrow at the same rate as a UPS/FedEx; it must not have right of way rules which UPS/FedEx do not have, and so on.
 
  • #37
If they have a backlog of extra employees that must be handled by 12 years of attrition, how will eliminating Sat. delivery help the problem?
 
  • #38
Vanadium 50 said:
That's what I keep trying to tell you. The USPS is not allowed to reduce staffing, except by attrition. They have to pay their staff whether they have work for them or not. So all these great ideas on how to improve efficiency won't do beans.

Expenditures are (approximately) fixed, and revenue is falling. That's why the USPS is in trouble.

I thought they could petition Congress to allow the elimination of positions. Wasn't part of the restructuring request intended to allow a reduction in the size of the work force?

Also, I would think that the number of deliveries per route is a large driver of costs.

Just to be clear. I didn't suggest post-office only mail boxes. I was talking about the community boxes already used in newer neighborhoods where they may have one for each block.
 
  • #39
In 2001, the operating revenues of the USPS were $65.8B. They had salaries, wages and fringes of $51.4B. That's 79%. So the number of deliveries per route - or anything else - can only make an impact on the small one-fifth, not the large four-fifths of the budget.

In FY2010, the USPS had revenues of $67.5B and expenses of $76B. To see the problem more clearly, since labor costs are fixed (rising, actually, as pay increases exceed attrition), take out the ~$61B in payroll for both: they have revenues after they pay their staff of $6.5B and expenses after they pay their staff of $15B. You're not going to fix this by idling a truck or two.
 
  • #41
KingNothing said:
I would be completely unopposed to a more central mail system whereby they just deliver it to the post office location. Then people can go and pick up their mail.

What's the carbon footprint of 1,000 people going to the post office to pick up their mail vs 1 delivery driver driving his daily route of 1,000 residents?


OmCheeto said:
About the only thing the USPS delivers to my house anymore is paper to be recycled. Which for me is ok, since I have a wood-stove, and I think I heat my home for about a month in the winter from what I collect in the big box in the corner during the summer.

Isn't that nice of all those companies who advertise to spend that money supplying you with fuel? You'll have to send them a nice thank-you note. Er, e-mail.

Considering how little most of us pay to mail spam, it'd make more sense if they just sent us a log or two every month.

Vanadium 50 said:
That's what I keep trying to tell you. The USPS is not allowed to reduce staffing, except by attrition. They have to pay their staff whether they have work for them or not. So all these great ideas on how to improve efficiency won't do beans.

Expenditures are (approximately) fixed, and revenue is falling. That's why the USPS is in trouble.

Time for executive intervention, specifically, for someone (the executive branch of the U.S. Government comes to mind) to call a foul on the play, overrule the recent boondoggled union contract, and say, "Tough! We're not raising your rates, and if your position is no longer needed, you're no longer working."

Our government has downsized the military several times over the last 20 years. Why not downsize the postal service workers?

If they're a private company, they've done a very bad job of managing themselves, so let 'em fold.

This raises the question as to why they've done such a bad job of managing themselves. Could it be they've come to expect a bailout, thereby operating with an entitlement mentality instead of a competitive mentality like Fed-Ex and UPS?

Speaking of which, I read the following about http://www.upsmi.com/services/domestic_mail.html" :

"UPS Mail Innovations domestic services rely on our extensive network and unique work share program with the U.S. Postal Service. Because we perform functions such as labeling and sorting of qualified mail that would normally be handled by USPS, we are able to pass along reduced rates to our clients.

"Along with our ability to provide cost savings, our UPS technology enables us to reduce handling, speed processing and improve accuracy when completing typical USPS functions. Through our methods we are able to process and transport domestic mail to its point of induction, on average, within 24-48 hours of pickup. This enhanced process is detailed below (see linked article for details)"

So, if the U.S. Postal Service is allowed to fail, will our mail system fail? Of course not. In all liklihood, both UPS and Fed-Ex would step into fill the void.

So I say, "Let it fail." Some of those workers will be needed by UPS and Fed-Ex, but they'll be hired on a cost-effective competitive basis rather than on a cost-waste union basis.

jtbell said:
I suspect the solution will probably have the USPS declaring bankruptcy so it can tear up its contracts and reorganize as a new, reduced-size entity. I don't know how its legal status (neither a government agency, nor completely private) would influence this.

Provided the U.S. Government can control themselves enough to resist bailing out the USPS, it should fail just fine. :)

russ_watters said:
So...across political and international lines, it kinda sounds like everyone agrees with the idea that the USPS should function basically like a business. Ie, it should be fully self-funded, including actually funding its pension program. Am I seeing that right?

I don't think any entity can afford to "fund" a pension program by means of ongoing income, yet that's exactly what the USPS recently managed to negotiate. Where was the oversight on that decision? That only works in strong growth environments. Steady-state environments would have to match the full amount of an individual's salary throughout the individual's employ in something like a 401k in order for the individual to have even a small pension at retirement.

Ivan Seeking said:
I didn't suggest post-office only mail boxes. I was talking about the community boxes already used in newer neighborhoods where they may have one for each block.

Door-to-door delivery isn't a contract. It's merely expected. If the USPS installed community boxes at their own cost, there may be a bit of an uproar, but that's just too bad. Times are tough all over.

mheslep said:
I note for comparison that the http://www.google.com/finance?hl=en....&biw=1280&bih=899&um=1&ie=UTF-8&sa=N&tab=we" Wiki has the USPS at 574,000 employees.

Good comparison! Do you have any data with respect to their pension programs, as in how much of their current operations revenue is used to pay for pensions? Or were their pensions funded as 401ks or similar instruments?
 
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  • #42
DoggerDan said:
Time for executive intervention, specifically, for someone (the executive branch of the U.S. Government comes to mind) to call a foul on the play, overrule the recent boondoggled union contract, and say, "Tough! We're not raising your rates, and if your position is no longer needed, you're no longer working."

That's hopelessly naive. The APWU has donated millions over the last several years to candidates just to make sure that never happens.
 
  • #43
Vanadium 50 said:
That's hopelessly naive. The APWU has donated millions over the last several years to candidates just to make sure that never happens.
A good reason why government employee unions should be prohibited.
 
  • #44
mheslep said:
A good reason why government employee unions should be prohibited.
We have a serious disconnect, here. Government workers and private-sector workers should be encouraged to participate in collective bargaining so that the rights and desires of the workers are considered in any labor agreement. Such groups should not be allowed to bribe our elected officials. Neither should any other entity, including business groups.

I can't afford to pay either of my senators $20,000 to come to my home and speak to my wife and myself over breakfast, so that our views are at least noted. Thanks to K street, any senator willing to sell out their constituents can retire as a millionaire. Is that right? Postal service workers should have the right to bargain collectively. They should not have the right to bribe elected officials, nor should any business group or wealthy individual. Maybe we'd have healthier government and a bit more turn-over in DC if lobbying was banned to cut off that gravy-train to congress.
 
  • #45
turbo said:
We have a serious disconnect, here. Government workers and private-sector workers should be encouraged to participate in collective bargaining so that the rights and desires of the workers are considered in any labor agreement.
Private-sector employees, of course. Government employees, no, as there can be no true 'bargaining' when the employees elect the guy across the table that purports to do the bargaining. Even FDR knew this.
 
  • #46
turbo said:
We have a serious disconnect, here. Government workers and private-sector workers should be encouraged to participate in collective bargaining so that the rights and desires of the workers are considered in any labor agreement. Such groups should not be allowed to bribe our elected officials. Neither should any other entity, including business groups.

I can't afford to pay either of my senators $20,000 to come to my home and speak to my wife and myself over breakfast, so that our views are at least noted. Thanks to K street, any senator willing to sell out their constituents can retire as a millionaire. Is that right? Postal service workers should have the right to bargain collectively. They should not have the right to bribe elected officials, nor should any business group or wealthy individual. Maybe we'd have healthier government and a bit more turn-over in DC if lobbying was banned to cut off that gravy-train to congress.

The US Postal Service is BUDGETED to lose nearly $8Billion this year - it's their plan - these deficits are subsidized by taxpayers. Their union is ultimately using taxpayer (subsidized) funds to make political donations - how is this fair to taxpayers?
 
  • #47
WhoWee said:
The US Postal Service is BUDGETED to lose nearly $8Billion this year - it's their plan - these deficits are subsidized by taxpayers. Their union is ultimately using taxpayer (subsidized) funds to make political donations - how is this fair to taxpayers?
It is not fair to any voters to have to compete against organized labor or business groups for the attention of our elected officials. I made that abundantly clear in my post.

The union cannot force the USPS board of governors to do anything. The governors made some very bad choices, and they are expecting us (the taxpayers) to pay for their mistakes. It doesn't take too much thinking to see that digital transfers of data, money, bills, etc will increase in popularity, driving down the volume of mail.

I didn't have the Internet in the early 90's but already I was minimizing the amount of paper that I was shipping to my clients. Instead of a bulky chapter (paper pages) of a system description with illustrations, I would mail them a floppy disk or two, and they could print out their own hard-copies.
 
  • #48
turbo said:
It is not fair to any voters to have to compete against organized labor or business groups for the attention of our elected officials. I made that abundantly clear in my post.

The union cannot force the USPS board of governors to do anything. The governors made some very bad choices, and they are expecting us (the taxpayers) to pay for their mistakes. It doesn't take too much thinking to see that digital transfers of data, money, bills, etc will increase in popularity, driving down the volume of mail.

I didn't have the Internet in the early 90's but already I was minimizing the amount of paper that I was shipping to my clients. Instead of a bulky chapter (paper pages) of a system description with illustrations, I would mail them a floppy disk or two, and they could print out their own hard-copies.

How does one support unionization of postal workers and at the same time be against the practices of unions - the two are inseparable.
 
  • #49
USPS needs legislative action to negate and reverse over-payments to its pension fund.

http://www.govexec.com/dailyfed/0411/040511l1.htm
 
  • #50
It would be interesting to see how it would work out if UPS and Fedex were required to deliver tons of junk mail to rural areas, or anywhere for that matter.

I recently watched an interesting political town hall on C- Span. The event was being held by one of Pennsylvania's US Senators. A postal management worker in uniform asked the senator why the USPS was outsourcing the sorting of bar coded mail at 12.4 cents per piece when they could do it in house for 2.4 cents per piece.

According to the postal worker the outsourced sorted mail was then brought back to the main center and dumped into the regular mail bin where it had to be sorted again by postal workers so that it could be integrated for delivery status.

I couldn't find a link to verify what the Postal worker said. On the other hand if that type of thing is going on it would be an obvious scandal.
 

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