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Change Is Coming to Many Post Offices

Curt James

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Real reason why USPS is having financial problems.

What’s the real story behind the postal crisis?
By Michael G. Plaskon, Executive Vice President, National Association of Letter Carriers, Branch 84, Pittsburgh, PA.
In every Congressional District across America, Postal Service unionists are organizing rallies to be held on Tuesday, September 27, 2011. The National Association of Letter Carriers is collaborating with the American Postal Workers Union, National Postal Mailhandlers Union, and the National Rural Letter Carriers Association to hold rallies at every elected representative’s office to make the point that only Congress can fix the financial difficulties facing the United States Postal Service (USPS). Congress passed a law in 2006 placing the postal service in its current fiscal situation, and it is only Congress that can solve the problem by enacting H. R. 1351.
Neither workers nor our unions caused this crisis.
In 2006, Congress passed the Postal Accountability and Enhancement Act. This law requires the Postal Service to do something that no other business or government agency has to do–pre-fund its FUTURE retiree health care benefits. This is a 75 year liability that has to be paid in 10 years. The Postal Service makes a payment of approximately $5.5 billion on September 30 at the end of every fiscal year to meet this obligation. The Post Office has been paying these benefits the past four years into a trust fund for employees who have not even been born yet. This is the burden that is creating the “financial crisis” for the Post Office. The recession that has gripped America the past few years has undoubtedly affected the Postal Service, but even in the worst economic times since the great depression, the USPS has had a net profit of $611 million dollars. Unfortunately, the red ink associated with the post office is the mandated pre-funding since 2006.
We can solve the problem without eliminating jobs and services.
This onerous payment is barely being reported in the media. Another fact not being widely circulated is that independent agencies and the government itself have concluded that the USPS has overpaid into its two retirement systems. The Post Office has excessively funded the Civil Service Retirement System by at least $50 billion dollars, and the Federal Employees Retirement System around $7 billion dollars. This gives Congress an opportunity to fix the problem by passing H.R 1351, the United States Postal Service Pension Obligation Recalculation and Restoration Act of 2011. This bill, among many introduced in Congress, is the only one that will address the pressing financial concerns of the post office in a responsible manner without eliminating jobs and services to the American public. The bill introduced by Rep. Stephen Lynch has 211 co-sponsors. This will not be a bailout or cost the citizens of the United States a single penny in taxes. It will simply transfer the overpayments in the retirement system into the future retiree health care obligation. If this law is passed there will be no other company in the United States that can claim two fully funded pensions and a fully funded current and future retiree health care benefits plan.
Why the gloom and doom?
So why all the gloom and doom? There cannot be a claim that “legacy costs” or “benefits” are destroying the USPS. Productivity and reliability can’t be a factor. The Post Office adds a million new delivery points each year and has simultaneously reduced the number of employees nationwide from over 700,000 three years ago to about 590,000 today. On time delivery service standards are at an all time high. The Postal Service has been named the most trusted government agency six years running. So why does Postmaster General Patrick Donahue insist on a plan that eliminates a day of mail delivery service, closes over 3,000 Post Offices and more than half the mail processing plants in the country, and guts the collective bargaining rights of its organized employees by redefining the retirement and health care benefit plans? Disaster Capitalism!
A manufactured crisis
If you have read Naomi Klein’s book “The Shock Doctrine,” then you know what I am talking about. It is almost as if Congress and the USPS headquarters are treating it like a page out of a playbook–manufacture a financial crisis and insist drastic measures must be taken immediately before any facts and public input can get in the way. Seize the opportunity to break the unions and dismantle a reliable public service so the capitalists can let the free market perform what the government couldn’t do–but for a profit. That is what the Postmaster General’s proposals will accomplish–eliminate Saturday delivery and open the door to private competitors. Once that advantage is gone and revenues decline, then why not eliminate Tuesday mail delivery service, then Thursday mail delivery, and so on?
USPS has plans to eliminate over 100,000 jobs and 3,000 post offices.
But how will the private sector respond? Will they have universal pricing and service? Of course not. Those who have a mail box at the end of a dirt road or live in a community that is not affluent will not be profitable, and the service will not be affordable. These are the folks who need the Postal Service the most. The plan to eliminate half the mail processing centers nationwide will delay the time it takes to deliver first class mail. The USPS is planning on lowering its service standards by a day or two once the plan is implemented. What company in their right mind intentionally “plans” on lowering its standards unless they are trying to fail? The closures of an additional 3,000+ post offices will diminish the purpose of the service that binds the nation together. Americans will be inconvenienced to use the USPS and the trust will deteriorate. Changing the retirement and health benefit plans fundamentally alters the collective bargaining agreements. These plans will eliminate over 100,000 jobs at a time when this country cannot afford that kind of blow to the economy. It is unfortunate and hypocritical that the Obama administration has advocated the elimination of Saturday delivery service as part of the deficit-reduction package while insisting on the need for job creation. The U.S. Postal Service is critical to our economy. We deliver mail, medicine, and packages on time and for good price.


What's the Real Story Behind the Postal Crisis? | MyFDL
 
Still Gov't sreweing up Gov't again

pre funding? WTF when would any Gov't agencty pre fund anything? very interesting article tho...
 
Still Gov't sreweing up Gov't again

pre funding? WTF when would any Gov't agencty pre fund anything? very interesting article tho...
Don't be too suprised when it comes out that ups and fed ex lobbied to have this law implemented. Looks like an intentional hand out to private interests by making the post office non-competitive.
 
^^ Pre funding, Thats one of the most absurd things i have ever heard, and they pass such a stupid law and get away with it.^^
 
Many people work during the week. The only chance they get to make it to the post office is on Saturday.

Goodbye Saturday mail? Postal Service plans cuts | Comcast

WASHINGTON ? Saturday mail may soon go the way of the Pony Express and penny postcards. The Postal Service said Wednesday that it plans to cut back to five-day-a-week deliveries for everything except packages to stem its financial losses in a world radically re-ordered by the Internet.

"Our financial condition is urgent," declared Postmaster General Patrick R. Donahoe. But Congress has voted in the past to bar the idea of eliminating Saturday delivery, and his announcement immediately drew protests from some lawmakers. The plan, which is to take effect in August, also brought vigorous objections from farmers, the letter carriers' union and others.

The Postal Service, which suffered a $15.9 billion loss in the past budget year, said it expected to save $2 billion annually with the Saturday cutback. Mail such as letters and magazines would be affected. Delivery of packages of all sizes would continue six days a week.

The plan accentuates one of the agency's strong points: Package delivery has increased by 14 percent since 2010, officials say, while the delivery of letters and other mail has plummeted. Email has decreased the mailing of paper letters, but online purchases have increased package shipping, forcing the Postal Service to adjust to customers' new habits.

"Things change," Donahoe said.
James Valentine, an antiques shop owner in Toledo, wasn't too concerned about the news.

"The mail isn't that important to me anymore. I don't sit around waiting for it to come. It's a sign of the times," he said, adding, "It's not like anyone writes letters anymore."
In fact, the Postal Service has had to adapt to changing times ever since Benjamin Franklin was appointed the first postmaster general by the Continental Congress in 1775. The Pony Express began in 1860, six-day delivery started in 1863, and airmail became the mode in 1918. Twice-a-day delivery was cut to one in 1950 to save money.

But change is not the biggest factor in the agency's predicament ? Congress is. The majority of the service's red ink comes from a 2006 law forcing it to pay about $5.5 billion a year into future retiree health benefits, something no other agency does. Without that payment ? $11.1 billion in a two-year installment last year ? and related labor expenses, the mail agency sustained an operating loss of $2.4 billion for the past fiscal year, lower than the previous year.
Congress also has stymied the service's efforts to close some post offices in small towns.

Under the new plan, mail would be delivered to homes and businesses only from Monday through Friday but would still be delivered to post office boxes on Saturdays. Post offices now open on Saturdays would remain open.
Over the past several years, the Postal Service has advocated shifting to a five-day delivery schedule for mail and packages ? and it repeatedly but unsuccessfully has appealed to Congress to approve the move. An independent agency, the service gets no tax dollars for its day-to-day operations but is subject to congressional control.

The proposed change is based on what appears to be a legal loophole ? and that may be a gamble. Congress has long included a ban on five-day-only delivery in its spending bills, but because the federal government is now operating under a temporary spending measure rather than an appropriations bill, Donahoe says it's the agency's interpretation that it can make the change itself.

"This is not like a `gotcha' or anything like that," he said. The agency essentially wants Congress to keep the ban out of any new spending bill after the temporary measure expires March 27.
Might Congress try to block the idea?

"Let's see what happens," he said. "I can't speak for Congress."

Two Republican lawmakers said they had sent a letter to leaders of the House and Senate in support of the elimination of Saturday mail. It's "common-sense reform," wrote Darrell Issa of California, chairman of the House Oversight and Government Reform Committee, and Tom Coburn of Oklahoma, top Republican on the Senate Homeland Security and Governmental Affairs Committee.

But Alaska Democratic Sen. Mark Begich called it "bad news for Alaskans and small business owners" who he said need timely delivery to rural areas.
Sen. Susan Collins, R-Maine, said she was disappointed, questioned the savings estimate and worried the loss of Saturday service might drive customers away.

"The Postal Service is the linchpin of a $1 trillion mailing and mail-related industry that employs more than 8 million Americans in fields as diverse as direct mail, printing, catalog companies, magazine and newspaper publishing and paper manufacturing," she said. "A healthy Postal Service is not just important to postal customers but also to our national economy."

She noted that the Senate last year passed a bill that would have stopped the postal service from eliminating Saturday service for at least two years and required it to try two years of aggressive cost cutting instead.
The House didn't pass a bill.

Republican House Speaker John Boehner said Wednesday, "I think trying to act in this postal area is pretty difficult. But I understand where the postal commission is coming from. They're in charge with running the post office, but yet the Congress, in its wisdom, has tied their hands every which way in order for them to actually run the post office in a revenue neutral way."
"And so Congress needs to act, there's no question about that, and I hope we'll act soon."

President Barack Obama's spokesman, Jay Carney, said the White House learned only Tuesday about the agency's decision to cut Saturday service. He said the White House is still evaluating the decision but would have preferred its own comprehensive overhaul package that failed to pass Congress last year be adopted "for the sake of a stronger future Postal Service."

The president of the National Association of Letter Carriers, Fredric Rolando, said the cutback is "a disastrous idea that would have a profoundly negative effect on the Postal Service and on millions of customers," particularly businesses, rural communities, the elderly, the disabled and others who depend on Saturday delivery for commerce and communication.

He said the maneuver by Donahoe to make the change "flouts the will of Congress, as expressed annually over the past 30 years in legislation that mandates six-day delivery."
The National Farmers Union said "impacts on rural America will be particularly harmful."

Despite that opposition, the Postal Service clearly thinks it has a majority of the American public on its side. The service's market research indicates that nearly 7 in 10 people support the switch as a way to reduce costs, Donahoe said.
He said the savings would include employee reassignment and attrition.

The agency in November reported a record annual loss of $15.9 billion for the past budget year and forecast more red ink in 2013, capping a tumultuous year in which it was forced to default on the $11 billion in retiree health benefit prepayments to avert bankruptcy.

The financial losses for the fiscal year ending Sept. 30 were more than triple the $5.1 billion loss in the previous year. Having reached its borrowing limit, the mail agency is operating with little cash on hand.

The Postal Service is in the midst of a major restructuring throughout its retail, delivery and mail processing operations. Since 2006, it has cut annual costs by about $15 billion, reduced the size of its career workforce by 193,000, or 28 percent, and has consolidated more than 200 mail processing locations, officials say.

At the DeCicco Food Market in Pelham, N.Y., where they handle the mail for all 10 of their stores, the assistant manager, Frank Torres, said they will try to adjust their routine. I'll tell you, though, the customers are pretty upset, we've been hearing them at the (checkout) registers. Some of them get mail they want on Saturday.

"You know what also, it will be strange not seeing the mailman on Saturday. Our office girls know him on a first-name basis."
 
UPS charges a fee for Saturday delivery.

I pay my bills online most of my mail is just junk mail, somedays piles of it straight to recycling bin. I don't need Saturday delivery of junk mail. Many of our branches are closed Sat. already. If people can't cope print your label on line and drop it in the box in front of the post office.
 
^^ Pre funding, Thats one of the most absurd things i have ever heard, and they pass such a stupid law and get away with it.^^

the US Post Office turns a profit year after year, it's one of the only GSE's that does consistently. the raiding of the post offices profits to buy Treasury notes is part of the continued war against labor and government workers that don't work on the legislative side.

school teachers, police, fire, postal workers, etc. are all various forms of labor where the workers earn much higher wages then the average US labor worker and they also come with pension plans etc. they are trying to pit low paid labor workers against the higher paid labor workers and it's works very well with on many of the ignorant sheep who can't see through their very obvious tricks.
 
The Saturday delivery is safe...for now.

Congress to force Postal Service to keep Saturday delivery | US National Headlines | Comcast

? Congress foiled the financially beleaguered U.S. Postal Service's plan to end Saturday delivery of first-class mail when it passed legislation on Thursday requiring six-day delivery.The Postal Service, which lost $16 billion last year, said last month it wanted to switch to five-day mail service to save $2 billion annually.

Congress traditionally has included a provision in legislation to fund the federal government each year that has prevented the Postal Service from reducing delivery service. The Postal Service had asked Congress not to include the provision this time around.

Despite the request, the House of Representatives on Thursday gave final approval to legislation that maintains the provision, sending it to President Barack Obama to sign into law. The Senate approved the measure on Wednesday.

But some lawmakers who support the Postal Service's plan have said there may still be some room for it to change its delivery schedule. They point out that the language requiring six-day delivery is vague and does not prohibit altering what products it delivers on Saturdays.

The Postal Service has said that while it would not pick up or deliver first-class mail, magazines and direct mail, it would continue to deliver packages and pharmaceutical drugs on Saturdays.

Republican Senator Tom Coburn of Oklahoma and Representative Darrell Issa of California on Thursday told the USPS Board of Governors to move forward with implementing the five-day delivery plan for mail.
"The Board of Governors has a fiduciary responsibility to utilize its legal authority to implement modified 6-day mail delivery as recently proposed," the lawmakers said in their letter to the USPS board.

The Postal Service, they said, is in such dire financial need that it must implement all measures to resolve its problems.

LEGALITY IN QUESTION

Several polls have shown a majority of the public supports ending six-day delivery of first-class mail.

The plan for a new delivery schedule would respond to customers' changing needs and help keep the Postal Service from becoming a burden to taxpayers, Postal Service spokesman David Partenheimer said.
A number of lawmakers and trade groups said the plan to cut Saturday mail service is illegal because the Postal Service requires Congress' approval before it makes such a decision.

Democratic Representative Gerald Connolly of Virginia said in a letter to the Government Accountability Office on Thursday that the Postal Service is still bound by the six-day requirement.

"Unfortunately, the Postmaster General continues to stonewall members of Congress, withholding his legal justifications for eliminating Saturday delivery from postal customers and the American public," Connolly said.

Fredric Rolando, president of the National Association of Letter Carriers, said in a statement on Thursday that cutting Saturday mail delivery would harm rural communities and small businesses and "only serve to accelerate a financial ?death spiral' for the Postal Service."

DROWNING IN LOSSES

The Postal Service, an independent agency not funded by taxpayers, has said it could need a taxpayer bailout of more than $47 billion by 2017 if Congress does not give it flexibility to change its business model and provide it relief from huge benefit payments.

It had planned to drop Saturday first-class mail delivery in August.

Ending six-day, first-class mail delivery is part of the Postal Service's larger plan to cut costs and raise revenues.

The mail carrier loses $25 million each day. The vast majority of the losses come from heavy mandatory payments into its future retirees' health fund take a toll, but it has also suffered as more Americans communicate by email and the Internet.
The Postal Service could run out of money by October if Congress does not provide legislative relief, some experts have estimated.

"Once the delivery schedule language ... becomes law, we will discuss it with our Board of Governors to determine our next steps," Partenheimer said.
 
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the US Post Office turns a profit year after year, it's one of the only GSE's that does consistently. the raiding of the post offices profits to buy Treasury notes
.

can you show me the data supporting your claim?
 
can you show me the data supporting your claim?


Postal Facts

the budget problems with the US post office stem from H.R. 6407; The Postal Accountability and Enhancement Act passed in 2006. GOP proposed legislation that requires that the Postal Service rapidly pre-fund its retirement health benefits. The extent of prefunding required by this measure vastly exceeds the level of prefunding for retiree benefits in any private company in the entire country. This ensures that Postal Service spending must annually exceed revenue intake, thus causing a perpetual and rapidly increasing Postal Service deficit.
 
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Thanks to the budget cut, my post offices doors close at noon, so If I have to pick up mail from the post office, I have to wait till the weekend to pick it up. Sucks when something arrives on Monday. But if I call at 4 there's always some one to answer the phone, so why can't the doors stay open?
 
Postal Facts

the budget problems with the US post office stem from H.R. 6407; The Postal Accountability and Enhancement Act passed in 2006. GOP proposed legislation that requires that the Postal Service rapidly pre-fund its retirement health benefits. The extent of prefunding required by this measure vastly exceeds the level of prefunding for retiree benefits in any private company in the entire country. This ensures that Postal Service spending must annually exceed revenue intake, thus causing a perpetual and rapidly increasing Postal Service deficit.

couldn't find it on the link you've provided.
 
couldn't find it on the link you've provided.

the numbers are right there under the section titled "A Decade of Facts and Figures"

Annual Revenue
2012 2011 2010 2009 2008 2007 2006 2005
$65.2B $65.7B $67.1B $68B $74.9B $74.7B $72.7B $69.9B

2004 2003
$68.9B $68.5B
 
Americans across the country are coming to grips with the reality that the post office as they now know it may soon be a thing of the past. (May 16)

This started back in the 1990s.

It's not rocket science.

Anyone surprised needs to take their head out of the sand.
 
The post office just signed some kind of exclusive shipping deal with amazon.com that is supposed to be a windfall. Wonder what ridiculous provision will be put in place to offset that revenue increase. They want it privatized and want it to appear unprofitable prior to the privatization so people stand to make millions. Like the postmaster general who advocates this. They have tried for years to break the postal union and have not even come close to remotely succeeding anywhere. Instead of being a model as it should be - the post office is a victim of greed - just like everything else.
 
The post office just signed some kind of exclusive shipping deal with amazon.com that is supposed to be a windfall. Wonder what ridiculous provision will be put in place to offset that revenue increase. They want it privatized and want it to appear unprofitable prior to the privatization so people stand to make millions. Like the postmaster general who advocates this. They have tried for years to break the postal union and have not even come close to remotely succeeding anywhere. Instead of being a model as it should be - the post office is a victim of greed - just like everything else.

they are trying their hardest to smash the rest of the public sector unions in the US. with the end result of lower wages for all. low and semi-skilled labor in the US is totally fucked. nobody fights for them anymore.
 
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