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Two Different Explanations To Why The USPS Is Not Really Failing

Two blog posts from the NH Labor News on ending Saturday Delivery and the myth that the post office is failing.

Really Mr. President, Really??? Are You Going To Sit There While They Destroy The USPS?

Original link: NH Labor News http://bit.ly/150ua8Q

We knew Mitt Romney was going to sell the Postal Service off, we didn’t expect President Obama to sit by idly as Congress sends the Postal Service into a death spiral. It seems this issue should be more important to the President as he often states the importance of our nation's infrastructure. His administration has worked to create middle class and veteran jobs but he remains stunningly silent as anti union and anti government politicians let the Postal Service eliminate Saturday delivery and accelerate its demise.

It is widely known that the Postal Service financial problems are tied to a 2006 Congressional mandate that requires the USPS to fund retiree health care costs 75 years into the future. Though the USPS pension funds are seriously over funded congress is still requiring it to put away $5.5 billion a year for workers not yet born. No other business or agency in America is required to do this.

The Postal Service ties this nation together like no other institution. Rural America depends on six days a week mail delivery as it our country’s only universal communication network. Fed Ex and UPS provide scant coverage to rural America as they rely on the Postal Service to deliver to these unprofitable spots six days a week.......Continue Reading

Ending Six Day Delivery is Wrong Answer For The USPS

Original link: NH Labor News http://bit.ly/WT9kBz

The USPS is a very special government entity. They collect no money from taxes and are completely self-funded.  This means the entire postal service is paid for by selling stamps. They are like a private company with one big catch, everything they do is mandated by Congress.

You may have heard different, or you may have heard the Post Office is going bankrupt. There is a little truth to both of those statements.  The employees of the USPS are federal employees and are covered under the Federal Employee’s Retirement System (FERs).  In fact the USPS is the single largest section of the federal workforce with over 800,000 employees currently.   In 2006, President Bush signed into a law a bill that forced the USPS to PRE-PAY their retirement contributions.  Basically the USPS has to PRE-PAY the retirement system for the next 75 years in the next 10 years.  This equates to about $5  Billion dollars a years in over payments.....Continue Reading

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Seamus Carty February 13, 2013 at 04:08 PM
Eliminating Saturday delivery does not hasten the USPS demise, it helps the post office stay viable. It is interesting that the blogger chides Romney for his idea to take the USPS private and at the same time states that it is interference from Congress that is the problem. The gov should spin the USPS out as a utility...
Robert B Butts February 13, 2013 at 08:05 PM
So is eliminating Saturday a foot in the door to destroy the USPS entirely? The other arguments for keeping Sat delivery are not compelling to me.
steve forte February 14, 2013 at 12:10 PM
I dont see it that way. I have no desire to see the USPS destroyed. I also dont see an end to Saturday delivery as devastating. Beyond Saturay delivery there are many other ways to cut costs. Lets face it , when volume is down 40% income will also be down. Obviously the correct path is to cut costs accordingly.
Celia Brown February 18, 2013 at 08:08 PM
Another reason to shake your head every time the USPS does something.... 400 Postal Service managers to attend March conference in California. Hotel rooms near $300 a night. "Taste of San Francisco" included— Scott MacFarlane (@MacFarlaneNews) February 18, 2013 Poised to cancel Saturday mail.. US Postal Service to spend $2.2 million to send managers to San Francisco conference. Golf, dinners listed— Scott MacFarlane (@MacFarlaneNews) February 18, 2013 Postal Service will spend $2 million to send 400 employees to California conference in March 2013. Golf outing on agenda http://t.co/6dkyct9L Meanwhile.......... U.S. Postal Service will default on mandatory $5.6 billion retiree health benefit payment USPS, please go out of business
Really?? February 18, 2013 at 08:35 PM
You read a Tweet and now you want to kill one of America's greatest institutions? Who is Scott Macfarlane? Celia, please educate yourself.

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