Thread: BROKE U.S. Postal Service May Have to Shut Down This Winter

NY Times: Postal Service May Have to Shut Down This Winter

Monday, 05 Sep 2011 09:28 AM
By Newsmax Wires

The U.S. Postal Service may have to shut down this winter unless Congress steps in with emergency action to shore up its finances, according to The New York Times.

“Our situation is extremely serious,â€

Stressed U.S. Postal Service Suspends $800 Million In Pension Payments

Wednesday, 22 Jun 2011 12:58 PM
By Jim Meyers

Facing a huge budget deficit and possible insolvency, the U.S. Postal Service is suspending its contributions to an employee retirement fund — for the first time in its history — to save $800 million this year.

The Postal Service will stop paying employer contributions to the Federal Employees Retirement System (FERS), which covers about 85 percent of career postal workers, according to a statement from the agency. With 596,000 workers, the Postal Service is the nation’s second-largest civilian employer after Wal-Mart.

The $115 million that the agency pays to the retirement system every other week will stop on Friday.

The Postal Service reported a loss of $8.5 billion in fiscal year 2010, and is expected to lose $8.3 billion this year, according to The Washington Post.

The USPS is facing insolvency without approval to delay a $5.5 billion payment for worker health benefits, due in September. The Postal Service maintains that it has been overcharged $75 billion for its pension obligations and if that money is returned, the USPS could use the funds to pay for the health benefits.

The agency has pushed Congress to eliminate the requirement that it pre-pay health benefits, and it wants to end Saturday mail delivery.

The agency will continue to transmit employee contributions to the pension fund. The FERS account has a $6.9 billion surplus, according to Bloomberg.

Postal Service spokesman David Partenheimer says the suspension of employer payments for the retirement fund payments will have no impact on employees or current retirees.

The $800 million saved is "money we need to prevent us from running out of cash to pay employees and suppliers to keep the mail moving," Partenheimer told Newsmax.

Commenting on the USPS decision to suspend the payments, Gene Del Polito, head of the Association for Postal Commerce, which represents postal customers, told Bloomberg: “The Congress and the administration have left the Postal Service with no other choice. The money’s not there, and they can’t get any more from customers that already are fleeing the mail.â€

Postal Service May Slow Delivery to Save $1.5 Billion

Wednesday, 24 Aug 2011 05:02 PM
By Henry J. Reske

Slowing down the delivery for first-class and Priority Mail could save the U.S. Postal Service $1.5 billion a year, according to a new study. Postal executives are considering the idea and may announce plans after Labor Day, The Washington Post reported.

First-class and Priority Mail generally are promised for delivery in two to three days. Relaxing the schedule by a day would cut an estimated $336 million in premium pay for employees that currently work overnight and Sunday to meet the deliveries, according to the Christensen Associates study, which the Postal Service’s inspector general commissioned, the Post reported.

The study also said the move would save an addition $1.1 billion by delivering some Priority Mail by ground instead of air, consolidating mail-processing facilities and employing fewer workers, the Post reported.

First-class mail volume will drop by about 28 billion pieces annually by 2020, but volume for standard mail is expected to remain flat at 50 billion pieces annually, the study says.

“Some of the Postal Service’s largest business mailers have stated that they value consistency over speed and they would tolerate slightly slower service to save costs,â€

Postal Service, Losing Billions, Pays Millions to Idle Workers

Tuesday, 30 Aug 2011 12:31 PM
By Henry J. Reske

Despite facing $9 billion in losses this year, the U.S. Postal Service is paying out millions to thousands of workers doing nothing. However, the numbers are down from two years ago, The Washington Post reported.

The payments are made under a labor agreement governing “standby time,â€

[quote]The payments are made under a labor agreement governing “standby time,â€

The USPS must got to a 5-day delivery and cut their hours immediately if they are to survive.

The postal regular employees overtime must be cut, and the temps used as little as possible.

This will put around 150,000 well-paid Americans out of work.

Originally Posted by HAPPY2BME

The USPS must got to a 5-day delivery and cut their hours immediately if they are to survive.

The postal regular employees overtime must be cut, and the temps used as little as possible.

This will put around 150,000 well-paid Americans out of work.

yes it will. we are in a vicous cycle; each event will cause many micro events into this vortex

I just dont think people understand the gravity of the situation

Originally Posted by AirborneSapper7

I just dont think people understand the gravity of the situation

===================================

I can sum it up in two words Americans will very soon become very well acquainted with: BEANS and RICE.

Originally Posted by HAPPY2BME

Originally Posted by AirborneSapper7

I just dont think people understand the gravity of the situation

===================================

I can sum it up in two words Americans will very soon become very well acquainted with: BEANS and RICE.

if you HAVE NOT been preparing ... you'll be Praying for Beans and Rice and after a while that will seam like a Gourmet meal

If you have been preping... you may make it; but that depends how many of your relatives show up at your door that have not been prepairing

Originally Posted by HAPPY2BME

The USPS must got to a 5-day delivery and cut their hours immediately if they are to survive.

The postal regular employees overtime must be cut, and the temps used as little as possible.

This will put around 150,000 well-paid Americans out of work.

They need to cut the fat, instead of the leanness. They probably pay their upper echelons 3 figure salaries, like many other Governments have. Cut the fat!