USPS proposes cutting 120,000 jobs, pulling out of health-care plan

washingtonpost.com ^ | August 11, 2011 | Joe Davidson

[Berlin_Freeper]

In an attempt to stem its financial hemorrhaging, the U.S. Postal Service is seeking to reduce its workforce by 20 percent, including through layoffs now prohibited by union contracts. USPS also wants to withdraw its employees from the health and retirement plans that cover federal staffers and create its own benefit programs for postal employees.

This major restructuring of the Postal Service’s relationship with its workforce would need congressional approval and would face fierce opposition from postal unions. But if approved, eliminating contract provisions that prevent layoffs and quitting the federal employee health and retirement programs could have ramifications for workers across the government and throughout the national’s labor movement.

[kabar]

Despite continued cost-cutting efforts that include a reduction of 7,500 administrative positions, the U.S. Postal Service lost $3.1 billion in the third quarter of the fiscal year as mail volume continued to plunge. Postal officials said Friday that they will be forced to default on payments to the federal government by fall if Congress does not act.

The loss for the quarter that ended June 30 narrowed from $3.5 billion during the same period in fiscal 2010. But the Postal Service said it will have a cash shortfall and will have reached its legal borrowing limit by the end of the fiscal year, when it must make a $5.5 billion payment to a trust fund for health benefits for retirees.

The Postal Service expects to lose as much as $9 billion this year.

Donahoe has been lobbying Congress to pass legislation that would eliminate the health fund prepayment and give the agency access to a pension fund into which it has overpaid. He is also pushing to eliminate Saturday service, a proposal that could save $3 billion a year but that has proven unpopular with members of Congress.

[freespirited]

Can’t help but think that the underlying problem is unions.

[kabar]

The agency announced in July that it has targeted about 3,600 unprofitable post offices for closure in the next year. Another 700 announced last fall also are on the chopping block.

Donahoe has been lobbying Congress to pass legislation that would eliminate the health fund prepayment and give the agency access to a pension fund into which it has overpaid. He is also pushing to eliminate Saturday service, a proposal that could save $3 billion a year but that has proven unpopular with members of Congress.

[newzjunkey]

Postal service pulling out of healthcare? I thought Obamacare was going to cut costs of healthcare!

[ngat]

“USPS also wants to withdraw its employees from the health and retirement plans that cover federal staffers”

So, I guess the postman ain’t as good as the officeman?

[rxsid]

and they probably retired around age 50 or so...I would imagine.

[vette6387]

And while their at it, spin off Amtrak. It’s the same sorry story.

[ntnychik]

Have you checked with your local Social Security office to see what your benefits as a widow might be? My brother in law was told to apply at age 62 for my deceased sister’s benefit, which is a higher amount than his.

[Judith Anne]

Yes. We (ss and I) compared it all possible ways.

[Judith Anne]

It’s not the amount that ticks me off, it’s that all the years my husband put in to SS, no one except the freaking government gets any benefit from those dollars.

Sometimes, I have some unpleasant thoughts about the government.

[Whenifhow]

US Postal Service Facing Financial Problems Largely Created by Congress

http://www.msnbc.msn.com/id/21134540/vp/30012522#44115351

host says no taxpayer money is used for the operations of the USPS

[GailA]

considering they can’t even get a package delivered on time, it’s no wonder they are not keeping up with FedX.

[RetiredArmy]

We went up to the main post office in Anniston, Alabama a week or so ago to mail a small package. There was ONE counter open! ONE!!! There was a line of about 12-15 people waiting. It wook me 30 minutes to get to the desk. I was 5th in line. During this time, there were at least FOUR and FIVE postal employees who kept coming out and asking if anyone had bla bla bla. But NONE of them opened a drawer and assisted customers. At one point there were three employees just standing in the back area there, arms folded, yaking back and forth and doing NOTHING!!! All the while this one guy moved slow, slower and slowest in servicing the line. He would yak with the customers and take even more time. By the time I got there, I said I want to mail this. He started to ask the 30 questions if I needed this, this or that. I said, All I want to do is mail this package and get the heck out of here. Next time, I don't care what the price, I am going to UPS or FedExp. I have had it with the stupid post office.