The Coming Postal Bailout

Discussion in 'Economy' started by Trajan, May 15, 2011.

  1. Trajan
    Offline

    Trajan conscientia mille testes

    Joined:
    Jun 17, 2010
    Messages:
    29,048
    Thanks Received:
    4,751
    Trophy Points:
    48
    Location:
    The Bay Area Soviet
    Ratings:
    +4,756
    yes, another Quango ( a brit term) for quasi-autonomous non-governmental organization needs a cash infusion...why? lets see...



    The Coming Postal Bailout

    snip-

    The odds of a multibillion-dollar rescue package went way up this week when Postal Service management reported a $2.2 billion loss for the first quarter, more than 25% higher than last year despite the economic recovery. It now appears that the $15 billion line of credit the feds have offered USPS will be used up by the end of this year, with low odds on ever being paid back.


    If that isn't ugly enough, the Postal Service expects $42 billion in additional losses over the next four years. Mail volume and revenues have suffered what Postmaster General Patrick Donahoe concedes are "unprecedented declines" since 2006, with projections of another drop of 20 billion letters mailed by the end of the decade, down from 171 million this year, thanks to competition from electronic mail.

    If this were a private business, the obvious response to these losses would be urgent cost-cutting to avoid insolvency. Instead, Postal Service management recently concluded negotiations offering the 205,000-member American Postal Workers Union a new four-and-a-half-year contract that will provide a 3.5% pay raise over three years, dole out automatic cost of living wage hikes after 2012, and expand no-layoff protections.

    Postal officials say this is the best deal they could get and that, had they not agreed to it, an arbitrator would have been even more generous to the union. But given that 80% of postal costs are for wages and benefits, this contract is unhinged from all fiscal reality.

    snip-
    Even worse is a bill co-sponsored by Senators Tom Carper of Delaware and Susan Collins of Maine, the Chairman and ranking Member on the postal oversight committee. They want to toss a $50 billion to $75 billion life raft to USPS by having the feds underwrite pension obligations for currently retired postal workers. We hope the tea party folks are paying attention because this bailout would cost about three times the first-year savings from the just-completed 2011 federal budget deal.

    and so it goes, more at-
    Review & Outlook: The Coming Postal Bailout - WSJ.com
     
  2. Mr. H.
    Offline

    Mr. H. Diamond Member

    Joined:
    Aug 19, 2009
    Messages:
    44,117
    Thanks Received:
    9,265
    Trophy Points:
    2,030
    Location:
    A warm place with no memory.
    Ratings:
    +15,395
    Why don't they just nix Saturday service and get it over with.
    They're so desperate to save money, they contracted with Seimens for real-time monitoring of facility energy usage. Yet, I walk into my local P.O. and there's the sun beating in with the A/C running full bore.
     
  3. Trajan
    Offline

    Trajan conscientia mille testes

    Joined:
    Jun 17, 2010
    Messages:
    29,048
    Thanks Received:
    4,751
    Trophy Points:
    48
    Location:
    The Bay Area Soviet
    Ratings:
    +4,756
    hey ask them, I agree. I can live without it, but you know, they have employees they need to pay.
     
  4. rightwinger
    Online

    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

    Joined:
    Aug 4, 2009
    Messages:
    120,444
    Thanks Received:
    19,866
    Trophy Points:
    2,190
    Location:
    NJ & MD
    Ratings:
    +45,471
    Post Office needs to refocus it's mission. Cut down on delivery days and eliminate deliveries in rural areas. Politicians in Red States will have to agree to less service
     
  5. Sallow
    Offline

    Sallow The Big Bad Wolf. Supporting Member

    Joined:
    Oct 4, 2010
    Messages:
    56,535
    Thanks Received:
    6,132
    Trophy Points:
    1,840
    Location:
    New York City
    Ratings:
    +7,394
    The postal service does a very good job for a fee that is way to low. Any price increases are met with extremely stiff opposition. So it's little wonder they are losing money.

    The alternative is to change the Constitution to eliminate the Post office and completely privatize it. But of course..without a government run postal service..costs would go through the roof on shipping.
     
  6. Trajan
    Offline

    Trajan conscientia mille testes

    Joined:
    Jun 17, 2010
    Messages:
    29,048
    Thanks Received:
    4,751
    Trophy Points:
    48
    Location:
    The Bay Area Soviet
    Ratings:
    +4,756
     
  7. Sallow
    Offline

    Sallow The Big Bad Wolf. Supporting Member

    Joined:
    Oct 4, 2010
    Messages:
    56,535
    Thanks Received:
    6,132
    Trophy Points:
    1,840
    Location:
    New York City
    Ratings:
    +7,394
     
  8. Trajan
    Offline

    Trajan conscientia mille testes

    Joined:
    Jun 17, 2010
    Messages:
    29,048
    Thanks Received:
    4,751
    Trophy Points:
    48
    Location:
    The Bay Area Soviet
    Ratings:
    +4,756
    uhm what the heck is that? where does that address what I asked for base don your responses??


    do you want to address the issue or make more excuses.

    and maybe something a little more objective? did you read the OP...answer- no. thx anyway.
     
  9. rightwinger
    Online

    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

    Joined:
    Aug 4, 2009
    Messages:
    120,444
    Thanks Received:
    19,866
    Trophy Points:
    2,190
    Location:
    NJ & MD
    Ratings:
    +45,471
    The post office will deliver a letter from the end of my driveway to my brothers house in California in less than a week for 44 cents.

    I would not deliver a letter to the other side of town for that
     
    • Thank You! Thank You! x 1
  10. random3434
    Offline

    random3434 Senior Member

    Joined:
    Jun 29, 2008
    Messages:
    25,903
    Thanks Received:
    7,188
    Trophy Points:
    48
    Ratings:
    +7,194
    My daughter and I still write hand written thank you notes, address them, put a stamp on them and mail them.


    Somehow email seems so impersonal when thanking someone for something, or sending a birthday card, etc.


    I love getting mail, and I love the fact we can mail letters to anywhere in the world.

    I'd hate to see the Post Office go away. :(


    But cutting Saturday service could be one way to save some money, eh?


    For a start.
     

Share This Page