USPS Gets Denied Postal Rate Hike They Tried to Blame on the Recession
pic credit: MTTS
Nice try, USPS, but we all know the recession has nothing to do with it. People still have to send letters and if anything your business should be booming given the additional volume of PAST DUE notices and foreclosure warnings. Duh.
The Postal Service (as in mail, not music) is facing a massive pension hole that can't be plugged by bailouts and rate hikes. Thankfully Congress saw right through their excuses and cockblocked a 2 cent rate hike.
"(A) [Postal Regulatory] [C]ommission analysis confirms that the Postal Service's cash flow problem is not a result of the recession and would have occurred whether or not the recession took place," the regulator said in a statement.
"It is the result of other, unrelated structural problems and the proposed ... rate adjustments would neither solve nor delay those problems."
How about instead of trying a 5.6% rate hike on stamps we hardly use anyway (hellllo online bill pay!) and begging for bailouts the USPS try cutting the fat? Like this, for example:
A USPS inspector general report released last week in response to requests from Sen. Susan Collins, R-Maine, found the Postal Service pays the full health insurance premiums for 835 Postal Career Executive Service employees, OIG directors and Senior Executive Service members, a perk not available to other federal workers. Fifteen members of the Postal Regulatory Commission receive this benefit, according to PRC spokesman Norman Scherstrom.
"It is unbelievable to me that the Postal Service -- awash in red ink and asking for huge postal rate hikes, service reductions and relief from its financial obligations -- is paying the full health care premiums for its top executives," said Collins, the ranking member of the Homeland Security and Governmental Affairs Committee, which oversees USPS.
Recommended supplemental reading: What if the Postal Service runs out of money? via WaPo's Federal Eye.