TLP: And if it Means a Bigger Christmas Tip for the Paperboy, That's a Win-Win
You know, if Congress says you're in a crisis, it might be time for a little self-evaluation. Unless it's already too late.
Maybe we'll find out this afternoon when the U.S. Senate Committee on Homeland Security and Governmental Affairs holds a hearing on U.S. Postal Service in Crisis: Proposals to Prevent a Postal Shutdown.
The NYT delivers the details:
The United States Postal Service has long lived on the financial edge, but it has never been as close to the precipice as it is today: the agency is so low on cash that it will not be able to make a $5.5 billion payment due this month and may have to shut down entirely this winter unless Congress takes emergency action to stabilize its finances.You read that right: 80 percent of USPS expenses are for labor. The mailman who's happy to find any excuse not to deliver. The executives who let retiree costs explode. Whoever put a fake Statue of Liberty on a stamp. That labor sucks up 80 percent of Postal revenue.
“Our situation is extremely serious,” the postmaster general, Patrick R. Donahoe, said in an interview. “If Congress doesn’t act, we will default.”
In recent weeks, Mr. Donahoe has been pushing a series of painful cost-cutting measures to erase the agency’s deficit, which will reach $9.2 billion this fiscal year. They include eliminating Saturday mail delivery, closing up to 3,700 postal locations and laying off 120,000 workers — nearly one-fifth of the agency’s work force — despite a no-layoffs clause in the unions’ contracts.
The post office’s problems stem from one hard reality: it is being squeezed on both revenue and costs.
As any computer user knows, the Internet revolution has led to people and businesses sending far less conventional mail.
At the same time, decades of contractual promises made to unionized workers, including no-layoff clauses, are increasing the post office’s costs. Labor represents 80 percent of the agency’s expenses, compared with 53 percent at United Parcel Service and 32 percent at FedEx, its two biggest private competitors. Postal workers also receive more generous health benefits than most other federal employees.
And if they're shut down and gone by Christmas? They can't say no one warned them. Not that there's anything wrong with that.