USPS BANKRUPT MASSIVE LAYOFFS no saturday delivery

U.S. Postal Service Near Default - Chapter 11 Bankruptcy
The U.S. Postal Service does not have the money to meet an obligation to a retiree health care trust fund coming due at the end of the month, but if there's a default, officials promise no interruption in the mail, the payroll, or payments to suppliers.
Commenting in response to a New York Times article Monday suggesting the Postal Service may have to shut down within months, spokeswoman Yvonne Yoerger told CNN there's "nothing actually new in the Postal Service's position.
"We are required to make this $5.5 billion dollar payment into the future retiree health benefits fund, and probably won't be able to make it when it comes due September 30th."
The fund was mandated by a 2006 postal reform act that postal officials today believe does not match the reality of declining revenues and a smaller workforce. Tuesday, congressional lawmakers will address the matter in a hearing on postal operations.
Yoerger said at that hearing, Postmaster General Patrick Donahoe will insist that the fund be re-scaled from the days when there were 900,000 people on the payroll. The mandated funding level has not changed in the years since then, although the Postal Service has trimmed 250,000 jobs.
She said "the fact is, no other government agency, and few corporations in the private sector are required to fund retiree health benefits 75 years out."
The newspaper quoted U.S. Sen. Thomas Carper, D-Delaware, as saying the financial problems are so dire the Postal Service may close later this year
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[michalchik]

@vison2create You assumed correctly. I was short on space. You are also right hat USPS workers are largely not affected by trade policy.

The PO has been bankrupted by a congressional mandate to pay their pension and healthcare 70 years ahead of schedule and to subsidize the cost of bulk mail. (though that may have changed). How do you think UPS or FedEx would do if they had to stockpile 70 years of full health and retirement benefits in 10 years?

[vison2create]

@michalchik ... Ok I have to assume you mean the suicidal enviro policies and inhuman working conditions of Asia (and not the US) makes it hard for the US compete. Surely, you don't mean conditions in the US. If so, you have a severely warped grasp of reality. Trade policies and IP laws are an issue largely ignored by our legislators. Those issues effect everyone producing IP or products in the US.... regardless if they belong to a union or not. USPS workers are exempt however.

[michalchik]

@vison2create And your evidence for this is what? Unions have been characterized as parasites and criminal organizations since the first day they tried to organize for basic things like safe working conditions and an end to child labor. Read about what was said about the triangle waist coat union. That propaganda has been going full steam for the last century. What makes the US unable to compete is bad trade policies, suicidal environmental policies and inhuman working conditions.

[vison2create]

@michalchik ... When unions first came about in the US, they were beneficial in protecting humanitarian rights of workers. Since then, they have become corrupt if not criminal orgs that simply protect the status quo of entitlements for an un-competitive, un-motivated, un-educated, and over compensated labor pool. They make the US unable to compete in a global economy.  The thought of unions for Federal employees (i.e. USPS) is even *more* outrageous.

[michalchik]

@vison2create I agree with raising the junk mail rates, but what do you have against unions?

[vison2create]

@michalchik ..... My mail box is stuffed with 20 lbs of JUNK MAIL per week. Since I went to email, IM, and online statements, 99% of my mail is junk.  Junk mail made from dead trees, delivered by an over compensated union rat in a gas burning truck. The next week, another gas burning truck (garbage truck) picks up this junk and hauls it to a dump. It's a huge waste and an environmental disaster. Raise junk mail rates by 500% and layoff half the union rats.

[chuc555]

Just raise the price to pay the bills. The price of postage should pay for the cost.

Make the people who use it pay for it.

[michalchik]

It is the stupid congressional mandate to fund 75 years of retirement in 10 that is wrecking the budget. By any normal accounting standards the post office is still turning a profit and the amount of stuff it ships is enormous. Just look at your mailbox everyday. Mine is stuffed. I also ship a lot of packages and receive a lot. Almost every company I do business with uses the USPS it is just cheaper. Personal letters have gone down but contracts and official documents go first class.