Skip to comments.The Post Office May Shut Down This Winter Unless Congress Authorizes A Bailout
Posted on 09/05/2011 6:03:41 AM PDT by SeekAndFind
Neither rain, nor snow, nor sleet, nor hail shall keep the postmen from their appointed rounds. But unless Congress steps in, bankruptcy will.
The New York Times reports that unless the House and Senate take drastic action in the next few months, one of the nation's oldest institutions which employs 574,000 Americans may be forced to shut down.
A combination of labor costs and a declining number of packages and letters has the United States Postal Service running short on cash. The independent government agency will be unable to make a $5.5 billion payment to its employee healthcare plan by the Sept. 30 due date.
Our situation is extremely serious, the postmaster general, Patrick R. Donahoe, told the Times. If Congress doesnt act, we will default.
To avoid insolvency, Donahoe says needs Congress to approve the elimination of Saturday delivery and the undoing of the agency's contract with its union to allow it to layoff up to 120,000 works. The Post Office is also planning to close 3,700 locations.
(Excerpt) Read more at businessinsider.com ...
Less “bailout” and more “funding the USPS like they’re supposed to,” innit?
I mean, it’s the mail. You might as well say that DOT fixing up I-95 is a bailout of socialist roadways.
Close it down!
The DOT is not an independent service that is supposed to break even. The USPS is not supposed to be funded.
Let the current USPS crash: create another USPS without a union.
No sweat, the bailout will be authorized, with a few cosmetic conditions. (My prediction).
90% or more of what I receive in the mail is junk.
Isn’t having a monopoly on transmission of letters enough of an advantage? Think if the only legal way of sending a letter was through Fedex or UPS. The problem is inflexible union work rules and Congressionally mandated service levels.
D’oh. Brainfart. Haven’t had my legal addictive stimulants yet.
Anyone know if the USPS has ever been audited?
if there were no post office, there might be homes without mailboxes. If there were homes without mailboxes, the federal government wouldn’t be able to send everyone important documents from the IRS and the selective service system; ergo, there will always be a post office. It is not a federal service but a mechanism of federal control.
The USPS served a great purpose for many, many years and, to a certain extent, still does today. But times have changed and the old USPS is a dinosaur in today’s world. It needs to be pruned dramatically, restructured and refocused. I’m not sure that ANY government run agency can run efficiently but without change, the USPS will cease to exist.
Oh, and the elephant in the room is the ENORMOUS pension plan scheme the USPS has in place. That, as much as changing technology, is killing them.
p.s. I never really understood why you could send a letter across town or across country for the same price.
Ending Saturday delivery would only cut about two percent of the agency’s budget and is vigorously opposed by many lawmakers from states with large rural populations. They would rather the agency recover the $60 billion it has overpaid into its employee pension plans and pursue less drastic restructuring””
Interesting that the Post Office Pension Plan is overfunded to the tune of $60 Billion. In today’s economic climate it is probably the only pension plan in the USA that is overfunded.
I don’t mind not getting 100% of my mail but if the government does this to healthcare (if it isn’t hopefully repealed) this country is in great doo-doo. I can’t think of one government endeavor that ended in success.
But — but — Obama wants us to go green!
Yeah, they would have to take over the internet or something!
The letter to Santa with return to sender says it all. They must know Santa doesn’t use unionized elves.
They’re overfunded, so they’re going bankrupt. I wonder how that feels.
Our PO shuts down every winter. 50+ nondelivery days last winter from Jan to spring. If the route is not snowed shut, it is too cold or too muddy or too something. Funny thing is that 80 year old ranchers driving 50 year old pick up trucks get over the same roads to pick up their mail from the PO. In its current form, the PO should be eliminated.
First question: How much money does the average postal worker (aka government union worker) pay towards it's health benefits?
Second question: How much money does the average postal worker (aka government union worker) pay towards it's retirement benefits?
What? you think they’ll send you a tax bill through hotmail? or send you your draft notice via twitter? no. The post office is the long arm of the federal government reaching out to every citizen in every town. They can’t eliminate it. some politicians may talk of it but they’re FOS and they know it.
“Help us, Obi-wan Obama, you’re our only hope!”
Saving the Post Office will be The One’s next big hat trick.
Instead, eliminate the letter mail monopoly and put the USPS up for sale. Maybe Bain Capital would buy it and lean it out, meanwhile, competition would be good.
-——Saving the Post Office will be The Ones next big hat trick.——
Even I can do that, here and now.
“The debt of the United States Postal Service to the treasury of the United States is hereby rolled over and will become payable in increments to be determined by a date no sooner than September 5, 2031.”
Sure, getting rid of the post office will coots jobs. But I'm sure these carriers can find work in the private sector. Maybe not for the wages and bennies they have enjoyed, but that's life.
that is the only option - no more bailouts!!!
I read someplace they will have a 3.5 billion shortfall and it costs them 3.5 billion to sort and deliver the mail. So if they just sell stamps and not deliver the mail they could break even.
Does anyone know how much they take in annually and where its spent. I’m guessing pensions.
Also interesting is that is the "default" that the Post Master General is speaking of.
So, if the Post Office doesn't get a bail out, they won't be able to meet their obligated overpayment into the health and pension funds which are already over funded by law.
So where exactly is the problem? Requiring the USPS to do this is the laws on the books from the Federal Government. So, why not, instead of bailing them out to continue to overfund the health and pension funds, let the USPS skip this payment?
DING! DING! DING! "What do we have for her, Johnny?"
Without digging up a paystub (we're moving around and it's all in boxes), I pay over $500 per check? For everything. Somewhere in that neighborhood. and don't call me a union worker.
1. Forget about handling packages and dump bulk (junk) mail.
2. Ska-rew your fully funded benefits and start "paying your fair share" like normal working class Americans.
Maybe to you. To the business desperately trying to stay afloat, or maybe even increase their business, that advertisement could mean the difference between making their next payroll and bankruptcy.
We do still support the idea of free markets and small businesses here on FreeRepublic, don't we?
If they determine they cannot depend on the post office, then their only alternative will be the internet, via email.
In that event, all people will be mandated to have the Internet and email. It will become “a right”.
And when that happens, someone is going to have to pay for that.
And when someone has to pay for that, all those strings that go along with it come into play.
And THEN they will have complete control over the Internet. It is how various factions have been angling for a while.
Actually, yes, I DO think eventually the federal government will send tax notices via the internet. These notices will say something like, “Your online citizen account has been debited...” or “Your online citizen account funds were insufficient...” In the latter case, the citizen will have maybe 30 days to work off the insufficiency, or be shut down: internet, electric, and probably water service too.
As you say, “The post office is the long arm of the federal government reaching out to every citizen in every town. They cant eliminate it.” They must beef it up and modernize it so that the long arm is longer and stronger. They really don’t need the merry mailman for that anymore. We can be intimidated, pumped, vampirized and prosecuted electronically, remotely.
[A]t another point of todays town hall meeting, Obama was pushing back against the idea that the creation of a new government-run plan would drive private insurers out of business, and he said that UPS and FedEx were doing fine, but its the post office thats always having problems. Oops!
But hey, cheer up. You’ll get a FREE computer!
Where do I sign up for these "fully funded benefits" of which you speak? I'm paying for mine.
And someday...the free computer will be implanted behind your pituitary!
I know I do. Do you, Big Giant Presumptuous Misrepresenting What I Said Rude Head?
$500 a check is alot. I saw where the retirement fund is over-financed by $60 billion. Anyway, are you saying you aren't in a union? I thought postal workers were unionized?
Virtually ANY government job.
I refuse to join. I’m everything a union worker isn’t supposed to be. I go out of my way to serve my peeps to the best of my ability. I break the stupid rules if I have to to serve a mailbox. I dismount for folks that I’m not “authorized” to dismount my vehicle for. My customers are MY responsibility, and I don’t go all “union” on them. They are the ones paying for stamps, I service them. Not the union.
Of course! In fact, liberal fascists can make a much better case for taking over the internet, than they ever could for taking over health care. After all, even the Founding Fathers made constitutional provision for it: they called it the post office. Private parties could have carried the communications, yet the federal government was given the power.
So...why does it cost me so much money if it’s free?
I don’t think the USPS should be abolished but it definitely needs to be “re-invented”. How to go about it, I have no clue because politicians are in charge of that. But it’s a shining example of unions-gone-wild running a company into the ground. A good start; stop Saturday delivery, close smaller post offices, supplement PO’s with 3rd parties - Office Depot, Mailboxes, etc., charge more for 1st class and junk mail, and start dismantling years of asinine union contracts.
What do you make an hour?