The Post Office May Shut Down This Winter Unless Congress Authorizes A Bailout

Business Insider ^ | 09/04/2011 | Zeke Miller

[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 doesn’t 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.

[Lady Lucky]

They’re overfunded, so they’re going bankrupt. I wonder how that feels.

[MichaelP]

sell it to Fedex!

Mike

[Lion Den Dan]

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.

[Go Gordon]

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.

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?

[RC one]

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.

[bigbob]

“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.

[bert]

-——Saving the Post Office will be The One’s 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.”

[fatnotlazy]

I'm sure if the USPS goes belly-up, there will be quite a few private entities to take its place. They will probably do a much better job at delivering mail. In fact, the ones in existence now (Fed Ex, UPS, etc.) already do. And with the internet, how much worthwhile mail do we actually have?

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.

[elpadre]

let them re-organize under a bankruptcy judge - without the union!!

that is the only option - no more bailouts!!!

[oldasrocks]

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.

[Big Giant Head]

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.

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?

[rlmorel]

"...Yeah, they would have to take over the internet or something..."

DING! DING! DING! "What do we have for her, Johnny?"

[Big Giant Head]

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?

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.

[ROCKLOBSTER]

To: The Office of Postal Union Thugs:

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.

[Big Giant Head]

90% or more of what I receive in the mail is junk.

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?

[rlmorel]

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.

[Lady Lucky]

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 can’t 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.

It’s inevitable.

[maggief]

http://michellemalkin.com/2009/08/11/gaffetastic-dohbamas-post-office-blunder/

[A]t another point of today’s 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 “it’s the post office that’s always having problems.” Oops!

[Lady Lucky]

But hey, cheer up. You’ll get a FREE computer!

[Big Giant Head]

Ska-rew your fully funded benefits and start "paying your fair share" like normal working class Americans.

Where do I sign up for these "fully funded benefits" of which you speak? I'm paying for mine.