This post comes from Lynn Mucken at MSN Money.
Back in May, I declared that the U.S. Post Service, a treasured American delivery vehicle in one form or another since 1775, had outlived its usefulness, a victim of email and its own bloated financial structure. I also wrote:
It was no surprise, then, to see that Congress, apparently not wearied by doing almost nothing to address the national debt problem, has offered two plans to solve the Postal Service's deficit, which is $20 billion over the past four years, including $8.5 billion in the past fiscal year. The bipartisan plan kicks the can down the road for future elected officials to worry about. The conservative plan would solve the problem by, among other things, repainting the trucks.
What was surprising was the proposal put forth by the Postal Service brass themselves: cut jobs, close post offices and withdraw from the federal health care and pension programs that they say do not meet "the private-sector comparability standard."
This is no small stuff.
According to The Washington Post, citing a notice sent to employees, the Postal Service wants to cut its current work force of 563,000 by 220,000 over the next four years. About 100,000 cuts would come from attrition, the rest by elimination.
Post continues after video.
In addition to its earlier announcement that it would like to close 3,700 post offices, the Postal Service wants to eliminate most Saturday mail service; take all of its current workers and 600,000 retirees out of the Federal Employees Health Benefits Program and put them into a cheaper plan run by the Postal Service itself; and forgo required prepayments -- $5.4 billion this year alone -- into its employee retirement plan.
Much of this would need congressional approval and would require the breaking of labor agreements -- not easy tasks. "The APWU will vehemently oppose any attempt to destroy the collective bargaining rights of postal employees or tamper with our recently negotiated contract -- whether by postal management or members of Congress," American Postal Workers Union President Cliff Guffey told The Washington Post.
Then there is the problem of public opinion. No one wants his or her post office closed. Here's what Daniel Deagler, writing on the Philadelphia Inquirer's website, had to say:
The Postal Service, chartered in 1971 as a self-supporting organization, is not a government department in the sense that State and Agriculture are, but Deagler has a point: Is financing your local post office -- 17 in the Bronx alone are targeted for closing -- something taxpayers should take on?
No, insists Doug Mataconis of Outside the Beltway:
While keeping in mind that, even with the personnel cuts proposed by the Postal Service itself, privatization would still leave 343,000 middle-class employees looking for work in a job-scarce economy, not to mention the ripple effect, I believe shutting down is long-term smart.
More on MSN Money:
One of the biggest problems is the USPS cannot make any major business moves without approval from Congress. And we all see how effective Congress is lately, and even years ago. And when I say Congress I do not mean THIS Congress in particular, but any Congress now or past, Dem controlled or Rep. They drag their feet with PO policy, and for them when it comes to the PO, change is not good. They like it the way it is.
One of the reasons is the PO is only allowed to "break even." Even in the best of times. The Feds take all the profit and it goes into the general budget of the country. This supposedly prevents a "government monopoly" of the postal business and allows others to compete in the market. However private business must make a profit, so the PO is always the best when it comes to rates.
This in turn helps businesses who choose to use the USPS and its less expensive rates. Perhaps most impressively the PO is actually doing well even though they are losing 8B a year. I say that because taking in 67B is not small potatoes. The trouble is during times of economic change like this, when the PO wants to make changes, increase prices a bit, and change their business model, they literally can't without Congressional approval. Which in turn will most likely say "ok raise rates and make changes and cuts to break even, but nothing more."
Which in turn helps the private sector. That's great, but it's something I think many in this country do not understand. If Congress does not relieve the PO of it's required pre funding of healthcare benefits next month (the only business in the country required to do that) or refund some of it's overpayment from the past, the PO will not be at it's "break even point." It is made to budget itself on a pinhead.
And again, the PO can be a money maker and also allow competetion. It can pay it's workers and change it's business model. It's actually become a very streamlined business that can pay for itself, and it is completely self supporting. But oops, if it makes even $1 in profit, musch less a billion, it goes into the federal budget. This is why a "bailout" of the PO would not be a true bailout. It doesn't need one, really. But if it did it's only because it's hands are literally tied, and any money it could make would not return to it. And it never has.
If it needs money it borrows from banks, not the Gov. And so far as the Gov is concerend, well, they operate at a debt, why not the PO, too? And if it didn't, well, the PO has to cough up that money, anyway.
Yes, pretty silly. But so are a lot of things these days in Washington!
These two statements say a lot:
The fact of the matter is the PO and it's unions have OVERPAID into pension funds to the tune of upwards of $100B and the federal governrnment, which many claim is too big and are thieves, won't give ANY of it back so the PO can stay solvent. If a private company overpaid, say, taxes to that tune their would be an outcry.
It would make sense to stop giving our money away overseas and for the government to refund overpayment of retiree funding. Apparently the Postal Service shouldn't even HAVE to do the pre-funding but they are forced to. Oh, wait...it would make SENSE. Never mind. I shudder to think how I will pay my mortgage, utilities, insurance, etc. if some stupid clowns bury the Postal Service completely. Sadly, they are well on their way to doing just that.
The PO is something we all can support, as we pay directly for it's service. The fact of the matter is the PO and it's unions have OVERPAID into pension funds to the tune of upwards of $100B and the federal governrnment, which many claim is too big and are thieves, won't give ANY of it back so the PO can stay solvent. If a private company overpaid, say, taxes to that tune their would be an outcry from many of you deriding unions, big government, and the PO. What OUR post office needs now is the same sort of outcry from the public. Why should Congress be allowed to deny the PO the opportunity to make a profit and reinvest in itself, and demand what profit it could make be surrendered to Congress? And why is Congress allowed to take 100B of overpayment into USPS employee pension funds and spend it elsewhere when the PO would be solvent if even part of those monies were justly returned? That is an outrage!
The PO is a relevant and critical part of our American liberties and freedoms, and should be treated as such. In times of dire straights and need we all need to be able to depend on the PO the same way we depend on the military. This is why it's called a "service." It's one of the last organazations that truly serves the American public without a special interest of it's own. PO Unions? Do not be deceived. They cannot even strike. They simply advocate for a living wage and benefits for the employees, and oversee workplace issues. The reason for the "no layoff" clause for union employees on the job six years or more is because when the contracts were drawn up management wanted a "no strike" clause, as the service was too vital to America to allow a strike. Yes, times have changed, but those are still good principles that run both ways, as the PO is still a vital and necessary part of the national security of the United States.
FedEX is a private company, even with "Federal" in it's name. UPS is also, even though "United" is in it's name. As I posted before, one of the reasons the USPS is not allowed to profit is because over two decades ago some though the private sector could do the job better and more competitively, but it could not and cannot. Too many fingers in the pie. Congress needs to get the heck out of the way now and let the PO do what it does best and with earnings it can reinvest. To assure the American people will always have access to a service which provides delivery of private communication between our citizens. In times of war, in times of drought, in times of terror, in times of oppression. The PO is one of the last organizations which serves all of us equally, gives us what we pay for, and understands even if it doesn't make money it has a higher goal. And that is to help preserve the freedoms of the American people.
Say it with me...The United States Army, The United States Marines, The United States Navy, The United States Air Force, and yes, The United States Postal Service.
The country needs a reliable, dedicated, and yes, PREPARED FOR ANYTHING workforce at the PO. The days of "going postal" and the stereotype of the lazy postal employee needs to cease, and we need to bring dignity and respect back to the Dept. It is a vital function of the US that stands for the people and by the people. So tell Congress to butt out, lest you like big GOV?
Imagine it is night, power is out for weeks, maybe months. Money is devalued, enemies roam the streets, communications are down, no internet, you and your family are locked inside. Someone comes to the door and knocks. Fear grips you and then...."It's the United States Postal Service" comes from the other side to collect your communications and take it across hostile territory at any and all cost, and for practically nothing.
This my fellow American is the ultimate function of the USPS, and it is certainly worth saving to serve us ALL.
Odd how all these large businesses and institutions that are in the red and failing are union shops. And it seems that their huge retirement pensions and healthcare benefits are doing it.
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