The Postal Service is facing dire economic challenges that threaten its very existence...If the Postal Service was a private sector business, it would have filed for bankruptcy and utilized the reorganization process to restructure its labor agreements to reflect the new financial reality...Unfortunately, the collective bargaining agreements between the Postal Service and our unionized employees contain layoff restrictions that make it impossible to reduce the size of our workforce by the amount required by 2015. Therefore, a legislative change is needed to eliminate the layoff protections in our collective bargaining agreements.The United States Post Office was established 1775, based on the Postal Clause in Article One of the United States Constitution, empowering Congress "To establish post offices and post roads." Benjamin Franklin was the first Postmaster General, and until 1971 it was part of the Presidential cabinet (and the Postmaster General was the last person in the United States presidential line of succession). In 1971 The Postal Reorganization Act reorganized the USPO into the United States Postal Service, an independent agency of the United States.
If the Postal Service was a private sector business, it would have filed for bankruptcy and utilized the reorganization process to restructure its labor agreements to reflect the new financial realityIf the Postal Service was a private sector business, people in rural Montana wouldn't have mail delivery. It's not a private sector business. We demand things of it that we would never demand of private sector businesses, because it provides things that are necessary and that can't be provided by the market. This seems pretty basic.
In 2006, Congress mandated that the Postal Service prefund future retiree health benefits for the next 75 years, and do so within a decade—something no other public agency or private firm does. The resulting annual payments run $5.5 billion a year, costing the Postal Service $21 billion since 2007. That’s the difference between a positive and a negative balance sheet, as it would be for virtually any entity facing a similar burden — if any did.Solutions?
Remove that unreasonable obligation and the Postal Service would have been profitable.Or....
Allow the Postal Service to stop depleting its operating funds to make these payments, and instead permit an internal transfer of funds from its pension surpluses — as any responsible business would do.Also, it is my understand that the Postal Surpluses earlier in the decade were simply absorbed by the Federal government. If so, that's just another no-win situation forced upon them by the government.
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posted by punkfloyd at 5:16 PM on August 11, 2011