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Postal Service to Cut Saturday Mail Delivery

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Postal Service to Cut Saturday Mail Delivery to save $2 billion a year

I always wondered how email and the internet was effecting the USPS. I know I get all my important documents for both work and personal stuff via email and like so many others, I use paperless statements for all my bills. The USPS needs to take a serious run at Fedex and UPS because you can't email a package and I read somewhere (can't remember where) that internet shopping makes up close to 50% of total retail sales.

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The fact that you could send a piece of paper from one end of the country to the next for basically spare change is still pretty cool when you think about all the cost involved to pay someone to pick it up, another person to sort it, then a guy puts it in a truck drives it to the airport, then your mail flies to the other end, is driven to another post office, sorted, then delivered to someone's door. Oh this model is causing budget problems??

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There isn't hardly anything nowadays that's so important that it has to get mailed next day, honestly it could go to every other day and be just as effective.

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the problem is the cost of postage stamp does not cover the costs involved in delivering the item. The US government has to deal with not just one union but four unions. Add to this the mandate the organization cannot make a profit. There are no easy answers for the problems with the USPS.

Things that must be examined are ways to decrease costs and increase revenue. One possibility would to have a service that provides free delivery on three days of the week with extra charges for the remaining four days of the week with additional charges for Saturday and Sunday deliveries

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Since I'm a postal employee, I'll chime in. The reason the USPS is having trouble has little to do with the unions (and I'm in management). In 2006, Congress passes the Postal Accountability Enhancement Act or PAEA. It requires the USPS to prepay 75 years of retiree health benefits over a 10 year period. This costs about $6 billion a year. This is in addition to the current retirees. No other business has to do this. Congress wants the USPS to be run like a business but puts government controls on it that no business has. This came at the worst time possible with the economy tanking.

The Postal Service has been trying to get congress to address this for about 3 years now, but congress will not. That payment goes directly to the treasury and not into an account for future use. Since it is technically "income" for the treasury, it knocks that much off the deficit. The USPS has had to borrow to make that payment for the last few years. Want to guess who we borrow it from? Why, the U.S. Treasury. They have now transferred $6 billion a year of federal debt to USPS debt. The hawks in congress see the shortfalls of the Post Office and want blood and blame poor management, the unions, or anything else that doesn't require them to act.

It's kind of hard when we are having to pay for retirement benefits for employees that haven't been born yet.

Edited by super_dave_1

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Since I'm a postal employee, I'll chime in. The reason the USPS is having trouble has little to do with the unions (and I'm in management). In 2006, Congress passes the Postal Accountability Enhancement Act or PAEA. It requires the USPS to prepay 75 years of retiree health benefits over a 10 year period. This costs about $6 billion a year. This is in addition to the current retirees. No other business has to do this. Congress wants the USPS to be run like a business but puts government controls on it that no business has. This came at the worst time possible with the economy tanking.

thanks much for your input. wish make Congress run like a business

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