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US Postal Service posts $3.5 billion loss
Topic Started: Aug 5 2010, 03:16 PM (324 Views)
Baldo
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NEW YORK (CNNMoney.com) -- The U.S. Postal Service reported a $3.5 billion loss in its most recent quarter Thursday, as mail volume plummets and retiree health care costs mount.

The USPS, a self-supporting government agency that receives no tax dollars, said operating revenue declined 1.8% to $16 billion during the fiscal 2010 third quarter compared to a year earlier, while operating expenses spiked 4.2% to $19.5 billion.

The quarterly loss was the fourteenth in the last sixteen quarters, the postal service said.

"A significant portion of USPS losses in the past few years has been due to an unprecedented decline in mail volume -- down more than 20% since 2007," the USPS said in a statement. "The replacement of letter mail and business-transaction mail by electronic alternatives continues to cause downward pressure on mail volume."

During the third quarter alone, mail volume slipped 1.7% to 40.9 billion pieces. The USPS, which relies solely on the sale of postage-related products and services to generate revenue, has projected that total mail volume will fall more than 5% on an annual basis for the 2010 fiscal year, which ends September 30.

Making the problem worse is a federal law passed in 2006 that requires the Post Office to pay between $5.4 and $5.8 billion into its prepaid retiree health benefits each year. USPS chief financial officer Joseph Corbett said making the $5.5 billion payment that's due to the retiree fund Sept. 30 will threaten the agency's cash flow for the next fiscal year.

"Given current trends, we will not be able to pay all 2011 obligations," Corbett said. "Despite ongoing aggressive cost reductions totaling over $10 billion in the last three years, it is clear that a liquidity problem is looming and must be addressed through fundamental changes requiring legislation and changes to contracts."...
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http://money.cnn.com/2010/08/05/news/companies/US_postal_service_earnings/

Maybe we should put Bite it in charge?

BTW does anyone ever think about laying-off unneeded employees and reducing salaries & benefits?
Edited by Baldo, Aug 5 2010, 03:18 PM.
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kbp

"BTW does anyone ever think about laying-off unneeded employees and reducing salaries & benefits?"

The private sector thought about it, did it and is still doing it because they are uncertain where the economy will go with the health care, spending, taxes and debt burden changes we're experiencing.

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Acc Esq

kbp
Aug 5 2010, 03:36 PM
"BTW does anyone ever think about laying-off unneeded employees and reducing salaries & benefits?"

The private sector thought about it, did it and is still doing it because they are uncertain where the economy will go with the health care, spending, taxes and debt burden changes we're experiencing.

Fed Ex? UPS?
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Baldo
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So what's next? A bail-out for the Postal workers?

Sorry, life in the private sector means lay-offs when there isn't enough work. It will kill us unless we start making Public employees responsible for their organization's failure.
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longstop
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Might be time it get those Pony Express boys back on the line ?
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cks
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When there is not enough work for employees in the private sector, said employees are let go. At my school an excellent and popular phys ed teacher was let go because there were not enough students to justify keeping her on. (Last hired, first fired). Classes have been enlarged so as to get more work from teachers while paying less overall. Whentimes are tough, belt tightening occurs and employees are forced to do more with less - that is the rule in the private sector.

Ge the postal employees out of their cars and let them walk again. Those that still deliver to the door (rather than to the curb) are lean, mean fighting machines. (at my new home I still have house delivery through a slot in the house) while those who ride around in their cars tend to corpulence. If they walked, look how much money will be saved on gas and car maintenance alone. Added factor, they will b healthier as well which might cut down on health care.
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wingedwheel
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Baldo
Aug 5 2010, 04:00 PM
So what's next? A bail-out for the Postal workers?
Yes, and deliveries down to 5 days. Then in a year or so they will come back with a 4 or 3 day delivery day plan that was being floated around earlier this year. And if people just stop using snail mail years from now the government will just pay them to joyride around town in mail trucks or sit at home.
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kbp

cks
Aug 6 2010, 06:26 AM
When there is not enough work for employees in the private sector, said employees are let go. At my school an excellent and popular phys ed teacher was let go because there were not enough students to justify keeping her on. (Last hired, first fired). Classes have been enlarged so as to get more work from teachers while paying less overall. Whentimes are tough, belt tightening occurs and employees are forced to do more with less - that is the rule in the private sector.

Ge the postal employees out of their cars and let them walk again. Those that still deliver to the door (rather than to the curb) are lean, mean fighting machines. (at my new home I still have house delivery through a slot in the house) while those who ride around in their cars tend to corpulence. If they walked, look how much money will be saved on gas and car maintenance alone. Added factor, they will b healthier as well which might cut down on health care.
I enjoy having my mail delivered to my box by the front door, but have always wondered why they did not just plant a community cluster box to eliminate the cost of that door-to-door delivery.
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Baldo
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The feather-bedding at the USPS has been well documented. Much like the UAW's "job bank" halls the USPS had their own where they stuck unneeded employees who continued to draw paychecks.

I am so sick and tired watching the government waste our money while the private sector like cks's fellow school teachers take on more loads and govt gets more of our money.

Much like the Big Three UAW our govt employees are taking more of our resoucres and harming our country. The enemy is within and it is our govt's wasteful and harmful actions

Edited by Baldo, Aug 6 2010, 09:55 AM.
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