Read more: http://www.foxnews.com/politics/2011/08/12/postal-unions-rip-cost-cutting-plan-to-slash-120000-jobs/#ixzz1UrJ5KEKd
...Postal officials have said they will be unable to make a $5.5 billion payment to cover future employee care costs due Sept. 30. It is the only federal agency required to make such a payment but, because of the complex way government finances are counted, eliminating it would make the federal budget deficit appear $5.5 billion larger.
If Congress doesn't act and current losses continue, the post office will be unable to make that payment at the end of September because it will have reached its borrowing limit and simply won't have the cash to do so, the agency said earlier.
In that event, Postmaster General Patrick Donahoe said, "Our intent is to continue to deliver the mail, pay our employees and pay our suppliers."
Postal officials have sought congressional assistance repeatedly over the last few years, including requests to be allowed to end Saturday mail delivery, and several bills have been proposed, but none has been acted on.
In addition, the post office recently said it is considering closing 3,653 post offices, stations and other facilities, about one-10th of its offices around the country, in an effort to save money. Offices under consideration for closing are largely rural with little traffic.
And in June, the post office suspended contributions to its employees' pension fund, which it said was overfunded.
In its 2010 annual report the post office reported a loss of more than $8 billion on revenues of $67 billion and expenses of $75 billion.
And even while total mail volume fell from 202 billion items to 170 billion from 2008 to 2010, the number of places the agency has to deliver mail increased by 1.7 million as Americans built new homes, offices and businesses.
The latest cutback plans were first reported by The Washington Post, which said a notice to employees informing them of its proposals stated: "Financial crisis calls for significant actions, we will be insolvent next month due to significant declines in mail volume and retiree health benefit prefunding costs imposed by Congress."
The Associated Press contributed to this report.
Read more: http://www.foxnews.com/politics/2011/08/12/postal-unions-rip-cost-cutting-plan-to-slash-120000-jobs/#ixzz1UrIr6uYA
Having worked over 30 Years for the USPS, my humble opinion of cutting Saturday delivery will not save the Postal Service much in revenue, if at all. The volume of mail handles will be rolled into the workload of the full time workers form the substitute carriers and mailhandlers. This increase in volume will cause many routes sitting on the edge of being split off to reduce size; will suddenly do so, making for an drastic increase in workers in full time status, with benefits.
The closing of the offices within a 5 mile radius into one office has been a need since Henry Ford built the first car. Pride of having the Post office was high back before the reform in the 1970's, with Post Masters appointed by Township/City Supervisors. Now, pride is in having a zip code for your own community, hardly a reason for the fiscal waste. The Postal Service has done their homework on closing, and is ready to do it. All Congress needs to do is, start eating at problems one bit at a time, not waiting for volumes of a resolution to move forward.
The Pre-paying of the Retiree healthcare fund was a shift by Congress under the Bush Administration to help with the Federal Budget, shifting it onto stamps. The concept of Mail delivery is not yet out of order, as many still depend on the Postal Service as Benjamin Franklin designed it for, universal service.
There is one concept that I shun to share, but it is a fact, the Postal Service would break even if they paid customers $100.00 per year to use the P.O. Box Section, as that is the average cost of delivering to one residence. Why I shun the thought, the energy wasted to retrieve mail.
If everyone knew all there is to know, they would not do half the things they do, including myself, therefore I must foregive them, including myself.