Thread: Postal Service Looks To Cut 40,000 Jobs In First Layoff In History

.................................................. .. here it goes.

USPS financial woes stem from a perfect storm of events.
1. Internet
2. 2008 recession which dramatically reduces standard (junk) mail volumes. Junk mail is the grease on the skids.
3. Higher fuel cost
4. Higher health insurance rates,
5. Bad legislation, prefunding retirees health care at a unreasonable rate not used by anyone in the pivate or public sector.
6. Contract requirements.

Lets look at the business facts.
1. USPS revenue last year $67 billion, so that means we have cash flow and there is money to be made.
2. USPS loss last year $8.5 billion, see above.
3. No lay off clause in contract. While every USPS competitor was laying off, cutting wages, and suspending 401k contributions to keep the company viable the USPS continued to march.
4. Over sized retail network. Way too many rural Post Office's. A office that cost USPS $70,000 to operate and brings in $4,000 to $6,000 in revenue. That rural PO need to sell $1400 in stamp a week to make a profit.
5. Six day delivery standard. Going to 5 like our competators could save $3 billion.
6. Right sizing pay for skill level is a big one.
7. USPS over paid CSRS by about $50 to $75 billion and Congress won't give it back because that would require other Agencies to make up where they have been slacking.

I could go on but I'm tired of thinking about. Look at Page A of the USPS Nation Payroll Hour Summary Report here. Look it over, it is for a two week period and I could cut enough to save about $3 billion a year without touching wages, retirement, or insurance.

Note: USPS pays $40 million in TSP 1% and match every pay period. That is the TSP hook, lol. Payroll and benifits for a two week pay period is $1.8 billion............................every two weeks ya'll......................

One thing is for sure Congress is to blame because management and the Unions have been telling them that we are out of money. Where is Congress? Where is that leadership Mr. President?

You guys ain't seen nothing yet, stay tuned because it is going to be a huge train wreak in a couple of weeks. STANDBY!!!!

Some reading to pass along:

USPS Volume Mix Changes; Periodicals Still Declining Dr. Joe Webb on economics, strategy, marketing, and other random thoughts

Congress hog-tied the USPS when this y2k GAO report was issued about the USPS as it related to Electronic Commerce:
U.S. POSTAL SERVICE - Postal Activities and Laws Related to Electronic Commerce

and linked from the first URL, the cover story of Business Week (one of the best pubs out there, IMO, and I delivered many of them):

The U.S. Postal Service Nears Collapse

Finally, this program sponsored by New Hampshire public radio addressing the rural delivery issue, with Ruth Goldberg from the PRC as one of the guests:
Postal Problems - available as a podcast / broadcast here : http://www.nhpr.org/audio/audio/ex-2011-02-23.mp3.