Mandate pushed Postal Service into the red for first quarter

Feb 9, 2013 Full story: The Washington Post 109

The U.S. Postal Service lost $1.3 billion during the first quarter, but it could have turned a $100 million profit if not for a congressional mandate that officials have long blamed for stifling post office finances, according to the agency's first-quarter financial statement .

Full Story
Wall Street Government

Sebastian, FL

#62 Feb 9, 2013
WeTheSheeple wrote:
<quoted text>
Because by law they are banned from offering first class delivery of letters.
With increased volume the prices would no doubt come down.
USPS's competitors are the postal laws, dating back to 1845, which prohibit private companies from transporting and delivering letters or packets in competition with the Postal Service. There are some EXEMPTIONS, such as those for delivering newspapers, magazines, and urgent letters, but where competition is allowed, as in the case of urgent delivery, private carriers must charge at least $3 more or twice as much as the first-class postage rate.

The prices have to come down to acquire the volume.
drink The hive

New York, NY

#63 Feb 9, 2013
USA Has An Imbalance Of Serotonin 4 A Long Time...

&fe ature=related

“JESUS WOULD IMPEACH THE GOP!!!”

Since: May 09

Lake Success, N.Y.

#64 Feb 9, 2013
WeTheSheeple wrote:
<quoted text>
Federal law bans any private company from delivering a first class letter. The only exceptions are for so-called urgent or express letters; they're called Private Express Statutes.
Google it.
By FEDERAL LAW those urgent letters HAVE to cost AT LEAST $3 or double what the Post Office would charge for priority mail.
If FedEx & UPS & others can't compete, then the post office has nothing to worry about.
So let's repeal the laws banning them from carrying first class letters and let's find out.
I normally agree with your views, but on this I have to defer. No other company in modern history has ever had to pre pay a pension plan 75 years into the future in under a ten year period. The Postal Service is being forced to pay for employees that don't even exist right now! If this were done to any private delivery service, they too would be bankrupted, and very quickly.

Why not be more sensible about this? Pay 30 years into the future within 15 years? The USPS does not recieve any federal funding - therefore, why should Congress impose these burdens that could never be financially achieved even in a private industry?
Your Ex

United States

#65 Feb 9, 2013
Gary wrote:
One thing I'll never understand is why
these tea party-type Republicans (or
maybe all of them) take such pride in
hating government and demonizing all
government employees.
What is it with the conservative mind that it
gets such satisfaction out of hating government,
especially good government?
There must be Republican Wahabi schools where
they teach hatred of government. What else
can explain it other than they are the
American Taliban.
Once you take into consideration their stances on
Social issues
Women's issues
Foriegners &
Religion
Nothing else does explain it!
Is there a group more out there than the
Frightwing Taliban?
(10 points to the 1st mouth-breather to post 'Libruls!!')

“Happiness comes through giving”

Since: Feb 08

Location hidden

#66 Feb 9, 2013
Ninthman wrote:
<quoted text>Benghazi?
Smegma?
celticwarriors

Bradenton, FL

#68 Feb 9, 2013
The Poison Pill against the USPS was created by the Repugnant Congress in 2006. Everything Repulsives do is AGAINST American workers and all citizens. That is a fact. Period.
Chicopee

Danbury, CT

#69 Feb 9, 2013
TonyT1961 wrote:
<quoted text>
I normally agree with your views, but on this I have to defer. No other company in modern history has ever had to pre pay a pension plan 75 years into the future in under a ten year period. The Postal Service is being forced to pay for employees that don't even exist right now! If this were done to any private delivery service, they too would be bankrupted, and very quickly.
Why not be more sensible about this? Pay 30 years into the future within 15 years? The USPS does not recieve any federal funding - therefore, why should Congress impose these burdens that could never be financially achieved even in a private industry?
Like many other businesses, the USPS has seen more than a slight decline in demand of their services.
Their union contract contains a no-layoff clause. While the number of postal workers has declined through attrition and early retirement packages, those haven't been nearly enough cuts to accomodate the decline in demand. Consequently, there are employees who don't have enough work to get them through the day and cases where they report to work and have nothing to do at all, but they have to be there to be paid.
No private business would survive like that.
While they don't recieve federal funds, they can recieve a taxpayer bailout...and they know it. They know that they can't just fold and disappear like a privately owned company.
An attempt was made to get the union to do away with the no layoff clause by retaining laid off employees and placing them in other jobs with the federal government. The union and employees refused.
While I'm not familiar with the pension pre-payment or why it happened, I wouldn't be surprised to find something to the affect of or in conflict with using a tax payer bailout for pension funds, requiring those funds to be paid up front.

Since: Nov 08

Location hidden

#72 Feb 10, 2013
tha Professor wrote:
Absolutely true, and this mandate was a DISASTROUSLY dumb idea when it was passed. As if that weren't bad enough, we have scum like D. Issa (R-Carthief) which would not address the USPS overpayments to its pension accounts, will not address the onerous pre-funding mandate, force postal workers to make up the difference, create a commission that would order post office closures and a board to cut wages, abolish benefits, and end layoff protections, and increase postal workers’ health care costs.
For the truth read this simple fact:
"At the heart of the matter is a 2006 Congressional mandate put on the US Postal Service contained in the “Postal Accountability and Enhancement Act of 2006” to pre-fund healthcare benefits of future retirees, a 75 year liability over a 10 year period. No other agency or corporation is required to do this. This provision costs the Postal Service $5.5 billion a year."
Unbelievable. NOTHING but far-right orchestrated union-busting and destruction of government services. Republicans do NOT have the best interests of America in mind.
True, cut all the way out of line benefits and payscales and that will fix everything. Heaven forbid they pay for their retirement with real money instead of Stimulus money from Obama as other unions did.

Since: Nov 08

Location hidden

#73 Feb 10, 2013
celticwarriors wrote:
The Poison Pill against the USPS was created by the Repugnant Congress in 2006. Everything Repulsives do is AGAINST American workers and all citizens. That is a fact. Period.
If unions are so great, how come they have declined over the last 40 years and continue their coruption to try and stay alive with the taxpayer funding the bill.

Since: Nov 08

Location hidden

#74 Feb 10, 2013
Your Ex wrote:
<quoted text>
Once you take into consideration their stances on
Social issues
Women's issues
Foriegners &
Religion
Nothing else does explain it!
Is there a group more out there than the
Frightwing Taliban?
(10 points to the 1st mouth-breather to post 'Libruls!!')
Why not list the spicific charges moron. Generalization with no back up is simply ranting.
Your Ex

United States

#75 Feb 10, 2013
Le Jimbo wrote:
<quoted text>Why not list the spicific charges moron. Generalization with no back up is simply ranting.
This from a guy who incessantly rants and never backs up a thing.
Too effing funy.
FLASH!: you're a waste of time, LeContraire.
gossamer

Warren, MI

#76 Feb 10, 2013
Your Ex wrote:
<quoted text>
This from a guy who incessantly rants and never backs up a thing.
Too effing funy.
FLASH!: you're a waste of time, LeContraire.
I want to see you back it up.
xxxrayted

Cleveland, OH

#77 Feb 10, 2013
Chicopee wrote:
<quoted text>
Like many other businesses, the USPS has seen more than a slight decline in demand of their services.
Their union contract contains a no-layoff clause. While the number of postal workers has declined through attrition and early retirement packages, those haven't been nearly enough cuts to accomodate the decline in demand. Consequently, there are employees who don't have enough work to get them through the day and cases where they report to work and have nothing to do at all, but they have to be there to be paid.
Maybe that goes on where you live, but I know several people who work for the post office and it's actually quite the opposite here. Their supervisors are constantly breathing down their necks and demanding more output. Some even take short lunches just to catch up on all the work expected of them. My cousin witnessed a carrier have a heart attack on the job after he left a screaming match between he and his supervisor.

Now 30 years ago was an entirely different story. Postal workers used to brag how they get routes in their neighborhood and spend 5 out of the 8 hours sitting at home watching television. Things changed when the Republicans gained lead in Congress and threatened to privatize the post office. Every postal worker I know today hates their job, but it has good pay and benefits, so they put up with it.
Dane Thorsen

AOL

#78 Feb 10, 2013
Shut the PO down now. It is a wasteful dinosaur.
Everything but the Military is better when it is privatized and taken out of the governments hands. The Govt is like a mass of locusts that devours everything in it's path just to feed it's never ending GREED.
TedsLiver

Mountain View, CA

#79 Feb 10, 2013
tha Professor wrote:
Absolutely true, and this mandate was a DISASTROUSLY dumb idea when it was passed. As if that weren't bad enough, we have scum like D. Issa (R-Carthief) which would not address the USPS overpayments to its pension accounts, will not address the onerous pre-funding mandate, force postal workers to make up the difference, create a commission that would order post office closures and a board to cut wages, abolish benefits, and end layoff protections, and increase postal workers’ health care costs.
For the truth read this simple fact:
"At the heart of the matter is a 2006 Congressional mandate put on the US Postal Service contained in the “Postal Accountability and Enhancement Act of 2006” to pre-fund healthcare benefits of future retirees, a 75 year liability over a 10 year period. No other agency or corporation is required to do this. This provision costs the Postal Service $5.5 billion a year."
Unbelievable. NOTHING but far-right orchestrated union-busting and destruction of government services. Republicans do NOT have the best interests of America in mind.
. Senator Diane Feinstein's (Democrat) Husband's real estate firm was awarded the exclusive contract to sell postal buildings here in California. Seems like the scummy Liberals are lining their pockets on the USPS. I guess selling these building is union busting too!
Your Ex

United States

#80 Feb 10, 2013
gossamer wrote:
<quoted text>
I want to see you back it up.
Funny reply:
I don't swing that way...
Actual:
http://aattp.org/wp-content/uploads/2013/02/a...
Enjoy!

“Headed toward the cliff”

Since: Nov 07

Tawas City, Michigan

#81 Feb 10, 2013
Wall Street Government wrote:
<quoted text>
USPS's competitors are the postal laws, dating back to 1845, which prohibit private companies from transporting and delivering letters or packets in competition with the Postal Service. There are some EXEMPTIONS, such as those for delivering newspapers, magazines, and urgent letters, but where competition is allowed, as in the case of urgent delivery, private carriers must charge at least $3 more or twice as much as the first-class postage rate.
The prices have to come down to acquire the volume.
Which is why I support repealing the laws which give the post office a monopoly and instead allow the free market decide.

“Headed toward the cliff”

Since: Nov 07

Tawas City, Michigan

#82 Feb 10, 2013
TonyT1961 wrote:
<quoted text>
I normally agree with your views, but on this I have to defer. No other company in modern history has ever had to pre pay a pension plan 75 years into the future in under a ten year period. The Postal Service is being forced to pay for employees that don't even exist right now! If this were done to any private delivery service, they too would be bankrupted, and very quickly.
Why not be more sensible about this? Pay 30 years into the future within 15 years? The USPS does not recieve any federal funding - therefore, why should Congress impose these burdens that could never be financially achieved even in a private industry?
That would probably be reasonable; I don't have much issue with their pension system as long as the taxpayer isn't on the hook when they come up short.
sickofit

Faribault, MN

#83 Feb 10, 2013
WeTheSheeple wrote:
<quoted text>
That would probably be reasonable; I don't have much issue with their pension system as long as the taxpayer isn't on the hook when they come up short.
Tax payers are coughing up your pension.....Whats the difference?
Wall Street Government

Sebastian, FL

#84 Feb 10, 2013
WeTheSheeple wrote:
<quoted text>
Which is why I support repealing the laws which give the post office a monopoly and instead allow the free market decide.
The monopoly was created by Congress as a revenue protection measure for the Postal Service’s predecessor to enable it to fulfill its mission. It is to prevent private competitors from engaging in an activity known as ‘cream-skimming,’ i.e., offering service on low-cost routes at prices below those of the Postal Service, while leaving the USPS with high-cost routes.” The law that prohibits anyone except the USPS from placing mail in a private mailbox was also passed for the purpose of preventing loss of revenue to the post office.

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