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EDITORIAL
It's in the mail
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The union label is bringing yet another major American employer to its knees: the U.S. Postal Service.
Postmaster General John Potter released a handful of consultant reports Tuesday, all of which document a dismal outlook for the country's mail carrier. Foremost among the bad news: a projected loss of $238 billion over the next 10 years, and plunging mail volume, which dropped 13 percent last fiscal year alone.
Two likely results of those trends: an end to Saturday mail delivery and even higher stamp prices.
The Postal Service and its defenders love to blame technology for much of their problems. Aside from the postage-reducing business of e-mail and text messaging, millions of Americans no longer partake in the monthly ritual of mailing dozens of bills. The Internet, the expansion of credit card use and banking ingenuity let consumers pay most of their bills through automatic charges and deductions -- and make far fewer trips to the local post office.
But the Postal Service, like any other business, would have the flexibility to adapt to changing market conditions if not for crushing obligations to its unionized workers.
A required $5.5 billion annual prepayment for the health care benefits of future retirees made a black balance sheet bright red; last fiscal year's losses totaled $3.8 billion. Each year, the Postal Service spends a total of about $7 billion on health care for retirees -- 10 percent of its revenue.
About half of the Postal Service's 600,000 workers are eligible to retire in the next 10 years. They can't be laid off, their growing salaries can't be scaled back, and their pensions and health care subsidies are essentially a property right. Although new union contracts will be negotiated this year and next, Mr. Potter freely admits that next to nothing can be done to control Postal Service personnel costs.
Unions have hijacked the airline industry, sent automakers into a ditch and all but bankrupted states and local governments. Now they're hastening the demise of this country's mail service.
Card check, anyone?
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"A required $5.5 billion annual prepayment for the health care benefits of future retirees made a black balance sheet bright red; last fiscal year's losses totaled $3.8 billion. Each year, the Postal Service spends a total of about $7 billion on health care for retirees -- 10 percent of its revenue."
Health Care costs are bankrupting this nation and her businesses much more than any other factor.
Someone should do something about this!
Just keep your government hands off my Medicare!
A significant contributor is the fact the no congressman will vote to close an underperforming post office in their district. My hometown has lost over 50% of it's population (about 500,000 people) since 1970. Only one post office has closed.
Howard: I believe you have to be 50 years old and hve 10 years of service in order to retire and it is far from a full pension. I have never been in favor of unions. After working as a letter for a year I changed my mind. Top down management does not work.
Unions made promises for benefits and retirements they cannot keep, and are desperate to expand their base with new members and get Obama government health care (so they no longer have to provide that benefit).
Swear to gawd, union members drink the kool-aid and think they've won the Wonka golden retirement ticket when they join a union. It's the dumbing down of the union workforce.
Thanks to Obama and his advisors, a light is shining on present day unions and their fiscal objectives. The last year has been a great learning experience, identifing who is the biggest organization in the retirement business and how their retirement plans are about to collapse.
Why does the USPS give bonuses to its employees?
When you operate outside your budget, why does the govt. give you extra money to show you did a good job?
My mother in law made just over 100k, before her bonus. Her bonus was 12k.
GH - you just can't compare the Postal Service to UPS or FedEx. The USPS has a government sanctioned monopoly, that restricts the type of deliverys made by private companies. That mailbox that YOU purchased and Maintain??? UPS and FedEx are prohibited - by law - from placing anything in that box. However, I agree that there IS a problem, especially when you take into account that unlike thier private competitors, the Postal Service dosen't pay fuel taxes, vehicle registration, property taxes, excise taxes etc etc etc and STILL manages to lose money.
Remember - for every union thug making demands, there's a willing management suit who signs the agreement. Blame goes in both directions.