The nearly bankrupt U.S. Postal Service on Thursday reported losses of $57 million per day in the last quarter and warned it will miss another payment due to the U.S. Treasury, just one week after its first-ever default on a payment for future retiree health benefits.
From April to June, losses totaled $5.2 billion, up $2.1 billion from the same period last year.
The mail agency said it is being hurt significantly by mounting expenses for future retiree health benefits. Those expenses, mandated by Congress in 2006, made up $3.1 billion of the post office’s quarterly loss, while workers compensation tacked on another $1.1 billion in expenses. The agency’s operating loss was $1 billion, mostly due to declines in first-class mail.
And the USPO missed the August payment for retiree benefits and…
The mail agency says it will miss the second $5.6 billion payment due on Sept. 30, also for future retiree benefits, as cash runs close to zero.
What is going to happen? The PO wants to curtail costs by halting Saturday delivery and a plan to close post offices across the country. But Congress won’t let them.
My question is how does the PO continue. Nothing I’ve heard talks about keeping the PO viable in the future. We need action and we need it quickly. Close these damn post offices and combine the facilities. Stop delivery on Saturday. Do we need to think about privatizing the Post Office?
Maybe Obama was correct while talking about private companies being able to do some things better than public/government entities back in 2009 when he publicly stated…
“… UPS and FedEx were doing fine, but it’s the post office that’s always having problems.”
We need to stop the bleeding, to the tune of
The USPS lost 14.1 billion in 2011 alone, where will it end?????