{"id":4780,"date":"2011-09-06T10:35:58","date_gmt":"2011-09-06T14:35:58","guid":{"rendered":"http:\/\/angry.net\/blog2\/?p=4780"},"modified":"2022-12-08T05:08:14","modified_gmt":"2022-12-08T10:08:14","slug":"the-coming-bankruptcy-of-the-united-states-postal-service","status":"publish","type":"post","link":"https:\/\/angry.net\/blog2\/?p=4780","title":{"rendered":"The coming bankruptcy of the United States Postal Service"},"content":{"rendered":"

\u201cNeither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds.<\/strong><\/em>\u201d<\/p>\n

However incompetent management, Gold plated with platinum union contracts and email have driven the USPS<\/a>, more commonly known as the post Office to the point of bankruptcy.<\/p>\n

The post office has been on the cusp of financial failure for years. Now, it has reached the point that complete failure and shutdown may happen this winter. There\u2019s a story in the NY Times<\/a>, by Steven Greenhouse<\/a> reporting that the Postal Service is close to default. If this happens, there is a good chance the USPS could shut down.<\/p>\n

Frankly, this would be a good thing. The post office is a classic example of an out of control agency that won\u2019t adapt to the times.<\/p>\n

From the NY Times<\/a>:<\/p>\n

Mail volume has plummeted with the rise of e-mail, electronic bill-paying and a Web that makes everything from fashion catalogs to news instantly available. The system will handle an estimated 167 billion pieces of mail this fiscal year, down 22 percent from five years ago.<\/p><\/blockquote>\n

This isn\u2019t a surprise. Why should you pay to send a letter that will take several days to get to its destination when you can pay essentially nothing to send an email that will arrive in seconds? In my case, I probably save $3-$5 dollars a month by doing electronic banking. Businesses can send contracts and other documents via email and save a huge amount of money. It\u2019s actually very rare to use \u201csnail mail\u201d for business.<\/p>\n

\u201cOur situation is extremely serious,\u201d the postmaster general, Patrick R. Donahoe<\/a>, said in an interview. \u201cIf Congress doesn\u2019t act, we will default.\u201d<\/p><\/blockquote>\n

And there\u2019s the first resort of the typical bureaucrat. Hit up the taxpayers.<\/p>\n

In recent weeks, Mr. Donahoe has been pushing a series of painful cost-cutting measures to erase the agency\u2019s deficit, which will reach $9.2 billion this fiscal year. They include ((USPS Workforce optimization, .pdf<\/a>)) eliminating Saturday mail delivery, closing up to 3,700 postal locations and laying off 120,000 workers \u2014 nearly one-fifth of the agency\u2019s work force \u2014 despite a no-layoffs clause in the unions\u2019 contracts.<\/p><\/blockquote>\n

A no-layoffs clause? No layoffs? As someone who has been laid off several times in my working life, I find this disgusting. No privately held company would agree to such a clause, but then they can\u2019t extort money from the taxpayers. I will salute Mr. Donahoe for taking the bull by the horns and ignoring this clause. You know that the unions won\u2019t take this lying down. It\u2019s a certainty that the Unions will run to one of their pet judges and force the USPS to keep these people.<\/p>\n

The Senate Homeland Security and Governmental Affairs Committee will hold a hearing<\/a> on the agency\u2019s predicament on Tuesday.<\/p><\/blockquote>\n

Well this will be a complete waste of time. Why?<\/p>\n

Feuding Democrats and Republicans in Congress, still smarting from the brawl over the federal debt ceiling, have failed to agree on any solutions. It doesn\u2019t help that many of the options for saving the postal service are politically unpalatable.<\/p><\/blockquote>\n

What are these unpalatable solutions? The article doesn\u2019t say, but I would bet it is raising the prices of stamps again and cutting wages and benefits. Personally, I don\u2019t think raising the price of stamps is going to work. More and more people are moving away from first class mail. The alternative is raising the prices of third class, (Junk) mail and packages. Again, I don\u2019t think this will work. Sending out flyers via third class mail really doesn\u2019t work very well and there are alternatives to shipping packages. That leaves layoffs.<\/p>\n

The post office\u2019s powerful unions are angry and alarmed about the planned layoffs. \u201cWe\u2019re going to fight this and we\u2019re going to fight it hard,\u201d said Cliff Guffey, president of the American Postal Workers Union, which represents 207,000 mail sorters and post office clerks. \u201cIt\u2019s illegal for them to abrogate our contract.\u201d<\/p><\/blockquote>\n

Time to join the real world Cliffy. If there\u2019s no money to pay for your exorbitant contracts, it doesn\u2019t matter what a judge says. Of course, there appears to be another alternative, but no doubt you\u2019ll hate this one as well. It looks like the USPS overpaid into the pension plans to the tune of around $60 billion dollars and they want to get it back. Of course,<\/p>\n

The Obama Administration has signaled discomfort with the pension proposals, questioning whether the postal service really overpaid.<\/p><\/blockquote>\n

The USPS has been mismanaged for decades. They never saw the internet coming and when it did, it blindsided them. This has given rise to an internet hoax ((Email surcharge hoax<\/a>)) that a bill was being proposed to force people to pay $0.05 per email sent. Of course, if they could figure out a way to actually do this, you know they would. \ud83d\ude09<\/p>\n

So, what to do? None of the options are good, but first and foremost, the unions need to be brought to heel. Disbanded would be the best thing. Also, the USPS needs to move fully into the free market and stop relying on congressional handouts. The other services, UPS, FedEx, Purolator, etc all make money and I know that UPS is also unionized.<\/p>\n

Will this happen?<\/p>\n

When pigs fly.<\/p>\n

As the NY Times article stated, the political will to do what is needed just isn\u2019t there. The Democrats first instinct is to protect their union moneybags and screw over the taxpayers. If they could get away with it, they would outlaw and shut down the private sector shipping companies. The Republican would cut jobs and completely overhaul the entire compensation system. Considering the mess that is, it wouldn\u2019t be a bad idea. Why do I say this?<\/p>\n

Again, from the NY Times article:<\/p>\n

Decades of contractual promises made to unionized workers, including no-layoff clauses, are increasing the post office\u2019s costs. Labor represents 80 percent of the agency\u2019s expenses, compared with 53 percent at United Parcel Service and 32 percent at FedEx, its two biggest private competitors. Postal workers also receive more generous health benefits than most other federal employees.<\/p><\/blockquote>\n

Yep, once again Unions are killing the goose that lays the golden egg. Since this is a government agency, their first thought is to loot the taxpayers. If they really want to overhaul the USPS, the first thing that needs to be done is getting rid of these unions.<\/p>\n

Comments are always open<\/p>\n

~The Angry Webmaster~<\/em><\/strong><\/p>\n\"1\"2\"3\"4\"5 (3<\/strong> votes, average: 1.00<\/strong> out of 5)
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With postmaster general Patrick R. Donahoe’s somewhat desperate …<\/a><\/h3>\n<\/div>\n
With postmaster general Patrick R. Donahoe’s somewhat desperate plea to congress to bail out the listing and outdated agency, what impact does the USPS’ precarious financial situation have on supplier relations? … year (including posts right here on the Procurement Insights blog) indicated that a number of municipalities and possibly states would have to declare bankruptcy for the first time since the Great Depression, the impact on supplier relations is indeed worth contemplating. …<\/div>\n
http:\/\/procureinsights.wordpress.com\/<\/a> \u2014 Mon, 05 Sep 2011 07:18:01 -0700<\/span><\/div>\n

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The Captain’s Journal \u00bb Enabling Catastrophe: the NYT Serves Up …<\/a><\/h3>\n<\/div>\n
In the face of national bankruptcy, the U.S. Postal Service simply must be preserved. This attitude cannot continue. Everything must be preserved. Every program, every agency, every facility, every perk and benefit is sacred. Nothing can be cut …<\/div>\n
http:\/\/www.captainsjournal.com\/<\/a> \u2014 Mon, 05 Sep 2011 07:05:23 -0700<\/span><\/div>\n

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The Strata-Sphere \u00bb A Sign Of Our Times \u2013 The End Of USPS<\/h3>\n<\/div>\n
From the Pony Express of the wild west to the diligent and unfailing service of the last century, the only means of affordable, long range communication was the US Postal Service (USPS). Heck, it even came to the rescue of Santa Claus one …<\/div>\n
http:\/\/strata-sphere.com\/blog\/ \u2014 Mon, 05 Sep 2011 06:26:52 -0700<\/span><\/div>\n

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What sort of bailout does USPS want? | RedState<\/a><\/h3>\n<\/div>\n
Through a combination of consumer shifts away from using snail mail and engrained unions\/pensions, the USPS is bleeding about $1B\/month. They are on the verge.<\/div>\n
http:\/\/www.redstate.com\/bk\/<\/a> \u2014 Mon, 05 Sep 2011 06:05:44 -0700<\/span><\/div>\n

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Is the US Postal Service Near an End \u2026 Another Casualty of Unions …<\/h3>\n<\/div>\n
The US Postal Service is near default and bankruptcy and because of decades of contractual promises made to unionized workers, including no-layoff clauses that are increasing the post office’s costs. Who runs a business like this? …<\/div>\n
http:\/\/scaredmonkeys.com\/ \u2014 Mon, 05 Sep 2011 05:56:34 -0700<\/span><\/div>\n

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Postal Service Labor Contracts Forcing Crisis<\/a><\/h3>\n<\/div>\n
Remember, this is the same Obama administration that ignored existing bankruptcy laws in the GM and Chrysler bailout to make certain the union contracts were not altered in the least, while screwing over the bondholders. The Postal Unions could not have a better … Congress with its competing demands regarding how the USPS operates is the second largest contributor to the postal service problems after the changes in they volume and type of mail. Funny thing about the package …<\/div>\n
http:\/\/www.outsidethebeltway.com\/<\/a> \u2014 Mon, 05 Sep 2011 05:01:48 -0700<\/span><\/div>\n

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Post Office Faces Bankruptcy Urgent Congress Bailout Necessary …<\/h3>\n<\/div>\n
The US Post Office needs an immediate Congress bailout package to avoid imminent bankruptcy which is the result of drastic drop in number of letters and packages that it is handling and rising labor costs.<\/div>\n
http:\/\/www.financeenquiry.com\/ \u2014 Sun, 04 Sep 2011 23:51:25 -0700<\/span><\/div>\n

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Through snow, sleet, rain, and bankruptcy. | Ye Olde Royle Blog<\/a><\/h3>\n<\/div>\n
Through snow, sleet, rain, and bankruptcy. Posted on September 5, 2011 by droyles. NO MORE. Here’s a major WTF item to go with your Labor Day barbecue: the U.S. Postal Service is so badly in debt that it soon may have to stop service …<\/div>\n
http:\/\/yeolderoyleblog.wordpress.com\/<\/a> \u2014 Sun, 04 Sep 2011 22:16:23 -0700<\/span><\/div>\n

 <\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u201cNeither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds.\u201d<\/p>\n

However incompetent management, Gold plated with platinum union contracts and email have driven the USPS, more commonly known as the post Office to the point of bankruptcy. Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[32,71],"tags":[15,8,24,57],"class_list":["post-4780","post","type-post","status-publish","format-standard","hentry","category-general","category-news-of-the-day","tag-incompetence","tag-politics","tag-socialism","tag-technology"],"views":1350,"jetpack_featured_media_url":"","jetpack-related-posts":[{"id":28218,"url":"https:\/\/angry.net\/blog2\/?p=28218","url_meta":{"origin":4780,"position":0},"title":"I hate the post office","author":"Angry Webmaster","date":"March 10, 2019","format":false,"excerpt":"Good day all. You know, I really do hate the United States Postal Service. Their motto, \"Neither snow, nor rain, nor heat, nor gloom of night, stays these couriers from the swift completion of their appointed rounds.\" doesn\u2019t actually say that they will DELIVER A LETTER TO YOUR ADDRESS!! The\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/angry.net\/blog2\/?cat=32"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/i.pinimg.com\/originals\/72\/6b\/50\/726b50dc9540ea3f514661d2f5ae24b1.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":30979,"url":"https:\/\/angry.net\/blog2\/?p=30979","url_meta":{"origin":4780,"position":1},"title":"The Great Panicdemic of 2020: Denver orders the post office to close","author":"Angry Webmaster","date":"May 30, 2020","format":false,"excerpt":"Good day all. Once again, using the Wuhan Flu as an excuse, we are seeing the great heights of stupidity that some local governments will go to in their quest for absolute power. In this case, we have the moonbats in Denver. The have issued an order to the Post\u2026","rel":"","context":"In "Crime"","block_context":{"text":"Crime","link":"https:\/\/angry.net\/blog2\/?cat=3"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/i.pinimg.com\/originals\/fb\/7f\/4b\/fb7f4beea9787acd0fe3a770ffd695bb.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":18894,"url":"https:\/\/angry.net\/blog2\/?p=18894","url_meta":{"origin":4780,"position":2},"title":"Union unhappy that they drove business into bankruptcy","author":"Angry Webmaster","date":"August 27, 2015","format":false,"excerpt":"Good day all. A long time ago, I remember my mother taking me to a supermarket. It was the only one in the area and it was called A&P. That market closed a long time ago and the building was demolished for something else.","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/angry.net\/blog2\/?cat=176"},"img":{"alt_text":"nelson2","src":"https:\/\/i0.wp.com\/angry.net\/blog2\/wp-content\/uploads\/2014\/01\/nelson2.gif?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2927,"url":"https:\/\/angry.net\/blog2\/?p=2927","url_meta":{"origin":4780,"position":3},"title":"PROPOSED AMENDMENT TO THE CONSTITUTION REGARDING REVERSION OF A STATE TO TERRITORIAL STATUS","author":"Angry Webmaster","date":"November 6, 2010","format":false,"excerpt":"I found this idea for an amendment to the US constitution over at that fine blog, The Anti-Idiotarian Rottweiller and thought I would pass it along for your review and comments. The writers, LC Subotai Bahadur, Lord Pao An, came up with this amendment in answer to a what if\u2026","rel":"","context":"In "Politics"","block_context":{"text":"Politics","link":"https:\/\/angry.net\/blog2\/?cat=8"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18999,"url":"https:\/\/angry.net\/blog2\/?p=18999","url_meta":{"origin":4780,"position":4},"title":"Chicago needs more money? No problem! Raise taxes!","author":"Angry Webmaster","date":"September 11, 2015","format":false,"excerpt":"Good day all. During the standard Friday Night Document Dump, a story came out from Chicago. As we all know, the Progressive Liberal Fascist Democrats have run the city's finances right into Lake Michigan. Basically, the city is dead broke.","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/angry.net\/blog2\/?cat=176"},"img":{"alt_text":"BOHICA","src":"https:\/\/i0.wp.com\/angry.net\/blog2\/wp-content\/uploads\/2014\/11\/BOHICA-300x240.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":7699,"url":"https:\/\/angry.net\/blog2\/?p=7699","url_meta":{"origin":4780,"position":5},"title":"Gov. Jerry Brown: About that $9 billion deficit","author":"Angry Webmaster","date":"May 14, 2012","format":false,"excerpt":"Good day all, and a pleasant mothers day to you all. This story about California\u2019s budget shortfall has been all over the place today. 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