Senators Propose Changes to Help Rescue the USPS
EmailStressing that the United States Postal Service will run out of money to deliver mail by next summer, a bipartisan group of senators unveiled a proposal to help rescue the postal service.
“We are not crying wolf here,” Sen. Susan Collins, R-Maine, said today. “The postal service literally will not survive unless comprehensive, legislative and administrative reforms are undertaken.”
Along with Collins, Sens. Tom Carper, D-Del., Scott Brown, R-Mass., and Joe Lieberman, I-Conn., revealed their plan, actually a melding of two plans, today at a news conference. It calls for a fundamental restructuring of the postal service, including cost-saving changes that will affect individual and business mailers and USPS employees.
“Too many people rely on the federal postal service for us to sit back and allow it to collapse,” Lieberman said.
He said many Americans still use the service despite a 22 percent drop in volume since 2007 blamed on electronic communication and the economic downturn that has “swept our postal service into a financial death spiral.”
The postal service would receive a repayment of nearly $7 billion from the Office of Personnel Management because of overpayments that the postal service has made to the federal employees retirement system.
The senators call for a reduction of the number of people who work for the post offices – by offering a “compassionate buyout program” for potential retirees that could reduce the number of employees by 100,000 workers, saving $8 billion a year.
The proposal also calls for reducing the number of postal facilities in the country, including post offices and distribution centers, and alters the delivery schedules.
The proposal would prohibit the implementation of a reduction to five-day delivery for the next two years. At that point, five-day delivery could only be implemented if the Postal Regulatory Commission verifies GAO assessment that the postal service has implemented cost-cutting reforms and savings are still not sufficient.
“What we want to do is ensure that slashing or eliminating Saturday service is truly the last resort, not the first option,” Collins said.
The bill also calls for workers compensation and health care savings reforms.
“Without taking controversial steps like these, the postal service simply is not going to make it,” Lieberman said, noting the proposal is sure to generate controversy. “We must act quickly to avoid a postal service collapse.”
The legislation was introduced today and the full Homeland Security and Government Affairs committee will mark it up next Wednesday.
The House of Representatives has consistently opposed the proposed approach, likening it to a bailout. Members are working on their own bill.
“It’s not a bailout. It is the result of a legal analysis that everyone agrees with, that this was, in fact, an overpayment by the postal service and it is entitled to receive that money back,” Lieberman said in defense of the Senate proposal. “This is money they are owed. It is not a bailout.”
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That still won’t do anything about the fact that the PO still delivers junk mail below the cost of handling it!
Posted by: Rick McDaniel | November 2, 2011, 5:40 pm 5:40 pm
Try firing the incompetant employees to cut costs. And pass legislation that allows the firing of these said employees so that they can’t hide behind the union to keep from being fired. In the private sector if you can’t perform your job duties you get fired–so why should a public employee be any different?
Posted by: rightsideofmymind | November 2, 2011, 5:47 pm 5:47 pm
Rightsideofmymind, What incompetent employees are you talking about, do you work for postal service or are you trying to include them in your union bashing campaign? Also, the post office is not federally funded and 7 billion is not close to the amount owed, that’s why the Republicans are proposing this action. They know the truth will come out that they have been taking from USPS funds.
Posted by: focusonjobs1 | November 2, 2011, 6:37 pm 6:37 pm
FOCUSONJOBS1–”What incompetent employees are you talking about, do you work for postal service or are you trying to include them in your union bashing campaign? Also, the post office is not federally funded and 7 billion is not close to the amount owed, that’s why the Republicans are proposing this action. They know the truth will come out that they have been taking from USPS funds.”— I agree with half your statement at least.. You are right that 7 billion is no where near the total overpayment.. the real number is over 40 billion… but beyond that your statement is off the mark… First, its not just Republicans who have taken the money, its congress in general. Both sides of the isle have used teh overpayments in other areas and now don’t seem to want to recoup the service. Above that, the service is now required to PREFUND retirements for all empolyees which is an added burden that no other Gov agency is required to do.. and finally, There are employees who need to be fired, but thanks to a very strong union.. its not going to happen… Roosevelt said the greatest threat to this country would be PUBLIC SECTOR unions and apparently he got that one right…
Posted by: arkie vet | November 3, 2011, 4:14 pm 4:14 pm
Focusonjob1–I’m talking about the mailcarriers that day after day consitantly deliver mail to the wrong address–and I’m not talking about the average mistake of once in awhile. I manage apartment building for a living and the carrier for my building consitantly delivers mail to my residents from another address that is 5 blocks from where we are located. I have spoken with this carrier numerous times and called their supervisor as well. My residents are always complaining of never recieving their mail (i.e. bills, credit card statements, ect.). As well I have the same issue. And yes my creditors have my correct mailing address. We even recieve junk mail from other addresses. But when I speak with the carrier and their supervisor all I get is I’m sorry and we’ll look into it with no results. This has been going on for over 3 years now. How long are my residents expected to deal with this type of incompetance? Especially since the former carrier was always spot on. He even knew the residents names to the point of delivering mail into the right boxes even the addresse had the wrong apartment number on it. This is not a Republican nor a Democrat thing. This purely a public thing. If I showed that much incompetance by allocating the wrong rental amounts to the wrong apartment numbers on a consitant basis as this current mail carrier does I would be out of a job.
Posted by: rightsideofmymind | November 3, 2011, 4:24 pm 4:24 pm
USPS need to eliminate managers, they are making over $160,000 a year. Their are managers aoo over the Postal Service. lower, middle and higher level managers. It’s a shame to have so many managers. They are getting big bonus all of the time. Someone need to investigate this.
Posted by: Christine Carter | November 6, 2011, 9:49 pm 9:49 pm