The Postal Service Is Alarmingly Close To Running Out Of Cash
But the advent of e-mail began eating into their historical profit center - first-class
As Josh Barro has noted, the agency was forced to begin setting aside earnings for retiree benefits, to the tune of $8 billion a year.Since that time, they've operated a total net loss of $41 billion. The
You may recall their proposal from earlier this year to axe Saturday deliveries.
In his remarks today, Donahoe basically called out Congress out for hamstringing the agency's own cost-cutting measures:
To be clear, the Postal Service does not have the authority or the tools to manage these massive obligations without comprehensive postal reform legislation.
Donahoe is now trying to put the agency on Medicare to ease the health benefit payments issue.
He also wants a postal rate increase.
The agency was able to convince 22,800 eligible employees to retire in their fiscal Q2 this year.
"Postal reform legislation is urgently needed. In its absence, continued significant net losses are inevitable," he says.
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