Posts Tagged USPS

Mandate by Congress Forces Post Office Into Default

via: ActivistPost
by:  Brandon Turbeville
Wednesday, August 8, 2012

On Friday, August 3, 2012, the United States Postal Service experienced its first-ever default on a Congressionally-mandated payment of $5.5 billion for the retirement benefits of future employees.

Although USPS is claiming that, for now, the default will have “no material effect” on the operation of the Post Office and that the agency will continue to deliver mail and pay employees, the fact is that this financial quandary has raised new questions regarding just how long the agency will be able to operate.

After all, the USPS is expected to default on the second half of this payment – another $5.6 billion – in September.

Congress is now debating what to do about the default and the question of how or if the USPS will continue to function in the future. FOX News reports that;

While the Senate passed a bill in April that provides an $11 billion cash infusion to help the mail agency avert a default, it would also delay many of the planned postal cuts for another year or two. The House remains stalled over a measure that allows for the aggressive cuts the Postal Service prefers, in large part due to concerns among rural lawmakers over cutbacks in their communities. 

The Postal Service originally sought to close low-revenue post offices in rural areas to save money, but after public opposition it agreed to keep 13,000 open with shorter operating hours. The Postal Service also is delaying the closing of many mail processing centers, originally set to begin this spring. The estimated annual savings of $2.1 billion won’t be realized until the full cuts are completed in late 2014.

Continue Reading At: ActivistPost.com

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Are Postal Workers About To Go Postal On Imminent USPS Benefits Default?

via: ZeroHedge
by: Tyler Durden
July 19, 2012
Tyler Durden's picture

So far the beyond insolvent US Postal Service has been able to avoid outright bankruptcy simply because no major cash outflows were required by the organization. That is about to change in just under two weeks when the USPS is due to make a $5.5 billion payment for retirement accounts. The problem: the USPS does not have the money and needs a bailout. The bigger problem: the USPS needs Congressional action to authorize this latest and so far greatest USPS bailout, however with Congressional recess imminent this won’t happen. So are several hundred thousand postal workers about to go postal once they realize that (earmuffs time for all those who love chanting ideological slogans, but have yet to graduate to the abacus) math matters, and every “welfare-funding” entity in the US is ten times broke over? And maybe most importantly: just how will the postal labor union vote in the upcoming election if indeed they suddenly are denied what they had been lied to for years is rightfully theirs?

Continue Reading At: Zerohedge.com

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USPS workers go on hunger strike

via: RTAmerica
June 27, 2012

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