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Postal Service warns it could default

Saturday, August 6, 2011

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The U.S. Postal Service announced Friday that it had racked up a $3.1 billion quarterly loss and that if current trends continue it is likely to default on its payments to the federal government.

According to current revenue estimates, the postal service will be unable to make a $5.5 billion payment to its retirement fund that is due in September. Unless Congress takes action, such as waiving the payment, the postal service says that it will have no choice but to default on its payments.

The USPS announced earlier this year that it will identify nearly 3,700 underutilized post offices for closure and that it will shift its services to local retailers who can serve as branch locations without the expense of having to operate a full postal service, a program that is aimed at maintaining access to the post office in rural areas while at the same time cutting spending. The post office is also considering reducing delivery to 5 from 6 days a week, or perhaps even fewer delivery day.

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  • Captain PJ

    The Postal service cannot compete on an equal level with their competitors (UPS, FEDEX, DHL, etc.) and still expect to make a profit. The only reason they can charge lower rates is because it’s run by the government and run inefficiently.

    I would think with more people paying bills on line and doing other communications via Internet, they should conisider a RIF and services. They should eliminate Saturday deliveries and charge more for stamps as less people use mailing stamps.

    • hecuba

      The Postal Service was / is a necessity to our developing nation – If we wanted the West settled, we needed to ensure communication.

      So – why did the USPS decide to up our postage rates for personal communication ?

      While TV and magazines were charging fantastic rates for advertising, our brilliant USPS gave bulk/cheap rates to those who only clog the system (and my trash can)

      Lack of Focus – Poor decisions – Mismanagement!

    • Mike Irish

      I agree, they need to raise the rate of the BULK MAIL/JUNK MAIL and lower the personal mail rates. This might save a few trees, and would help out the landfills with unwanted mail and extra plastic waste bags that are needed to get rid of the junk mail…. win/win, postal workers would no longer have to sort and deliver tons of it, and the landfills would be able to breath a bit.

    • Russ

      There must be some weeks when my wife receives five or more pounds of catalogs in the mail, 99% of which she never orders from. (But she always says “oh good – catalogs!” when the mail arrives…. I get the bills, she reads the catalogs.) I cannot imagine how it can be cost-effective to have to have all those catalogs printed, lugged all over and delivered to people only to end up in the recycling in a couple days. Who runs that – the government? Postage for this junk ought to be (more) profitable than it is and maybe they would be more judicious in who they send catalogs to. Buy from a place and they will send you catalogs for five years sometimes. Maybe cut that to a year?

    • P.O LetterCarrier

      Wouldn’t work…raise the bulk mailers rates to high and they stop mailing only to have them attached to your front door by some poor scmuck they found living in a cardboard heap and then that person ends up dumping the bulk ads in a dumpster if not supervised. Also that would really take away revenue from the P.O. .44 cents is cheap compaired to every other country in the world including those which have privite service.

    • The Great Ricardo

      Whenever “Junk Mail” arrives with an envelope enclosed, I always stuff that envelope with the “Junk Mail” that I’ve received. It cost’s me nothing to send it back and there’s just a bit of satisfaction knowing that someone else is throwing out “My” junk mail.

    • Sharon Erdely

      My husband just a year and half ago retired he had been with the Postal Service for 22 1/2 years. I don’t know where anyone got the idea that they made $35.00 an hour because if they had my husband would have kept on working. My husband is not under CIVIL SERVICE. They did away with it in 1985. You came in under FHERS
      AND THEY DONATED VERY little to your retirement amount. My husband gets $403.00 a month after they take out taxes, insurances, and I don’t know about you but that is not a hell of a lot money. If they were to go under my husband would have no life insurance (which they take out of his pay) no health insurance (which also comes out of his meager amount.) Postal Service Management is wasteful, get paid way too much money. They send trucks out to be painted (which they did in house at one time) someone got the bright idea it would be cheaper. Not. They also decided they could save money by having a private towing company tow their vehicles to the shop. Before that the mechanic would go out with a truck to bring the vehicle back or if they found something minor they would repair it right there. We moved from Ohio because I couldn’t stand the thought of my husband trying to get out in the freezing cold to see if the truck was fixable before bringing it in. I cannot let my husband know this until he has too because I believe he would have a breakdown, especially since Obama, Reid, Peloski feel that we don’t deserve our entitlements. Obama wants everyone of us out on the streets with no homes and no place to go. Think about all the crap he has done. Sent Hiliary Clinton to South America to make an arms treaty (without the consent or knowledge of anyone) We are basically under the control of NATO, United Arab Emeret, Obama has appointed people to the bench that has is SOCIALIST ideas. So Americans need to get him and his cronies out before 2012. Ir may be too late by then.

    • Idarae

      It’s not the Postal Workers Obama is against he is against EVERY AMERICAN,He is an “outsider” who got his hateful claws into a country that ALL other countries hate & are jealous of and he is out to destroy us.the sick ones are those that will continue to back him they feel that Obama will give them something,like the Unions that Obama will use to further his goal, then cast them aside while the greatest people in the world, the American people will suffer,This country could be saved and go on to be fruitful,if EVERYONE will stand together AGAINST Obama and what he is doing, only there are tomany who are “greedy” and look at thier own gains.

    • Claudine Selden

      There are millions of people, like myself, that still mail their payments for bill paying. It would be so sad to close our P.O’s because of a retirement fund. Maybe the gov’t should operate like mom and pop businesses that give people good paying jobs but let them save for their own retirement or how about letting them pay in on Social Security and let that be the pay. Social Security would be Okay if the gov’t hadn’t kept robbing the trust fund that shouldn’t have ever been touched. Some things are surely out of kilter because the gov’t hasn’t run their facitilities as a business would be expected to.

    • Stephen Tanner

      RIF (Reduction In Force). Absolutely. When a Government entitity is either no longer required of should be pared down to meet current requirements, you immediately institute RIF.

      This isn’t a new concept, nor a new policy, We saw the same thing in 1975 in the Armed Forces. I was there, and experienced it.

      It was a good idea then, and it’s a good and necessary idea today.

      Steve Tanner

      CW-2 USRA (Inactive)

    • Carol

      For sure the post office is obsolete. Bill paying on line, on-line bills to your bank account, AND better service from private deliveries. Cut back the Days of Delivery, Stop subsidizing Junk Mail and Magazines and/or charge something significant for delivering a letter…..
      AND insist that the union not have an ad saying the post office doesn’t run on the tax payers dollars. Oh, right!!!

    • Ltjg

      Dear Captain, Correct… The Largest competitors of all….Emails & Faxes. Most people are turning to the Internet. Much Faster, hardly any expense.

    • Nonne

      … until Obama finds a way to put a surcharge on each e-mail sent!

    • Whackajig

      Privatize the USPS and it just might solve the problems we now experience. It would do a great deal towards reducing the size of government and foster capitaism.

    • brent

      Yes you are correct Privitize it and you can bet it will be open longer in order to accomodate those who need to use it. Instead of those employees who want only to get a govt check. The biggest waste is a system that can not or will not accomodate those who need to use it (the working man and woman).

    • Mr Jack

      I’m waiting in line at the post office. There are two employees working and about 25 people in line. So one of them goes on break leaving us standing in line. I just wanted stamps. They used to have an automated stamp machine but took it out. Why? I guess it made too much sense. Needless to say I got out of line and bought my stamps at the grocery store.

    • http:/ GE

      The irony is that the Postal Service is not allowed under law to make a profit. They are required to break even. When a rate change is requested to raise or even to lower the rate, it most be submitted to a Rate Commission established by Congress and the Administration for approval. It takes three to six months for the Commission to issue their decision. The commission in all their wisdom asks for opinions from FedX and UPS, etc. Can you imagine FedX asking permission to change their rates and depending on opinions from UPS to influence the decsion and waiting as long?

      There is a lot wrong with the USPS but since 1972 when President Nixon created the Quasi-government agency, they survived on revenue from the sale of stamps to fund mail service even with the handicape of government intervention.

      Twice during the 1980s the Government took $100 of million dollars from the USPS to fund Social Security deficits. Then the Government in search of additional revenue without raising taxes changed the law creating the USPS and required the USPS to pay into the federal retirement program. But the USPS was not allowed to increase the rate to pay this added business cost.

      The problem as I see it is somewhere around 700,000 union employees that are not needed anymore, given the drop in mail volume. The Postal Service has to carry them on the payrolls which equates to a higher cost to deliver mail than is necessary.

      The post office closings and reduced delivery days is aimed at reducing labor cost; but, unfortunately,the labor cost remains. In the end reducing the employee compliment is needed. Will Congress and the Administration permit the USPS to layoff Union employees? I doubt it. So, I think it is fair to ask the Congress to pick up the cost of the union employees. After all the government did bail out GM and Chrysler and the Banks and Fanny Mae, Freddie Max. So, even private companies needed government intervention. These things are never black and white.

      For more than 40 years, the Postal Service has not taken federal tax money and has not been a burden to tax payers. I for one would not like to see it become part of the government tax funded agencies.

    • E5HMFIC

      The Postal Service is just like DC; a haven for incompetents.. Think about this – the next time you get a piece of mail from your bank or the like, look at the postage. It will be 25% less than what you pay. Junk mail – it is (at least) half of what you pay. Mail from Non profits – it is about 80% less than what you pay.
      On First Class, why should the USPS discount to places like banks, etc. Where else will these people go ?? Duh !!! On the others; why such ridiculous discounts ??
      I live in SW Utah where the much pushed and publicized Priority Mail is 3-5 days IN OR OUT. Express Mail is 3-5 days IN OR OUT.

      If I were to mail something to my neighbor, it would take at least 2 days to get to them. Why ?? Because ALL THE MAIL IS TRUCKED TO SALT LAKE CITY (330 miles) to be cancelled and then returned. 660 miles to cancel a letter when you could have some idiot who just wanders around the Post Office doing ??? do it . After all, how hard is it to use a hand stamp.
      Also notice all the tears, etc. that the POST OFFICE WON’T BE ABLE TO FUND ALL THE SLUGS’ RETIREMENT. Soesn’t bemoan ANYTHING else – just retirements !!!!! So, the population has to “pay” by losing services.

    • CarolTex

      I agree with you totally. I have been angered many times by the fact that many of the “workers” at the post office just hang out in the back, shucking & jiving, while out front the lines stretch out the door because there are only one or two windows open to handle the customers. I avoid going to the post office if at all possible, because it is so irritating and time consuming to try to get waited on in a reasonable length of time. The post office could rid itself of about 1/3 or 1/2 of its people (they aren’t doing anything anyway).

    • P.O LetterCarrier

      The workers hangin out back are not going to be window clerks. Only they are trained to work the window. If you are at the P.O. in the afternoon or morning then what you hear or see is carriers getting ready to leave or have returned from the street and are about to go home for the day. Or maybe distribution clerks working box mail…

    • P.O LetterCarrier

      You don’t have a clue!!! Very little mail is hand stamped anymore and only that which is the wrong type to go through the automated equipment. Express mail is over night unless you live in an area which is to remote to get it there in 24 hrs. or you get a refund…that means your money back. Priority is 2-3 days unless…same thing you are in a remote area meaning to far away from an airport; however you don’t get a refund on that. On my route I see the dates on Priority and they are almost always within the 3 day time limit.

    • http://aol A. Schneider

      They should eliminate Saturday deliveries AND
      also deliveries for additional day AND then cut their workforce substantially. Their huge deficit will then surely decline.

      For a fact many people now communicate by email and pay their bills via the net. No longer any need for a full service 6 day postal delivery service.

    • Randy G

      Actually they need to get rid of the deadwood at the top. As my father used to say they have too many supervisors doing nothing( & collecting money for it) & the POST OFFICE is privately owned not govt. operated for years.

    • http://n/a Ron

      I worked for the USPS in an unamed place in California. I did not want to stay for two reasons, low pay and the group that I had to work with. I had five demands, for my services,in a small city with five post office branches. The supervisors hated to see me go, I ws their best worker, and they tried to keep me through giving me easier jobs, while the crews asked why I was getting better jobs, and they still stayed in while they wasted a lot of time complaining and doing a true 50% of their appointed, while I was the last on in from collecting the mail each night, I collected from every box and the rest of them collected 50% of their pick-up boxes on the other half of their working day, the other half, sitting in Winchell’s Dnut Shops. Do I feel sorry for the USPS? No, their supervisors should be out observing what their carriers are really doing.

    • pearl

      How about ending USPS and letting private enterprise fill the gap? As I recall Fedex had experimented with local mail delivery in the 80’s with great success – until USPS was given a monopoly by the SCOTUS with the preposterous ruling that the mailbox on each privately owned home, paid for and maintained by the owner, is the exclusive property of the Federal gov’t!

    • Buddamacuddis

      totally agree. They played their place in history and with the help of the Government and Unions have priced themselves out of the market place. Let them fold and let the private sector take over..

    • RL Jones

      Wonder what bulk rates would be if we consumers were not subsidizing the enormous influx of trash mail to our mailboxes each day. Think about it. How much of your mail ends up in the circular file without ever having been read. If rates were correct, there would be fewer advertisements, less mail to be carried and fewer people necessary to move it.

    • Sharon Erdely

      DHL has been out of business for quite a while.

    • El Lobo Solo

      @ Captain:
      Perhaps Obama could use his middle-east connections & obtain some Magic Carpets to transport our mail.

  • PD

    It looks to me like our entire Government structure is defaulting?Great job from our foreign president.2012

    • Carol

      I think we are over whelmed with departments that don’t make sense. For instance, Why when we have local School boards to govern our schools, do we need a Department of Education. I understand that Reagan thought it should be eliminated. Also, United States Weather Bureau, could be eliminated, since they don’t tell us what the weather is anyway. Also, do the right thing and cut the budgets by one cent per dollar. That would probably do it. I have worked (?) for the US government and its not getting the work load from the workers that it should, and their are too many chief and not enough indians. Sorry Native Americans…

  • Steven F

    Just CLOSE the USPS and allow UPS, FedEx, etc to fill what is left of their role.

    Before someone claims the US Constitution requires the existence of the post office, Article 1, Section 8, clause 7 states that Congress shall have the power to establish post offices and postal roads. It DOES NOT actually require Congress to exercise that power.

    • Johnnygard

      When was the last time UPS or FEDEX delivered ANYTHING for 44c? Or for $1? The USPS is required to go to (or past) every deliverable address six days a week. Fedex goes to what? One out of 100? PO is not allowed to give a lower bid price on big jobs (like delivering priority packages for the Defense Dept), they have to quote the same prices you and I get for one package. So Fedex knows what the USPS bid will be and just bids a nickle less to get the contract. We just need to let/require the USPS to be run like a private business. Rates will go up, but no more than turning it over to another company. USPS already has all the buildings and vehicles that a different company would have to acquire. Lots of changes needed of course: close many of the offices, five day delivery (or three day – M W F in one area and Tue Thur Sat. in another area) , restructure union contracts, and other things that the Postal Commission won’t allow now. The Postal Commission is not part of the USPS, but they get to make a lot of the rules.

    • Captain PJ

      The reaspn why USPS can deliver personal mail for .44 is because they’e operating at a loss. Their business model is actually designed to operate at a loss–which is remarkable. The notion is they get their operating funds from the government and whatever they bring in by Postal charges is designed to minimally offset the loss.

    • P.O LetterCarrier

      At one time you would have been correct; but you are wrong now because the P.O is no longer suppose to operate at a loss after the P.O. was reorganized many years ago. They no longer recieve any tax dollars and are suppose to be a self supporting Gov’t entity. It is the Bureaucrats’ that kept skimming profits that has caused part of the problem today

    • Mike

      Captain…..are you really that stupid? The Postal Service has gotten no money from the US Government since 1972….gets no tax dollars, and are self sufficient. The reason they are currently in the hole is because in 2006 Bushes cronies wanted to privatize the USPS but couldn’t because they couldn’t write a law to do it that would pass the House and the Senate so they did the next best thing….create a law that they knew would bankrupt the Postal Service under the guise of “Postal Reform” In a nutshell the Postal service is required to prepay its’ employees health and retirement benefits at 100%….that means they have to create a pool of money that will pay retirement(pensions) and retirement health benefits for every current employee based on their current life expectancy. So, someone hired today would have their pension and health benefits paid for today even though they won’t be eligible to receive them for 30-35 years. This has created an obligation of over 6 billion dollars a year….and is completely unnecessary. You tell what private company does this and what other federal agency does this and the answer is: not a one….in fact if this payment had not been made the Postal Service would have made a profit every year since 2006 except for 2009 which was the worst year of the worst recession since the Great Depression. Wouldn’t it be nice you morons actually checked out some facts before taking some other idiots word for something?

    • P.O LetterCarrier

      Dropping Sat. delivery might help; but only if the Central Processing Unit also stops work on Sat. otherwise it would take 2-3 days for all of the mail that comes through over those closed days just to get caught up on delivery. Knowing the P.O as I do the powers that be would overload the carriers on Monday as to cause tremendous amounts of overtime payments. You can forget closing 2 or more days a week. Closing on Sat won’t fix the problem; but it is the only day that closing would have the least impact on customers especially business customers.

    • E5HMFIC

      I use FedEx to get things out of my area. It does cost more BUT I KNOW IT WILL GET THERE AND IT WILL GET THERE WHEN I NEED IT THERE !!!!

    • Ralphy

      I also use UPS or FedEx over USPS any time I have the chance. USPS has routinely given my expensive online orders to someone other than me. Over the past 5 years, I can count about 10 times and over $1000.00 that they gave to others when I paid for them. I eventually get the package when the recipient comes to their honest senses, but in the meantime, I do without. One time the post office accused me of stealing my own mail and trying to collect insurance money on it. That item was $400 in value purchased off of eBay. The lady that got my items finally returned them when her granddaughter said to her that it was dishonest to keep them. Yes, I prefer UPS and FedEx over USPS any time I get the opportunity. USPS sucks. They should be out of business – just like Obowa.

    • Buddamacuddis

      Same here….Last time I had to go to the post office to retrieve a letter as we weren’t home whey they delivered it, it took me an hour standing in line just to watch the incompetence. It just sent me up the wall… And these idiots collect large salaries along with total retirement and worse yet, they vote

    • P.O LetterCarrier

      The USPS gives universal service to every address and that in itself is not profitable. If UPS, FEDEX, etc…were to take over do you think they would deliver to an unprofitable market? NO they are in the business to make money the post office isn’t it is in the business to give a service delivering mail, packages etc… to everyone no matter where that might be. The real problem is Congress when they passed the law that the USPS was required to prepay future retired employees health benefits out 75 yrs within 10 yrs is the problem. When they passed this dumb law the P.O was showing more of a profit; but now since the downturn with the housing, bank etc… debacle the P.O simply cannot continue to make those huge prepayments and Congress will not budge on the issue nor will they pay back the excess money paid into the original health fund for employees who were working under the old Civil Service retirement which has changed to the Federal Employees’ Retirement System. Upper management is also a factor as they have always tried to put the cart before the horse on nearly every plan they implement. Lower ranking management those who deal with the rank and file workers constantly break the contract and tell them to file if they don’t like it and so the P.O pays out through those grievances. A lot of people hate the unions and I have some problems with mine; but the NALC does have ideas to help save all of our jobs only management won’t listen.

  • Bill Melanson

    Well, they would be worse off if they did what they say they can do. Had a package sent to me (supposed to be the next day) and the sender paid an extra $20.00 to do this. Three days later it shows up (which would be normal time for this package). They have several answers as to why this happened, but no refund of and $$$. They ought to be richer than UPS, FedEX, DHL etc. all put together. If this was a one time thing, I could understand the mistake. But it has happened to many times before. Been there done that.

  • Fred

    No, it’s time to recognize that the Post Office is no longer the necessity it may have been. Privatize it. Drop the restriction against private carriers carrying mail, allow any carrier to put things in your mailbox (UPS can’t put anything in your mailbox legally) and let the market create a system for the 21st century. The one that may have worked in the 18th, 19th and part of the 20th belongs in the dustbin of history.

  • Dave Langdon

    The post office has been dead in the water for years , they have been talking about eliminating Sat service for five years …. How long does it take something to get done? I have afriend that works for FedEx and he ships parts over e-bay not through FedEx because even with his employee discount the Post Office is cheaper and then they give the items he sends to Fed Ex to deliver. Who is keeping the books. Every level of Govt needs to be overhauled and amany jobs will be lost and that is not so bad as most of these people have not been doing anything anyway

    • Mike

      Your friend has it backwards….the Postal Service delivers some of FedEx and UPS packages because they don’t have the network infrastructure of the Postal Service who can deliver the packages cheaper and more efficiently. The Postal Service does not hand of packages to FedEx for delivery!

    • Mike Irish

      shipping via u.s. postal for most of my things, has been less expensive then fedex and ups. one item was almost 1/2 the price that fedex and ups wanted to charge, so, USPS got it. yes, took a few days longer, but there was no hurry on the item.

    • Sharon Erdely

      The U.S. Postal Service has to deliver mail to places that others would definetly not service. Who else would go into crime areas or way out in the boonies mail. Even junk mail.

    • ObamaIsYourMama

      Wrong, FedEx contracts Postal Service for some of it’s rural deliveries, but UPS does not.

    • Whackajig

      Keep shipping packages thru the USPS if you want them to arrive smashed and broken.

    • Mike Irish

      learn how to pack your item, and it won’t get broken. I have shipped glass items, the old style VCR’s and many many other things through the U.S.P.S. system and have had NOTHING BROKEN.

    • Ralphy

      You were/are lucky. Watch them play basketball or baseball with the small packages. Doesn’t matter how well packed they are – where there is a will, there is a way.

    • P.O LetterCarrier

      It would help if mailers would pack their items properly! I had one person get totally outraged that her sister mailed her a wedding cake in a box from across the country and it didn’t make the trip, duh…or another that was surprised that the glass in a photo frame was broken…they had put it in a large envelope and expected it to make it. Good greif people be smart about it!! As letter carriers we try to do the best job we can at getting the mail to you in good condition.

    • Sharon Erdely

      Okay, we’ve been had again. Obama slipped a bill in with the budget compromise (joke) and will be charging taxes on Internet Sales. Isn’t that lovely.

  • Roy Hagen

    Let the USPS go under and go away. We are just throwing money down a black hole. The future is the Internet. They made their bed and now they must lay in it!

  • Patti Patriot

    Another union doing what it does best… bullying and issuing threats!

  • Fedup

    They wouldn’t default and SS, Medicare and Medicade would be fine if Obobo wasn’t wasteing the money, and sending it to the radicals, and others, overseas.

  • ARMYOF69

    Shut it down and let private business take over the service. I hate standing in line in dirty rooms, with bullet proofed windows to protect the USPS workers but NOT us the paying public.

    • Johnnygard

      You sure live in the wrong place.

    • Whackajig

      What? He lives in the USA, where do you live?

      Shitty service at high prices is the trademark of the post office.

    • ARMYOF69

      It’s Southern California. An area full of gangsters, and millions of illegal aliens. WHAT, you’ve never heard of this. Where DO YOU live, overseas?

    • ARMYOF69

      Sorry Whackajig ,it was meant for Johnnygard.

  • jim

    Most small post offices are run efficiently and do an out standing job. Been there seen that! Get to the bid city ports (distribution centers and you might find five out of twenty people working during the daily rush. Almost all has been automated now but the Unions won’t allow any lay offs then you have those that have retired at 1 & 1/2 reg. pay plus the council mens/congress persons 3rd.cousin on payroll in spite of all the equipment he’s damaged and THEN isn’t the postal department supposed to be a private enterprise and only protected by the Gov.?

    • P.O LetterCarrier

      This is not true Jim. Yes they are no lay off clauses in contracts at least in the carriers contract; however that only applies to those carriers who have been vested and I beleive that takes 8 yrs. alot of the plant jobs have been automated and those people were either sent to other jobs or were retired and not replaced. And not one single rank and file employee gets “1 & 1/2 reg. pay” in retirement pay. And as far as “… the council mens/congress persons 3rd.cousin on payroll in spite of all the equipment he’s damaged…” That applies to just about anywhere you go. You just don’t know what your talking about!

    • Mike

      who retires from the Post Office at 1.5 times their regular pay??? NO ONE!

    • Robert

      A lot of miss information going on here folks. The reasons the post office is in financial trouble are many. Here are some of them. (1) The down turn in the economy. (2) The Post Office is required to pre-fund CSRS and FERS retirements at a rate much higher than is necessary. (3) They are also required to pre-fund future health care costs for retires at a rate higher than necessary. (4) Being a government organization, there are so many unnecessary regulations that have to be complied with that too many managers/supervisors are required to administer the program. Plus, there are too many supervisors doing nothing but trying to trip up its employees so they can fire them; a very wasteful activity. In other words, they could slash people at the top and save billions. Macro management is not necessary to deliver mail because most employees do the job without the present harassment policies. (5) Management is handing out bonuses to each other that are not necessary for a government run activity. (6) Many people in the USPS headquarters are being paid salaries too high for what they do and many of them retire and are rehired as consultants. See the previous Post Master General, John Potter. These are just a few of the reasons the Post Office might default to the Federal government, but cutting delivery days is not the answer.

  • James Fontana

    .Either privatize the USPS or sell it to UPS or FedX or split it among them. Close down low volume offices, sell the buildings, equipment, vehicles and lay off the workers. Those with seniority move to a bigger office laying off those there with less seniority. By selling to UPS and or FedX outrageous pension plans could be eliminated. I’m sure the private company would untangle the mess because they are in the business to make a (dirty word coming) profit

  • scott moore

    Maybe the post office can default on its loan from the US government who thinks it owns it. And if we (the people) own it, who is going to pay us back?

    • P.O LetterCarrier

      The P.O is not defaulting on a loan from the Gov’t! People this is the ranting of the media. The P.O. if it defaults is by not being able to make a $5 billion annual payment into a Congress mandated prepayment on future retiree health benefits which go out 75 yrs.

  • http://Google don

    The |Postal service has too many employees. Put the first class office postmasters to work. They sit in their offices and do nothing but oversee. It is the clerks that do all their work. If they would put the PM to work doing one of the clerks jobs, that would cut a lot of work force over the country to pay. I worked as Postmaster in a Third class office for 30 yrs, and did all the work in the office except on Sat. and vacation days. It is time some of the UPPER Regional Management was put to work. Too many idle hands on pay. Lots of waste could be cut in the National Postal Service offices. We retirees worked hard for that retirement, and don’t get Social Security checks. Now the Postal Service employees do pay into SS, and do have a lot of the USPS and FedEx Pkgs to deliver. Don’t complain about the”junk” mail. That is what pays the way. It keeps the Post Offices open. I don’t like the junk, but if it pays the way, I will put up with it.

    • P.O LetterCarrier

      Don, I pretty much agree with you except that we don’t have enough of the employees that do the leg work such as carriers & clerks. On the other hand there are way too many upper level people who get paid big bucks to do nothing more that to stand around with the evil eye and watch arms cross or hiding out on the street watching the carriers making sure they aren’t taking that extra 60 seconds on the lunch break or parking their trucks under a shade tree in the blazing hot sun when the “offical” park point is 20 feet away. Find something more constuctive for these folks to do.

  • ObamaIsYourMama

    The Postal Service lost $8 Billion Dollars last year, and THEY HAVE A MONOPLOY. How can you have a monopoly and lose $8,000,000,000? This is why we need to shrink the size of our Federal Government IMMEDIATELY. They can’t run ANYTHING efficiently. Hand it over to private enterprise, TODAY.

  • Sue

    Get the Unions out of the post office and discover how well it could operate.

    • Buddamacuddis

      Get the Unions out of everything. I’ve never ever had respect for a man that can’t stand on his own two legs and negotiate his own deal. Anything else is nothing but a coward and a leach…

  • raygun

    Who needs the USPS anyway? They are still like the “Pony Express”. Remember them? Mid to late 1800s. As far as I am concerned, they can default. That would send a message to their unions.

  • DSW

    After the first bailout, I looked and sounded like an absolute nut when I said, ‘Hide an’ watch! They suck so bad in so many ways (am I the only one that lived in CA, GA & WI and EVERY SINGLE Post Office was slow-as-snails in the Customer Service line?) it won’t be too long before they’re asking for a bailout!’ I knew what was coming when I saw a commercial 2 weeks ago, put out by the post office that flat-out lied. It stated that they don’t get government money and that their revenue is ‘earned’ by patrons buying stamps and other goods/services. REALLY? Then why do they owe the Treasury department in excess of 1.7B for the unpaid liability of workers’ pensions and benefits? And then when one of the Congressmen demanded that they cease and desist in running the false advertising, at first they refused, but I haven’t seen that ad in over a week? Something is definitely rotten and it ain’t in Denmark, that’s for sure. Hang on to your hats, Ladies an’ Gentlemen! We’re gonna get screwed again!

    • P.O LetterCarrier

      Once again more media hype and comments by those who really do not know what is the truth! They NEVER got a bailout! The P.O asked Congress to allow them to forgo a prepayment on future benefits and the media ran with this saying that the P.O was asking for a bailout…the P.O is the only agency required to prefund out 75 yrs. and if Congress would allow the P.O to defer payments until it can gain some high ground it would help. We have our detractors and they waste no time in attacking us through the media knowing that John Q. public beleives nearly all that it reads or sees on the news. The P.O has not recieved a bailout!

  • LadyLiberty

    We all should have a PO Box. Why can’t we all pick up our own mail at assigned post office’s. Let the Post Office add more Boxes to accommodate all the residents in each town. We wouldn’t need all the employees, mail trucks, and plus save on gasoline that service the residents; saving a lot of money.

    This has been an expensive service and which time has come to an end. This is much better than closing them down. You would only need inside people. The plus-side would be a lot of union workers will lose their UNION jobs.

    Maybe small business entrepreneurs can establish or offer to pick up the people’s mail and deliver it to them for a monthly fee. It could create more jobs…and benefit the people that don’t have time or want to pickup the mail at the PO.

    • Ralphy

      I posted above – I have a P.O. Box and they still do not deliver my mail as they should. I just mentioned packages they mishandle. I cannot begin to tell you the numbers of letter size mail they put in my box that do not belong to me, or they have put in other’s boxes that do belong to me! I know that because the P.O. Box is circled with words like “put in wrong box” written on the envelope. They should privatize! NOW! Git er done!

  • George E. Newman

    One can not help but wonder if they over invested in those Muslim stamps they were so proud of and tried to push on customers during the Christmas Season.

    • Sharon Erdely

      Not on me. I would never buy one and the number of radical Muslims in the United States is getting scarey. They are pushing this Shariah Law and believe me you don’t want it our country. They can kill you if you insult them, if you steal they feel they have the right to cut off something from your body. People that are not Muslims could be killed for any reason. Have you heard all the horror stories out of the Middle East about what they do to women. As far as I’m concerned I’d rather be dead.

    • Mike

      Sharon… must be f’ing brain dead to actually believe that garbage! Glen Beck must be you best friend!

    • Robert

      Mike, you are definitely a Democrat and a very liberal one at that. Get off Sharon’s case and stop your vendeta against Glenn Beck and conservatives. Look at how Obama and the Democrat Party has screwed up our economy. They are preventing any good laws from being passed by their stonewalling in the Senate and Obama threatening to veto any bill that is not favorable to the left-wing philosophy of tax and spend and soak the rich. Throw away those rose colored glasses and realize your “hope and change” guy has messed up our country and has it headed toward socialism (a failed system).

  • Jane

    No more bailouts for USPS, Freddie and Fannie Mac!

  • Raymond

    Another failed government run program.

    • Mike

      Another pile of BS tossed out by Raymond

  • J. Carden

    When you start talking of closing the Postal Service or of selling it to UPS and FedEx,
    don’t forget to check with the US Troops
    in harms way overseas. Our own government
    and US Military Services depend on the US Mail. Even the President and Congressmen
    anticipate the arrival of their mail on a
    daily basis.

    Let’s don’t do anything rash……..

    I worked 42 years for the Postal Service,
    25 of those at a military base during Viet
    Nam and I know what the US Mail means to all
    of our troops.

    The downfall of such an institution is SAD!

  • nvrpc

    Well I say let it afll. No more taxes for fundng for any reason. It is time to cut taxes, get rid of the IRS and put in a new system that’ll work.

    10% Flat Tax = 2% State & 8% Federal = Immediate Abolishment of the IRS

    It’s time for a revolution American’s and to put and end to the Socialist Democratic Party once and forever. Here’s how.

    Abolish the IRS immediately and all of its tax laws

    Establish a flat 10% tax, that’s automatically to be withdrawn from each employees paycheck. This tax will cover an individuals state and federal obligation for the years with no 1040 to be filed, ever. There is to be no other tax of any kind or for any reason other than this 5% state and 5% federal and its to be frozen at 10% for eternity.

    If the United States of America cannot run it’s government on 10% of everyone’s income then shut down all none essential programs and keep only those that the 10% fix income with no borrowing can sustain and support.

    There is no need for the government to take more than 10% of everyone’s income per year, especially in a cashless society and there’s surely no need for a government bureaucracy that’s allowed to run amuck, only to enslave the people by controlling their livelihood via taxation, which is directly relational to the class one can become part of.

    The liberals left wing socialist democrats of this nation are out of control and they need to be stopped by any means you deem necessary.

    Only YOU the tax paying people of America can stop this insanity of being taxed into poverty to support the parasite of this world. If you have no balls to bring the IRS down then just change your name to ( Johnny Me Bendover ) and smile

    Look at this video and if you’re not pissed and ready to revolt you’re not an American Cut All Funding Now

    It’s time for a 10% flat-tax and that’s all the government will ever get and all one will ever have to pay.

  • OMAR


    • nvrpc

      May Obama aught to leave the white house, give up his $300K a year job and lifetime secret service so no one can dust his shorts even though that would be doing the country a favor.

  • Larry

    It does sound as though the new word of the year is (Default) now the post office is using it and threatening a default so they must figure that it will work for them to extort money from We the People for another big raise in postage rates. But jest watch and see how many of the Upper Management buy another home or have a new home built once they get another excessive rate increase.

  • Neil

    I have to laugh at these comments… it’s no wonder the country is in the shape it is in with the mass of ignorance that abounds. People, the Post Office hasn’t lost a dime! You have to realize they have been overpaying pension benefits for decades!! Anywhere from $70 billion to $140 billion!! Tell the Government to give it back!! The constitution establishes the post office. Why? Maybe because our founding fathers knew how important communication is to a Republic. I know, let’s just get rid of the Constitution because its old and whoreads it anyway? Anyone who thinks FedEx or UPS can even handlethe volume, has no idea what they are talking about, and should refrain from saying anything due to their ignorance on the issue.

  • johnf1234

    The quickest and simplist and easiest way to change the Postal Service is to PRIVATIZE it…
    and many other small carriers can do it and survive, WHY CAN’T THE US POSTAL SEERVICE DO IT TO??????
    PRIVATIZE THE POSTAL SERVICE…. no excuses for it.

  • ex postal

    I worked for the P.O. for my career. Management is more interested in pushing, bullying, harassing the employees instead of finding constructive ways to deal with their financial issues. Ask any worker how they are treated. It sure makes for constant bad morale although most of the people still do their job well. The carriers especially are working very hard as more deliveries were added to their routes as cuts were made. Most of the public is unaware of this.

  • nvrpc

    Just in case you guys don’t have all these clown e-mail addreses:

  • Gwendolyn

    Personally, I’m very tired of having to deliver mail to my neighbors that was put into my box, and trying to rund down who got my mail for the day. These employees seem to have a dyslexic problem when it comes to community mail boxes. I wonder how bad it is in other neighborhoods!

    • Steven

      I doubt that half of the letter carriers can read english…..I always get someone elses mail….

    • Mike

      Golly gee Steven…..I am a letter carrier and I’ll bet I can do anything better than you. I have degrees in Economics and Business Management and despite that there are times that I make mistakes when delivering my route. I guess you are one of the few people who never make mistakes and if that is the case I applaud you. If not…..shut the hell up until you can prove that you can do a better job!

  • stephen russell

    Be neat to get stamps, etc at Office Depot, Office Max, Staples, Costco?, CVS, Rite Aid, Vons, Ralphs, Ross, Malls, UPS/Fed Ex stores alone, Be awesome.
    Thanks to the Postal Unions.

    & reuse those closed post offices for:
    Voc Ed Centers.
    Auto Services
    IT Services
    resturant, coffee shop Indie owned.
    franchise, chain store?
    dealership, distrib alone
    dep on post office closed, acerage for.
    Thanks USPS.

  • Raymond

    Following are some of the stated goals of the ACLU, from its own published Policy Issues:

    ❊ the legalization of prostitution (Policy 211);
    ❊ the defense of all pornography, including CHILD PORN, as “free speech” (Policy 4);
    ❊ the decriminalization and legalization of all drugs (Policy 210);
    ❊ the promotion of homosexuality (Policy 264);
    ❊ the opposition of rating of music and movies (Policy 18);
    ❊ opposition against parental consent of minors seeking abortion (Policy 262);
    ❊ opposition of informed consent preceding abortion procedures (Policy 263);
    ❊ opposition of spousal consent preceding abortion (Policy 262);
    ❊ opposition of parental choice in children’s education (Policy 80)

    • Mike

      Once again we have Raymond blathering on about mindless BS! Next you’ll be telling us about how wrong Sharia law is!

  • Steven

    Get rid of the post office….employees are over paid, under worked, and get too many paid holidays…it has always lost money… private companies make money and anything run by the government always looses money…time to cut the fat….!!!!

    • Mike

      Steven….you are ill informed and ignorant!

  • Steven

    The government announced today that it is changing its emblem from a BALD EGALE to a CONDOM, because it more accurately reflects the government’s political stance. A condom allows for inflation, halts production, destroys the next generation, protects a bunch of pricks and gives you a sense of security while you’re being screwed. It just doesn’t get any more accurate than that!

  • Jon Dee

    Can you possibly imagine the Centuries Olde UNITED STATES POSTAL SERVICE ceaseing to exist because of a default?
    If I’m not mistaken there are in excess of 220,000 employees at the USPS; each one has a rate of pay and job security seldom matched by anything in the private sector.
    Who is going to pay the Hopitilization and retirement bennies that these folks are going to look for (just like the recent Teachers Union Bruehaha)?
    Poor management in the private sector results in bankruptcy (same as defaulting;
    should there be a different standard for the Post Office?
    If we are to be successful as a Nation in the 21st Century we must be successful in our Business ventures be it Private entity or a Federal Monolith like the USPS.
    FedEx,UPS and similar outfits would jump at the chance to expand their established base of operations both domestic and foreign.
    Im afraid that the United States Post Office
    will not go quietly into the gathering gloom, but all things must come to an end.
    We need to have vital,vibrant profit driven entreprenuers to do what the “Fortress Anachranism Postal Service” has found it impossible to do ib over 200 years on the job.
    Free up those 220,000 Government Employees to pursue private sector jobs and help our hapless Government reduce it’s presence in real world of competitive enterprise.
    Consider for a moment the abyssmal record of success that any US Government Agency has to it’s credit…start with AMTRAC.
    Much smaller government will be the key to success for us in the 21st Century.
    Jon Dee

    • Mike

      Jon….if you had done any research at all you would have found that UPS and FedEx employees in similar positions make MORE than their counterparts in the Postal Service. Of course you must get your “news” from the likes of Fox, Rush and Beck. Instead of blindly accepting their “facts” perhaps you should do a bit of your own research and see what is really going on!

    • Mike

      and by the way the USPS doesn’t have 220,000 employees….they have 596,000 which is down from over 700,000 3 years ago. I don’t hear you complaining about the 1 million + employees that Walmart has on staff!

    • ExArmyMP

      Taxpayers do not have to pay for Wal-Mart’s employees. The U.S. does not have to borrow money from China to subsidize Wal-Mart. Unfortunately, the USPS has become nothing more than a non-competitive jobs program for its unionized employees.

    • Robert

      Mike, it is not the likes of Rush and FOX news who miss lead our country. It is the lame stream media such as New York Time, ABC, CBS, NBC, NPR, and CNN. They are nothing less than the mouth piece for Obama and the Democrat Party. Get your facts right next time.

  • http://qwest David in Mesa

    Some years ago USPS badly needed a rate increase and of course they got it – then promptly spent $$$$$$$$$$ changing their LOGO I am sure this improved the service or helped some paint shop and printing shop make a bunch. Remember no Gov run anything is efficient or frugile.

  • http://qwest David in Mesa

    One rate increase of a few years ago went to redo the LOGO I heard 1Mil

  • PattyAnn

    Raymond… love your info and funny stories..!!! If you don’t mind, please add me to your contacts to send them to me.. love reading them! —

  • Ron Alford

    The union has ruined the us postal service just like the auto industry and so many other organizations. Before I retired many years ago from civil service, the post office letter carriers started off at a couple a dollars an hour more than a skilled mechanic with many years of experience at step 5, which is the top step except for annual raises. And, we paid 50% of our health benefits and the government paid the other half. But, the government pays 95% of their health benefits and I’m sure their other benefits and retirement package is just as sweet. And, they wonder why they are going broke.

  • http://n/a Ron

    Uniona and equal opportunity ruined our USPS. That is the honest to G-ds truth. I was on the inside, got tired of doing a lot of the work, while the EO crew did all of the easy work and the rest of us, did all the tough stuff, Then we hd to listen to them complain about the little work they did. I was one of their few good workers. Note the past tense on this final sentence.