Not unlike the federal government propping it up, the United States Postal Service (USPS) is teetering on the brink of bankruptcy. Postmaster General Patrick Donahoe has warned that unless Congress steps in, the agency may have to shut down by the end of next summer. As the saying went, “Neither snow, nor rain, nor heat, nor gloom of night . . .” could keep letter carriers from delivering the mail. But funding those letter carriers’ retirement—that’s a storm of a different kind. USPS faces a past-due payment of $5.5 billion to fund its retirees’ health plan.
As an independent government agency, the Postal Service does not rely directly on tax dollars to fund its operations. Rather, it makes its revenue from stamps, package delivery, and other services. But its labor costs are huge, and it is limited in certain ways that private businesses are not, when it comes to managing its workforce. Having lost $20 billion in the last five years, and more than $3 billion last quarter alone, USPS is in need of a major overhaul—and a bailout.
The Obama administration and others are proposing ways to help the Postal Service restructure its operations and avoid default. The agency may be forced to cease Saturday mail delivery; terminate more than 200,000 career positions; and close hundreds of smaller post offices. Other proposals include partnering with UPS and FedEx; selling advertising on the sides of mail trucks; and phasing out delivery to front-door mail slots.
The Postal Service’s fundamental problem is the digital revolution, epitomized by e-mail. As Postmaster Donahoe put it: “Instead of buying stamps, many consumers pay bills online, send ‘e-vites’ to friends and family, and simply press ‘Send’ when they want to communicate.” Traditional first-class mail simply cannot compete with the ease and low cost of Internet communication.
Image credit: © SuperStock RF/SuperStock
Related Links
- Obama’s Postal Service Plan Would Cut Saturday Mail
Review the state of the Postal Service and the Obama administration’s plan to overhaul it.
(Source: Reuters, September 19, 2011) - The Fight to Save the U.S. Postal Service
An overview of the difficulties facing USPS; hear the audio of the story.
(Source: NPR, October 1, 2011) - Ideas for Saving USPS from Bankruptcy
Check out this consumer-friendly blogger’s look at USPS’s dilemma; includes links to related articles.
(Source: The Consumerist, September 6, 2011) - Postmaster General Warns Congress about Default, Possible Insolvency
This article reviews the testimony of the postmaster general to Congress about the problems facing the Postal Service.
(Source: CNN, September 6, 2011) - GAO: Congress Must Act Fast to Stave Off USPS Bankruptcy
This Web site highlights additional congressional testimony by a spokesperson for the Government Accountability Office before the Senate Committee on Homeland Security and Governmental Affairs.
(Source: Federal News Radio, September 12, 2011)
can the streets of milwaukee rase the money so postal service can proseed with the mail delivery
no dont do this i want my check lol
shut up ato
🙁 🙂 😀
oh well they should have had more money …stupid president cuz he didnt give them money 2 recover.
Haha, shouldn’t you be chairgng for that kind of knowledge?!
p.s. good comment ato
OWW THAT SUCKS
where is the author of this article???????
who is the author i cant find it!!!!! i need it for a report!
who is the author!!!!!!!!!!!!
Woww Thuiss Redicliouss Ihh Neverr Thankk Thatt Theyy Woukldd Goo BankkRupcyy !
TO SURVIVE THE USPS MUST RESTRUCTURE; NO MORE CARRIERS
EVERYONE PICKS UP THEIR MALE AT CENTRAL POINT(LETTERS AND PACKAGES)IF THEY DO NOT DO THIS
UPS AND FED-EX ARE POISED TO TAKE OVER AND THEY WILL OPERATE
WITHOUT UNION AND DELIVERY PEOPLE.
Fedex and UPS at this point cannot compete for mail service but can on parcels, etc. Congress needs to get out of their constant interferance with USPS. USPS need not lose money. They need to wack Saturday deliveries, get rid of thousands of wasted, overbloated management jobs, close non essential terminals and facilities, stop being forced to fund a pension fund that no one can afford to fund, stop giving Congress five billion dollars a year and a few more absolutely wasteful things that they now to have to do. Firing postal workers will not solve the problem as the problems are systemic within all of USPS.