Post Office May Lay Off 120,000 Workers

by Ben Hoffman

The United States Postal Service has long lived on the financial edge, but it has never been as close to the precipice as it is today: the agency is so low on cash that it will not be able to make a $5.5 billion payment due this month and may have to shut down entirely this winter unless Congress takes emergency action to stabilize its finances.

“Our situation is extremely serious,” the postmaster general, Patrick R. Donahoe, said in an interview. “If Congress doesn’t act, we will default.”

In recent weeks, Mr. Donahoe has been pushing a series of painful cost-cutting measures to erase the agency’s deficit, which will reach $9.2 billion this fiscal year. They include eliminating Saturday mail delivery, closing up to 3,700 postal locations and laying off 120,000 workers — nearly one-fifth of the agency’s work force — despite a no-layoffs clause in the unions’ contracts.

The post office’s problems stem from one hard reality: it is being squeezed on both revenue and costs.

As any computer user knows, the Internet revolution has led to people and businesses sending far less conventional mail.

At the same time, decades of contractual promises made to unionized workers, including no-layoff clauses, are increasing the post office’s costs. Labor represents 80 percent of the agency’s expenses, compared with 53 percent at United Parcel Service and 32 percent at FedEx, its two biggest private competitors. Postal workers also receive more generous health benefits than most other federal employees.

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The Post Office needs to become more efficient, but laying off 120,000 employees at a time of high unemployment is just going to make the economy worse. The federal government is currently laying off people at a rate of 50,000 a month. That’s taking money out of the economy and further hurting businesses. The Republicans currently in Congress are the most anti-business group we have ever seen. And they’re destroying our country.

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6 Comments to “Post Office May Lay Off 120,000 Workers”

  1. the tea party started this mess

  2. many postal services are out dated and in order to stay in the ring they will have to downsize and rethink their game plan – simple

  3. Reality is the postal service could stand to get “lean”. Look at ways to eliminate waste, reduce motion, etc. The system could then potentially save jobs, provide a better service, and maintain some relevancy. Simply blaming a group doesn’t get at the underlying issues inherent in a government organization or agency.

  4. The problem isn’t with the post office it lays with the users ,us. we text messages, we use email to much. To save the post office we need to have business send us paper bills, paper receipts. Learn to write letters to our friend rather then these text messages which are inpersonal. If everyone would send just one letter a day I believe we could turn around the proplem of lay offs in at the post office . It cheaper to spend money on postage stamps then pay higher taxes to cover long term unemployment.Just using the mail may save some 100000 jobs.It can’t heart.

  5. Wow, that’s what I was seeking for, what a stuff! existing here at this blog, thanks admin of this web page.

  6. Post office and congress needs to look at who is lieing to who
    Postal management has policy “you don’t touch the mail you got to go “they don’t touch the mail and group leaders are more efficient at the job and the can work why have a in house custodial they don’t touch or do the job because managers would have to check there work who answers the phone they could answer there own phone ohbya they are to busy standing around and talking to each other

    Issue why did management get a 10%+++ raise they walk in and say priority is up bbm mail is up we need a big raise and big bonuses for not touching the mail
    While employees raises are based on first class mail which management knows is going down because paperless direct deposit and on line bill paying postal service it’s self is going to paperless pay check /check stub paperless doing it to the employees them selves postal even contracts out mail to be processed that is less efficient then letting the postal employees are In the 95+% efficient and the companies the contract out to are 70 to 80 %

    Things to think about maybe postal management needs to be down sized like they said they would but got caught increasing there numbers oh so when the down size they will be able to be at the place they were no layoffs for them

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