Postal Service loses less, but still in trouble
February 8th, 2013
09:33 AM ET
1 year ago

Postal Service loses less, but still in trouble

Washington (CNNMoney) – If it weren't for Congress, the U.S. Postal Service might not be doing so badly.

In the final three months of last year, the agency lost $1.3 billion - considerably less than the $3.3 billion lost in the same 2011 period.

FULL STORY

Filed under: Congress
soundoff (27 Responses)
  1. Rudy NYC

    The Republicans will not be satisfied until the postal workers union is extinct. Somebody needs to remind the constitution loving hypocrites that the postal service is constitutionally mandated and they need to figure out how to save it.

    February 8, 2013 09:49 am at 9:49 am |
  2. Ancient Texan

    My friend who is a postal worker admits that the union coupled with the governmant forcing billions in prepayments into the retirement fund is the reason for the huge losses.

    February 8, 2013 10:08 am at 10:08 am |
  3. Sniffit

    Aaaand, what CNN and the MSM don't want to report on is that the GOP purposefully killed the USPS by enacting the requirement that it pre-fund all pensions...a requirement that no other government agency, quasi-government agency or private corporation must contend with. They did this to kill the union by hamstringing and killing the USPS. It is that simple. The burden of pre-funding all pensions, instead of funding them like the rest of the universe funds them, is enormous and saps billions out of the USPS budget, making budgeting and generating sufficient revenue an exercise in treading water with a lead weight tied to your ankle. It's on purpose, deliberate, intentional and part of the GOP agenda to privatize everything as a means of weakening the federal government. The south shall rise again....

    February 8, 2013 10:25 am at 10:25 am |
  4. rs

    Blaming the union for the way the Post Office is funded and operated is silly. The workers aren't grossly paid, and their retirement and healthcare are no more gross than other civil employees (i.e. police, fire fighters, university, etc.).Congress is clearly the culprit.

    I think Rudy is right- these are just more workers the Republicans want to impoveris, and another government function they want to screw up.... and they wonder why they are losing election.

    February 8, 2013 10:26 am at 10:26 am |
  5. Sniffit

    "Blaming the union for the way the Post Office is funded and operated is silly. "

    Well, that's just it though. The reason the GOP enacted the law requiring the USPS to pre-fund its pensions, as I stated above, is so that they could claim "the pensions killed the USPS because the union made it cost too much."

    February 8, 2013 10:32 am at 10:32 am |
  6. Ray E. (Georgia)

    Well Suh,
    I am in the camp that wants to make as much money as the Market will bare. But there comes a time when the outgo is more than the income. SO, either they take a pay cut. Hard I Know. or just get laid off. I hear there is a lot of that going around these days. Seems I read the Country has a 16.5 Trillion dollar Federal Debt. Hummm???

    February 8, 2013 10:36 am at 10:36 am |
  7. PJ

    @Ancient Texan:
    --
    Your postal worker friend just verified what Sniffit wrote. Good to see that you are finally waking up to the
    tactics of your Republican friends.

    February 8, 2013 10:44 am at 10:44 am |
  8. Rudy NYC

    Ray E. (Georgia)

    Well Suh,
    I am in the camp that wants to make as much money as the Market will bare. But there comes a time when the outgo is more than the income. SO, either they take a pay cut. Hard I Know. or just get laid off. I hear there is a lot of that going around these days. Seems I read the Country has a 16.5 Trillion dollar Federal Debt. Hummm???
    -------------
    The USPS is an entity that is complete separate from the federal budget, dude. You talk nonsense. It was a perfectly viable healthy enterprise until the lame duck Congress of 2006 decided to require the USPS to fund 75 years worth of pensions within a decade. The USPS would have turned a $1.5 billion profit without that insane requirement.

    February 8, 2013 10:44 am at 10:44 am |
  9. Rudy NYC

    @Ray E. – The USPS is the single largest employer of veterans in the country.

    February 8, 2013 10:50 am at 10:50 am |
  10. rs

    Ray E. (Georgia)

    I am in the camp that wants to make as much money as the Market will bare.[sic]
    ____________________________
    Yes, that is obvious. However, forcing workers to take a pay cut so you can maintain a maximum level of 'profit" is what hurts economic growth in this country. It sort of works against that "job creator" mythology. Early (and successful) industrialists like Henry Ford early on figured out that if you paid you workers livable wages (i.e. made them happy, and let them share in some small portion of the profits), it ultimately reduced labor issues and turned them into customers. This "keep workers poor" idiocy is what will ultimately kill the GOP. There are way more workers than wealthy capitalists.

    February 8, 2013 10:52 am at 10:52 am |
  11. Sniffit

    "Early (and successful) industrialists like Henry Ford early on figured out that if you paid you workers livable wages (i.e. made them happy, and let them share in some small portion of the profits), ..."

    Indeed. It's called the "virtuous cycle" and it is entirely broken in this country.

    February 8, 2013 10:57 am at 10:57 am |
  12. g

    social security and postal service would be all right -if the politicians from both parties would put back the money they stole the last thirty years

    February 8, 2013 11:04 am at 11:04 am |
  13. Rudy NYC

    g wrote:

    social security and postal service would be all right -if the politicians from both parties would put back the money they stole the last thirty years
    -------------
    No one stole anything from the USPS. The USPS is a textbook example of GOP willfully destructive financial mismanagement. Funding a pension for people who aren't even born yet is truly ridiculous and indefensible. Yet, somehow Republicans stepped up to the plate and have defended pushing a constitutionally mandated department over a financial cliff. It seems to be the only theing that they're good at. I wonder what they plan to do with the pension money after the USPS folds up. Use it to fund a tax cut for job creators? Like Reagan did with the Social Security surplus?

    February 8, 2013 11:12 am at 11:12 am |
  14. Claudia, Houston, Tx

    Lavish million dollar estates, vacations and cruises abroad, lucritive salaries, etc. for post office executives is a result of this because nobody was watching, this went on for years as if the "books were cooked" and there is no surprise here. I guess they're looking for a "Government Bailout" and I hope that doesn't happen. However, it's a shame the lower level postal workers must take a hit.

    February 8, 2013 11:19 am at 11:19 am |
  15. Pete

    @RayE(Georgia),why don't you ask you union busting Bushs,they created this mess with changing pension laws ..And now because of it the Post Office can't keep up with the amounts of retirees,just another lame excuse for republicans to hide behind isn't it,the problem they created that went sour like everything else republicans touch going back to Hoovers Great Depression when republicans couldn't buy a vote..If it weren't for politicians years ago feeling sorry for your demented expresident Reagan another union buster that would've been impeached and thrown out like Nixon and you'd never would have had another republican in that office and you know its true!!

    February 8, 2013 11:25 am at 11:25 am |
  16. Pete

    @g,go back and see who started stealing from the SocialSecurity lockbox none other than Allan Greenspan and Reagan to balance the budget in the "80's.He's the first and your republican brethren followed suit so don't act so sanctumonious when its the righties that went wrong ..Truth does hurt doesn't it!!

    February 8, 2013 11:31 am at 11:31 am |
  17. Fair is Fair

    Technology and automation have dramatically improved over the years but the business model they operate under has not budged. Not surprising they're losing billions. If this happened to any business in the dreaded private sector, they'd have been belly up years ago.

    Whine all you want about the pension thing. It's not the only thing causing their woes.

    February 8, 2013 11:33 am at 11:33 am |
  18. Ray E. (Georgia)

    Suhs,
    I ams sorry about the economic situation in the country but I don't makes the news I jus reports the news.
    You all heard about the housing mess. There waz an earlier story about someone's house that caught fire They were in arrears on ther house payment. It seem the Morgage and the insurance policy got to a rubbin together, and they caught fire! Burned the whole house down! Kinda like what's goin on in Washington, and the Post Office.

    Hang in there Rudy, Trudy and whoever else is waitin for the Nanny State to bail 'em out. Gosh a mighty Pete, the Union's priced themselves out of business. Geronomio ! !

    February 8, 2013 11:43 am at 11:43 am |
  19. Sniffit

    "Whine all you want about the pension thing. It's not the only thing causing their woes."

    Sure isn't, and email and texting and a whole host of other outside (nto just inside) influences are also changing the snail-mail market's dynamics, but the pre-funding requirement is a direct hamstringing of the USPS's budgeting and freeing it from the requirement would go very VERY far towards helping it survive and restructure. Reorganization, restructuring, putting plans into motion, etc., all require alot of money, and the USPS has been forced to spend all of its resources just trying to stay afloat. Hamstringing their ability to fund those endeavors and then turning around and saying that their failure to do them is why there's a problem is dishonest and a bit too "have your cake and eat it too" to be considered a good faith argument.

    February 8, 2013 11:44 am at 11:44 am |
  20. Wes

    When all else fails, blame Bush.

    February 8, 2013 11:47 am at 11:47 am |
  21. Patrick in Wisconsin

    I cannot believe all the republicans here are still whining about how the unions are killing the USPS. Do you know what really is killing the USPS? It's called your computer! Every day you use it to send emails as opposed to actually sending letters. Now many companies are switching to online billing as opposed to mail billing. THAT is what is killing the USPS.

    February 8, 2013 11:51 am at 11:51 am |
  22. Joi Gibson

    The first sentence says it all.

    February 8, 2013 11:51 am at 11:51 am |
  23. Sniffit

    "Whine all you want about the pension thing. It's not the only thing causing their woes."

    Hmmm..shorter response in case the long-winded last one doesn't go up hehe:

    Guess why the USPS can't afford to engage in the process of reorganization and restructuring. Guess.

    February 8, 2013 11:52 am at 11:52 am |
  24. Rudy NYC

    Pete wrote:

    @g,go back and see who started stealing from the SocialSecurity lockbox none other than Allan Greenspan and Reagan to balance the budget in the "80's.He's the first and your republican brethren followed suit so don't act so sanctumonious when its the righties that went wrong ..Truth does hurt doesn't it!!
    ----------
    That's exactly right. Reagan was the first to openly admit it. I will never forget the speech he gave. He said that the "Social Security surplus was The People's money." He said that the "money should be returned to The People." He acknowledged that the fund was built by the middle class, but said that he would use the surplus to fund a 50% tax cut for the wealthy.

    What Reagan said next ws priceless and made him a conservative legend. Reagan said that "the money would trickle down through the economy in the form of jobs" for the middle class, "repaying the investment" many times over. He didn't create jobs. He broke Social Security, which was his plan all along. The result was inflation, lost jobs and a self inflected recession. To top it all off, he tried to do it a second time with the same result.

    February 8, 2013 12:08 pm at 12:08 pm |
  25. Rudy NYC

    Fair is Fair

    Technology and automation have dramatically improved over the years but the business model they operate under has not budged. Not surprising they're losing billions. If this happened to any business in the dreaded private sector, they'd have been belly up years ago.
    ---------------------–
    Nice try, but you talk nonsense. Stop parroting right wing media. To be forced to fund pensions for people who aren't even born yet is assinine. If you call that good business sense, then no wonder the Republicans drove the economy into a ditch. If the USPS didn't have to pay $4 billion towards the pension last year, they would have turned a $1.5 billion dollar profit.

    February 8, 2013 12:11 pm at 12:11 pm |
1 2