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Wed Feb 6, 2013, 08:31 AM

Postal Service to cut Saturday mail to trim costs

This discussion thread was locked as off-topic by OKNancy (a host of the Latest Breaking News forum).

Source: AP

The U.S. Postal Service will stop delivering mail on Saturdays but continue to deliver packages six days a week under a plan aimed at saving about $2 billion annually, the financially struggling agency says.

In an announcement scheduled for later Wednesday, the service is expected to say the Saturday mail cutback would begin in August.

The move accentuates one of the agency's strong points — package delivery has increased by 14 percent since 2010, officials say, while the delivery of letters and other mail has declined with the increasing use of email and other Internet services.

Under the new plan, mail would be delivered to homes and businesses only from Monday through Friday, but would still be delivered to post office boxes on Saturdays. Post offices now open on Saturdays would remain open on Saturdays.

Read more: http://bigstory.ap.org/article/postal-service-cut-saturday-mail-trim-costs



Over the past several years, the Postal Service has advocated shifting to a five-day delivery schedule for mail and packages — and it repeatedly but unsuccessfully appealed to Congress to approve the move. Though an independent agency, the service gets no tax dollars for its day-to-day operations but is subject to congressional control.

It was not immediately clear how the service could eliminate Saturday mail without congressional approval.

<snip>

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Replies to this discussion thread
Arrow 13 replies Author Time Post
Reply Postal Service to cut Saturday mail to trim costs (Original post)
meegbear Feb 2013 OP
dotymed Feb 2013 #1
naaman fletcher Feb 2013 #6
mac56 Feb 2013 #9
naaman fletcher Feb 2013 #12
IDemo Feb 2013 #2
kag Feb 2013 #3
Botany Feb 2013 #4
naaman fletcher Feb 2013 #7
pscot Feb 2013 #10
mac56 Feb 2013 #8
abelenkpe Feb 2013 #11
beerandjesus Feb 2013 #5
OKNancy Feb 2013 #13

Response to meegbear (Original post)

Wed Feb 6, 2013, 08:50 AM

1. I f fed-ex

or UPS had to pre-fund their employees retirement (if they get one) I do not think they could compete with the USPS. Their share holders couldn't make a profit...drown it in a tub, then privatize it all...

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Response to dotymed (Reply #1)

Wed Feb 6, 2013, 09:03 AM

6. Actually they do

 

Private companies have to fund their pensions. The USPS didn't. The USPS pension was a ponzi-scheme, where there were no assets to pay it.

Now, that being said, I agree the time-table that they were given to get it fully funded was ridiculously short.

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Response to naaman fletcher (Reply #6)

Wed Feb 6, 2013, 09:22 AM

9. Pre-fund pensions for 75 years?

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Response to mac56 (Reply #9)

Wed Feb 6, 2013, 09:28 AM

12. Well

 

TO be clear, what you posted is just an assertion by some guy, but:

In the private world, you have to fund your pensions. If you make a promise to pay out, you have to have it funded on an actuarial basis.

The post office was running a Ponzi Scheme pension plan.

So, a law that they have to stop doing that is fine.

BUT, the amount of time that they were given to get up to speed is too low.

As for the "75 year" assertion, I am not sure where that comes from exactly.

However, let me just amend my statement and say "Private companies have to fund their plans, they can't run a ponzi retirement scheme"

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Response to meegbear (Original post)

Wed Feb 6, 2013, 08:51 AM

2. No more pizza coupons and credit card come-ons?

About time.

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Response to meegbear (Original post)

Wed Feb 6, 2013, 08:54 AM

3. They're chipping away...

The Rethugs are just dismantling everything they can, little by little...or big if they can do it. The ol' "drown it in a bathtub" dream is alive and well.

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Response to meegbear (Original post)

Wed Feb 6, 2013, 09:00 AM

4. The only reason the USPS is losing money is that the republicans made it fund .....

..... 75 years of retirement in advance as a poison pill. Republicans really hate America ....
BTW will UPS or FEDEX service small rural mail routes?

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Response to Botany (Reply #4)

Wed Feb 6, 2013, 09:04 AM

7. That's not true

 

The USPS lost billions last year even outside of the pension pre-funding

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Response to naaman fletcher (Reply #7)

Wed Feb 6, 2013, 09:26 AM

10. That's not true


At the heart of the matter is a 2006 Congressional mandate put on the US Postal Service contained in the “Postal Accountability and Enhancement Act of 2006” to pre-fund healthcare benefits of future retirees, a 75 year liability over a 10 year period. No other agency or corporation is required to do this. This provision costs the Postal Service $5.5 billion a year. When you add in an adjustment that was made in how workers’ compensation costs were calculated based on interest rate assumptions and long term predictions concerning health care and compensation of $2.5 billion (a non cash accounting adjustment), you come up with $8 billion in cost. Actual loss was $500 million and when added, comes to the $8.5 billion reported for 2010. While $500 million is a lot, it doesn’t compare with $8.5 billion and is down from the previous year loss of $1 billion. If you took out the onerous pre-funding mandate, the Postal Service actually shows a $700 million profit over the last four years instead of the $20 billion loss.


http://my.firedoglake.com/mmonk/2011/08/19/the-pre-funding-mandate-bringing-down-the-american-postal-workers-union/

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Response to Botany (Reply #4)

Wed Feb 6, 2013, 09:16 AM

8. No, they won't.

And not even to small towns.

Plus UPS and FedEx can raise their rates any time they choose. USPS can only do so with Congressional approval.

When UPS and FedEx will pick up a birthday card from a small Minnesota town, and deliver it to a little girl in Hawaii within a couple of days, for only 45 cents.... then we'll talk.

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Response to Botany (Reply #4)

Wed Feb 6, 2013, 09:26 AM

11. Exactly

That is why.

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Response to meegbear (Original post)

Wed Feb 6, 2013, 09:03 AM

5. This really upsets me.

The right-wingers do all sorts of contemptible shit, but this assault on the post office (and, of course, their union) really shows how much they hate the priorities of the American people, and how little regard they have for the Constitution they claim to love so, so much.

As a record collector, I have shipped and received literally thousands of packages over the years. Not only is the service easily as good as comparable service I've received from UPS or FedEx, it's also much less expensive. And I've sent enough packages to places like Italy and Ukraine to realize that such exceptional postal service is not something we should take for granted.

I wish these assholes and their pre-funding scheme would just die already.

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Response to meegbear (Original post)

Wed Feb 6, 2013, 09:29 AM

13. oops - someone beat you by one minute

http://www.democraticunderground.com/1014391735

please post your article in the above thread

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