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Fri Feb 8, 2013, 12:46 PM

Postal Service lost $14M a day in 1st quarter

Source: Atlanta Journal-Constitution

Maybe Saturday isn’t the only delivery day that needs to be considered by the U.S. Postal Service?

Days after the federal agency announced it was discontinuing Saturday deliveries to cut costs, its chief financial officer told the Postal Service Board of Governors that USPS lost $1.3 billion – about $14 million a day – in its first quarter. The good news is that the loss October to December was much smaller than the $3.3 billion in red ink during the same period a year ago.

The most recent first quarter was helped by extra mailings due to the November elections and Christmas holiday season, Reuters reported. Competition from UPS, FedEx and other shippers, and consumers’ increasing reliance on email and other online options, have greatly loosened the grip the USPS once had on mail deliveries.

Cutting back to five days a week will save the agency $2 billion a year, the USPS estimates. The halt to first-class mail deliveries on Saturday begins the first week of August. USPS lost almost $16 billion in its last fiscal year.

Read more: http://blogs.ajc.com/business-beat/2013/02/08/postal-service-14m-lost-daily-in-1st-quarter/

54 replies, 4602 views

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Arrow 54 replies Author Time Post
Reply Postal Service lost $14M a day in 1st quarter (Original post)
Redfairen Feb 2013 OP
montanacowboy Feb 2013 #1
Exultant Democracy Feb 2013 #9
grahamhgreen Feb 2013 #25
Historic NY Feb 2013 #31
Katashi_itto Feb 2013 #45
tularetom Feb 2013 #2
former9thward Feb 2013 #6
sketchy Feb 2013 #8
magellan Feb 2013 #15
roxy1234 Feb 2013 #19
magellan Feb 2013 #20
roxy1234 Feb 2013 #22
magellan Feb 2013 #20
DCBob Feb 2013 #26
sketchy Feb 2013 #24
gcomeau Feb 2013 #3
Travis_0004 Feb 2013 #36
Blue_Tires Feb 2013 #4
Ash_F Feb 2013 #44
elleng Feb 2013 #5
SoapBox Feb 2013 #12
elleng Feb 2013 #14
aquart Feb 2013 #28
elleng Feb 2013 #29
Historic NY Feb 2013 #32
alarimer Feb 2013 #41
thelordofhell Feb 2013 #7
freshwest Feb 2013 #10
devilgrrl Feb 2013 #11
neffernin Feb 2013 #13
They_Live Feb 2013 #35
neffernin Feb 2013 #37
groundloop Feb 2013 #16
AgingAmerican Feb 2013 #17
elleng Feb 2013 #18
librechik Feb 2013 #23
upaloopa Feb 2013 #27
Gentle-man Feb 2013 #30
They_Live Feb 2013 #33
olddad56 Feb 2013 #34
PSPS Feb 2013 #38
oberliner Feb 2013 #39
Occulus Feb 2013 #42
oberliner Feb 2013 #46
Occulus Feb 2013 #48
oberliner Feb 2013 #49
Occulus Feb 2013 #50
oberliner Feb 2013 #51
sketchy Feb 2013 #53
sketchy Feb 2013 #40
Occulus Feb 2013 #43
sketchy Feb 2013 #47
handmade34 Feb 2013 #52
sketchy Feb 2013 #54

Response to Redfairen (Original post)

Fri Feb 8, 2013, 12:50 PM

1. What a Crock of Shit

We all know why the post office is going tits up and it's not because of fucking email on online options

It's because of the bastards in Congress who make them fund 75 years worth of health care in a 10 year window

Atlanta Journal Constitution - shame on you

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Response to montanacowboy (Reply #1)

Fri Feb 8, 2013, 01:14 PM

9. +100

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Response to montanacowboy (Reply #1)

Fri Feb 8, 2013, 03:28 PM

25. Thanks!

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Response to montanacowboy (Reply #1)

Fri Feb 8, 2013, 05:09 PM

31. Exactly my cousin is the senior carrier in this part of the county...

his sons, grandsons, sons, would be able to retired if he decided to carry the mail. They cut their loss this last quarter by teaming up with major on-line purchasing sites to deliver the packages for Christmas with guaranteed delivery.

I wish people knew the PO also carries packages for Fed Ex and UPS, the PO goes where the other won't.

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Response to montanacowboy (Reply #1)

Sat Feb 9, 2013, 03:04 AM

45. With the 75 year funding. The post offices starts each fical year 8.5 billion in the hole.

So the OP is full of shit.

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Response to Redfairen (Original post)

Fri Feb 8, 2013, 12:51 PM

2. That's actually remarkable since the congressional mandated pre funding of health care

cost the USPS approximately $13.7 million per day. So what you're saying is that absent this punitive vengeful action by a republican congress, the Postal Service would have essentially broke even in the first quarter.

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Response to tularetom (Reply #2)

Fri Feb 8, 2013, 01:04 PM

6. Why did Democrats support the bill?

It passed the Senate unanimously. It passed the House with large bi-partisan support. Henry Waxman, a progressive, was sponsor of the bill in the House. It was supported by the Postal Union.

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Response to former9thward (Reply #6)

Fri Feb 8, 2013, 01:10 PM

8. Apparently what they supported prevented a COMPLETE PRIVATIZATION of USPS

in the House version of the 2006 bill. The onerous healtcare prefunding was tacked on in the Senate by Sen. Susan Collins.

Where is DUer Brentspeak to explain this?


I'm just paraphrasing what I remember he said. I can't find the posts right now.
That's the gist of it, and I hope more knowledgeable people will correct me/expand on this!

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Response to sketchy (Reply #8)

Fri Feb 8, 2013, 01:44 PM

15. They didn't have to support it unanimously in the Senate

They chose to. They were the minority yet not one dissent.

No effin' excuse.

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Response to magellan (Reply #15)

Fri Feb 8, 2013, 02:02 PM

19. Do you by any chance have a vote

 

call from the house and senate? I would like to see who exactly voted for it and who voted against it. Either way, we can now see the catastrophic result of the bill and people need to start repealing it. Mind you, I didn't say fixing it, it needs to be scratched.

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Response to roxy1234 (Reply #19)

Fri Feb 8, 2013, 02:18 PM

20. This thread discusses the votes, with links

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Response to magellan (Reply #20)

Fri Feb 8, 2013, 02:54 PM

22. Thanks for the link

 

Isnt it amazing that 20 house reps voted no to the bill while 0 house dems voted no for it. Saying dems should step up to the plate for this is one big understatement.

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Response to roxy1234 (Reply #19)


Response to magellan (Reply #15)

Fri Feb 8, 2013, 03:33 PM

26. Yeah, I dont get that either..

If it was such an obvious tactic by the Repukes to kill the USPS why would Democrats support it without a fight?

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Response to former9thward (Reply #6)

Fri Feb 8, 2013, 03:26 PM

24. Oh, here is the link I was looking for

the thread is: Postal service default appears likely
There is an extensive and edifying debate between brentspeak and former9thward. Enjoy.

http://www.democraticunderground.com/1014165360

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Response to Redfairen (Original post)

Fri Feb 8, 2013, 12:53 PM

3. ENTIRELY...

...because of advance funding SEVENTY FIVE YEARS of pension costs they should never have to fund.

Never lose sight of that fact. The Post Office fiscal issue is a deliberately manufactured one imposed by the GOP to MAKE the USPS fail, so they can then hold it up as an example of a failed government enterprise.

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Response to gcomeau (Reply #3)

Fri Feb 8, 2013, 06:12 PM

36. The democrats are equally at fault, so blame both parties.

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Response to Redfairen (Original post)

Fri Feb 8, 2013, 12:56 PM

4. Where are the stories on how much the Pentagon loses daily??

Media never seem to want to touch those...

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Response to Blue_Tires (Reply #4)

Sat Feb 9, 2013, 02:00 AM

44. +1000 /nt

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Response to Redfairen (Original post)

Fri Feb 8, 2013, 01:01 PM

5. 'Competition from UPS, FedEx and other shippers'

likely has NOTHING to do with this.

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Response to elleng (Reply #5)

Fri Feb 8, 2013, 01:26 PM

12. As pushed by the PukeBaggers...if the USPS fails, you will just use UPS, FedEx or other such...

to send a Birthday card?

to simply make a donation to a small group? (I send 5 bucks/month, to a group that knits hats for military)

And, we have a small business...we get bills, bills, bills (invoices and statements and receipts)...by US Mail! How's
that going to work if the USPS weren't around. Why isn't business screaming it's head off to get Congress to fix this?????

This country would grind to a HALT, if they were to fail.

Wake up America.

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Response to SoapBox (Reply #12)

Fri Feb 8, 2013, 01:42 PM

14. Right, of course;

forget birthday cards! And, of course, its USPS that provides 'last mile' service FOR FedEx etc. Those private businesses recognize the expense of doing so.

No doubt volume of first class mail has decreased significantly due to cyber-stuff, but things can be done to lighten USPS' burden like enabling it to provide additional valuable services AND remove the pre-pay employees health and retirement accounts.

Also, read a DU post recently, rural mail delivery could be maintained while enabling removal of costly rural post offices; people want them to remain for what appears to be social reasons, but not a sufficient rationale, imo.

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Response to elleng (Reply #14)

Fri Feb 8, 2013, 03:52 PM

28. Social reasons is a VERY strong rationale.

I'm amazed at the casual way business people discount that.

A community is saying that there is a necessary secular face to face contact provided by the post office and we are treating that as nothing.

Community should be protected, not discarded.

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Response to aquart (Reply #28)

Fri Feb 8, 2013, 04:10 PM

29. Yes but apparently its VERY expensive to maintain the small, rural post offices.

Social reasons may not be sufficient justification, if doing so results in inability to afford service in those locales. Rural Free Delivery is something else.

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Response to SoapBox (Reply #12)

Fri Feb 8, 2013, 05:20 PM

32. GFLWT...a first class letter will cost your at least $5 or perhaps $10...

and the private companies will compete with government funding.

The GOP & Baggers want to usurp the Constitution.

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Response to SoapBox (Reply #12)

Fri Feb 8, 2013, 10:48 PM

41. UPS will charge $20 to send a birthday card.

Once their cheap competition is out of the way.

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Response to Redfairen (Original post)

Fri Feb 8, 2013, 01:05 PM

7. Another clueless fuckface blogger that does absolutely no research

Fuck the Atlanta Journal-Constitution

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Response to Redfairen (Original post)

Fri Feb 8, 2013, 01:16 PM

10. Not LOST. Was ROBBED by the GOP Congress and their anti-union, privatization sponsors.







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Response to Redfairen (Original post)


Response to Redfairen (Original post)

Fri Feb 8, 2013, 01:38 PM

13. On the flip side

USPS retirement system ought to have funding until YR 2435

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Response to neffernin (Reply #13)

Fri Feb 8, 2013, 05:44 PM

35. Until the bad guys

come to steal it. Which I'm sure is part of the master plan.

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Response to They_Live (Reply #35)

Fri Feb 8, 2013, 06:20 PM

37. I suppose that's what they did with SS

It is really funny how fast a retirement system is "unsustainable" when you take ALL of its assets. Bah, I hate humanity sometimes.

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Response to Redfairen (Original post)

Fri Feb 8, 2013, 01:51 PM

16. There's been some pretty ignorant replies to that story, maybe some of us could help that out....

One idiot said that USPS has been nothing but a jobs bank for minorities for 40 years.......

I suspect that a few DUers could add a ton of factual information to that discussion.

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Response to Redfairen (Original post)

Fri Feb 8, 2013, 01:55 PM

17. The post offices current fiscal situation is manufactured

Congress passed a law in 2006 which created this artificial crisis.

This law forces the post office to take out $5.5 billion per year for future retirees. This amounts to $15 million a day, year in year out. The postal service actually MADE A PROFIT this quarter, but you wouldn't know because of this leaching piece of shit law the GOP passed.

Repeal this law.

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Response to Redfairen (Original post)

Fri Feb 8, 2013, 03:07 PM

23. This year they had to borrow the money to pay for the 75 year pre-funding of healthcare

now they will have to pay interest on that.

Somebody explain to me how this isn't Congress KILLING our post office in order to privatize shipping in the US?

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Response to Redfairen (Original post)

Fri Feb 8, 2013, 03:37 PM

27. This story is bogus or doesn't tell the whole story.

From what I am told from postal workers, the post office makes it's revenue from sales of postage and services and if they did not have the funding of future benefits of employees that aren't even hired yet they would make a profit.
I think these post office is losing money stories are plants.
The right wants to turn over mail delivery to private companies and bust the union not to mention screwing up voting by mail.
If Congress wanted this "problem" could be solved by changing the benefit funding law.

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Response to Redfairen (Original post)

Fri Feb 8, 2013, 04:13 PM

30. People resort to Facebook and email these days

 

It's sad but technology has cost many jobs that would otherwise be performed by humans.

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Response to Redfairen (Original post)

Fri Feb 8, 2013, 05:35 PM

33. most of the comments

at the article link are so misinformed and sickening. Thanks right wing hate machine!

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Response to Redfairen (Original post)

Fri Feb 8, 2013, 05:39 PM

34. on the bright side, if I go away for the weekend, I wont have to ask the neighbor to get my mail.

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Response to Redfairen (Original post)

Fri Feb 8, 2013, 08:21 PM

38. What they won't tell you: Without the GOP poison pill, it would have had a $4 million a day profit.

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Response to PSPS (Reply #38)

Fri Feb 8, 2013, 08:57 PM

39. The bill was co-sponsored by two Democrats

It was passed unanimously - not a single Democrat opposed.

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Response to oberliner (Reply #39)

Sat Feb 9, 2013, 01:45 AM

42. And? So the fuck what?

Please tell the class what the goddamned point of that comment was, how it helps, what solution it proposes, or what fucking relevance it has to the price of tea in China.

Thanks in advance.

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Response to Occulus (Reply #42)

Sat Feb 9, 2013, 07:26 AM

46. It's not something that Republicans pushed through against the will of Democrats.

The "poison pill" bill cannot be blamed solely on the GOP, but Democrats must be held accountable for their support as well.

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Response to oberliner (Reply #46)

Sat Feb 9, 2013, 01:43 PM

48. Actually, yes it CAN; if they hadn't the GOP would have gone after voiding the unions' contracts.

Which is what we as employees were told at that time by our union reps. Issa, in particular, was all over that bone at that time.

So, no, it doesn't matter who voted for what. It was worse than the poison pill. It was a cyanide vial.

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Response to Occulus (Reply #48)

Sat Feb 9, 2013, 01:54 PM

49. Democrats were in the majority at that time

They didn't have to roll over.

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Response to oberliner (Reply #49)

Sat Feb 9, 2013, 02:16 PM

50. Whatever.

If they had not voted the way they had the unions' contracts would not exist today and thens of thousands of full-time employees would have lost their jobs.

I don't think you understand that the point you're trying to make is meaningless.

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Response to Occulus (Reply #50)

Sat Feb 9, 2013, 02:18 PM

51. Democrats had the power to stop that from happening

They chose not to exercise their power. The Republicans could not have succeeded in their efforts otherwise. That you think this point is meaningless is very odd.

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Response to oberliner (Reply #51)

Sat Feb 9, 2013, 02:49 PM

53. Republicans still held both houses of Congress -- it was a lame duck session

Democrats had not yet taken over, but would very soon.

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Response to Redfairen (Original post)

Fri Feb 8, 2013, 10:05 PM

40. An exhaustive look at Democrats' involvement in this

is at this link:

http://www.democraticunderground.com/1014165360

(I posted this upthread, but it seemed to go unnoticed.)

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Response to sketchy (Reply #40)

Sat Feb 9, 2013, 01:52 AM

43. It went unnoticed BECAUSE IT ISN'T RELEVANT.

Which party who voted for what doesn't actually MEAN a damned THING to the discussion.

Jesus tapdancing Christ, what letter who had after their name in the vote means jack fucking shit to the problem at hand.

WHY do so many of the fuckchoads here not get that?!??!

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Response to Occulus (Reply #43)

Sat Feb 9, 2013, 11:54 AM

47. Knowledge is Power, Occulus, and Sunlight is the best disinfectant

People with valuable firsthand knowledge of these issues -- like yourself -- have argued these issues before again and again, until they're exhausted, probably, and I'm trying to help them avoid starting from square one again and again, by providing links to the DU history on this argument. Conservation of their limited energy is what I'm hoping to aid.

If people will only read what's been said on this at DU before, I think they may learn, and it may undermine some obvious rightwing lies.

You are one of the good guys, Occulus, and I want you to know you've been heard.

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Response to Redfairen (Original post)

Sat Feb 9, 2013, 02:38 PM

52. I want the USPS saved...

"FedEx Corp is the world’s top express delivery service, thanks in large part to its close relationship with members of Congress and the White House. For years, the company has been a major campaign contributor to both Democrats and Republicans and is famous for its unique lobbying tactics, including the fleet of private planes that it keeps on stand-by for lawmakers who need to jet off at a moment’s notice..."



"...UPS and FedEx blocked the Postal Service’s efforts to expand its Global Postal Link program, which was designed to help shippers’ parcels get through customs faster. As the Wall Street Journal reported, Congressional action against Global Postal Link “testifies to UPS’s clout in the Republican-controlled Congress.”


"...UPS waged what the APWU described as an “expensive smear campaign” against the Postal Service. UPS sent every member of Congress a box containing newspaper editorials attacking the USPS, sample resolutions being considered in state legislatures, and a 16-page booklet that compared the Postal Service to the CIA...UPS wanted Congress to put limits on the ability of the Postal Service to expand its products and services in ways that might compete with its own offerings. UPS also wanted to see the authority of the Postal Rate Commission expanded by giving it final authority over all postal rates, the ability to ensure that the Postal Service did not compete unfairly with the private sector, and subpoena power so it could obtain full information on Postal Service operations..."






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Response to handmade34 (Reply #52)

Sat Feb 9, 2013, 02:50 PM

54. +1

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