View Full Version : The U.S. Postal Service could be on its way to a taxpayer bailout

12th April 2010, 03:34 PM
(Reuters) - The U.S. Postal Service could be on its way to a taxpayer bailout unless it takes extreme steps to become financially viable, according to a congressional report released on Monday.


The Government Accountability Office (GAO) said the postal service faces "daunting financial losses" of more than $238 billion over the next decade.

The GAO said Congress should form a panel of independent experts to make recommendations that could include removing the requirement that mail be delivered within six days, reducing USPS' operations, and allowing it to do business in new, non-mail-related areas.

"If no action is taken, the risk of USPS's insolvency and the need for a bailout by taxpayers and the U.S. Treasury increases," the GAO said.

The USPS in February reported a loss of $297 million for the first quarter of its fiscal year, blaming the recession and the use of electronic mail. The USPS, which delivers nearly half of the world's mail, has posted net losses since 2007.

In addition to the erosion of its business due to email, the service also faces competition from FedEx and United Parcel Service.

Last month, the postal service moved forward with its proposal to cut costs by ending Saturday mail delivery. Such a proposal would eventually have to be approved by Congress.

The GAO, however, warned that simply cutting costs will not fully resolve the postal service's financial problems and that Congress needs to address legal restrictions.

The GAO said Congress should consider providing financial relief, including modifying its retiree health benefit obligations and revising the law on collective bargaining with its workers, to ensure that binding arbitration takes its financial condition into account.

The postal service said in a letter to the GAO that it largely agrees with the report, but it is concerned about calls for a panel of independent experts to make recommendations.

It said such a panel could add a layer of bureaucracy and delay needed reforms.

"Our challenged are urgent and well documented. It is time to act," the USPS said.

http://www.reuters.com/article/idUSTRE63B5X920100412 (http://www.reuters.com/article/idUSTRE63B5X920100412)

12th April 2010, 03:54 PM
Of all the bad organizations out there, the GAO is probably the one I trust the least.

13th April 2010, 12:33 PM
If it won't be a direct bailout it'll probably be a bailout done through sneaking a provision hidden somewhere in an obscure bill.

willie pete
13th April 2010, 02:26 PM
I don't use the USPS unless it's absolutely necessary, I have no confidence in their service, most recently, I sent a parcel Certified and in trying to track it online, it was scanned in but never scanned received (this is a cerified piece of mail, it has to be signed for) I spoke with a supervisor where I mailed it, he called the destination PO and spoke with a supervisor there (I was also on the line in a three-way call) the supervisor there explained because it was such a high-volumn destination (LA) it was impossible for them to scan everything :lol , I was surprised, even the supervisor on my end mentioned the fact it was certified and had to be scanned, the other supervisor just passed it off, so it cost me almost $6 in addition to postage and I still had no guarantee it was delivered, they just don't care, he's making his $38.50 an hour,that's all they care about

13th April 2010, 06:45 PM
When I saw the USPS bailout of $238b.... I chuckled. Seems like every deadneat wants to get a piece of the action.

Hell... sign me up too. I think I could be a good deadbeat to the tune of a couple billion $$.

13th April 2010, 06:52 PM

Email pretty much killed any justification for still even maintaining the USPS. Before that UPS and later Fed-Ex cut it in half. What is left over now is just the gazillion-dollar mailman pension obligations.


13th April 2010, 08:36 PM
They can raise there rates just like any other business. If there to high due to inefficiencies, people will seek out alternatives.

I say eff'em they can go out of business. I'm tired of bailing out all these M'fers.