The financially struggling U.S. Postal Service said Wednesday it will stop delivering mail on Saturdays but continue to disburse packages six days a week, an apparent end run around an unaccommodating Congress.
The change continues the shrinking of what used to be one of America’s most visible and powerful agencies, one that put the presence of the federal government in some of the smallest towns across the nation. The postmaster general had such powers of job patronage that the position — once part of the president’s Cabinet — was a coveted one.
In November, it reported a record annual loss of $15.9 billion for the last budget year and forecast more red ink in 2013, capping a tumultuous year in which it was forced to default on billions in retiree health benefit prepayments to avert bankruptcy.
The agency’s biggest problem — and the majority of the red ink in 2012 — was not caused by reduced mail flow but rather by mounting mandatory costs for future retiree health benefits, which made up $11.1 billion of the losses. Without that and other related labor expenses, the mail agency sustained an operating loss of $2.4 billion, lower than the previous year.
Via: http://www.japantimes.co.jp/news/2013/02/08/business/u-s-to-stop-saturday-mail-to-trim-costs/
Btw, this guys also rised shipping costs :-)
They are selling forever stamps that aren't really forever...
The Republicans pushed that Health Care and Pension piece of shit through years ago and now scream and yell that it can't stay above water. Funny and sad at the same time.
Republicans have nothing to do here.
It is in fact true that the Republicans in Congress passed the law on the way out the door before the new Congress came in. No business would ever create such a damaging financial move. Name another company that would decide to fund 75 years of Retiree Health Care Benefits in a 10 year window. The Republicans want to privatize everything and are anti Union. They do things like this all the time. They are the party that supports big business in this country.
Also the other issue is that Congress is holding the Postal Service back from modernizing and being able to offer more services that could generate income. The Republicans block this because they receive money from UPS and Fedex who want the USPS gone. Also the Republicans hate Unions because they support the Democrats politically.
And? This bill is not cause of issues. Otherwise US goverment will pay all this money (read - print our of air).
Huge issues with retirement benefits are common for all companies.
Fun thing is that both R & D have same owners. And all issues happening are just systematic issues.
@Vitaliy_Kiselev, there are in fact real differences in terms of how both parties make law. Yes they are all backed by big money, but the ratios are completely different. The Democrats are not trying to kill Unions or block people from being able to vote. The Republicans have been systematically destroying Unions for decades. They've been trying to privatize everything and get rid of Social Security, Medicare and Medicaid. They protect Subsidies for Corporations, Big Farma, Big Oil as well. They support income inequality in salaries and in the tax code as well. They've resisted Universal Health Care. Every move they make is to only support big business. Sure Democrats have big business supporters, but overall the main thrust of their policies are not aimed at making Big Business even more dispropotionatly richer, while making the average person poorer.
NAFTA is North American Free Trade Agreement, has no relation to Chinese products :-)
The Democrats are not trying to kill Unions or block people from being able to vote. The Republicans have been systematically destroying Unions for decades.
Can you show me some chart depicting people participating in unions for last, say, 30 years?
but overall the main thrust of their policies are not aimed at making Big Business even more dispropotionatly richer, while making the average person poorer.
Last time I checked I did not find evidence to this. I mean here public statistics since 80s.
I know it's North America but it really got the ball rolling for us to import cheap crap and export nothing.
If you look back to statistics it happened long time before NAFTA.
What's the most probable outcome? Kill the pension and health benefits for retirees and downsize USPS operations?
So making the USPS, who IS NOT funded by taxpayers but receives billions in continued bailouts and subsidies and still can't seem to make ends meet, pay for their own retirees ridiculous benefits is a "piece of shit?" UPS and FEDEX can make a PROFIT shipping packages, have some of the highest ratings by employees, pay some of the best wages and benefits for private companies and still offer retirement benefits, but the USPS can't seem to stop suckling the government teat and it's the fault of the "republicans" (nevermind that congress is a conglomeration of various political views and thus the "democrats" would have also needed to sign off on this measure..)? I actually think that forcing the USPS through FEHB shows everyone that it's incapable of making a balanced budget, especially for the future. FEHB makes the USPS pre-pay health care for pre-retirees. How is that a bad thing for the retirees? With an aging work force, and less and less revenue, where are these retirees going to get this money, if not from a pre-paid system? Are they just going to keep borrowing more and more forever? The post office is running a DEFICIT and has massive DEBT. You can't get blood from a stone and retirees won't get jack shit in the future if there is NO MONEY. Our government is BROKE. Our birth rate is going down. Our main group of taxpayers are starting to retire. Pretty soon there will be a LOT LESS tax revenue to keep giving to the USPS in return for shitty service and a whole lot of attitude.
The main problem is not "republicans" or even "democrats". It's that the service that the USPS provides is not important anymore but instead of scaling back or adapting like any real company would have done, they act like it's business as usual and keep handing out ridiculous pensions, benefits and pay for minimal useful work and they don't feel any pain because the government keeps handing them money without any real ramifications for not adapting to the times. If they were a true private company, they would have died a long time ago. Unfortunately for the taxpayer, there is still some kind of silly nostalgia over the postal service that keeps us from just letting it go.
The main problem is not "republicans" or even "democrats". It's that the service that the USPS provides is not important anymore but instead of scaling back or adapting like any real company would have done, they act like it's business as usual and keep handing out ridiculous pensions, benefits and pay for minimal useful work and they don't feel any pain because the government keeps handing them money without any real ramifications for not adapting to the times. If they were a true private company, they would have died a long time ago.
We had discussion about it. Post represents core social service. And privatization, declining to finance deficits is real true sign of corporate goverment.
As for pensions. They are not ridiculous. If now manufacturing had been working perfectly, education had been wastly improved, energy will be very cheap, etc, etc no one will call retire money big or similar. But this is not the case. Current pension system will stop working completely, and all will fall back to usual state it had been thousands of years - children support their parents.
Honestly, I haven't mailed a letter in probably 5+ years. Everything is online.
And think about it.. The USPS licensed The Simpsons for stamps and actually lost money.. The Simpsons. The most popular show in history and somehow the USPS lost money on the deal.
And pulled themselves up a bit? From -5.7Billion to -5.4Billion? Good job USPS, only 5.4Billion more to go before breaking even..
And the "pension" system is flawed to begin with. You don't pay anything into it but expect to get money out of it. The flaw is the same as any "Ponzi" or "Pyramid" scheme, that you need a continuous influx of new money in order for the previous investors to make any money. As the bulk amount of income shifts from being "new" money to paying retirees as the bulk of your workforce retires and your new workforce must downsize due to the service being rendered obsolete, then you stop getting new money to pay for the old retirees. So where does the money come from when you have no more revenue?
The government saw this coming a long time ago, that's why there is the IRA/401K system and even tax breaks for these systems. Because in these systems you invest your OWN money for retirement, not count on some future profit of the company to pay for you.
Union participation is way down and has tracked right along with income disparity. As we've lost Union jobs the average salary in the US has stopped improving along with the improvements in productivity and corporate profits, which are at all time highs, while incomes are at all time lows for the common worker. The thing is that when Unions are strong EVERYONE sees improved pay and working conditions.
The US Social Safety Net is not a ponzi scheme and it's not going to go away. If we had listened the Privatization proponents, did away with Social Security and everyone was invested in the Banks and stock market no one would have anything at all right now. The IRA/401k system is a farce for the vast majority of people here.
The USPS doesn't receive any tax dollars. They are 100% funded by their own sales. Where does this hatred for the USPS come from anyway. Just because many people no longer see a reason for the USPS doesn't mean they are right. If you live in rural areas the USPS is a lifeline. If you take away the stupid Republican requirement to prefund the benefits for 75 years the financial issues for USPS are much smaller and they could modernize to get back to being a profitable service.
The USPS hires the most Veterans and many minorities as well, since they don't have the problems with racial injustice that private companies have. All of these things may seems small to some, but they are systematic problems that don't have easy solutions. The USPS is not a problem in the US fiscal picture.
Report on the state of Union Worker participation in the US work force.
http://www.bls.gov/news.release/union2.nr0.htm
Highlights from the 2012 data: --Public-sector workers had a union membership rate (35.9 percent) more than five times higher than that of private-sector workers (6.6 percent). (See table 3.) --Workers in education, training, and library occupations and in protective service occupations had the highest unionization rates, at 35.4 and 34.8 percent, respectively. (See table 3.) --Black workers were more likely to be union members than were white, Asian, or Hispanic workers. (See table 1.) --Among states, New York continued to have the highest union membership rate (23.2 percent), and North Carolina again had the lowest rate (2.9 percent). (See table 5.)
As I said before the Republicans want fewer Union Employees and have been working towards this goal for decades. They've been successful in the private-sector, but the last remaining stronghold is the public-sector and thus the reason they want the USPS to die. The USPS represents a huge portion of Union workers. Republican Governors have passed "Right To Work" laws which weaken Unions and have been highly successful. All of this means workers no longer have the power to fight for better wages or work conditions and as such those standards have fallen and worker salaries have remained flat for years while corporate profits have skyrocketed.
We don't have to kill the USPS in order to make it profitable. If that was the aim of the Republicans they could pass laws allowing the USPS to add new services, since in many rural areas customers would welcome the convenience of being able to take care of more than just getting postage at their local post office. As I said that's not the aim of the Republicans at all.
Another issue is that cutting jobs in the Public-sector has meant higher unemployment rates for Veterans and Blacks since the Government Jobs have been a haven for that segment of the workforce. Due to the fairness of the government hiring practices it has long been the one area that Blacks and Veterans weren't discriminated against and thus they could get good jobs. The same goes for Union Jobs in general. It had been a great equalizer against Private-sector bias.
Can you find charts I asked? As I feel that you want to substitute actual result to your own interpretation and expectations.
The US Social Safety Net is not a ponzi scheme and it's not going to go away. If we had listened the Privatization proponents, did away with Social Security and everyone was invested in the Banks and stock market no one would have anything at all right now. The IRA/401k system is a farce for the vast majority of people here.
US Pension system in long time underwater. And it'll end in collapse. Same as Japanese one, btw.
@Vitaliy_Kiselev, Here is a chart that shows the decrease in Union Worker participation over the years in the private-sector.
http://www.publicpurpose.com/lm-unn2003.htm
Remember that the process of shipping US Manufacturing jobs overseas has been going on for a long time. The Public-Sector attack by the Republicans has simultaneously been going on but has recently been gaining steam with new laws they've been passing.
Can you show me on this charts data that back your points.
@Vitaliy_Kiselev, i'm not sure what you're asking. Do you mean to show you when certain policies were enacted which are the cause of the decline?
The Democrats are not trying to kill Unions or block people from being able to vote. The Republicans have been systematically destroying Unions for decades.
but overall the main thrust of their policies are not aimed at making Big Business even more dispropotionatly richer, while making the average person poorer.
I mean this points.
@Vitaliy_Kiselev, it's common knowledge that very few Democrats have introduced laws that Break up Unions or take away voting rights as the Republicans have done to a very large degree. There are afew Democrats who have been complicit in this over the years, but that is not the historical norm nor the current stance.
During the Clinton Presidency there was an effort by his administration to tack towards the right and do things that Democrats had not been known to do historically. Those things had a detrimental effect on the middle class. At any rate under mostly Republican direction, Corporate Tax rates have been declining, Corporate Tax loopholes have increased, Wall Street went unregulated, Union busting laws are being passed like wild fire, jobs have been sent out of the country and income inequality has expanded.
Actions taken under the presidencies of Reagan, Clinton and Bush are part of the reason for the steep declines in Union participation. Those actions along with Corporations doing all they can to reduce Union membership have worked quite well. In the last few years there have been a rash of laws passed to try and break unions.
All you have to do is Google Anti Union Bill and you'll see tons of info showing what i'm talking about.
All I asked is to illistrate your points on this charts.
May be I am looking bad, but I do not see anything what back your points.
@All watch thom hartmann if you want the straight poop on this. I have limited memory, but I remember the basic poison in the republican bill was not in making them pay for retirement benefits, as that is normal and was already laid out. The poison was in that they had to pay for something like the next 50 years of benefits in 5 years. Again my memory isn't great so please check Thom Hartmann or other reputable resources for the exact numbers. Whatever the numbers, this was the only government agency asked to pay such a large span of benefits in such a small time frame.
We have a combination of factors here that have come together to fight Unions. Starting in the 1900's we have NAM (National Association of Manufacturers), CUE (Council on Union Free Environment) who fought against Prez. J. Carter's labor law reform bill that was designed to make union-organizing efforts more successful by, among other provisions, allowing for elections to occur within 15 days of filing a petition. Now over the last years we have ALEC (American Legislative Exchange Council) Funded by big Corporations, they've been successfully pushing "Right To Work" laws that strip Union Rights.
"Jan. 2013 - Pennsylvania Republican Rep. Darryl Metcalfe has introduced so-called "right to work" legislation that would cripple state labor unions by allowing non-union members to free-ride -- benefiting from union representation, including higher wages and benefits, without paying the costs of that representation. For decades, right to work laws were used in southern states to bust unions and keep wages low."
"Jan 28, 2013 - Michigan Republican Governor Rick Snyder did an end-around on any potential for unions to win a lower-court injunction against the state's new right-to-work laws."
"Dec 2012 - Wisconsin Republicans went all out. Conservatives around the country salivated with envy as Gov. Scott Walker, with dizzying speed, pushed through seemingly every policy that the national conservative movement holds dear. The conservative appetite is far from sated, however. Many Republicans, as well as their allies in the business community, yearn for more. They want steeper tax cuts for businesses and individuals; they want a "right to work" law that would weaken unions in the private sector; they want further expansion of voucher schools -- even if it means cutting more funding from public schools."
I can pull out many more similar instances. Over the last few years Republicans have been pushing these laws thru wherever they have state control.
All of this stuff really started 30 years ago.
Prez Ronald Reagan - 1981 More than any other labor dispute of the past three decades, Reagan’s confrontation with the Professional Air Traffic Controllers Organization, or Patco, undermined the bargaining power of American workers and their labor unions. It also polarized our politics in ways that prevent us from addressing the root of our economic troubles: the continuing stagnation of incomes despite rising corporate profits and worker productivity. Workers in the private sector had used the strike as a tool of leverage in labor-management conflicts between World War II and 1981, repeatedly withholding their work to win fairer treatment from recalcitrant employers. But after Patco, that weapon was largely lost. Reagan’s unprecedented dismissal of skilled strikers encouraged private employers to do likewise. Phelps Dodge and International Paper were among the companies that imitated Reagan by replacing strikers rather than negotiating with them. Many other employers followed suit. By 2010, the number of workers participating in walkouts was less than 2 percent of what it had been when Reagan led the actors’ strike in 1952. Lacking the leverage that strikes once provided, unions have been unable to pressure employers to increase wages as productivity rises. Inequality has ballooned to a level not seen since Reagan’s boyhood in the 1920s.
As I said it was the Reagan, Bush and to a lesser extent Clinton policies that set the stage for the financial problems we have now.
Economic plans, taxes, and deficit Reagan implemented policies based on supply-side economics and advocated a laissez-faire philosophy,[13] seeking to stimulate the economy with large, across-the-board tax cuts.[14][15] Reagan pointed to improvements in certain key economic indicators as evidence of success.[3] The policies proposed that economic growth would occur when marginal tax rates were low enough to spur investment,[16] which would then lead to increased economic growth, higher employment and wages. Reagan was ardently opposed to raising income taxes. During his presidential tenure, the top federal income tax rates were lowered from 70% to 28%.[17] In order to cover the growing federal budget deficits, the United States borrowed heavily both domestically and abroad, raising the national debt from $700 billion to $3 trillion.[18] Reagan described the new debt as the "greatest disappointment" of his presidency.[18] [edit] Free trade Reagan was a supporter of free trade.[19] When running for president in 1979, Reagan proposed a "North American accord", in which goods could move freely throughout Canada, the U.S. and Mexico.[20] Largely dismissed at the time, Reagan was serious in his proposal. Once in office, he signed an agreement with Canada to that effect.[19] His "North American accord" later became the official North American Free Trade Agreement (NAFTA), signed by President George H. W. Bush and ratified by President Bill Clinton.[20]
If you look at the history of the US financial situation it tracks downward almost precisely with the policies from the Reagan, Clinton and Bush years. Clinton tried to act like a Republican in many ways as he made deals with the Republican controlled House that eventually ended up hurting the country after Bush got thru with continuing the Reagan blueprint. All the deregulation, shipping jobs out of the country caused a massive decrease in the Union membership.
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