SubscribeUS Postal Service Needs Bailout
AP:
The post office will run out of money this year unless it gets help, Postmaster General John Potter told Congress on Wednesday as he sought permission to cut delivery to five days a week. "We are facing losses of historic proportion. Our situation is critical," Potter told a House panel.
The agency lost $2.8 billion last year and is looking at much larger losses this year. Reducing mail delivery from six days to five days a week could save $3.5 billion annually, Potter said.
Potter also urged changes in how the post office pre-pays for retiree health care to cut its annual costs by $2 billion.
If the Postal Service does run out of money, the lingering question, Potter told the House Oversight post office subcommittee, is which bills will be paid and which will not. Ensuring the payment of workers’ salaries comes first, he said, but other bills may have to wait.
My comment: To many legacy cost and much to bloated relative to the service they provide. Better to privatize and shrink it. However what will happen is higher postage and a bailout from Washington DC. Gotta protect those union potal worker jobs. Why is the government delivering mail anyway when we have UPS and FedEx?
John Polomny
The Real Deal
Loading ...
