Postal Service may close entirely this winter as billion dollar losses mount

[_mArs_]

The U.S. Postal Service may be forced to close this winter after being unable to make a $5.5 billion repayment, it has been claimed.

The post office has already been subject to painful cost-cutting measures during attempts to erase a deficit which will reach $9.2 billion this fiscal year.

The agency has already pushed for elimination of Saturday deliveries, laying off nearly one fifth of the work force and closing up to 3,700 postal locations.

Postmaster general, Patrick R. Donahoe, has now described the situation as 'extremely serious' and warned the agency will be forced to default if Congress doesn't take action to stabilize its finances.

Bosses have now laid off 120,000 workers - nearly one-fifth of the Postal Service work force, despite a no-layoffs clause in the unions' contracts.

The huge popularity of the internet has led to people and businesses sending far less conventional mail, while the recession also saw less business mail being sent.

Officials had previous said they had planned for a decrease in first class mail, but that it had occurred much more rapidly than expected.

The Senate Homeland Security and Governmental Affairs Committee are to meet to discuss the financial problems of the Postal Service on Tuesday.

 

[survival]

The huge popularity of the internet has led to people and businesses sending far less conventional mail, while the recession also saw less business mail being sent.

Really?

With internet commerce the need to send deliveries across the world rocketed.

Oh yeah, I forgot how USPS sucks for international mail (packages).

For people living outside the USA this might be good news as retailers previously using USPS will have to move to another carrier and most of the times that will be good news for us.

Take this as a RANT.

I'm sorry that a lot of people will be laid off as result of this.

 

[_mArs_]

I'm pretty sure our government will come up with something to solve the problem... and of course tax payers will have to pay for it.

 

[Delta Force]

Congress as dumb as they are will not allow this to happen!

 

[mich29]

I'm pretty sure our government will come up with something to solve the problem... and of course tax payers will have to pay for it.

sadly this sound about right

 

[bigbumpkin]

ITS A LIE!!!!!

The gvmnt requires the post office to PREFUND THE RETIREMENT OF all ITS EMPLOYEES IF they would simply give the money back the p.o. would be solvent https://news.fidelity.com/news/news.jhtml?cat=Economy.US&articleid=201108121516CNN_____MONEY____-2011-08-12-news-economy-post_office_layoffs-index_htm&IMG=N go to the heading that says upcoming crisis start of second paragraph states that po required to set aside 5.5 billion per yr for retirements WTF!!! been that way since the 80's po asked for this money back CONGRESS MIS[PLACED IT !!!

this is also why social security is doomed

 

[TheDarkHalf]

This is no lie guys. I mean honestly, it was only a matter of time before this happened. We are currently in the midst of a digital transition. A lot of print and physical media is just going the way of the dinosaur. They are old technologies that are being phased out as more and more people begin to have access to digital mediums for sending and receiving mail. As time goes on, the technology continues to improve and become cheaper. Eventually it will become so cheap that it will make sense to replace the physical mail service all together. We will still have UPS, FEDEX, etc for sending physical objects...but we are becoming so digitally connected that why bother sending mail to someone's house when you can just send it to their email address that is easily accessible on their PDA?

Text books are also seeing a similar transition. As the cost of Tablets decline more and more companies will start developing their books in a digital only format as well as seeing children/teens/adults carrying those devices. Developing things in a digital only format reduces overhead since you don't need all the paper, machines, people, etc to print a book.

And doing all this also does the environment a service by reducing waste.

You'll see this with vehicles too at some point. The transition will be from unautomated to fully automated. We might see it in our lifetime. 75-100yrs down the road. (no pun intended).

 

[_mArs_]

great feedback on this article, you guys... thanks for participating!

 

[EasyEJL]

Congress as dumb as they are will not allow this to happen!

comical but true. At least with them bailing the railroads out annually, I can see some case for needing rail service as part of national security. Logistics of moving around heavy equipment like tanks, the space shuttle, etc can't be accomplished easily any other way. However the post office? If people aren't using them, then they need to adapt. I don't see anywhere in the constitution where there's a right to a government funded postal service.

 

[TheDarkHalf]

However the post office? If people aren't using them, then they need to adapt. I don't see anywhere in the constitution where there's a right to a government funded postal service.

Agreed. Pretty much the same thing that print media/newspapers are going through.

 

[MidwestBeast]

Just wait until the government starts charging you 44 cents (or whatever it is now) to send an e-mail.

 

[TheDarkHalf]

Just wait until the government starts charging you 44 cents (or whatever it is now) to send an e-mail.

Fortunately, nobody has ownership on email and there would be ways to circumvent that

 

[MidwestBeast]

Fortunately, nobody has ownership on email and there would be ways to circumvent that

lol I was pretty much joking, though I wouldn't put it past them trying to come up with a unified way to charge extra for e-mail. Or maybe internet prices will just skyrocket.

Basically, I just know we'll pay one way or another. Ultimately, the taxpayer loses.

 

[_mArs_]

^this

 

[T-AD]

Call me old fashioned, or call me Ishmael, or whatever, but I do kinda like getting actual mail-mail when I get home from work. Yeah, it's usually bills and junk, but it's something to look forward to! lol

My problem is this... I don't like the cost of mailing something, and I would MUCH rather pay bills online. I've run into problems already when a company would expect you to pay online but never send you an invoice or bill in the mail, despite you specifically REQUESTING them to do so. I've had this happen with my old Circuit City card, now Best Buy, through Chase (I believe). The company would go for months without sending me anything in the mail, then they'd start the delinquency calls. My online account for the card has been locked out for YEARS now due to me not using it (sending checks, or paying in the store which was what I usually did when they were open). They wouldn't let my account open again, so I couldn't get on to pay it. I told them about their mailing problem, they claimed that they sent it, and I just never got it. We stack up all of our bills in chronological order and pay them. If it ain't in the pile, it isn't getting paid. They blamed the post office. I could see that happening...

My mailman is the brother of my dad's brother's wife, which makes him just outside of family. He's delivered to my neighborhood since I was in highschool. He's about as stoned as they come, as lazy as anyone, and I swear he doesn't ever deliver anything on time. In this day and age, with all the junk mail out there, and all the bills n crap we get in our box daily, there's no reason that we should EVER go a day without mail. Sometimes, when it's nice out, we do... laziness takes our mail away, or something.

I guess my rant is more about the individual mail carriers than the system itself. Solidify the routes, create more jobs to get things done more efficiently and honestly, and I think they'd do a LOT better. The USPS is still faster and cheaper to send domestic packages than UPS or FedEx, and I still use them for all my mailing. The only time they are cheaper is if you have a corporate account.

/rant.

 

[_mArs_]

those are great points, Tim.

i was used to getting my mail at around 10 am... for years this was the schedule... then one day it started coming after 3pm -- they made me angry, i guess they either laid people off or changed routes/schedules

 

[Delta Force]

I recall during the recession there were talks of cutting back mail days from 6 to 4 or 5 in order to reduce cost, but they had to get congress approval, not sure they ever had a hearing!

 

[Delta Force]

comical but true. At least with them bailing the railroads out annually, I can see some case for needing rail service as part of national security. Logistics of moving around heavy equipment like tanks, the space shuttle, etc can't be accomplished easily any other way. However the post office? If people aren't using them, then they need to adapt. I don't see anywhere in the constitution where there's a right to a government funded postal service.

I dont know the direct relationship of the USPS to the US government but I've always heard its a federal offense to tamper with US mail. Hence federal property!
They're also under influenced/controlled by US congress!

 

[bigbumpkin]

those are great points, Tim.

i was used to getting my mail at around 10 am... for years this was the schedule... then one day it started coming after 3pm -- they made me angry, i guess they either laid people off or changed routes/schedules

I work in a station of 34 employees with 6 supervisors tell me where the waste is ???

we actually have 38 routes but 4 are PERMANATELY VACANT diveded up as extra work everyday

as lay offs go the carrier is about the only safe guy the inside workers r in dire straits---last yr nation wide 150 thousand laid off

also ponder how this helps the economy IF SATURDAY DELIVERY IS STOPPED 20 % of the carrier work force nation wide is eliminated

 

[bigbumpkin]

I recall during the recession there were talks of cutting back mail days from 6 to 4 or 5 in order to reduce cost, but they had to get congress approval, not sure they ever had a hearing!

it's actually in an amendment or something --they have to amend the constitution again to change this
somehow thats seems like something low on their list of priorities...at least it should be in my mind

like baseball and sports juicers ...REALLY THIS IS WHAT CONGRESS SHOULD BE DOING???

 

[bigbumpkin]

also not meaning to offend anyone sorry if I have i am trying to let u see what i c everyday

 

[_mArs_]

i appreciate your feedback on this topic, bigbumpkin

 

[mich29]

good points here

 

[MidwestBeast]

like baseball and sports juicers ...REALLY THIS IS WHAT CONGRESS SHOULD BE DOING???

Amen, brother. That whole thing is beyond a joke and is absolutely irritating. It just goes to show how childish, young and immature our nation is in some respects.

also not meaning to offend anyone sorry if I have i am trying to let u see what i c everyday

I don't find what you've said to be offensive at all and in fact, I think it's great to have the perspective of someone who actually works within this system to be able to offer input.

 

[youngandfree]

I work in a station of 34 employees with 6 supervisors tell me where the waste is ???we actually have 38 routes but 4 are PERMANATELY VACANT diveded up as extra work everydayas lay offs go the carrier is about the only safe guy the inside workers r in dire straits---last yr nation wide 150 thousand laid offalso ponder how this helps the economy IF SATURDAY DELIVERY IS STOPPED 20 % of the carrier work force nation wide is eliminated

I posted the same scenario in another thread. A couple I go church with are carriers. Their office has about 10 vacant routes. Their schedule every week is 5 days 10hrs and 1 day/week they can only work 8. So they are paying 50% more to cover those routes as carriers are on OT. If they would hire more carriers, and get rid of some middle management, they would save money. My buddy says there are too many managers sitting around or out following them on their routes. He said the managers walk behind them counting their steps and calculating steps/hr. If one hour they are less, they try to figure out why and how to get more steps/hr. Unbelievable.

 

[Delta Force]

I posted the same scenario in another thread. A couple I go church with are carriers. Their office has about 10 vacant routes. Their schedule every week is 5 days 10hrs and 1 day/week they can only work 8. So they are paying 50% more to cover those routes as carriers are on OT. If they would hire more carriers, and get rid of some middle management, they would save money. My buddy says there are too many managers sitting around or out following them on their routes. He said the managers walk behind them counting their steps and calculating steps/hr. If one hour they are less, they try to figure out why and how to get more steps/hr. Unbelievable.

Talk about micro managing! I could not stand it! I'd turn around and bitch slap them!

 

[MidwestBeast]

Talk about micro managing! I could not stand it! I'd turn around and bitch slap them!

lol you're not kidding; that's beyond ridiculous. That being said, if I were a carrier, I'd purposely take different sized steps, throw in a long jump every once in a while, etc., just to skew results

 

[Delta Force]

lol you're not kidding; that's beyond ridiculous. That being said, if I were a carrier, I'd purposely take different sized steps, throw in a long jump every once in a while, etc., just to skew results

Yeah, I'd wear different size shoes too!

 

[MidwestBeast]

Yeah, I'd wear different size shoes too!

lol! I actually thought that, but then in my head it didn't seem like it would make a difference. How about a different size on each foot?

I'm thinking running in circles every once in a while, too. Maybe engage in some Indian runs with the supervisor lol

 

[EasyEJL]

I posted the same scenario in another thread. A couple I go church with are carriers. Their office has about 10 vacant routes. Their schedule every week is 5 days 10hrs and 1 day/week they can only work 8. So they are paying 50% more to cover those routes as carriers are on OT. If they would hire more carriers, and get rid of some middle management, they would save money. My buddy says there are too many managers sitting around or out following them on their routes. He said the managers walk behind them counting their steps and calculating steps/hr. If one hour they are less, they try to figure out why and how to get more steps/hr. Unbelievable.

but.... in the USPS, labor cost is 83% of costs. At UPS its right around 50%, at fedex even lower, right about 35%. Is some of that middle management costs? sure, but more is overall inefficiency. The fact that their hands are tied on the one side by not being able to raise rates, close locations, etc without congression approval and then tied on the other side by the union makes it nearly impossible for the post office to be successful as a business.

 

[Delta Force]

lol! I actually thought that, but then in my head it didn't seem like it would make a difference. How about a different size on each foot?

I'm thinking running in circles every once in a while, too. Maybe engage in some Indian runs with the supervisor lol

yeah, doing circles and a few steps backwards would be a good strategy. hahaha

 

[bigbumpkin]

haha get this I put ankle weights on under pants once to slow myself down lol

 

[Flaw]

They could solve this problem if they start delivering bigger packages. The flat fee boxes was a great idea which has probably given them a lot more revenue but they just aren't big enough to compete.

 

[bigbumpkin]

They could solve this problem if they start delivering bigger packages. The flat fee boxes was a great idea which has probably given them a lot more revenue but they just aren't big enough to compete.

that yes and they need to appeal to the older citizens who still like "real" mail and create an add campaign showing younger generation older people opening mail with photos ect and seeing how it touches them

 

[vinnythestick]

Well today we might joke and laugh at the expense of the USPS but historically the USPS was an amazing and important service.

The USPS is an independent agency that doesn't collect taxpayer dollars. Unlike the wasteful military, the USPS actually has to try to keep a budget, obviously they FAIL.

Unlike UPS and Fedex, the USPS is required by law to deliver mail to anyone, anywhere in the US. So if I decide to send a box of t-shirts to my friend in the middle of nowhere Alaska, they have to do it even if they lose profit.

To quote thedarkhalf, its been pretty obvious that this was going to happen. What the USPS needs is a serious reorganization, but as with reorganizing anything in the govt. the red tape to go through is friggin huge.

Umm... as I said earlier, the USPS isn't historically given tax dollars, but regardless I dont really understand this "taxpayer" will pay mentality? I mean every single one of us is a taxpayer, so we all pay together. And when you consider everything the USPS has done for us as a country and as people, I think we should give the industry some respect. It took a lot of dedication to ensure that every single person in the entire country would receive mail. It was a very ambitious program and it worked amazingly.

I think it's sad and dissapointing that nobody gives a crap. They use these terms generation X and generation Y but when we went through the computer revolution we went through more like generation A to generation 1. We are a completely different civilization now...

We are nowhere near the peak of our technological prowess. The world is definitely changing dramatically over the next 40 years. I think as we remove and replace work processes, we should definitely appreciate the difficulty of making this transition and show compassion to the outdated jobs and people, not just laugh at them.

Imagine if I'm a 35 year old and I've worked for the USPS for the last 15 years. I might not have a job in February and I dont know what the hell to do about it. I'm not good with computers, and I dont have a degree and ONE HUNDRED AND FIFTY THOUSAND of my fellow employees just lost their jobs. My situation looks very sad.

We knew this was coming and no one prepared for it. Just like we know the computer is going to take more jobs away from us in the future but we wont prepare.

Congress should have dealt with this 15 years ago.

Funny, I never paid attention to the USPS until now...

 

[vinnythestick]

I posted the same scenario in another thread. A couple I go church with are carriers. Their office has about 10 vacant routes. Their schedule every week is 5 days 10hrs and 1 day/week they can only work 8. So they are paying 50% more to cover those routes as carriers are on OT. If they would hire more carriers, and get rid of some middle management, they would save money. My buddy says there are too many managers sitting around or out following them on their routes. He said the managers walk behind them counting their steps and calculating steps/hr. If one hour they are less, they try to figure out why and how to get more steps/hr. Unbelievable.

Sounds like Lean 6 Sigma. It's a private company attempt to standardize common sense.