A few days ago APWU President Cliff Guffey in a message to its members said: “The USPS is under attack by anti-labor politicians and some sectors of the business community..” Guffey provided examples of anti-labor articles written by various news websites. Well, it appears the anti-labor groups are ‘pumping up the volume’ on misleading and inaccurate news reports on USPS. Just take a look at two recent editorials:
With each passing day, it is more obvious that the U.S. Postal Service’s business model is “not viable,” as a Government Accountability Office report put it last year. Having lost $8.5 billion in fiscal 2010, USPS expects to lose another $8.3 billion in fiscal 2011. Personnel accounts for 80 percent of the Postal Service’s costs, but its new 4 1 / 2-year agreement with a 205,000-member union cuts costs only $844 million a year. And USPS has to pay $6.7 billion to retiree health and worker compensation funds by Sept. 30. USPS, in short, could be unable to make payroll in the near term unless Congress acts. Yet the likeliest answer from Capitol Hill is to extend more aid, enabling USPS to limp along for a few more years, without attacking the Postal Service’s dysfunction at the roots.
The Washington Post use to be a reputable news outlet. But it seems with the increase of so many other news outlets on the internet the Washington Post has resorted to telling fairytales to maintain readership.
The Miami Herald has jumped into the fairytale business as well
Neither snow nor rain nor gloom of night stays the U.S. Postal Service from its appointed rounds, as long as it gets a giant bailout. Largely reduced to a delivery service for subsidized junk mail, crippled by sweetheart deals with its labor unions, the Postal Service is a good candidate for the dead-letter box. Instead, its managers are frantically lobbying for a federal bailout nearly twice the size of the one General Motors got.
Make that two bailouts. The Postal Service is not only trying to sneak a direct $75 billion payment out of the government without congressional approval, it’s also asking to be let off the hook for a $5.5 billion payment into a trust fund to guarantee the absurdly generous pension benefits it has promised its retirees. When the Postal Service can’t pay those benefits a few years down the line, who do you think will get the bill? Hint: Look in the mirror.
Adding $75 billion (plus who knows how much later when the Postal Service pensions implode) to the federal deficit at a time when federal debt is already bigger than half the entire output of the U.S. economy is a bad enough idea on its own terms.
More than half the Postal Service’s business these days is generated by junk mail that’s delivered at less than cost thanks to the lobbying prowess of the direct-mail industry. The percentage of junk mail is only going to rise as digital bill-paying gets safer and more efficient.