USPS Exploring Additional Legislative Proposals to Address Financial Crisis

USPS NewsBreak -The following is an announcement  and Mandatory stand-up talk  by USPS to employees on August 11, 2011

USPS EXPLORING ADDITIONAL LEGISLATIVE PROPOSALS TO ADDRESS FISCAL CRISIS

The Postal Service is vital to the U.S. economy — and will remain so for years to come. It’s the cornerstone of a $1 trillion industry.

But USPS faces a deep financial crisis. If it was a private company, it would have filed for bankruptcy and gone through restructuring already — much like major automakers did two years ago.

USPS will be insolvent next month due to significant declines in mail volume and retiree health benefits prefunding costs imposed by Congress. The Postal Service is working with Congress and the Administration to address legislative changes that, if enacted, will help overcome its financial challenges.

Several alternatives — such as moving to 5-day delivery — already are being considered. Given the seriousness of its financial situation, the Postal Service also is exploring additional proposals to ensure it can be a financially stable provider of universal service well into the future.

First, the Postal Service is exploring a proposal to assume control of the postal retirement and health care benefit plans. It’s important for USPS to be able to better manage its health benefit and retirement costs because, combined, they account for one-third of its total labor costs.

USPS believes both programs can be administered more cost effectively than the current federal plans in which employees now participate. The Postal Service also believes it can best protect employees’ and retirees’ interests by managing these funds itself. Taking this step will help improve the Postal Service’s financial position and increase its stability.

Second, the Postal Service is exploring a proposal to accelerate its ongoing network optimization efforts. USPS already is consolidating facilities to eliminate excess capacity through Area Mail Processing studies, Delivery Unit Optimization, and other initiatives.

In the coming weeks, employees will be informed about proposals for a more streamlined processing and distribution network, using fewer facilities to handle reduced volume. Employees also will be hearing about proposals to revise service standards, to better reflect the capacity of a new, smaller network.

Finally, the Postal Service is reviewing with Congress additional ways to improve its workforce flexibility as it adjusts its networks.

The proposals being explored, if acted upon, are significant for every employee and are in the exploratory stage.

The Postal Service wants to ensure that employees are aware of these proposals.

Mandatory Stand-Up Talk
Aug. 11, 2011

USPS exploring additional legislative proposals
Financial crisis calls for significant actions

While the Postal Service remains the cornerstone of a $1 trillion industry, we are facing a deep financial crisis, despite many aggressive actions we have taken to turn the situation around. If we were a private company, we already would have filed for bankruptcy and gone through restructuring— much like major automakers did two years ago.

While our business is vital to the U.S. economy — and will remain so for years to come — we will be insolvent next month due to significant declines in mail volume and retiree health benefit prefunding costs imposed by Congress. We are working with Congress and the Administration to address legislative changes that, if enacted, would help to address our financial challenges.

You likely have heard about several things that are being considered, such as moving to 5-day delivery. Given the seriousness of our financial situation, the Postal Service is exploring additional proposals to ensure that we can be a financially stable provider of universal service well into the future.

While these proposals are being explored, I’m sharing information with you today, so that you understand from the Postal Service what you will likely hear about through other channels in the coming days.

I’d like to make you aware of several proposals the Postal Service is exploring. Your unions and management associations have been briefed on all of them. In addition, these ideas are being discussed with leaders in Congress, because some of them would require changes in the law.

First, the Postal Service is exploring a proposal to assume control of postal retirement and health care benefit plans. It’s important that we are able to better manage health benefit and retirement costs because, combined, they account for one-third of our total labor costs.

We believe both programs can be administered more cost effectively than the current federal plans we now participate in. We also believe we can best protect our employees’ and retirees’ interests by managing these funds ourselves. This will help our financial position, and increase the Postal Service’s stability.

Secondly, the Postal Service is exploring options to accelerate our ongoing network optimization efforts. You already know we are consolidating facilities to eliminate excess capacity, through Area Mail Processing studies, Delivery Unit Optimization, and other initiatives.

In the coming weeks, we will inform you about proposals for a more streamlined processing and distribution network, using fewer facilities to handle the reduced mail volume we continue to see. You also will hear about proposals to revise service standards to better reflect the capacity of a new, smaller network.

And lastly, the Postal Service is reviewing with Congress additional ways to improve our workforce flexibility as we adjust the size our networks to meet operational needs and the changing marketplace.

The options being explored, if acted upon, would have a significant effect on all of us, and you no doubt have questions. Please remember that these proposals are still in the exploratory stage. As I said earlier, we believe it is important for you to be aware of these proposals.

We will continue to keep you informed as we intensify our work on the actions necessary to meet the ongoing economic and financial challenges facing our business and our industry.

Thank you for listening and — especially in these times of ongoing change — thank you for the great job you are doing every day.

15 thoughts on “USPS Exploring Additional Legislative Proposals to Address Financial Crisis

  1. the bottom line line is many republicans want to privatize the postal service.look at all the former usps officials involved in presort mail operations.the postal accountability and enhancement of 2006 was designed by the republicans in congress to bankrupt the postal service. if the usps privatized service standards will be poorer than today. you will be lucky to get mail delivery 3 times a week.in certain areas you will not get mail at your residence you will have to go cluster box a great deal in distance from your home.if you live in a rurual area good luck at getting mail service at all

  2. Just what I want. An organization that can’t manage itself managing my retirement and health benefits.

  3. get rid of the health plans and retirement plans so we can manage it better. We can do like the auto industry and the others. Give us bailouts so we can go on cruises and buy more houses and boats. Let us have our own retirement plans so we can take all the money and stuff our pockets and have zero left for the workers. As long as the rich get richer who cares about anybody else.

  4. I’ll go for any incentive, it’s not the money, it’s my excuse to leave after 36 years
    and start a new life. I just won’t go with out one, nope!

  5. Looks like a perfect storm is brewing for postal employees.
    Postal unions have little clout these days in congress, despite large money contributions to candidates. Incredibly, NALC actually gave Issa $10K of union funds before the last election.
    Anti-union fervor is at a fever pitch and republicans in congress hate government workers.
    The math seems simple. The gravy train is over.

  6. Congress is hiding something!! Why won’t they amend the pre-funding requirement. We’re the only government agency and only company in the U.S. that has to do this!! My question is…. WHY????? Does Congress dip into our money to help balance the books?? I wish they would investigate this…

  7. Want to save money? Cut jobs at HQ, get rid of useless supervisors, and follow the CBA. That would put us in the black. Worry about the customer, not stupid studies and unrealistic goals.

  8. I am 55 years old with 31 years service. If I stay another 7 years, that’s roughly $560,000.00. How much could the Postal Service save, if I could retire now with no penalty? Please let me go.

  9. FEAR! & LIES! Thats how all of the Empirers control the masses throughout History!
    The Postal Service has been a cash cow for the government for years! They now have to be accountable for their actions in these sad economic times.
    So they dump on the people who could least afford it, the workers! With the new apwu contract that was signed, they could hire workers at less than half the cost of the present workers.
    Give early out incentives to reduce the cost of present workers and then hire the new workers. With the current economic times us old guys will just hang on at 2% a year! As I’ve said before; Pay Me Now! or Pay Me Later!

  10. This whole crisis brings back memories of the invasion of Iraq and the search for Weapons of Mass Destruction (WMD’s).

    Just keep repeating the same lies over and over and eventually you can have many people believing your “facts” which allow you to take action in the fashion you want.

    In this case it’s privatization.

  11. Who writes these ,do they not get the facts that we have over payed the health and retirement benefits and we would just like the over payments to stop.

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