U.S. Postal Service reports $3.5-billion loss, sees more red ink in future

[The Northerner]

The agency predicts a cash shortfall for 2011 after net losses in 14 of the last 16 fiscal quarters.

WASHINGTON — The U.S. Postal Service reported a quarterly net loss of $3.5 billion on Thursday and said it will likely have a cash shortfall going into 2011.

The agency, which delivers nearly half the world's mail, has reported net losses in 14 of the last 16 fiscal quarters.

Revenue in the third quarter, which ended June 30, fell $294 million from a year ago, while expenses were $789 million higher at $19.5 billion, due largely to higher workers' compensation costs and retiree health benefits.

"Given current trends, we will not be able to pay all 2011 obligations," said Joseph Corbett, the agency's chief financial officer.

Cash flow seems on track to handle 2010 operations, Corbett said, but it is uncertain whether sufficient liquidity will be in place for 2011 after the agency must make a $5.5 billion payment on Sept. 30 to prefund retiree health benefits.

Read more: http://www.latimes.com/news/nationworld/nation/la-na-postal-losses-20100806,0,1260282.story

[DJ13]

1. How are they not profitable after repeated postage hikes?

Either they're being mismanaged, or something is wrong with their pay structure.

[Occulus]

4. The USPS is institutionally mismanaged

The vast majority of supervisors in my facility have no experience using the sorting equipment and are thus free to make unrealistic/impossible demands. This extends all the way up through the district (which covers multiple states).

Postal management is, broadly speaking, clueless and incompetent. There are, as always, exceptions, but not enough of them to make a real difference.

[GreenPartyVoter]

19. My dad was a rural route carrier and he was frequently disgusted with the mismanagement.

[grantcart]

11. Nothing is wrong with their pay structure - Postal employees don't make very much

here are the problems


1) Unlike all other governmental units the Post Office is required to account for all of its retirement obligations now. Other agencies pay as they pay out. This means that the Post Office prepays substantailly more for its retirement fund.

2) The Post Office is required to keep non profitable offices in operation. Particularly in rural areas Congressman, usually Republicans who are complaining about fiscal responsibility require that they maintain offices in rural areas that have little volume. These areas could be handled by other offices with rural carriers.

3) The Post Office is required to maintain levels of service. They have to go to every house 6 days a week. They should, and will soon, be reduced to 5.

4) Just like newspapers information commerce is changing fast. In the last 15 months the Post Office has sustained a 35% decrease in first class mail volume. Part of it was due to the economy but part of it was due to people paying their bills on line and so on,.

[CurtEastPoint]

2. They need to raise the rates on BULK MAIL. That's the [no pun] bulk of what they do.

They get a break. I mean, really... Citi pays 11c to mail a bill and we pay 44c to send it back ??

[NoNothing]

3. Too bad the Post Office

Isn't as efficient as the Weather Service.

[AndyA]

5. They need to raise rates on all those junk flyers they deliver every week.

The ones that go straight into paper recycling without even so much as a glance.

They could focus on improving customer service, too. It doesn't matter how busy the post office is, the employees move SSSSSSSLLLLLLLLLLLOOOOOOOOOOWWWWWWWWWWWWWWW. No need to speed up, they get paid just the same anyway. Why rush when you can take your time?

And when break time comes, they go on break, even if it leaves just one window open and a line of customers waiting all the way out the door.

[nadinbrzezinski]

9. My hubby is a postal worker

and moving SLLLLOWWWWWW is NOT what they do.

By the way you do know BREAKS are FEDERAL MANDATES?

[AndyA]

16. Well, I guess your definition of SLOW and mine differ.

I used to work retail, and we had to really hustle during peak hours. That doesn't happen at any of the post offices I visit. They move at the same speed, one customer or a hundred in line, it doesn't matter.

And yes, I know about breaks.

I wasn't attacking your hubby but the post man in my office building delivers mail to my office for people who haven't been in that office for more than 6 years. I keep telling him, and he says it "takes too long to make sure mail is delivered only to current tenants." Now, the building I'm in has VERY LOW TURN OVER. In fact, one tenant has left in the last 2 years, and one tenant has moved in.

So, it's easier for us to keep writing MOVED on the mail and put it back in the mailbox...even then, sometimes we get it back AGAIN. The guy says he's just "doing his job." Yeah, right. :eyes:

The USPS is hardly a stellar example of good customer service. At least, not where I live.

[nadinbrzezinski]

18. Contact their supervisors

but I know that locally they are doing that much more, with far less people.

That is the reality.

[pscot]

6. The mailmen are to blame

If they would only work a little harder. :P

[NoNothing]

8. Newman!

[End Of The Road]

7. Small town service costs alot

I mean really small towns, and rural delivery. A building has to be rented, or land bought and a building built. Add to that employees and their benefits. Small town postal business can't cover it. Rural delivery uses alot of gas. But they can't consolidate, in many cases. If a town wants to incorporate, I believe the LAW requires that they have a post office.

Also keep in mind that the post office ships a ton of government stuff for free.

I love the USPS. It's the best bargain in town, even at 44 cents.

But I could live without Saturday delivery.

[dixiegrrrrl]

14. Our really small town PO was built in 1920 something, All paid for.

Even has a famous WPA painting on one wall.
It is next to the courthouse, lots of foot traffic, but few lines.
We have had the same carrier for 20 years.

Guess it is time to buy some more "forever stamps". I still have a ton of them I bought at 42 cents.
But hey, dollar cost averaging, right?

[nadinbrzezinski]

10. Here is the source of the problem

but it is uncertain whether sufficient liquidity will be in place for 2011 after the agency must make a $5.5 billion payment on Sept. 30 to prefund retiree health benefits.

This little time bomb was imposed on the USPS by the Republicans in 2006. You want their troubles to go down? INSIST this goes away... it was put in there to destroy the system and set the stage for privatization. You want this to stop? WRITE, CALL, your reps and point this out.

[dixiegrrrrl]

15. Excellent point, nadin. Thanks.

[cbdo2007]

12. Only good thing about USPS now is the flat rate shipping.

I can ship/receive 25 pounds of agates or geodes or petrified wood etc. from anywhere in the country for $11.

[LynneSin]

13. It's about time they stop Saturday delivery for non-businesses

I honestly don't need my mail delivered on a Saturday. The Post Office could save a ton of money by scaling back Saturday delivery. However Saturday would not be like Sunday mail business:

* Some Post Offices within the region would stay open to allow for regular postal services.
* Businesses could apply to receive Saturday mail for a small fee (it would be tiered price based on size of business and whether or not the business would pick up their own mail at the post office or have it delivered to them).
* During the 4 weeks before Xmas and perhaps even the Saturday before Mothers/Fathers Day there would be service.

[earth mom]

17. The USPS needs to cut Saturday Delivery. But the real truth is that TPTB want to privatize the USPS.

The corportate owned bastards in Washington DC will do anything and everything they can to destroy the USPS for their buddies at Fedex and UPS. :grr: