So How does the US Postal Service Lose $5.2 BILLION in the 3rd quarter

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WASHINGTON -- The U.S. Postal Service's net loss widened to $5.2 billion during the April through June period, and the cash-strapped agency warned on Thursday that without help from the U.S. Congress it will be unable to borrow money this fall.



The Postal Service, which relies on the sale of stamps and other products rather than taxpayer funding, has been struggling for years as Americans increasingly communicate online and as payments for future retiree health benefits and other obligations drain its cash.



A week after its first-ever default on a legally required payment to the federal government, officials called on Congress to pass postal legislation that would overhaul the mail agency's business model and offer some relief from its dire financial situation.



Lawmakers, who have said they are committed to helping the Postal Service become profitable, left last week for a month-long recess without reaching an agreement on postal legislation.



"Congress needs to act responsibly and get on with things so that we can get these things in our rearview mirror," Postmaster General Patrick Donahoe said on Thursday.



While postal officials insist it is unlikely Congress would allow the Postal Service's financial straits to get so dismal as to impede mail delivery, the agency has said it needs a significant restructuring to get back on sound footing.



The mail agency defaulted last week on a legally required $5.5 billion payment for future retiree health benefits, and its inspector general said the Postal Service could face a $100 million cash shortfall in mid-October.



Much of the net loss of $5.2 billion in the third quarter, compared to $3.1 billion for the same period in 2011, came from funds the agency must set aside for the retiree benefits payment. Even though the Postal Service defaulted and expects to skip a second payment due next month, it still must account for the payments in its financial statements.



Even without the payments, a postal official told the agency's Board of Governors on Thursday that the Postal Service lost about $1 billion on normal operations as Americans' ongoing shift to email strangled mail volume.



The USPS has made a number of cost-cutting moves, slashing operating hours at small post offices, offering buyouts to thousands of workers and launching a plan to consolidate operations at 140 processing sites by February.



Still, the service projects a net loss of about $15 billion for the fiscal year, which goes through September, said Stephen Masse, acting chief financial officer for the agency.



Postal officials said Congress needs to step in. They want authority to end Saturday mail, pull employees out of federal health plans and run their own instead, stop making the payments for future retiree benefits and make other changes.



The Senate passed a bill in April that would let the agency end Saturday mail and tap into a surplus in a federal retirement fund to offer retirement incentives to workers.



Leaders in the House of Representatives have said that bill does not go far enough, but they left last week for a recess until after the September 3 Labor Day holiday without bringing their version of the postal reform bill up for a vote.
"I can only hope that as members of Congress are back in their districts meeting with their constituents over the next month, they will hear these concerns about the future of the Postal Service and be persuaded that they cannot continue to postpone passing comprehensive postal reform legislation," said Senator Tom Carper, one of four authors of the Senate bill.


Shipping services and package delivery were a bright spot, growing 9 percent in revenue compared to the same quarter a year earlier. Email and online bill payments have hurt letter mail volumes, but the USPS's shipping business has benefited from online shopping and sites like eBay.com.



But mail volume fell 3.6 percent to 38.5 billion pieces, the agency said. Operating revenue during the quarter was $15.6 billion, a decrease of less than 1 percent from a year earlier.



Postal officials said the agency will face low cash levels in October, when a $1.4 billion payment for workers compensation comes due.



Masse said officials believe extra revenue from election-related mail could get the agency through the tight period. The cash crisis should improve during the holiday mailing season, typically the best time of year for the Postal Service.



He also said the agency would prioritize paying suppliers and employees over making obligations to the federal government, but he did not say what payments the USPS might skip or delay.



Last summer, the Postal Service temporarily halted payments into a retirement system that has surplus funds. The agency's inspector general has said the USPS could do the same this year.
 

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They refuse to halt Saturday deliveries and limit rural delivery....
 

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Mail should only come 4 or 5 times a week, and people should pay a minimal amount monthly for mail delivery.
 

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Email killed the postal service. I haven't bought or used a stamp in I don't know how long. Every bill I pay or communicate is done thru the computer. And there's a reason for the saying "going Postal" I do occasionally have to send a package thru the post office. Place is under staffed, overworked and not a pleasant face in the building. I would imagine, like any business, they are having logistic problems while trying to cut payroll and staff. The price of a stamp could go up to a dollar and it wouldn't matter much.
The times they are a changin.
 

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I imagine there's a real good reason for 6 day a week service. Personally, I imagine I could get by with once a week service if it came down to it. Kind of like people who live in places where they only get deliveries to their communities once a week or less. Seems a lot to me like overkill. Half the days, the mail I receive goes right into the garbage can.
Send my bills once a week, or less, any advertisement or flyers, once a week. A certified mail would be an exception and the added price should be paid by the sender if its that important. Put me in charge of the Postel service. I'll fix things right quick! :)
But seriously, there's much I'm not addressing or aware of, or the mail would have been scaled back already by now. Without my input.
 

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Bushey You make several good points about the dimise of the postal service.

Let me add a few more.

To many bosses and not enough craft employees.

Management jobs which are a total joke. For example UBBUM specialist.. a boss who goes through waste mail checking for errors (forwardable mail, accidently discarded 1st or 2nd class) a monkey could do this yet a boss must...Scan point manager... another joke.. a manger specifically assigned to sit on his ass and review scan point rings to make sure you are not slacking on the route.... ODIS examiners... these ass clowns come in and go through mail noting postmarks.. they say it is quality control I say it is horse shit... Route examiners.. these rats walk with carriers noting any slightest inconsistancy a carrier may have with postal formula. Office manager and floor supervisors. Granted in a larger office you made need both at the same time but in a smaller office only one (if that) is needed.

These fools are making at least 70k or so each plus bonuses. No wonder the place is sinking faster that the Titanic.

Another reason is saturation mail (flyers, coupon packs, Chinese menus), are so cheap to mail they lose money on them because often these mailings over burden the carrier on any given day thus causing the use of OT to deliver them.

I could write a book longer than War and Peace on the Postal Service and how they waste money. Sadly if I did it would go straight to the fiction section but trust me every word would be true. The truth is stranger than fiction
 

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Mail should only come 4 or 5 times a week, and people should pay a minimal amount monthly for mail delivery.

F that. 2 days a week for residential delivery. Tuesday and Fridays. No Saturday delivery.
Businesses can receive mail 5 or 6 days week at a premium or 3 days a week. M/w/f at no cost
 

Rx Dragon Puller
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How often do you guys check your mail , me I do about once a week all my bills are done online so no need to wait. Im trying to go paperless for all my bills as I can get statements for months prior anyhow. Registered mail and packages are the only reason I check my box. Oh and pizza place menus and deal/Flyers
 
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I have family in the USPS. When you hear the phrase "going postal", that is exactly what it is. No one is happy there and Management is a bunch of dumb assholes with big ego's...
 
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I agree on a 3 day delivery , should go.. Monday , Tuesday and Friday .
Somebody said Businesses can go premium... 100% agree
 

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The mailman on my street is pretty comical. Seems like a nice old guy buy the job is passing him by. My wife feels sorry for the guy. I get a kick out of him. When he works, the mail comes real late. 4-5 pm. If he takes a day off or a vacation, his replacement comes at like 9-10 am. He will make his deliveries and then an our or so later, will either pull up in his car or his truck and deliver some more to my house. It's like he got his mail all mixed up and he can't go back till its all delivered. Happen at least once a week or more. Even happens to his relief persons. Has to be because soneone screwed up when sorting the original deliveries. Wife will say...here comes the mailman again. LOL.

Mailman...what's the policy for walking on your grass? I think if I had that job and needed to get done on time or needed to be somewhere after work I'd be cutting across lawns all day. Haha. .
Dealing with those dogs must be a real bitch too. Mine scares the shit out of him every time he comes. It's like he forgets. Ha. How many times you been bit and how often do you have to use the mace or any other means of protection?
 

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YEP, Mailman is right on, but no surprise there. He's right in the middle of it. I know several people in all different positions that works for USPS.

Managament is a joke. My mom in law works in more of a rural area, and they rotate whos boss. Do you really think it matters, they get paid so much more on those days. And there are bosses for everything.

The Union is soooo powerful in the USPS. Heres an example: There Postmaster at the time was sorting the mail in the morning (something to that effect) that isn't in her job title. In return the Clerks were able to do their job faster. The clerks filed a grievance with the Union, and the Post Office had to pay each of the clerks all that time the "lost" because the postmaster did that. So essentially, postmaster was doing more work, for "free" to make the post office more efficient and got in trouble for it. This is just one of the MANY things that amazes me about the union.

They know its these overpriced employees that are killing the jobs, but it won't do anything about it. I tell you that story, and its my mom in law who is a clerk. She was thrilled about the money but agreed she didn't deserve. My mom in law has 0 real work skills. She cannot even use email. Yet she makes 50k+ a year working basically the front counter in a retail store with great benefits and nice retirement package. wow.

A friend of mine is working at the distribution center. One of the ones that USPS is closing. He is going to go where ever the USPS has a job for him because he admits he'll never get a job as making as much as he does for as little work as he does. He works nights and goes to work rather drunk every night, he claims most people do. He takes naps while there. He said its the easiest job there is.

I just don't know the USPS doesn't allow the market to dictate a little better the pay of these people.

I like the idea of paying a premium to have your mailed delivered 5 days a week, that makes sense. Sure it wouldn't be enough to hurt any business, but all those businesses in each city, thats a significant income
 

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Defying

What you mentioned is called "crossing crafts" and is a big no no in the PO. A clerk can not deliver mail and a letter carrier can not distribute mail to the routes. Crazy as it seems it is true. I can not sweep the floor as that is a custodial job. The exception is only if the situation becomes a hazard. A good example is that a bit ago one of the toilets was over flowing. A janitor had to be called in from another office to clean the mess.

As said above if one is caught crossing crafts he is repremanded and the people who should have been doing the work are paid as if they were doing the work. CRAZY

Bushay

As far as walking on lawns letter carriers are required to unless specifically told not to by the land owner. When being followed by supervision the supervisor harrasses you if you do not walk on the lawn.

Never been bit severe enough to need medical attetion. Been bit 3 times but just nuisence bites that did not break the skin.

The way management treats letter carriers today is sinfull... They have no regard for health, safety or conditions. All they know is get it done in 8 hrs. If you go over even a few minutes you are called onto the carpet. Call in sick....medical evidence ... emergency day off... forgetaboutit.

Management are a bunch of bullies who get their rocks off harrassing employees.. I have been there 25 years and have 2 bad knees to show for it. I am in the process of trying to get a medical retirement.. I just could not take the shit any more.... Take this, cut that ,scan scan scan be back in 8... The nonsence just got to be to much. The PO expects all carriers to perform like 20 year old sprinters... Guess what Einstein we are not 20 any more. Yet management harrasses, pushes and badgers veteran letter carriers to the brink of violence... Sometime I am sure that is what they want for a carrier to take a poke at them.

The PO is no longer a good job... in fact it blows. Money is ok but at what cost your health your sanity. I would rather be working at the local food store saying "paper or plastic?"
 

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why doesnt the PO go to 5 days a week and pay the carriers a salary, then they can take as long as they want or fly thru the route?
i know a bunch of carriers, this one guy thinks he has the greatest job in the world lol.
hey mailman question for u-- this dude thinks he makes awesome money, what would he get an hour being a carrier for about 8 yrs in?
 

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Problem with 3 day delivery is that you have probably over 100,000 full-time regular carriers that are guaranteed 40 hours a week per the union contract. It might take 10 hours instead of 8 to deliver every other day, but not 13 hours. Two days worth of mail in one day happens a lot, like on Mondays and after Holidays. The tuesday after a Monday holiday is really three days' worth of mail....since mail is processed and shipped 24/7 by the plants.

They can't cross crafts, so what do you do with all these FTR career carriers ?
 

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If they went to a five day a week delivery all T6 carriers (they cover for the regular on his day off) would no longer be needed. That is 18% of the workforce right there

Fly throught the route... Fuck No.. as they say "the more you do the more you are expected to do".. Never go back early as you will be sent out to help a carrier who may not be as quick In other words SUCKER

Pay top step (10 years in) is about $27.50 hr so 8 years in I would estimate $24 or so an hr. Decent coin but for all the shit the average letter carrier gets the value is certainly questionable.

With the ecomony being the way it is the PO knows it can exploit new hires. Lower wages little benifits and push them till they drop. These kids do not know that years ago it was a great job....Now the PO is the second coming of WalMart as far as caring for their employees
 

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