U.S. Postal Service asks Congress to lay off 120,000 workers…

According to documents obtained by CNNMoney, the United States Postal Service is asking Congress to remove collective bargaining restrictions so they can lay off 120,000 workers as well as replace existing government health care and retirement plans. The post office claims it needs to eliminate 220,000 positions, or more than 30% of its staff by 2015, but only 100,000 of those positions can be made through attrition. The other 120,000 must come from lay offs, according to the documents.

“To restore the Postal Service to financial viability, it is imperative that we have the ability to reduce our workforce rapidly,” the USPS wrote.

The USPS  also wants Congress to change legislation that requires postal workers to get federal health care and retirement benefits. The Postal Service would instead provide workers with it’s own benefit plans. Currently, postal employees participate in the Federal Employees Health Benefits program, the Civil Service Retirement System and the Federal Employees Retirement System. If given congressional approval, the Post Office would replace those with new plans that would save money, while offering comparable benefits to employees, according to the documents.

“The Postal Service is facing dire economic challenges that threaten its very existence and, therefore, threaten the livelihoods of our employees and the businesses and employees in the broader postal industry and overall economy” a document on workforce reduction said.

USPS mail volume declined 20% in the four year period through fiscal year 2010 resulting in net losses of over $20 billion.

The USPS warns that the organization “facing the equivalent of Chapter 11 bankruptcy.” and will be insolvent next month.

“As we continue to review our volume, revenue and financial projections for fiscal years 2012 through 2015, it has become apparent that our financial situation is becoming even more precarious.”

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6 Comments

  1. More evidence that the federal government should not be involved in commercial enterprise. The only way to truly fix the postal system is to privatize it.

  2. how about instead of laying off workers the guys on top making 100s of thousands of dollars take pay cuts?

  3. The top level of all government agencies always make more then the workers and always will. Why do you think the Democrats always call for teachers and police officers to loose their jobs to meet spending cuts instead of cutting the pay of the bureaucrats at the DOE or other Federal department of waste.

    When you have a federal agency involved in commerce it ALWAYS results in waste. Wait until you see what happens to healthcare once the federal government gets more control, look at the waste in Medicaid and Medicaire for a sneak peak. http://biggovernment.com/tag/medicaid-waste/

  4. um isn’t that true of all business? I don’t know of any business in which the CEO makes less than the workers, in fact CEOs now a days make at least 5 to 10 times what workers make. I don’t know any of any Gov official getting 10 million a year like the CEO of Hanes. As far as Democrats vs Republicans aren’t the Republicans the ones calling for all kinds of cuts and elimination of Gov jobs instead of asking for pay cuts? How about our politicians take a pay cut? I don’t see anyone on either side putting forth that proposal.

    You act as if the private healthcare is so much better but let’s be real healthcare costs are spiraling out of control and have been for sometime now, regardless if Obamacare was instituted or not. Don’t get me wrong I’m not cheerleading Gov at all but the private sector screws people just as much they’re just more efficient at it.

  5. your right, CEOs make more then the employees. The difference is that CEOs have to earn that money and gov bureaucrats only have to stick around longer then others.

    Also, if you are unhappy with the way a business is acting you can choose to not do business with them. We have no choice when it comes to gov agencies.

    The private sector does everything better when gov is not involved. The cost of healthcare has gotten worst the more gov gets involved. There are doctors offices now that take no insurance or medicaid/medicare so they can avoid gov regulations and I pay less for my healthcare services.

    I can name dozens of industries that thrived without gov intervention, most suffered once gov saw a chance to make some money off of them. No one can point to any commercial enterprise the gov has gotten involved with and made it better.

    I also agree with you that it is both political parties in Washington that have screwed things up, that is why we need to work together to get politics out of our economy as much as possible.

    Thank you for your responses and this great conversation we are having. It is always nice to find people willing to discuss an issue with out name calling.

  6. I know what you mean. It would be incredibly immature of me to call you names during a political discussion but it seems like our political climate is being poisoned more and more each day and unfortunately our so called leaders are taking advantage of it.

    As far as deregulation goes I fear too much deregulation as the CEOs of banks and corporations now a days are not the same as the ones from years ago. They used to believe that good business and service to customers was the right business model while today profits takes precedent over all else.
    It doesn’t seem as if anyone has the interests of the general public in mind anymore, Gov or private sector..We desperately need new leadership in both areas..
    and thank you for taking time out to comment on these important issues.


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